Frame

Meeting Summary - 02/04/2025 Board of Directors Meeting

Grid Monitor AI
02/05/2025

<div class="news-image-container"><img src="/storage/docs/2025/02/02-05-2025-BOD-Hero.png" /></div> <h3><a href="/sharing/?token=715fe84c-8ac7-497a-9d5d-d723fdd50a28">▶️</a> 1 - Call General Session to Order Chair</h3> <h3><a href="/sharing/?token=c4a5fc09-8f9f-462a-a58f-ad6dcdc7142f">▶️</a> 2 - Notice of Public Comment, if Any Discussion - Chair</h3> <ul> <li style="font-weight: 400;" aria-level="1">No public comment.</li> </ul> <h3><a href="/sharing/?token=84a8ac71-dfde-44aa-b9e7-f534918750f2">▶️</a> 3 - Confirmation of 2025 Technical Advisory Committee Chair and Vice Chair Vote - TAC Chair</h3> <ul> <li style="font-weight: 400;" aria-level="1">Confirmation of the 2025 TAC Chair and Vice Chair is required by the board according to bylaws.</li> <li style="font-weight: 400;" aria-level="1">TAC elected the Chair and Vice Chair for the 2025 year during the meeting held on January 22, 2025.</li> <li style="font-weight: 400;" aria-level="1">Caitlin Smith of Jupiter Power was elected as Chair.</li> <li style="font-weight: 400;" aria-level="1">Martha Henson of Oncor Electric Delivery was elected as Vice Chair.</li> <li style="font-weight: 400;" aria-level="1">The motion passed with all in favor, no oppositions, and no abstentions.</li> </ul> <h3><a href="/sharing/?token=552f6008-dcf6-487a-ad57-d6d806070b80">▶️</a> 4 - Consent Agenda Vote - Chair</h3> <h4><a href="/sharing/?token=62c0de0f-2e7f-4fcf-b081-8ef650381990">▶️</a> 4.1 - Unopposed Revision Requests Recommended by TAC for Approval Vote</h4> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve the consent agenda as presented passed unanimously with no abstentions.</li> <ul> <li style="font-weight: 400;" aria-level="2">There are 17 revision requests included in the consent agenda.</li> <li style="font-weight: 400;" aria-level="2">Five revision requests have budget impacts.</li> <li style="font-weight: 400;" aria-level="2">Four of the revision requests have implementation costs less than $75,000. </li> </ul> </ul> <h5>4.1.1</h5> <ul> <li style="font-weight: 400;" aria-level="1">Not discussed</li> </ul> <h5><a href="/sharing/?token=ab32e576-9183-45ca-b66e-0f8c8b8b984e">▶️</a> 4.1.2 - NPRR1246, Energy Storage Resource Terminology Alignment for the Single-Model Era</h5> <ul> <li style="font-weight: 400;" aria-level="1">The board remanded NPRR1246 and its companion revision request back to TAC due to alignment language issues.</li> <li style="font-weight: 400;" aria-level="1">TAC addressed the revision requests, and they are now on the consent agenda.</li> </ul> <h5>4.1.3 - 4.1.14</h5> <ul> <li style="font-weight: 400;" aria-level="1">Not Discussed</li> </ul> <h5><a href="/sharing/?token=5d4fd2f3-b833-47ca-afdd-4616e2d8de6f">▶️</a> 4.1.15 - PGRR117, Addition of Resiliency Assessment and Criteria to Reflect PUCT Rule Changes</h5> <ul> <li style="font-weight: 400;" aria-level="1">PGRR117 has a budget impact between $360,000 to $440,000.</li> <li style="font-weight: 400;" aria-level="1">The budget impact is due to two new Full-Time Equivalent (FTE) positions.</li> <li style="font-weight: 400;" aria-level="1">These FTEs are included in the ERCOT 2024-2025 approved budget.</li> </ul> <h5>4.1.16 - 4.1.17</h5> <ul> <li style="font-weight: 400;" aria-level="1">Not Discussed</li> </ul> <h3><a href="/sharing/?token=4f2c06d6-8736-429b-8812-8255f2c41e2c">▶️</a> 5 - December 3, 2024 General Session Meeting Minutes Vote - Chair</h3> <ul> <li style="font-weight: 400;" aria-level="1">The board voted to approve the minutes with unanimous consent, no opposition or abstentions.</li> </ul> <h3><a href="/sharing/?token=37ff490d-f754-4bc3-8b7b-f1d4dfadcf4a">▶️</a> 6 - CEO Update Discussion - Pablo Vegas</h3> <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/31/6-ceo-update-revised.pdf">6 CEO Update - REVISED</a> <ul> <li style="font-weight: 400;" aria-level="1">Pablo Vegas discussed the performance of the ERCOT grid during recent winter storms and introduced changes to capacity, demand, and reserve reporting.</li> <li style="font-weight: 400;" aria-level="1">Highlighted the importance of the Capacity Demand Reserve (CDR) report, which now includes comprehensive load forecasts and energy storage resources.</li> <li style="font-weight: 400;" aria-level="1">Discussed the performance indicators and strategic changes to the CDR report to better inform market trends, including future scenarios based on variable changes.</li> <li style="font-weight: 400;" aria-level="1">Discussed ERCOT's robust communication and planning efforts during winter storms, highlighting improvements in weatherization and increased battery storage capacity.</li> <li style="font-weight: 400;" aria-level="1">Explained the ongoing transmission planning efforts including the introduction of a potential 765 kV system to meet growing load demands, especially in the Permian Basin.</li> <li style="font-weight: 400;" aria-level="1">Discussed the benefits of a 765 kV system for statewide transmission planning, emphasizing reduced line losses, enhanced grid stability, and overall cost benefits.</li> <li style="font-weight: 400;" aria-level="1">Highlighted ongoing planning with a focus on transmission enhancements, discussing the role of increased battery storage and renewable energy sources.</li> <li style="font-weight: 400;" aria-level="1">Mentioned ERCOT's independence and self-reliance in grid management, and discussed potential interconnection with neighboring systems without altering FERC jurisdiction.</li> </ul> <h3><a href="/sharing/?token=0b2f0bab-95c3-463a-98a9-bdcc209c3cdb">▶️</a> 7 - TAC Report Discussion - TAC Chair</h3> <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/28/7-tac-report.pdf">7 TAC Report</a> <ul> <li style="font-weight: 400;" aria-level="1">Acknowledgment of progress made in integrating stakeholder voices and policy governance in the industry.</li> <li style="font-weight: 400;" aria-level="1">Introduction of new TAC vice chair, Martha Henson, noted for her expertise.</li> <li style="font-weight: 400;" aria-level="1">TAC meeting summary: in January, unanimously approved 17 revision requests.</li> <li style="font-weight: 400;" aria-level="1">Subcommittee leadership confirmed with a mix of returning and new members.</li> <li style="font-weight: 400;" aria-level="1">Endorsement of three RPG projects unanimously voted by TAC.</li> <li style="font-weight: 400;" aria-level="1">Changes proposed to the ancillary service methodology associated with NPRR1257 and NOGRR271, setting a 157 megawatt limit on RRS resources.</li> <li style="font-weight: 400;" aria-level="1">Discussion of 2024 goals with plans for 2025 focusing on broader, sustainable goals.</li> <li style="font-weight: 400;" aria-level="1">Mapping of revision requests to TAC goals, with significant emphasis on cost-effective market design improvements and other key goals related to reliability and market monitoring.</li> <li style="font-weight: 400;" aria-level="1">Recognition of strategic objectives aiming to enhance grid reliability and economic competitiveness.</li> </ul> <h3><a href="/sharing/?token=96bf65a1-64a7-46bd-b1a9-8675cc411bb9">▶️</a> 8 - Update on CPS Energy Braunig Unit 3 RMR Agreement and Life Cycle Power Mobile Generation Solution as alternative to Braunig Units 1 and 2 Discussion - Woody Rickerson / Chad V. Seely</h3> <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/31/8-update-on-cps-energy-braunig-unit-3-rmr-agreement-and-life-cycle-power-mobile-generation-solution-as-alternative-to-braunig-units-1-and-2.pdf">8 Update on CPS Energy Braunig Unit 3 RMR Agreement and Life Cycle Power Mobile Generation Solution as alternative to Braunig Units 1 and 2</a> <ul> <li style="font-weight: 400;" aria-level="1">There is an increased budget for the Braunig resources, mainly for Unit 3, due to higher costs for outage inspection, equipment, and compliance.</li> <li style="font-weight: 400;" aria-level="1">CPS Energy has submitted updated budgets which reflect an overall increase of $11 million for the Braunig Units.</li> <li style="font-weight: 400;" aria-level="1">The necessity of the units is justified by a transmission reliability analysis showing overloads in the San Antonio area that require capacity until 2027.</li> <li style="font-weight: 400;" aria-level="1">No market solutions met criteria to compete with Braunig resources; thus, Unit 3 RMR agreement was recommended.</li> <li style="font-weight: 400;" aria-level="1">The alternative with mobile generation involves relocating 15 mobile generation units, each 32 MW, from Houston to San Antonio.</li> <li style="font-weight: 400;" aria-level="1">Unit 3 RMR agreement has not yet been executed due to ongoing negotiations with CPS regarding emissions exceedances and outage inspection coordination.</li> <li style="font-weight: 400;" aria-level="1">The emissions addendum for Unit 3 deals with new NOx emissions limits and may involve costs associated with NOx allowances during summer.</li> <li style="font-weight: 400;" aria-level="1">Discussion of costs associated with mobile generation solution: $26 million for lifecycle relocation and $27 million for CPS interconnections.</li> <li style="font-weight: 400;" aria-level="1">The mobile generation solution presents a faster deployment timeline and greater reliability characteristics compared to Units 1 and 2.</li> <li style="font-weight: 400;" aria-level="1">ERCOT is considering seeking exceptions to accelerate interconnection processes for mobile generation units.</li> <li style="font-weight: 400;" aria-level="1">Staged deployment of mobile generation units expected over the summer of 2025.</li> <li style="font-weight: 400;" aria-level="1">The need for swift action is emphasized due to the pressing reliability concerns for summer 2025.</li> <li style="font-weight: 400;" aria-level="1">Environmental emissions considerations for mobile generation units are being discussed with regulatory bodies.</li> </ul> <h3><a href="/sharing/?token=4d5b284e-f506-451c-bb18-65125483cd8d">▶️</a> 9 - Committee Reports Discussion - Committee Chairs</h3> <h4><a href="/sharing/?token=4d731840-04b6-40f2-bdd3-2d57bc03293e">▶️</a> 9.1 - Finance and Audit Committee Report Discussion - F&A Chair</h4> <ul> <li style="font-weight: 400;" aria-level="1">There are two associated voting items with this agenda.</li> <li style="font-weight: 400;" aria-level="1">The chair of the finance and audit committee provided an update to the board.</li> <li style="font-weight: 400;" aria-level="1">The committee members voted to recommend board approval of two items.</li> </ul> <h5><a href="/sharing/?token=6a3cd6fb-981b-4ea4-97ba-d44eb35582f6">▶️</a> 9.1.1 - Financial Corporate Standard Vote - Chair</h5> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve item as presented passed unanimously unanimously with no abstentions.</li> </ul> <h5><a href="/sharing/?token=583e3def-a56a-4730-81ec-63a1b4f55a47">▶️</a> 9.1.2 - Investment Corporate Standard Vote - Chair</h5> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve item as presented passed unanimously with no abstentions.</li> <ul> <li style="font-weight: 400;" aria-level="2">Items 9.1.1 and 9.1.2 both had minor revisions.</li> <li style="font-weight: 400;" aria-level="2">Finance and Audit Committee approved the internal audit committee charter with updates from global internal audit standards promulgated in 2024.</li> <li style="font-weight: 400;" aria-level="2">Preliminary audited financial results showed ERCOT's 2024 revenues were $97 million favorable to budget due to higher interest rates and other savings.</li> <li style="font-weight: 400;" aria-level="2">ERCOT is compliant with investment policies and debt requirements under securitization arrangements.</li> <li style="font-weight: 400;" aria-level="2">In April's meeting, the committee will meet with external auditors for financial statement audit acceptance.</li> </ul> </ul> <h4><a href="/sharing/?token=e6398eb2-79f4-407c-9711-b3927ae3880f">▶️</a> 9.2 - Human Resources and Governance Committee Report Discussion - HR&G Chair</h4> <h5><a href="/sharing/?token=ef571f80-6bf4-4b38-9010-5c5c352cf1dc">▶️</a> 9.2.1 - Election of Chief Executive Officer and Ratification of Officers of ERCOT Vote - Chair</h5> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve item as presented passed unanimously with no abstentions.</li> <ul> <li style="font-weight: 400;" aria-level="2">The committee voted to recommend the board approve the election of ERCOT's CEO, Pablo Vegas.</li> <li style="font-weight: 400;" aria-level="2">The recommendation includes the ratification of ERCOT's officers.</li> </ul> </ul> <h5><a href="/sharing/?token=7c46385b-e014-469b-9bfc-bf437ac2e972">▶️</a> 9.2.2 - Ratification of Officers of Texas Electric Market Stabilization Funding M LLC Vote - Chair</h5> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve item as presented passed unanimously with no abstentions.</li> </ul> <h5><a href="/sharing/?token=17374d43-17a1-48f9-8efc-a3dfcdfb194f">▶️</a> 9.2.3 - Ratification of Officers of Texas Electric Market Stabilization Funding N LLC Vote - Chair</h5> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve item as presented passed unanimously with no abstentions.</li> </ul> <h5><a href="/sharing/?token=7b823707-6104-4de7-92cb-613b7e3cf45e">▶️</a> 9.2.4 - 2026 ERCOT Board Meeting Schedule and Annual Meeting of Members Vote - Chair</h5> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve item as presented passed unanimously with no abstentions.</li> <ul> <li style="font-weight: 400;" aria-level="2">A brief discussion was held about annual review of charters and committee membership.</li> <li style="font-weight: 400;" aria-level="2">There are three new board members to help with committee membership.</li> <li style="font-weight: 400;" aria-level="2">An effort is underway to address committee membership, with discussions expected at the next board meeting.</li> </ul> </ul> <h4><a href="/sharing/?token=66c03249-80bf-44a1-8637-93e97b9ecbc3">▶️</a> 9.3 - Reliability and Markets Committee Report Discussion - R&M Chair</h4> <ul> <li style="font-weight: 400;" aria-level="1">Julie England, the Chair of the R&M committee, presented the R&M committee report.</li> <li style="font-weight: 400;" aria-level="1">The report includes five associated voting items.</li> </ul> <h5><a href="/sharing/?token=07b7af60-4851-4b06-97e6-dfeec502f5e2">▶️</a> 9.3.1 - Market Credit Risk Corporate Standard Vote - Chair</h5> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve item as presented passed unanimously with no abstentions.</li> <ul> <li style="font-weight: 400;" aria-level="2">Suggestion to add the Chief Operating Officer to the oversight staff.</li> <li style="font-weight: 400;" aria-level="2">Motion made and seconded for the board to approve the revised standard.</li> <li style="font-weight: 400;" aria-level="2">Vote conducted with approval, no opposition, and no abstentions.</li> </ul> </ul> <h5><a href="/sharing/?token=860d9d6f-0670-40c0-971e-8ff082729827">▶️</a> 9.3.2 - Oncor Forney 345/138-kV Switch Rebuild Project Vote - Chair</h5> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve item as presented passed unanimously with no abstentions.</li> <ul> <li style="font-weight: 400;" aria-level="2">Recommendation to accept regional planning group project option 1A.</li> </ul> </ul> <h5><a href="/sharing/?token=98da8b13-edeb-435d-ba51-3605beebc5f1">▶️</a> 9.3.3 - Oncor Venus Switch to Sam Switch 345-kV Line Project Vote - Chair</h5> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve item as presented passed unanimously with no abstentions.</li> <ul> <li style="font-weight: 400;" aria-level="2">Recommendation to accept  regional planning group project option 1.</li> </ul> </ul> <h5><a href="/sharing/?token=24079774-1982-4747-b79a-a28a980aa747">▶️</a> 9.3.4 - Oncor Wilmer 345/138-kV Switch Project Vote - Chair</h5> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve item as presented passed unanimously with no abstentions.</li> <ul> <li style="font-weight: 400;" aria-level="2">Recommendation to accept  regional planning group project option 1.</li> <li style="font-weight: 400;" aria-level="2">The motions were wrapped into one motion with seconding, leading to a unanimous approval with no opposition or abstentions.</li> </ul> </ul> <h5><a href="/sharing/?token=1cd48be7-e472-464b-ad8a-c141e3214708">▶️</a> 9.3.5 - Recommendation regarding 2025 ERCOT Methodologies for Determining Minimum Ancillary Service Requirements Vote - Chair</h5> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve item as presented passed unanimously with no abstentions.</li> <ul> <li style="font-weight: 400;" aria-level="2">Update limits the amount of responsive reserve service a resource can provide using primary frequency response to 157 megawatts.</li> <li style="font-weight: 400;" aria-level="2">TAC endorsed the update and the corresponding NPRR1257.</li> <li style="font-weight: 400;" aria-level="2">R&M Committee recommended the board to urge the Public Utility Commission of Texas to approve the methodology update effective upon NPRR1257 implementation.</li> <li style="font-weight: 400;" aria-level="2">Board voted, with no opposition or abstentions, to recommend the update.</li> <ul> <li style="font-weight: 400;" aria-level="3">Staff reviewed four transmission planning studies, including cost-benefit analysis on 345 kV regional and 765 kV strategic plans.</li> <li style="font-weight: 400;" aria-level="3">R&M Committee received updates on real-time co-optimization and battery programs, progressing on schedule.</li> <li style="font-weight: 400;" aria-level="3">Discussion on high-impact policy issues within stakeholder process: Dispatchable Reliability Reserve Service (DRRS) and large loads identified as key focus areas for 2025.</li> </ul> </ul> </ul> <h4><a href="/sharing/?token=b9217b2a-cc3d-4a8c-905c-e3eb19c08636">▶️</a> 9.4 - Technology and Security Committee Report Discussion - T&S Chair</h4> <ul> <li style="font-weight: 400;" aria-level="1">No voting items were discussed at the T&S meeting.</li> <li style="font-weight: 400;" aria-level="1">A speaker from Georgia Tech presented to T&S on AI in grid networks, prompting interest in further collaboration.</li> <li style="font-weight: 400;" aria-level="1">Regular updates on projects were provided, with everything reportedly on track.</li> <li style="font-weight: 400;" aria-level="1">A detailed discussion was held at T&S on the RTC implementation project, which is currently on schedule with some risks identified and mitigation plans in place.</li> </ul> <h3><a href="/sharing/?token=a767ba6b-50aa-426a-806e-beebb946cd75">▶️</a> 10 - 2024 Internal Revenue Service Form 990 Questionnaire Discussion - Richard Scheel</h3> <ul> <li style="font-weight: 400;" aria-level="1">The questionnaire is part of the annual process for the board.</li> <li style="font-weight: 400;" aria-level="1">Board members are expected to fill out and return the questionnaire promptly.</li> <li style="font-weight: 400;" aria-level="1">New board members are offered additional guidance if needed.</li> <li style="font-weight: 400;" aria-level="1">No questions were raised regarding this item.</li> </ul> <h3><a href="/sharing/?token=605baae0-29f6-47d0-813c-0b55fd073756">▶️</a> 11 - Other Business Discussion - Chair</h3> <ul> <li style="font-weight: 400;" aria-level="1">No board members raised additional business topics.</li> </ul> <h4><a href="/sharing/?token=f70de877-66bc-46c1-a5f1-2fdfefa9405d">▶️</a> 11.1 - Break</h4> <h3><a href="/sharing/?token=1c668691-c25a-4348-9b67-db78c4c2a6d0">▶️</a> 12 - Vote on Matters from Executive Session Vote - Chair</h3> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve items addressed in the executive session were approved unanimously with no abstentions.</li> <ul> <li style="font-weight: 400;" aria-level="2">The board conducted voting in two rounds.</li> <li style="font-weight: 400;" aria-level="2">First motion for approval of litigation matter (executive session agenda item ES 2.8.4) was moved, seconded, and approved unanimously.</li> <li style="font-weight: 400;" aria-level="2">Second motion included four personnel matters (executive session agenda items ES 2.9.5, ES 2.9.6, ES 2.9.7, and ES 2.9.8) which was moved, seconded, and approved unanimously.</li> </ul> </ul> <h3><a href="/sharing/?token=4a5763ab-fb79-4f1f-865d-af53aea6ac13">▶️</a> 13 - Adjournment - Chair</h3>