11/21/2024
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- Clip 0 - Chairman Gleeson calls meeting to order00:00:09 This meeting of the Public Utility Commission of Texas will come to order. To consider
- 00:00:12matters that have been duly posted with the Secretary of State for
- 00:00:15November 21, 2024. Morning,
- 00:00:19everyone. So we're going to recess
- 00:00:23briefly to go to Closed Session. The Attorney General's coming to talk
- 00:00:26to us. I don't anticipate it will take very long,
- 00:00:30so hopefully we'll be back quickly. I will also note that for
- 00:00:33those of you who were here last time, I do actually have the words to
- 00:00:36get us to Closed Session. Thank you, Shelah. And so we
- Clip 29 - Chairman Gleeson pauses Open Meeting, to hold Closed Session00:00:40can do that. Okay. Having convened in a duly noticed
- 00:00:43open meeting, the Commission will now, at 9:32am
- 00:00:48on November 21, hold a Closed Session pursuant to Chapter 551
- 00:00:51in Texas government code. It will consult with its attorney pursuant to
- 00:00:55Cection 551.071 of the Code. Deliberate personnel
- 00:00:59matters pursuant to Section 551.074 of the Code,
- 00:01:03and deliberate security matters pursuant to Section 551.076
- 00:01:07of the Code. We'll be back shortly.
- Clip 29 - Chairman Gleeson concludes Closed Session, Public Meeting resumed00:01:13Okay. The closed session is Hereby concluded at
- 00:01:179:39am on November 11th,
- 00:01:20November 21, 2024, and the Commission will resume its
- 00:01:23public meeting. No action will be taken by the Commission regarding matters
- 00:01:27discussed in Closed Session today. Okay, so we will
- 00:01:31move on to the agenda. Shelah
- 00:01:35we have, do we have any consent items today?
- Clip 0.1 - Commission Counsel Shelah Cisneros lays out Consent Agenda00:01:39Yes. Good morning Commissioners. By individual ballot,
- 00:01:42the Commission voted to place Item 21 on the consent agenda.
- 00:01:46No one has signed up to speak on that item. Perfect. Thank you.
- Clip 0.1 - Chairman Gleeson asks for motion to approve items on Consent Agenda00:01:50 I will entertain a motion to approve the consent agenda.
- 00:01:53So moved. Second. I have a motion and a second. All those in favor say aye.
- 00:01:57Aye. Opposed? Motion prevails.
- Clip 1 - Public comment for matters that are under the Commission’s jurisdiction, but not specifically posted on this agenda00:02:00Okay. That'll take us to Item No. 1. Public comment. Shelah, is anyone signed
- 00:02:04up for public comment? Yes, we have one person that has signed up to speak,
- 00:02:07Cyrus Reed.
- 00:02:10Come on down.
- 00:02:15So if I signed up on a specific item. Oh, my apologies.
- 00:02:20I did not realize you signed it for item number six. No one
- 00:02:23has signed up for item number one. But we do have someone that signed up
- 00:02:26for item number six. All right. Thank you, Shelah.
- Clip 4 - Project No. 55999 – Reports of the Electric Reliability Council of Texas00:02:29So I don't have anything on item two or item three. So that will
- 00:02:32take us to Item No. 4. That's Project No. 55999,
- 00:02:36Reports of the Electric Reliability Council of Texas.
- 00:02:40So we have a couple of items under this project.
- 00:02:44I think it probably makes sense to start with the ORDC
- 00:02:48report. So I believe ERCOT is here to go over the
- 00:02:51ORDC.
- Clip 4 - Ryan King - ERCOT - Update on ORDC Biennial Report00:03:02 Good morning. Ryan King with ERCOT. Good morning.
- 00:03:05I'm very pleased to be able to provide the Commission with an update
- 00:03:10on the ORDC Biennial Report. So this
- 00:03:14report is required by statute to be filed every
- 00:03:17two years and is meant to analyze the ORDC's
- 00:03:21efficacy, utilization, related costs and contribution to
- 00:03:25grid reliability. So this report considers the
- 00:03:29period from 10-01-2022 to September
- 00:03:3330-2024. Some developments of note during
- 00:03:36this time period with respect to the market was
- 00:03:40the introduction of the ERCOT Contingency Reserve Service in June
- 00:03:43of 2023. This is an ancillary service that is predominantly
- 00:03:47provided by online resources.
- 00:03:51The grid also experienced very tight conditions
- 00:03:54particularly in the summer of 2023.
- 00:03:58And with respect to the ORDC itself, In November
- 00:04:02of 2023 there was the introduction of
- 00:04:05a multistep online reserve price adder floors
- 00:04:09to be applied when reserves fell below certain thresholds.
- 00:04:13This was originally meant to be a bridging mechanism to continue to provide
- 00:04:17price signals to support commitment and
- 00:04:21online reserves from dispatchable generation.
- 00:04:25So in terms of the results of this study, the performance of
- 00:04:28the ORDC during this period was in line with expectations
- 00:04:32based on its current design and the parameters, with the exception
- 00:04:36of what I've just noted, were relatively stable during this period. With respect
- 00:04:40compared to the 2022 to 2020 or, sorry,
- 00:04:43the 2020 to 2022 period. What is notable during
- 00:04:47this period is the impact that other factors in the ERCOT market had
- 00:04:51on both behavior and commitment. So during this period we saw
- 00:04:55a significant growing demand tighter conditions,
- 00:04:59particularly during the solar ramp down event. So in
- 00:05:03Summer 2023 for example, we had 49 days with peak
- 00:05:07demands greater than 80 gigawatts.
- 00:05:10This two year period also saw lower natural gas prices
- 00:05:14as well as new solar and energy storage capacity coming online.
- 00:05:18And these are also predominantly online resources.
- 00:05:22There was also a change in the composition of reserves
- 00:05:25toward more online reserves both in terms of
- 00:05:29the resources themselves and the requirements that came upon
- 00:05:33the introduction of ECRS. So what this period
- 00:05:36saw was a period where the ORDC
- 00:05:40price adders were observed at higher levels of reserves
- 00:05:43than had been done in the 2022 period.
- 00:05:47So the combination of lower fuel costs,
- 00:05:50online reserves and future price expectations
- 00:05:55continues to provide a strong market signal for resources to self commit based
- 00:05:59based on future price expectations, we saw a
- 00:06:03significant reduction in the amount of RUC as compared to
- 00:06:06the previous period with respect to the
- 00:06:09online reserve price adder floors. As noted, this was introduced
- 00:06:13on November 1st of 2023 for the reasons that
- 00:06:17I kind of outlined previously. There was a limited
- 00:06:20incidence of the floors actually being applicable since this
- 00:06:24was implemented in November. But we did do an analysis that
- 00:06:27showed that in the intervals where these price adders were in effect,
- 00:06:3285% of the output was from dispatchable generators.
- 00:06:36So notionally, this is continuing to send funds
- 00:06:40or market resources to the resources that are
- 00:06:44needed at those times. So to complete
- 00:06:48my summary here, ERCOT is not recommending any
- 00:06:51changes at this time to the ORDC. But we
- 00:06:55would note, and we noted this in the report as well, that the replacement
- 00:06:59of the ORDC framework with individual ancillary
- 00:07:02service demand curves is currently a topic of discussion at
- 00:07:06the Real Time Co-optimization plus Batteries Task Force.
- 00:07:10And that concludes my summary, but I'm happy to answer
- 00:07:14any questions you all may have. Thank you, Ryan. Commissioners, questions for ERCOT?
- 00:07:19Ryan, what is the expectation on the ancillary service demand
- 00:07:22curves? When do you have to have those completed to be able to launch RTC
- 00:07:27by December 2025?
- 00:07:30So I think the. Are you,
- 00:07:33Commissioner, are you asking, like, when they need to be approved in market rules,
- 00:07:37right? Like finally approved? Okay,
- 00:07:40okay. I might just defer to Keith here.
- Clip 4 - Keith Collins - ERCOT - Expectation on ancillary service demand curves00:07:45 All right. Keith Collins, ERCOT. I'll answer that question.
- 00:07:49The timeline is we are shooting to
- 00:07:52have things ready for market trials in May of
- 00:07:5625. And so we are aiming to get changes done
- 00:08:00at the, essentially the April board timeframe
- 00:08:04and then bring it before you shortly afterwards. And so that
- 00:08:08is our goal for any changes. There have been, as Ryan
- 00:08:12said, some discussions, if there are some discussions
- 00:08:16that we believe that we can implement and others may
- 00:08:20have to come after the RTC implementation, but those
- 00:08:24discussions are ongoing at the task force as we speak.
- 00:08:28So Keith, given that timeframe. I know the IMM has
- 00:08:31put a proposal forward, I believe, related to ORDC.
- 00:08:35I know, I've heard we've got some meetings set up. I've heard that
- 00:08:39perhaps some other market participants have maybe counter proposals
- 00:08:43to that to stay on your timeline. I feel like we
- 00:08:46probably need something back here to talk about in January.
- 00:08:51Does that seem right? So we are hoping to
- 00:08:54have an NPRR developed,
- 00:08:57at least initially developed in that, in that timeframe.
- 00:09:01But I think given some of the discussions
- 00:09:05that happened as late as yesterday, the ability
- 00:09:09to meet the timelines is going to be difficult.
- 00:09:11But I think we're in a position where if
- 00:09:15we do have movement, we can accommodate, but if
- 00:09:19we don't have movement, then that'll occur after implementation.
- 00:09:22There's nothing to say that we couldn't implement what we have now and still
- 00:09:26be effective. And then an enhancement could come afterwards.
- 00:09:29Right. So I think that's probably the path forward then, is you have a path
- 00:09:33in front of you with no changes. So I would ask then if
- 00:09:37anyone, any other stakeholder, has any counter proposal
- 00:09:42to have it ready to discuss, probably at the RTC+B
- 00:09:45task force in December, at the December meeting, and then,
- 00:09:49you know, whatever comes out of that, if we're going to change, I think it
- 00:09:52makes sense that any change needs to have a consensus approval to it.
- 00:09:56So I think if the stakeholders can work through something that
- 00:09:59gets consensus, then, you know, that's something we can discuss
- 00:10:02in January so that ERCOT can stay in their timeline. If no consensus can be
- 00:10:06reached, I think we have a fine path in front of us.
- 00:10:11Okay, all right, thank you.
- 00:10:15Any other questions? All right,
- 00:10:19thanks, y'all.
- 00:10:22So, next, why don't we talk about the CPS Braunig
- 00:10:26RMR. I think Chad's here to
- 00:10:30lay that out. So, Chad, I know this is going to come up at
- 00:10:33the ERCOT board meeting in a little less than two weeks,
- Clip 4 - Chad Seely - ERCOT - CPS Braunig, RMR00:10:37so why don't you kind of lay out where we are right now? Yes,
- 00:10:40thanks Chairman. Chad Seeley with ERCOT. So, as the chairman indicated,
- 00:10:43our next board meeting is December 3rd and we will have a
- 00:10:47voting item for the board to consider with respect to the CPS Braunig Units
- 00:10:511-3. So ERCOT staff is finishing its
- 00:10:55analysis and we'll be posting a presentation along with board decision
- 00:10:59template and the chemical days. So I'll just go ahead and kind of preview
- 00:11:03what we're going to be recommending to the ERCOT board.
- 00:11:06Our recommendation to the ERCOT board will be for them to move forward
- 00:11:10and approve an RMR agreement for unit 3 only, which is the
- 00:11:13largest unit that we've been talking to the Commission about since August
- 00:11:17of this year. That's the newest unit from
- 00:11:211970. It's 400 plus capacity and it's the one
- 00:11:24that we've been focused on for quite some time, working with CPS as far
- 00:11:28as making sure we understand the condition of the unit. As the
- 00:11:31Commission knows, all three of these units have to go through an inspection process
- 00:11:36before they're even available. CPS Energy moved
- 00:11:40its notice of suspension of operations to early March. So if the
- 00:11:44Board moves forward with an RMR agreement, that will allow us to move forward
- 00:11:47with that inspection work at the beginning of March trying to get that
- 00:11:51unit back for the summer of 2025.
- 00:11:54The other two units are older and lower capacity and
- 00:11:58have a little bit more uncertainty as far as the availability of
- 00:12:01that. So we Are exploring alternative as
- 00:12:05the Commission knows, we went out for a request for proposal
- 00:12:08initially to look for must run alternatives and we only received
- 00:12:12one offer that ultimately wasn't eligible based upon our criteria.
- 00:12:16So after that occurred, we started to contemplate working
- 00:12:20with CenterPoint and Lifecycle about the possibility of moving
- 00:12:25the mobile generation units from Houston to the San Antonio
- 00:12:28area. So for the last several weeks, we've been working with
- 00:12:32Lifecycle, which is the owner and operator of those assets,
- 00:12:34CenterPoint and CPS Energy, about the feasibility
- 00:12:38of moving those assets from the Houston area into the San Antonio
- 00:12:43area. Those would be 15 units on average,
- 00:12:4632 megawatts. So that is essentially the
- 00:12:49equivalent of what units one and two are. There's a lot of additional
- 00:12:53reliability benefits to have those units versus units 1 and
- 00:12:562. Mainly the diversity of those units where they
- 00:13:00can be located versus having two larger units that have the
- 00:13:04susceptibility having higher force outages. These are dual fuel
- 00:13:08capable units. They could be located
- 00:13:11in San Antonio with a higher shift factor.
- 00:13:14And obviously their start time is about 10 to
- 00:13:1815 minutes versus a longer lead time for units one and two.
- 00:13:22So there's a lot of additional qualitative reliability benefits
- 00:13:25to considering that option versus moving forward with
- 00:13:29units 1 and 2. So for the December board meeting, we're going to ask that
- 00:13:32the board defer any decision on units one and two so
- 00:13:36that we can continue to work on the feasibility of moving
- 00:13:39the mobile generation into the San Antonio unit area. And so
- 00:13:43the next opportunity for the board to consider those alternatives
- 00:13:47would be at their February board meeting. Now the
- 00:13:51feasibility idea comes to both a technical perspective,
- 00:13:55a cost perspective and a regulatory perspective. Those are the kind of the
- 00:13:59three buckets that we're looking at. A lot of work has been done on the
- 00:14:02technical side. We do believe it is technically feasible to move
- 00:14:06those 15 units into the San Antonio area.
- 00:14:09There's been tremendous work done by cps,
- 00:14:12Lifecycle and Centerpoint, including ERCOT staff, to evaluate the feasibility
- 00:14:16of that. The cost. We are working with all the
- 00:14:20parties to understand the cost. So I can't provide any additional information
- 00:14:23right now, but that's obviously a big factor is what is the cost to
- 00:14:27move those units and have them operate in the San Antonio area and
- 00:14:31then the regulatory process. So those are the three buckets
- 00:14:34that we're working on. We'll have more information to share at the board
- 00:14:38on December 1st, but right now our recommendation
- 00:14:41is to move forward with Unit 3 as an RMR agreement,
- 00:14:45continue to explore moving the CenterPoint mobile generation into the
- 00:14:48San Antonio area and continue to update the Commission and come back to
- 00:14:52the board in February. I will say that there's been discussion with
- 00:14:56state leadership, and I know Chairman Gleeson met with the Lieutenant Governor yesterday.
- 00:15:00And so state leadership is aware that we're working on this initiative, and they are
- 00:15:04supportive of us looking at this as a better,
- 00:15:07reliable solution that we need for the next couple of
- 00:15:10years until we get the transmission projects that come into service starting in 2027.
- 00:15:16Thank you, Chad. Commissioners, questions for Chad? I have questions.
- 00:15:19I'm not sure if it's best for Chad or CenterPoint, but it's on
- 00:15:23the financial side of what that does for CenterPoint.
- 00:15:26They're no longer responsible for the leasing. What does that do for their customers,
- 00:15:30going back to the money that they have already been paid and that sort of
- 00:15:33thing? And I'm not sure where it's appropriate to ask that. Yeah, I think
- 00:15:37at this point, like Chad said, they're still working out the money aspects.
- 00:15:41I think it may be just a little premature to get into that. I think
- 00:15:44that that is an important question we've been focusing a lot on. I think,
- 00:15:47to Chad's point, there are some qualitative reasons
- 00:15:52why these units may cost more than, say, Braunig 1 and 2 would.
- 00:15:57That, I think, are reasonable up to a certain point,
- 00:16:01but I think we need to kind of let them work on that, you know,
- 00:16:04and I think they. Everyone understands that there's a point at
- 00:16:08which the cost, you know, does not. The cost will outweigh the
- 00:16:11benefit of the units. And so everyone's trying to work within some, I think,
- 00:16:14pretty reasonable parameters on it.
- 00:16:19I have a question, and that is, I'm really supportive of
- 00:16:22y'all trying to work this out with centerpoint and cps.
- 00:16:26I think it seems great. And you know how that cost benefit is done.
- 00:16:30I hope they take into consideration the difference in ramp times
- 00:16:34between the old units and the new units, because the market impact of that
- 00:16:37could be substantial if these are Quick Start units, which they
- 00:16:41are. The other
- 00:16:44thing is you put out an RFI or RFP.
- 00:16:48What was the one response you got and what made it ineligible
- 00:16:52for or outside the parameters which you listed?
- 00:16:56So it was a 200 megawatt battery that was north of
- 00:16:59the constraint, but it did not meet the offering requirements in the RFP.
- 00:17:03So the offering requirements into the RFP, they essentially
- 00:17:07wanted it to operate it from an offering standpoint, like any other resource
- 00:17:11battery. Would it have
- 00:17:15technically solve part of the problem? It would have from a technical perspective
- 00:17:19on where it was located. It would have obviously provided some relief on the constraint,
- 00:17:24but it was only 200 megawatts and would have been. Wouldn't have been a full
- 00:17:27solution.
- 00:17:31Thank you.
- Clip 4 - Barksdale English - Deputy Executive Director - Cost & regulatory rate concerns00:17:34 Chairman, I just want to let you and the Commissioners
- 00:17:38know that Dave Gordon, Jenna Keller and I have
- 00:17:41also been participating in these conversations that Chad was describing just over the.
- 00:17:45We can keep an eye on the cost and regulatory rate
- 00:17:48issues as they start developing. And so
- 00:17:52we're participating in that process, and hopefully we'll
- 00:17:56have some better information as the situation develops
- 00:18:00in the short future. Thank you for that,
- 00:18:02Barksdale. So I think all I would add is I'm
- 00:18:06extremely supportive of this as well. Like you said, I spoke to Lieutenant Governor yesterday.
- 00:18:10I think this is an elegant solution to a number of
- 00:18:14issues that we're facing. And so,
- 00:18:17you know, continue to keep us kind of apprised of what's going on.
- 00:18:20But I think if I could, you know, say anything to everyone
- 00:18:24that's involved in those discussions, I think it would be a good outcome
- 00:18:27if we could figure out a way to make this work for everybody. So I'm
- 00:18:31hopeful that those negotiations will continue in earnest and we
- 00:18:34can come to a solution that's good for everyone.
- 00:18:38All right, thank you, Chad. Thank you.
- Clip 4 - Chairman Gleeson lays out ERCOT's filed proposed order00:18:41 Then the last item under this project is ERCOT filed
- 00:18:46a proposed order for a good cause exception to
- 00:18:5025 508, which is the deadline to file by December
- 00:18:541st, the max load shed that can be safely rotated.
- 00:18:59In their filing, they said, you know, they've put out RFIs to
- 00:19:02the transmission operators and would just like more time.
- 00:19:06Staff agrees, and so I'm in favor of giving
- 00:19:10them this extension, but happy to hear. Any other thoughts.
- 00:19:14Makes sense to me. Yeah, I'm good with the extension as well.
- 00:19:18This is the first go around in trying to get the information from
- 00:19:21the tsps for the magnitude metric of the reliability
- 00:19:25standard, which is a very important driver of the standard. So more
- 00:19:28time, needs more time to work with the tsps to make sure they get it
- 00:19:32right. Just go around and develop the framework they need going forward.
- 00:19:35I'm good with that. Same.
- Clip 4 - Motion to direct Staff to draft an order consistent with ERCOT's memo00:19:40Okay. Then I will entertain a motion
- 00:19:43to direct staff to draft an order consistent with
- 00:19:46ERCOT's memo. So moved. Second. I have a motion and a second.
- 00:19:50All those in favor say aye. Aye. Opposed? Motion prevails.
- Clip 5 - Project No. 54445 – Review of Protocols Adopted by the Independent Organization00:19:56All right. That'll move us to Item No. 5. That is
- 00:20:00Project No. 54445, review of protocols adopted
- 00:20:04by the independent organization. We had two
- 00:20:07proposed orders in this. One related to the AS methodology and one for
- 00:20:11the 12 protocol revisions that were approved. By the board in October.
- 00:20:15Do you have any thoughts or questions on either?
- 00:20:19I think it's good that we're getting into this.
- 00:20:23Much more into curtailable load. It's a big impact on the system
- 00:20:27and having this tool at ERCOT's control is something that's really
- 00:20:31valuable I think going forward. Where at the start of this, as everyone knows.
- 00:20:35And if these numbers grow, it could be an even bigger reliability tool
- 00:20:38for them.
- 00:20:42Okay. So Shelah, since we have two. It probably makes sense to do two motions.
- Clip 5 - Motion to approve proposed order approving ERCOT's revision requests00:20:46Yes, sir. Okay. So I'll entertain a motion to approve the proposed
- 00:20:49order approving ERCOT's revision requests. So moved.
- 00:20:54Second. I have a motion and a second. All those in favor say aye. Aye.
- Clip 5 - Motion to approve proposed order approving 2025 ERCOT methodologies00:20:57Opposed? Motion prevails. I'll entertain a motion
- 00:21:01to approve the proposed order approving 2025 ERCOT
- 00:21:04methodologies for determining minimum ancillary service requirements. So moved.
- 00:21:09Second. I have a motion and a second. All those in favor say aye.
- 00:21:12Aye. Opposed? Motion prevails.
- Clip 6 - Project No. 55845 – Review of Ancillary Services in the ERCOT Market00:21:16All Right. Item No. 6. That's Project 55845,
- 00:21:20Review of Ancillary Services in the ERCOT market with the ancillary
- 00:21:24services study. So I think I'll have Staff come up and
- 00:21:28lay out their recommendations. And Chairman, we do have one person that signed
- 00:21:32up to speak for this audience. Thank you, Shelah. Cyrus, if you want to come
- 00:21:35up.
- 00:21:41Good morning. Two days in a row that I've gotten to see you, so.
- Clip 6 - Cyrus Reed – Lone Star Chapter of Sierra Club - DRRS00:21:43 Yes. Concerned, concerned citizen. I'm Cyrus
- 00:21:47Reed, Lone Star Chapter of the Sierra Club.
- 00:21:51Very much appreciate the ongoing discussion about Ancillary
- 00:21:55Services. Wanted to mention one issue that has
- 00:21:59two subtopics below it.
- 00:22:02DRSS. Very much support the
- 00:22:06staff recommendation. DRRS.
- 00:22:09DRRS. Sorry, I'm starting out
- 00:22:13with a bang. Very much support the Staff
- 00:22:16recommendation that this was intended to be a operational ancillary
- 00:22:20tool. Concern though,
- 00:22:24that at this point in the process we dictate
- 00:22:28exactly what that tool looks like. And I say that because there
- 00:22:31are ongoing discussions at Ross WMS.
- 00:22:35Sog. I always want to say swag. Sog about
- 00:22:40the nature of that product. Is it only offline resources?
- 00:22:44Is it offline and online? Could it include storage?
- 00:22:47Could it not? Could it be co optimized? Could it not? So I
- 00:22:51would urge the Commission to give clear direction on
- 00:22:55the intent, but leave the particulars
- 00:22:59to that process because there's still time to figure that out. And I know the
- 00:23:02IMM just filed comments yesterday, so that is,
- 00:23:06those are my comments and I'm sticking to them, even though I can't remember acronyms.
- 00:23:10Thank you, Cyrus. Thank you. So. And I know, Commissioner Hjaltman
- 00:23:14filed a memo on this as well. So why don't we have Staff kind
- 00:23:17of lay out the study and then Commissioner Hjaltman, you can
- 00:23:21lay out your memo. I think it's my intent to
- 00:23:24have everyone go over this. You know, I think
- 00:23:28we're having meetings set up, people want to come in and talk. So to
- 00:23:31bring this back to the December 12th open meeting,
- 00:23:34I've talked to Staff. So what I would ask of you
- 00:23:38all is if there are changes you want or ideas you want to propose,
- 00:23:42if we could have those memos for that meeting filed no later
- 00:23:46than December 6th. So that Staff has time to review
- 00:23:50them and consider incorporating them. I think
- 00:23:53that would be helpful to Staff. Okay. And are those
- 00:23:56memos from industry or just us? From us. From us.
- Clip 6 - Julie Gauldin – Commission Staff - Update on Ancillary Services Study00:24:02All right. Good morning. Good morning.
- 00:24:06I'm Julie Gauldin with Staff. I have Chris Brown and Floyd Walker
- 00:24:10with me also. And we are here to provide an update
- 00:24:14on the review of ancillary services in the ERCOT market, also known
- 00:24:18as the Ancillary Services Study. This study was jointly
- 00:24:22conducted by ERCOT, the IMM and Staff over
- 00:24:26the course of about the past year.
- 00:24:32On November 15, Staff filed its recommendations
- 00:24:35on the study, and this follows the draft study that was
- 00:24:39published on October 1, which included the overall quantitative
- 00:24:42and qualitative review as well as specific recommendations
- 00:24:46from ERCOT and the IMM on potential improvements to
- 00:24:50the set of ancillary services and how they are procured.
- 00:24:54Over the course of the study, staff hosted two workshops with
- 00:24:57stakeholders as well as soliciting and receiving formal comments on
- 00:25:01staff questions on the draft report. Stakeholder input
- 00:25:05plus ERCOT and IMM teamwork were
- 00:25:08key to getting to this point, and we very much appreciate the involvement
- 00:25:12of those groups. Staff recommendations are
- 00:25:15organized around seven key topics and these are
- 00:25:19sufficiency of the current ancillary services,
- 00:25:22providing adequate incentives for dispatchable generation,
- 00:25:28and then three around procurement quantities. What is the appropriate
- 00:25:31criteria for determining quantities? Dynamic determination
- 00:25:35of quantities, Probabilistic modeling of AS quantities.
- 00:25:40DRRS is the sixth topic and the last one is a catch all for
- 00:25:44other topics, including other related reliability services.
- 00:25:49We're not asking for a decision from you today, as the Chairman
- 00:25:52mentioned. We will bring this to you at the next two open
- 00:25:57meetings, and we are requesting that
- 00:26:00a suitable version of these recommendations be formalized as Commission recommendations
- 00:26:05to be included in the agency's report as
- 00:26:09you as you see fit and as such,
- 00:26:13I already mentioned, we will bring this to the next two open meetings.
- 00:26:17We can answer any questions and provide more information that you would like. So thank
- 00:26:21you and appreciate all the work on this. Commissioner Hjaltman,
- Clip 6 - Commissioner Hjaltman lays out her memo00:26:25would you like to lay out your memo? Sure. I will just
- 00:26:28do kind of a brief overview. Obviously the memo speaks for itself,
- 00:26:31but thank you Staff, IMM, ERCOT, stakeholders for all
- 00:26:35your work. I know this was a huge undertaking.
- 00:26:38Some of the notes from stakeholders really noted that the second
- 00:26:41component of 35.004g did not
- 00:26:45get included. And in speaking, and that's the incentivizing of dispatchable
- 00:26:49and speaking with staff, I understand that it is
- 00:26:53because there's so many things we just adopted. The reliability standard.
- 00:26:57DRS is still outstanding. We have RTC+B
- 00:27:00that will come into play. And so once those are in, it will be easier
- 00:27:04to do a holistic review of the market as a whole,
- 00:27:08which I actually understand. I just want to make sure that in our
- 00:27:112026 reliability assessment that is going to
- 00:27:15be coming, we also include ancillary service as again
- 00:27:19as a part of that review. So that's my ask of
- 00:27:22staff on that part, so we don't miss that component.
- 00:27:26And then also I think we've heard loud and clear that we
- 00:27:29need to decide how we will be procuring and actually make it
- 00:27:33a clear statement from the dais as we're moving
- 00:27:36forward. And if it is not loadshed, if it is not
- 00:27:40going to be watches, if there are any ideas from staff of what
- 00:27:43type of criteria we should use, I ask that you all bring those forward so
- 00:27:47we can discuss those in the next few meetings. Thank you,
- 00:27:51Commissioners. Questions?
- 00:27:54I think what you wrote is right on target. Thank you, Jimmy.
- Clip 6 - Commissioner Glotfelty's thoughts on report00:27:58Absolutely. Absolutely. And I do have a couple thoughts
- 00:28:02about the entirety of the report, if now is
- 00:28:06appropriate. Absolutely. So I'm wondering if at some point
- 00:28:10in time we should define dispatchable resource
- 00:28:14in our rules. It gets used quite often,
- 00:28:18it seems like from the legislature and at ERCOT and in
- 00:28:21the industry and with within our products,
- 00:28:25but with no set definition. We are kind of,
- 00:28:29I think, doing somewhat
- 00:28:33of a disservice to the entire market. So I
- 00:28:36throw that out there for discussion in the future. And then
- 00:28:40secondly, I will have a memo for
- 00:28:44the next meeting on the battery
- 00:28:48component of DRRS and we'll
- 00:28:52get that filed by the 6th. So I just wanted to throw that out there.
- 00:28:58Okay, Commissioners, any other questions? Otherwise,
- 00:29:01I appreciate the efforts of everybody to do
- 00:29:04this. We've been. I pushed for this for a long time.
- 00:29:08You all did really good work and I'm glad you all worked together with
- 00:29:11stakeholders, the IMM and ERCOT. Thank you.
- Clip 6 - Commissioner Cobos' thoughts on report00:29:16 I just, I want to thank Staff, Harika and her team and everybody.
- 00:29:20Floyd, Chris, in getting all this work done
- 00:29:24and also ERCOT and the IMM. This has been a
- 00:29:27study that has been in motion for a while. I know
- 00:29:31Commissioner Glotfelty, you've been an advocate of getting this done. It was a requirement of
- 00:29:34SB3, and so thank you for your hard work
- 00:29:38in getting this done. There's a lot of really important
- 00:29:42information in this report, but I think overall, my thought
- 00:29:46on this is that there has to be
- 00:29:49regulatory certainty of some sort coming out of these recommendations.
- 00:29:53Whether the Commission ultimately stays with conservative operations or a mix
- 00:29:56between conservative operations and dynamic. Whatever it is, there has to be regulatory
- 00:30:00certainty because both the power gen and the LSCs
- 00:30:04have to plan. And I think that that's
- 00:30:09really important as a baseline. I've heard
- 00:30:13some concerns from some of the stakeholders
- 00:30:18that there could be shifts in the way ancillary
- 00:30:21services are procured based on some of the recommendations and
- 00:30:26potential outcomes from it. But I think overall, I think it's
- 00:30:30important to decide which way
- 00:30:33you're going so that there's regulatory certainty in the
- 00:30:36revenues that come from those ancillary services that are used for investment
- 00:30:41purposes. You know, I like the
- 00:30:44fact that they that staff included a demand response component.
- 00:30:48I think the optimization of demand side of the reliability equation is extremely important.
- 00:30:52We have so much low growth coming out of the system and
- 00:30:55figuring out ways to optimize that demand is
- 00:30:59going to be really important future. I think there's room for
- 00:31:02improvement in ERS. We got some of that information maybe a year
- 00:31:06ago or so on how you can unlock more load resources to participate.
- 00:31:10But overall, I think these are good recommendations.
- 00:31:13I hear what Commissioner Glotfelty is saying, you know, DRS is definitely
- 00:31:17going to be a very important topic of conversation in the coming months. And so.
- 00:31:21But thank you. And just general thoughts.
- 00:31:24Thanks. Yeah. I think what I would say in response to that, Commissioner Cobos,
- 00:31:28is, you know, I think it's a point well taken
- 00:31:32and I've heard a lot as well that we, when we're looking at procuring ancillary
- 00:31:36services, when ERCOT is what are we solving for? Are we trying to
- 00:31:40avoid load shed? Are we trying to avoid EDA conditions,
- 00:31:44watches? I think that's important for us to indicate what we're solving
- 00:31:48for and then once we kind of stipulate what we're solving
- 00:31:51for, I think it's important for us to kind of show our math and to
- 00:31:54show the methodology for getting there. I know, I've talked to Connie and Barksdale
- 00:31:58about both of those things. I think they're important. I think the
- 00:32:02market needs transparency into both of those things that maybe they
- 00:32:05feel has been lacking. So I think it's incumbent on us to provide both
- 00:32:09of those things. Yeah, there's been so much changes in the last several years.
- 00:32:12Right. Is the amount, for, if you keep conservative operations,
- 00:32:16is the amount still the right amount? Have so much load coming out
- 00:32:20of the system, system, new types of generation, and there's
- 00:32:23just, you know, market changes that have happened.
- 00:32:26So, you know, is that the right number?
- 00:32:30I think the. It would also be valuable to show
- 00:32:34the market in time, as renewables
- 00:32:39continue to grow in the system, the amount of ancillary services will grow in the
- 00:32:42system. And to have some kind of a metric or an
- 00:32:45understanding or math that goes with that, that,
- 00:32:49you know, is setting some expectation,
- 00:32:53you know, or maybe it's, you know, setting expectation across the street that
- 00:32:57the more renewables that are on the system, the more ancillary services that we're going
- 00:33:01to have to buy for certain reasons and in certain buckets. And that's
- 00:33:05just an operational fact. And that if we can
- 00:33:09project that, that may be a signal that shows
- 00:33:12that we're at least understanding what. What could happen in the future
- Clip 6 - Chairman Gleeson's thoughts on report00:33:16if that growth happens. Right. And I think the
- 00:33:19only other thing I would say, I think the discussions around DRRS
- 00:33:23are going to be very important. You know, being involved
- 00:33:27in those discussions last session, obviously DRRS was put out there for
- 00:33:31a multitude of reasons, but a couple being, you know,
- 00:33:35as maybe an alternative to needing to implement the PCM, but also to
- 00:33:39reduce RUCs. And so I think it's important to be
- 00:33:43nuanced in our discussion. If ancillary services are not meant
- 00:33:47to deal with resource adequacy issues, then what are?
- 00:33:50Because, you know, not to. Not to speak like a
- 00:33:54former chairman of this Commission, but, you know, we previously talked about turning
- 00:33:58a lot of knobs. And so it does make me think,
- 00:34:01if we're not going to look to DRRS to do that,
- 00:34:04what knobs will we be turning if we do an analysis and it
- 00:34:08shows that we're not meeting our reliability standards? So I think we need to think
- 00:34:12through that. I'm going to have those conversations with market participants
- 00:34:16and with Staff because I would suggest dispatchable
- 00:34:20energy credit. There's one idea.
- 00:34:23Oh, boy, flashback. There's one idea.
- 00:34:26No shortage of great ideas all over the place.
- 00:34:30But I definitely want to talk about that because. Because, you know,
- 00:34:33I agree that as a primary attribute,
- 00:34:37ancillary services are not necessarily intended to deal with resource adequacy issues.
- 00:34:41They're meant to deal with, you know, intraday operational
- 00:34:45issues. But we need to keep talking about
- 00:34:49resource adequacy needs and what we can do to meet
- 00:34:53those needs. And so I want to have those discussions,
- 00:34:55particularly around DRRS as we look,
- 00:34:59you know, just because our
- 00:35:02legislature called DRRS an ancillary service,
- 00:35:06it's not an ancillary service defined under NERC guidelines.
- 00:35:11There are only four or five of them. So,
- 00:35:14you know, I say that because we're using
- 00:35:17that terminology, but we may have a different tool for it,
- 00:35:21notwithstanding that terminology. And if you really want to flashback,
- 00:35:24the DRS kind of looks like an in
- 00:35:28market brs.
- 00:35:31There you go. I need to get my acronym sheet out,
- 00:35:35Chairman. Okay, well, we have a training on that. Okay,
- 00:35:38thank you. Thank you. Okay, so any other questions
- Clip 6 - Barksdale English - The view of ancillary services & their contribution to revenue sufficiency00:35:42or comments? Barksdale. Thanks, Chairman. I just, I want to make
- 00:35:46sure that the nuance that we're staff is trying to balance here
- 00:35:51in terms of how ancillary. How we view ancillary services and their
- 00:35:54contribution to revenue sufficiency. And I think
- 00:35:58we tried to say in our study, in this draft report that
- 00:36:02as a first order principle, any product that is
- 00:36:05an ancillary service needs to be designed to address the risk that
- 00:36:09it's supposed to be mitigating. Only after you do that,
- 00:36:12only after you set those conditions, do we then start thinking about the revenue
- 00:36:16that that product, that service can provide, the entity that's
- 00:36:20offering the service, because it does, of course, have value. It is
- 00:36:23one of many streams of revenue for a resource
- 00:36:27entity to be able to earn its
- 00:36:30money back and then to also be able to show future
- 00:36:35investors that there are ways to earn money in this market.
- 00:36:39So I just wanted to verbally say that
- 00:36:42we recognize and value the revenue that resource
- 00:36:47entities make off of ancillary services. But as a first order
- 00:36:50principle, they're not designed to address revenue first,
- 00:36:54they're designed to address risk first.
- 00:36:59Yeah, I appreciate, again, that nuance. I want to thank you and the team
- 00:37:04talking through this with me. I want to continue those conversations because,
- 00:37:07again, you know, there were discussions around DRRS
- 00:37:11and what its purpose was for. And so I just want to make sure
- 00:37:14that we're keeping those in mind as we're looking at DRS
- 00:37:18implementation. So. All right, Any other questions,
- 00:37:22comments? All right, again, Julie,
- 00:37:26everybody, thank you for all the work on this. Appreciate it.
- 00:37:29And look forward to the conversation at the next open meeting. Absolutely. Thank you.
- Clip 7 - Project No. 56962 – Virtual Currency Mining Registration00:37:35All right. That'll bring us to Item No. 7. That is Project No.
- 00:37:3956962. Virtual currency mining and registration.
- 00:37:45And Commissioner Hjaltman filed a memo.
- 00:37:55Please lay out your memo. Sorry, I'm just making up for recusing myself
- Clip 7 - Commissioner Hjaltman lays out her memo00:37:58Jimmy. I'm sorry. This is very simple. In reading
- 00:38:02the rules written, the registration process and
- 00:38:06renewal was a little confusing. So we worked through
- 00:38:10and I think this clears up that there is a date that
- 00:38:13you must renew by and then there is a date that the Commission
- 00:38:18Staff will have that they identify as a cutoff
- 00:38:23point. And so we just wanted to clear up the two dates a little bit.
- 00:38:26I think that works for staff, but I can answer any questions if anybody
- 00:38:30has any. Yeah, I'm. I'm comfortable with your edits, I guess.
- 00:38:33Staff, anything to add? We agreed.
- 00:38:39Kim Van Winkle with Commission Staff.
- 00:38:43Can you repeat what you said? The Staff agrees with the changes
- 00:38:47outlined in the Commissioner's memo.
- 00:38:51Commissioners, thoughts? I have totally agree with
- 00:38:55the memo. So I'm appreciative that you took the time to write it and file
- 00:38:58it. So I do have one other question for
- 00:39:02the Staff on that. And this is on page 25
- 00:39:07of the rule, section F. It says
- 00:39:10that in addition or as part of the filing,
- 00:39:15a currency minor must file the
- 00:39:18anticipated peak load in megawatts from the facility
- 00:39:22for each year of the five year period beginning on the date of the registration.
- 00:39:26Is that intended to be a rolling number? That each year
- 00:39:29they're looking out and giving a next five year projection
- 00:39:33of what they anticipate their load to be?
- Clip 7 - Kim Van Winkle – Commission Staff - Registrants updating information annually00:39:37 Yes, I anticipate that registrants would update that
- 00:39:41information annually with their filing. And then if you look
- 00:39:44down at subject section H at the end of the year, they report
- 00:39:48the actual numbers as well.
- 00:39:51I think it's really important that as we're looking at this load growth,
- 00:39:56that this help us give ERCOT and
- 00:40:00the market an understanding of what those actual projections are from
- 00:40:03the cryptocurrencies standpoint. And having
- 00:40:07them every year, look five years out is
- 00:40:11a really important component of this, I think for reliability. So I'm
- 00:40:15glad that's what it stands for. And I'm supportive of what y'all have done.
- 00:40:19They put that in there just for you. So I think that's. Thank you.
- 00:40:23Sorry. I'm sorry, Commissioner Hjaltman. You had to get
- 00:40:26yours in by memo. Mine just got in there by itself.
- 00:40:29Just following instructions.
- 00:40:34Any other thoughts? No, I'm good with the changes for proposed in
- 00:40:38memo. Okay. Mr. Chairman. Yes,
- Clip 7 - David Smeltzer – Commission Staff - Update of final draft00:40:41sir. Before you, David Smeltzer, Commission Staff.
- 00:40:45before you make a motion on final edits. When we are implementing Commissioner
- 00:40:49Hjaltman's into a draft. We identified one line
- 00:40:52in the rule that says the data, the initial filing should
- 00:40:55be made by February 1st. And then it said, like, or 60
- 00:40:59days after. That was a change that we rejected in discussion and didn't intend
- 00:41:02to include. So we removed that line from the final draft. So if you would.
- 00:41:06If that's acceptable, if your motion would include
- 00:41:09this edit in the discussion, that would be appreciated. It shouldn't
- 00:41:13change anything in the real world for the applicants. I'm fine with
- Clip 7 - Motion to adopt proposed rule00:41:16that. Okay. All right, then I will entertain
- 00:41:20a motion to adopt the proposed rule as modified by
- 00:41:23Commissioner Hjaltman's memo and our discussion. So
- 00:41:26moved. Second. I have a motion and a second.
- 00:41:30All those in favor say aye. Aye. Opposed? Motion prevails.
- 00:41:33Thank you all.
- Clip 11 - Project No. 57152 – Identifying Transmission Service Providers for Implementing the Permian Basin Reliability Plan00:41:37All right. I don't have anything, then, until we get to
- 00:41:41Item No. 11. That's Project No. 57152,
- 00:41:45identifying transmission service providers for implementing the Permian Basin Reliability
- Clip 11 - Commissioner Cobos provides update on Permian Basin Reliability Plan00:41:49Plan. I think we have an update from Commissioner Cobos. Yes.
- 00:41:52So just a quick update. I had the opportunity to go out to Midland this
- 00:41:56past Monday to speak to the membership of the Permian Basin
- 00:41:59Petroleum Association about the reliability plan
- 00:42:02that the Commission approved for the region. And just,
- 00:42:06you know, they're so excited out there about this massive development
- 00:42:10that's coming to unlock more oil and gas
- 00:42:13exploration drilling advancement. And so just
- 00:42:18to provide feedback to y'all that they are so appreciative of
- 00:42:21the work that has been done here to move this fast down
- 00:42:25the line and have this investment, you know, out there
- 00:42:29of ERCOT. And so I wanted to communicate that
- 00:42:33back. Thank you. No, I appreciate you bringing that feedback
- Clip 11 - Commissioner Glotfelty's thoughts on update on plan00:42:36back to us. I do have one thought on that. I was reading the
- 00:42:40comments by the stakeholders in this process,
- 00:42:44and Texas and New Mexico specifically brought up that they
- 00:42:47would like to be heard if they think a substation
- 00:42:51ought to be a different substation,
- 00:42:54and that would change who the line might be awarded to.
- 00:42:58And to me, that understanding
- 00:43:02that or hearing that would be pretty logical towards
- 00:43:06making a final decision. I don't know where that goes in this process, so it
- 00:43:09doesn't slow it down. But to me, it would seem like
- 00:43:13having the ability for multiple utilities
- 00:43:17to error what their views are
- 00:43:21shouldn't slow down the process. Tell me if I'm
- 00:43:24wrong, but I'm happy to hear your feedback. I mean, as long as it doesn't
- 00:43:27slow the process. I mean, I don't really have any feedback on this right now.
- 00:43:30But you know, I guess is
- 00:43:34there an opportunity for stakeholders to provide feedback still or we're just kind of
- 00:43:38moving through the process right now of like. So I think this is
- 00:43:41when ERCOT or the utilities file
- 00:43:45the designations as to who they
- 00:43:48think should build those lines. And all
- 00:43:52I would say is if during that open
- 00:43:55meeting that we're thinking about that maybe what we do is we provide an opportunity
- 00:43:59for somebody to come up and speak why
- 00:44:03they think it should be changed. I mean, I think
- 00:44:07they just deserve an airing of being able to speak their mind.
- 00:44:10Yeah, that's kind of a tough situation. Right. Because you don't want to go back
- 00:44:13and sort of reconstruct the plan. But I hear what you're saying.
- Clip 11 - Barksdale English - Feedback on the update on Permian Basin Reliability Plan00:44:17Barksdale, looks like you have feedback. I have not read those
- 00:44:21comments from tnmp, so this is subject to check.
- 00:44:24But the process that you all adopted provided
- 00:44:30for a period of time for stakeholders to contest the
- 00:44:33designation of endpoints and line ownership. And that time
- 00:44:37period has passed. So I know that those filings
- 00:44:41were made in the project. And so we're in the process now
- 00:44:45of severing out those contested routes from
- 00:44:48the kind of the omnibus plan
- 00:44:52order that should be coming before you. I don't
- 00:44:56know the timeline off the top of my head, but if TNMP
- 00:44:59had questions about the ownership that was. I think that was their opportunity to.
- 00:45:04They might have followed. It just struck me that when you've got
- 00:45:07debate between transmission and distribution owners,
- 00:45:13they should be heard. So. And that's exactly why we did that process, so we
- 00:45:16could have it on file, which hopefully they did. Right. Got it.
- 00:45:20Filled that in. Well, I don't withdraw my thought, but maybe
- 00:45:24I'm never withdraw your thoughts? Yes. Anyway, I'd like to be
- 00:45:28in a talk with about it and see if this happened or not. And TNMP
- 00:45:31did file a dispute on some projects, so that'll work itself out and
- 00:45:35perhaps that falls into that bucket of the dispute that will have
- 00:45:38to be worked itself out either with the corresponding TSPs
- 00:45:42or ultimately the contested case.
- 00:45:46Barksdale, thank you for that clarification on the bifurcated
- 00:45:49process. Anything else?
- 00:45:53All right, good work. Thank you. Yes.
- Clip 12 - Project No. 55421 – Texas Advanced Nuclear Reactor Working Group00:45:56 So that'll take us to Item 12. That is Project No.
- 00:46:0055421. Texas Advanced Nuclear Reactor
- 00:46:05Working Group and believe we have an update from Commissioner Jimmy
- 00:46:08Neutron. Commissioner Glotfelty,
- 00:46:13congratulations on getting the report out on Monday and the conference.
- 00:46:16I have my personal copy which I will ask you to sign.
- 00:46:20Sign after this. I will also ask VA to sign
- 00:46:23it. She will sign above you because we know who did most of the work.
- 00:46:26Absolutely right. Absolutely right. Congratulations. In all
- 00:46:30seriousness, congratulations. I know how much work you,
- 00:46:33all your team, everyone that was involved put in.
- 00:46:37I mean, if you just read through the names of all the folks that had
- 00:46:40some level of attribution to getting this done. A lot of work by a lot
- 00:46:44of folks. Wonderful job. Yeah. Thank you.
- Clip 12 - Commissioner Glotfelty's update on processing the report00:46:47 Thank you. It was a great experience for me
- 00:46:52to be a part of this and learned a lot,
- 00:46:55met a lot of people that are really, really smart and really, really dedicated to
- 00:46:59this. And I am just,
- 00:47:03you know, a lot of. It's like making
- 00:47:07sausage at the end of the process. But the report came out,
- 00:47:11I think, the way it's supposed to. There's a body of work behind it that
- 00:47:15people have spent a lot of time on, and that body of work still
- 00:47:18stands. Whether those final recommendations made it in here or
- 00:47:22not. There are still issues that can be utilized
- 00:47:26for discussion across the street to benefit the
- 00:47:31opportunity for nuclear power to expand in ERCOT.
- 00:47:35I'd be remiss if I didn't thank some people on the Commission
- 00:47:39Staff who were really helpful,
- 00:47:43obviously. VA, who led the effort
- 00:47:49here from a logistics perspective. She did a
- 00:47:53great job. She was a leader by far and recognized
- 00:47:56by everybody on the working group. Tyler Nicholson
- 00:48:00and Jacob Bulzak from the Staff. They were really involved and we appreciate
- 00:48:04them. Jay Stone, we couldn't have done it without him
- 00:48:08helping us get money and have the RFP passed
- 00:48:11to let us use the Bureau of Business Research to
- 00:48:15help get it written. Lauren, who helped with
- 00:48:19scheduling. Jess and Brooke, who were really, really involved.
- 00:48:23Jess, thank you for all of the minutes that you wrote that was
- 00:48:27important. Rich, Ellie, Drake, Deidrez,
- 00:48:31all involved in how we did this at the end. And then I
- 00:48:34would like to especially thank the Commissioners. Kathleen, you were at every
- 00:48:39meeting. You could be and is such a believer in nuclear power and everybody
- 00:48:43else. This wasn't an easy
- 00:48:46process outside of the Commission, but we did
- 00:48:50the best we could. I think the Governor's extremely happy.
- 00:48:53The positive nature of the
- 00:48:57reporting on this, I think, is a testament to those who were part
- 00:49:01of it. So I'm appreciative. If you need a
- 00:49:04copy, it's on the PUC. It's in the docket.
- 00:49:08And thank you.
- 00:49:11It's nice to get back to being a regular Commissioner.
- 00:49:15A lot of freed up time now. We throw some other things your way,
- 00:49:18so it's good to know. Oh, I forgot. Francisco Francisco
- 00:49:22Castellanos, who was the. Who printed.
- 00:49:25Who printed this report. So everyone
- 00:49:29deserves a thank you from me on that and from the Governor's office.
- 00:49:33And thank you all very much. Thank you for all the work on
- 00:49:36this. We will be having a signing opportunity
- 00:49:41after the open meeting. Commissioner Jackson
- 00:49:44has got a celebratory cake for you and VA. So for
- 00:49:47those who are available after the open meeting to celebrate all the
- 00:49:51great work, but part of your duty during that will be to sign at
- 00:49:55least my copy of the report. So,
- 00:49:58again, tremendous work.
- 00:50:01Glad that part's behind you. But the work's just beginning,
- 00:50:05in all honesty, so great job. Thank you.
- 00:50:08Congratulations. Thank you.
- 00:50:11Okay, so that will take us. I don't have anything on 13. 21
- 00:50:16got consented. So that'll take us to Item 25.
- 00:50:20Hey, can I go back and Danny Ziggin,
- 00:50:24who works at the University of Texas.
- 00:50:27I didn't mention her when I was speaking at the Texas Nuclear
- 00:50:31alliance meeting. She was hired by
- 00:50:36the nuclear Engineering group at UT and helped us tremendously
- 00:50:40through the months and months and months of this process. And I didn't thank her
- 00:50:44then, but she deserves a thank you now.
- 00:50:48So I'd like to get that in the record that she.
- 00:50:52I thank her for all of her work. Very good.
- Clip 25 - Project No. 56822 – Issues Related to the Disaster Resulting from Hurricane Beryl00:50:56Okay. So that'll bring us to item 25.
- 00:51:00That is Project No. 56822.
- 00:51:03Investigation of emergency preparedness and response by utilities in
- 00:51:07Houston, surrounding communities. I think we have our Beryl
- 00:51:11investigation report.
- Clip 25 - Luisa Venegoni – Commission Staff - Beryl Investigation Report00:51:14Good morning, Luisa. Good morning. Luisa Venegoni with Staff.
- 00:51:18I just quickly want to say a few thank yous. I want
- 00:51:21to thank the team that came together for this project. It was first
- 00:51:25of its kind and we had folks from about eight different divisions involved
- 00:51:29in information gathering and analysis and drafting the
- 00:51:33report. Particularly, I want to thank JB Laser for
- 00:51:36his leadership on this project. We also had folks like
- 00:51:41it comms and public engagement involved in supporting
- 00:51:44the online public comment form and the workshop
- 00:51:48we did in Houston. All in all,
- 00:51:50very big collaborative effort and we had a really strong team involved. So just
- 00:51:55want to thank everyone for that.
- 00:51:57Absolutely. Commissioners, any questions
- 00:52:01of staff thoughts on the. The report?
- 00:52:05No, I think the report was great. Thank you for all your work on it.
- 00:52:08I know it was lots of time spent, so thank you for that.
- 00:52:11Yes, thank you. I know a lot of man hours are put into that and
- Clip 25 - Commissioner Glotfelty's thoughts on the report00:52:15appreciate all the hard work. I have
- 00:52:18two comments, one of. And neither of them require
- 00:52:22a change in the report, but I think that I
- 00:52:26just like to make sure that the utilities hear
- 00:52:31this. One of them is that one of the recommendations
- 00:52:35is annual hurricane and major storm drills
- 00:52:38with other utilities, it's important that
- 00:52:43major contractors and vegetation management companies be involved in those
- 00:52:47as well. It's not specifically stated, but I think what we found with
- 00:52:52Beryl was that they are
- 00:52:55part of the critical path and understanding how they can get there and when
- 00:52:58they can get there on time would be an important part of those
- 00:53:03drills going forward. So I would just say that I hope
- 00:53:07they can do that. And secondly, I would say that I
- 00:53:11don't know if this is the case across all systems, and I do believe that
- 00:53:14CenterPoint is fixing this. But when you have
- 00:53:18mutual assistance crews go out and fix the system,
- 00:53:23the work order process for delivering those to
- 00:53:27the mutual assistance crews and the confirmation
- 00:53:31that the work has been completed should be electronic. In this day and age,
- 00:53:35it shouldn't be paper copies,
- 00:53:38which increases time and effort of those driving.
- 00:53:43If it's paper. That is something that was a challenge that I think CenterPoint
- 00:53:47had during Beryl. I think they are absolutely fixing it because
- 00:53:52that allows the information for the outage update,
- 00:53:56the outage tracker to be more timely for consumers.
- 00:54:00So I would just say that work on that would be pretty important
- 00:54:04to ensure that all the data that the consumers see is accurate
- Clip 25 - Chairman's thoughts on the report00:54:07and up to date. Yeah. And I would just say in regards
- 00:54:11to that, when I went to Houston to do the press conference
- 00:54:15with the Governor, we went out with CenterPoint and I did hear those
- 00:54:18same kind of complaints from those crews that the amount of driving
- 00:54:22at the end of the day to get from where they were working back to
- 00:54:25the site to submit their paperwork and then drive sometimes,
- 00:54:28you know, tens of miles back to the hotel at the end of the
- 00:54:31day was adding a lot to their work day. And so I think points well
- 00:54:34taken.
- 00:54:38Anything else as far as the recommendations for the
- 00:54:41Commission to go forth on, do we need to do anything in regards to those?
- 00:54:44Chairman? Yeah. So I think since the
- 00:54:48ask is for these to be included, this report to be included
- 00:54:52as an addendum to the agency report, I think it makes sense
- 00:54:55to have a motion to approve the report and to have
- 00:54:59to authorize staff to put this report as an addendum to
- 00:55:02the agency report report. And then probably since it's,
- 00:55:05you know, got some length to it, let staff make any perfecting,
- 00:55:09non substantive changes they need to. So Connie,
- Clip 25 - Connie Corona – Executive Director - Rule changes on the report00:55:14does that make sense? Yes, it absolutely does.
- 00:55:17And I what I heard also in Commissioner Hjaltman's
- 00:55:22question is where we recommended rule changes
- 00:55:26in the report. We will go ahead and add those onto
- 00:55:30our rulemaking list for a
- 00:55:34time when thank you for listening to my question, Connie. That's very
- 00:55:37nice of you. You can't go wrong when you
- 00:55:41ask Connie a question. She's always going to lead you in the right direction.
- 00:55:45Your mistake. Still not listening. Your mistake, Commissioner, was looking at me to
- 00:55:49answer that question as opposed to looking to Connie.
- Clip 25 - Motion to approve Beryl Investigation Report as an addendum to Agency Report00:55:52Okay. Anything else? All right. Well, then I
- 00:55:56will entertain a motion to approve the Beryl investigation report and
- 00:56:00to include this report as an addendum to our agency report
- 00:56:04and authorize Staff to make any perfecting or non substantive changes
- 00:56:08they need. So moved. Second. I have a motion and a second. All those in favor
- 00:56:11say aye. Aye. Opposed? Motion prevails.
- 00:56:14Luisa, everybody. Great job. Thank you.
- 00:56:18So that brings us to the end of the agenda.
- 00:56:23I believe Commissioner Cobos would like to give us an update.
- Clip 25 - Commissioner Cobos announces her departure from the PUC Commission00:56:27 Thank you, Chair Gleeson. Just a brief update.
- 00:56:31I have let Governor Abbott know that I will be leaving the PUC at the
- 00:56:34end of the year. I will have a much broader
- 00:56:37statement and a whole lot more to say at the last open meeting in December,
- 00:56:40December 19th. But I do want to say that it
- 00:56:44has been a tremendous honor and a privilege to serve as PUC
- 00:56:48Commissioner. I want to thank the Governor for the opportunity
- 00:56:51of a lifetime and for placing his trust in me to serve on
- 00:56:55the commission after Winter Storm Uri. I was one of the three
- 00:56:59that got appointed after the devastating storm. I want to thank my
- 00:57:02Commissioners. It's been such a pleasure working with
- 00:57:06y'all. Thank you for your friendship and support. I'll say a lot more later.
- 00:57:10My staff and everybody else, you know,
- 00:57:14we've accomplished an extensive list of important milestones at the
- 00:57:17Commission over the last several years, and I am
- 00:57:20proud and tremendously grateful to have been part of that amazing work
- 00:57:24that the commission has done for our state.
- 00:57:28Thank you, Commissioner Cobos. And, yeah, we'll save the
- 00:57:32longer speeches for a later date. But, you know,
- 00:57:36like I told Peter and Will when they were leaving,
- 00:57:40thank you for being willing to say yes. These were
- 00:57:43not jobs that people were falling all over themselves to come take right after
- 00:57:47Winter Storm Uri. It took a special kind of person and
- 00:57:50a heart of a public servant to want to come and do this, you know,
- 00:57:54right after the storm. And, you know, as Executive Director back
- 00:57:57then, I appreciate your willingness to do that. I appreciate our
- 00:58:01working relationship, the friendship that we've developed
- 00:58:04over that time as well. And you will be missed up here.
- 00:58:08Here. Thank you.
- Clip 29 - Chairman Gleeson adjourns meeting00:58:11All right. Well, with there being no further business in front of us,
- 00:58:15this meeting of the Public Utility Commission of Texas is hereby adjourned.