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Meeting Summary - 12/03/24 Board of Directors Meeting

Grid Monitor AI
12/04/2024

<img src="/storage/docs/2024/12/20241203BODHero.png" width="873" height="653" /> <h2> </h2> <h2><a href="/sharing/?token=8463dc11-c03c-4638-b519-87b3eee13c76">▶️</a> 1 - Call General Session to Order - Chair</h2> <h2><a href="/sharing/?token=9dfc1c60-1aa2-4f8a-829f-e15754197c73">▶️</a> 2 - Notice of Public Comment, if Any - Discussion - Chair</h2> <ul> <li style="font-weight: 400;" aria-level="1">No public comments have been registered up to the current date.</li> </ul> <h2><a href="/sharing/?token=0d8cca35-0468-4065-a3b9-53eb00f552ec">▶️</a> 3 - Consent Agenda - Vote - Chair</h2> <ul> <li style="font-weight: 400;" aria-level="1">Motion to request the board remand NPRR1246, NOGRR268, OBDRR052, and PGRR118, back to TAC approved unanimously.</li> <li style="font-weight: 400;" aria-level="1">The total aggregate budget impact of revision requests 1239, 1240, and 1249, ranges from $115,000 to $205,000.</li> <li style="font-weight: 400;" aria-level="1">Motion to approve the modified consent agenda passed unanimously. </li> </ul> <h3><a href="/sharing/?token=5fe69514-e2b4-4b85-9c79-2fcdaf7cf2e3">▶️</a> 3.1 - Unopposed Revision Requests Recommended by TAC for Approval - Vote</h3> <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/22/3-1-unopposed-revision-requests-recommended-by-tac-for-approval.zip">3.1 Unopposed Revision Requests Recommended by TAC for Approval</a> <h4><a href="/sharing/?token=4b298101-2612-4218-b473-251b4ec7cea0">▶️</a> 3.1.1 - NPRR1180, Inclusion of Forecasted Load in Planning Analyses</h4> <ul> <li style="font-weight: 400;" aria-level="1">NPRR1180 has a significant budgetary impact.</li> <li style="font-weight: 400;" aria-level="1">It is linked to House Bill5066, not specifically to NPRR itself.</li> <li style="font-weight: 400;" aria-level="1">Requirement to incorporate large forecasted load into planning and analysis.</li> <li style="font-weight: 400;" aria-level="1">ERCOT submitted comments about the budgetary impact during the stakeholder process.</li> <li style="font-weight: 400;" aria-level="1">The annual cost for additional FTEs is estimated between $2 million to $2.4 million.</li> <li style="font-weight: 400;" aria-level="1">Plan to add over 12 FTEs impacting dynamic studies, regional planning, and regional transmission planning groups.</li> <li style="font-weight: 400;" aria-level="1">Budget impact will be seen in the 2026 and 2027 budgets with the Finance and Audit Committee and the board.</li> </ul> *Minimal discussion on other items, see Smart Agenda.* <h2><a href="/sharing/?token=bbbddcbe-8af5-4f91-9006-746c98aa59b6">▶️</a> 4 - October 10, 2024 General Session Meeting Minutes - Vote - Chair</h2> <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/22/4-october-10-2024-board-general-session-meeting-minutes.pdf">4 October 10, 2024 Board General Session Meeting Minutes</a> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve meeting minutes approved unanimously. </li> </ul> <h2><a href="/sharing/?token=e1f5a371-650d-4b69-83b4-baad68276b69">▶️</a> 5 - CEO Update - Discussion - Pablo Vegas</h2> <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/22/5-ceo-update.pdf">5 CEO Update</a> <ul> <li style="font-weight: 400;" aria-level="1">Discussed preparations and expectations for the upcoming winter season, including risk assessment and generation growth since last winter.</li> <li style="font-weight: 400;" aria-level="1">Highlighted the effectiveness of the weatherization program and its impact on the reliability of the grid.</li> <li style="font-weight: 400;" aria-level="1">Completed a significant update to the retail operating model to improve communication protocols and information flows.</li> <li style="font-weight: 400;" aria-level="1">Provided insights into the critical activities planned for 2025, focusing on operations, market design, and planning.</li> <li style="font-weight: 400;" aria-level="1">Addressed the increased load on the system and how it affects the monthly assessment of resource adequacy.</li> <li style="font-weight: 400;" aria-level="1">Explained the differences in resource contributions during summer and winter, emphasizing solar and storage capacity variations.</li> <li style="font-weight: 400;" aria-level="1">Noted improvements in weatherization and reliability metrics due to updated standards and regular inspections.</li> <li style="font-weight: 400;" aria-level="1">Discussed future focus areas, including new reliability standards and improvements in ancillary services management.</li> <li style="font-weight: 400;" aria-level="1">Recognized the significant efforts and achievements of ERCOT's teams in various projects, including ancillary services study, reliability standards, and Texas Set 5.0 update.</li> </ul> <h2><a href="/sharing/?token=0e0c1424-566a-4ff0-b21a-82d511a44595">▶️</a> 6 - 2024-2025 Winter Weather Update - Discussion - Chris Coleman</h2> <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/22/6-2024-2025-winter-weather-update.pdf">6 2024-2025 Winter Weather Update</a> <ul> <li style="font-weight: 400;" aria-level="1">Chris Coleman presented a winter weather outlook for the upcoming 2024-2025 season.</li> <li style="font-weight: 400;" aria-level="1">Winter 2024 is expected to have above normal temperatures with potential extreme cold events.</li> <li style="font-weight: 400;" aria-level="1">Past winters have shown an increasing frequency of extreme cold events in Texas despite generally mild winters.</li> <li style="font-weight: 400;" aria-level="1">Analysis shows a warm trend for 2024 thus far with October being the warmest on record for Texas.</li> <li style="font-weight: 400;" aria-level="1">Despite being warm, 2024 featured unusual weather with above-normal rainfall during a hot summer.</li> <li style="font-weight: 400;" aria-level="1">Extreme cold temperatures have been more frequent in recent winters, with thresholds met in five of the last eight winters.</li> <li style="font-weight: 400;" aria-level="1">An analog comparison points to a possible pattern similar to the winter of 2020-2021 (Uri event).</li> <li style="font-weight: 400;" aria-level="1">Forecast indicates above normal temperatures but highlights a greater than average chance for extreme cold periods.</li> <li style="font-weight: 400;" aria-level="1">The precipitation outlook suggests a dry winter, with 90% of historical analogs pointing towards below-normal precipitation.</li> <li style="font-weight: 400;" aria-level="1">Concerns were raised about how warm shoulder months affect generators' maintenance schedules. Adjustments are made when conditions become tight during these periods.</li> <li style="font-weight: 400;" aria-level="1">Two advanced action notices were issued to manage generator outages during unseasonably warm conditions in fall.</li> </ul> <h2><a href="/sharing/?token=0495b137-e8db-4e75-a28f-64711769315c">▶️</a> 7 - Confirmation of 2025 TAC Representatives - Vote - Chair</h2> <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/22/7-confirmation-of-2025-tac-representatives.pdf">7 Confirmation of 2025 TAC Representatives</a> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve the resolution for 2025 approved unanimously.</li> </ul> <h2><a href="/sharing/?token=1bf56aae-931e-4ff3-b1a7-fba1ecf890f3">▶️</a> 8 - TAC Report - Discussion - TAC Chair</h2> <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/22/8-tac-report.pdf">8 TAC Report</a> <ul> <li style="font-weight: 400;" aria-level="1">Acknowledgments were given to several key leaders and subcommittees for their contributions and accomplishments throughout the year.</li> <li style="font-weight: 400;" aria-level="1">There was a mention of a new subgroup, the Credit Finance subgroup, led by Brendan Sager from Austin Energy.</li> </ul> <ul> <li style="font-weight: 400;" aria-level="1">ROS is the most technical with expert working groups led by Katie Rich (Vistra) and Alex Miller (EDF Renewables).</li> <ul> <li style="font-weight: 400;" aria-level="2">Key achievements include NPRR1198 and NOGRR258 on congestion mitigation, NPRR1221 and NOGRR262 on manual loadshed for operator controlled manual loadshed improvements, and PGRR117 on ERCOT conducting biennial grid reliability and resiliency assessments.</li> </ul> <li style="font-weight: 400;" aria-level="1">WMS sees critical stakeholder interplay, led by Eric Blakey and Jim Lee</li> <ul> <li style="font-weight: 400;" aria-level="2">They completed their 2024 goals and managed congestion revenue rights auction mitigation.</li> </ul> <li style="font-weight: 400;" aria-level="1">Lubbock Power and Light transitioned to retail competition, affecting over 100,000 customers, marking only the second retail market expansion.</li> <li style="font-weight: 400;" aria-level="1">PRS approved 50 NPRRs, increased from 42 last year, achieving 'go live' for 19 projects.</li> <li style="font-weight: 400;" aria-level="1">Key issues forthcoming include large load interconnection, necessitating quick rule formation via stakeholder collaboration.</li> <li style="font-weight: 400;" aria-level="1">October-November technical highlights include AEPSC Brownsville Area Improvements, endorsed congestion revenue right account holder transaction limit, and supported the RTC+B Market Trials Plan.</li> </ul> <h3><a href="/sharing/?token=4a2960ce-199e-4980-8596-c40a71d58581">▶️</a> 8.1 - Non-Unanimous and Other Selected Revision Requests Recommended by TAC for Approval - Discussion - Chair</h3> <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/26/8-1.zip">8.1 Non- Unanimous and Other Selected Revision Requests Recommended by TAC for Approval</a> <ul> <li style="font-weight: 400;" aria-level="1">16 revision requests plus 1 with opposing votes were previously voted for approval.</li> <li style="font-weight: 400;" aria-level="1">The list includes revision requests remanded for updates.</li> <li style="font-weight: 400;" aria-level="1">Updates were related to revision requests 1180 or 1190.</li> </ul> <h4><a href="/sharing/?token=d4806353-9e4a-4408-8923-135463dc0254">▶️</a> 8.1.1 - NPRR1247, Incorporation of Congestion Cost Savings Test in Economic Evaluation of Transmission Projects – URGENT Vote - Chair</h4> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve NPRR1247 as recommended by TAC passed unanimously.</li> </ul> <h4><a href="/sharing/?token=0253503d-dc63-4146-aede-f735f982c3cc">▶️</a> 8.1.2 - Reliability and Markets R&M Committee Recommendations on Non-Unanimous and Other Selected Revision Requests - Discussion - R&M Chair</h4> <ul> <li style="font-weight: 400;" aria-level="1">NPRR1247 on Economic Congestion and Cost Savings Test approved despite three opposing votes, with concerns about transparency and methodology.</li> <li style="font-weight: 400;" aria-level="1">Recommendation for NPRR1247 approval includes hiring two full-time employees for economic analysis and long-term studies, as per R&M Committee's suggestion.</li> <li style="font-weight: 400;" aria-level="1">NPRR1247 introduces an additional economic test based on congestion and cost savings.</li> <li style="font-weight: 400;" aria-level="1">R&M Committee reviewed the technical Advisory committee report on NPRR1247.</li> <li style="font-weight: 400;" aria-level="1">Adoption of NPRR1247 requires hiring two full-time employees for economic analysis and long-term studies..</li> </ul> <h2><a href="/sharing/?token=065c66f1-d22c-4da0-bfb9-5611c59d3579">▶️</a> 9 - ERCOT Staff Recommendation regarding ERCOT Board Approval of Reliability Must-Run (RMR) and Must-Run Alternative MRA Agreements related to CPS Energy Braunig Resources - Vote - Woody Rickerson / Chad</h2> <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/27/9-ercot-staff-recommendation-regarding-ercot-board-approval-of-reliability-must-run-rmr-and-must-run-alternative-mra-agreements-related-to-cps-energy-braunig-resources-revised.pdf">9 ERCOT Staff Recommendation regarding ERCOT Board Approval of Reliability Must-Run (RMR) and Must-Run Alternative (MRA) Agreements related to CPS Energy Braunig Resources - REVISED</a> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve ERCOT staff recommendation regarding ERCOT board approval of the RMR agreement for unit 3 related to CPS Energy Brauning resources passed unanimously with no abstentions.</li> <ul> <li style="font-weight: 400;" aria-level="2">Focus on board approval of ERCOT staff's recommendation for RMR agreement for Braunig Resource Unit 3.</li> <li style="font-weight: 400;" aria-level="2">Deferral of Units 1 and 2 decisions to a future meeting in February.</li> <li style="font-weight: 400;" aria-level="2">Consideration of relocating mobile generation assets to San Antonio for enhanced reliability until transmission solutions are implemented.</li> <li style="font-weight: 400;" aria-level="2">Presentation of qualitative and quantitative analysis focusing on Unit 3 along with a perspective on reliability risks and potential cost implications.</li> <li style="font-weight: 400;" aria-level="2">Background on CPS Energy's notice of suspension of operations for three gas-fired units in San Antonio.</li> <li style="font-weight: 400;" aria-level="2">Analysis revealed performance deficiencies with the proposed retirement of the three units impacting transmission facilities and causing potential load shed.</li> <li style="font-weight: 400;" aria-level="2">ERCOT investigated Must-Run Alternatives and found no qualified proposals.</li> <li style="font-weight: 400;" aria-level="2">Recommendation for RMR service on Braunig Unit 3 to avoid system-wide load shed at a lower cost.</li> <li style="font-weight: 400;" aria-level="2">Discussion of risk factors including inspection timelines and unforeseen costs associated with refurbishment.</li> <li style="font-weight: 400;" aria-level="2">Highlight on calculated risk of load shed given constraints and assumption-based analysis for 2025 and 2026.</li> <li style="font-weight: 400;" aria-level="2">Evaluation of mobile generation units providing a potential interim solution with comparable capacity.</li> <li style="font-weight: 400;" aria-level="2">Discussion on the cost-effectiveness of choosing RMR for Unit 3 considering avoided load shed value and estimated costs.</li> <li style="font-weight: 400;" aria-level="2">Decision implications if considering Braunig Units 1 and 2 where mobile gen units could complement but not entirely substitute their capacity.</li> <li style="font-weight: 400;" aria-level="2">Critical urgency for action on Unit 3 due to lack of alternatives, while considering future steps and analysis for Units 1 and 2.</li> <li style="font-weight: 400;" aria-level="2">Director and legislative support for mobile generation as an integrated solution.</li> <li style="font-weight: 400;" aria-level="2">Plan for April readiness of mobile generation if chosen and necessity for regulatory adjustments to enable their temporary operation.</li> </ul> </ul> <h2><a href="/sharing/?token=611357e0-b030-4b02-9305-427ff4dd4e0b">▶️</a> 10 - Committee Reports - Discussion - Committee Chairs.</h2> <h3><a href="/sharing/?token=25865e3b-410e-48f3-ab1a-d2c7d727aa04">▶️</a> 10.1 - Finance and Audit F&A Committee Report - Discussion - F&A Chair</h3> <ul> <li style="font-weight: 400;" aria-level="1">No significant issues or remarkable findings were reported.</li> </ul> <h4><a href="/sharing/?token=ae7b0209-7fe3-4353-93ff-e03914268c53">▶️</a> 10.1.1 - Acceptance of 2024 System and Organization Control Audit Report - Vote - Chair</h4> <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/22/10-1-1-acceptance-of-2024-system-and-organization-control-audit-report.pdf">10.1.1 Acceptance of 2024 System and Organization Control Audit Report</a> <ul> <li style="font-weight: 400;" aria-level="1">Motion for the board to accept the audit report as presented by Weaver and Tidwell passed unanimously with no abstentions. </li> <ul> <li style="font-weight: 400;" aria-level="2">The audit is an annual requirement for ERCOT.</li> <li style="font-weight: 400;" aria-level="2">The audit opinion received from Weaver and Tidwell was unmodified, indicating a clean opinion.</li> <li style="font-weight: 400;" aria-level="2">The audit highlighted enhancements in the control environment due to ongoing automation in the Treasury Management System.</li> </ul> </ul> <h3><a href="/sharing/?token=c2ef1425-ed6b-4f02-a484-4612213600af">▶️</a> 10.2 - Human Resources and Governance HR&G Committee Report - Discussion - HR&G Chair</h3> <ul> <li style="font-weight: 400;" aria-level="1">No voting items came out of the general sessions of the HR&G Committee.</li> <li style="font-weight: 400;" aria-level="1">130 employees onboarded through October.</li> <li style="font-weight: 400;" aria-level="1">Currently, ERCOT is 57 headcount below target.</li> <li style="font-weight: 400;" aria-level="1">Committee discussed trends in employee departures and HR's steps in the recruiting process.</li> <li style="font-weight: 400;" aria-level="1">Reviewed several charter items concerning ERCOT's corporate documents.</li> <li style="font-weight: 400;" aria-level="1">Heard from Gilbert Hughes about ERCOT's communication activities aimed at informing and educating constituents.</li> </ul> <h3><a href="/sharing/?token=d5ffb669-7b57-498e-9ebe-004d4c8d4859">▶️</a> 10.3 - Reliability and Markets R&M Committee Report - Discussion - R&M Chair</h3> <h4><a href="/sharing/?token=c292197a-a18e-4bb7-a03e-4eecc5650e4c">▶️</a> 10.3.1 - AEPSC Brownsville Area Improvements Transmission Project - Vote - Chair</h4> <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/02/10-3-1-aepsc-brownsville-area-improvements-transmission-project-revised.pdf">10.3.1 AEPSC Brownsville Area Improvements Transmission Project - REVISED</a> <ul> <li style="font-weight: 400;" aria-level="1">Motion to endorse the need for the Tier 1 AEPSC Brownsville Area Improvements Project Option 2A as recommended by TAC, passed unanimously with no abstentions.</li> <ul> <li style="font-weight: 400;" aria-level="2">Presentation of a project by American Electric Power Service Corporation to solve thermal and voltage violations in the Brownsville area, Cameron County.</li> <li style="font-weight: 400;" aria-level="2">The project is labeled as a Tier 1 improvement for the Brownsville Area under Transmission Regional Planning Group Project Option 2A.</li> <li style="font-weight: 400;" aria-level="2">Recommendation by the R&M Committee for the board to endorse the project.</li> <li style="font-weight: 400;" aria-level="2">ERCOT staff's independent review supports this project based on NERC and ERCOT reliability planning criteria.</li> <li style="font-weight: 400;" aria-level="2">The Technical Advisory Committee has endorsed the project.</li> </ul> </ul> <h4><a href="/sharing/?token=bc888842-ba43-4b99-9661-3db4edb8273f">▶️</a> 10.3.2 - Oncor Delaware Basin Stages 3 and 4 Project - Vote - Chair</h4> <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/02/10-3-2-oncor-delaware-basin-stages-3-and-4-project-revised.pdf">10.3.2 Oncor Delaware Basin Stages 3 and 4 Project - REVISED</a> <ul> <li style="font-weight: 400;" aria-level="1">Motion to endorse the need for the Tier 1 Oncor Delaware Basin Stages 3 and 4 Regional Planning Group project passed unanimously with no abstentions.</li> <ul> <li style="font-weight: 400;" aria-level="2">ERCOT staff conducted independent review of the project.</li> <li style="font-weight: 400;" aria-level="2">Technical Advisory Committee voted to endorse the project based on NERC and ERCOT reliability planning criteria.</li> </ul> </ul> <h4><a href="/sharing/?token=a92b96cd-0f40-44d1-95c9-12f1afbd6a5c">▶️</a> 10.3.3 - Real-Time Market Price Correction – Incomplete Weekly Database Load - </h4> <h4>Vote - Chair</h4> <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/22/10-3-3-real-time-market-price-correction-incomplete-weekly-database-load.pdf">10.3.3 Real-Time Market Price Correction - Incomplete Weekly Database Load</a> <ul> <li style="font-weight: 400;" aria-level="1">Motion for the board to 1) Determine that the real time locational marginal prices, the real time settlement point prices and the real time price for energy metered for resources as well as the real time price for energy metered for settlement only generators for operating day November 1, 2024 were affected by the incomplete weekly database load update and 2) direct the ERCOT staff to implement the appropriate price corrections pursuant to protocol section 6.3, passed unanimously with no abstentions.</li> </ul> <h3><a href="/sharing/?token=8e94cba3-30d2-4306-a22f-9980979d7340">▶️</a> 10.4 - Technology and Security T&S Committee Report Discussion - T&S Chair</h3> <ul> <li style="font-weight: 400;" aria-level="1">The Technology and Security Committee met to review projects and technology, including RTC.</li> <li style="font-weight: 400;" aria-level="1">A special focus was on nuclear technologies presented by Joseph Miller from BWXT, discussing advanced nuclear, small modular, and micro modular reactors.</li> <li style="font-weight: 400;" aria-level="1">No pending implementations of these nuclear technologies exist in the US; the first in North America is expected to be in Canada.</li> <li style="font-weight: 400;" aria-level="1">An update on the Nuclear Reactor Working Group's report was presented by Commissioner Glotfelty.</li> <li style="font-weight: 400;" aria-level="1">The report contains 11 recommendations and is a summary with substantial background work.</li> <li style="font-weight: 400;" aria-level="1">Further developments from the Nuclear Reactor Working Group are anticipated over the next year or two.</li> </ul> <h2><a href="/sharing/?token=f3c7507a-45de-463c-aaaa-cf032bc0b9b3">▶️</a> 11 - Other Business - Discussion - Chair</h2> <ul> <li style="font-weight: 400;" aria-level="1">Acknowledgment of Betty Day, retiring Vice President of Security and Compliance and Chief Compliance Officer for ERCOT.</li> <li style="font-weight: 400;" aria-level="1">Commissioner Lori Cobos announced her upcoming departure from the PUC at the year's end and expressed gratitude for her time on the ERCOT board.</li> </ul> <h2><a href="/sharing/?token=1f56129b-b282-4fc9-b5c0-8fc1ebe6ff5f">▶️</a> 12 - Other Business - Discussion - Chair</h2> <ul> <li style="font-weight: 400;" aria-level="1">Three voting items were discussed during the executive session</li> <li style="font-weight: 400;" aria-level="1">Board approval was sought for two personnel matters discussed in executive session.</li> <li style="font-weight: 400;" aria-level="1">Motion for approval of personnel matters was approved unanimously. </li> <li style="font-weight: 400;" aria-level="1">Board approval was sought for a contract matter discussed in the executive session under agenda item ES 2.2.2 and 2.2.3.</li> <li style="font-weight: 400;" aria-level="1">Motion for approval of the contract matter was moved by Julie, seconded by Peggy, and approved with no opposition.</li> </ul> <h3><a href="/sharing/?token=a15eca77-a54a-49ab-b3de-a61cae00b806">▶️</a> 12.1 - Selection of 2025 Independent System and Organization Control Auditor - Vote - Chair</h3> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve Weaver and Tidwell, LP as the 2025 independent SOC control auditor was approved unanimously with all in favor and no oppositions or abstentions</li> </ul> <h2><a href="/sharing/?token=74998035-105a-46f7-a2f5-c9de1a0c2f29">▶️</a> 13 - Adjournment - Chair</h2> <ul> <li style="font-weight: 400;" aria-level="1"> Meeting adjourned.</li> </ul>