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Meeting Summary - 04/08/2025 Board of Directors Meeting

Grid Monitor AI
04/09/2025

<div class="news-image-container"><img src="/storage/docs/2025/04/20250408BoardPhot.png" /></div> <h3><a href="/sharing/?token=7b24ce64-1b16-4926-8c49-259e81d0b5ce">▶️</a>1 - Call General Session to Order</h3> <ul> <li style="font-weight: 400;" aria-level="1">The meeting of the ERCOT Board of Directors was officially called to order and is being webcast live.</li> <li style="font-weight: 400;" aria-level="1">PUC Chair, Thomas Gleason, called an open meeting of the Public Utility Commission of Texas to order.</li> <li style="font-weight: 400;" aria-level="1">Antitrust admonition and security map included with meeting materials.</li> <li style="font-weight: 400;" aria-level="1">Recognition of former Board Member Carlos Aguilar, who resigned to pursue other opportunities.</li> <li style="font-weight: 400;" aria-level="1">Carlos Aguilar was one of the first two Board members under the new SB2 framework.</li> <li style="font-weight: 400;" aria-level="1">Acknowledgment of Aguilar's contributions to the Board and well-wishes for his future endeavors.</li> <li style="font-weight: 400;" aria-level="1">Board Selection Committee notified about the vacancy, with plans to begin the selection process.</li> <li style="font-weight: 400;" aria-level="1">Future Board meetings may extend to two days as Reliability and Markets committee matters move to the full board.</li> <li style="font-weight: 400;" aria-level="1">Discussion items may shift between days, but voting items are expected to remain on the designated day for public certainty.</li> </ul> <h3><a href="/sharing/?token=a29cf2b1-60c4-449d-85a6-319bd73b7f4f">▶️</a>2 - Notice of Public Comment, if Any</h3> <ul> <li style="font-weight: 400;" aria-level="1">The meeting agenda was publicly posted on 03/31/2025.</li> <li style="font-weight: 400;" aria-level="1">Instructions were provided for the public to comment in person.</li> <li style="font-weight: 400;" aria-level="1">No one has expressed interest in commenting at the meeting.</li> </ul> <h3><a href="/sharing/?token=a42549d2-96b7-4608-8cfd-8b16cb136c57">▶️</a>3 - Dissolve Establishment and Appointment of Reliability and Markets (R&M) Committee</h3> <ul> <li style="font-weight: 400;" aria-level="1">Proposal to move the jurisdiction of the Reliability and Markets (R&M) Committee back to the full board for direct participation in policy matters.</li> <li style="font-weight: 400;" aria-level="1">The focus is on improved engagement in operations, planning, markets, and ERCOT's core mission.</li> <li style="font-weight: 400;" aria-level="1">Motion made to dissolve the establishment and appointment of the R&M Committee.</li> <li style="font-weight: 400;" aria-level="1">John moved the motion, and Peggy seconded it.</li> <li style="font-weight: 400;" aria-level="1">The motion was approved unanimously with no opposition or abstentions.</li> </ul> <h3><a href="/sharing/?token=43356ad1-f0db-4734-ac6e-6d76e4e5a5f2">▶️</a>4 - February 3, 2025 Reliability and Markets Committee General Session Meeting Minutes</h3> <ul> <li style="font-weight: 400;" aria-level="1">The committee reviewed the draft of the meeting minutes from February 3, 2025.</li> <li style="font-weight: 400;" aria-level="1">No corrections or objections were raised regarding the meeting minutes.</li> <li style="font-weight: 400;" aria-level="1">The meeting minutes for the February 3, 2025 session are considered approved according to Robert's rules of order.</li> <li style="font-weight: 400;" aria-level="1">The meeting minutes approval was discussed despite the committee no longer existing.</li> </ul> <h3><a href="/sharing/?token=623dd3c0-0d34-402e-b9b3-abb8c326902c">▶️</a>5 - Commercial Markets</h3> <h4><a href="/sharing/?token=98a0582a-14ec-44f3-9f67-997d4622c692">▶️</a>5.1 - Recommendation regarding Real-Time Market Price Correction – Incorrect Resource Telemetry MW Values When QSE Sends Suspect Quality Telemetry</h4> <a href="/storage/docs/2025/04/5.1-Rec-re-Real-Time-Market-Price-Correction-Incorrect-Resource-Telemetry-MW-Values-When-QSE-Sends-Suspect-Quality-Telemetry.pdf">5.1-Rec-re-Real-Time-Market-Price-Correction-Incorrect-Resource-Telemetry-MW-Values-When-QSE-Sends-Suspect-Quality-Telemetry.pdf</a> <ul> <li style="font-weight: 400;" aria-level="1">Background and context provided on the issue related to incorrect telemetry MW values affecting real-time market prices.</li> <li style="font-weight: 400;" aria-level="1">The defect in the energy management system introduced a static value substitution for telemetry rather than using the last known good value.</li> <li style="font-weight: 400;" aria-level="1">Impact on prices and dispatch identified when suspect telemetry was flagged, with pricing spiking significantly on September 5, 2024.</li> <li style="font-weight: 400;" aria-level="1">Investigation led to discovery of the software defect and implementation of a fix on September 11, 2024.</li> <li style="font-weight: 400;" aria-level="1">Price corrections requested for operating days from August 12 to September 11 due to market significance criteria.</li> <li style="font-weight: 400;" aria-level="1">Market impact assessment revealed 27 days met criteria with a total impact to statement charges of $3,324,370.</li> <li style="font-weight: 400;" aria-level="1">New refined methodology introduced to avoid unwarranted payments, reducing total costs to consumers.</li> <li style="font-weight: 400;" aria-level="1">Clarification provided that enhanced methodology does not require protocol changes.</li> <li style="font-weight: 400;" aria-level="1">The Board approved the recommendation for price corrections after a motion was passed.</li> </ul> <h4><a href="/sharing/?token=be4f2822-1906-4d1c-8032-a775e9fd6b7e">▶️</a>5.2 - Independent Market Monitor (IMM) Report</h4> <a href="/storage/docs/2025/04/5.2-Independent-Market-Monitor-IMM-Report_f9wcm0djpczy.pdf">5.2-Independent-Market-Monitor-IMM-Report.pdf</a> <ul> <li style="font-weight: 400;" aria-level="1">Jeff McDonald, IMM Director, discussed focusing on forward-looking perspectives on ERCOT market design challenges.</li> <li style="font-weight: 400;" aria-level="1">Highlighted the need for deliberate actions in market design to achieve resource adequacy and manage significant projected load growth over the next five years.</li> <li style="font-weight: 400;" aria-level="1">Discussed concerns over short-term and medium-term resource adequacy, with market outcomes not signaling new investments.</li> <li style="font-weight: 400;" aria-level="1">Emphasized that the market needs to experience shortages to provide proper price signals for new investments.</li> <li style="font-weight: 400;" aria-level="1">Noted disconnect between the value of loss load for planning ($35,000) and its operational equivalent ($5,000) affecting revenue signals for investments.</li> <li style="font-weight: 400;" aria-level="1">Discussed market design issues with emphasis on the need for well-defined products to provide appropriate revenue streams.</li> <li style="font-weight: 400;" aria-level="1">Highlighted the potential for excess costs by injecting more revenue into the market without a targeted approach.</li> <li style="font-weight: 400;" aria-level="1">Mentioned the different revenue requirements for existing resources versus new investment to prevent retirement and incentivize new generation respectively.</li> <li style="font-weight: 400;" aria-level="1">Referenced using Effective Load Carrying Capacity (ELCC) to rationalize contributions of varying resource types in planning, especially concerning intermittent resources.</li> <li style="font-weight: 400;" aria-level="1">Confirmed support for ELCC in valuing the capacity of renewable and intermittent resources.</li> </ul> <h4><a href="/sharing/?token=ac888a7a-8f3c-4ad8-893d-864132f1f9f9">▶️</a>5.3 - Commercial Markets Update</h4> <a href="/storage/docs/2025/04/5.3-Commercial-Markets-Update_a0cpezzacr4w.pdf">5.3-Commercial-Markets-Update.pdf</a> <h4>Residential Demand Response Initiative</h4> <ul> <li style="font-weight: 400;" aria-level="1">Introduction of a new initiative focused on residential demand response.</li> <li style="font-weight: 400;" aria-level="1">Importance of demand response discussed in prior meetings.</li> <li style="font-weight: 400;" aria-level="1">Collaboration with commission staff and stakeholders has commenced.</li> <li style="font-weight: 400;" aria-level="1">Focus on smart devices such as thermostats and water heaters.</li> <li style="font-weight: 400;" aria-level="1">Goal to establish program rules for 2025.</li> <li style="font-weight: 400;" aria-level="1">Implementation planned for 2027.</li> </ul> <h4>Credit Policy Changes</h4> <ul> <li style="font-weight: 400;" aria-level="1">Policy items developed to modify formulas for aggregate liability.</li> <li style="font-weight: 400;" aria-level="1">Introduction of NPRR1277 to codify policy changes.</li> <li style="font-weight: 400;" aria-level="1">Aim to address overcollateralization during price spikes.</li> <li style="font-weight: 400;" aria-level="1">Broad consensus reached on these changes.</li> <li style="font-weight: 400;" aria-level="1">Efforts aim to mitigate credit risk to the organization.</li> </ul> <h4>February Winter Weather Event & Pricing</h4> <ul> <li style="font-weight: 400;" aria-level="1">Discussion of pricing during February's winter cold snap.</li> <li style="font-weight: 400;" aria-level="1">Day-ahead and real-time pricing impacts differed.</li> <li style="font-weight: 400;" aria-level="1">Highest day-ahead prices occurred on Thursday with over $800.</li> <li style="font-weight: 400;" aria-level="1">Firm fuel supply service activated during the event.</li> <li style="font-weight: 400;" aria-level="1">Highlighted importance of strong market signals reducing RUC usage.</li> <li style="font-weight: 400;" aria-level="1">Congestion analysis showed significant differences between day-ahead and real-time.</li> </ul> <h4>Congestion Variance</h4> <ul> <li style="font-weight: 400;" aria-level="1">Significant variance between day-ahead and real-time congestion noted.</li> <li style="font-weight: 400;" aria-level="1">Atypical variance during the February event, especially on the 19th.</li> </ul> <h4>Structural Changes in Congestion Drivers</h4> <ul> <li style="font-weight: 400;" aria-level="1">Increased congestion driving RUC activities more than historical periods.</li> <li style="font-weight: 400;" aria-level="1">RMR resources addressing market constraints.</li> </ul> <h3>Conclusion</h3> No additional questions or topics raised by Keith Collins. <h4><a href="/sharing/?token=292b5502-8f63-4cba-8da8-062d4da9c05e">▶️</a>5.3.1 - Real-Time Co-optimization Update</h4> <h5><a href="/storage/docs/2025/04/5.3.1-Real-Time-Co-optimization-Update-REVISED.pdf">5.3.1-Real-Time-Co-optimization-Update-REVISED.pdf</a></h5> <ul> <li style="font-weight: 400;" aria-level="1">Update presented by Matt Mereness from ERCOT regarding stakeholder readiness for RTC.</li> <li style="font-weight: 400;" aria-level="1">Focus on cost of market reconstructions and implications of AS demand curve absence.</li> <li style="font-weight: 400;" aria-level="1">Primary focus areas: general program update and explanation of three NPRRs (1268, 1269, 1270).</li> <li style="font-weight: 400;" aria-level="1">Discussion on state of charge for batteries in current market transitioning to RTC, led by Jeff Bello under Dan Woodfin.</li> <li style="font-weight: 400;" aria-level="1">Program milestones: Major internal test achieved in primary systems including energy management, market management, settlements, and billing.</li> <li style="font-weight: 400;" aria-level="1">Market readiness update showed strong engagement with 107 QSEs with most ready for May trials.</li> <li style="font-weight: 400;" aria-level="1">New training initiatives for operators and market participants, focusing on demand response and market changes.</li> <li style="font-weight: 400;" aria-level="1">ERCOT implementing a production freeze to minimize changes before go-live.</li> <li style="font-weight: 400;" aria-level="1">NPRR discussions, emphasizing interconnected changes; trials set to focus on real-time co-optimization starting May.</li> <li style="font-weight: 400;" aria-level="1">Specific NPRR discussions: NPRR1268 on AS demand curves improvements, NPRR1270 on ancillary services qualification, and NPRR1269 on various policy changes.</li> <li style="font-weight: 400;" aria-level="1">ERCOT proposes a $15 floor for AS demand curves to enhance reliability and ensure appropriate market signals.</li> <li style="font-weight: 400;" aria-level="1">Concerns and comments from stakeholders around AS demand curve offer floors with varying opinions on pricing.</li> <li style="font-weight: 400;" aria-level="1">Questions addressed about trial timelines related to NPRRs approval.</li> <li style="font-weight: 400;" aria-level="1">Conclusion on the reliability significance of implementing AS demand curve floor.</li> </ul> <h3><a href="/sharing/?token=18062ba5-7996-4fac-b165-3ed224305b10">▶️</a>6 - Consent Agenda</h3> <h4><a href="/sharing/?token=4c7ad1e4-45dd-4c6a-8e95-e72295ba4d63">▶️</a>6.1 - Unopposed Revision Requests Recommended by TAC for Approval</h4> <a href="/storage/docs/2025/04/6.1-Unopposed-Revision-Requests-Recommended-by-TAC-for-Approval.pdf">6.1-Unopposed-Revision-Requests-Recommended-by-TAC-for-Approval.pdf</a> <ul> <li style="font-weight: 400;" aria-level="1">There are 12 revision requests on the consent agenda.</li> <li style="font-weight: 400;" aria-level="1">Some of these requests were discussed in a prior board meeting.</li> <li style="font-weight: 400;" aria-level="1">Several requests have budgetary and FTE (Full-Time Equivalent) impacts.</li> <li style="font-weight: 400;" aria-level="1">NPRR1234 concerning large loads has a budget impact between $600,000 and $800,000, along with 10.7 FTE impact across multiple divisions.</li> <li style="font-weight: 400;" aria-level="1">Another request, NPRR1250, has a budget impact between $25,000 and $50,000.</li> <li style="font-weight: 400;" aria-level="1">NPRR1268 and NPRR1270 do not have budgetary impacts; they are related to RTC.</li> <li style="font-weight: 400;" aria-level="1">SCR829 and VCMRR042 have budget impacts between $100,000 and $200,000.</li> <li style="font-weight: 400;" aria-level="1">The consent agenda was unanimously approved with no questions, objections or abstentions.</li> </ul> <h3><a href="/sharing/?token=51e2c9b2-38e3-4e10-8e95-77f52e2f0839">▶️</a>7 - General Session Meeting Minutes</h3> <h4><a href="/sharing/?token=268a9392-f639-4303-82ab-64557e410e02">▶️</a>7.1 - February 4, 2025 General Session Meeting Minutes</h4> <a href="https://www.ercot.com/files/docs/2025/04/01/7.1-February-4-2025-Board-General-Session-Meeting-Minutes.pdf">7.1 February 4, 2025 Board General Session Meeting Minutes</a> <ul> <li style="font-weight: 400;" aria-level="1">Approval of the February 4, 2025 meeting minutes.</li> <li style="font-weight: 400;" aria-level="1">No corrections or amendments were made to the minutes.</li> <li style="font-weight: 400;" aria-level="1">Minutes were approved unanimously by the board.</li> </ul> <h4><a href="/sharing/?token=1b6c04c2-8a99-4eef-9abd-c09e23c6d725">▶️</a>7.2 - February 25, 2025 General Session Special Meeting Minutes</h4> <a href="https://www.ercot.com/files/docs/2025/04/01/7.2-February-25-2025-Special-Board-General-Session-Meeting-Minutes.pdf">7.2 February 25, 2025 Special Board General Session Meeting Minutes</a> <ul> <li style="font-weight: 400;" aria-level="1">Agenda item 7.2 discussed the approval of the general session special meeting minutes from February 25, 2025.</li> <li style="font-weight: 400;" aria-level="1">Drafts of the meeting minutes were included in the meeting materials.</li> <li style="font-weight: 400;" aria-level="1">Motion to approve both the February 4 and February 25, 2025, general session meeting minutes carries unanimously.</li> </ul> <h3><a href="/sharing/?token=25bc301f-ace5-4aa3-9d66-389fced33171">▶️</a>8 - CEO Update</h3> <a href="/storage/docs/2025/04/8-CEO-Update.pdf">8-CEO-Update.pdf</a> <ul> <li style="font-weight: 400;" aria-level="1">Seasonal Update</li> <ul> <li style="font-weight: 400;" aria-level="2">Current status: Spring shoulder month.</li> <li style="font-weight: 400;" aria-level="2">About 38,800 MW of resources are out for maintenance.</li> <li style="font-weight: 400;" aria-level="2">Most outages are planned, with some forced outages.</li> <li style="font-weight: 400;" aria-level="2">Limited issues with scheduled maintenance outages.</li> </ul> <li style="font-weight: 400;" aria-level="1">Advanced Action Notices (AANs)</li> <ul> <li style="font-weight: 400;" aria-level="2">Used during shoulder months to alert possible grid condition changes.</li> <li style="font-weight: 400;" aria-level="2">Allows adjustments to outage schedules and system configurations.</li> <li style="font-weight: 400;" aria-level="2">The current season has seen fewer AANs compared to past springs.</li> </ul> <li style="font-weight: 400;" aria-level="1">Operating Condition Notices (OCNs)</li> <ul> <li style="font-weight: 400;" aria-level="2">Issued throughout the year when certain threshold criteria are met.</li> <li style="font-weight: 400;" aria-level="2">Provides early notice of potential actions due to conditions like weather or wildfire risks.</li> </ul> <li style="font-weight: 400;" aria-level="1">Braunig Unit 3 Update</li> <ul> <li style="font-weight: 400;" aria-level="2">Significant maintenance underway with inspection findings.</li> <li style="font-weight: 400;" aria-level="2">Boiler superheater header needs replacement.</li> <li style="font-weight: 400;" aria-level="2">Incremental repair cost estimated at $2,700,000.</li> <li style="font-weight: 400;" aria-level="2">Potential delays of up to 6-12 months for repairs.</li> </ul> <li style="font-weight: 400;" aria-level="1">Lifecycle Mobile Generation</li> <ul> <li style="font-weight: 400;" aria-level="2">Relocation from Houston to San Antonio to address transmission constraints.</li> <li style="font-weight: 400;" aria-level="2">Air permit issues have been resolved with TCEQ.</li> <li style="font-weight: 400;" aria-level="2">Final contract negotiations underway with CPS and Lifecycle.</li> <li style="font-weight: 400;" aria-level="2">Aim to have units operational by summer peak.</li> </ul> <li style="font-weight: 400;" aria-level="1">External Events and Initiatives</li> <ul> <li style="font-weight: 400;" aria-level="2">Upcoming Innovation Summit on May 6 with a focus on ERCOT issues.</li> <li style="font-weight: 400;" aria-level="2">Introduction of annual report: 'Advancing Reliability for 2024'.</li> <li style="font-weight: 400;" aria-level="2">Acknowledgement of successful NOGRR245 process and the collaborative effort involved.</li> </ul> </ul> <h4><a href="/sharing/?token=5ee4e0cf-1ff5-4ebf-bedb-39dec1ad9423">▶️</a>8.1 - Long-Term Load Forecast Update (2025–2031) and Methodology Changes</h4> <a href="/storage/docs/2025/04/8.1-Long-Term-Load-Forecast-Update-2025-2031-and-Methodology-Changes.pdf">8.1-Long-Term-Load-Forecast-Update-2025-2031-and-Methodology-Changes.pdf</a> <ul> <li style="font-weight: 400;" aria-level="1">The long-term forecast update covers 2025 to 2031 with methodology changes.</li> <li style="font-weight: 400;" aria-level="1">Discussion on planning guide and protocol requirements for using the forecast.</li> <li style="font-weight: 400;" aria-level="1">Treatment of data center load growth and ERCOT adjusted load forecast methodology was discussed.</li> <li style="font-weight: 400;" aria-level="1">Discussion on energy forecast used for ERCOT system administration fee.</li> <li style="font-weight: 400;" aria-level="1">House Bill 5066 implications for the TSP-provided load forecast in evaluating transmission facility needs were considered.</li> <li style="font-weight: 400;" aria-level="1">Nodal protocol and planning guide changes allowing TSPs to include load forecasts without interconnection agreements, while adhering to PUC rules, were noted.</li> <li style="font-weight: 400;" aria-level="1">ERCOT's reliance on the adjusted load forecast is crucial for resource adequacy reports.</li> <li style="font-weight: 400;" aria-level="1">Comparison of the 2024 and 2025 TSP load forecasts with a significant increase seen in officer letter loads.</li> <li style="font-weight: 400;" aria-level="1">Adjustments in ERCOT load forecasts include service delay and load reduction percentages to improve accuracy.</li> <li style="font-weight: 400;" aria-level="1">The adjusted load forecast aligns with planning reserve margin calculations and regional transmission plan values.</li> <li style="font-weight: 400;" aria-level="1">Resource adequacy and annual reports on electric generation resources and load resources are pivotal in planning.</li> <li style="font-weight: 400;" aria-level="1">Modifications to ERCOT load forecasts aim to enhance transmission planning and resource outage scheduling.</li> <li style="font-weight: 400;" aria-level="1">The methodology for updated load forecasts considers vehicle electrification, rooftop photovoltaics, and TSP information.</li> <li style="font-weight: 400;" aria-level="1">Implications for generation capacity additions needed in response to load growth were illustrated.</li> <li style="font-weight: 400;" aria-level="1">Discussions on load forecast adjustments for different TSP service territories and load types were introduced.</li> <li style="font-weight: 400;" aria-level="1">The process is currently an annual forecast update with flexibility for adjustment based on significant changes.</li> <li style="font-weight: 400;" aria-level="1">ERCOT plans to adapt load forecasting and the system administration fee rate setting to ensure reliability and financial planning.</li> <li style="font-weight: 400;" aria-level="1">Quality and accuracy of TSPs data submissions are vital in forecasting efforts.</li> </ul> <h3><a href="/sharing/?token=2cfd34e8-349d-49ba-96c2-00b3b301055a">▶️</a>9 - Update on Texas Economy</h3> <a href="/storage/docs/2025/04/9-Update-on-Texas-Economy.pdf">9-Update-on-Texas-Economy.pdf</a> <ul> <li style="font-weight: 400;" aria-level="1">The Texas economy is likely slowing, with pessimistic outlooks. Despite the robust labor market in early 2025, warning signs from Dallas Fed surveys indicate a potential further slowdown.</li> <li style="font-weight: 400;" aria-level="1">Tariffs are expected to raise prices, reducing consumption and investment, with additional negative impacts anticipated from decreased immigration and federal spending cuts.</li> <li style="font-weight: 400;" aria-level="1">Growth in Texas job sectors like finance, construction, and energy might slow due to various disruptions, higher building costs, and falling oil prices respectively.</li> <li style="font-weight: 400;" aria-level="1">Texas maintains a high migration rate, mainly from international sources, supporting labor force and economic growth.</li> <li style="font-weight: 400;" aria-level="1">A significant construction boom, particularly in the manufacturing sector, has included large investments in LNG terminals and semiconductor plants, partly driven by federal incentives.</li> <li style="font-weight: 400;" aria-level="1">Record oil production continues with improved efficiency, allowing higher output with fewer rigs, but lower oil prices might curb further drilling.</li> <li style="font-weight: 400;" aria-level="1">Texas electricity demand grows faster than the national average, driven by population and economic growth, as well as hot weather and electrification needs.</li> <li style="font-weight: 400;" aria-level="1">Tariffs pose major risks, with surveys indicating increased costs and uncertainty, potentially leading to project delays and lower demand.</li> <li style="font-weight: 400;" aria-level="1">The overall net impact of current economic conditions, tariffs, deregulation, and tax cuts predicts a negative outlook for Texas, particularly due to the global energy market dynamics.</li> </ul> <h3><a href="/sharing/?token=e40f2a00-19c2-4fa3-a502-34d6ee4a1f94">▶️</a>10 - Reliability Monitor Update</h3> <a href="/storage/docs/2025/04/10-Reliability-Monitor-Update.pdf">10-Reliability-Monitor-Update.pdf</a> <ul> <li style="font-weight: 400;" aria-level="1">ERCOT serves as the reliability monitor, analyzing state reliability compliance issues for ERCOT market participants and ERCOT Inc.</li> <li style="font-weight: 400;" aria-level="1">There has been an increase in the volume of incident reviews and matters referred to the PUC for enforcement.</li> <li style="font-weight: 400;" aria-level="1">ERCOT is considering a streamlined review process to handle the backlog of cases efficiently.</li> <li style="font-weight: 400;" aria-level="1">ERCOT was designated as the reliability monitor in November 2022, taking over from Texas RE.</li> <li style="font-weight: 400;" aria-level="1">Incident reviews are forwarded to the PUC for enforcement, with ERCOT providing support during the enforcement process.</li> <li style="font-weight: 400;" aria-level="1">The intake of cases nearly averages 12 matters per month while disposal is less than five, causing an increasing backlog.</li> <li style="font-weight: 400;" aria-level="1">There are plans to implement a more streamlined process for lower-risk issues in collaboration with the PUC.</li> <li style="font-weight: 400;" aria-level="1">Since last April, ERCOT has referred 75 analyses to the PUC for enforcement, averaging less than 12 referrals per month.</li> <li style="font-weight: 400;" aria-level="1">The budget for the upcoming year has increased slightly primarily due to an increase in headcount.</li> <li style="font-weight: 400;" aria-level="1">ERCOT maintains a web page inviting market participants to self-report compliance issues.</li> <li style="font-weight: 400;" aria-level="1">There is an emphasis on the large number of potential violations compared to the relatively low number of actual incident reviews, indicating overall strong grid performance.</li> </ul> <h3><a href="/sharing/?token=37d78325-3b96-4b73-975c-4d554f48e75a">▶️</a>11 - ERCOT Lancium Patent License Agreement Disclosure</h3> <a href="/storage/docs/2025/04/11-ERCOT-Lancium-Patent-License-Agreement-Disclosure.pdf">11-ERCOT-Lancium-Patent-License-Agreement-Disclosure.pdf</a> <ul> <li style="font-weight: 400;" aria-level="1">Disclosure of ERCOT's intention to enter into a patent license agreement with Lancium.</li> <li style="font-weight: 400;" aria-level="1">The issue has been discussed in the stakeholder process for several years.</li> <li style="font-weight: 400;" aria-level="1">The patents in question could impact ERCOT's CLR program.</li> <li style="font-weight: 400;" aria-level="1">Lancium's portfolio of patents might act as a barrier for market participants in the CLR program.</li> <li style="font-weight: 400;" aria-level="1">An amicable resolution with Lancium results in a no-cost license agreement for ERCOT.</li> <li style="font-weight: 400;" aria-level="1">ERCOT can sublicense this agreement to any participant wanting to engage as a CLR.</li> <li style="font-weight: 400;" aria-level="1">The agreement will help remove barriers to entry for new participants in the CLR program.</li> <li style="font-weight: 400;" aria-level="1">NPRR1262 is pending, related to this matter.</li> <li style="font-weight: 400;" aria-level="1">The resolution is specific to the ERCOT region, with the license applicable only within this area.</li> <li style="font-weight: 400;" aria-level="1">ERCOT aims to execute the license agreement after discussions with the PRS committee.</li> <li style="font-weight: 400;" aria-level="1">No competitive advantage or sensitive information will flow back to Lancium from the license.</li> <li style="font-weight: 400;" aria-level="1">The agreement aims to foster growth in the Texas market by removing barriers for CLR participation.</li> </ul> <h3><a href="/sharing/?token=d29ba656-1788-4f09-9934-9ab18e096e23">▶️</a>12 - TAC Report</h3> <a href="/storage/docs/2025/04/12-TAC-Report.pdf">12-TAC-Report.pdf</a> <h4><a href="/sharing/?token=e723492b-5a18-4186-b1d0-232c4095f02e">▶️</a>12.1 - Non-Unanimous and Other Selected Revision Requests Recommended by TAC for Approval</h4> <a href="/storage/docs/2025/04/12.1-Non-Unanimous-Revision-Requests-Recommended-by-TAC-for-Approval.pdf">12.1-Non-Unanimous-Revision-Requests-Recommended-by-TAC-for-Approval.pdf</a> <ul> <li style="font-weight: 400;" aria-level="1">TAC Chair Caitlin Smith provided updates on the February and March TAC meetings where 14 revision requests were recommended for approval, two of which had opposing votes.</li> <li style="font-weight: 400;" aria-level="1">Discussion on the rebranding of "goals" to "strategic objectives" with an aim to make them more evergreen and actionable.</li> <li style="font-weight: 400;" aria-level="1">The introduction and significance of NPRR1234 and PGRR115 were emphasized as monumental components of the large flexible load task force's work.</li> <li style="font-weight: 400;" aria-level="1">Discussion on focusing more on operational issues and rebranding of large flexible load task force to a large load working group, adding a hyperscaler or data center subgroup.</li> <li style="font-weight: 400;" aria-level="1">ERCOT Board stakeholder engagement preparation for June with plans to present perspectives on transmission issues from various segments.</li> <li style="font-weight: 400;" aria-level="1">Proposal to expand segment membership terms to include new definitions for industrial loads and discussing potential changes to the definitions for inverter based resources and transmission & distribution entities.</li> <li style="font-weight: 400;" aria-level="1">Ongoing discussions on the market design framework and the restructuring of large load interconnection group.</li> <li style="font-weight: 400;" aria-level="1">Revisions and updates to outage coordination and outage capacity calculation methodologies.</li> <li style="font-weight: 400;" aria-level="1">NPRR1190 was outlined with the conflict over high dispatch limit override provision, emphasizing historical context, financial implications, and the need for a compromise.</li> <li style="font-weight: 400;" aria-level="1">Mention of Matt Mereness' effective project management on real-time co-optimization and positive stakeholder engagement practices.</li> <li style="font-weight: 400;" aria-level="1">Focus on ensuring operational efficiency and aligning TAC and subcommittee goals with board strategic objectives.</li> </ul> <h5><a href="/sharing/?token=11ea6d9c-cbd1-4e27-9b23-bd2c490c4f5d">▶️</a>12.1.1 - NPRR1190, High Dispatch Limit Override Provision for Increased Load Serving Entity Costs</h5> <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve NPRR1190 as recommended by TAC with alll in favor except for one opposing vote from Ben Barkley (OPUC)</li> <li style="font-weight: 400;" aria-level="1">Motion moved to discuss NPRR1269, focusing on RTC+B, three parameters policy issues.</li> <li style="font-weight: 400;" aria-level="1">Description of NPRR1269 included discussions of ASDC floor set at $15 per megawatt curve.</li> <li style="font-weight: 400;" aria-level="1">There was contention over the ASDC floor, though eventually extended to real-time and day-ahead procurement.</li> <li style="font-weight: 400;" aria-level="1">Purpose: Ensure full ancillary service requirement met more frequently and support reliability.</li> <li style="font-weight: 400;" aria-level="1">Approval: Supported by TAC but met with opposition, especially from the consumer segment and IRAP segment.</li> <li style="font-weight: 400;" aria-level="1">Concerns: High reserve levels shown not needed, discomfort with notion of a floor without supporting data.</li> </ul> <h5><a href="/sharing/?token=a769375d-5a6d-41cc-8aa7-020219f153ac">▶️</a>12.1.2 - NPRR1269, RTC+B Three Parameters Policy Issues – URGENT</h5> <ul> <li style="font-weight: 400;" aria-level="1">Motion to recommend approval of NPRR1269 passed with one no vote from Ben Barkley.</li> <li style="font-weight: 400;" aria-level="1">Discussion about whether to take a lunch break or continue, decision made to continue without a break.</li> </ul> <h5><a href="/sharing/?token=a08e3860-1c6f-450d-a6d3-576a2937700a">▶️</a>12.1.2.1 - ERCOT Comments on NPRR1269</h5> <a href="/storage/docs/2025/04/12.1.2.1%20ERCOT%20Comments%20on%20NPRR1269.pdf">12.1.2.1 ERCOT Comments on NPRR1269.pdf</a> <ul> <li style="font-weight: 400;" aria-level="1">Presentation on ERCOT's position regarding NPRR1269, focusing on the ancillary service demand curve floor and the proxy curve floor.</li> <li style="font-weight: 400;" aria-level="1">Concerns about day-ahead and real-time pricing being insufficient to incentivize self-commitment.</li> <li style="font-weight: 400;" aria-level="1">The $15 floor for ancillary services is limited but provides important market signals.</li> <li style="font-weight: 400;" aria-level="1">The proxy offer floor is a compromise; not found unreasonable in recent studies.</li> <li style="font-weight: 400;" aria-level="1">Extending the $15 floor to day-ahead and real-time markets should promote self-commitment.</li> <li style="font-weight: 400;" aria-level="1">Analysis showed the $15 floor was hit infrequently, but important when it occurred.</li> <li style="font-weight: 400;" aria-level="1">Compensating resources at the $15 floor supports reserve requirement valuation.</li> <li style="font-weight: 400;" aria-level="1">RUC commitment costs were analyzed; in some scenarios, floors may reduce overall costs.</li> <li style="font-weight: 400;" aria-level="1">The proxy offer floor is necessary for when no offers are included due to technical or human errors.</li> <li style="font-weight: 400;" aria-level="1">The compromise from $0 to $2000 per megawatt per hour addresses the balance between covering costs and preventing strategic withholding.</li> <li style="font-weight: 400;" aria-level="1">The compromise did not noticeably change the positions of parties involved.</li> </ul> <h5><a href="/sharing/?token=a915bdce-0a8b-40c2-b360-458c25be556c">▶️</a>12.1.2.2 - Other Comments on NPRR1269, if any</h5> <a href="https://www.ercot.com/files/docs/2025/04/04/12.1.2.2-Other-Comments-on-NPRR1269-if-any.zip">12.1.2.2 Other Comments on NPRR1269, if any</a> <ul> <li style="font-weight: 400;" aria-level="1">Jeff McDonald from ERCOT's IMM discussed concerns about the $15 price floor in the shortage pricing mechanism, noting it might suppress the real-time market's ability to price shortages effectively.</li> <li style="font-weight: 400;" aria-level="1">The discussion highlighted a mismatch between the shortage pricing mechanism and the quantity of reserve procurement, suggesting a possible over procurement of reserves.</li> <li style="font-weight: 400;" aria-level="1">McDonald proposed a stochastic and marginal reliability approach for determining reserve procurement, which could resolve issues with current methodologies.</li> <li style="font-weight: 400;" aria-level="1">There was opposition to the $15 floor, suggesting it could mute shortage signals that are crucial for inducing necessary market responses from generators.</li> <li style="font-weight: 400;" aria-level="1">Concerns were raised about the proxy offer process, advocating for a more explicit requirement for participants to submit offers, accompanied by penalties for non-compliance.</li> <li style="font-weight: 400;" aria-level="1">Potential reliability impacts of the $15 floor were debated, with McDonald suggesting the current reserve procurement level might already exceed what's needed for system reliability.</li> <li style="font-weight: 400;" aria-level="1">Jeff and other stakeholders discussed whether the $15 floor helps reduce RUC instances, with Jeff indicating mixed short-term benefits and potential long-term drawbacks.</li> <li style="font-weight: 400;" aria-level="1">The meeting touched on ongoing discussions and plans for adjusting the ancillary service demand curve methodology, shifting towards a probability-based approach.</li> <li style="font-weight: 400;" aria-level="1">There was a brief commentary from a consumer group representative advocating for setting the ASDC demand floor at $0 to observe market responses as an alternative to the $15 proposal.</li> </ul> <h3><a href="/sharing/?token=d97e0e14-7dc7-49a3-bd52-8b35813d57f6">▶️</a>13 - High-Impact Policy Discussions in the Stakeholder Process</h3> <a href="/storage/docs/2025/04/13-High-Impact-Policy-Discussions-in-the-Stakeholder-Process.pdf">13-High-Impact-Policy-Discussions-in-the-Stakeholder-Process.pdf</a> <ul> <li style="font-weight: 400;" aria-level="1">Introduction of holistic overview of stakeholder process at the full board, previously part of R&M.</li> <li style="font-weight: 400;" aria-level="1">First issue discussion on RTC; policy parameter and ASDC issues moved forward, expecting a revision request in late April.</li> <li style="font-weight: 400;" aria-level="1">Reviewing RTC-related revision requests in anticipation of December 5 go-live date.</li> <li style="font-weight: 400;" aria-level="1">DRRS workshop in February focused on real-time issues; continued workshops to focus on design options and statutory requirements.</li> <li style="font-weight: 400;" aria-level="1">Discussion on large loads with NPRR1234 and PGRR115 defining large loads and setting thresholds; anticipation of market-sponsored NPRRs.</li> <li style="font-weight: 400;" aria-level="1">Mention of task force transition from large flexible load to potential large load and hyperscaler working groups.</li> <li style="font-weight: 400;" aria-level="1">New issue on firm fuel supply service; ERCOT asked PUC for guidance based on survey results.</li> <li style="font-weight: 400;" aria-level="1">Filed NPRR1275 expanding firm fuel supply eligibility; awaiting impact analysis.</li> <li style="font-weight: 400;" aria-level="1">Discussion needed on procurement methods and reliability concerning firm fuel service.</li> <li style="font-weight: 400;" aria-level="1">NPRR1275 could be deferred without further guidance.</li> <li style="font-weight: 400;" aria-level="1">Introduction of Renewable Energy Credit Program; NPRR1264 on new energy attribute certificate program.</li> <li style="font-weight: 400;" aria-level="1">ERCOT's unique step of conducting impact analysis before program implementation.</li> <li style="font-weight: 400;" aria-level="1">Four responses to policy questions were reviewed, with ongoing discussions expected.</li> <li style="font-weight: 400;" aria-level="1">DRRS expected to reach a new proposal by year-end after ongoing workshops.</li> </ul> <h3><a href="/sharing/?token=a6b6183f-1af8-4983-9268-568f048e04ae">▶️</a>14 - System Planning and Operations</h3> <h4><a href="/sharing/?token=18aa9f7c-e52d-4a1e-97ca-08a894698acc">▶️</a>14.1 - Exit Strategy for Reliability Must Run (RMR) of Braunig Unit(s) and/or Life Cycle Power Agreements</h4> <a href="/storage/docs/2025/04/14.1-Exit-Strategy-for-Reliability-Must-Run-RMR-of-Braunig-Unit-s-and_or-Life-Cycle-Power-Agreements.pdf">14.1-Exit-Strategy-for-Reliability-Must-Run-RMR-of-Braunig-Unit-s-and_or-Life-Cycle-Power-Agreements.pdf</a> <ul> <li style="font-weight: 400;" aria-level="1">Discussion on exit strategies for the RMR agreement with the Braunig unit.</li> <li style="font-weight: 400;" aria-level="1">Importance of studying options more cost-effective than remaining in RMR agreements.</li> <li style="font-weight: 400;" aria-level="1">Exploration of accelerating the San Antonio South Reliability project.</li> <li style="font-weight: 400;" aria-level="1">Active discussions with TSPs: CPS, AEP, and STEC.</li> <li style="font-weight: 400;" aria-level="1">Approved project involves rebuilding the line from Spruce to Pawnee and Pawnee to Tango.</li> <li style="font-weight: 400;" aria-level="1">Timeline acceleration: first circuit from Dec 2028 to Sep 2026, second circuit completion from May 2029 to Jan 2027.</li> <li style="font-weight: 400;" aria-level="1">Benefit analysis shows acceleration may reduce the need for Braunig units and LCP agreements.</li> <li style="font-weight: 400;" aria-level="1">Acceleration will enable exiting the generic transmission constraint in the region earlier, moving it to 2027 from 2029.</li> <li style="font-weight: 400;" aria-level="1">Market notice released indicating completed analysis.</li> <li style="font-weight: 400;" aria-level="1">Analysis indicates first circuit acceleration could allow exiting both Braunig and LCP agreements by Sep 2026.</li> <li style="font-weight: 400;" aria-level="1">Upgrading the line provides system benefits greater than Braunig and LCP units.</li> <li style="font-weight: 400;" aria-level="1">Ongoing collaboration with TSPs to accelerate the project.</li> <li style="font-weight: 400;" aria-level="1">Potential discussion of acceleration cost in executive session, as final costs are not public yet.</li> <li style="font-weight: 400;" aria-level="1">Discussion on the necessity of both circuit upgrades despite immediate benefits from the first circuit acceleration.</li> </ul> <h4><a href="/sharing/?token=4fbf4b08-4242-4dd5-a40b-13eef3110aeb">▶️</a>14.2 - System Planning and Weatherization Update</h4> <a href="/storage/docs/2025/04/14.2-System-Planning-and-Weatherization-Update-REVISED.pdf">14.2-System-Planning-and-Weatherization-Update-REVISED.pdf</a> <ul> <li style="font-weight: 400;" aria-level="1">NOGRR245 requirements have been implemented for optimizing voltage ride-through capabilities in new and existing IVRs with deadlines and options for extensions or exemptions.</li> <li style="font-weight: 400;" aria-level="1">ERCOT is reviewing exemption requests to ensure no reliability impact and is performing exemption studies, with reliability assessment studies starting in the fall.</li> <li style="font-weight: 400;" aria-level="1">A review process for compliance extension requests is underway with ERCOT having a structured timeline for decision-making.</li> <li style="font-weight: 400;" aria-level="1">A high response rate to the NOGRR245 compliance request was received, with a significant number of resources committing to maximizing capabilities by December 31. Some requested extensions or exemptions.</li> <li style="font-weight: 400;" aria-level="1">New generation and large load interconnection requests are tracked, with ERCOT managing significant levels of interest, particularly in solar and battery storage.</li> <li style="font-weight: 400;" aria-level="1">Texas Energy Fund projects are progressing, with substantial new gas generation planned and multiple interconnection requests in process.</li> <li style="font-weight: 400;" aria-level="1">The Permian Basin transmission plan is under review due to substantial load growth, with options for 345kV and 765kV import paths being analyzed.</li> <li style="font-weight: 400;" aria-level="1">Transmission outage management is challenged by increased grid evolution and load growth, with the need for efficient planning and management to maintain reliability.</li> <li style="font-weight: 400;" aria-level="1">Winter weatherization inspections have been completed with positive results in unit performance. Resource adequacy assessments show low emergency event risk.</li> <li style="font-weight: 400;" aria-level="1">Review of IBR ride-through event tracking is underway, in response to market participant queries.</li> </ul> <h4><a href="/sharing/?token=713a9fb2-f75b-4786-bb5a-45a8ce93007e">▶️</a>14.3 - System Operations Update</h4> <a href="/storage/docs/2025/04/14.3-System-Operations-Update.pdf">14.3-System-Operations-Update.pdf</a> <ul> <li style="font-weight: 400;" aria-level="1">Analysis of a tight operating day in November led to the need for NPRR1273, which will be voted on before its importance is illustrated.</li> <li style="font-weight: 400;" aria-level="1">On November 10, the battery state of charge fell from 93% to 11.6% due to reserve release.</li> <li style="font-weight: 400;" aria-level="1">Recognition of the need for a 45-minute state of charge requirement in NPRR1273 to better prepare for load shedding in tight conditions.</li> <li style="font-weight: 400;" aria-level="1">Introduction of new wind and solar records in March, with up to 73% load being served by renewables.</li> <li style="font-weight: 400;" aria-level="1">February's weather event, named Kingston, resulted in the highest winter net load recorded at almost 70 gigawatts.</li> <li style="font-weight: 400;" aria-level="1">The disparity in net load growth between summer and winter, with solar growth keeping pace with peak summer demand but less so in winter.</li> <li style="font-weight: 400;" aria-level="1">Ongoing issues with large load trips, primarily due to crypto miners, have prompted new NPRRs to be developed.</li> <li style="font-weight: 400;" aria-level="1">Collaboration with industry and regulatory bodies like NERC and EPRI to address large load trips due to voltage dips.</li> <li style="font-weight: 400;" aria-level="1">Normal operating metrics are reportedly in good condition.</li> <li style="font-weight: 400;" aria-level="1">Discussion of the IBR ride-through issue with updates expected from NOGRR245 implementations.</li> </ul> <h3><a href="/sharing/?token=c887170e-1723-4a0f-be44-f30ddcba5f09">▶️</a>15 - Update on Segment Definitions in the Bylaws</h3> <a href="/storage/docs/2025/04/15-Update-on-Segment-Definitions-in-the-Bylaws.pdf">15-Update-on-Segment-Definitions-in-the-Bylaws.pdf</a> <ul> <li style="font-weight: 400;" aria-level="1">Overview of discussions on segment definitions in the bylaws was initially provided under the TAC report.</li> <li style="font-weight: 400;" aria-level="1">Opportunity identified to align segment definitions with current participants, as definitions are around twenty years old.</li> <li style="font-weight: 400;" aria-level="1">Notice of increased data center and crypto facility participation, categorized under either industrial consumer or large commercial consumer segments.</li> <li style="font-weight: 400;" aria-level="1">ERCOT Legal determined data centers and cryptocurrency miners should be in the industrial segment.</li> <li style="font-weight: 400;" aria-level="1">Discussions involved representatives from relevant segments before altering segment membership lists.</li> <li style="font-weight: 400;" aria-level="1">Three proposals discussed to amend segment definitions, as highlighted by Caitlin.</li> <li style="font-weight: 400;" aria-level="1">Proposals from TIEC, ERCOT Steel Mills, and Texas Blockchain Council aim to modernize the industrial segment to include data centers and crypto miners.</li> <li style="font-weight: 400;" aria-level="1">Calpine, Constellation, and Vistra propose bifurcating the independent generator segment into thermal and IRR sub-segments.</li> <li style="font-weight: 400;" aria-level="1">Proposed changes would not affect voting rights despite additional representation in segments.</li> <li style="font-weight: 400;" aria-level="1">Lone Star Transmission and NextEra propose changes to the transmission and distribution entity segment definition.</li> <li style="font-weight: 400;" aria-level="1">NextEra seeks participation and voting rights in the independent generator segment.</li> <li style="font-weight: 400;" aria-level="1">Response deadline for proposals is April 18 to facilitate ongoing stakeholder dialogue.</li> <li style="font-weight: 400;" aria-level="1">Potential bylaw changes include ensuring completion for alignment by the 2026 record date.</li> <li style="font-weight: 400;" aria-level="1">ERCOT may present bylaw changes to the HR&G Board in June.</li> </ul> <h3><a href="/sharing/?token=a4cf7458-9de9-49b1-b9a1-fc9d76066465">▶️</a>16 - Board Committee Reports</h3> <h4><a href="/sharing/?token=8fa10b43-67b9-4298-8941-ad1adf42c026">▶️</a>16.1 - Finance and Audit (F&A) Committee</h4> <ul> <li style="font-weight: 400;" aria-level="1">Financial statements were approved unanimously.</li> <li style="font-weight: 400;" aria-level="1">Received normal committee briefs on financial reporting, investments, and debt, with compliance in all areas.</li> <li style="font-weight: 400;" aria-level="1">First review of proposed 2026 and 2027 budget was conducted.</li> <li style="font-weight: 400;" aria-level="1">Total authorized spend is $474 million in 2026 and $557 million in 2027.</li> <li style="font-weight: 400;" aria-level="1">Increase in 2027 budget is largely due to the data center six refresh project.</li> <li style="font-weight: 400;" aria-level="1">Initial proposal includes decreasing the system administration fee from $0.63 to $0.61 per megawatt-hour beginning January 1, 2026.</li> <li style="font-weight: 400;" aria-level="1">Formal budget approval will be revisited in June.</li> <li style="font-weight: 400;" aria-level="1">Consideration of uncertainties such as tariffs, trade disruptions, and economic downturn impacts on electric demand in budget planning.</li> </ul> <h5><a href="/sharing/?token=e3449378-9f55-46b9-880e-25a5b96c355e">▶️</a>16.1.1 - Acceptance of ERCOT Consolidated Financial Statements Audit Report</h5> <a href="https://www.ercot.com/files/docs/2025/04/01/16.1.1-Acceptance-of-ERCOT-Consolidated-Financial-Statements-Audit-Report.pdf">16.1.1 Acceptance of ERCOT Consolidated Financial Statements Audit Report</a> <ul> <li style="font-weight: 400;" aria-level="1">Discussion on audited financial statements presented by the company's auditor and CFO.</li> <li style="font-weight: 400;" aria-level="1">ERCOT received clean or unmodified opinions.</li> <li style="font-weight: 400;" aria-level="1">Clean opinions were issued for ERCOT consolidated, special purpose entity M, and another special purpose entity.</li> </ul> <h4><a href="/sharing/?token=144571b4-0c83-43ac-a470-57e8a9bfd583">▶️</a>16.2 - Human Resources and Governance (HR&G) Committee</h4> <ul> <li style="font-weight: 400;" aria-level="1">There was one voting item regarding the annual review of board policies and procedures, with no recommended changes.</li> <li style="font-weight: 400;" aria-level="1">The HR&G Committee voted to recommend the Board approve or affirm the current policies and procedures.</li> <li style="font-weight: 400;" aria-level="1">Several informational items were discussed, including:</li> <ul> <li style="font-weight: 400;" aria-level="2">The Human Resources Operations report</li> <li style="font-weight: 400;" aria-level="2">The annual status report from the Retirement Plan Committee</li> <li style="font-weight: 400;" aria-level="2">The annual status report on health and welfare activities</li> </ul> <li style="font-weight: 400;" aria-level="1">The 2024 objectives and key results (OKRs) and the 2025 OKRs were included in the materials for public information.</li> <li style="font-weight: 400;" aria-level="1">These OKRs have been discussed on numerous occasions by the committee and the board.</li> </ul> <h5><a href="/sharing/?token=0eae313f-545d-4a76-954f-768b194b875f">▶️</a>16.2.1 - Reaffirmation of the Board Policies and Procedures</h5> <a href="https://www.ercot.com/files/docs/2025/04/01/16.2.1-Reaffirmation-of-the-Board-Policies-and-Procedures.pdf">16.2.1 Reaffirmation of the Board Policies and Procedures</a> <ul> <li style="font-weight: 400;" aria-level="1">A motion was made to reaffirm the Board policies and procedures as outlined in items 16.1.3 of the board materials.</li> <li style="font-weight: 400;" aria-level="1">The motion was seconded by Julie.</li> <li style="font-weight: 400;" aria-level="1">The board voted, with all in favor and no oppositions or abstentions.</li> <li style="font-weight: 400;" aria-level="1">The Board policies and procedures were successfully reaffirmed.</li> </ul> <h4><a href="/sharing/?token=738ac09b-ff98-466c-a077-42d75913b565">▶️</a>16.3 - Technology and Security (T&S) Committee</h4> <ul> <li style="font-weight: 400;" aria-level="1">Most board members were present in the meeting of the Technology Security Committee.</li> <li style="font-weight: 400;" aria-level="1">No additional report was provided for this agenda item. </li> </ul> <h3><a href="/sharing/?token=4dafd247-c6e3-423f-b679-0ac5cba37f25">▶️</a>17 - Other Business</h3> <ul> <li style="font-weight: 400;" aria-level="1">No additional business was raised by board members during the general session.</li> <li style="font-weight: 400;" aria-level="1">The meeting was recessed for a fifteen-minute lunch break.</li> <li style="font-weight: 400;" aria-level="1">The session is set to reconvene in executive session post-lunch.</li> <li style="font-weight: 400;" aria-level="1">The meeting of the Public Utility Commission of Texas was acknowledged to stand in recess.</li> <li style="font-weight: 400;" aria-level="1">Bill Flores, ERCOT Board Chair, reconvened the ERCOT Board of Directors meeting after ensuring a quorum.</li> </ul> <h3><a href="/sharing/?token=206e7d8e-baaa-4fdb-9eb2-2a0a4a809574">▶️</a>18 - Vote on Matters from Executive Session</h3> Three voting items were discussed from the executive session: <ul> <li style="font-weight: 400;" aria-level="1">A motion was made to approve the selection of Baker Tilly as the independent financial auditor.</li> <li style="font-weight: 400;" aria-level="1">The audit will cover the financial statements for the year ended 12/31/2025.</li> </ul> The scope includes: <ol> <li style="font-weight: 400;" aria-level="1">Financial statements audit, servicer certificate, and Form 990 review for ERCOT Inc.</li> <li style="font-weight: 400;" aria-level="1">Financial statements audit and consolidation procedures for Texas Electric Market Stabilization Funding M LLC.</li> <li style="font-weight: 400;" aria-level="1">Financial statements audit and consolidation procedures for Texas Electric Market Stabilization Funding N.</li> </ol> <h3> </h3> <ul> <li style="font-weight: 400;" aria-level="1">The motion was unanimously approved with all in favor, no oppositions, and no abstentions.</li> </ul> <h3>▶️19 - Adjournment</h3> <ul> <li style="font-weight: 400;" aria-level="1">The ERCOT Board of Directors meeting adjourned.</li> </ul>