03/13/2025 09:30 AM
Video Player is loading.
Current Time 53:08
Duration 56:41
Loaded: 93.83%
Stream Type LIVE
Remaining Time 3:33
 
1x
    • Chapters
    • descriptions off, selected
    • captions off, selected
    • default, selected
    Search
    • Item 0 - (item:0:Chairman Gleeson calls meeting to order)
      00:00:09
      This meeting of the Public Utility Commission of
    • 00:00:11
      Texas will come to order. To consider matters
    • 00:00:13
      that have been duly posted with the Secretary
    • 00:00:15
      of State for 03/13/2025. Good morning, everybody. Commissioners,
    • 00:00:22
      we have closed session today. The AG is
    • 00:00:24
      here. So, to be respectful of their time,
    • 00:00:28
      I'd ask that we, adjourn to closed session
    • 00:00:31
      recess to closed session first. I don't believe
    • 00:00:33
      it'll take very long and then come out
    • 00:00:35
      and go through our agenda, if that's okay
    • Item 44 - Adjournment for closed session to consider one or more of the following items:a. Discussions with its attorneys regarding contemplated litigation, settlement offers,
      00:00:36
      with everybody. Okay. All right. So having convened
    • 00:00:41
      a duly noticed open meeting, the Commission will
    • 00:00:43
      now at 09:30AM on 03/13/2025 hold a closed
    • 00:00:48
      session pursuant to Chapter 551 of
    • 00:00:50
      Texas government code. It will consult with its
    • 00:00:53
      attorney pursuant to Section 551.071
    • 00:00:55
      of the code deliberate personnel
    • 00:00:57
      matters pursuant to Section 551.074
    • 00:01:00
      of the code and deliberate
    • 00:01:02
      security matters pursuant to Section 551.076
    • 00:01:05
      of the code we'll
    • Item 44 - Chairman Gleeson concludes Closed Session, Public Meeting resumed
      00:01:07
      be right back. The closed session is hereby
    • 00:01:15
      concluded at 09:48AM on March 13, and the
    • 00:01:20
      Commission will resume its public meeting. No action
    • 00:01:22
      will be taken by the Commission regarding matters
    • 00:01:24
      discussed in closed session. All right good morning
    • 00:01:29
      Shelah, Davida, Connie, Barksdale. I like the
    • 00:01:32
      bowtie Barksdale very nice. Good morning Chairman.
    • 00:01:37
      All right. Shelah, will you take us through the
    • Item 0.1 - Commission Counsel Shelah Cisneros lays out Consent Agenda
      00:01:39
      consent agenda, please? Yes. Good morning, Commissioners. Let's
    • 00:01:43
      see. Commissioner Hjaltman filed a memo in Project
    • 00:01:46
      No. 52761 stating that she's recused from items
    • 00:01:51
      four, seven, eight, 15, 16, and 17. By
    • 00:01:56
      individual ballot, the following items are placed on
    • 00:01:59
      your consent agenda. Items two, three, seven, eight,
    • 00:02:04
      10, 11, 13 through fifteen, eighteen and 22
    • 00:02:09
      through 25. Additionally, items 29 and
    • 00:02:13
      38 from the rules and projects section
    • 00:02:16
      were placed on your consent agenda and no
    • 00:02:18
      one signed up to speak on those items.
    • 00:02:20
      You. One other thing, Item No. 20 will
    • Item 0.1 - Chairman Gleeson asks for motion to approve items on Consent Agenda
      00:02:22
      not be taken out. Thank you, Shelah. I'll
    • 00:02:25
      entertain a motion to approve the consent agenda,
    • 00:02:27
      laid out by Shelah. So moved. Second. I have
    • 00:02:30
      a motion and second. All those in favor
    • Item 1 - Public comment for matters that are under the Commission’s jurisdiction...
      00:02:32
      say aye. Aye. Opposed? Motion prevails. Alright. That'll
    • 00:02:36
      take us to Item No. 1 Shelah, public
    • 00:02:38
      comment. Has anyone signed up for public comment
    • 00:02:40
      today? Yes. We have one person that signed
    • 00:02:43
      up for public comment, Joe Jimenez. Mister Jimenez,
    • Item 1 - Joe Jimenez - Former President Windermere Oaks WSC
      00:02:47
      come on up. Good morning. Good morning. I'm
    • 00:02:59
      Joe Jimenez, former volunteer president of the Windmere
    • 00:03:03
      Oaks Water Supply Corporation board of directors, March
    • 00:03:06
      2019 through April 2023. I testified in
    • 00:03:10
      the five zero seven eight eight rate case
    • 00:03:12
      available on the PUC interchange. On February 22,
    • 00:03:15
      representatives from temporary manager answer held a town
    • 00:03:19
      hall meeting to discuss future monthly rates for
    • 00:03:21
      Windermere. The proposed they proposed a rate of
    • 00:03:25
      $382 per month, which is 132% higher than
    • 00:03:31
      the appealed rate in five zero seven eight
    • 00:03:33
      eight. Answer representatives mentioned that PUC staff does
    • 00:03:37
      not support the $382 rate and seeks further
    • 00:03:41
      study to lower it. Also, PUC staff wants
    • 00:03:44
      Windermere to use about $200,000 from a recent
    • 00:03:47
      1,250,000.00 land sale to reduce projected monthly rates
    • 00:03:52
      using 4,000 to $5,000 each month to offset
    • 00:03:56
      expenses. This would reduce the $382 rate by
    • 00:04:01
      only about $18 per month. However, I urge
    • 00:04:04
      the Commissioners to review staff rec staff's recommendation
    • 00:04:08
      in view of the following. In my opinion,
    • 00:04:10
      staff is making another incorrect decision similar to
    • 00:04:13
      their 2023 rates and refunds recommendations. Windermere urgently
    • 00:04:18
      needs two the $200,000 for retrofitting an old
    • 00:04:22
      125,000 gallon storage tank into a clarifier. Retrofit
    • 00:04:27
      plans and finances were in place in 2022
    • 00:04:30
      before PUC staff's rates financially strained the company
    • 00:04:34
      last year. And so let's examine staff's track
    • 00:04:37
      record. Windermere implemented staff rates in March 2024
    • 00:04:41
      per Commission order. Windermere's P&L report
    • 00:04:44
      just released showed that it lost 200,000 in
    • 00:04:47
      2024. To keep water flowing, Windermere Windermere's board
    • 00:04:52
      used a hundred thousand in reserves for the
    • 00:04:54
      loan covenants for the $650,000 loan interest interest
    • 00:04:59
      loan secured in 2020 for the retrofit. Windermere
    • 00:05:03
      used another hundred thousand intended for the clarifier
    • 00:05:05
      retrofit to keep the plant running. But also
    • 00:05:08
      due to PUC staff rates, Windermere defaulted on
    • 00:05:11
      its loan and had to use 560,000 from
    • 00:05:15
      the land sale to repay the the co
    • 00:05:19
      bank. Windermere's daily operator claimed another hundred thousand
    • 00:05:22
      plus from the land sale money because they
    • 00:05:25
      weren't paid out of the 2024 operational bay
    • 00:05:28
      base rates or the reserves. Other land sale
    • 00:05:31
      money paid for legal fees. All of this
    • 00:05:33
      was avoidable. The Commission could have adopted the
    • 00:05:36
      proposal for decision by judges Wiseman and Ciano
    • 00:05:39
      considering Windermere's current financial integrity as had been
    • 00:05:42
      done in previous rate appeals. Instead, the Commission
    • 00:05:45
      followed staff and Commissioner Cobos' recommendations reading TWC
    • 00:05:49
      13043 Section J in harmony
    • 00:05:52
      with section e, leading to when the mirrors
    • 00:05:54
      financial turmoil. I I I have just a
    • 00:05:58
      little bit. Yeah. Go ahead and finish. I
    • 00:05:59
      strongly urge Commissioners to instruct staff to let
    • 00:06:03
      Answer use the remaining land sale proceeds for
    • 00:06:06
      the clarifier retrofit. Failure to do so can
    • 00:06:09
      jeopardize water quality in Windermere as this drought
    • 00:06:12
      at Lake Travis continues. Windermere's pumping barge is
    • 00:06:16
      already near the bottom of its waterhole, delivering
    • 00:06:18
      heavy sediment to the clarifier. It's an old
    • 00:06:21
      clarifier, inadequate to the the needs of the
    • 00:06:26
      of the water company. This will only worsen,
    • 00:06:30
      especially if the lake drops another 20 feet
    • 00:06:32
      like what it easily could. Staff's inattention to
    • 00:06:36
      this critical infrastructure, defunding it in order to
    • 00:06:40
      artificially lower monthly base rates, could add to
    • 00:06:43
      their unenvious record of malfeasance in Windermere. Just
    • 00:06:48
      as I and our board's former treasurer warned
    • 00:06:51
      in early 2023 about staff's disastrous
    • 00:06:54
      rates, I am I am warning today of
    • 00:06:57
      staff's current preference. Thank you for your time.
    • 00:07:00
      Thank you for being here this morning. Shelah,
    • 00:07:04
      is anyone else signed up for public comment?
    • 00:07:06
      No, sir. All right. Thank you. Items two
    • 00:07:09
      and three were on the consent agenda, so
    • 00:07:11
      that'll bring us to Item No. 4. Will
    • Item 4 - Docket No. 54617; Application of Texas Water Utilities, L.P...
      00:07:13
      you lay out item four, please? Yes. Item
    • 00:07:15
      4 is Docket No. 54617, The application of
    • 00:07:19
      Texas Water Utilities and Southern Horizons Development for
    • 00:07:24
      the sale transfer or merger of facilities and
    • 00:07:26
      certificate rights in Liberty and Montgomery Counties. Before
    • 00:07:30
      you is a motion for rehearing filed by
    • 00:07:32
      Texas Water Utilities. The Commission voted to place
    • 00:07:35
      this item on the agenda to consider the
    • 00:07:37
      merits of the motion for rehearing. Chairman Gleeson
    • 00:07:40
      filed a memo, and Commissioner Hjaltman is recused
    • Item 4 - Chairman Gleeson lays out his memo
      00:07:42
      from this item. Thank you, Shelah. So Commissioner
    • 00:07:46
      Jackson, as Shelah said, filed a memo in
    • 00:07:48
      this kind of addressing a few issues. As
    • 00:07:51
      the memo lays out, I recommend we grant
    • 00:07:53
      rehearing for limited purpose and remand this proceeding
    • 00:07:56
      to Docket management to deal with the CCN
    • 00:07:58
      map and the certificate and also deal with
    • 00:08:01
      the tariff issues. I also laid out in
    • 00:08:05
      the memo a timeline. I think we need
    • 00:08:07
      to do this expeditiously as expeditiously as we
    • 00:08:10
      can. So happy to answer questions about the
    • 00:08:12
      memo or get your thoughts. I'm in agreement
    • 00:08:15
      with your memo, particularly the laying out the
    • 00:08:17
      timeline to do it in expeditious manner and
    • 00:08:20
      the detail associated with what we are requesting
    • 00:08:23
      in terms of the map certificates and the
    • Item 4 - Motion to grant rehearing or remand proceeding to Docket Management
      00:08:25
      tariff. Perfect. Then I move that the Commission
    • 00:08:28
      grant rehearing or remand this proceeding to Docket
    • 00:08:30
      management consistent with my memo. I second. All
    • 00:08:34
      those in favor say aye. Aye. Opposed? Motion
    • 00:08:37
      prevails. That will take us to Item No.
    • 00:08:42
      five. Shelah, will you lay out item five,
    • Item 5 - Docket No. 55808 – Petition of MM Terrell 1098, LLC to Amend Rose Hill Special Utility...
      00:08:44
      please? Item 5 is Docket No. 55808, the
    • 00:08:49
      petition of M. M. Terrell, 1098
    • 00:08:52
      to amend Rose Hill Special Utility Districts
    • 00:08:57
      CCN in Kaufman County by streamlined expedited release.
    • 00:09:01
      Before you is a motion for rehearing filed
    • 00:09:03
      by Rose Hill. The Commission voted to place
    • 00:09:06
      this item on the agenda for the sole
    • 00:09:08
      purpose of extending time to act on the
    • 00:09:10
      motion. Thank you, Shelah. I'm happy to extend
    • 00:09:13
      time as we typically do on these. I'm
    • Item 5 - Motion to extend time to act on motion for rehearing to max amount
      00:09:15
      as well. I'm as well. Okay. I'd entertain
    • 00:09:18
      a motion to extend time to act on
    • 00:09:19
      the motion for rehearing to the maximum amount
    • 00:09:22
      authorized by law. So moved. Second. I have
    • 00:09:24
      a motion and a second. All those in
    • 00:09:26
      favor, aye. Aye. Opposed? Motion prevails. Shelah, will
    • Item 6 - Docket No. 56171 – Petition for an Emergency Order Appointing a Temporary Manager...
      00:09:30
      you lay out item 6, please? This is
    • 00:09:32
      Docket No. 56171, petition
    • 00:09:36
      for an emergency order appointing a temporary manager
    • 00:09:39
      to blue serious without a hearing. Commission staff
    • 00:09:43
      all this petition and before you is the
    • 00:09:45
      emergency order followed by the executive director. The
    • 00:09:49
      decision before you is to affirm, modify, or
    • 00:09:51
      set aside the emergency order. So looking at
    • 00:09:53
      this, I believe we should affirm the emergency
    • 00:09:56
      order. Happy to hear your thoughts. I'm in
    • Item 6 - Motion to affirm emergency order filed by Exec. Director
      00:09:58
      agreement as well. I'm in agreement. I'd entertain
    • 00:10:01
      a motion to affirm the emergency order filed
    • 00:10:03
      by the executive director. So moved. Second. I
    • 00:10:06
      have a motion and a second. All those
    • 00:10:07
      in favor say aye. Aye. Opposed? Motion prevails.
    • 00:10:11
      Item seven and eight were on the consent
    • 00:10:13
      agenda. That'll take us to item nine. Shelah,
    • Item 9 - Docket No. 56974 – Application of SJWTX, Inc. dba the Texas Water Company to Amend Its System Improvement Charges
      00:10:15
      will you lay out item 9, please? This
    • 00:10:17
      is Docket No. 56974, the application of SJWTX,
    • 00:10:24
      doing business as Texas Water Company, to amend
    • 00:10:27
      its system improvement charge. Before you is a
    • Item 9 - Chairman & Commissioner's thoughts on the application
      00:10:30
      revised proposal for decision. So the Commission recently
    • 00:10:34
      denied an application for a system improvement charge.
    • 00:10:37
      I don't think we need to do that
    • 00:10:39
      here. In this particular case, I'd recommend that
    • 00:10:43
      we remand this proceeding to document management and
    • 00:10:45
      allow Texas Water to, you know, have the
    • 00:10:47
      opportunity to provide additional information. There are a
    • 00:10:50
      couple issues. One, the the Commission rule requires
    • 00:10:53
      that the application provide, an explanation of how
    • 00:10:56
      each project will improve service, and Texas Water
    • 00:11:00
      provided only kind of general statements as to
    • 00:11:02
      how this overall will affect their service, not
    • 00:11:07
      each project. And second, on remand, if we
    • 00:11:10
      go that way, I believe Texas Water should
    • 00:11:13
      look at the project descriptions in the application.
    • 00:11:16
      In some cases, there's just one line in
    • 00:11:17
      general description. I don't think it really meets
    • 00:11:20
      the spirit of the rule. So that's kind
    • 00:11:23
      of the tact I would take on this,
    • 00:11:24
      but happy to hear your thoughts. I'm in
    • 00:11:26
      agreement as well. I think when we have
    • 00:11:28
      these applications come before us, it's important that
    • 00:11:31
      we have the detail that we need associated
    • 00:11:35
      with each of the projects. It's in my
    • 00:11:38
      opinion, it's well spelled out in the rule
    • 00:11:40
      in terms of the type of information that
    • 00:11:42
      we need. And I think again, think it's
    • 00:11:44
      incumbent on the utility that's asking for the
    • 00:11:47
      system improvement charge to provide the kind of
    • 00:11:52
      detail and due diligence so that it is
    • 00:11:54
      easily understood and is well organized. And so
    • 00:11:57
      I would remand it back as well. And
    • 00:11:59
      I think that's an important point. The legislature
    • 00:12:02
      wanted these to be fast, to be streamlined,
    • 00:12:05
      but in order for that to work, we
    • 00:12:06
      need to get the information that's required by
    • 00:12:07
      the rule and the statute. I'm in agreement
    • 00:12:10
      with, as you both stated, for the demand
    • 00:12:13
      for the clarification and further description of each
    • Item 9 - Motion to reject proposal for decision
      00:12:16
      item. Okay. So I would move that we
    • 00:12:20
      reject the proposal for decision to remain the
    • 00:12:22
      application and document management for further processing consistent
    • 00:12:25
      with our discussion. So moved. Second. Motion is
    • 00:12:28
      second. All those in favor say aye. Aye.
    • 00:12:30
      Opposed? Motion prevails. All right. That items ten
    • 00:12:35
      and eleven were on the consent agenda, that
    • 00:12:37
      will take us to item 12. Will you
    • Item 12 - Docket No. 57386 – Application of CSWR-Texas Utility Operating Company, LLC for Authority to Change Rates
      00:12:38
      lay out item 12, Shelah? This is Docket
    • 00:12:41
      No. 5700386, the application of CSWR, Texas Utility
    • 00:12:47
      Operating Company, for authority to change rates. Before
    • 00:12:50
      you is a draft preliminary order, and Chairman
    • Item 12 - Chairman Gleeson lays out his memo
      00:12:53
      Gleeson filed a memo. Thank you, Shelah. So
    • 00:12:55
      in my memo, based on the application, my
    • 00:12:59
      feeling was that this application should be processed
    • 00:13:02
      as a Class B application, that we should
    • 00:13:04
      accept it accept the Class A and not
    • 00:13:06
      make them refile because everything we need in
    • 00:13:09
      a Class B filing is there in a
    • 00:13:11
      Class A. I will say that after my
    • 00:13:14
      memo, CSWR filed a response stating that they
    • 00:13:21
      believe that the law speaks to taps and
    • 00:13:25
      connections, and given that, they should be treated
    • 00:13:28
      as a Class A. I think we kind
    • 00:13:31
      of have two paths here. I think we
    • 00:13:32
      can go the direction my memo asked us
    • 00:13:35
      to go, or we could add this as
    • 00:13:37
      an issue when it goes to SOAH in
    • 00:13:40
      order have them deal with it. I will
    • 00:13:43
      say, in looking I asked staff to look
    • 00:13:46
      at the application. We I got some additional
    • 00:13:48
      briefing on this this morning after reading their
    • 00:13:50
      letter. I feel like their application was submitted
    • 00:13:53
      in a way that it doesn't talk about
    • 00:13:55
      these inactive TAPs connections. I believe the rule
    • 00:14:01
      is pretty clear that when you provide water
    • 00:14:03
      and sewer service, the way we'll determine which
    • 00:14:06
      classification you are is based on active connections.
    • 00:14:09
      And so if you all want, I can
    • 00:14:12
      get comfortable with having this as an issue
    • 00:14:15
      at SOAH, but I think based on the
    • 00:14:18
      record and their application, I think this probably
    • 00:14:21
      should be processed as Class B application. I'm
    • 00:14:26
      in agreement in reading their application and how
    • 00:14:28
      they worded it themselves. It was in such
    • 00:14:30
      a way that they provided the number of
    • 00:14:33
      connections. We went based off of that. If
    • 00:14:35
      it was going to be different, they should
    • 00:14:37
      have provided a different number. So I agree
    • 00:14:39
      with the Class B. I think it's pretty
    • 00:14:41
      clear that in our rules that the number
    • 00:14:44
      of active water connections determines how the utility
    • 00:14:48
      is classified. And so I would be supportive
    • 00:14:51
      of allowing them to move forward and process
    • Item 12 - Motion to modify preliminary order
      00:14:56
      their application as a Class B. Okay. So
    • 00:14:59
      I'd entertain a motion to modify the preliminary
    • 00:15:01
      order consistent with my memo. So moved. Second?
    • 00:15:05
      I have a motion and a second. All
    • 00:15:06
      those in favor say aye. Aye. Opposed? Motion
    • 00:15:09
      prevails. Items 13 through 15 were on the
    • 00:15:14
      consent agenda. They'll take us to item 16.
    • 00:15:17
      Shelah, will you lay out item 16, please?
    • Item 16 - Docket No. 56211; SOAH Docket No. 473-24-13232 – Application of CenterPoint Energy Houston Electric, LLC for Authority to Change Rates
      00:15:19
      Yes. This is Docket No. 56211,
    • 00:15:22
      the application of CenterPoint Energy Houston
    • 00:15:25
      Electric for authority to change rates. Before you
    • 00:15:29
      is a revised proposed order that addresses an
    • 00:15:31
      unopposed agreement. Chairman Gleeson filed a memo in
    • 00:15:34
      this Docket, and Commissioner Hjaltman is recused from
    • 00:15:36
      this item. So, Commissioner Jackson, as Shelah said,
    • 00:15:40
      filed a memo on this mostly related to
    • 00:15:43
      $5,200,000 in one time refund and how that
    • 00:15:47
      should be treated, And my feeling that it
    • 00:15:50
      should be treated as a refund that we
    • 00:15:53
      deal with through a compliance Docket just so
    • 00:15:55
      that money can more efficiently get back to
    • 00:15:58
      where it needs to go and be refunded
    • 00:15:59
      to customers, but happy to hear your thoughts.
    • 00:16:02
      I think that's a good catch on your
    • 00:16:03
      part. Just a different method of being able
    • 00:16:07
      to recover the $5,200,000 in a way that
    • 00:16:12
      gets to the ratepayers more quickly. I'm in
    • 00:16:15
      agreement with what's been proposed and would recommend
    • 00:16:20
      consistent with your memo that we move forward
    • Item 16 - Motion to approve revised proposed order
      00:16:22
      with this. Okay. So I move that we
    • 00:16:24
      approve the revised proposed order consistent with the
    • 00:16:27
      changes outlined in my memo. I second. All
    • 00:16:29
      those in favor say aye. Aye. Opposed? Motion
    • 00:16:32
      prevails. Alright. That will take us then to
    • 00:16:38
      Item No. 17. Shelah, would you lay out
    • Item 17 - Docket No. 56440 – Application of New Braunfels Utilities to Change Transmission Cost of Service and Wholesale Transmission Rates
      00:16:40
      item 17, please? This is Docket No. 56440,
    • 00:16:44
      the application of New Braunfels utilities to change
    • 00:16:47
      transmission cost of service and wholesale transmission rates.
    • 00:16:51
      Before you is a motion for rehearing filed
    • 00:16:54
      by New Braunfels. The Commission voted to place
    • 00:16:56
      this item on the agenda to consider the
    • 00:16:58
      merits of the motion, and Commissioner Hjaltman is
    • 00:17:01
      recused from this item. Commissioner Jackson, looking at
    • 00:17:05
      everything that was in this Docket and the
    • 00:17:07
      arguments, I think I'm comfortable denying the motion
    • Item 17 - Motion to deny motion for rehearing
      00:17:10
      for rehearing. Uncomfortable as well. Okay. So I
    • 00:17:15
      move that we deny the motion for rehearing.
    • 00:17:17
      I second. Motion is second. All those in
    • 00:17:19
      favor say aye. Aye. Opposed? Motion prevails. Item
    • 00:17:23
      18 was on the consent agenda, so that
    • 00:17:26
      will bring us to item 19. Shelah, will
    • Item 19 - Docket No. 56954; SOAH Docket No. 473-24-25125 – Application of Texas-New Mexico Power Company for Approval of a System Resiliency Plan
      00:17:28
      you lay out item 19, please? Item 19
    • 00:17:30
      is Docket No. 56954, the application of Texas
    • 00:17:34
      New Mexico Power Company for approval of a
    • 00:17:37
      system resiliency plan. Before you is a second
    • 00:17:41
      corrected proposed order that addresses an unopposed agreement
    • 00:17:44
      in this Docket and is before you now.
    • 00:17:47
      Thank you, Shelah. So we've had a lot
    • 00:17:49
      of discussion about this item. Had time to
    • 00:17:53
      kind of take back and think about what's
    • 00:17:55
      been said. Happy to hear if you all
    • 00:17:57
      have any additional thoughts or how you think
    • Item 19 - Commissioner Hjaltman's thoughts on application
      00:17:59
      we should proceed. Well, I guess I can
    • 00:18:03
      speak to the I obviously filed a memo.
    • 00:18:06
      First, let me say that I believe the
    • 00:18:08
      resiliency plans, they're intended to enhance utilities' resiliency
    • 00:18:12
      and obviously you know, go beyond the normal
    • 00:18:14
      business operations for the utility. I filed my
    • 00:18:17
      memo February 19 in regards to the resiliency
    • 00:18:20
      plan. My thinking is that the two underground
    • 00:18:23
      programs still do not seem justified, and they're
    • 00:18:27
      they're not something that should be in this,
    • 00:18:29
      plan going forward. I don't think that TNMP
    • 00:18:32
      has showed that they have the
    • 00:18:33
      experience. I don't think there's metrics chat tied
    • 00:18:35
      to them to be able to judge whether
    • 00:18:37
      or not, there's any anything gained. So in
    • 00:18:42
      accordance with the memo filed, I would still
    • 00:18:44
      say that I feel those two should be
    • 00:18:46
      pulled out. And then I know TNMP
    • 00:18:49
      provided a letter and filed that too,
    • 00:18:52
      that was helpful. I do not think that
    • 00:18:54
      they provided me accurate or enough accounting of
    • 00:18:58
      what the $88,000,000 would be used for. I
    • 00:19:01
      know that our statute allows for vegetation management
    • 00:19:04
      to be included in these resiliency plans, but
    • 00:19:06
      and I want to see a proactive process,
    • 00:19:09
      but the resiliency plan is not intended replace
    • 00:19:11
      mechanisms that are already put forth that a
    • 00:19:14
      utility can use in their basic operations. So
    • 00:19:17
      I would say, you know, I would I
    • 00:19:20
      would follow my memo in regards to bringing
    • 00:19:23
      that amount down to 46,000,000. I do think
    • 00:19:26
      TNMP's letter provided enough additional information to allow
    • 00:19:29
      for the enhanced tree assessment mitigation. I I
    • 00:19:33
      think you, myself, were very aware of how
    • 00:19:36
      trees can impact resiliency, especially with the storms
    • 00:19:40
      we have here in Texas. So I would
    • 00:19:42
      be favorable of allowing that to be included
    • 00:19:45
      still. So I think doing the math, that
    • 00:19:48
      would have the overall impact to consumers coming
    • 00:19:52
      to 891 instead of the 851
    • 00:19:54
      as filed in my memo. So
    • 00:19:56
      that's kinda where I am at this point.
    • 00:20:00
      And 891 is a number you're
    • 00:20:02
      you're comfortable with given the benefits of Given
    • 00:20:04
      the billing benefits and weighing the mitigation that
    • 00:20:08
      would occur from the information provided, I think
    • Item 19 - Commissioner Jackson's thoughts on application
      00:20:11
      so. Yes. Commissioner Jackson? And I think further
    • 00:20:14
      to that, the two programs that you are
    • 00:20:17
      suggesting that be removed also didn't have any
    • 00:20:21
      BC ratios provided associated with those. And the
    • 00:20:25
      enhanced tree risk assessment program was part of
    • 00:20:28
      the overall BC ratio for the suggested proactive
    • 00:20:35
      vegetation management over the twenty year cycle. So
    • 00:20:38
      what you're proposing is that we not that
    • 00:20:41
      we do a portion of that and the
    • 00:20:43
      portion that's outlined in your memo. I think
    • 00:20:47
      this is a good path forward. I think
    • 00:20:51
      it gives us a way to address the
    • 00:20:55
      increased cost to the residential consumer. I think
    • 00:20:59
      that's important, but at the same time, to
    • 00:21:02
      kind of address and get started on vegetation
    • 00:21:04
      management because quite frankly, they've been reactive. There
    • 00:21:08
      are many other utilities across the state that
    • 00:21:10
      have had programs in place that are cyclic
    • 00:21:15
      for quite some time and that are, in
    • 00:21:17
      effect, moving to something that's more technology based
    • 00:21:20
      in terms of term determining what areas provide
    • 00:21:25
      the most risk associated with vegetation management, and
    • 00:21:29
      they address those in a way using lidar
    • 00:21:31
      and some of the other technology that's out
    • 00:21:33
      there. I did want to recognize, and I
    • 00:21:36
      think this was good, that they included in
    • 00:21:40
      their projects a remote sensing of 3.2, which
    • 00:21:44
      would still be in there. Hopefully that gets
    • 00:21:45
      them started on that path, as well as
    • 00:21:49
      that would provide some, I think, some good
    • 00:21:51
      data and information that they need in terms
    • 00:21:53
      of addressing wildfires. So I did want to
    • 00:21:56
      call that out, because I think that is
    • 00:21:58
      a key element. And then also the fact
    • 00:22:00
      that their situational awareness, they told us last
    • 00:22:03
      time that that had been a very high
    • 00:22:05
      number. And I guess through going back and
    • 00:22:08
      talking with people who were going to, you
    • 00:22:10
      know, provide that contracted service, they were able
    • 00:22:13
      to, you know, keep that that same scope
    • 00:22:16
      in there, but the cost went from 25,100,000.0
    • 00:22:19
      to 8,500,000.0. So I thought those were two
    • 00:22:22
      really good projects that really kind of set
    • 00:22:25
      us on the path that we need moving
    • 00:22:27
      forward to utilize technology. So I'm very much
    • 00:22:31
      in agreement with what you're proposing in terms
    • 00:22:35
      of the overall projects and the spin. There
    • 00:22:38
      is one thing that I I would like
    • 00:22:41
      to kind of bring up from our previous
    • 00:22:42
      discussion and kind of get y'all's thoughts on
    • 00:22:46
      it. I think it would be helpful for
    • 00:22:47
      us to know as we kind of evaluate
    • 00:22:50
      the performance of these plans across the state
    • 00:22:52
      to have similar metrics. And we've had, you
    • 00:22:55
      know, two previous plans that included a ratio
    • 00:22:58
      of customer minutes interrupted as well as the
    • 00:23:01
      ratio of avoided system restoration cost in their
    • 00:23:04
      evaluation metrics. And so I would like to
    • 00:23:08
      consider having TMMP incorporate these metrics into their
    • 00:23:14
      plan moving forward. I think that's a proper
    • 00:23:17
      way to do this. I think we want
    • 00:23:19
      those in all of these. I'm in agreement.
    • 00:23:22
      I think that would be helpful, especially the
    • 00:23:24
      others have included them. So moving forward, they
    • 00:23:26
      should all have those as well. Commissioner Hjaltman,
    • 00:23:30
      I'm in support of your memo as well
    • 00:23:33
      as kind of the change. I want to
    • 00:23:36
      thank both of you for diving into this
    • 00:23:39
      and really looking at it. A lot of
    • 00:23:42
      work. We've had a lot of discussion about
    • 00:23:43
      this plan. Commissioner Hjaltman, I want to thank
    • 00:23:46
      you. You, you know, with your memo and
    • 00:23:47
      and your leadership on this, I think, really
    • 00:23:50
      beneficial to our discussion and and the I
    • 00:23:52
      think coming to the right outcome. So I
    • 00:23:55
      I have motion language, but I'm also happy
    • 00:23:58
      to to lean on you if you would
    • Item 19 - Shelah Cisneros' clarifying question to Commissioner Jackson
      00:24:01
      like to make the motion on this. Chairman?
    • 00:24:03
      Yes, ma'am. Commissioner, may we jump in and
    • 00:24:05
      ask a clarifying Thank you. Always. Thank you.
    • 00:24:11
      Commissioner Jackson, at the end, you talked about
    • 00:24:15
      the similar metrics and I heard you say
    • 00:24:17
      incorporate those moving forward. Are you can you
    • 00:24:22
      help me with the timing on this? Is
    • 00:24:23
      your expectation then for incorporating it in this
    • 00:24:27
      proceeding or incorporating it in any future proceedings?
    • 00:24:30
      Incorporating in this proceeding. In this proceeding. Alright.
    • 00:24:33
      Thank you. Let me just pause for a
    • 00:24:35
      moment. Do we have the specifics we need
    • Item 19 - Motion to modify proposed order
      00:24:38
      for that? Alright. Thank you, Shelah. I move
    • 00:24:44
      that we modify the proposed order consistent with
    • 00:24:46
      my memo filed February 9 as well as
    • 00:24:48
      modified by the discussion today. I second. We
    • 00:24:52
      have a motion and a second. All those
    • 00:24:53
      in favor say aye. Aye. Opposed? Motion prevails.
    • 00:24:59
      Alright. Item 20 was on the consent agenda.
    • 00:25:01
      That'll bring us to Item No. 21. Shelah,
    • 00:25:03
      will you lay out item 21, please? Sure.
    • 00:25:05
      And just to clarify for item 20, it
    • 00:25:07
      was not consented. It was but it's not
    • 00:25:08
      taken It was not taken up. Yep. You're
    • 00:25:11
      correct that it was on the sequence agenda
    • 00:25:12
      consent agenda, but I just don't want there
    • Item 21 - Docket No. 57160 – Complaint of Frank Chou Against CenterPoint Energy Houston Electric, LLC
      00:25:14
      to be any confusion on that. Alright. Let's
    • 00:25:18
      see. Item 21 is Docket No. 57160. The
    • 00:25:23
      complaint of Frank Chou against CenterPoint Energy Houston
    • 00:25:27
      Electric. Before you is a proposal for decision.
    • 00:25:31
      A Commission Counsel memo was filed recommending changes
    • 00:25:34
      to the order if it is approved, and
    • 00:25:36
      the Commission voted to grant oral argument in
    • 00:25:38
      this Docket. We have three parties that have
    • 00:25:40
      signed up for oral argument. And one question
    • 00:25:43
      I have is about the time limits for
    • 00:25:44
      this one. Yeah. Thank you, Shelah. So, typically,
    • 00:25:47
      we allow three minutes with only three parties,
    • 00:25:50
      and one of them being pro se. I'd
    • 00:25:52
      recommend we we give five minutes to each
    • 00:25:54
      of the parties if you're amenable to that.
    • 00:25:56
      I'm in agreement. Okay. So, Shelah, we'll do
    • 00:25:59
      five minutes. Alright. Will all three of the
    • 00:26:01
      parties approach? Mister Chou, am I pronouncing your
    • 00:26:03
      name correctly? Yes. Okay. Great. And before we
    • 00:26:07
      start, let me ask you a question. Mister
    • 00:26:09
      Chou, under our rules, the applicant has the
    • 00:26:12
      choice of whether to open or close or
    • 00:26:15
      have a little bit of time for each.
    • 00:26:17
      Would you like to go first or would
    • 00:26:18
      you like to go last? I'd like to
    • 00:26:21
      go to go last. You wanna go last?
    • 00:26:22
      Alright. Alright. Then let's start with CenterPoint and,
    • Item 21 - Patrick Peters - Associate General Counsel - CenterPoint Energy
      00:26:28
      Patrick Peters, for CenterPoint. Yes. Thank you. Good
    • 00:26:31
      morning, Chairman and Commissioners. I'm Patrick Peters, associate
    • 00:26:34
      general counsel and vice president for CenterPoint Energy.
    • 00:26:37
      At CenterPoint, we take seriously our responsibility to
    • 00:26:41
      provide our customers with safe and reliable service,
    • 00:26:44
      and we appreciate each and every one of
    • 00:26:46
      those customers. When issues arise, we work hard
    • 00:26:49
      to resolve those informally, and in the vast
    • 00:26:51
      majority of cases, we're able to do so.
    • 00:26:54
      In this case, unfortunately, the company and the
    • 00:26:56
      customer have been unable to reach agreement about
    • 00:26:58
      the application of an important and long standing
    • 00:27:01
      Commission safety rule. Commission rules in the company's
    • 00:27:04
      tariff require a DG facility interconnected to the
    • 00:27:08
      utility's grid to comply with certain operational and
    • 00:27:11
      safety requirements. One such requirement is that the
    • 00:27:14
      facility have a manual disconnect device with a
    • 00:27:17
      with a visible break. And you could think
    • 00:27:19
      about this like a handle on a box
    • 00:27:21
      that you can pull down, see that it's
    • 00:27:23
      that the breaker is open, and then lock
    • 00:27:25
      it in place open. This device allows utility
    • 00:27:29
      personnel to confirm that the DG is disconnected
    • 00:27:31
      from the grid so it can't unintentionally back
    • 00:27:34
      feed energy onto a de energized line when
    • 00:27:37
      utility crews are doing maintenance on that line.
    • 00:27:39
      And the fundamental purpose of this, of course,
    • 00:27:41
      is a safety purpose, and it's been in
    • 00:27:43
      place in the Commission's rules for at least
    • 00:27:45
      twenty five years. We've interconnected many, many g
    • 00:27:49
      DG facilities on our system that use such
    • 00:27:52
      a device, and the PFD in this case
    • 00:27:55
      recommends dismissing the complaint for the simple reason
    • 00:27:58
      that the facility that mister Chou proposes to
    • 00:28:00
      interconnect to our system doesn't have this device
    • 00:28:03
      as required by the Commission's rules and our
    • 00:28:06
      tariff. There appears to be a discussion in
    • 00:28:08
      some of his documents that this rule doesn't
    • 00:28:11
      make sense or should be changed. The company
    • 00:28:14
      supports the existing rule. We believe that it
    • 00:28:16
      really is the frontline of defense for utility
    • 00:28:18
      workers that are working on systems where a
    • 00:28:20
      DG facility is present. But if there is
    • 00:28:23
      a desire to change the requirement, we would
    • 00:28:25
      respectfully request that that be done through a
    • 00:28:27
      rulemaking rather than through this complaint proceeding so
    • 00:28:30
      that all interested stakeholders, including other customers and
    • 00:28:33
      other utilities, would have an opportunity to participate.
    • 00:28:38
      So we would just ask the Commission to
    • 00:28:39
      adopt the PFD and dismiss this complaint from
    • Item 21 - Glen Imes - Attorney - Commission Staff
      00:28:41
      its Docket. Alright. Next is Commission staff. Thank
    • 00:28:48
      you. Glenn Ives with Commission Staff. We, I
    • 00:28:51
      agree with and we reiterate, mister Peter's comments
    • 00:28:56
      on this matter. We agree that summary disposition
    • 00:28:58
      is appropriate in this particular matter, particularly for
    • 00:29:00
      the reasons laid out by mister Peters. Summary
    • 00:29:03
      disposition is appropriate when there is no there
    • 00:29:06
      are no material facts genuinely in dispute, and
    • 00:29:08
      we believe that that is the case here.
    • 00:29:11
      The the purpose of summary disposition is is
    • 00:29:13
      about judicial economy to preserve state resources to
    • 00:29:16
      not allow a matter to go to a
    • 00:29:18
      formal hearing, just as a matter of formality,
    • 00:29:21
      but when there's no true issues in dispute
    • 00:29:23
      that truly need to be litigated. At least
    • 00:29:26
      based on my understanding, Mr. Chou does
    • 00:29:29
      not dispute the fact that his his system
    • 00:29:31
      does not have a visual break, and that
    • 00:29:34
      is what the what the rule requires. And,
    • 00:29:36
      again, as mister Peters reiterated, he simply takes
    • 00:29:40
      issue with the rule. He believes it's outdated,
    • 00:29:42
      does not comply with the National Electric Code,
    • 00:29:45
      which of course is not the standard. Texas
    • 00:29:46
      law is the standard here. And that being
    • 00:29:50
      said, the rule currently in place does require
    • 00:29:53
      that visual break. And again, I would also
    • 00:29:56
      reiterate the same comments regarding this not being
    • 00:29:58
      the proper proceeding for changing that rule or
    • 00:30:00
      challenging that rule. There are proper procedures under
    • 00:30:02
      the APA for challenging the validity of a
    • 00:30:05
      rule and for an agency to change the
    • 00:30:07
      rule. And unfortunately, this is not it. So
    • 00:30:09
      we do agree that summary disposition is appropriate.
    • 00:30:13
      Thank you. Okay. I'm gonna pause for just
    • 00:30:15
      a moment. And Mr. Chou, we have a
    • 00:30:17
      court reporter here, and she transcribes everyone's conversations.
    • 00:30:21
      So if you could speak into the microphone
    • 00:30:22
      so she can hear you that would be
    • 00:30:23
      great. This is the microphone. Yes. You might
    • 00:30:26
      want move it a little bit closer. Great.
    • Item 21 - Frank Chou - Texas Farmer
      00:30:29
      Thank you. Thank you. My name is Frank
    • 00:30:33
      Chou. I'm a person at the farm and
    • 00:30:40
      I got this permission from my system in
    • 00:30:46
      2014 At the last year, I tried to
    • 00:30:58
      add the storage in my system. And because
    • 00:31:03
      of the storage, have to change the inverter.
    • 00:31:07
      But the solar panel is identical, no change,
    • 00:31:11
      because that is fourteen years ago eleven years
    • 00:31:15
      ago. And then they say, if you want
    • 00:31:20
      to do such at the store, you have
    • 00:31:23
      to reapply, okay. So I reapply, but then
    • 00:31:28
      there's for some unknown reason, they say the
    • 00:31:33
      device you put there is not acceptable by
    • 00:31:37
      the center point. So we have been going
    • 00:31:43
      through this since September and here now. And
    • 00:31:49
      the final reply, I'd like to read from
    • 00:31:53
      the CenterPoint Energy. It says, complaints exception state
    • 00:32:00
      that his proposed disconnect device should be approved
    • 00:32:06
      because it has a visible onoff switch. It
    • 00:32:11
      does not dispute that the actual break is
    • 00:32:16
      enclosed in a molded plastic case and not
    • 00:32:21
      visible as such Only this tribute is the
    • 00:32:29
      generation disconnect mechanism that have a visual brake
    • 00:32:35
      are permitted by the Commission rule, okay. That's
    • 00:32:39
      what their final argument. So I write a
    • 00:32:47
      rebuttal to their final argument. And until now,
    • 00:32:52
      I don't receive any reply from response from
    • 00:32:56
      them. But I like to do such argument.
    • 00:33:00
      I say the extra break is enclosed in
    • 00:33:04
      a molded plastic case and now the visual
    • 00:33:09
      accessible. That's what they claim. I say it's
    • 00:33:14
      observed. Because the utility person required to do
    • 00:33:19
      in this case is to either turn on
    • 00:33:22
      the switch or turn off the switch. So
    • 00:33:26
      either we'll disconnect the power from the meter
    • 00:33:31
      from the service. So they also have all
    • 00:33:37
      the connection in the panel. This is called
    • 00:33:41
      the the panel I have is called the
    • 00:33:44
      service disconnect. So what the utility person needed
    • 00:33:49
      to do is to turn on or turn
    • 00:33:52
      off to disconnect or connect. Or they can
    • 00:33:57
      check the connection on the each terminal. Like
    • 00:34:02
      I say, the meter has three, two hard
    • 00:34:05
      line, one neutral line go to the panel.
    • 00:34:10
      Then the output is go to the inverter.
    • 00:34:15
      So all those connect is in the panel.
    • 00:34:19
      So the servicemen can actually see exactly what
    • 00:34:23
      you needed to do. So why they say
    • 00:34:29
      the breaker is enclosing a module plastic? This
    • 00:34:34
      has nothing to do with the function of
    • 00:34:37
      this device. Because this device defined by NEC
    • 00:34:43
      2023 code is a service disconnect.
    • 00:34:48
      That is the most updated electric code, but
    • 00:34:54
      they deny that. So basically, that's my argument.
    • 00:35:02
      The device they propose is called the safety
    • 00:35:06
      switch. The problem with the safety switch is
    • 00:35:10
      they don't have the overload protection. Actually, put
    • 00:35:15
      the people work on it. Very dangerous actually,
    • 00:35:28
      the device they have proposed. And also because
    • 00:35:32
      I have a hybrid inverter, either one disconnect
    • 00:35:38
      automatically if the service is if the grade
    • 00:35:44
      is failed. They don't need to do anything
    • 00:35:48
      because the inverter itself has this self safety
    • 00:35:53
      protection. But this insist say, unless I change
    • 00:36:00
      my device into a less safe device, then
    • 00:36:04
      they will permit me to sell my actual
    • 00:36:09
      electricity to the grid. So I really don't
    • 00:36:13
      understand what the mean call the actual break
    • 00:36:18
      is encoded in a molded plastic case. What
    • 00:36:21
      does it mean? I don't understand at all.
    • 00:36:23
      What that to do is the utility for
    • 00:36:26
      the so you tell them don't need to
    • 00:36:27
      do anything on that on the electric panel.
    • 00:36:31
      If the panel is failed, then replace the
    • 00:36:34
      panel. Right? So so what what does it
    • 00:36:38
      mean? And I so far, I don't understand.
    • 00:36:41
      So I think they need to give me
    • 00:36:42
      a formal response before decision. The case is
    • 00:36:47
      approved or dismissed. Thank you for being here
    • 00:36:51
      this morning. Commissioners, do you have any questions
    • 00:36:53
      for any of the parties? I have one
    • 00:36:57
      question. So, you know, I read some of
    • 00:37:01
      the things that you had sent in and
    • 00:37:04
      you'd filed, and it sounded like that you
    • 00:37:07
      were concerned that because of all of the
    • 00:37:11
      technological change that had happened over time, that
    • 00:37:14
      maybe the system that is in place right
    • 00:37:16
      now wasn't necessarily as safe or risk avert
    • 00:37:21
      as it needed to be. Yes. And and
    • 00:37:25
      so is there is there a way that
    • 00:37:27
      we can we can, I guess, more better
    • 00:37:34
      understand that? I mean, it it's almost like
    • 00:37:36
      you're concerned that the system that's in place
    • 00:37:39
      right now that's called that is required has
    • 00:37:44
      some safety issues. That's right. Yes. Because the
    • 00:37:51
      a safety switch, basically is going to have
    • 00:37:55
      overload protection. Basically, it cannot be even used
    • 00:37:59
      in my inverter because my inverter requires an
    • 00:38:05
      overload protection. So the device proposed by CenterPoint
    • 00:38:11
      Energy, they don't have the overload protection. They
    • 00:38:14
      just have safety switch. It's very old product.
    • 00:38:19
      So before even the utility people to push
    • 00:38:24
      to pull the handle, they have to protect
    • 00:38:27
      them first. They have to wear either cloth
    • 00:38:29
      or whatever because it may be electrocuted in
    • 00:38:35
      case if you don't have overload protection. But
    • 00:38:40
      the device I'm using is actually identical to
    • 00:38:44
      all the main service panel in all of
    • 00:38:48
      household. The only difference, the device I'm using
    • 00:38:52
      only have one breaker. But the main service
    • 00:38:56
      panel have one breaker plus all maybe fifteen,
    • 00:39:00
      sixteen breaker. So distribute the electricity from the
    • 00:39:06
      meter to all the loads in the household.
    • 00:39:10
      So one device I proposed is from Siemens.
    • 00:39:16
      It is a well known manufacturer. They produced
    • 00:39:19
      this product about two years ago. It's kind
    • 00:39:23
      of new thing. But if you go to
    • 00:39:26
      the Internet, you can see a lot of
    • 00:39:28
      people using it right now. I said, service
    • 00:39:30
      disconnect. I'm not the first one using it.
    • 00:39:34
      I just look what available in the market.
    • 00:39:40
      And I bought from like a either Home
    • 00:39:43
      Depot or Amazon. So it's it's very popular.
    • 00:39:47
      They they you can see very several a
    • 00:39:51
      lot of actually, I already found a three,
    • 00:39:53
      four video talk about this. So it's a
    • 00:39:57
      good device. And some, like, a professional, they
    • 00:40:02
      they are very favor this one. They say
    • 00:40:04
      it's cheaper, it's safe, it provides much better
    • 00:40:10
      protection to the utility person, especially to me
    • 00:40:15
      because I'm doing my own electric electric work.
    • 00:40:21
      Okay. So I don't see any reason they
    • 00:40:26
      deny my access to the grade. Okay? Right
    • 00:40:32
      now, I cannot sell to the grade because
    • 00:40:35
      of my inverter has a function, no sale.
    • 00:40:40
      So I turned that off because they complain,
    • 00:40:44
      if I sell to the grid, it will
    • 00:40:47
      have danger to the utility person. That's a
    • 00:40:50
      complete force because the inverter only was sell
    • 00:40:56
      back when they know the grid is in
    • 00:40:58
      function. If the grid is fail, it's automatically
    • 00:41:03
      cut off. Okay. That is all the device
    • 00:41:08
      sell in The United States. If you want
    • 00:41:11
      to go to grid, you have to cut
    • 00:41:13
      off yourself in the grade. It's failed. But
    • 00:41:17
      they send me two letters to warn me.
    • 00:41:20
      They because that time, I'm testing my device.
    • 00:41:24
      Oh, you cannot sell back. You sell back.
    • 00:41:26
      I'm going to shut down your service. I
    • 00:41:30
      said, that's I I don't understand what they're
    • 00:41:33
      talking about. I have this this solar panel
    • 00:41:37
      is is not so new. It's already more
    • 00:41:41
      than ten, twenty year history. Why they don't
    • 00:41:45
      understand when this grade is done, the universal
    • 00:41:51
      will cut itself out. That's a very common
    • 00:41:55
      knowledge. And I guess, you know, the I
    • 00:41:59
      think we talked about earlier that the proper
    • 00:42:01
      forum is most likely to address something like
    • 00:42:04
      this is in the rulemaking, but my concern
    • 00:42:06
      is if we brought something here that because,
    • 00:42:11
      technology has changed and use has changed that
    • 00:42:14
      maybe that rule needs to be revisited or
    • 00:42:18
      looked at. Yes. Because the time the rule
    • 00:42:25
      they make is 20 I think 2020 or
    • 00:42:30
      what. Okay. The the base, the rule they
    • 00:42:33
      made there. But the one I'm using the
    • 00:42:37
      device was mentioned on the 2023 and National
    • 00:42:42
      Electric Code. They mentioned about the emergency disconnect.
    • 00:42:49
      So why I'm using the number one, they
    • 00:42:51
      call it service disconnect. That's the one they
    • 00:42:55
      most favorite. The device they use actually in
    • 00:42:59
      category third, okay, they say you can use
    • 00:43:03
      that, but that's not their preferred. Okay. Thank
    • 00:43:08
      you. Thank you very much. I think Commissioner
    • 00:43:14
      Jackson brings up a valid point of it
    • 00:43:16
      sounds like maybe this is something that is
    • 00:43:19
      time to address and see if the rule
    • 00:43:21
      is a little outdated and we need to
    • 00:43:22
      look at the technology that's advanced. And, again,
    • 00:43:26
      also noted that this is not the place
    • 00:43:28
      to kinda make that decision in this case,
    • 00:43:30
      but something to look at in the future.
    • 00:43:34
      Yeah, I hadn't thought about the rule. I
    • 00:43:38
      think consistent with our practice, I appreciate all
    • 00:43:41
      the parties being here. I think it's probably
    • 00:43:45
      advisable we take what they said. I'd like
    • 00:43:47
      to kind of think through the idea of
    • 00:43:50
      looking at the rule and if any changes
    • 00:43:52
      need to be made to that. So I'd
    • 00:43:53
      ask that we defer a decision on this
    • 00:43:56
      till we can kind of so I can
    • 00:43:58
      at least get briefing on that and kind
    • 00:44:00
      of think through this comprehensively, and we bring
    • 00:44:04
      this one back to the to the next
    • 00:44:06
      to the next open meeting, because I wanna
    • 00:44:09
      make sure that we're doing our diligence on
    • 00:44:11
      this complaint and then also thinking through if
    • 00:44:13
      that's not the appropriate way, does something need
    • 00:44:16
      to be done to to deal with this
    • 00:44:17
      issue. Agree. Thank you all for being here.
    • 00:44:31
      Alright. I think that will bring us then
    • 00:44:33
      to Item No. 30. I think that concludes.
    • Item 30 - Project No. 56896 – Texas Energy Fund In-ERCOT Loan Program Reports and Filings
      00:44:39
      Yes, that section. So, we should be now
    • 00:44:41
      at item 30. So that is Project No.
    • 00:44:44
      56896, Texas Energy Fund in ERCOT loan program
    • 00:44:49
      reports and filings. Good morning. Good morning. Yes.
    • Item 30 - Laurie Hobbs - Commission Staff - Recommendation of 2 applications
      00:44:58
      Mister Chairman, thank you. And Commissioners, Laurie Hobbs
    • 00:45:00
      for staff. Staff recommends two applications totaling 895
    • 00:45:06
      megawatts to be advanced to due diligence and
    • 00:45:09
      authority delegated to the executive director to enter
    • 00:45:11
      into a loan agreement if these projects successfully
    • 00:45:15
      complete the due diligence process. These applications would
    • 00:45:18
      bring the portfolio of loan applications undergoing due
    • 00:45:21
      diligence to 9,774 megawatts and, $5,370,000,000. The selection
    • 00:45:30
      of these projects used a similar process to
    • 00:45:32
      the ones staff took with the first through
    • 00:45:34
      third rounds of applications that we have recommended
    • 00:45:38
      to due diligence, previously. In addition, these applications
    • 00:45:42
      are attempting to align with the attributes of
    • 00:45:45
      withdrawn application two two three, which they are
    • 00:45:47
      replacing. So I'd be happy to answer any
    • 00:45:50
      questions you have on this matter. Commissioners, questions?
    • 00:45:55
      I'm in agreement with the two that you
    • 00:45:59
      have proposed. So when when looking at replacing
    • 00:46:03
      projects and and kind of the load zones,
    • 00:46:07
      I know we initially had, what, 72 applications
    • 00:46:10
      there about. Yes. That's correct. Are we finding
    • 00:46:14
      it more and more difficult to find projects
    • 00:46:18
      in load zones to replace projects that are
    • 00:46:20
      falling out. I know Houston in the South
    • 00:46:23
      there's a lot that needs to be done
    • 00:46:25
      in Houston, but would you say that there's
    • 00:46:27
      just a shortage of viable projects now that
    • 00:46:30
      we're really because of the tight timelines, we're
    • 00:46:32
      really looking to make sure that any project
    • 00:46:35
      that we approve has true line of sight
    • 00:46:37
      to getting these projects online at the right
    • 00:46:39
      time. Is that a constraint on finding projects
    • 00:46:42
      in the same load zone going forward to
    • 00:46:45
      replace projects that fall out? Yes, yes, that's
    • 00:46:48
      correct. We certainly would strive to replace with
    • 00:46:51
      the same load zone, but as you noted,
    • 00:46:53
      we've we've needed to prioritize applicants that have
    • 00:46:56
      shown us their readiness, on the three key
    • 00:46:59
      items of, long lead time equipment, like you
    • 00:47:02
      mentioned, equity commitment, and their engineering procurement and
    • 00:47:06
      construction contract. So, you know, based on lessons
    • 00:47:09
      learned, we're we're really trying to still balance
    • 00:47:12
      as many of the original policy priorities that
    • 00:47:14
      the Commission has had, but we must present
    • 00:47:18
      you with applicants that can begin timely construction
    • 00:47:20
      of their projects for the success of the
    • 00:47:22
      program. Yeah. And I think that's important, you
    • 00:47:28
      know, because of those timelines. Think that constraint
    • 00:47:31
      is a real one. We need to make
    • 00:47:33
      sure as best as we can that any
    • 00:47:36
      project we approve going forward can meet these
    • 00:47:39
      deadlines and be online. So I want to
    • 00:47:42
      thank you, Barksdale staff, everyone involved for continuing
    • 00:47:47
      to do good work for the state to
    • 00:47:50
      find projects to make to ensure that this
    • 00:47:52
      entire program is successful for the state because
    • 00:47:55
      it's extremely important. So thank you for that.
    • 00:47:58
      Yes. Thank you. One quick question. Do you
    • 00:48:01
      all have a calculation on what percentage groups
    • 00:48:06
      like the bigger generating groups are reaching right
    • Item 30 - Barksdale English - Deputy Exec. Director - Percentage of groups in portfolio
      00:48:10
      now in our portfolio? Commissioner Hjaltman, I believe
    • 00:48:16
      that number is approximately 35% of the portfolio
    • 00:48:20
      would be represented by the four largest generation
    • 00:48:25
      companies in ERCOT. Perfect. Thank you. That's an
    • 00:48:29
      approximate number. And if you need something more
    • 00:48:31
      accurate, we'll be happy to Sure. That's good.
    • 00:48:33
      Okay. And Barksdale, just for clarity, four would
    • 00:48:35
      be? Those four would be Luminant, NRG, Calpine
    • 00:48:41
      and Constellation. Thank you. So 35% of the
    • 00:48:46
      folks who are very active in the market
    • 00:48:48
      right now, but an opportunity to bring others
    • 00:48:50
      in that promotes competition, so to your point.
    • 00:48:55
      Okay. Any other questions? Shelah, remind me, do
    • 00:48:59
      we need a motion to approve this? Yes,
    • Item 30 - Motion to approve 2 projects selected by Staff
      00:49:01
      sir. All right. Then I would entertain a
    • 00:49:02
      motion to approve the two projects selected by
    • 00:49:06
      staff to move forward to due diligence and
    • 00:49:08
      delegate all appropriate authority to the executive director.
    • 00:49:12
      So moved. I second. I have a motion
    • 00:49:14
      and a second. All those in favor say
    • 00:49:15
      aye. Aye. Opposed? Motion prevails. All right. That'll
    • Item 31 - Project No. 57774 – Electric Utility Correspondence on Insurance Premiums
      00:49:19
      bring us to Item No. 31. Item 31
    • 00:49:23
      is Project No. 57774, electric utility correspondence on
    • 00:49:30
      insurance premiums. So a number of letters were
    • 00:49:33
      initially filed in the Docket that's opened every
    • 00:49:38
      fiscal year for issues that don't have an
    • Item 31 - Chairman Gleeson's thoughts on insurance premiums
      00:49:40
      associated specific Docket No. . I've read through those
    • 00:49:44
      letters. I think this is a real issue
    • 00:49:48
      that these companies are dealing with. Insurance premiums,
    • 00:49:53
      given kind of what's happened in the state
    • 00:49:55
      during the interim between last session and now,
    • 00:49:58
      I think, have really skyrocketed what these companies
    • 00:50:01
      have to pay. Think this is a real
    • 00:50:02
      issue. I know in those filings, the companies
    • 00:50:05
      were really looking for guidance about how to
    • 00:50:08
      move forward. I'll be honest, I wish we
    • 00:50:11
      could give more guidance. I don't know that
    • 00:50:13
      I feel that's our appropriate role. They're free
    • 00:50:19
      to file a request to have deferred accounting
    • 00:50:23
      treatment on this. I will say, just in
    • 00:50:26
      the briefing I got, it's a pretty high
    • 00:50:28
      bar. I think it's appropriate if they want
    • 00:50:30
      to do that. I think that's a business
    • 00:50:32
      decision for them. I'm happy to hear your
    • 00:50:35
      thoughts, but I think it's it's important to
    • 00:50:37
      recognize that that this is a problem that
    • 00:50:39
      that we need to think about and and
    • 00:50:41
      how these companies are are really dealing with
    • 00:50:43
      these increasing costs. Happy to hear your thoughts.
    • 00:50:47
      I'm in agreement. I'm not sure what exactly
    • 00:50:50
      there is for us to do. I think,
    • 00:50:52
      you know, filing a petition or whatnot might
    • 00:50:54
      be, but for us to move on it
    • 00:50:57
      right now is I'm not sure how that
    • 00:50:58
      would be taken. Yeah. Again, I I think,
    • 00:51:02
      you know, just in reading it and the
    • 00:51:03
      discussions I had, I I think they were,
    • 00:51:05
      you know, they're kinda happy to deal with
    • 00:51:07
      it, whatever in any way we deem appropriate,
    • 00:51:10
      and, know, I kind of, through my discussions,
    • 00:51:14
      wanted to give some more guidance on this.
    • 00:51:18
      Just in thinking about it and getting that
    • 00:51:20
      briefing, think it's probably not the appropriate route.
    • 00:51:23
      They know the different avenues they have to
    • 00:51:26
      possibly address this. But I wanted to make
    • 00:51:29
      sure it got on the agenda so we
    • 00:51:30
      could at least speak to these insurance costs
    • 00:51:33
      and what the true reality that these companies
    • 00:51:35
      are dealing with. And I know that we
    • 00:51:38
      have kind of some boilerplate ways of addressing
    • 00:51:42
      you know, situations like this, but I would
    • 00:51:45
      think we would be open, you know, to
    • 00:51:47
      considering, you know, maybe a different way of
    • 00:51:50
      addressing it, and maybe a combination of a
    • 00:51:52
      hybrid type combination potentially. So, anyway, I would
    • 00:51:56
      encourage them because they're closest to it and
    • 00:51:59
      because, you know, we don't necessarily know if
    • 00:52:01
      this is something that is, you know, a
    • 00:52:03
      short term or a longer term issue for
    • 00:52:07
      them to kinda come back to us with
    • 00:52:08
      what they think might be the best relief.
    • 00:52:11
      And you Because we want them to continue,
    • 00:52:12
      excuse me, to be successful, but we also
    • 00:52:15
      have to be conscious of the ratepayer. Yeah,
    • 00:52:20
      and they laid out some options. Again, I
    • 00:52:23
      think that could be viable. Again, probably just
    • 00:52:27
      not appropriate for us to give prescriptive guidance,
    • 00:52:31
      also an issue that is front of mind
    • 00:52:33
      for some members of the legislature understanding that
    • 00:52:37
      this is an issue. You know, appreciate them
    • 00:52:40
      bringing this to our attention and understanding that
    • 00:52:44
      it is a real issue they have to
    • 00:52:45
      deal with and kind of leave it to
    • 00:52:47
      them to, you know, which avenue they think
    • Item 34 - Project No. 41210 - Information Related to the Southwest Power Pool Regional State Committee
      00:52:49
      is the most appropriate. Okay. So I think
    • 00:52:55
      that will bring us to Item No. 34.
    • 00:52:58
      That is Project No. 41210, information related to
    • 00:53:03
      the Southwest Power Pool region Regional State Committee.
    • 00:53:07
      And I think Commissioner Jackson has an update.
      EditCreate clip
    • Item 34 - Commissioner Jackson's update
      00:53:08
      Thank you, mister Chairman. I did attend the
    • 00:53:11
      inaugural SPP energy synergy summit in Dallas last
    • 00:53:16
      week. This was my first official assignment as
    • 00:53:18
      the Texas delegate to SPP. I served on
    • 00:53:21
      a panel with chair Kim David with the
    • 00:53:24
      Oklahoma Commission and chair Kayla Hahn with the
    • 00:53:27
      Missouri Commission. The panel was moderated by one
    • 00:53:30
      of SPP's board members, Stuart Solomon. We had
    • 00:53:33
      a good discussion about affordability, consumer impacts, and
    • 00:53:38
      the impacts of large loads while ensuring reliability.
    • 00:53:41
      I also attended the resource and energy adequacy
    • 00:53:45
      leadership team, the real team, which was the
    • 00:53:48
      brainchild of one of our former Commissioners. It
    • 00:53:52
      was it was a great experience for me
    • 00:53:54
      to hear from and meet the stakeholders and
    • 00:53:56
      industry leaders in the SPP region and to
    • 00:53:59
      hear firsthand that the load growth we're experiencing
    • 00:54:02
      in Texas is also happening across the nation
    • 00:54:05
      and in SPP's footprint. Many of the challenges
    • 00:54:09
      that we're facing here in Texas, other states
    • 00:54:11
      are facing too, as well as new opportunities
    • 00:54:14
      with regard to resource adequacy, load and generation
    • 00:54:17
      interconnection, and grid modernization. So the next regional
    • 00:54:21
      state committee meeting will be in early May,
    • 00:54:24
      and I'm looking forward to attending. Thank you,
    • 00:54:28
      Kathleen, and thank you again for stepping up
    • 00:54:30
      and being willing to take over kind of
    • 00:54:32
      lead on issues in SPP. Commissioner Gelman, any
    • 00:54:35
      questions? No. Alright. So item 38 was on
    • Item 41 - Discussion and possible action regarding agency review by Sunset Advisory Commission,operating budget, strategic plan, appropriations request, project assignments, correspondence...
      00:54:40
      the consent agenda, so that'll bring us to
    • 00:54:42
      Item No. 41. That is an update from
    • Item 41 - Commission Counsel Shelah Cisneros' update
      00:54:45
      our Commission counsel. Shelah? Yes. I have two
    • 00:54:49
      updates, that'll be of interest to stakeholders. First
    • 00:54:55
      one is that we currently have an open
    • 00:54:57
      meeting scheduled for Thursday, June. And after discussion
    • 00:55:02
      with the Commissioners and our executive director, the
    • 00:55:07
      decision was made to move that meeting to
    • 00:55:09
      Friday, June 20. So just one day later,
    • 00:55:13
      we will make sure that the website is
    • 00:55:15
      updated. That'll be the next step. The other
    • 00:55:19
      just a quick housekeeping item I have and
    • 00:55:23
      we recently became aware that OPDM has been
    • 00:55:26
      in the practice for quite a while at
    • 00:55:28
      providing service lists when parties call to request
    • 00:55:31
      a service list. And I think this made
    • 00:55:33
      sense a couple of decades ago when we
    • 00:55:35
      were a smaller Commission and had before we
    • 00:55:37
      had water, but a variety of things have
    • 00:55:39
      come up and we are no longer going
    • 00:55:41
      to be able to provide courtesy copies of
    • 00:55:43
      the service list. However, all the information that
    • 00:55:46
      we have in our service list is all
    • 00:55:47
      publicly available in AIS or available to the
    • 00:55:50
      parties. So this is absolutely information that the
    • 00:55:53
      parties can use to create and maintain their
    • 00:55:55
      own service list. And we'll be implementing that
    • 00:55:57
      very, very soon this next week really. So
    • 00:55:59
      just an update for any parties that routinely
    • 00:56:02
      request that. We'll have a response ready to
    • 00:56:04
      go, but just wanted to give you that
    • 00:56:06
      update. Thank you for that, Shelah. Questions for
    • 00:56:09
      Shelah? I just want say good catch on
    • 00:56:12
      the June 19 open meeting and moving that
    • 00:56:14
      in recognition of Juneteenth Emancipation Day. I think
    • 00:56:17
      it's appropriate. And, you know, hopefully next time
    • 00:56:20
      we can catch that on the front end.
    • 00:56:22
      That's kind of on me to have caught
    • 00:56:24
      that. So I'm glad that staff was able
    • 00:56:27
      to catch that and we can move that
    • 00:56:28
      meeting. Thanks to everyone up here for being
    • Item 44 - Chairman Gleeson adjourns meeting
      00:56:30
      amenable to that. Okay, so that brings us
    • 00:56:33
      to the end of our agenda. With there
    • 00:56:35
      being no further business before us, this meeting
    • 00:56:37
      of the Public Utility Commission of Texas is
    • 00:56:39
      hereby adjourned.
    Chairman Gleeson calls meeting to order
    Starts at 00:00:09
    44 - Adjournment for closed session to consider one or more of the following items...
    Starts at 00:00:36
    44 - Chairman Gleeson concludes Closed Session, Public Meeting resumed
    Starts at 00:01:07
    Commission Counsel Shelah Cisneros lays out Consent Agenda
    Starts at 00:01:39
    Chairman Gleeson asks for motion to approve items on Consent Agenda
    Starts at 00:02:22
    1 - Public comment for matters that are under the Commission’s jurisdiction but not specifically posted on this agenda
    Starts at 00:02:32
    1 - Joe Gimenez - Former President Windermere Oaks WSC
    Starts at 00:02:47
    4 - Docket No. 54617; Application of Texas Water Utilities, L.P...
    Starts at 00:07:13
    4 - Chairman Gleeson lays out his memo
    Starts at 00:07:42
    4 - Motion to grant rehearing or remand proceeding to Docket Management
    Starts at 00:08:25
    5 - Docket No. 55808 – Petition of MM Terrell 1098, LLC to Amend Rose Hill Special Utility...
    Starts at 00:08:44
    5 - Motion to extend time to act on motion for rehearing to max amount
    Starts at 00:09:15
    6 - Docket No. 56171 – Petition for an Emergency Order Appointing a Temporary Manager...
    Starts at 00:09:30
    6 - Motion to affirm emergency order filed by Exec. Director
    Starts at 00:09:58
    9 - Docket No. 56974 – Application of SJWTX, Inc. dba the Texas Water Company to Amend Its System Improvement Charges
    Starts at 00:10:15
    9 - Chairman & Commissioner's thoughts on the application
    Starts at 00:10:30
    9 - Motion to reject proposal for decision
    Starts at 00:12:16
    12 - Docket No. 57386 – Application of CSWR-Texas Utility Operating Company, LLC for Authority to Change Rates
    Starts at 00:12:38
    12 - Chairman Gleeson lays out his memo
    Starts at 00:12:53
    12 - Motion to modify preliminary order
    Starts at 00:14:56
    16 - Docket No. 56211; SOAH Docket No. 473-24-13232 – Application of CenterPoint Energy Houston Electric, LLC for Authority to Change Rates
    Starts at 00:15:19
    16 - Motion to approve revised proposed order
    Starts at 00:16:22
    17 - Docket No. 56440 – Application of New Braunfels Utilities to Change Transmission Cost of Service and Wholesale Transmission Rates
    Starts at 00:16:40
    17 - Motion to deny motion for rehearing
    Starts at 00:17:10
    19 - Docket No. 56954; SOAH Docket No. 473-24-25125 – Application of Texas-New Mexico Power Company for Approval of a System Resiliency Plan
    Starts at 00:17:28
    19 - Commissioner Hjaltman's thoughts on application
    Starts at 00:17:59
    19 - Commissioner Jackson's thoughts on application
    Starts at 00:20:11
    19 - Shelah Cisneros' clarifying question to Commissioner Jackson
    Starts at 00:24:01
    19 - Motion to modify proposed order
    Starts at 00:24:38
    21 - Docket No. 57160 – Complaint of Frank Chou Against CenterPoint Energy Houston Electric, LLC
    Starts at 00:25:14
    21 - Patrick Peters - Associate General Counsel - CenterPoint Energy
    Starts at 00:26:28
    21 - Glen Imes - Attorney - Commission Staff
    Starts at 00:28:41
    21 - Frank Chou - Texas Farmer
    Starts at 00:30:29
    30 - Project No. 56896 – Texas Energy Fund In-ERCOT Loan Program Reports and Filings
    Starts at 00:44:39
    30 - Laurie Hobbs - Commission Staff - Recommendation of 2 applications
    Starts at 00:44:58
    30 - Barksdale English - Deputy Exec. Director - Percentage of groups in portfolio
    Starts at 00:48:10
    30 - Motion to approve 2 projects selected by Staff
    Starts at 00:49:01
    31 - Project No. 57774 – Electric Utility Correspondence on Insurance Premiums
    Starts at 00:49:19
    31 - Chairman Gleeson's thoughts on insurance premiums
    Starts at 00:49:40
    34 - Project No. 41210 - Information Related to the Southwest Power Pool Regional State Committee
    Starts at 00:52:49
    34 - Commissioner Jackson's update
    Starts at 00:53:08
    41 - Discussion and possible action regarding agency review by Sunset Advisory Commission,operating budget, strategic plan, appropriations request, project
    Starts at 00:54:40
    41 - Commission Counsel Shelah Cisneros' update
    Starts at 00:54:45
    44 - Chairman Gleeson adjourns meeting
    Starts at 00:56:30

    Commissioner Memos

    ControlItemFiling DatePartyDescriptionAction
    54617158March 12, 2025CHAIRMAN GLEESONCHAIRMAN THOMAS GLEESON MEMORANDUM
    56211516March 12, 2025CHAIRMAN GLEESONCHAIRMAN THOMAS GLEESON MEMORANDUM
    573861765March 12, 2025CHAIRMAN GLEESONCHAIRMAN THOMAS GLEESON MEMORANDUM

    Help Desk