Meeting Summary - 04/24/2025 Open Meeting

▶️0 - Chairman Gleeson calls meeting to order

▶️0.1 - Commission Counsel Shelah Cisneros lays out Consent Agenda

• Items placed on consent agenda by individual ballot: 9, 11,13-16, 19, 21, 23, 26, 29, 30.
• Item 39 from rules and projects added to consent agenda by Commissioners' vote.
• Item 8 will not be considered.

• Motion to approve consent agenda passed unanimously.

▶️1 - Public comment for matters that are under the Commission’s jurisdiction, but not specifically posted on this agenda

• No one signed up for public comment

▶️2 - Docket No. 53373; SOAH Docket No. 473-23-10572.WS – Complaint of Andrew and and Sarah Fossum Against Undine Development, LLC

• Review of the SOAH proposal for decision.
• Mention that the parties filed exceptions.
• Fossum filed a motion to admit evidence and for official notice.
• An ALJ letter made clarifications but no changes to the PFD.
• Chairman Gleeson recused from this item.

▶️ Commissioner Jackson's Thoughts

• The ALJ recommends denying the complaint from Mr. and Mrs. Folsom, but Commissioner Jackson disagrees.
• Commissioner Jackson believes Undine violated Commission rules and is financially responsible for the Folsoms' grinder pump repair or replacement.
• Undine's sewer tariff did not specify ownership and maintenance responsibilities for grinder pumps as required by the rules.
• The rule requiring specification in the utility's approved tariff has existed since at least February 2012.
• Under Commission rules, if the tariff does not specify customer responsibility, the utility is by default responsible.
• The purpose of the rules is to protect the consumer and Commissioner Jackson's view is supported by another member.

• Motion to adopt in part and reject in part the proposal for decision passed unanimously.

▶️3 - Docket No. 53459; SOAH Docket No. 473-23-10573.WS – Application of Undine Texas LLC to Amend Its CCN and to Decertify a Portion of Porter SUD’s CCN in Harris and Montgomery Counties

• A second revised proposed order is being considered.
• The Chairman filed a memo outlining issues with the application, specifically the requirement for a capital improvement plan and clearly keyed maps, which were not provided.
• The recommendation was made to remand the matter to docket management for Undine to meet the necessary requirements.
• There was a request for confirmation on whether any TCEQ approval letters are required under the statute.
• There was agreement with the Chairman's proposed amendment to remand the docket.

• Agreement to remain the proceeding to docket management.
• A motion consistent with the Chairman’s memo passed unanimously.

▶️4 - Docket No. 54633 – Complaint of Lois Dawson Against City of Bartlett

• A proposal for decision (PFD) was presented.
• No exceptions or corrections to the PFD were filed.
• The Chairman filed a memo related to the case.
• Despite no hearing requests, there are remaining factual disputes.
• Recommendation to reject the PFD and refer the case to SOAH
• Commission advising is instructed to draft a preliminary order for future consideration.
• Agreement among members to refer the case to SOAH or unresolved factual disputes.

• A motion to reject the PFD and refer the proceeding to SOAH as per the memo passed unanimously. 

▶️5 - Docket No. 54617; SOAH Docket No. 473-24-13127 – Application of Texas Water Utilities, L.P. & Southern Horizons Development, Inc. for STM of Facilities and...

• The Commission had previously granted rehearing and remanded the docket for parties to file a map certificate and tariff.
• Documents were filed by the parties but not yet admitted into the evidentiary record.
• Two main items are to address: motion to admit evidence and motion on rehearing.
• Commissioner Hjaltman is recused from this item.
• Chairman Gleeson's memo suggests procedural steps must be taken before addressing the merits on rehearing.
• Texas Water Utilities filed a final map, certificate, and tariff on 04/16/2025 requesting admission into the evidentiary record.
• No responses were filed by the deadline of 04/23/2025 set by DLJ.

▶️ Motion to admit map certificate and tariff filed by Texas Water Utilities 

• Motion to admit map certificate and tariff filed by Texas Water Utilities on 04/16/2025 into the record.
• Rehearing was previously granted in March on this issue.
• A memo was filed with perfecting changes on the order for re-granting rehearing.
• There was an agreement on the changes made in the memo.
• A move to approve the order on rehearing consistent with the memo and discussion was made and implied.
• A motion passed unanimously.

▶️Shelah Cisneros' addendum to the second motion

• Discussion about a potential issue with tariff pages filed by the company.
• It is suggested that not all applicable pages for the proceeding were filed.
• Motion to authorize OPDM to add an ordering paragraph to require Texas Water to file a comprehensive water tariff.
• The comprehensive tariff should be submitted within thirty days of the order.
• Shelah's recommendation should be considered in the motion.

▶️ Motion to Approve Order on Rehearing

• A motion was moved to approve the order on rehearing.
• The motion was consistent with a memo, prior discussion, and Commission counsel's recommendation.
• Motion passed unanimously.

▶️6 - Docket No. 55392 – Application of Paul H. Krebs d/b/a K Lake Water System and Padok Utility and East Houston Utilities, Inc. for STM of Facilities and Certificate Rights in Harris County

• A proposed order is before the council with no corrections or exceptions filed.
• The Chairman filed a memo agreeing with the outcome but indicating some changes to soften the language regarding service feasibility from an adjacent retail utility.
• Council members express agreement with the memo and the proposed changes.

• Motion to approve the proposed order passed unanimously.

▶️ 7 - Docket No. 55455 – Application of City of Fort Worth to Amend Its Certificate of Convenience and Necessity and to Decertify a Portion of Benbrook Water Authority’s CCN in Tarrant County

• No corrections or exceptions were filed regarding the proposed order.
• The Chairman filed a memo with recommended changes to the order.
• Most significant recommendation is to rely on Texas Water Code section 13.248 for approving the transfer.
• General agreement among participants with the Chairman's memo.

• Motion to approve the proposed order with changes outlined in the memo passed unanimously.

8

• Not Discussed

▶️ 10 - Docket No. 56330; SOAH Docket No. 473-24-23993.WS – Complaint of HMI – Wills Point, LLC Against the City of Wills Point

• A SOAH proposal for decision is presented.
• HMI - Wills Point filed exceptions to the proposal.
• The SOAH ALJ recommended no changes to the PFD.
• The Chairman filed a memo on the document, agreeing with the dismissal due to mootness.
• HMI no longer owns the property in question, which is a reason for modifying the grounds for dismissal for mootness.

• A motion to approve the proposed order with outlined changes in a memo passed unanimously.

▶️ 12 - Docket No. 56573 – Complaint of Maurice Walker Against Avanath Blunn Creek, LLC

▶️ Chairman Gleeson & Commissioner's thoughts

• Default orders previously used not applicable due to lack of financial remedy details.
• Proposal to remain the case to docket management for further staff investigation.
• Staff to develop a position on the complaint's merits and determine necessary refund amounts.
• Unacceptable for a regulated entity not to respond; accountability measures needed.
• Agreement on a pathway to hold the entity accountable.
• Staff and complainant to develop a methodology to address the overbilling issue.
• Determination of proper procedure, including potential default order, after further information is obtained.

• Motion made to remand proceeding to docket management for further processing passed unanimously.

▶️17 - Docket No. 57409 – Complaint of Kimberly Coffee Against Undine Texas, LLC

• A draft preliminary order is available for review.
• Commissioner Jackson has filed a memo related to this agenda item.

▶️ Commissioner Jackson Lays Out Her Memo

• Commissioner Jackson’s memo recommends adding 3 additional clarifying questions.
• The questions aim to further define issues related to possible meter inaccuracies.
• Her recommendations are to be added to the preliminary order.
• There was agreement on Jackson's memo by other commissioners.

• Motion to direct OPDM to draft an order consistent with the memo.
• Motion made to direct OPDM to draft an order consistent with the memo passed unanimously

▶️ 18 - Docket No. 57445 – Petition of Heritage Cardiff SPE, LLC Appealing the Decision of Northwest Harris County Municipal Utility District No. 36 to Change Rates

• The Chairman submitted a memo recommending upholding the ALJ's decision.
• Recommendation to deny the motion to dismiss and refer the case to SOAH.
• Acknowledgement of outstanding issues of fact and law that need resolution.
• Agreement among meeting participants on ALJ's correct decision and denial of motion to dismiss.

• A motion was made to approve the proposed order with changes outlined in a memo passed unanimously.

▶️22 - Docket No. 56164 – Application of City of Caldwell, Texas to Transfer Megawatts of Load to ERCOT

• Chairman Gleeson filed a memo related to this docket.
• Commissioner Hjaltman is recused from this item.
• Commissioner Jackson expressed agreement to approve the revised proposed order.
• The Chairman's memo included changes and additions to finding a fact and ordering paragraphs.
• Consensus among participants to welcome the City of Caldwell to ERCOT.

• Motion to approve proposed order

• A motion was made to approve the proposed order with changes outlined in a memo passed unanimously.

▶️24 - Docket No. 57057; SOAH Docket No. 473-25-01921 – Application of AEP Texas Inc. for Approval of a System Resiliency Plan

• Presentation of a corrected proposed order related to an unopposed agreement in the docket.
• Commissioner Hjaltman filed a memo.

▶️Commissioner Hjaltman lays out her memo

• Commissioner Hjaltman proposed three changes to the memo.
• Adding a new finding of fact regarding already incurred expenses, requiring an annual report.
• Regional reporting basis to track occurrences across various areas of Texas.
• Inclusion of wildfire mitigation data, requiring reports on fires to know their presence in respective areas.
• Support expressed by other members for the proposed changes.

• A motion was put forward for OPDM to draft an order consistent with a particular memo passed unanimously.

▶️25 - Docket No. 57115; SOAH Docket No. 473-25-02531 – Joint Application of the City of San Antonio, Acting by & through the City Public Service Board (CPS Energy), and South Texas Electric Co-op, Inc...

• A PFD was submitted with no exceptions or corrections filed initially.
• A request to intervene was filed late after the PFD, but the Commission voted not to consider it.
• The Chairman filed a memo with corrections regarding which route might be preferable.
• The routes under consideration were N-AB and Y, with Y being more expensive but having fewer habitable structures.
• The Chairman supports Route Y modified with the landowner's request, despite its higher costs.
• Another party in the meeting expressed agreement with the Chairman's preference for route Y with modifications.

▶️25 - Commissioner's Thoughts

• Route Y impacts 41 structures compared to Route B with 71 structures.
• Route Y is 3.5% more costly, approximately $9,000,000.
• Recommendation to include Segment 62-Mod 2, involving one landowner.
• Route Y determined to be reasonable and viable.
• Emphasis on consideration of inhabitants along right-of-way routes.
• Agreement on incurring additional cost for Route Y due to fewer affected structures.
• Support for choosing Route Y over Route N-AB based on impact on inhabitable structures.
• Importance of not bisecting landowner properties and aligning with existing property lines.

• A motion was introduced to modify the PFD and select modified Route Y by substituting Segment 62-Mod 2 for Segment 62 passed unanimously.

▶️27 - Docket No. 57271; SOAH Docket No. 473-25-05323 – Application of CenterPoint Energy Houston Electric, LLC for Determination of System Restoration Costs

• A proposed order addresses an unopposed agreement in the docket.
• Chairman Gleeson and Commissioner Hjaltman submitted a joint memo.
• The Chairman filed a corrections memo.

▶️Commissioner Hjaltman Lays Out Her Memo

• Commissioner Hjaltman supports reaching settlement agreements.
• Anticipation of more system restoration cases coming before the Commission.
• Recommendation to open a rulemaking for guidance on recoverable costs.
• Suggestion for Commission Staff to initiate the rulemaking.

▶️ Deputy Executive Director Barksdale English - Guidance on rulemaking

• A significant number of rule makings, approximately 30, are pending before the agency.
• These rule makings have been identified from past legislative sessions, discussions, or comprehensive reviews done every four years.
• The Commissioners are asked to provide guidance on the priority of these rule makings.
• The upcoming end of the legislative session may affect the order of priority.
• A proposal was made to wait for a briefing post-session to assess what passes and to set a priority list during the summer.
• The approach suggested was agreed upon as very reasonable.

• Motion to approve the proposed order with changes outlined in a memo passed unanimously.

▶️28 - Docket No. 57441 – Petition for Consolidated Permian Basin Reliability Plan CCN Filing Authorization

• No corrections or exceptions to the proposed order were filed.
• The Chairman filed a memo related to this docket.
• The proposed order is to be adopted, as mentioned in the memo.
• Clarification was made that the Commission is not making a decision on this proceeding currently.
• Decisions on the requirement for an amendment to a TSP’s CCN will be determined in the future.
• All participants expressed agreement with the clarification.

• Motion to approve the proposed order with outlined changes passed unanimously.

31-32

• Not Discussed

▶️33 - Project No. 55999 – Reports of the Electric Reliability Council of Texas

▶️Kristi Hobbs - ERCOT - Introduction

• An update on the progress of the RMR contracts and RMR outage work was provided.
• Focus is on the Braunig unit in the San Antonio area.
• David Kezell, Director of Weatherization, is overseeing the effort alongside CPS.
• Emphasis on monitoring the use of consumer dollars and ensuring transparency in the outage work.
• David Kezell has been making regular visits to collaborate with the CPS team.

▶️ David Kezell - ERCOT - Update on RMR contracts and outage work

• The outage is progressing well with numerous inspections and repairs underway.
• A significant finding of cracking in a super heater header will extend the outage duration.
• The super heater header cannot be repaired on-site and requires a new custom-fabricated replacement, which will take time.
• The current total cost of the outage is approximately $25,000,000.
• Initial cost estimates ranged from $20,000,000 to $21,000,000 for the inspection outage and necessary capital projects.
• The budget included $3,300,000 to $9,700,000 for potential discovery work.
• The current and anticipated expenses remain within the budget.
• The outage will not conclude in time for Braunig unit 3’s service this summer and may extend to next Spring.
• Efforts are being made to expedite the header's delivery, aiming for operational status by late Fall or early Winter.

▶️ Kristi Hobbs - ERCOT - Updating of models

• Discussion about a potential delay in a project and its impact on investment decisions.
• Confirmation that updated models were created, incorporating load growth and generation changes.
• Economic evaluation of the transmission system was conducted.
• Decision to proceed with maintaining the bromine unit despite the delay as benefits outweigh costs.
• Benefit of the unit is expected especially in the July and August timeframe next Summer.

▶️ David Kezell - ERCOT - Delays

• Additional testing is underway which may increase costs slightly.
• The increased costs from additional testing are not anticipated to exceed the budget.
• The schedule is expected to remain on track despite the additional testing.

▶️Commissioner's thoughts on ERCOT's updates

• The importance of good data and information in making informed decisions was highlighted.
• Ongoing evaluation of situations as they progress is crucial.
• The real value of the updated unit is expected during the Summer.
• Best-case scenario suggests operational readiness by February, but earlier would be beneficial.
• Mention of mobile generation units aligning with previous anticipations and outlining their importance.
• Importance of cost awareness and timeline adherence for getting units in service.

▶️Nathan Bigbee - ERCOT - Update on Life Cycle Agreement

• ERCOT and Life Cycle reached an agreement on the arrangement terms.
• Cooperation from CPS Energy and CenterPoint is needed to finalize agreements.
• The arrangement uses a novel approach borrowing the RMR framework for dispatch, settlement, and performance metrics.
• 15 aeroderivative combustion turbines are being moved from Houston to San Antonio.
• The arrangement involves a cost-based framework and accounts for the unique temperature sensitivity of the turbines.
• Metrics are developed to ensure appropriate performance without undue risk to Life Cycle.
• Costs associated with moving and setting up units are front-loaded, potentially appearing by May.
• The units are expected to be synchronized to the grid at a pace of five units every thirty days.
• Aim is to have units online for the summer peak season.
• Continued collaboration with all parties is crucial to maximizing reliability benefits.

34

• Not Discussed

▶️35 - Project No. 55718 – Reliability Plan for the Permian Basin under PURA §39.167

▶️ Julia Wagner - Commission Staff - Outlines Memo

• Staff prepared and filed a memo recommending approval of the 765 kilovolt import pass as part of the Permian Basin reliability plan.
• Briefings were conducted last week and this week to present arguments and rationale for the recommendation.
• Stakeholder activities were outlined that influenced the decision-making process.
• Cost and project completion timelines are critical aspects of the decision.
• Additional efforts were made to investigate and validate TSP’s cost estimates and ensure coordination with equipment vendors.
• Technical benefits of each voltage plan were documented.
• Incremental cost of the 765-kV plan is justified by its technical benefits.
• Proposed order attached to the memo, allowing for amendments to chosen voltage.

▶️ Chairman Gleeson & Commissioner's Thoughts

• Staff answered all queries over the past months and recommended the 765-kV investment in the Permian Basin.
• Participation from various stakeholders was appreciated for decision-making.
• The 765-kV option is deemed beneficial for long-term benefits and cost-effectiveness against a backdrop of rising demand.
• The build-out is expected to alleviate congestion and will be more favorable for landowners.
• A monitoring system will be implemented to ensure transparency and oversight.
• The importance of the timeline and cost monitoring was emphasized.
• Fewer outages anticipated with the 765-kV build, minimizing scheduling risks.
• The project is viewed as a significant long-term investment, likened to historical infrastructural decisions.

• A motion was presented to approve the proposed order authorizing the 765-kV import pass.
• The motion included allowing prior authorization to file CCNs for 345-kV import pass to expire.
• The motion passed unanimously.

▶️36 - Project No. 56000 – Firm Fuel Supply Service

▶️ Tyler Nicholson - Commission Staff - Memo concerning timelines

• Tyler Nicholson presented a memo from the Commission Staff.
• The memo outlined timelines for firm fuel supply service with two primary options.
• Attempt to implement for the upcoming winter with a narrow schedule for December stakeholder process.
• Delay implementation to a future procurement period, such as Winter 2026-2027.
• Option 2 would give time for the consideration of a rulemaking process to improve the product and address open questions.
• Open questions include risk hedging strategies.

 ▶️Chairman Gleeson & Commissioner's Thoughts

• The push for expansion was discussed, emphasizing its value.
• Option 2 was favored for the expansion plan.
• The emphasis was placed on executing the expansion correctly rather than quickly.
• Targeting the 2026-2027 Winter procurement period for the expansion.
• Importance of balancing the agency's competing interests during the session.
• New process and protocol development for firm fuel allocation were discussed.
• Importance of close, on-site firm fuel due to its distinct product value.
• Need for definitive allocation rationale for cost-effective and valuable product development for consumers.
• No major timeline issues were anticipated with ERCOT's current work.
• A narrow window exists for the current procurement period if pursued.

▶️ Rebecca Zerwas - ERCOT - Support for Option 2

• Rebecca Zerwas represents ERCOT and supports Option 2.
• ERCOT prefers a more deliberate and extended discussion on the issue.
• There was an idea to 'gray box' the language previously.
• ERCOT supports Staff's point list and believes rulemaking would be beneficial.
• They are aware of timeline constraints due to staff resources and legislation.
• ERCOT prefers not to rush a resolution before the June board deadline.
• The issue was referred from PRS to WMS and requires additional time.

▶️ 37 - Project No. 56896 – Texas Energy Fund In-ERCOT Loan Program Reports and Filings

▶️Traci Tolle - Commission Staff - Recommendation of 4 applications

• Staff recommended moving four applications into due diligence.
• Authority was delegated to Connie Corona to enter into a loan agreement upon satisfaction of due diligence.
• The four applications account for a total of over 1,900 megawatts.
• The total portfolio would increase to a little over 9,200 megawatts.
• The selection process was similar to previous rounds with an additional 'know your customer' review.
• Priority was given to firms with equity commitments.
• Due diligence is emphasized as an important pre-money exchange process.
• Due diligence takes between four to eight months.
• Applications have been withdrawn or denied due to stringent requirements to protect taxpayer dollars.
• Discussion emphasized that some applications cannot meet loan agreement timelines due to statutory requirements.

▶️Commissioners & Chairman Gleeson's thoughts

• Discussion emphasized the importance of responsibly using taxpayer dollars for funding and ensuring a process for loan repayment and task execution.
• Expectations were set for loan recipients to have an ability to repay and execute the incentives intended by the loan.
• Chairman Gleeson appreciated the process which ensures potential projects are assessed properly to enhance the energy grid.
• Mentioned the significant contribution of 9,218 megawatts to the grid and expressed hope that all projects reach completion.
• Highlighted the critical role of public trust in managing funds effectively.
• Clarified that a firm equity commitment must be secured before any loan agreement is entered, as a standard review process for every project.

• A motion to approve the proposed order passed unanimously.

▶️ 38 - Project No. 57937 – Texas Energy Fund Completion Bonus Grant Program Reports and Filings

▶️ Glynis Vitanza - Commission Staff - Recommendation on issuing notice of eligibility for completion of program, with delegation to Executive Director

• Staff recommends issuing a notice of eligibility for the completion bonus grant program.
• Recommends delegation of authority to the executive director to enter into a grant agreement upon applicant's interconnection to ERCOT.
• The applicant proposes adding 188 megawatts of potential new generation and can receive up to $22,500,000 over ten years if performance measures are met.
• The application is administratively complete and has passed a Know Your Customer review.
• It is the first project recommended for notice of eligibility in the grant program.
• Six applications are currently under review, with others in progress.
• Commissioners acknowledge the necessity for performance to be demonstrated over ten years to recoup the incentive.
• The project and progress are appreciated, with emphasis on clear timelines for better understanding.

• A motion to approve the proposed order passed unanimously.

40-51

• Not Discussed

▶️51 - Chairman Gleeson adjourns meeting