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Meeting Summary - 12/12/2024 - Open Meeting

Grid Monitor AI
12/13/2024

<img src="/storage/docs/2024/12/20241213OMhero.png" width="869" height="426" /> <h2><a href="/sharing/?token=8295308f-fc41-4f84-93b9-ac3d9895489b">▶️</a> 0 - Chairman Gleeson calls meeting to order</h2> <h3><a href="/sharing/?token=ce7d5206-3eeb-47aa-84a0-1106e2b1546d">▶️</a> 0.1 - Commission Counsel Shelah Cisneros lays out Consent Agenda</h3> <ul> <li style="font-weight: 400;" aria-level="1">Items 3, 5, 7, 10, 12 through 15, 20, 21, and 23 through 26 were placed on the consent agenda.</li> <li style="font-weight: 400;" aria-level="1">Chairman Gleeson recused from items 10 and 11.</li> <li style="font-weight: 400;" aria-level="1">Commissioner Hjaltman recused from items 2, 11, and 12.</li> <li style="font-weight: 400;" aria-level="1">Consent agenda approved unanimously.</li> </ul> <h2><a href="/sharing/?token=10c90ed9-1502-46da-a18d-8375515171ee">▶️</a> 1 - Public comment for matters that are under the Commission’s jurisdiction, but not specifically posted on this agenda</h2> <ul> <li style="font-weight: 400;" aria-level="1">Speaker: Joe Jimenez</li> <ul> <li style="font-weight: 400;" aria-level="2">Former volunteer board president of Windmare Oaks Water Supply Corporation (2019-2023).</li> <li style="font-weight: 400;" aria-level="2">Discussed financial and operational achievements of the previous board, including securing $650,000 in low-interest loans and successful conservation projects.</li> <li style="font-weight: 400;" aria-level="2">Highlighted prior board's legal victories, including a $678,000 judgment against a company withholding payments.</li> </ul> <li style="font-weight: 400;" aria-level="1">Speaker: Jeff Walker</li> <ul> <li style="font-weight: 400;" aria-level="2">Current board member at Windermere Oaks.</li> <li style="font-weight: 400;" aria-level="2">Highlighted financial issues due to inadequate contributions from members and unsustainable operations.</li> <li style="font-weight: 400;" aria-level="2">Mentioned temporary team is working on solutions, with a follow-up expected within 30-60 days.</li> </ul> </ul> <h2><a href="/sharing/?token=fff52c2e-8973-4489-b7a0-aeca72bd54e7">▶️</a> 2 - Docket No. 54617; SOAH Docket No. 473-24-13127.WS – Application of Texas Water Utilities, LP and Southern Horizons Development, Inc. for Sale, Transfer, or Merger of Facilities and Certificate Rights in Liberty and Montgomery Counties</h2> <ul> <li style="font-weight: 400;" aria-level="1">SOAH ALJ has recommended a change to the order, and oral argument was granted.</li> <li style="font-weight: 400;" aria-level="1">Texas Water Utilities has the burden of proof in this case.</li> <li style="font-weight: 400;" aria-level="1">Discussion on the PFD's analysis under the public interest test, emphasizing capital improvements worth $1 million identified by TWU.</li> <li style="font-weight: 400;" aria-level="1">TWU argues against the PFD's retroactive application of 16 TAC Section 24.240 to their case, stating this approach raises the burden of proof unfairly.</li> <li style="font-weight: 400;" aria-level="1">Concerns about the binary choice between TWU's proposed rates and Southern Horizon's existing rates and its implications on subsidies and rate fairness.</li> <li style="font-weight: 400;" aria-level="1">Intervener Anna Miller expressed concerns about potential overcharges and unfair rate hikes proposed by TWU.</li> <li style="font-weight: 400;" aria-level="1">The Office of Public Utility Counsel supports the PFD and ALJ’s recommendations, arguing the request by TWU would lead to significant rate shock.</li> <li style="font-weight: 400;" aria-level="1">Commission Staff supports approval of the transaction and offers a phased-in rate schedule as an alternative to TWU’s proposed rates.</li> <li style="font-weight: 400;" aria-level="1">Staff initially supported TWU's rates based on presumed necessary capital improvements but shifted stance after learning improvements were not required to resolve TCEQ violations.</li> <li style="font-weight: 400;" aria-level="1">Discussion on potential process of keeping existing rates with an option to use a system improvement charge when actual capital needs are assessed.</li> <li style="font-weight: 400;" aria-level="1">Decision to delay the resolution until a future meeting to ensure the decision is correct and balanced.</li> </ul> <h2><a href="/sharing/?token=d9b5d5f9-74c3-4684-84b9-ac76feedb360">▶️</a> 4 - Docket No. 56350 – Application of Quadvest, LP to Amend Its Certificates of Convenience and Necessity in Harris County</h2> <ul> <li style="font-weight: 400;" aria-level="1">Chairman Gleeson filed a <a href="https://puct-filings.s3.us-west-2.amazonaws.com/56350/39/56350_39_1448459.PDF">memo</a> in this docket.</li> <li style="font-weight: 400;" aria-level="1">There is an appeal of Order No. 8 filed by Quadvest.</li> <li style="font-weight: 400;" aria-level="1">The issue may have broad implications for the water industry.</li> <li style="font-weight: 400;" aria-level="1">The council members believe additional time is needed to thoroughly review the implications.</li> <li style="font-weight: 400;" aria-level="1">Council members agree on the necessity of additional briefing and deliberation time.</li> <li style="font-weight: 400;" aria-level="1">A motion to delay the decision was approved unanimously.</li> </ul> <h2><a href="/sharing/?token=23f5aa66-6334-413f-8bb4-a369a1243200">▶️</a> 6 - Docket No. 56855 – Application of Manvel Terrace Utilities, Inc. for a Class D Rate Adjustment</h2> <ul> <li style="font-weight: 400;" aria-level="1">Review of appeal Order No. 4 filed by Commission Staff.</li> <li style="font-weight: 400;" aria-level="1">Recommendation to delay and extend time on the appeal.</li> <li style="font-weight: 400;" aria-level="1">Motion entertained and passed to extend time on the appeal.</li> </ul> <h2><a href="/sharing/?token=56631983-8afe-4a9e-8b5f-43b024028c83">▶️</a> 8 - Docket No. 57216 – Request for an Emergency Order to Compel SRC Water Supply Inc. to Provide Continuous and Adequate Water Service</h2> <ul> <li style="font-weight: 400;" aria-level="1">An emergency order by the Executive Director was presented and is up for a Commission hearing decision to affirm, modify, or set aside.</li> <li style="font-weight: 400;" aria-level="1">The meeting was recessed to a formal hearing presided over by the ALJ to assess the order.</li> <li style="font-weight: 400;" aria-level="1">ALJ Christina Denmark clarified the hearing's purpose: to affirm, modify, or set aside the emergency order issued.</li> <li style="font-weight: 400;" aria-level="1">Commission Staff admitted several exhibits into evidence, including witness lists and affidavits related to notifications.</li> <li style="font-weight: 400;" aria-level="1">Rolling Hills Public Water System, operated by SRC, experienced significant water supply issues due to a well pump electrical failure.</li> <li style="font-weight: 400;" aria-level="1">SRC's owners reportedly showed no intention of repairing the necessary infrastructure, prompting community intervention for repairs.</li> <li style="font-weight: 400;" aria-level="1">Staff recommended affirming the emergency order to compel SRC to fulfill its service obligations.</li> <li style="font-weight: 400;" aria-level="1">Discussions touched upon whether appointing a temporary manager was appropriate; complexities due to SRC's multiple systems were noted.</li> <li style="font-weight: 400;" aria-level="1">Efforts are underway to identify potential candidates for temporary management if needed, given the challenges with SRC's systems.</li> <li style="font-weight: 400;" aria-level="1">The Commission decided to affirm the emergency order and directed the drafting of an official order.</li> </ul> <h2><a href="/sharing/?token=cf5bf326-69d1-4f33-8a57-82013af8c695">▶️</a> 9 - Docket No. 48205; SOAH Docket No. 473-18-3823 – Complaints of Multiple Tenants Against Palm Shadows Resort, LLC, Palm shadows MH & RV Park, and Affordable Housing Communities, LLC Regarding Electric and Water Service Billings</h2> <ul> <li style="font-weight: 400;" aria-level="1">A Proposal for Decision had previously been issued for this docket.</li> <li style="font-weight: 400;" aria-level="1">The Commission addressed this docket in several open meetings, with the last discussion on September 12th.</li> <li style="font-weight: 400;" aria-level="1">The Commission decided to remand the docket to ascertain the complainant's position on proceeding.</li> <li style="font-weight: 400;" aria-level="1">The complainant later submitted a response to withdraw the complaint.</li> <li style="font-weight: 400;" aria-level="1">A withdrawal request requires a determination of good cause after a PFD has been issued.</li> <li style="font-weight: 400;" aria-level="1">There was agreement to find good cause to allow the withdrawal of the complaint.</li> <li style="font-weight: 400;" aria-level="1">A motion to approve the withdrawal was made, seconded, and passed.</li> </ul> <h2><a href="/sharing/?token=3dbf2680-af40-4fab-a938-98b46b8a161e">▶️</a> 11 - Docket No. 55959 – Joint Petition of Texas Energy Association for Marketers and Alliance for Retail Markets for Designation Under 16 TAC § 25.475(b)(5)</h2> <ul> <li style="font-weight: 400;" aria-level="1">Chairman is recused from this item.</li> <li style="font-weight: 400;" aria-level="1">Commissioner Cobos needs more time to review and resolve the matter.</li> <li style="font-weight: 400;" aria-level="1">The resolution is postponed to the next open meeting.</li> </ul> <h2><a href="/sharing/?token=9572bd9c-e982-40a3-86c0-56b5873a89dd">▶️</a> 16 - Docket No. 56659 – Complaint of Sara Black Against Mobile Loaves & Fishes, Inc. and City of Austin dba Austin Energy</h2> <ul> <li style="font-weight: 400;" aria-level="1">An appeal of Order No. 3 was filed by Mobile Loaves and Fishes.</li> <li style="font-weight: 400;" aria-level="1">The council expressed sympathy towards Mobile Loaves and Fishes' position but ultimately agreed with the ALJ decision to deny the appeal.</li> <li style="font-weight: 400;" aria-level="1">Discussion noted the challenge of applying laws to mobile home and RV parks, recognizing their temporary and potentially long-term nature.</li> <li style="font-weight: 400;" aria-level="1">A motion was made and seconded to deny the appeal of order number three, which passed unanimously.</li> </ul> <h2><a href="/sharing/?token=275c30aa-1dbb-492e-a9e7-addc4083ff92">▶️</a> 17 - Docket No. 56690; SOAH Docket No. 473-24-19708 – Application of CenterPoint Energy Houston Electric, LLC to Adjust Its Energy Efficiency Cost Recovery Factor</h2> <ul> <li style="font-weight: 400;" aria-level="1">A proposed order was presented for consideration with no corrections or exceptions filed.</li> <li style="font-weight: 400;" aria-level="1">Chairman Gleeson filed a <a href="https://puct-filings.s3.us-west-2.amazonaws.com/56690/43/56690_43_1448458.PDF">memo</a> addressing this docket with a minor correction of $210 due to discrepancies in figures.</li> <li style="font-weight: 400;" aria-level="1">The importance of verifying the mathematical accuracy of the figures was emphasized.</li> <li style="font-weight: 400;" aria-level="1">There was general agreement and support for the clarifications made in Chairman Gleeson's memo.</li> <li style="font-weight: 400;" aria-level="1">A motion to approve the proposed order, as revised per the memo, carried unanimously with no opposition.</li> </ul> <h2><a href="/sharing/?token=af99809a-b41c-4ebe-a717-13d36a888398">▶️</a> 18 - Docket No. 56735; SOAH Docket No. 473-24-20657 – Application of Entergy Texas, Inc. for Approval of a System Resiliency Plan</h2> <ul> <li style="font-weight: 400;" aria-level="1">Application by Entergy Texas for approval of a system resiliency plan was discussed.</li> <li style="font-weight: 400;" aria-level="1">A proposed order addresses an unopposed agreement with signatories including Entergy Texas, OPUC, TIEC, Walmart, and Commission Staff.</li> <li style="font-weight: 400;" aria-level="1">Cities do not join the agreement but do not oppose it.</li> <li style="font-weight: 400;" aria-level="1">No corrections or exceptions to the proposed order were filed.</li> <li style="font-weight: 400;" aria-level="1">Chairman Gleason filed a <a href="https://puct-filings.s3.us-west-2.amazonaws.com/56735/123/56735_123_1448456.PDF">memo</a> in the docket.</li> </ul> <h3><a href="/sharing/?token=e89cb865-b512-4660-a3e2-7a4031fae36a">▶️</a>Eli Viamontes - CEO of Entergy Texas - Overview of Texas Future Ready Resiliency Plan</h3> <ul> <li style="font-weight: 400;" aria-level="1">The plan aims to provide customers with safe, reliable, affordable, and sustainable service by enhancing grid resiliency.</li> <li style="font-weight: 400;" aria-level="1">Entergy Texas operates in a storm-prone area, emphasizing the need for storm preparation and response.</li> <li style="font-weight: 400;" aria-level="1">Extreme weather events in 2020 and 2021 highlighted the necessity for a more resilient grid.</li> <li style="font-weight: 400;" aria-level="1">The plan includes significant investments in transmission and distribution infrastructure hardening and wildfire vegetation management.</li> <li style="font-weight: 400;" aria-level="1">Phase One involves approximately $335 million in investments over three years to reduce disruption and restoration costs.</li> <li style="font-weight: 400;" aria-level="1">The plan seeks to reduce customer minutes interrupted by 4.5 billion over 50 years and cut restoration costs by $129 million.</li> <li style="font-weight: 400;" aria-level="1">Entergy Texas is exploring state and federal grants, including applying for the U.S. Department of Energy’s GRIP program.</li> </ul> <h3><a href="/sharing/?token=7c251be8-13d6-45fa-9849-b27e86e0e8ec">▶️</a>Sean Meredith - VP of Project Delivery, Entergy Texas - Plans for 3 year program, 56735</h3> <ul> <li style="font-weight: 400;" aria-level="1">Sean Meredith, VP of Project Delivery, presented Entergy Texas' Resilience Plan aimed at investing approximately $335 million over the next three years to enhance resilience against major events like hurricanes and wind storms.</li> <li style="font-weight: 400;" aria-level="1">The plan involves a detailed analysis by 1898 & Co. to optimize a portfolio that aims to reduce restoration costs and minimize customer minutes interrupted.</li> <li style="font-weight: 400;" aria-level="1">Key measures include transition from legacy transmission poles to monopole designs for enhanced wind resistance, substation control house strengthening using reinforced concrete, and distribution hardening through vertical framing and composite poles.</li> <li style="font-weight: 400;" aria-level="1">Strategic underground transitions are planned for high-risk areas to minimize exposure, although more costly, offer a positive cost-benefit ratio.</li> <li style="font-weight: 400;" aria-level="1">Vegetation management for wildfire prevention with targeted hazard tree removal, guided by Texas A&M's Wildlife Management Portal, to prevent ignition risks.</li> <li style="font-weight: 400;" aria-level="1">Success in delivering large capital portfolios with an execution model and commitment to annual updates and after-action reports.</li> <li style="font-weight: 400;" aria-level="1">Entergy Texas is slightly exceeding established standards like NESC rules for load-bearing guidelines based on best practices and prior experience.</li> <li style="font-weight: 400;" aria-level="1">Recognition from commissioners on the effectiveness of the resilience plan, emphasizing the importance of customer minutes interrupted as a key metric.</li> </ul> <h3><a href="/sharing/?token=d9a350cc-ac0e-4c02-87c9-823cdee2a09b">▶️</a>Sean Meredith - Commissioner Jackson's questions on NESC rules, QA/QC program & GRIP funding, 56735</h3> <ul> <li style="font-weight: 400;" aria-level="1">The National Electric Safety Code (NESC) sets a minimum safety standard, advising utilities to exceed these standards in anticipation of extreme weather events.</li> <li style="font-weight: 400;" aria-level="1">Entergy has assessed wind patterns across their service territories to establish wind zones that exceed NESC standards to ensure safety and reliability.</li> <li style="font-weight: 400;" aria-level="1">Entergy offered a measure involving pre-construction review and field audits by qualified engineers, which they already practice through an internal QA/QC program.</li> <li style="font-weight: 400;" aria-level="1">They are negotiating with the Department of Energy for GRIP funding for the Port Arthur project, with the aim to finalize and start work soon.</li> <li style="font-weight: 400;" aria-level="1">The proposed GRIP funding involves approximately $54 million federal funds, with Entergy's cost share at $55 million, impacting project resiliency.</li> <li style="font-weight: 400;" aria-level="1">Entergy seeks clarification on a $27 million resiliency component, which is under negotiation with the Department of Energy.</li> <li style="font-weight: 400;" aria-level="1">Entergy has plans contingent on receiving Texas Energy Fund funding, seeking conditional approval for these projects, indicating partial reliance on external funds.</li> </ul> <h3><a href="/sharing/?token=dacfaeea-fee0-4c24-a0d0-be446a987947">▶️</a>George Hoyt - Entergy Assistant General Counsel - Conditional Project Approvals, 56735</h3> <ul> <li style="font-weight: 400;" aria-level="1">George Hoyt discussed the need for conditional project approvals linked to the extent of received funding.</li> <li style="font-weight: 400;" aria-level="1">The aim is to avoid having to cut projects from the plan if they are not funded by grant money.</li> <li style="font-weight: 400;" aria-level="1">There is a concern about how conditional approval could affect eligibility for TEF funding.</li> <li style="font-weight: 400;" aria-level="1">Entergy plans to pursue TEF funding and follow the standard application process.</li> <li style="font-weight: 400;" aria-level="1">The intent of the conditional approval is to streamline the process and avoid additional procedural hurdles if funds don't align.</li> </ul> <h3><a href="/sharing/?token=f6c46d65-a5b0-4da7-8fe9-9983a29690c6">▶️</a>Barksdale English - Deputy Executive Director - TEF Funding</h3> <ul> <li style="font-weight: 400;" aria-level="1">Barksdale English stated that the TEF rule is currently being drafted and will be considered in January.</li> <li style="font-weight: 400;" aria-level="1">There is a challenge in approving a resiliency plan reliant on TEF funding without finalized program requirements.</li> <li style="font-weight: 400;" aria-level="1">There is statutory guidance, but detailed rules are still to be developed.</li> <li style="font-weight: 400;" aria-level="1">Conditional project approval is complex due to uncertainty in eventual TEF fund award eligibility.</li> <li style="font-weight: 400;" aria-level="1">The overall objective is to achieve a comprehensive plan that supports public interest and ensures eligibility for TEF funding.</li> <li style="font-weight: 400;" aria-level="1">The comprehensive plan presented is part of a larger multi-year plan, representing a significant portion of investment and benefits.</li> <li style="font-weight: 400;" aria-level="1">Attendees stress the importance of resolving eligibility issues before final approval.</li> </ul> <h3><a href="/sharing/?token=72d89f42-b258-465d-bc58-2b1faeb8f098">▶️</a>Commissioner Cobos’ Observations on Entergy's Plan, 56735</h3> <ul> <li style="font-weight: 400;" aria-level="1">Commended strong collaboration with relevant parties including PUC staff, public interest representatives, OPUC, and cities involved, which led to an unopposed settlement agreement.</li> <li style="font-weight: 400;" aria-level="1">Appreciated the use of analytics supporting the plan 1898 and efforts to obtain federal and state funding, specifically GRIP and TEF funding, to offset ratepayer impacts.</li> <li style="font-weight: 400;" aria-level="1">Raised concern about the plan's reliance on grant funding, with $198 million of a $335 million request contingent on it. Asked if the plan can proceed without full grant funding.</li> <li style="font-weight: 400;" aria-level="1">Discussed the necessity and benefits of pursuing proposed projects based on benefit-cost ratios, indicating they are essential and timely.</li> <li style="font-weight: 400;" aria-level="1">Highlighted the importance of accelerating resiliency investments to protect the grid and customers from extreme weather, while balancing affordability.</li> <li style="font-weight: 400;" aria-level="1">Emphasized the need for transmission hardening especially after Hurricane Beryl, and showed support for such efforts.</li> <li style="font-weight: 400;" aria-level="1">Inquired about wildfire metrics focusing on vegetation management and the ongoing metrics and analysis used in such efforts.</li> </ul> <h3><a href="/sharing/?token=b5695936-305c-403b-84e8-5a17c5287bcf">▶️</a>Sean Meredith - Wildfire Mitigation Plan & Targeting Distribution Feeders, 56735</h3> <ul> <li style="font-weight: 400;" aria-level="1">The team utilizes the Texas A&M Forest Division's Wildfire Mitigation Portal for assessing wildfire risks.</li> <li style="font-weight: 400;" aria-level="1">Overlays map data to target circuits most at risk of wildfires, focusing on vegetation management to prevent ignition.</li> <li style="font-weight: 400;" aria-level="1">An ongoing effort to monitor and update the wildfire risk management based on weather conditions.</li> <li style="font-weight: 400;" aria-level="1">Hardening plan includes modeling 170 years of weather data to target distribution feeders vulnerable to tropical storms and hurricanes.</li> <li style="font-weight: 400;" aria-level="1">Prioritizes feeder targeting based on failure probability, storm impact, benefit-cost analysis, and customer importance.</li> <li style="font-weight: 400;" aria-level="1">Resiliency investments may reduce operational costs, such as reduced need for a self-insurance fund, and should be considered in base rate cases.</li> <li style="font-weight: 400;" aria-level="1">The plan is detailed, showing how investments impact customer service minutes, restoration, and storm costs.</li> <li style="font-weight: 400;" aria-level="1">Commissioners discussed the importance of showing benefits and cost offsets to customers and ensuring transparency in investment outcomes.</li> <li style="font-weight: 400;" aria-level="1">Emphasis on the importance of evaluating and measuring the success of resiliency investments.</li> <li style="font-weight: 400;" aria-level="1">Discussion on incorporating feedback from the upcoming open meeting and how a good project could be approved as part of the SRP, affecting rate structures.</li> <li style="font-weight: 400;" aria-level="1">Questions raised about the cost-benefit analysis model, which focused on higher average scenarios rather than all modeled scenarios.</li> </ul> <h3><a href="/sharing/?token=2e115215-f99f-47f5-85f2-5cab9a22a45e">▶️</a>Sean Meredith - Chairman's question on Cost Benefit Plan</h3> <ul> <li style="font-weight: 400;" aria-level="1">Discussion about what is referred to as the 'storm scenario', including the average, high, and extreme storm conditions.</li> <li style="font-weight: 400;" aria-level="1">The P50 or average is a holistic average over 170 years, noting increased frequency and intensity of storms since 2017.</li> <li style="font-weight: 400;" aria-level="1">Selection of a higher, more extreme storm scenario for future planning due to worsening conditions.</li> <li style="font-weight: 400;" aria-level="1">Impact of storm scenarios on cost-benefit ratios, with more extreme scenarios increasing benefits exponentially.</li> <li style="font-weight: 400;" aria-level="1">Concern about good cause exceptions and the flexibility provided in previous proceedings.</li> <li style="font-weight: 400;" aria-level="1">Importance of operational flexibility in implementing projects, with need for adjustments as design progresses.</li> <li style="font-weight: 400;" aria-level="1">Recognition of independent variables affecting project implementation, such as unexpected vegetation growth.</li> <li style="font-weight: 400;" aria-level="1">Proposal to delay approval to ensure no unintended barriers in project execution.</li> <li style="font-weight: 400;" aria-level="1">Request to revisit some issues in a future open meeting due to substantial funding and work involved.</li> </ul> <h2><a href="/sharing/?token=a6efb081-40c0-4bf6-a51e-6ce73d30a7bd">▶️</a> 19 - Docket No. 56851 – Application of El Paso Electric Company for Waiver of Certain Rate Filing Package Schedules in Its Next Rate Application</h2> <ul> <li style="font-weight: 400;" aria-level="1">A proposed order was presented with no corrections or exceptions filed.</li> <li style="font-weight: 400;" aria-level="1">Commission Counsel memo suggested changes to the order.</li> <li style="font-weight: 400;" aria-level="1">It was noted that Schedule S waivers are frequently granted, raising questions about the necessity of the requirement.</li> <li style="font-weight: 400;" aria-level="1">There was consensus that while the current waiver is acceptable, future waiver requests should be discouraged.</li> <li style="font-weight: 400;" aria-level="1">It was noted that in certain cases a waiver might be adequate every two to three rate applications, but this is the th since they last filed.</li> <li style="font-weight: 400;" aria-level="1">Discussion included whether the requirement for Schedule S is necessary for certain utilities in a vertically integrated market.</li> <li style="font-weight: 400;" aria-level="1">A motion to approve the proposed order with the suggested changes was made and seconded, and the motion prevailed.</li> </ul> <h2>22, 27-30</h2> <ul> <li style="font-weight: 400;" aria-level="1">Not Discussed</li> </ul> <h2><a href="/sharing/?token=f58090cf-147e-408b-8ea1-2ae77b51037b">▶️</a> 31 - Project No. 55845 – Review of Ancillary Services in the ERCOT Market</h2> <ul> <li style="font-weight: 400;" aria-level="1">Two main sticking points were identified:</li> <ol> <li style="font-weight: 400;" aria-level="2">Appropriate criterion for AS procurement quantities</li> <li style="font-weight: 400;" aria-level="2">Reliability of Ancillary Services (DRRS)</li> </ol> <li style="font-weight: 400;" aria-level="1">Topic 1: Sufficiency of current ancillary services - Staff recommends they meet ERCOT's NERC performance standards.</li> <li style="font-weight: 400;" aria-level="1">Topic 2: Providing adequate incentives for dispatchable generation - Staff suggests a process in the reliability standard rule for resource adequacy.</li> <li style="font-weight: 400;" aria-level="1">Topic 3: Appropriate criterion for AS procurement quantities - Staff recommends developing capabilities to model trade-offs between AS quantities and reliability.</li> <li style="font-weight: 400;" aria-level="1">Discussion on whether to avoid 'load shed' or 'watch' situations.</li> <li style="font-weight: 400;" aria-level="1">Staff's current recommendation is to maintain around 6,500 megawatts of AS.</li> <li style="font-weight: 400;" aria-level="1">Debate over the correlation of renewables to ancillary service needs; current data shows no strong correlation.</li> <li style="font-weight: 400;" aria-level="1">Topic 4: Dynamic determination of AS quantities - Staff supports setting quantities more frequently than yearly.</li> <li style="font-weight: 400;" aria-level="1">Topic 5: Probabilistic modeling - ERCOT should shift to this approach from a historical statistical one.</li> <li style="font-weight: 400;" aria-level="1">Topic 6: DRRS - Should be designed to mitigate operational risks.</li> <li style="font-weight: 400;" aria-level="1">Debate on inclusion of batteries in DRRS and their role in resource adequacy.</li> <li style="font-weight: 400;" aria-level="1">Discussion on possible need for changes in existing policy frameworks due to evolving nature of the energy market.</li> <li style="font-weight: 400;" aria-level="1">Topic 7: Catch all topics include improvements in market efficiency, pricing as type separated, and duration requirements for ECRS and non-spin recommendations.</li> </ul> <h3><a href="/sharing/?token=2e115215-f99f-47f5-85f2-5cab9a22a45e">▶️</a>Commissioners thoughts on ancillary services review, 55845</h3> <ul> <li style="font-weight: 400;" aria-level="1">The staff's chart on page six sparked interest and discussion around system load shed avoidance following the 2021 operations.</li> <li style="font-weight: 400;" aria-level="1">Changes in the system due to weatherization, firm fuel, winter resiliency measures, and introduction of new resources were acknowledged.</li> <li style="font-weight: 400;" aria-level="1">Importance stressed on avoiding conservation, evaluating whether current conservative metrics like zero watch need revision.</li> <li style="font-weight: 400;" aria-level="1">Inquiry about times ERCOT entered Emergency Energy Alert (EEA) levels; importance of EEA1, EEA2 data highlighted.</li> <li style="font-weight: 400;" aria-level="1">Acknowledgment of ongoing changes: development of new tools like RTC+B, changes in resource mix, and aging dispatchable fleet.</li> <li style="font-weight: 400;" aria-level="1">Holding current criteria like no watches and 6,500 megawatts is seen as sensible, but reevaluation is needed as new tools are available.</li> <li style="font-weight: 400;" aria-level="1">Market signals on growing renewables impact on ancillary services need definition; importance of visual data projected for the future noted.</li> <li style="font-weight: 400;" aria-level="1">Suggested development of a probabilistic model to determine the baseline for ancillary services and conservative operations to avoid watches.</li> </ul> <h3><a href="/sharing/?token=d1587829-3d81-4f80-b24a-7980dacee628">▶️</a> Barksdale English - Probabilistic Modeling, Ancillary Services Need & Intermittent Renewable Growth</h3> <ul> <li style="font-weight: 400;" aria-level="1">Discussion focused on driving towards probabilistic modeling rather than strictly adhering to a 6,500 megawatt standard.</li> <li style="font-weight: 400;" aria-level="1">Chair emphasized that the current 6,500 megawatt figure is a temporary measure until probabilistic modeling is fully implemented.</li> <li style="font-weight: 400;" aria-level="1">Correlation between ancillary services need and renewable intermittent resource growth was examined.</li> <li style="font-weight: 400;" aria-level="1">Commission's report to the legislature indicated no strong correlation between ancillary service needs and types of generation resources.</li> <li style="font-weight: 400;" aria-level="1">Research continues into understanding the relationship between renewable growth and service needs.</li> <li style="font-weight: 400;" aria-level="1">Acknowledgement of the market analysis team's efforts and commitment to further investigation.</li> </ul> <h3><a href="/sharing/?token=e9e7e9f2-7bc6-4aa6-aec9-59a16b574f57">▶️</a>Chairman Gleeson's Thoughts on Ancillary Services Review</h3> <ul> <li style="font-weight: 400;" aria-level="1">Loss of load is not the focus of EA3.</li> <li style="font-weight: 400;" aria-level="1">Currently, no data supports moving away from the 6,500 number, which might be too conservative.</li> <li style="font-weight: 400;" aria-level="1">A process is needed to reveal the assumptions behind the conservative operations number.</li> <li style="font-weight: 400;" aria-level="1">Emphasis on the importance of a deliberative process to evaluate data and reach a decision on operational numbers.</li> <li style="font-weight: 400;" aria-level="1">Collecting historical data on EEA3s for 2022 and 2023, and comparing it to previous years.</li> <li style="font-weight: 400;" aria-level="1">Investigating the impact of renewables, especially solar and wind, on grid operations over recent years.</li> <li style="font-weight: 400;" aria-level="1">Comparing historical situations (like 2016) with the current scenario to understand operational differences.</li> </ul> <h3><a href="/sharing/?token=7c153a9c-9f66-4a43-9359-057de4a1d5a8">▶️</a>Julie Gauldin - Dynamic determination of AS quantities, Probabilistic modeling & DRRS, 55845</h3> <ul> <li style="font-weight: 400;" aria-level="1">Staff supports setting AS quantities more frequently than every year.</li> <li style="font-weight: 400;" aria-level="1">Recognized challenges for entities to hedge AS costs; recommends deliberate rollout.</li> <li style="font-weight: 400;" aria-level="1">Target timing no later than 2028 for implementing methodology.</li> <li style="font-weight: 400;" aria-level="1">Recommends ERCOT and stakeholders to investigate benefits, possibly using a dynamic ratio.</li> </ul> <h4>Probabilistic Modeling</h4> <ul> <li style="font-weight: 400;" aria-level="1">ERCOT staff supports moving from historical statistical approach to probabilistic modeling.</li> <li style="font-weight: 400;" aria-level="1">This topic was least controversial among discussions.</li> </ul> <h4>DRRS</h4> <ul> <li style="font-weight: 400;" aria-level="1">DRRS shouldn't be designated separately for resource adequacy.</li> <li style="font-weight: 400;" aria-level="1">Should be primarily designed as an ancillary service to mitigate operational risks.</li> <li style="font-weight: 400;" aria-level="1">DRRS could be part of reliability assessment along with other AS.</li> <li style="font-weight: 400;" aria-level="1">Initial targeting of DRRS should be on dispatchable generation.</li> <li style="font-weight: 400;" aria-level="1">Batteries' role in DRRS is importantly questioned for their utility in preventing system issues.</li> <li style="font-weight: 400;" aria-level="1">Discussion on NPRR1235 notes that batteries aren't included in the first phase but might be in the second.</li> </ul> <h3><a href="/sharing/?token=1b117584-58c4-4c0d-8a41-8b0c068dcb5a">▶️</a>Keith Collins - ERCOT - NPRR1235, 55845</h3> <ul> <li style="font-weight: 400;" aria-level="1">Discussion on the evolving perspective of NPRR1235 and the potential inclusion of batteries as ancillary services.</li> <li style="font-weight: 400;" aria-level="1">Consideration of developing an ancillary service that might evolve into a resource agency tool, allowing for future adaptability and inclusivity of dispatchable resources.</li> <li style="font-weight: 400;" aria-level="1">Debate over designing the Dual-Product DRRS to serve both operational and resource adequacy needs.</li> <li style="font-weight: 400;" aria-level="1">Recognition of a significant revenue gap addressed by the DRRS, positioned as a future option.</li> <li style="font-weight: 400;" aria-level="1">Evaluation of various revenue streams for generation developers, focusing on energy markets and ancillary services to ensure resource adequacy.</li> <li style="font-weight: 400;" aria-level="1">Discussion on the potential impact of linking DRRS to a reliability standard and its implications for capacity market functions.</li> <li style="font-weight: 400;" aria-level="1">Acknowledgment of the need for flexibility in developing operational tools while considering policy impacts, especially regarding battery incentives and economic regulation priorities.</li> <li style="font-weight: 400;" aria-level="1">Consideration of economic incentives and ensuring a balance between revenue support for thermal dispatchable generation and the integration of batteries.</li> <li style="font-weight: 400;" aria-level="1">Reflection on the importance of understanding diverse perspectives regarding the role of DRRS as a potential resource adequacy tool.</li> </ul> <h3><a href="/sharing/?token=b7c28047-4bf0-4bd6-af9c-d3becd489c26">▶️</a>Julie Gauldin - Firm Fuel Supply, Improvements to Market Efficiency and Duration Requirements for ECRS & Non Spin, 55845</h3> <ul> <li style="font-weight: 400;" aria-level="1">Discussion included several subtopics under a broad topic category.</li> <li style="font-weight: 400;" aria-level="1">Firm fuel supply does not require changes in the scope of the current study.</li> <li style="font-weight: 400;" aria-level="1">There is a separate project for fuel supply related to ERS.</li> <li style="font-weight: 400;" aria-level="1">Recommendation for ERCOT to perform a holistic review of all emergency and doctor programs.</li> <li style="font-weight: 400;" aria-level="1">Subtopic 7C pricing can improve market efficiency, supported by staff but suggested for review post-RTC+B stabilization.</li> <li style="font-weight: 400;" aria-level="1">Discussion on revisiting duration requirements for ECRS and non spin, supported by staff and to be considered after RTC+B steady state.</li> </ul> <h2><a href="/sharing/?token=e2ff0188-7796-4236-9c3b-9a76e6ba931c">▶️</a> 32 - Project No. 56896 – Texas Energy Fund In-ERCOT Loan Program Reports and Filings</h2> <h3><a href="/sharing/?token=094851d3-ac34-4085-b903-2beb8756ea79">▶️</a>Tracie Tolle - Commission Staff - application advancement, authority delegated to Executive Director concerning loan agreements & update on 4 TX Energy Fund programs, 56896</h3> <ul> <li style="font-weight: 400;" aria-level="1">Recommended advancement of two applications totaling 1231 megawatts to due diligence.</li> <li style="font-weight: 400;" aria-level="1">Authority delegated to the Executive Director to enter loan agreements upon due diligence completion.</li> <li style="font-weight: 400;" aria-level="1">Project selection followed an enhanced process, including know your customer review and prioritization based on completion of crucial project items.</li> <li style="font-weight: 400;" aria-level="1">Current portfolio undergoing due diligence totals 9,720 megawatts.</li> <li style="font-weight: 400;" aria-level="1">18 applications in due diligence phase, evaluating technical, market, financial, and environmental factors.</li> <li style="font-weight: 400;" aria-level="1">Texas Energy Fund Council involved in finalizing term sheets and loan agreements.</li> <li style="font-weight: 400;" aria-level="1">Anticipation to begin executing loan agreements by summer with initial disbursement by end of next December.</li> <li style="font-weight: 400;" aria-level="1">Completion bonus grants program's online application system to be deployed on January 1st.</li> <li style="font-weight: 400;" aria-level="1">Performance-based grant awards paid over a 10-year period, with initial disbursement expected by end of 2026.</li> <li style="font-weight: 400;" aria-level="1">Public comment period for outside ERCOT's grant program ended, staff reviewing comments for rule adoption by late January.</li> <li style="font-weight: 400;" aria-level="1">Development of online applications and guidance for outside ERCOT grant aimed for 2025.</li> <li style="font-weight: 400;" aria-level="1">Texas Backup Power package program received advisory report, final engineering report due January 21, rulemaking anticipated in 2025.</li> <li style="font-weight: 400;" aria-level="1">Emphasis on continuous project evaluation in case any projects fall out.</li> </ul> <h3><a href="/sharing/?token=8b602d2e-c6c0-443f-ab56-80644b081520">▶️</a>Commissioners thoughts on review, 56896</h3> <ul> <li style="font-weight: 400;" aria-level="1">Emphasis on continuous review with a focus on supply chain and availability of key equipment.</li> <li style="font-weight: 400;" aria-level="1">The need to continuously monitor to ensure project viability due to supply chain constraints.</li> <li style="font-weight: 400;" aria-level="1">Additional three criteria for project evaluation to ensure timely execution.</li> <li style="font-weight: 400;" aria-level="1">Importance of revisiting existing applications to assess their potential under the new criteria.</li> <li style="font-weight: 400;" aria-level="1">Addition of two projects in the Houston load zone addresses concerns and is seen as a positive development.</li> <li style="font-weight: 400;" aria-level="1">Future consideration for projects in the Rio Grande Valley depending on regional growth.</li> <li style="font-weight: 400;" aria-level="1">Agreement to keep the legislature updated on timelines and progress of projects.</li> <li style="font-weight: 400;" aria-level="1">Acknowledgment of a proposed order to include two additional projects.</li> </ul> <ul> <li style="font-weight: 400;" aria-level="1">A motion to approve the proposed order filed in document 56896 passed unanimously.</li> </ul> <h2><a href="/sharing/?token=95bb8054-72ec-490e-9dce-91fe1aa9f951">▶️</a> 33 - Project No. 56966 – Goal for Reducing Average Total Residential Load in the ERCOT Region</h2> <h3><a href="/sharing/?token=bd7a535c-c8d8-4782-9c3e-98b1c882781b">▶️</a>Ramya Ramaswamy - Commission Staff</h3> <ul> <li style="font-weight: 400;" aria-level="1">Removal of 1 yr expiration on standalone contracts, 56966</li> <li style="font-weight: 400;" aria-level="1">Proposed goal to reduce residential load during the net peak hour by 20%.</li> <li style="font-weight: 400;" aria-level="1">Removal of the 1-year expiration on standalone contracts for residential customers.</li> <li style="font-weight: 400;" aria-level="1">Contract will expire per the terms offered by the reps or when the rep is no longer on record.</li> <li style="font-weight: 400;" aria-level="1">Discussion of adopting the goal through rule changes.</li> <li style="font-weight: 400;" aria-level="1">Positive comments about establishing goals and measuring the effectiveness of demand response across ERCOT.</li> <li style="font-weight: 400;" aria-level="1">Staff focuses on net peak load to assess demand response value during critical system needs.</li> <li style="font-weight: 400;" aria-level="1">Plan to gather data from reps to calculate and measure the goal achievement during net peak period.</li> <li style="font-weight: 400;" aria-level="1">Clarification that no new programs are being initiated, only data collection and goal measurement.</li> <li style="font-weight: 400;" aria-level="1">Staff sees no issues with 4cp or the goal calculation impacting future discussions.</li> </ul> <h3><a href="/sharing/?token=4ee4adbb-6966-4932-9605-422f0ce442ee">▶️</a>David Smeltzer - Commission Staff - Discussion on 4CP, 56966</h3> <ul> <li style="font-weight: 400;" aria-level="1">David Smeltzer, Commission Staff, addressed the topic of 4CP discussions and clarified that current discussions would not rely on specific rules for decision-making.</li> <li style="font-weight: 400;" aria-level="1">There is an emphasis on designing rules contextually to focus on different issues, indicating flexibility in approach.</li> <li style="font-weight: 400;" aria-level="1">Staff does not consider current rules as a prejudgment of future issues in the 4CP context.</li> <li style="font-weight: 400;" aria-level="1">Motion to approve proposed order, 56966 passed unanimously.</li> </ul> <h2><a href="/sharing/?token=bb38e6cf-6137-4d97-9d6f-f9d43c3cf6ef">▶️</a> 34 - Project No. 53404 – Temporary Emergency Electric Energy Facilities and Long LeadTime Facilities</h2> <h3><a href="/sharing/?token=3feb8bed-788a-4441-b966-ac88c0ba60b3">▶️</a>Julie Blocker - Commission Staff - Temporary Emergency Electric Energy Facilities</h3> <ul> <li style="font-weight: 400;" aria-level="1">The goal is to enable utilities to lease TEEEF for restoring electricity during severe weather or outages, while protecting consumers from high costs.</li> <li style="font-weight: 400;" aria-level="1">A working draft of the rule text was provided for feedback to balance these goals.</li> </ul> <ul> <li style="font-weight: 400;" aria-level="1">Key elements include a pre-approval process for TEEEF capacity, after-action reporting, and delayed prudency finding.</li> <li style="font-weight: 400;" aria-level="1">The pre-approval process involves Commission approval before utilities can lease TEEEF, requiring detailed documentation of past usage and intended functions.</li> <li style="font-weight: 400;" aria-level="1">After-action reports must be filed within 30 days post-outage to report on TEEEF use and its benefits.</li> <li style="font-weight: 400;" aria-level="1">Prudency findings on TEEEF expenses will be reviewed during the utility's base rate case to ensure thorough evaluation.</li> </ul> <h3><a href="/sharing/?token=ebd4944b-4c4a-4771-ac06-207a8dad6138">▶️</a>Commissioner Glotfelty's Thoughts on Temporary Emergency Electric Energy Facilities</h3> <ul> <li style="font-weight: 400;" aria-level="1">Commissioner Glotfelty commended the team's work on the agenda item.</li> <li style="font-weight: 400;" aria-level="1">Concern was raised about the competitive bidding process wording. Emphasis on ensuring competitive bidding should be the norm, with exceptions being very narrow.</li> <li style="font-weight: 400;" aria-level="1">Second comment focused on the energization of Temporary Emergency Electric Energy Facilities (TEEEF), specifically concerning load shedding and scenarios where distribution facilities are not fully served.</li> <li style="font-weight: 400;" aria-level="1">Discussion on whether extreme situations like hurricanes or fires are adequately considered in the current framework.</li> <li style="font-weight: 400;" aria-level="1">Glotfelty expressed a desire for these situations to be captured to ensure effective use of TEEEF.</li> </ul> <h3><a href="/sharing/?token=0a5cdc73-7b5c-401b-bdcc-c26b27f7c06c">▶️</a>Julie Blocker - Competitive bidding process, 53404</h3> <ul> <li style="font-weight: 400;" aria-level="1">The "reasonably practical" language in the competitive bidding process aligns with statute 39,918.</li> <li style="font-weight: 400;" aria-level="1">A new requirement was added from PFP to PFA, mandating TDUs to provide documentation if claiming that a competitive bidding process was not reasonably practicable.</li> <li style="font-weight: 400;" aria-level="1">The use case for TIF energization, when not fully served by the power system, also aligns with statute.</li> <li style="font-weight: 400;" aria-level="1">Understanding of the language includes TDUs' distribution facilities not being served due to outages, failures, or any other issues as part of the scope.</li> </ul> <h3><a href="/sharing/?token=35595028-3f01-44d2-aa13-9a675cd9b6df">▶️</a>David Smeltzer - Temporary Emergency Electric Energy Facilities, 53404</h3> <ul> <li style="font-weight: 400;" aria-level="1">Discussion about a specific scenario related to Temporary Emergency Electric Energy Facilities (TEEEF) as instructed by statutes.</li> <li style="font-weight: 400;" aria-level="1">TDUs are allowed to use TEEEF in certain situations under statutory authorization.</li> <li style="font-weight: 400;" aria-level="1">Commentary on statutory interpretation provided in the preamble.</li> <li style="font-weight: 400;" aria-level="1">Legislative session upcoming; guidance from legislature desired.</li> <li style="font-weight: 400;" aria-level="1">Potential delay in voting for more time to consider modifications.</li> <li style="font-weight: 400;" aria-level="1">Acknowledgment of legislative efforts, but preference to await further legislative guidance.</li> <li style="font-weight: 400;" aria-level="1">End of the month expiration for PFA; concerns over extensive work already done.</li> <li style="font-weight: 400;" aria-level="1">Collaboration with legislative staff to ensure alignment.</li> <li style="font-weight: 400;" aria-level="1">Intent to avoid working against legislative intentions.</li> <li style="font-weight: 400;" aria-level="1">Discussion to continue in upcoming open meeting.</li> <li style="font-weight: 400;" aria-level="1">Rule text filed for discussion, not yet ready for adoption.</li> </ul> <h3><a href="/sharing/?token=d5b3e233-5fd3-4eaa-9240-b6bbb15d9f21">▶️</a>Shelah Cisneros - Commissioner memos, 53404</h3> <ul> <li style="font-weight: 400;" aria-level="1">Discussion on planning ahead for next week's meeting due to statutory deadlines.</li> <li style="font-weight: 400;" aria-level="1">Proposal to file Commissioner memos earlier to allow thorough consideration before meetings.</li> <li style="font-weight: 400;" aria-level="1">Acknowledgment of existing challenges with managing risk and continuous audit and improvement.</li> <li style="font-weight: 400;" aria-level="1">Discussion on the importance of addressing access to lease agreements in rulemaking, amid confidentiality concerns.</li> <li style="font-weight: 400;" aria-level="1">Conversation about including lease agreements in cost recovery proceedings for clarity and efficiency.</li> <li style="font-weight: 400;" aria-level="1">Meeting concludes with a brief mention of agenda completion and brief informal exchanges</li> </ul> <h2><a href="/sharing/?token=6483664a-2612-4513-9bde-885809d36807">▶️</a> 35 - Project No. 55000 – Performance Credit Mechanism (PCM)</h2> <h3><a href="/sharing/?token=b4984f4f-4591-46a9-9bc9-26959f10b33c">▶️</a>Keith Collins - ERCOT VP of Market Operations - Performance Credit Mechanism</h3> <ul> <li style="font-weight: 400;" aria-level="1">Highlighted a chart from the report showing the reliability standard and future market projections.</li> <li style="font-weight: 400;" aria-level="1">Current estimate shows not meeting the reliability standard by 2026.</li> <li style="font-weight: 400;" aria-level="1">Contributing factors pulling away from the standard include firm load growth and generator retirements.</li> <li style="font-weight: 400;" aria-level="1">Texas Energy Fund and performance credit mechanism aim to improve reliability.</li> <li style="font-weight: 400;" aria-level="1">E3 analysis predicts a 18% improvement in reliability with the performance credit mechanism.</li> <li style="font-weight: 400;" aria-level="1">Incentivizes about 780 megawatts of new dispatchable generation, 0.9% of total capacity.</li> <li style="font-weight: 400;" aria-level="1">Costs capped at $1 billion, with a $12 million net cost to the system.</li> <li style="font-weight: 400;" aria-level="1">The mechanism provides incremental reliability but doesn't close the reliability gap.</li> <li style="font-weight: 400;" aria-level="1">Recommendation to revisit parameters if PCM continues or consider PCM as a future option.</li> </ul> <h3><a href="/sharing/?token=ea8ca4e2-84aa-4eb3-82b9-a458b419813d">▶️</a>Jeff McDonald - VP of Potomac Economics & IMM - E3 PCM Report</h3> <ul> <li style="font-weight: 400;" aria-level="1">Jeff McDonald provided a high-level summary of the work Potomac Economics did on the E3 report, focusing on a qualitative analysis of PCM, including a model to reflect equilibrium conditions.</li> <li style="font-weight: 400;" aria-level="1">In the short run, PCM could cost roughly a billion dollars annually until reaching equilibrium, but the time frame for this was uncertain.</li> <li style="font-weight: 400;" aria-level="1">The long-run cost of PCM could be offset by a reduction in shortage pricing revenue, although the analysis found there is still a material annual cost.</li> <li style="font-weight: 400;" aria-level="1">Concerns were raised about using a 12-month historical energy and reserve margin to determine the PCM price, as it could lead to inaccuracies in payments due to not considering longer periods like in generation development.</li> <li style="font-weight: 400;" aria-level="1">Potomac Economics estimated the net cost impact to be between 350 to 725 million per year, higher than ERCOT's 12 million annual estimate.</li> <li style="font-weight: 400;" aria-level="1">The discussion suggested that using the gross cost cap instead of a net cost cap was appropriate due to variance in estimated costs.</li> <li style="font-weight: 400;" aria-level="1">No decision was made during the meeting, but there was an indication to decide at the next open meeting.</li> </ul> <h3><a href="/sharing/?token=5f79815d-bc16-4e69-aa19-0903dcde9144">▶️</a>Commissioner's Thoughts on PCM, 55000</h3> <ul> <li style="font-weight: 400;" aria-level="1">The legislature requires a billion dollar cost cap on PCM, offering limited value for additional generation.</li> <li style="font-weight: 400;" aria-level="1">Expressed concern over reliance on a reliability standard to determine market reliability.</li> <li style="font-weight: 400;" aria-level="1">Noted low loss of load expectation during Winter Storm Uri despite high reserve margins, yet significant outages occurred.</li> <li style="font-weight: 400;" aria-level="1">Emphasized careful decision-making and exploring multiple solutions due to demand growth.</li> <li style="font-weight: 400;" aria-level="1">Appreciates the availability of two different analyses for ERCOT PCM evaluation, providing diverse perspectives.</li> <li style="font-weight: 400;" aria-level="1">Discussion on possibly shelving the PCM data for future use while exploring other options like DRS.</li> <li style="font-weight: 400;" aria-level="1">Comparisons needed between cost of current PCM, DRS, and other options to incentivize generation in Texas.</li> <li style="font-weight: 400;" aria-level="1">Acknowledged ongoing development of DRS and RTC+B, with prioritization ahead of PCM.</li> <li style="font-weight: 400;" aria-level="1">Stressed need for analysis and structural decisions before adding more to the market.</li> </ul> <h3><a href="/sharing/?token=ad65540c-3b64-446b-9ffc-f9f37b1b8fb8">▶️</a>Keith Collins & Matt Arth - ERCOT - Chairman's question on load forecast assumption in the E3 model, 55000</h3> <ul> <li style="font-weight: 400;" aria-level="1">Average load forecast used a 20, 26-year projection, slightly under 100,000.</li> <li style="font-weight: 400;" aria-level="1">Recent forecasts didn't include many additional loads impacting more recent predictions.</li> <li style="font-weight: 400;" aria-level="1">Large loads with signed interconnection agreements included in the forecast.</li> <li style="font-weight: 400;" aria-level="1">Some large loads were considered price-sensitive and flexible.</li> <li style="font-weight: 400;" aria-level="1">Further discussions anticipated, with plans to decide on future actions at the upcoming meeting on the 19th.</li> </ul> <h2>36-51</h2> <ul> <li style="font-weight: 400;" aria-level="1">Not Discussed</li> </ul> <h2><a href="/sharing/?token=8cb460a2-f5ea-4aa8-91f4-851e7949d06c">▶️</a> 52 - Chairman Gleeson pauses Open Meeting, to hold Closed Session</h2> <ul> <li style="font-weight: 400;" aria-level="1">Commission consulted with its attorney about FERC Docket No. EL25-23-000.</li> <li style="font-weight: 400;" aria-level="1">Motion made to request the Office of the Attorney General represent the Commission in FERC Docket No. EL25-23-000.</li> <li style="font-weight: 400;" aria-level="1">Motion passed with approval.</li> </ul> <h3><a href="/sharing/?token=db8bee6a-33ea-445b-ab81-182fb1626e2a">▶️</a> 52 - Commissioner Glotfelty adjourns meeting</h3>