Frame

Grid Monitor AI
02/26/2025

Meeting called to order by the Public Utility Commission of Texas for considerations on 02/25/2025.
Antitrust admonition and security map included in the posted meeting materials.
Special meeting called to address issues related to potential Reliability Must Run (RMR) agreements concerning CPS Energy Bronning Units 1 and 2.
Discussion on a potential alternative solution involving Lifecycle Power's bubble generation.
ERCOT staff has been updating the board on these issues for several cycles.
The meeting aims to make an informed decision on reliability issues impacting the San Antonio area.
Representatives from CenterPoint Energy, CPS Energy, and Lifecycle Power are present to provide comments and answer questions.

Pablo Vegas reported on the grid's performance during Winter Storm Kingston, noting the grid remained reliable and set a new winter peak record over 80,000 megawatts.
The firm fuel supply service played a crucial role in maintaining gas continuity at gas plants storing fuel on-site.
Comparison of recent winter storms emphasized the importance of wind availability and consistent thermal fleet performance.
Solar availability is typically low during winter peaks which occur early in the morning.
Battery availability is improving, doubling their effectiveness each year since 2021.
Winter Storm Kingston was the fourth coldest and longest duration event in recent years.
Coordination with TDEM, TERC, and TCEQ ensured reliability and exemption from emission limits as needed.
3,200 weatherization inspections have been completed to exceed regulatory minimums.
Switchable generation provided over 4,000 megawatts of capacity exchange with neighboring grids like SPP and MISO.
Discussion on the impact of measures post-Winter Storm Uri, focusing on reliability improvements and metric enhancement due to weatherization and firm fuel capacity.

ERCOT staff recommended Lifecycle Power's mobile generation solution over RMR agreements with CPS Energy's Braunig Units 1 and 2.
CenterPoint Energy has offered 15 large generators to assist in the San Antonio area for up to two years without compensation.
Lifecycle Power and CenterPoint Energy presented their proposal as a cost-effective reliability solution drawing on lessons from Winter Storm Uri.
ERCOT's RFP in July 2024 did not yield any permissible must-run alternatives (MRAs) for Braunig units.
ERCOT signed a contract for Braunig Unit 3 RMR service scheduled for March inspection, but deferred decision on Units 1 and 2 to explore the Lifecycle solution.
Lifecycle Power's mobile units offer quick start capabilities compared to Braunig Units' long lead times.
ERCOT anticipates $54 million in lifecycle costs compared to $59 million for Braunig 1 and 2, emphasizing cost-control and reliability with Lifecycle units.
Air emissions permitting remains a challenge for Lifecycle units, requiring ERCOT's discussions with TCEQ and potential federal engagement.
ERCOT believes that Lifecycle's solution poses less operational and cost risk compared to Braunig 1 and 2 due to the advanced age of Braunig units.
ERCOT highlighted the need for PUC exemptions to expedite lifecycle units' grid integration due to the IROL challenge.
The board authorized ERCOT to finalize an agreement with Lifecycle, with CPS Energy's Braunig Units 1 and 2 as backup if necessary.

Discussion led by Kristi Hobbs on accelerating the San Antonio South Reliability two transmission project.
Signing of RMR agreement initiated a 90-day timeline to complete a formal exit strategy and report.
Exploration of feasible options for exiting the RMR agreement efficiently and cost-effectively for Texas consumers.
Current efforts focus on accelerating a previously endorsed project to improve transmission systems.
Proposal includes enhancing current circuits while maintaining line capabilities and adding a double circuit.
Potential acceleration could advance project completion from May 2029 to the end of 2026.
Acceleration would aid in exiting RMR agreements and minimizing risk for the South Texas GDC or IROL.
Identification of four necessary projects for system improvements, with three endorsed by the Board.
Emphasis on continuous review based on emerging generation and load data.
No Board action required now, but support for project acceleration will be communicated to involved TSPs.
ERCOT staff recommends project acceleration. The Board's previous approval facilitates the process.
Concerns raised about approving acceleration without detailed cost information.
Clarification that Board does not need to re-endorse despite potential cost increases.

The functions and jurisdiction of the Reliability and Markets Committee will be moved back to the full Board, as they are central to ERCOT's mission.
All Board members will be part of the Reliability and Markets Committee at the full Board level.
Finance and Audit Committee: Carlos Aguilar will serve as Chair, with Ben Barkley, Sig Cornelius, and Julie England as members.
Human Resources and Governance Committee: Chaired by Peggy Heeg, with Linda Capuano, Sig Cornelius, and an additional Board member as members.
Technology and Security Committee: Chaired by John Swainson, with Carlos Aguilar, Julie England, and Alex Hernandez as members.
There were no questions or additional commentary about the Board assignments.
No further business was discussed at this special meeting.