WEBVTT

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<v ->We're good?</v>

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<v ->Yes, sir.</v>
<v ->All right.</v>

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<v ->Allow me to put
the participants in.</v>

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<v ->Sure.</v>
<v ->Okay, Lois.</v>

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We have Chairman Lake
and Commissioner McAdams,

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so if you'll just let us know

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when the participants are live.

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(gavel bangs)

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<v ->This meeting of
the Public Utility Co--</v>

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<v ->We gotta wait
for Lois to bring us</v>

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the meeting live for the public.

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<v Lois>Chairman Lake, the
participants are online now,</v>

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the public that's online.

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<v ->Thank you,
Lois, I'll try again.</v>

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<v McAdams>All set.</v>
(gavel bangs)

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<v ->This meeting of the Public
Utility Commission of Texas</v>

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will come to order to consider matters

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that have been duly posted
with the secretary of state

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of Texas for June 3rd, 2021.

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For the record, my name is Peter Lake.

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With me today is Will McAdams.

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Before we go into public
comment, I wanna thank everybody

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for being here.

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I know this is a new
structure for the PUC

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and I would like to open with saying

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that these work sessions
are a venue and a forum

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for discussion, exchange
of ideas, conversation.

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It is not a decision making forum

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or a forum for taking
action that we will continue

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to preserve that for our
standard open meetings.

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This is very much a discussion venue.

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I wanna make sure that
everybody has a clear sense

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of our purpose and structure here.

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I think that works with
both our intentions.

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<v ->I very much appreciate it.</v>

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I think at the least, these
interim workshop open meetings

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provide us a way to work
through some of the details

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before the actual
decision points come up

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and I think a couple of the items

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that we can discuss
today help tee that up

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and also provide more of
a runway for public notice

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so that they can get ready
for those ultimate decisions.

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<v ->Good point.</v>

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All right, at this time, we'll
open up for public comment.

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I invited world testimony for...

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Specific agenda items will be
heard when that item is heard.

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This is for general comments
related to today's agenda.

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Speakers will be limited
to four minutes each.

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Lois, could you go ahead,
come on and provide instructions

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to the public on how
they can be recognized

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if they wish to speak?

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Lois?

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Do we still have the operator with us?

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<v Lois>I'm sorry, yep, I am here.</v>

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If you do have a comment,
please press one then zero.

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Again, it's one, zero.

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<v ->We'll give it a minute</v>

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and the operator will let us know

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if we have anyone in the queue.

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Do we have anybody, Lois?

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<v Lois>We have two people
that have queued up.</v>

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We're getting their names at this time.

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<v ->(indistinct) the timer.</v>

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<v Lois>The first comment
is from Rita Roblar,</v>

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please go ahead.

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<v Rita>Hi, my name is Rita Roblar</v>

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and I reside in Houston, Texas

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in the neighborhood of Denver
Harbor, which is Northeast

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of Downtown inside the
610 loop between I-10.

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Anyway, that neighborhood there,

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I grew up there and I
recently moved back.

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I'm a community
activist and the residents,

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there's over 24,000
people that live in that area

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and after hurricane, I'm
sorry, I always say hurricane,

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Winter Storm Uri happened,
we had a lot of damage over there

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where a lot of people had
busted pipes because of the freeze

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and there are still people today,

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I actually spoke with somebody today

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who is still waiting for help.

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I was trying to connect
people where they were

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with some nonprofit organizations

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that were doing the repairs for free

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and she still has been called on

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because the one that we were
working with ran out of money

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and now there's another nonprofit.

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So she has to go through the
whole bidding all over again.

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We're talking about most
of these people are elderly,

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they're on (indistinct), they
live in homes since the '40s.

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So if you were to stop
the moratorium right now

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about the electricity and whatnot,

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these people are still
trying to get on their feet

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and now it's summertime.

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We have the heat in the
'80s, degrees and above

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and then it's also the
beginning of hurricane season.

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If they can get a (indistinct),

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they're gonna start off all
over again from square one

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and we really need some more
support, we need more help.

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We need it to be extended
just a little bit longer

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so that they can at least be prepared

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or try to be prepared for
the next natural disaster.

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Thank you.

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<v ->Thank you for your
comments, next speaker, please.</v>

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<v Lois>The next
comment is from the line</v>

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of Carolyn Rivera, please go ahead.

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<v Carolyn>Good
morning, Chairman Lake</v>

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and Commissioner McAdams.

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My name is Carolyn Edison Rivera.

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I am a community
advocate, volunteer with Fear,

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Northeast Action Collective
and West Street Recovery.

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I live in Northeast
Houston, which is one

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of the many areas that
experienced a catastrophic crisis

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which included death during
the Texas February winter storm.

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Thank you for initiating the moratorium

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to give us some relief.

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As part of the large
vulnerable population in Texas,

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we are asking that you extend
the moratorium beyond June 11.

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Many homes in Texas were not built

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to withstand extensive
freezing temperatures.

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As a result, there were
many unplanned damages.

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I am still repairing my home
from the effects of the freeze

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and I'm 77 years old.

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Last weekend, underground
and outside pipes burst,

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which were weakened from the
freeze and had to be replaced.

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The economic impact
of repair, the pandemic

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and loss of jobs is devastating.

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We are officially in hurricane season

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with the potential for more
damages to homes, property

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and additional loss of income.

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The moratorium should be extended

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at least through the summer to assist

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with high utility bills.

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The Utility Commission set the standard

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for utility companies to follow.

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Thank you again for
protecting the people of Texas.

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Texans are experiencing a
slow recovery due to the storm,

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the pandemic and loss of jobs.

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To continue protecting
Texans, there is a need to extend

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the moratorium past
June 11th, thank you.

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<v ->Thank you for your comments.</v>

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Next speaker, please.

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<v ->At this time, there's
no other participants</v>

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in queue.
<v ->Thank you, Lois.</v>

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Given there are no other speakers,

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public comment is now closed.

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We'll move on to the formal agenda.

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Item number one, I don't have anything.

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Will, do you?
<v ->I do not.</v>

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<v ->All right, item number
two, I know you filed a memo.</v>

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It will be a good point of discussion.

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<v Will>Yes, sir.</v>

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<v ->I think we're gonna
start off with Mr. Gleason</v>

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providing a brief overview.

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<v ->Good morning,
Commissioners, thank you.</v>

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The public comment is a
good segue into this item.

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As everybody knows, on
February 21st of this year,

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the Commission issued an order stating

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that a public emergency
still existed and as such,

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they issued an order that
basically put the moratorium

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on disconnect for
nonpayment for customers.

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That's now extended
for over three months.

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We've had discussions internally
and with you all separately

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about the proper time
to end that moratorium.

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As you said, Commissioner
McAdams filed a memo on June 1st.

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In response to that, multiple
companies, energy companies,

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TXU, members of arm
and team associations

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filed memos saying what
is out there for customers

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to assist customers, what they would do,

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the steps they would
take to help customers

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if the moratorium was lifted.

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Additionally, there are state resources

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that can be leveraged.

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Those programs are administered

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by the Texas Department of
Housing and Community Affairs.

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So this morning we
asked Bobby Wilkinson,

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the executive director of TDHCA to come

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and give you all a presentation

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and detail what those programs are

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and how they can
benefit utility customers.

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<v ->Thank you, it's a tough balance</v>

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between taking care of
consumers but also ensuring

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the continuity of business
operations for our reps.

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If it works for you, you can go ahead

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and invite Bobby up to...

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<v ->Yeah, I'd love to hear
what he has to say.</v>

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<v ->Lay out the programs his
agency has for consumers.</v>

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<v ->Good morning.</v>

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Chairman Lake, thanks for having me.

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Commissioner Williams, good to meet you.

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We have a couple of programs--

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<v Lake>Start with name and agency.</v>

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<v ->Oh yes, sir, I'm sorry.</v>

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I should know the drill by now.

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Bobby Wilkinson, executive
director of Texas Department

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of Housing and Community Affairs.

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We have a couple of
programs that help people

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with energy bills.

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One is permanent, it's one
that we administer every year

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and federally, it's LIHEAP,

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that's the Low Income Home
Energy Assistance Program

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and it goes through federal HHS.

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Our 2021 LIHEAP for the state of Texas

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is about $161 million Statewide

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but we got little bumps
with the CARES Act

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and the American Rescue Plan.

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CARES Act had an additional $94 million,

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American Rescue Plan
had an additional $134 million

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so we're well over
double the normal amount.

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The department doesn't
administer those directly.

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We go through a network of subrecipients

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and this is standard practice.

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We've done it for years but
all 254 counties are covered.

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I have a list of subs, if needed.

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<v Will>For the
purposes of the public,</v>

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can you delineate the
qualifications for LIHEAP?

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<v ->Sure, LIHEAP, it's federal,</v>

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it's not something we can adjust

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and it's 150% of federal
poverty level or below.

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That's Statewide, it
doesn't differ by county

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or anything that's federal
poverty levels that way.

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For one person, that's $19,320.

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For a family of four, it's a
household income of $39,750.

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As far as what income counts
and how to calculate that,

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when you work with
the sub if you're close,

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they'll help you figure it out.

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This one's for owners and renters.

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It doesn't matter,
it's agnostic that way.

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Most of the money
goes to utility assistance.

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There is also a weatherization
component as well.

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There's priority populations
that are to be served first

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and they get a little more
generous benefit are the elderly,

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disabled and households
with children under six.

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They're supposed to
receive services first.

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It's based on an annual usage.

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There's like a max benefit
of $3,200 for a zero to 50%

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of federal poverty level
and then it tears up to $2,800

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for 51% to 100% of federal poverty level

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and $2,400 for above 100% to 150%.

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We made some adjustments
after the winter storm.

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We took February out of the maximum

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so that builds kind of a freebie

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if you still had that
outstanding at this time.

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Those maximums I gave are doubled

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from what they were previously.

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This is to make the benefit
more generous, of course

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and then also, frankly, to
help get the money out the door

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because we're at
double the normal volume

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and our subrecipients,
it's hard for them

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to kinda build the
capacity to get it out.

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If you're just listening right
now and you're wondering,

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how do I find this or sign up for this,

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just put help for Texans
in your search bar

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and you'll come to a spot
on our webpage, TDHCA

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and there's some buttons down below

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whether you need rental
assistance or utility assistance

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or some of the other programs we offer

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and you put in your county or your city

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and it'll pop up with the phone number

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and the website for the
subrecipient that would serve you.

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<v Lake>And this is
all within LIHEAP?</v>

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<v ->Yes, this is all LIHEAP.</v>

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Now the other one--

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<v ->Quick follow up
question to that.</v>

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You've got over 200
million, it sounds like

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in qualified funding, how
much of that is still available?

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<v ->I have to get
back to you on that.</v>

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It changes monthly.

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I can definitely tell
you that $94 million

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of LIHEAP CARES is mostly
done and then the $134 million

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from the Rescue Plan Act
is probably barely touched.

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<v Lake>Okay, so over
134 million available</v>

00:14:56.940 --> 00:14:59.020
and the maximums have been raised

00:15:00.030 --> 00:15:03.000
due to the unique nature
of the events this year.

00:15:03.000 --> 00:15:05.900
So I think by calculus,
a qualifying household

00:15:05.900 --> 00:15:09.710
will be eligible for over
$500 a month with the double,

00:15:09.710 --> 00:15:11.982
the $3,200 a year.

00:15:11.982 --> 00:15:14.680
<v ->Depending on how much
arrears they had or whatnot.</v>

00:15:14.680 --> 00:15:17.670
<v Lake>But the total max
would be over $500 a month</v>

00:15:17.670 --> 00:15:19.220
if they qualify, okay.

00:15:19.220 --> 00:15:24.073
<v ->In that vein, for a senior
citizen household of one,</v>

00:15:25.350 --> 00:15:28.830
the annual income with
their own fixed income

00:15:28.830 --> 00:15:31.080
and we're talking about
social security, say,

00:15:32.090 --> 00:15:36.063
what's the target income
range that qualifies?

00:15:37.074 --> 00:15:40.030
<v ->$19,320.</v>
<v ->$19,000, okay.</v>

00:15:40.030 --> 00:15:40.863
Thank you.

00:15:41.760 --> 00:15:44.260
<v Bobby>Those are federal,
we can't adjust them.</v>

00:15:46.640 --> 00:15:47.950
<v ->All right, keep
going, thank you.</v>

00:15:47.950 --> 00:15:52.400
<v ->The other program is
more temporary in nature.</v>

00:15:52.400 --> 00:15:55.270
It's coming in two tranches.

00:15:55.270 --> 00:15:58.890
We had from the COVID
package at the end of last year,

00:15:58.890 --> 00:16:03.890
the initial $1.3 billion
for Texas rent relief.

00:16:04.170 --> 00:16:06.930
That's our brand name, of
course not the federal name

00:16:06.930 --> 00:16:08.960
and then in ARPA,

00:16:08.960 --> 00:16:11.223
we have another billion
coming to the state.

00:16:12.690 --> 00:16:17.520
Also, localities above
250,000 got their own allocation

00:16:17.520 --> 00:16:19.200
of that same pot of funding

00:16:19.200 --> 00:16:24.200
and it's for rent assistance
or utilities, either one.

00:16:25.880 --> 00:16:29.030
We have a website, texasrentrelief.com

00:16:30.160 --> 00:16:32.650
and an 800 number, 833-989-7368.

00:16:37.560 --> 00:16:39.410
We can serve multiple languages,

00:16:39.410 --> 00:16:41.650
the website's in multiple languages

00:16:41.650 --> 00:16:42.680
and we have language service with it

00:16:42.680 --> 00:16:44.080
for the call center as well.

00:16:47.240 --> 00:16:52.230
To qualify, you need to be at
80% of area median income

00:16:54.090 --> 00:16:59.090
and have some kind of
back rent due or back utility.

00:17:02.090 --> 00:17:06.123
If you have a late utility bill
and you're below 80% AMI,

00:17:07.620 --> 00:17:08.603
you can qualify.

00:17:09.460 --> 00:17:12.450
<v Will>That is interpreted broadly</v>

00:17:12.450 --> 00:17:15.650
so it doesn't have to be tied
to any type of COVID layoff

00:17:15.650 --> 00:17:18.870
or anything like that, you just
have to be behind on a bill?

00:17:18.870 --> 00:17:21.043
<v ->Correct, yes.</v>
<v ->Great.</v>

00:17:25.000 --> 00:17:28.813
<v ->You have to be financially
impacted during the pandemic.</v>

00:17:30.060 --> 00:17:31.200
You don't have to draw a direct line

00:17:31.200 --> 00:17:34.583
or increased costs during the pandemic.

00:17:38.480 --> 00:17:42.280
For this one, we can do
electric gas, propane, water,

00:17:42.280 --> 00:17:44.620
trash and sewer.

00:17:44.620 --> 00:17:49.030
We can go arrears as far
back as March 13th, 2020

00:17:49.030 --> 00:17:51.060
at the beginning of the disaster

00:17:51.060 --> 00:17:53.800
and then we can do current
month plus two future.

00:17:53.800 --> 00:17:58.637
<v ->Okay.</v>
<v ->Let's see.</v>

00:18:01.793 --> 00:18:05.150
I would say, definitely apply now.

00:18:05.150 --> 00:18:09.090
Don't wait for any disconnect
moratorium to end or anything

00:18:09.090 --> 00:18:12.380
just because we have tens
of thousands of people in line,

00:18:12.380 --> 00:18:15.260
we're paying now
close to $10 million a day

00:18:15.260 --> 00:18:18.421
and we're over 1,000, 1,500 households--

00:18:18.421 --> 00:18:20.223
<v ->$10 million a day?</v>
<v ->Yes.</v>

00:18:21.150 --> 00:18:24.020
We're proving that checks
are sometimes a little slower.

00:18:24.020 --> 00:18:27.230
In fact, if you are a utility generator,

00:18:27.230 --> 00:18:31.350
if you could enter into a direct
transfer agreement with us,

00:18:31.350 --> 00:18:35.030
it would really help things
up, paper checks are...

00:18:35.997 --> 00:18:36.830
<v Lake>A little slower.</v>

00:18:36.830 --> 00:18:38.700
<v ->Been slowing us
down a little bit, yeah.</v>

00:18:38.700 --> 00:18:41.080
<v Lake>So it's 10 million
a day of approvals</v>

00:18:41.080 --> 00:18:44.023
and utility assistance for
how many households?

00:18:46.263 --> 00:18:48.807
<v ->A day, approvals
are 1,000, 1,500.</v>

00:18:50.850 --> 00:18:52.330
It varies, it dips on
the weekends a little bit

00:18:52.330 --> 00:18:54.250
and we have stronger
days during the week.

00:18:54.250 --> 00:18:55.590
<v Lake>That's extraordinary.</v>

00:18:55.590 --> 00:18:59.520
<v ->We have about $250
million either dispersed</v>

00:18:59.520 --> 00:19:00.860
or the payment's approved

00:19:00.860 --> 00:19:03.650
and it's just a matter of the transfer,

00:19:03.650 --> 00:19:05.643
speed of banking or cutting the check.

00:19:07.196 --> 00:19:09.480
It's been picking up lately.

00:19:09.480 --> 00:19:12.090
Don't expect a two-day
turnaround, though.

00:19:12.090 --> 00:19:14.740
It's still gonna take you a
few weeks to get through.

00:19:16.340 --> 00:19:19.980
The more complicated your
case is, the harder it might take

00:19:19.980 --> 00:19:21.350
and if you don't have
all the documentation,

00:19:21.350 --> 00:19:23.960
so try to read carefully
when you go to the website

00:19:23.960 --> 00:19:24.840
if you're listening in

00:19:24.840 --> 00:19:27.550
and give us all the information we need.

00:19:27.550 --> 00:19:29.890
Make sure you have a good
phone number and email address

00:19:29.890 --> 00:19:31.510
so that when we try to contact you,

00:19:31.510 --> 00:19:32.563
that we can do so.

00:19:33.740 --> 00:19:34.573
<v ->Lemme ask you something.</v>

00:19:34.573 --> 00:19:38.320
Once enrolled in your system,
you are saved in the system.

00:19:38.320 --> 00:19:42.880
So if a hurricane hits or
some type of other event

00:19:45.610 --> 00:19:48.400
overlapping with the COVID event occurs

00:19:48.400 --> 00:19:51.580
and they reapply for
assistance later on,

00:19:51.580 --> 00:19:54.650
they are already enrolled so
it becomes that much easier

00:19:54.650 --> 00:19:57.440
to gain assistance in the future?

00:19:57.440 --> 00:19:59.690
<v Bobby>Yeah, we only do
current and two months future</v>

00:19:59.690 --> 00:20:04.690
and then if you still income
qualify later and need help,

00:20:04.860 --> 00:20:07.294
we can also provide assistance again.

00:20:07.294 --> 00:20:08.461
<v ->Okay.</v>
<v ->Yeah.</v>

00:20:09.479 --> 00:20:11.690
<v ->It's safe to say there's a
tremendous amount of resources</v>

00:20:11.690 --> 00:20:15.540
being deployed every day
for this kind of assistance?

00:20:15.540 --> 00:20:18.440
<v ->Definitely, we have
a external dashboard</v>

00:20:18.440 --> 00:20:19.640
if anyone cares to look.

00:20:19.640 --> 00:20:21.450
If you go to texasrentrelief.com

00:20:21.450 --> 00:20:24.770
and you click the link up at
the top, there's a dashboard.

00:20:24.770 --> 00:20:26.270
It actually doesn't add up to 250.

00:20:26.270 --> 00:20:30.460
It's like a day behind or
whatnot but it should be

00:20:30.460 --> 00:20:32.313
about $250 million within a few days.

00:20:35.810 --> 00:20:38.610
<v Will>So there's more federal
money on the way as well?</v>

00:20:38.610 --> 00:20:40.550
<v ->Correct, now,
we're still just working</v>

00:20:40.550 --> 00:20:44.740
on that first $1.3
billion, the second billion

00:20:44.740 --> 00:20:47.223
and this is to the state, not
counting what goes to locals.

00:20:49.010 --> 00:20:50.930
Comptroller's received about 40% of it

00:20:50.930 --> 00:20:52.930
and then we'll get the rest of it later.

00:20:54.080 --> 00:20:56.410
The goal is to get it all
out as soon as possible,

00:20:56.410 --> 00:20:58.440
actually have on that
second pot of a few years

00:20:58.440 --> 00:21:01.073
but I don't see any
reason to dribble that out.

00:21:01.944 --> 00:21:03.400
<v Lake>So it's safe to say
there are multiple hundreds</v>

00:21:03.400 --> 00:21:05.700
of millions of dollars
available right now?

00:21:05.700 --> 00:21:07.713
<v ->At least over a billion, yeah.</v>

00:21:10.940 --> 00:21:12.006
<v Lake>All right.</v>

00:21:12.006 --> 00:21:15.270
<v ->I don't think I have any
more talking points on it.</v>

00:21:15.270 --> 00:21:17.573
If anyone has any questions,
I'll be happy to answer.

00:21:18.580 --> 00:21:21.430
<v ->For folks listening in,
could you lay out that website</v>

00:21:21.430 --> 00:21:22.680
and phone number one more time?

00:21:22.680 --> 00:21:24.943
<v ->Sure, texasrentrelief.com.</v>

00:21:29.490 --> 00:21:31.417
The 800 number is 833-989-7368.

00:21:38.200 --> 00:21:39.510
This is for renters only.

00:21:39.510 --> 00:21:41.770
I think I might've
failed to mention that

00:21:41.770 --> 00:21:44.660
and again, for that other resource,

00:21:44.660 --> 00:21:47.433
if you're below 150% of
the federal poverty level,

00:21:48.710 --> 00:21:52.490
just Google or search
bar help for Texans

00:21:52.490 --> 00:21:53.660
and then at the bottom, click

00:21:53.660 --> 00:21:56.590
that you need utility
assistance and enter your county

00:21:56.590 --> 00:21:58.800
and you'll be able to
find the subrecipient

00:21:58.800 --> 00:22:00.003
that serves your area.

00:22:01.340 --> 00:22:03.650
<v Lake>Outstanding,
any other questions--</v>

00:22:03.650 --> 00:22:05.020
<v Will>Good deal.</v>

00:22:05.020 --> 00:22:06.417
<v ->Chairman?</v>
<v ->Yes, ma'am.</v>

00:22:08.030 --> 00:22:10.010
<v ->Connie Corona,
Commission staff.</v>

00:22:10.010 --> 00:22:13.850
I just wanted to emphasize a
point that Mr. Wilkinson made

00:22:13.850 --> 00:22:17.853
to our retail electric
providers that are listening.

00:22:18.890 --> 00:22:21.650
In order to smooth the
way with this assistance,

00:22:21.650 --> 00:22:25.350
they should be registering with TDHCA

00:22:25.350 --> 00:22:30.350
to receive direct deposit of
funds rather than a paper check

00:22:31.000 --> 00:22:33.040
and that will help immensely.

00:22:33.040 --> 00:22:37.970
So a reminder to that, and
we will post some information

00:22:37.970 --> 00:22:42.650
on our website about how
they can contact TDHCA for that.

00:22:42.650 --> 00:22:43.483
<v ->Very good point, thank you</v>

00:22:43.483 --> 00:22:45.980
and just to be clear,
that direct deposit

00:22:45.980 --> 00:22:47.210
to the retail electric provider

00:22:47.210 --> 00:22:50.527
is on behalf of households and arrears

00:22:50.527 --> 00:22:54.490
and that's just a more
logistically streamlined method

00:22:54.490 --> 00:22:58.803
of relieving that utility bill burden.

00:23:00.210 --> 00:23:01.190
<v ->Yes, sir.</v>
<v ->Excellent.</v>

00:23:01.190 --> 00:23:02.190
Thank you very much.

00:23:05.060 --> 00:23:08.010
<v ->In the vein of
agency communication</v>

00:23:08.010 --> 00:23:12.743
and the state of Texas
communication to consumers,

00:23:13.963 --> 00:23:17.020
and this will come up
on other things as well.

00:23:17.020 --> 00:23:19.220
Again, we've been stressing
greater communication

00:23:19.220 --> 00:23:22.300
with the public, especially
in the aftermath of Uri

00:23:22.300 --> 00:23:27.300
but the PUC staff has
been working on a one pager

00:23:27.980 --> 00:23:31.630
of resources that will
be available to the public

00:23:31.630 --> 00:23:36.630
with the design to distribute
that just from the agency

00:23:37.590 --> 00:23:40.510
but also to the legislature as well

00:23:40.510 --> 00:23:42.910
because one of the things
that's gonna be coming up,

00:23:42.910 --> 00:23:47.910
especially as we move
away from signing (indistinct)

00:23:47.950 --> 00:23:50.160
and the conclusion of session
is legislative newsletters

00:23:50.160 --> 00:23:50.993
will be going out.

00:23:50.993 --> 00:23:53.140
District officers will be
promulgating everything

00:23:53.140 --> 00:23:56.970
that their state government
did during the session.

00:23:56.970 --> 00:23:59.530
So at least something
from PUC can go out

00:23:59.530 --> 00:24:03.970
on the widest possible
distribution to the public

00:24:04.990 --> 00:24:09.560
providing a one-stop
resource for all these programs

00:24:09.560 --> 00:24:13.027
that they can access either
through TDHCA or 211.

00:24:13.950 --> 00:24:18.950
I know retailers are present
to brief on what they can offer

00:24:19.090 --> 00:24:24.090
to consumers but I think
staff has a good workup

00:24:24.240 --> 00:24:25.540
that could go out as well.

00:24:26.760 --> 00:24:29.320
<v ->Can we make that available</v>

00:24:29.320 --> 00:24:31.280
if it's not already on the...

00:24:31.280 --> 00:24:34.730
<v Connie>Absolutely, we're
putting the final touches on it</v>

00:24:34.730 --> 00:24:38.150
and we'll make that
available for distribution.

00:24:38.150 --> 00:24:40.769
<v ->Thank you, good
point, thank you.</v>

00:24:40.769 --> 00:24:42.335
Thank you, Bobby, really appreciate it.

00:24:42.335 --> 00:24:43.427
<v Bobby>Thanks for having me.</v>

00:24:43.427 --> 00:24:45.150
<v ->I don't know if
it's appropriate.</v>

00:24:45.150 --> 00:24:49.270
At this time, I'd like to let you know,

00:24:49.270 --> 00:24:53.200
on this issue, I have engaged with AARP

00:24:53.200 --> 00:24:58.200
'cause to me, when I was on
the eve of publishing my memo,

00:24:59.050 --> 00:25:01.230
it was certainly compelling a story

00:25:01.230 --> 00:25:03.940
as we heard from the public
comments at the beginning

00:25:03.940 --> 00:25:08.120
of the open meeting, that
we've got a vulnerable population.

00:25:08.120 --> 00:25:09.890
Senior citizens, they own their homes

00:25:09.890 --> 00:25:12.440
so they may not qualify
for the rent relief program

00:25:14.040 --> 00:25:19.040
but as I was talking
through this issue with AARP,

00:25:20.158 --> 00:25:21.120
one of the things that came up was,

00:25:21.120 --> 00:25:22.930
look, we just need more
time because COVID

00:25:22.930 --> 00:25:25.610
is such a traumatic event

00:25:25.610 --> 00:25:27.710
and then Uri was such a dramatic event.

00:25:27.710 --> 00:25:31.860
So it's been a compounding
effect and the bills are so high

00:25:31.860 --> 00:25:33.500
that they just need more time

00:25:33.500 --> 00:25:36.253
to work through a flexible
assistance program.

00:25:37.300 --> 00:25:39.110
I wanna highlight for the public

00:25:39.110 --> 00:25:44.110
that once the moratorium
is removed as per our rules,

00:25:44.670 --> 00:25:47.583
and staff can correct me
and also the stakeholders,

00:25:49.770 --> 00:25:53.670
as per our rules, a five-month
bill assistance requirement

00:25:53.670 --> 00:25:56.250
goes into effect where retailers provide

00:25:56.250 --> 00:25:58.940
flexible payment
programs for five months

00:25:58.940 --> 00:26:02.090
and timing gets to be a big deal now

00:26:02.090 --> 00:26:06.410
because if the moratorium
is lifted, say on June 11th,

00:26:06.410 --> 00:26:08.363
that puts us into November.

00:26:10.870 --> 00:26:13.890
If folks can't handle
the payment obligations

00:26:13.890 --> 00:26:16.540
and then they run out
of that flexible assistance

00:26:17.430 --> 00:26:20.690
capability, then that puts them
disconnected in November,

00:26:20.690 --> 00:26:23.170
which I would highlight
is a fairly mild month

00:26:24.180 --> 00:26:26.420
typically in the state of Texas

00:26:26.420 --> 00:26:30.040
but stakeholders have asked
for a nine-month extension.

00:26:30.040 --> 00:26:32.660
One that would require a rule change

00:26:32.660 --> 00:26:36.270
and then two, that puts
people on disconnection

00:26:36.270 --> 00:26:39.153
in the month of February and after Uri,

00:26:40.780 --> 00:26:43.900
I have great concerns
about disconnecting people

00:26:43.900 --> 00:26:45.623
during the teeth of the winter.

00:26:47.110 --> 00:26:48.960
I don't care what the forecasters say.

00:26:48.960 --> 00:26:51.640
So I just wanna highlight,

00:26:51.640 --> 00:26:53.880
that's through
stakeholder conversations,

00:26:53.880 --> 00:26:55.580
that's what's been coming forward.

00:26:59.280 --> 00:27:01.290
Cathy can come up,
too and talk through that.

00:27:01.290 --> 00:27:06.150
<v ->Before we do that, can we
recognize Lori from OPUC</v>

00:27:06.150 --> 00:27:10.300
and we'd love to hear
your thoughts and resources

00:27:10.300 --> 00:27:12.200
that are available through your office

00:27:13.180 --> 00:27:15.230
and certainly, we
wanna make sure that...

00:27:18.040 --> 00:27:19.510
Thank you for being here

00:27:19.510 --> 00:27:21.520
and certainly wanted
to invite you here today,

00:27:21.520 --> 00:27:25.170
especially you and
Bobby could both appear

00:27:25.170 --> 00:27:27.250
before the public to make
sure everyone can see

00:27:27.250 --> 00:27:32.250
both of your offices and
the resources available

00:27:33.200 --> 00:27:35.053
from both of those arenas.

00:27:38.253 --> 00:27:39.420
<v ->Absolutely, thank
you, Chairman Lake</v>

00:27:39.420 --> 00:27:40.840
and Commissioner McAdams.

00:27:40.840 --> 00:27:43.330
I really appreciate the
opportunity to be here today

00:27:43.330 --> 00:27:45.390
and participate in the
open meeting workshop.

00:27:45.390 --> 00:27:47.070
For the record, my name is Lori Cobos,

00:27:47.070 --> 00:27:50.090
public counsel for the
Office of Public Utility Council

00:27:50.090 --> 00:27:54.420
and I also appreciate the
thoughtful consideration

00:27:54.420 --> 00:27:57.910
that you both are putting
into this important decision

00:27:57.910 --> 00:28:00.430
for residential and small
commercial consumers.

00:28:00.430 --> 00:28:02.130
As you can imagine, since the storm,

00:28:02.130 --> 00:28:04.920
well really, since COVID
and then the storm,

00:28:04.920 --> 00:28:07.520
we've been receiving a
lot of calls from residential

00:28:07.520 --> 00:28:09.650
and small commercial consumers.

00:28:09.650 --> 00:28:12.733
With respect to our
latest crisis, the storm,

00:28:13.650 --> 00:28:16.540
we have received a lot
of, I guess I should say

00:28:16.540 --> 00:28:19.430
from the storm through
maybe the end of March,

00:28:19.430 --> 00:28:22.030
we received a lot of calls
from residential consumers

00:28:22.030 --> 00:28:24.380
that, obviously were without power

00:28:24.380 --> 00:28:27.280
but more so related to
the issues at hand now

00:28:27.280 --> 00:28:28.933
with high electricity bills.

00:28:29.940 --> 00:28:32.960
Most of them were on
wholesale price index plans

00:28:32.960 --> 00:28:37.500
or fixed rate plans that
expired unknowingly

00:28:37.500 --> 00:28:40.974
and they were switched over
to a higher variable rate plan

00:28:40.974 --> 00:28:45.310
and so what we focused on
for those residential consumers

00:28:45.310 --> 00:28:48.840
at the time was
providing them with advice

00:28:48.840 --> 00:28:50.460
with respect to the available options.

00:28:50.460 --> 00:28:53.250
So if you had a billing dispute,

00:28:53.250 --> 00:28:57.170
your bill was too high in your
opinion, to contact your rep

00:28:58.380 --> 00:29:00.810
and try to resolve the issue.

00:29:00.810 --> 00:29:03.840
If they couldn't then
and the disputed amount

00:29:03.840 --> 00:29:08.620
was still unacceptable to the customer,

00:29:08.620 --> 00:29:10.730
then they would file a
complaint at the Commission.

00:29:10.730 --> 00:29:15.040
Now, the Commission
thankfully continued the DPP,

00:29:15.040 --> 00:29:18.360
the deferred payment plan
per the PUC COVID orders

00:29:18.360 --> 00:29:21.770
and so we encouraged
residential consumers

00:29:21.770 --> 00:29:24.660
that were unable to pay their bill

00:29:24.660 --> 00:29:26.730
to enter into a deferred payment plan,

00:29:26.730 --> 00:29:29.010
which is currently still available today

00:29:29.010 --> 00:29:31.980
and also to ask the reps

00:29:31.980 --> 00:29:34.960
for bill payment assistance programs

00:29:34.960 --> 00:29:37.750
that they may have
available, the specific provider

00:29:37.750 --> 00:29:41.570
and have been referring
customers to TDHCA's

00:29:41.570 --> 00:29:43.270
financial assistance programs.

00:29:43.270 --> 00:29:46.780
First, the LIHEAP program,
we had been promoting that

00:29:46.780 --> 00:29:50.000
on our COVID page and then
the Texas rent relief program,

00:29:50.000 --> 00:29:52.780
when that became available
had been promoting that

00:29:52.780 --> 00:29:57.780
on our social media and agency
websites and press releases.

00:29:58.390 --> 00:30:00.290
The other resource that we've promoted

00:30:00.290 --> 00:30:03.760
to residential consumers
that need help with assistance

00:30:03.760 --> 00:30:06.717
and paying is referring them to 211.

00:30:07.680 --> 00:30:11.500
211 will provide local community

00:30:11.500 --> 00:30:15.160
and nonprofit organizations
that will provide

00:30:15.160 --> 00:30:17.613
payment assistance
for them in their area.

00:30:19.020 --> 00:30:21.130
That was our focus on residential.

00:30:21.130 --> 00:30:23.610
I will say that from the end of March

00:30:23.610 --> 00:30:24.850
and over the last two months,

00:30:24.850 --> 00:30:27.280
we have heard from a
fairly significant amount

00:30:27.280 --> 00:30:29.490
of small business consumers

00:30:29.490 --> 00:30:34.220
and typically those are
about 5% or less of the calls

00:30:34.220 --> 00:30:35.440
we get per year.

00:30:35.440 --> 00:30:36.680
Right now in the last two months,

00:30:36.680 --> 00:30:39.920
there were 60% of
the calls we've received

00:30:39.920 --> 00:30:43.513
and so a lot of them, and
I'd be remiss not to say

00:30:43.513 --> 00:30:47.350
that the calls that we've
gotten are small businesses

00:30:47.350 --> 00:30:50.280
or other small commercial
consumers like churches

00:30:50.280 --> 00:30:53.180
or even housing authorities
that have received bills

00:30:53.180 --> 00:30:55.450
that are extremely high

00:30:56.570 --> 00:30:58.180
because their retail electric provider

00:30:58.180 --> 00:31:00.650
passed through ancillary
service charges to them.

00:31:00.650 --> 00:31:04.270
Sometimes in some cases,
they're eight to 20 times higher

00:31:04.270 --> 00:31:07.693
and they're significant amounts.

00:31:09.610 --> 00:31:12.120
I would say or I would add that

00:31:12.120 --> 00:31:14.470
what we've been telling these consumers,

00:31:14.470 --> 00:31:17.070
the small business
consumers that contact us

00:31:17.070 --> 00:31:20.680
is to contact their rep, try
to see if they can resolve

00:31:20.680 --> 00:31:22.330
the issue with them.

00:31:22.330 --> 00:31:27.330
If not, file a complaint and
see what can be worked out

00:31:29.780 --> 00:31:31.150
with respect to those charges

00:31:31.150 --> 00:31:32.950
because those are significant charges.

00:31:32.950 --> 00:31:37.170
That has been our tip for
those customers at this time

00:31:37.170 --> 00:31:39.793
while we await for
solutions to help them out.

00:31:41.760 --> 00:31:45.770
The other thing that I
like to highlight on that is

00:31:45.770 --> 00:31:49.200
if the Commission does
proceed to lift the moratorium

00:31:49.200 --> 00:31:50.810
for residential and small commercial,

00:31:50.810 --> 00:31:53.730
I would encourage the
Commission to strongly encourage

00:31:53.730 --> 00:31:55.700
the reps to work with the
small business consumers

00:31:55.700 --> 00:32:00.700
as well, as many of them
have gotten really high bills

00:32:02.350 --> 00:32:05.370
and even entering into
a deferred payment plan

00:32:05.370 --> 00:32:08.090
could be a significant amount of money.

00:32:08.090 --> 00:32:12.183
<v ->A huge benefit and I
think it's important to note,</v>

00:32:14.348 --> 00:32:16.560
we've had pending
legislation that has passed

00:32:16.560 --> 00:32:20.030
both chambers that would play a big role

00:32:20.030 --> 00:32:24.060
in the financial situation of those reps

00:32:24.060 --> 00:32:28.150
and of course, it's pending
the Governor's consideration

00:32:28.150 --> 00:32:32.210
but important to note that
for those small businesses

00:32:32.210 --> 00:32:33.560
is they're engaging with those reps

00:32:33.560 --> 00:32:38.112
that that is still legislation
under consideration.

00:32:38.112 --> 00:32:40.050
<v Lori>Absolutely.</v>

00:32:40.050 --> 00:32:42.050
<v ->Lori, just to
clarify for the public</v>

00:32:42.050 --> 00:32:44.860
so everybody out there listening knows,

00:32:44.860 --> 00:32:46.740
and Connie jump in here too.

00:32:46.740 --> 00:32:48.020
It's a question for both of you.

00:32:48.020 --> 00:32:53.020
Our rules contemplate
requiring flexible payment

00:32:53.180 --> 00:32:56.860
assistance programs
for five billing cycles

00:32:56.860 --> 00:33:00.160
for residential consumers
and it also applies

00:33:00.160 --> 00:33:03.330
that that requirement
overlay is to small commercial

00:33:03.330 --> 00:33:04.550
as well.
<v ->Correct.</v>

00:33:04.550 --> 00:33:08.840
<v ->So they apply for the flexible
payment assistance program</v>

00:33:08.840 --> 00:33:13.210
but again, until the moratoriums
are lifted, they cannot...

00:33:13.210 --> 00:33:16.330
Well, it's just a compounding thing.

00:33:16.330 --> 00:33:18.460
They're not paying anything
right now, theoretically

00:33:18.460 --> 00:33:20.010
that may be the situation.

00:33:20.010 --> 00:33:23.410
So those bills just keep
adding up and eventually,

00:33:23.410 --> 00:33:24.560
they're gonna come due.

00:33:24.560 --> 00:33:26.770
It's a question of making
that number manageable

00:33:26.770 --> 00:33:29.910
for their purposes and that plays into

00:33:29.910 --> 00:33:32.170
the flexible assistance program.

00:33:32.170 --> 00:33:35.700
20% of a small number
is a lot smaller of a number

00:33:35.700 --> 00:33:37.860
than 20% of a big number

00:33:37.860 --> 00:33:41.406
and that's what we wanna try
to keep from happening here.

00:33:41.406 --> 00:33:43.017
<v Lori>Right, just to
be mindful of that</v>

00:33:43.017 --> 00:33:46.430
because some of these
customers have had $100,000 bills

00:33:46.430 --> 00:33:48.920
and I'm glad there's
that flexibility there

00:33:48.920 --> 00:33:50.270
and I think that is helpful

00:33:52.000 --> 00:33:53.680
but I wanted to highlight that issue.

00:33:53.680 --> 00:33:57.200
<v ->Absolutely, $100,000
is an extraordinary,</v>

00:33:57.200 --> 00:33:59.500
unanticipated liability
on a small business.

00:33:59.500 --> 00:34:01.980
<v ->Right, absolutely.</v>
<v ->It's terrible.</v>

00:34:01.980 --> 00:34:04.920
Also second thing, and I know

00:34:04.920 --> 00:34:06.480
that we'll all be watching this,

00:34:06.480 --> 00:34:08.620
that second tranche of
money that's coming in

00:34:08.620 --> 00:34:10.080
from the federal government.

00:34:10.080 --> 00:34:14.910
Again, it is hoped, for
the purposes of TDHCA

00:34:14.910 --> 00:34:17.870
and all recipient
agencies at the state level

00:34:17.870 --> 00:34:22.130
that we can start crafting
those for at-need populations,

00:34:22.130 --> 00:34:24.300
again, small commercial
being one of those

00:34:25.140 --> 00:34:29.160
because again, the federal
PPP program expired

00:34:29.160 --> 00:34:31.980
at the end of last month, May 31st

00:34:31.980 --> 00:34:35.380
so whatever type of supplemental program

00:34:35.380 --> 00:34:40.380
is created after that, there is hope.

00:34:40.920 --> 00:34:42.400
That's all I would say.

00:34:42.400 --> 00:34:44.763
<v ->Absolutely, any other thoughts?</v>

00:34:45.980 --> 00:34:50.590
<v ->No, I appreciate the bill
payment assistance options</v>

00:34:50.590 --> 00:34:54.160
that the reps submitted
in the letters in 51812.

00:34:54.160 --> 00:34:56.490
I think it's very helpful to
understand what programs

00:34:56.490 --> 00:34:59.750
each of the providers have available

00:34:59.750 --> 00:35:02.710
for the residential
consumers and certainly,

00:35:02.710 --> 00:35:05.560
we'll continue to promote
TDCHA's financial assistance

00:35:05.560 --> 00:35:06.840
and 211.

00:35:06.840 --> 00:35:08.750
We're here to help, I'm here to help

00:35:08.750 --> 00:35:11.000
so if there's anything
that I can do to help

00:35:11.000 --> 00:35:14.840
as we transition with this
decision, please let me know.

00:35:14.840 --> 00:35:15.830
<v ->Thank you so
much for being here</v>

00:35:15.830 --> 00:35:18.160
and thank you for helping
share the resources

00:35:18.160 --> 00:35:19.940
the state has available.

00:35:19.940 --> 00:35:20.773
Thanks, Lori.

00:35:21.660 --> 00:35:25.163
If Cathy would like to
address the Commission,

00:35:27.000 --> 00:35:28.350
I'm happy to hear from her.

00:35:36.500 --> 00:35:39.523
<v ->Thank you, Catherine Webb
King, I'm representing the team.</v>

00:35:40.640 --> 00:35:42.260
I appreciate the opportunity to be here

00:35:42.260 --> 00:35:43.810
as a resource to you all today

00:35:43.810 --> 00:35:45.810
and thank you for your very careful

00:35:45.810 --> 00:35:48.600
and deliberate
consideration of this issue.

00:35:48.600 --> 00:35:51.930
It is a very critical
issue for all customers,

00:35:51.930 --> 00:35:54.870
including those that are
having difficulty paying

00:35:54.870 --> 00:35:57.240
at the current time as
well as just making sure

00:35:57.240 --> 00:35:59.920
that the market stays
healthy and competitive

00:35:59.920 --> 00:36:03.610
so that the best options can
be available to all customers

00:36:03.610 --> 00:36:06.470
and we appreciate
very much the testimony

00:36:06.470 --> 00:36:09.623
you've brought here today with
Mr. Wilkinson and Ms. Cobos.

00:36:10.560 --> 00:36:12.810
Both of those
resources are very critical

00:36:12.810 --> 00:36:16.870
in this overall analysis.

00:36:16.870 --> 00:36:19.390
As they all said, I
think the very first step

00:36:19.390 --> 00:36:20.900
for the customers, just to reach out

00:36:20.900 --> 00:36:24.610
to their retail electric
provider and that provider

00:36:24.610 --> 00:36:28.410
is equipped to communicate
with that customer,

00:36:28.410 --> 00:36:31.890
to design exactly what the
best option is for that customer,

00:36:31.890 --> 00:36:35.620
direct them to resources, the
ones we've heard about today

00:36:35.620 --> 00:36:37.630
and others that may be available

00:36:37.630 --> 00:36:40.870
and also customize a payment plan

00:36:40.870 --> 00:36:42.610
or a deferred payment
plan for that customer

00:36:42.610 --> 00:36:44.050
depending on their individual needs.

00:36:44.050 --> 00:36:46.430
There's no one size fits all that's best

00:36:46.430 --> 00:36:49.340
and that rep has a
relationship with that customer

00:36:49.340 --> 00:36:52.690
and their interest is in
keeping that customer on

00:36:52.690 --> 00:36:54.820
and keeping that
customer with power flowing

00:36:54.820 --> 00:36:58.883
and serving that customer
for months and years to come.

00:36:59.750 --> 00:37:03.810
There's every incentive
to work this in the right way

00:37:03.810 --> 00:37:06.230
and those are the
sincere efforts, I think

00:37:06.230 --> 00:37:08.000
that you will find throughout

00:37:08.000 --> 00:37:11.690
and the resources fortunately
are coming available

00:37:11.690 --> 00:37:15.020
for some of these entities
through the federal assistance,

00:37:15.020 --> 00:37:16.720
which definitely helps.

00:37:16.720 --> 00:37:18.910
The retail electric
providers worked well

00:37:18.910 --> 00:37:22.750
with this Commission and
everyone in the industry.

00:37:22.750 --> 00:37:25.290
We put together that
COVID ERP plan to try

00:37:25.290 --> 00:37:28.330
to help last year to
get transitioned through

00:37:28.330 --> 00:37:33.310
and that was one stage of it and
now we have some new issues

00:37:33.310 --> 00:37:36.000
and we're facing those
and appreciate all the efforts

00:37:36.000 --> 00:37:39.237
of everyone combined
to try to get this done.

00:37:39.237 --> 00:37:42.453
The retail electric providers,
I think as you probably know,

00:37:44.220 --> 00:37:48.550
for every dollar they
bill, that dollar includes

00:37:48.550 --> 00:37:53.070
almost at least probably 90
cents of someone else's costs.

00:37:53.070 --> 00:37:55.730
The transmission distribution utilities,

00:37:55.730 --> 00:38:00.150
the generation providers,
ERCOT system admin fee,

00:38:00.150 --> 00:38:02.980
PUC fees, all those fees are all bundled

00:38:02.980 --> 00:38:06.270
into that one invoice and it's important

00:38:06.270 --> 00:38:09.412
for the overall cashflow
liquidity in the market

00:38:09.412 --> 00:38:12.520
that that process continues

00:38:12.520 --> 00:38:15.400
and moves forward in a healthy way.

00:38:15.400 --> 00:38:17.030
That's the effort we're all making

00:38:17.030 --> 00:38:19.930
and we really appreciate
everybody's consideration here

00:38:19.930 --> 00:38:22.203
and I'm happy to answer any questions.

00:38:22.203 --> 00:38:23.075
<v Lake>Thank you
for laying that out</v>

00:38:23.075 --> 00:38:24.090
and thank you for being here.

00:38:24.090 --> 00:38:25.833
<v ->Absolutely.</v>
<v ->Any questions, comments?</v>

00:38:26.855 --> 00:38:29.260
<v ->Just 'cause I feel compelled
to try to help educate</v>

00:38:29.260 --> 00:38:32.020
the broader public,
not just the legislature

00:38:32.020 --> 00:38:34.920
but the public in general
how this works, Cathy

00:38:34.920 --> 00:38:37.400
and if you could describe
the payments that you make,

00:38:37.400 --> 00:38:39.757
that you pass on,
they go to transmission

00:38:39.757 --> 00:38:43.600
and distribution service
providers that then invest that

00:38:43.600 --> 00:38:46.530
into the infrastructure that
allows us to meet summer needs

00:38:46.530 --> 00:38:48.400
and peak needs, is that accurate?

00:38:48.400 --> 00:38:49.480
<v Cathy>That's exactly right.</v>

00:38:49.480 --> 00:38:53.050
<v ->Okay, so with the
moratorium in place,</v>

00:38:53.050 --> 00:38:56.840
we now have a liquidity
problem flowing through

00:38:56.840 --> 00:39:00.030
to those entities that maintain
the critical infrastructure

00:39:00.030 --> 00:39:02.680
of this state going into
the heart of the summer.

00:39:02.680 --> 00:39:04.680
<v ->Is that accurate?</v>
<v ->That is accurate.</v>

00:39:06.000 --> 00:39:08.270
It is transmission and
distribution companies,

00:39:08.270 --> 00:39:09.950
as we talked about, it's also generation

00:39:09.950 --> 00:39:14.250
to make sure all the generation
has the appropriate funds

00:39:14.250 --> 00:39:16.230
available to do the maintenance

00:39:16.230 --> 00:39:20.800
and get their equipment
ready for what may shape up

00:39:20.800 --> 00:39:23.100
to be a long, hot
summer by the end of it.

00:39:23.100 --> 00:39:25.653
<v ->Okay.</v>
<v ->Yeah, good point.</v>

00:39:26.832 --> 00:39:27.670
All right, thank you, ma'am.

00:39:27.670 --> 00:39:28.670
<v Cathy>Thank you.</v>

00:39:32.960 --> 00:39:36.640
<v ->Also on this item, I think
we have an ERCOT update.</v>

00:39:36.640 --> 00:39:38.430
If you're ready to move on to that one--

00:39:38.430 --> 00:39:39.263
<v ->I'm good to go.</v>

00:39:39.263 --> 00:39:43.500
<v ->All right, at this point,
we'll call up Kenan</v>

00:39:43.500 --> 00:39:46.363
and let him lay out the ERCOT update.

00:39:52.700 --> 00:39:54.470
<v ->Oops.
(chuckles)</v>

00:39:54.470 --> 00:39:57.440
Good morning, Chairman
Lake, Commissioner McAdams.

00:39:57.440 --> 00:39:59.993
For the record, Kenan
Ögelman with ERCOT.

00:40:01.200 --> 00:40:06.200
I'm here to talk about two
NPRRs that we would like to file

00:40:08.060 --> 00:40:11.333
and co-sponsor with the
independent market monitor.

00:40:12.180 --> 00:40:17.180
These two NPRRs address the
urgent market design changes

00:40:17.450 --> 00:40:20.063
that are in the state
of the market report.

00:40:21.380 --> 00:40:25.740
The first change to the market design

00:40:25.740 --> 00:40:30.057
would cap ancillary
service prices at $9,000.

00:40:31.760 --> 00:40:35.940
Lori mentioned the
financial impact of prices

00:40:35.940 --> 00:40:40.940
going above $9,000
and we would do this by,

00:40:41.620 --> 00:40:44.260
we have what are called
penalty factors that try

00:40:44.260 --> 00:40:46.550
and cover opportunity costs.

00:40:46.550 --> 00:40:49.833
Those would be capped at
the system wide offer cap.

00:40:50.694 --> 00:40:53.150
If the system wide offer cap was $2,000,

00:40:53.150 --> 00:40:57.170
it would not let prices go above $2,000.

00:40:57.170 --> 00:41:00.160
If the system wide
offer cap was at $9,000,

00:41:00.160 --> 00:41:04.053
it would not let the
prices go above $9,000.

00:41:05.400 --> 00:41:09.640
This change we can
implement relatively quickly

00:41:09.640 --> 00:41:14.113
and at a low cost of
$5,000 is our estimate.

00:41:15.180 --> 00:41:18.270
The only caveat I would share with you

00:41:18.270 --> 00:41:22.170
is that when we cap prices,

00:41:22.170 --> 00:41:24.630
we would actually in
the day ahead, potentially

00:41:24.630 --> 00:41:28.610
not procure all the
ancillary services in our plan.

00:41:28.610 --> 00:41:31.500
However, operationally
that's not a concern

00:41:31.500 --> 00:41:35.400
because we have other
means to get those reserves

00:41:35.400 --> 00:41:37.570
between the day ahead in real time

00:41:37.570 --> 00:41:41.180
but I just wanted to make
sure everybody was aware

00:41:41.180 --> 00:41:43.143
of that issue.

00:41:44.170 --> 00:41:46.770
The second change that we would--

00:41:46.770 --> 00:41:49.275
<v Lake>Hold on, Kenan, I wanna
make sure we have covered</v>

00:41:49.275 --> 00:41:51.403
any questions or
comments on that first one.

00:41:52.600 --> 00:41:54.670
On the ancillary services cap,

00:41:54.670 --> 00:41:59.670
could you lay out what
the existing protocol is

00:41:59.740 --> 00:42:02.250
versus changing to a capped version?

00:42:02.250 --> 00:42:07.250
<v ->Certainly, the existing design
allows both a risk premium</v>

00:42:09.500 --> 00:42:13.570
and an opportunity cost
to be added onto the price

00:42:13.570 --> 00:42:17.490
for ancillary services
and that allows it

00:42:17.490 --> 00:42:19.890
to go above $9,000

00:42:19.890 --> 00:42:24.320
and in fact during Uri, we
saw prices as high as $26,000,

00:42:26.740 --> 00:42:31.510
regular pricing around
$18,000 to $16,000

00:42:31.510 --> 00:42:35.760
and that, of course created
large ancillary service costs

00:42:35.760 --> 00:42:38.240
for the retailers and ultimately load.

00:42:38.240 --> 00:42:40.330
<v ->So for example, the
small businesses that Lori</v>

00:42:40.330 --> 00:42:42.330
was talking about may
have focused on limiting

00:42:42.330 --> 00:42:44.900
their liability on their energy costs

00:42:44.900 --> 00:42:48.540
without necessarily
thinking about the potential

00:42:48.540 --> 00:42:53.270
for the ancillary services
in such a unique event

00:42:53.270 --> 00:42:55.420
to be part of their
bill and to be that high

00:42:55.420 --> 00:42:58.930
and safe to say, that's a big part

00:42:58.930 --> 00:43:02.470
of how some of those businesses
or just general consumers

00:43:02.470 --> 00:43:06.520
got caught with the $100,00 bill?

00:43:06.520 --> 00:43:08.630
<v ->That is entirely accurate.</v>

00:43:08.630 --> 00:43:11.930
Another thing I would share
with you is ancillary services

00:43:11.930 --> 00:43:15.740
are more challenging
to hedge than energy

00:43:15.740 --> 00:43:19.620
because your allocation
is a load ratio share

00:43:19.620 --> 00:43:22.860
and so you have to guess
what everybody else's share is

00:43:22.860 --> 00:43:25.340
to know what your share it.

00:43:25.340 --> 00:43:28.190
It's also difficult to hedge as well.

00:43:28.190 --> 00:43:33.190
<v ->And even more difficult
when load is changing real time</v>

00:43:34.580 --> 00:43:38.450
so your share of a
shrinking or increasing pie

00:43:38.450 --> 00:43:42.890
makes it even more difficult and thus,

00:43:42.890 --> 00:43:46.220
isn't more expensive?
<v ->Precisely.</v>

00:43:46.220 --> 00:43:47.200
<v ->Okay, thank you.</v>

00:43:47.200 --> 00:43:48.950
Any questions or comments on this one?

00:43:48.950 --> 00:43:51.170
<v ->Yeah, thank you, sir.</v>

00:43:51.170 --> 00:43:56.170
Kenan, Senate Bill three
hasn't been signed yet

00:43:56.480 --> 00:44:01.480
but it's passed both chambers,
it's on the Governor's desk.

00:44:01.790 --> 00:44:03.830
Does this conform
with what they required

00:44:03.830 --> 00:44:04.663
in Senate Bill three?

00:44:04.663 --> 00:44:06.283
They imposed a cap.

00:44:07.330 --> 00:44:09.240
They addressed ancillary
services, didn't they?

00:44:09.240 --> 00:44:12.570
They basically said we
cannot go above high cap

00:44:12.570 --> 00:44:14.040
for ancillary services.

00:44:14.040 --> 00:44:17.690
So your proposed
change is absolutely in line

00:44:17.690 --> 00:44:21.270
with the statutory change
that's now being contemplated,

00:44:21.270 --> 00:44:22.313
is that accurate?

00:44:23.440 --> 00:44:25.230
<v ->That's my understanding.</v>

00:44:25.230 --> 00:44:29.940
Ultimately, there is some
rulemakings that might follow

00:44:29.940 --> 00:44:31.890
that law and--

00:44:31.890 --> 00:44:34.640
<v Will>But you would not
need to change your protocol</v>

00:44:34.640 --> 00:44:36.760
once this moves forward,

00:44:36.760 --> 00:44:41.350
should we pass our
conforming rule change?

00:44:41.350 --> 00:44:42.910
<v ->That would be my expectation.</v>

00:44:42.910 --> 00:44:45.450
<v Will>Okay, got it.</v>

00:44:45.450 --> 00:44:48.190
<v ->The other benefit is
that I think we can get this</v>

00:44:48.190 --> 00:44:53.190
in at least around July,
so it could be in effect

00:44:53.440 --> 00:44:56.093
through the hotter time of the summer.

00:44:57.156 --> 00:45:01.750
<v ->So this change could
potentially be in place</v>

00:45:01.750 --> 00:45:05.670
when we get into the time of
year for high potential prices

00:45:05.670 --> 00:45:08.440
and so that protection
for those unhedged

00:45:08.440 --> 00:45:10.770
or very difficult to
hedge ancillary services

00:45:10.770 --> 00:45:14.157
and the potential for a pass
through to customers in July

00:45:14.157 --> 00:45:16.610
and August would be limited?

00:45:16.610 --> 00:45:17.760
<v Kenan>Correct.</v>

00:45:17.760 --> 00:45:20.370
<v ->We could potentially
avoid the problem</v>

00:45:20.370 --> 00:45:22.430
that we ran into in February.

00:45:22.430 --> 00:45:24.827
<v ->Yes.</v>
<v ->Excellent, thank you.</v>

00:45:26.230 --> 00:45:27.270
Ready for the next one?
<v ->Yep.</v>

00:45:27.270 --> 00:45:28.103
<v ->All right.</v>
<v ->Okay.</v>

00:45:28.103 --> 00:45:32.773
The next change would
ensure that the price

00:45:33.960 --> 00:45:38.217
was at the system wide
offer cap when we are in EEA3

00:45:39.310 --> 00:45:41.013
and shedding firm load.

00:45:41.920 --> 00:45:46.920
So the way we accomplish
that is the system wide price

00:45:47.780 --> 00:45:52.780
is a combination of the
average offer plus adders,

00:45:53.220 --> 00:45:56.360
the adders would be structured to ensure

00:45:56.360 --> 00:45:59.103
that we got to the cap.

00:46:00.500 --> 00:46:05.500
This change or notable
protocol revision request,

00:46:06.670 --> 00:46:11.670
we could implement manually
almost immediately as well

00:46:12.290 --> 00:46:15.340
once we got a board
and Commission approval

00:46:17.330 --> 00:46:20.120
but that would be a manual process.

00:46:20.120 --> 00:46:25.100
We would automate that
with a project that we estimate

00:46:25.100 --> 00:46:30.100
to take two to three months
and around $25,000 to $35,000

00:46:30.970 --> 00:46:33.890
but I think the key thing is
that we do have a process

00:46:33.890 --> 00:46:37.070
in place to implement very quickly

00:46:37.070 --> 00:46:39.543
but there would be a
project that followed that.

00:46:42.790 --> 00:46:47.570
<v ->This would say, for
example, I guess in the most</v>

00:46:47.570 --> 00:46:51.840
simplistic term,
streamline the pricing signal

00:46:51.840 --> 00:46:55.880
when we're in the most
stressed point of grid conditions

00:46:55.880 --> 00:46:59.810
where we have to shed
load, it automatically goes

00:46:59.810 --> 00:47:04.810
to the system wide cap
and then once, importantly

00:47:05.130 --> 00:47:09.120
you exit load shed, what happens?

00:47:09.120 --> 00:47:11.960
<v ->It would return to
the normal operation.</v>

00:47:11.960 --> 00:47:16.740
So if there is no load shed
being instructed by ERCOT

00:47:16.740 --> 00:47:20.140
and EEA and we were out of EEA3

00:47:20.140 --> 00:47:24.120
and the main thing is no load
shed instructed by ERCOT,

00:47:24.120 --> 00:47:27.140
then there would be no
adder for that purpose.

00:47:27.140 --> 00:47:30.880
Those adders work with other factors

00:47:30.880 --> 00:47:35.880
but this feature would be shut off.

00:47:36.620 --> 00:47:39.570
<v ->It would automatically
revert to normal market</v>

00:47:39.570 --> 00:47:42.400
pricing conditions and
normal clearing scenarios.

00:47:42.400 --> 00:47:46.380
<v ->Correct.</v>
<v ->An important feature.</v>

00:47:46.380 --> 00:47:48.890
<v ->Yeah, it actually
accounts for load shed,</v>

00:47:48.890 --> 00:47:51.100
the important parameter.

00:47:51.100 --> 00:47:55.560
<v ->Yeah, so I think both getting
to the proper pricing signal</v>

00:47:55.560 --> 00:47:58.360
on this, I know in
extreme grid conditions

00:47:58.360 --> 00:48:00.843
before we've had some
problems with the RDC

00:48:01.748 --> 00:48:04.740
and the clearing mechanisms not getting

00:48:04.740 --> 00:48:08.560
to the proper market pricing
signal for those conditions

00:48:08.560 --> 00:48:10.620
and on the front end,
this would address that.

00:48:10.620 --> 00:48:12.190
Is that fair?
<v ->Yes.</v>

00:48:12.190 --> 00:48:15.610
<v ->And then on the back end
of the load shed scenario,</v>

00:48:15.610 --> 00:48:18.480
it provides an automatic
mechanism to revert back

00:48:18.480 --> 00:48:22.109
to normal clearing
and market operations.

00:48:22.109 --> 00:48:24.293
<v ->Yes.</v>
<v ->Okay, gotcha.</v>

00:48:25.790 --> 00:48:30.790
I think that would
address a clear challenge

00:48:31.280 --> 00:48:32.340
we've had in the past

00:48:33.550 --> 00:48:36.520
and I would also encourage you all to,

00:48:36.520 --> 00:48:39.660
as you make these changes,
think through and go through

00:48:41.926 --> 00:48:45.653
how they would look
in the 1% tail event.

00:48:49.656 --> 00:48:53.220
I think these are good changes
and making big improvements

00:48:53.220 --> 00:48:55.260
in a very short timeframe

00:48:55.260 --> 00:48:58.560
but I certainly wanna make
sure that we stress test them

00:48:58.560 --> 00:49:00.630
and evaluate how they would perform

00:49:00.630 --> 00:49:03.830
under different extreme conditions

00:49:03.830 --> 00:49:07.020
so that if we do get into
those extreme grid conditions,

00:49:07.020 --> 00:49:09.513
it's not the first time we
see how they function.

00:49:12.490 --> 00:49:17.490
<v ->Each NPRR that we
submit, once it's approved,</v>

00:49:18.160 --> 00:49:20.310
we actually do test them

00:49:20.310 --> 00:49:24.220
and we plan to introduce
testing scenarios

00:49:24.220 --> 00:49:26.140
that are the tail events.

00:49:26.140 --> 00:49:29.640
<v ->Outstanding, that's a big
part of making sure we're ready</v>

00:49:29.640 --> 00:49:32.760
for scenarios that we
hope don't come to pass

00:49:32.760 --> 00:49:35.360
but we need to be prepared
to address it if they do.

00:49:36.240 --> 00:49:37.243
<v ->Yes.</v>
<v ->Agreed.</v>

00:49:39.720 --> 00:49:42.530
<v ->The one thing I forgot
to add is we plan to file</v>

00:49:42.530 --> 00:49:45.780
both of these notable
protocol revision requests

00:49:45.780 --> 00:49:47.910
with urgent status to try and move them

00:49:47.910 --> 00:49:51.283
through the process
as quickly as practical.

00:49:52.901 --> 00:49:54.460
<v Lake>I very much
appreciate that urgency.</v>

00:49:54.460 --> 00:49:58.400
I know all Texans
appreciate that urgency

00:49:58.400 --> 00:50:00.460
as we come into the summer.

00:50:00.460 --> 00:50:04.090
<v ->I think just listening
to you, Mr. Chairman,</v>

00:50:04.090 --> 00:50:05.393
these are important to me.

00:50:06.520 --> 00:50:10.620
From a policy standpoint, I
think it should be expedited.

00:50:10.620 --> 00:50:13.600
I think that any type of,

00:50:13.600 --> 00:50:14.770
and we're gonna talk about this later

00:50:14.770 --> 00:50:18.053
but the handover of ERCOT governance,

00:50:19.500 --> 00:50:22.330
from my perspective
as just an individual

00:50:22.330 --> 00:50:24.600
on the Commission here,

00:50:24.600 --> 00:50:29.600
I don't think the transition
mechanisms should stand

00:50:29.800 --> 00:50:32.630
in the way of ultimate implementation

00:50:32.630 --> 00:50:33.790
for the purposes of this summer.

00:50:33.790 --> 00:50:36.310
I think it's necessary
to have this in place

00:50:36.310 --> 00:50:39.550
before any type of
scarcity event could trigger

00:50:39.550 --> 00:50:41.733
unintended consequences
as we saw before.

00:50:42.787 --> 00:50:44.350
That's just my thoughts.
<v ->Absolutely.</v>

00:50:44.350 --> 00:50:48.500
Reliability, safety is
paramount and we'll--

00:50:48.500 --> 00:50:49.880
<v ->Governments' hiccups--</v>

00:50:49.880 --> 00:50:51.240
<v ->We'll figure out the
rest on the way there.</v>

00:50:51.240 --> 00:50:54.613
<v ->Cool.</v>
<v ->All right, thank you, Kenan.</v>

00:50:54.613 --> 00:50:55.613
<v ->Thank you.</v>

00:51:00.060 --> 00:51:02.167
<v ->I think that covers
everything for item two</v>

00:51:02.167 --> 00:51:03.126
unless you have anything else.

00:51:03.126 --> 00:51:03.959
<v ->No, sir.</v>

00:51:06.151 --> 00:51:09.320
<v ->I think we can probably
take up item three through 13</v>

00:51:09.320 --> 00:51:14.320
in one lump sum and other
various subsections of that

00:51:14.700 --> 00:51:19.163
but at this point, we'll turn
it over to Connie to lay out.

00:51:21.570 --> 00:51:24.280
<v ->Absolutely, and
just for your reference,</v>

00:51:24.280 --> 00:51:29.010
I believe Andrew Barlow
from our communications group

00:51:29.010 --> 00:51:32.280
and ERCOT's communications team are here

00:51:32.280 --> 00:51:35.930
and available to provide you an update

00:51:35.930 --> 00:51:38.563
on planned communications
for the summer,

00:51:40.000 --> 00:51:42.205
if you'd like to do that now.

00:51:42.205 --> 00:51:43.540
<v ->Yeah, we can go
ahead and start with that,</v>

00:51:43.540 --> 00:51:44.953
stick with the ERCOT theme.

00:51:53.800 --> 00:51:55.903
<v Man>You can add a
chair to the arrangement.</v>

00:51:58.494 --> 00:52:02.223
(indistinct)
<v ->Thank you, Mr. Chair.</v>

00:52:05.607 --> 00:52:07.150
Good morning, Chairman, Mr. McAdams.

00:52:07.150 --> 00:52:10.140
I'm Andrew Barlow on
behalf of the Commission staff

00:52:10.140 --> 00:52:12.960
speaking this morning to
update you on the progress

00:52:12.960 --> 00:52:16.030
that we're making working
with the ERCOT team

00:52:16.030 --> 00:52:20.680
in terms of a forensic look
back on the events of February,

00:52:20.680 --> 00:52:24.880
looking for elements that
we could have done better,

00:52:24.880 --> 00:52:27.730
looking at the impact of
whether it was shortcomings

00:52:27.730 --> 00:52:29.600
or some of the things that we did well

00:52:29.600 --> 00:52:32.570
and the goal looking
forward is to continue

00:52:32.570 --> 00:52:37.250
to work in alignment together
making sure that all the bases

00:52:37.250 --> 00:52:39.210
are covered and that there's areas

00:52:39.210 --> 00:52:41.080
where we can de-conflict certain areas

00:52:41.080 --> 00:52:43.290
where there may be unnecessary overlap

00:52:43.290 --> 00:52:45.520
but also being very
intentional on certain areas

00:52:45.520 --> 00:52:48.110
where we would overlap
to really provide emphasis

00:52:48.110 --> 00:52:49.583
on critical information.

00:52:51.210 --> 00:52:55.390
Our process looking forward,
our critical points right now

00:52:55.390 --> 00:52:58.270
are certainly working to
communicate the outcomes

00:52:58.270 --> 00:52:59.590
of the legislative session

00:52:59.590 --> 00:53:02.590
so the Texans can understand
what their representatives

00:53:02.590 --> 00:53:07.270
have done to mitigate the
issues that were identified

00:53:07.270 --> 00:53:09.620
in the course of the Uri storm event

00:53:09.620 --> 00:53:11.330
but also we have a very sharp focus

00:53:11.330 --> 00:53:13.930
on the pending summer challenges.

00:53:13.930 --> 00:53:15.670
Obviously, we're heading into the summer

00:53:15.670 --> 00:53:19.850
with a wider margin
than we have in past years

00:53:19.850 --> 00:53:21.630
so there's some assurances there

00:53:21.630 --> 00:53:23.240
but one of the things that we realized

00:53:23.240 --> 00:53:27.460
is that we really are dealing
with a Statewide populous

00:53:27.460 --> 00:53:30.740
that has been badly traumatized
by the events of February

00:53:30.740 --> 00:53:32.070
and so we've also realized

00:53:32.070 --> 00:53:35.660
that of all the communications
channels available to us,

00:53:35.660 --> 00:53:39.500
that in a large part, while
social media is certainly

00:53:39.500 --> 00:53:42.130
a positive channel that truthfully,

00:53:42.130 --> 00:53:45.150
the legacy media, TV,
radio and newspapers

00:53:45.150 --> 00:53:47.690
really are the best channel
to deliver information

00:53:47.690 --> 00:53:48.630
directly to Texans.

00:53:48.630 --> 00:53:51.150
So we're working together to make sure

00:53:51.150 --> 00:53:53.510
that we're focusing
on the right audiences

00:53:53.510 --> 00:53:56.420
and taking a phased
approach going into the summer

00:53:56.420 --> 00:54:01.060
to essentially follow a
process of engaging directly

00:54:01.060 --> 00:54:03.480
with critical reporters
in each of the markets

00:54:03.480 --> 00:54:05.810
across the state, making
sure that they're really up

00:54:05.810 --> 00:54:08.482
to speed on the
language and the protocols

00:54:08.482 --> 00:54:12.010
that a process would follow in the event

00:54:12.010 --> 00:54:13.950
of any a weather event,

00:54:13.950 --> 00:54:18.950
be it a tight reserves situation
or even a tropical storm,

00:54:20.540 --> 00:54:22.110
making sure they
understand the language,

00:54:22.110 --> 00:54:24.570
understand the processes
so that they're fully informed

00:54:24.570 --> 00:54:26.960
and fully connected so that
they can communicate properly

00:54:26.960 --> 00:54:28.960
with their audiences.

00:54:28.960 --> 00:54:33.960
Then to also follow on that
with our own outreach activities

00:54:33.990 --> 00:54:37.180
to go directly to Texans through
our various media channels

00:54:37.180 --> 00:54:40.160
to provide information and
to provide places for them

00:54:40.160 --> 00:54:43.020
to go to discover what they need to know

00:54:43.020 --> 00:54:44.620
if they hadn't gotten around to it

00:54:44.620 --> 00:54:46.550
by the time they're in trouble.

00:54:46.550 --> 00:54:50.010
That's the broad effort
that we're pursuing together

00:54:50.010 --> 00:54:53.946
in alignment with ERCOT
and I think we've got

00:54:53.946 --> 00:54:55.990
a draft communications plan here

00:54:55.990 --> 00:54:58.180
that I'll be able to share
with you on the 11th

00:54:58.180 --> 00:55:02.493
after some closer review
from agency leadership.

00:55:03.350 --> 00:55:05.783
That's our broad plan
going into the summer.

00:55:08.000 --> 00:55:10.470
<v ->Hi, good morning.</v>

00:55:10.470 --> 00:55:12.460
For the record, my name is Chris Shine,

00:55:12.460 --> 00:55:15.463
an interim communications
leader for ERCOT.

00:55:16.880 --> 00:55:21.716
As Andrew said, we're
working closely together.

00:55:21.716 --> 00:55:25.500
I came on board almost 30 days ago,

00:55:25.500 --> 00:55:28.290
Monday will be my 30th day.

00:55:28.290 --> 00:55:32.250
We've been charging ahead
quickly trying to implement

00:55:32.250 --> 00:55:35.700
a number of the lessons
learned as a result

00:55:35.700 --> 00:55:40.700
of the February event but we
are very much looking forward.

00:55:40.820 --> 00:55:43.490
I've spent more than
20 years of my career

00:55:43.490 --> 00:55:47.480
working in the Texas
electric utility industry.

00:55:47.480 --> 00:55:52.480
It's been my job to
communicate clearly and concisely

00:55:52.660 --> 00:55:55.470
and one of the things that we
heard as a result of February

00:55:55.470 --> 00:55:58.600
is that we, ERCOT need to
communicate more clearly

00:55:58.600 --> 00:56:01.370
and so we're implementing
the policies and practices

00:56:01.370 --> 00:56:05.230
to do that and working
very closely with Andrew

00:56:05.230 --> 00:56:09.963
on our plans moving forward
to make sure that all happens.

00:56:11.930 --> 00:56:12.920
<v Lake>Excellent.</v>

00:56:12.920 --> 00:56:15.530
<v ->If I could mention as
well, if it's okay to link back</v>

00:56:15.530 --> 00:56:18.750
to the previous conversation
about the programs

00:56:18.750 --> 00:56:20.940
being offered by the Texas
Department of Housing

00:56:20.940 --> 00:56:21.773
and Community Affairs.

00:56:21.773 --> 00:56:24.170
We've been actively
involved in an outreach effort

00:56:24.170 --> 00:56:27.120
to utilities that everybody
who's on our database,

00:56:27.120 --> 00:56:29.020
whether it's a water and sewer utility,

00:56:29.020 --> 00:56:30.970
retail electric provider,
any of the other

00:56:30.970 --> 00:56:33.660
load serving entities,
co-ops and so forth

00:56:33.660 --> 00:56:36.070
sharing with them information,
emails, points of contact

00:56:36.070 --> 00:56:37.610
so that they can go through that process

00:56:37.610 --> 00:56:39.960
of getting themselves
registered with TDHCA

00:56:39.960 --> 00:56:43.060
for the purpose of
processing those payments

00:56:43.060 --> 00:56:46.520
so that they can get the
funds as quickly as possible.

00:56:46.520 --> 00:56:47.750
That's something that's ongoing

00:56:47.750 --> 00:56:49.510
and then this next phase
that we talked about

00:56:49.510 --> 00:56:52.440
will be adding additional
resources to the website

00:56:52.440 --> 00:56:54.790
and just continuing that
process because again,

00:56:55.770 --> 00:56:57.710
TDHCA is doing a fantastic job.

00:56:57.710 --> 00:56:59.050
We work closely with them.

00:56:59.050 --> 00:57:01.380
They've got a great advertising firm

00:57:01.380 --> 00:57:03.550
that's working with them
to support their efforts,

00:57:03.550 --> 00:57:05.600
providing us materials as well.

00:57:05.600 --> 00:57:07.470
So customers can expect to see things

00:57:07.470 --> 00:57:10.360
like bill inserts that
describe their program to 'em,

00:57:10.360 --> 00:57:12.690
that's coming to them
directly from their provider.

00:57:12.690 --> 00:57:15.300
Again, whether it's
water, sewer, electric

00:57:15.300 --> 00:57:17.230
and then we're also
working again to make sure

00:57:17.230 --> 00:57:19.140
that the entities who
would be processing

00:57:19.140 --> 00:57:20.320
the payments are engaged.

00:57:20.320 --> 00:57:22.220
We're just gonna keep beating that drum,

00:57:22.220 --> 00:57:24.540
keep getting the word out as best we can

00:57:24.540 --> 00:57:28.070
just to make sure that the
people who need these resources

00:57:28.070 --> 00:57:31.230
will have access to them
as quickly as possible.

00:57:31.230 --> 00:57:34.030
The other element I wanted to
mention going into the summer,

00:57:34.030 --> 00:57:37.070
I talked about the notion of, in Texas,

00:57:37.070 --> 00:57:38.110
we deal with the high temperatures

00:57:38.110 --> 00:57:41.050
but we also often deal
with the possibility of storms.

00:57:41.050 --> 00:57:42.930
There was conversation
during the session

00:57:42.930 --> 00:57:45.790
and legislation moving
forward that talks

00:57:45.790 --> 00:57:47.477
about the whole notion of the use

00:57:48.575 --> 00:57:50.550
of the emergency alert system.

00:57:50.550 --> 00:57:53.220
We've been in conversation
with the Texas Department

00:57:53.220 --> 00:57:55.310
of Emergency Management
with meetings coming up

00:57:55.310 --> 00:57:58.180
to talk with their
communicators to mesh with ours

00:57:58.180 --> 00:58:00.093
and with ERCOT as well.

00:58:02.695 --> 00:58:04.660
It's not happened in
the past necessarily

00:58:04.660 --> 00:58:06.930
that the Texas Department
of Emergency Management

00:58:06.930 --> 00:58:09.080
has activated the
State Operations Center

00:58:09.080 --> 00:58:11.410
for a summer weather episode

00:58:11.410 --> 00:58:13.530
or specifically I'll say
heat related episode

00:58:13.530 --> 00:58:15.250
that pertains to the grid.

00:58:15.250 --> 00:58:19.440
However, in the absence
of a SOC activation,

00:58:19.440 --> 00:58:21.760
they still have communications channels

00:58:21.760 --> 00:58:24.150
that we could utilize
to get information out

00:58:24.150 --> 00:58:28.290
to local councils of
government, county judges,

00:58:28.290 --> 00:58:30.740
the different groups
that align with them.

00:58:30.740 --> 00:58:32.170
They're willing already to,

00:58:32.170 --> 00:58:35.710
if we need it in the
midst of a heat event

00:58:35.710 --> 00:58:38.630
and a grid event that
they're ready to go.

00:58:38.630 --> 00:58:40.530
We're continuing those conversations

00:58:40.530 --> 00:58:41.860
and looking at the implementation

00:58:41.860 --> 00:58:44.250
of the emergency communications,

00:58:44.250 --> 00:58:47.040
finding out where on
the spectrum that role was

00:58:47.040 --> 00:58:49.260
and then the final comment
I would make is that

00:58:49.260 --> 00:58:52.040
from a philosophical and
theoretical perspective

00:58:52.040 --> 00:58:56.760
going into the summer, the
goal is that we will very likely

00:58:56.760 --> 00:58:58.363
be communicating more earlier.

00:59:00.105 --> 00:59:04.160
There will be no reticence on
our part to express concerns

00:59:04.160 --> 00:59:06.530
about if we are looking
at tight grid conditions

00:59:06.530 --> 00:59:07.880
so that people can prepare.

00:59:09.070 --> 00:59:10.440
The challenge that we have

00:59:10.440 --> 00:59:11.930
and the thing that we invite Texans

00:59:11.930 --> 00:59:14.520
to be in this process with us to realize

00:59:14.520 --> 00:59:16.230
is that in the interest of communicating

00:59:16.230 --> 00:59:18.880
as much as they need,
there may be an initial sense

00:59:18.880 --> 00:59:22.320
of overcommunication and
there may be a knee-jerk reaction

00:59:22.320 --> 00:59:25.330
of panic because of what
they experienced in February

00:59:25.330 --> 00:59:26.960
but we really believe
that it's just gonna take

00:59:26.960 --> 00:59:29.370
some repetition in this communication

00:59:29.370 --> 00:59:32.320
so that by the time, should we encounter

00:59:32.320 --> 00:59:35.860
tight grid conditions that
they realize in context

00:59:35.860 --> 00:59:36.970
what they're looking at,

00:59:36.970 --> 00:59:41.350
how summer is different from
winter, how the response times,

00:59:41.350 --> 00:59:44.110
how the recovery times that
so many things are different

00:59:44.110 --> 00:59:46.510
so that they can realize
that contextually speaking,

00:59:46.510 --> 00:59:48.010
they're dealing with a different animal

00:59:48.010 --> 00:59:49.750
and they can take different steps

00:59:49.750 --> 00:59:51.750
as we work through the process together.

00:59:53.050 --> 00:59:57.200
<v ->Sure, outstanding.
(indistinct)</v>

00:59:57.200 --> 00:59:58.930
Thank you, gentlemen
for laying that out.

00:59:58.930 --> 01:00:01.690
I think the most important
part of what you said

01:00:01.690 --> 01:00:06.690
is the working together
part and that is by far

01:00:06.800 --> 01:00:10.130
the most significant
element of this new approach

01:00:10.130 --> 01:00:12.373
to communicating with Texans.

01:00:14.120 --> 01:00:18.450
I think Chris, probably
both of you mentioned

01:00:18.450 --> 01:00:22.420
more streamlined, clear
communication, less jargon,

01:00:22.420 --> 01:00:27.420
more plain English, which
I think we'll all appreciate

01:00:28.660 --> 01:00:33.660
and that it's also more than
just emergency grid conditions.

01:00:33.780 --> 01:00:36.880
It's water providers,
it's a variety of...

01:00:36.880 --> 01:00:41.270
It's the utility bills,
high utility bills.

01:00:41.270 --> 01:00:43.640
It's making sure people know
those resources are available.

01:00:43.640 --> 01:00:48.640
This partnership in
communication extends beyond

01:00:49.060 --> 01:00:52.350
just emergency grid conditions
and I very much look forward

01:00:52.350 --> 01:00:55.580
to seeing the completed
plan when it's ready.

01:00:55.580 --> 01:00:56.960
<v ->Yes, sir.</v>
<v ->Any questions?</v>

01:00:56.960 --> 01:00:57.910
<v ->Thanks, sir.</v>

01:00:57.910 --> 01:00:59.333
If I could make one ask.

01:01:01.140 --> 01:01:03.470
After the session concluded

01:01:03.470 --> 01:01:06.840
having spoken to some policy makers,

01:01:06.840 --> 01:01:11.840
it's apparent that you
guys are on the right track.

01:01:12.040 --> 01:01:14.290
We need to educate the
public as much as we can.

01:01:14.290 --> 01:01:16.427
They are now familiar with
the existence of ERCOT

01:01:16.427 --> 01:01:17.990
and the Public Utility Commission.

01:01:17.990 --> 01:01:21.520
We are no longer a sleepy little agency

01:01:21.520 --> 01:01:26.330
but as such, we need to
promulgate as many products,

01:01:26.330 --> 01:01:31.330
educational products as
we can to signal to folks

01:01:31.340 --> 01:01:35.750
that in periods of tight grid
conditions or at least EEA1,

01:01:35.750 --> 01:01:39.110
they need to be familiar
somewhat with the EEA process.

01:01:39.110 --> 01:01:43.950
Again, that's the exact
metrics we are confined in

01:01:43.950 --> 01:01:48.950
through NERC guidelines but
the public needs to understand

01:01:48.960 --> 01:01:52.790
when you hit EEA1,
that is a market signal

01:01:52.790 --> 01:01:54.840
as much as anything else.

01:01:54.840 --> 01:01:57.370
Yes, we ask for conservation but again,

01:01:57.370 --> 01:01:59.890
that trigger signals
to market participants

01:02:01.350 --> 01:02:04.530
to bring products into
the market that help assist

01:02:04.530 --> 01:02:06.810
in ensuring reliability.

01:02:06.810 --> 01:02:10.590
So my ask would be, for
the purposes of the legislature

01:02:10.590 --> 01:02:13.930
as they go out and talk
about what they've done

01:02:13.930 --> 01:02:18.250
and what PUC and the state is doing

01:02:18.250 --> 01:02:21.800
to address the
aftereffects of the crisis,

01:02:21.800 --> 01:02:25.250
if we could provide them
a one pager that states

01:02:25.250 --> 01:02:28.210
in layman's terms, how EEA functions,

01:02:28.210 --> 01:02:31.430
again, what it is designed
to signal and at what points.

01:02:31.430 --> 01:02:33.350
Conservation is important but again,

01:02:33.350 --> 01:02:37.030
it sends a market signal for
more resources to come in

01:02:37.030 --> 01:02:39.320
to ensure that the lights don't go out.

01:02:39.320 --> 01:02:41.230
I think it's a fine
line and a bright line

01:02:41.230 --> 01:02:44.130
that we need to paint ahead
of August and September

01:02:44.130 --> 01:02:46.700
when those conservation
alerts will go out,

01:02:46.700 --> 01:02:48.650
we will see that.

01:02:48.650 --> 01:02:50.540
Transmission constraints will occur

01:02:50.540 --> 01:02:54.710
but they need to know that
our communication strategy

01:02:54.710 --> 01:02:59.710
has a two-part
approach, is that possible?

01:03:00.020 --> 01:03:03.210
Again, June 11th, we'll
come up in our open meeting

01:03:03.210 --> 01:03:04.770
but we've done a great job.

01:03:04.770 --> 01:03:07.470
You guys have done
Ögelman's work on the part

01:03:07.470 --> 01:03:10.980
of the disconnect moratorium,
the resource one pager.

01:03:10.980 --> 01:03:12.850
Could we produce something like that

01:03:12.850 --> 01:03:15.320
so that a third grader can understand

01:03:15.320 --> 01:03:17.060
how this all plays together?

01:03:17.060 --> 01:03:18.380
<v ->Absolutely, I
mean, the truth is</v>

01:03:18.380 --> 01:03:20.500
if something could be
simplified to the point

01:03:20.500 --> 01:03:22.320
that I can understand it, then
anybody can understand it.

01:03:22.320 --> 01:03:23.480
<v ->Me, too.</v>

01:03:23.480 --> 01:03:24.900
<v ->We're gonna take
that perspective for sure.</v>

01:03:24.900 --> 01:03:25.750
<v Will>Awesome.</v>

01:03:27.370 --> 01:03:28.560
<v Lake>All right, thank
you, gentlemen.</v>

01:03:28.560 --> 01:03:30.020
<v ->Thank you very much.</v>

01:03:30.020 --> 01:03:31.130
<v ->We'll turn it back
over to Connie</v>

01:03:31.130 --> 01:03:34.253
for the next part of this item.

01:03:35.830 --> 01:03:37.180
<v ->Thank you, Commissioners.</v>

01:03:38.100 --> 01:03:43.100
I have prepared, in conjunction
with numerous staff folks

01:03:46.010 --> 01:03:48.610
some points to discuss with you

01:03:48.610 --> 01:03:51.510
regarding upcoming rulemaking projects

01:03:51.510 --> 01:03:54.460
and associated timelines.

01:03:54.460 --> 01:03:57.910
My plan is to gather your
feedback here on those topics

01:03:57.910 --> 01:04:02.910
and timelines and then
assemble it into a document

01:04:03.490 --> 01:04:08.290
to be filed for the public
to better understand

01:04:10.710 --> 01:04:15.290
what our priority, sorry,
the tiers and the order

01:04:15.290 --> 01:04:17.510
in which we plan to take these things up

01:04:17.510 --> 01:04:20.423
and also the forum in
which we'd like to do it.

01:04:21.880 --> 01:04:26.163
The first one I want to talk
about is project number 51830.

01:04:29.390 --> 01:04:33.230
That is currently styled as review

01:04:33.230 --> 01:04:34.810
of wholesale index products

01:04:34.810 --> 01:04:36.860
for compliance with
customer protection rules

01:04:36.860 --> 01:04:39.210
for retail electric service.

01:04:39.210 --> 01:04:44.210
Staff proposes to broaden
the scope of that project

01:04:44.800 --> 01:04:47.590
such that we'll incorporate
the changes made

01:04:47.590 --> 01:04:52.590
by House Bill 16, which
prohibits these types of products

01:04:54.410 --> 01:04:57.270
for residential and small
commercial customers

01:04:57.270 --> 01:05:02.270
and it further enhances
customer notification requirements

01:05:03.060 --> 01:05:04.910
regarding their electric plans.

01:05:04.910 --> 01:05:08.300
That's why we believe that
this should be a broader project

01:05:09.810 --> 01:05:14.810
and in doing so, we would
also like to review the document

01:05:15.540 --> 01:05:18.870
that's called in our rules,
your rights as a customer

01:05:18.870 --> 01:05:22.470
and this serves to summarize
and notify customers

01:05:22.470 --> 01:05:27.020
of their customer protection
rights under our rules.

01:05:27.020 --> 01:05:32.020
We believe there's some
additions as regards load shed

01:05:32.420 --> 01:05:35.680
and critical load status
so we'd like to add that

01:05:35.680 --> 01:05:37.303
to the (indistinct) as well.

01:05:39.690 --> 01:05:44.690
We believe that customer
protection issues are urgent

01:05:45.550 --> 01:05:50.230
and we would like to get
implementation of House Bill 16

01:05:50.230 --> 01:05:52.640
started as soon as possible.

01:05:52.640 --> 01:05:56.030
For that reason, we propose
to bring you a proposal

01:05:56.030 --> 01:05:57.720
for publication in July

01:05:59.010 --> 01:06:04.010
at your July 15th open
meeting tentatively

01:06:04.160 --> 01:06:08.820
and to prepare for that,
we plan to potentially offer

01:06:10.490 --> 01:06:15.490
a straw man, so a very
rough draft of the rule changes

01:06:15.720 --> 01:06:17.750
and discuss it with you,

01:06:17.750 --> 01:06:21.810
discuss it with market
participants, gain their feedback

01:06:21.810 --> 01:06:25.820
through the month
of June and early July,

01:06:25.820 --> 01:06:28.473
then bringing you a proposal in July.

01:06:31.800 --> 01:06:36.800
It might be an appropriate
use of these work sessions

01:06:37.040 --> 01:06:40.100
to bring you the draft
and seek some feedback

01:06:40.100 --> 01:06:41.440
from you on that.

01:06:41.440 --> 01:06:44.140
<v ->I think that'd be a great
use of these work sessions</v>

01:06:45.380 --> 01:06:50.380
and would also emphasize that one,

01:06:50.520 --> 01:06:54.550
I love the idea of the straw
man and it's very difficult

01:06:54.550 --> 01:06:57.890
coming up with these
types of rules in a vacuum.

01:06:57.890 --> 01:07:00.770
So the more input from market
participants and especially,

01:07:00.770 --> 01:07:04.713
consumers related to
this particular project,

01:07:05.700 --> 01:07:09.090
they're always a big
factor but even more so

01:07:09.090 --> 01:07:14.090
in this project, I think it's
even more valuable for them

01:07:14.150 --> 01:07:17.250
to get a look at a straw man version.

01:07:17.250 --> 01:07:20.420
I would also ask that in looking

01:07:20.420 --> 01:07:25.420
at the wholesale indexed
products for commercial users

01:07:28.290 --> 01:07:32.600
to certainly include
the ancillary component

01:07:32.600 --> 01:07:34.510
that's gotten so much discussion today.

01:07:34.510 --> 01:07:38.320
I know that snuck up on a lot
of people, a lot of businesses

01:07:38.320 --> 01:07:43.320
and commercial users
during the winter event.

01:07:43.905 --> 01:07:45.210
We certainly wanna keep that in mind

01:07:45.210 --> 01:07:48.500
as we work out the conditions
under which those contracts

01:07:48.500 --> 01:07:50.000
can be offered.
<v ->Absolutely.</v>

01:07:51.409 --> 01:07:52.640
<v ->Any thoughts on this one?</v>

01:07:52.640 --> 01:07:57.640
<v ->I think that's right and I'm
good with the schedule, too</v>

01:07:57.770 --> 01:07:58.990
but I like the format.

01:07:58.990 --> 01:07:59.823
<v ->Sounds great.</v>

01:08:01.870 --> 01:08:06.110
The next one on my list is 51840,

01:08:06.110 --> 01:08:09.370
rulemaking to establish
weatherization standards.

01:08:09.370 --> 01:08:13.510
This one in particular has a
six-months statutory deadline

01:08:15.300 --> 01:08:18.180
from Senate Bill three,
the pending legislation

01:08:18.180 --> 01:08:19.880
that we've been
referring to this morning

01:08:19.880 --> 01:08:21.553
that sits on the Governor's desk.

01:08:27.600 --> 01:08:31.980
It has maybe a greater amount of detail,

01:08:31.980 --> 01:08:34.520
obviously in Senate Bill three

01:08:34.520 --> 01:08:39.520
than the targeted
issues we see in HB 16.

01:08:39.690 --> 01:08:44.690
So we'd like to take a little
more prep time in our draft

01:08:46.920 --> 01:08:50.500
while still keeping an urgent pace

01:08:50.500 --> 01:08:54.230
and bring that to you
for a workshop in July

01:08:55.800 --> 01:08:57.900
to work through those
weatherization issues

01:08:57.900 --> 01:09:00.723
and then bring the proposal
for publication in August.

01:09:01.890 --> 01:09:04.720
That would still allow us to
meet a six-month deadline

01:09:04.720 --> 01:09:05.573
of November.

01:09:08.130 --> 01:09:09.630
<v Lake>Yeah, that
timing works for me.</v>

01:09:09.630 --> 01:09:12.630
<v Will>Yeah, I think it has to
'cause of the statute, too.</v>

01:09:15.070 --> 01:09:17.210
<v ->I know we're just
on the front end of this</v>

01:09:18.300 --> 01:09:21.120
for this project regarding reliability,

01:09:21.120 --> 01:09:23.550
weatherization, et cetera.

01:09:23.550 --> 01:09:26.030
One thing I would ask as we start this

01:09:26.880 --> 01:09:31.320
is to one, keep in mind, not just you

01:09:31.320 --> 01:09:34.670
but collectively as the
Commission evaluates this,

01:09:34.670 --> 01:09:37.370
keep in mind the summer-winter dynamic

01:09:37.370 --> 01:09:39.483
and don't solve for just one.

01:09:41.100 --> 01:09:42.850
What works in the summer can impede

01:09:44.070 --> 01:09:47.310
operations in the summer
and vice versa and then two,

01:09:47.310 --> 01:09:52.310
I'd also ask to be
keenly aware of the fact

01:09:52.950 --> 01:09:56.870
that one size doesn't fit all
in almost everything in Texas

01:09:56.870 --> 01:09:59.270
and especially in weather conditions,

01:09:59.270 --> 01:10:01.830
what may be appropriate for Amarillo

01:10:01.830 --> 01:10:03.420
would probably be very
different for Brownsville

01:10:03.420 --> 01:10:05.963
and El Paso to Beaumont as well.

01:10:08.430 --> 01:10:11.210
I don't know what that looks
like in practice or in detail

01:10:11.210 --> 01:10:14.833
but please keep that notion
in mind as we develop these.

01:10:16.990 --> 01:10:18.990
<v Connie>That's very
helpful feedback.</v>

01:10:21.210 --> 01:10:22.043
<v ->One more thing</v>

01:10:24.600 --> 01:10:26.210
and it's always as we look at this,

01:10:26.210 --> 01:10:29.003
I know this is a new
initiative for the Commission.

01:10:30.270 --> 01:10:31.960
To the extent possible,

01:10:31.960 --> 01:10:35.090
it's always good to see who
else out there has done this

01:10:35.090 --> 01:10:38.340
and done well, not only
across the U.S but globally.

01:10:38.340 --> 01:10:39.417
<v ->Australia (indistinct).</v>

01:10:40.650 --> 01:10:41.860
<v ->Australia may be a candidate,</v>

01:10:41.860 --> 01:10:43.520
there's no monopoly on good ideas

01:10:43.520 --> 01:10:46.880
and if it helps with reliability
and keeping people safe,

01:10:46.880 --> 01:10:49.803
I'm happy to steal
from others good ideas.

01:10:51.879 --> 01:10:54.340
It'd be good to see, if
nothing else as a reference

01:10:54.340 --> 01:10:56.523
what other folks have
done around the world.

01:10:56.523 --> 01:10:57.363
<v ->Glad to.</v>

01:11:01.120 --> 01:11:04.940
Skipping over a couple of my notes here

01:11:04.940 --> 01:11:08.490
down to project number 51888,

01:11:08.490 --> 01:11:12.460
review of critical load
standards and processes.

01:11:12.460 --> 01:11:13.660
I bring that up next

01:11:13.660 --> 01:11:18.250
because I believe we should
take a similar timeline on that

01:11:19.370 --> 01:11:22.080
as we do with the weatherization.

01:11:22.080 --> 01:11:26.400
Those will follow along
the same schedule

01:11:26.400 --> 01:11:28.450
with the July workshop

01:11:28.450 --> 01:11:32.593
and then a potential rule
adoption in November.

01:11:36.440 --> 01:11:41.440
The remaining rulemaking
that we've brought to discuss

01:11:41.540 --> 01:11:45.533
with you today for scoping
purposes is 51841 review

01:11:47.640 --> 01:11:52.640
of R25.53 relating to electric service

01:11:53.550 --> 01:11:55.403
emergency operations plans.

01:11:56.270 --> 01:11:57.840
Staff is digging into that.

01:11:57.840 --> 01:11:59.410
They're currently looking

01:11:59.410 --> 01:12:02.070
at the existing emergency
operations plans

01:12:02.070 --> 01:12:06.560
and proposing to come
up with some standards

01:12:06.560 --> 01:12:11.560
for potential revisions to
the requirements for those.

01:12:12.100 --> 01:12:17.100
We don't yet have a
proposed schedule on that

01:12:17.660 --> 01:12:21.180
but they have already begun the review

01:12:21.180 --> 01:12:24.623
and are looking at those issues.

01:12:26.560 --> 01:12:30.760
Finally, we have three new projects

01:12:30.760 --> 01:12:35.760
that we've proposed to
open arising from legislation

01:12:36.530 --> 01:12:38.500
that has passed.

01:12:38.500 --> 01:12:43.500
Senate Bill two changes the
ERCOT governance significantly

01:12:45.280 --> 01:12:47.690
as well as the composition of the board

01:12:47.690 --> 01:12:50.450
and calls for a protocol
approval process

01:12:50.450 --> 01:12:53.283
with the market impact
statement here at the Commission.

01:12:54.890 --> 01:12:59.040
We've proposed to open a project on that

01:12:59.040 --> 01:13:01.780
and get to work quickly on it

01:13:01.780 --> 01:13:04.843
because it needs to be
in place by September 1st.

01:13:05.850 --> 01:13:07.240
<v Lake>Pending the
Governor's signature.</v>

01:13:07.240 --> 01:13:08.790
<v ->That's right, that's correct.</v>

01:13:13.670 --> 01:13:15.763
Anything further on that one?

01:13:16.880 --> 01:13:18.480
<v ->Not from me, let's just go on.</v>

01:13:21.650 --> 01:13:25.000
<v ->Again from Senate
Bill three, which is sitting</v>

01:13:25.000 --> 01:13:27.660
on the Governor's desk
awaiting his signature,

01:13:27.660 --> 01:13:31.650
we have a directive to create a criteria

01:13:31.650 --> 01:13:35.670
for a power outage
alert that would cover

01:13:35.670 --> 01:13:38.660
the content activation and termination.

01:13:38.660 --> 01:13:42.040
That would be a new
project to get started on

01:13:42.040 --> 01:13:44.470
as soon as the bill is signed

01:13:46.240 --> 01:13:48.640
and then finally, there are a number

01:13:48.640 --> 01:13:53.640
of water customer
protections that are included

01:13:54.190 --> 01:13:59.190
in Senate Bill three as
well as other legislation

01:13:59.840 --> 01:14:02.860
that we would propose
to run concurrently

01:14:02.860 --> 01:14:05.510
with some of these projects
in the electric industry.

01:14:08.770 --> 01:14:11.590
I think that concludes the list

01:14:11.590 --> 01:14:16.263
of what I've brought to you
for scoping and timelines today.

01:14:17.320 --> 01:14:19.200
<v Lake>It all works for me, Will?</v>

01:14:19.200 --> 01:14:20.927
<v ->So for the purposes of,</v>

01:14:20.927 --> 01:14:24.020
and I know you guys
have been looking at it, too,

01:14:24.020 --> 01:14:26.490
there's other implied things that were

01:14:26.490 --> 01:14:30.350
in either Senate Bill two or three,

01:14:30.350 --> 01:14:35.350
some of which were clearly
envisioned under PURA

01:14:37.630 --> 01:14:42.097
at various times over the
years but this is outside

01:14:43.130 --> 01:14:47.130
and again, this has been
jelled with Connie's matrix

01:14:47.130 --> 01:14:51.780
of different issues that
we believe, that I believe

01:14:51.780 --> 01:14:55.980
have presented themselves,
not only during the winter storm

01:14:55.980 --> 01:14:57.370
but after it.

01:14:57.370 --> 01:15:01.260
One relates, and I
won't stress this too hard.

01:15:01.260 --> 01:15:02.990
There are other conversations going on

01:15:02.990 --> 01:15:07.630
about market participants,
how do they interplay in ERCOT?

01:15:07.630 --> 01:15:10.820
How do they participate
in the wholesale market?

01:15:10.820 --> 01:15:13.410
That may be one workshop related

01:15:14.850 --> 01:15:18.237
just so that we can get our
arms around how everybody

01:15:18.237 --> 01:15:20.870
is acting together, especially in light

01:15:20.870 --> 01:15:24.750
of some of the obligations
that have been built in

01:15:24.750 --> 01:15:29.750
by the state to assist
folks impacted by Uri.

01:15:31.380 --> 01:15:34.840
The other one is reliability metrics.

01:15:34.840 --> 01:15:37.750
The CDR and the CERA
have been identified.

01:15:37.750 --> 01:15:42.520
I think ERCOT staff and
even the board in conversations

01:15:42.520 --> 01:15:45.170
with them has agreed
we need to revamp that.

01:15:45.170 --> 01:15:47.300
I mean, there's so many
pending things out there

01:15:47.300 --> 01:15:50.620
that as you identified
on a seasonal basis

01:15:50.620 --> 01:15:55.620
versus this twice a year
report or even the CERA,

01:15:56.600 --> 01:15:59.310
what's being computed into that.

01:15:59.310 --> 01:16:03.150
We now have batteries
coming into the market,

01:16:03.150 --> 01:16:07.890
solar forecasted to come
in to an intense degree

01:16:07.890 --> 01:16:09.707
over the next two years

01:16:09.707 --> 01:16:13.540
so we need to have some type of venue

01:16:13.540 --> 01:16:15.200
where everybody can come together

01:16:15.200 --> 01:16:20.200
and start wargaming this
out because after that 20 gigs

01:16:20.570 --> 01:16:23.770
or two thirds of which is on
the ground, it's gonna create

01:16:23.770 --> 01:16:28.770
some real policy considerations
for us and the legislature.

01:16:30.570 --> 01:16:32.980
I think that would help going into 2023

01:16:32.980 --> 01:16:34.500
for the legislature to consider.

01:16:34.500 --> 01:16:39.500
Securitization, obviously,
man, I'm not well versed

01:16:40.010 --> 01:16:41.880
in how this functionally will work

01:16:41.880 --> 01:16:44.650
so I'll lean on you and
the more opportunities

01:16:44.650 --> 01:16:48.220
I get to hear you out and
what your thinking on that.

01:16:48.220 --> 01:16:50.170
I would value that.

01:16:50.170 --> 01:16:51.700
Scarcity pricing mechanism.

01:16:51.700 --> 01:16:53.430
As a part of Senate
Bill three, of course

01:16:53.430 --> 01:16:55.670
pending the Governor's signature,

01:16:55.670 --> 01:16:57.443
they require us to open that up.

01:16:58.640 --> 01:17:02.150
Again, we have a rulemaking
right now that'll close out

01:17:02.150 --> 01:17:04.410
and then I would propose
opening that back up

01:17:04.410 --> 01:17:07.510
to look at other issues,
including high cap

01:17:08.450 --> 01:17:10.613
but also in tandem with that, ORDC,

01:17:11.620 --> 01:17:13.270
how should that interact with it.

01:17:14.200 --> 01:17:18.040
I think all of those are gonna
require experts to come in

01:17:18.040 --> 01:17:19.630
and tell us what they think.

01:17:19.630 --> 01:17:22.393
I think you would value
that, I know I certainly would.

01:17:23.620 --> 01:17:27.560
I also think these topics,
combined with Connie's

01:17:27.560 --> 01:17:29.400
would provide...

01:17:29.400 --> 01:17:32.940
I think the legislature is
gonna be back sooner or later

01:17:32.940 --> 01:17:36.340
and they're gonna wanna
know productivity wise

01:17:36.340 --> 01:17:38.230
what we're doing.

01:17:38.230 --> 01:17:40.400
This would actually give
them an opportunity to engage.

01:17:40.400 --> 01:17:42.560
I mean, they could
sit in on this stuff and--

01:17:42.560 --> 01:17:45.270
<v ->Sure, you're braver
than I am to speculate</v>

01:17:45.270 --> 01:17:46.320
on when the legislation's gonna be back.

01:17:46.320 --> 01:17:49.170
<v ->I know, yeah.
(laughs)</v>

01:17:49.170 --> 01:17:52.820
Anyway, that's just my spitball ideas.

01:17:52.820 --> 01:17:54.800
You can see what sticks.

01:17:54.800 --> 01:17:56.930
<v ->I've got a very similar
list I've been working on</v>

01:17:56.930 --> 01:18:01.270
and have gone so far as
to start identifying experts,

01:18:02.860 --> 01:18:07.860
like you said, everything
from engineers to professors.

01:18:09.650 --> 01:18:13.070
It's a work in progress
but once I get that to...

01:18:13.070 --> 01:18:14.860
<v ->We could just
meld 'em all together.</v>

01:18:14.860 --> 01:18:15.693
<v ->Yeah, absolutely.</v>

01:18:15.693 --> 01:18:18.210
<v ->And see what the
schedule works--</v>

01:18:18.210 --> 01:18:19.330
<v ->I'll say that with a caveat</v>

01:18:19.330 --> 01:18:22.650
that I think pending the timeline,

01:18:22.650 --> 01:18:27.650
I think especially in June
or in the next 30 days,

01:18:28.650 --> 01:18:33.650
our focus should be acutely
and incredibly focused

01:18:34.180 --> 01:18:35.490
on stabilizing for the summer.

01:18:35.490 --> 01:18:36.323
<v ->Yes, sir.</v>

01:18:36.323 --> 01:18:38.807
<v ->Like the urgent NPRRs
we're working on now,</v>

01:18:40.640 --> 01:18:42.920
that's not a perfect solution forever

01:18:42.920 --> 01:18:47.160
but that's to make
sure we can get this grid

01:18:47.160 --> 01:18:49.220
in as good a condition as possible

01:18:49.220 --> 01:18:51.023
for whatever this summer holds.

01:18:52.070 --> 01:18:53.710
Kenan, I know you mentioned this

01:18:54.570 --> 01:18:58.440
but I don't want it to go overlooked

01:18:58.440 --> 01:19:00.480
that when we talked
about the scenario analysis

01:19:00.480 --> 01:19:05.480
for any new NPRR,

01:19:05.960 --> 01:19:10.040
you're also starting to do
stress tests, scenario tests

01:19:10.040 --> 01:19:14.583
on tail events, like flying a plane.

01:19:15.760 --> 01:19:20.010
99% of the time, it's very
boring but that 1% of the time

01:19:20.010 --> 01:19:24.190
when it's not boring is
when we need the skills

01:19:24.190 --> 01:19:27.920
and expertise of a lot of stakeholders.

01:19:27.920 --> 01:19:31.470
I know that's an expansion
of y'all's normal process,

01:19:31.470 --> 01:19:33.060
I commend you for that.

01:19:33.060 --> 01:19:37.490
I know they're looking at CERA also

01:19:37.490 --> 01:19:40.993
has had an expanded
scope of scenario analysis.

01:19:42.610 --> 01:19:44.980
Offer that as a caveat
before we get into the...

01:19:44.980 --> 01:19:48.170
I'd like to make sure we
get all of those taken care of

01:19:48.170 --> 01:19:51.200
so going into July and August,
we're in as good a condition

01:19:51.200 --> 01:19:56.200
as we can be and then dive
in on, say, starting in July

01:19:57.840 --> 01:19:59.600
if that makes sense.

01:19:59.600 --> 01:20:03.410
Then we can dive into the
longer term bigger issues.

01:20:03.410 --> 01:20:07.530
Of course--
<v ->I just was taking shots</v>

01:20:07.530 --> 01:20:10.100
on what I thought might
come into play sooner

01:20:10.100 --> 01:20:12.853
rather than later,
say on securitization.

01:20:14.000 --> 01:20:17.120
Man, I frankly just don't
know when that will come

01:20:17.120 --> 01:20:20.300
full force upon us and--

01:20:20.300 --> 01:20:24.090
<v ->Yeah, well pending the
Governor's consideration--</v>

01:20:24.090 --> 01:20:25.413
<v ->And then other things.</v>

01:20:26.436 --> 01:20:31.043
<v ->Yeah, a variety of
factors but in many ways,</v>

01:20:33.480 --> 01:20:38.480
that would be a price
shock protection mechanism

01:20:39.420 --> 01:20:43.690
for consumers and so
the sooner the better.

01:20:43.690 --> 01:20:46.130
None of it's simple or straightforward,

01:20:46.130 --> 01:20:47.770
so it's not something
that can happen overnight

01:20:47.770 --> 01:20:50.683
but certainly, that's something
we wanna move forward.

01:20:51.750 --> 01:20:54.650
I'll continue to flush
out my version of this list

01:20:54.650 --> 01:20:59.400
and we can, with the next work session

01:20:59.400 --> 01:21:04.370
perhaps combine everything
and get a more concrete roadmap

01:21:04.370 --> 01:21:06.640
going forward.
<v ->That sounds good to me.</v>

01:21:06.640 --> 01:21:09.233
<v ->I love all these topics and
probably even a few more</v>

01:21:09.233 --> 01:21:11.910
that we can--
<v ->I think so.</v>

01:21:11.910 --> 01:21:13.700
I think they'll probably become apparent

01:21:13.700 --> 01:21:15.450
as the bills are signed

01:21:15.450 --> 01:21:18.813
and market participants
actively start to adjust to those.

01:21:21.200 --> 01:21:22.980
They'll be identified but we have more

01:21:22.980 --> 01:21:25.173
than enough buckets
to warp some work in.

01:21:30.237 --> 01:21:31.810
<v ->I was gonna get into
this later on item 15</v>

01:21:31.810 --> 01:21:34.460
but I'll go ahead and
throw it into this bucket.

01:21:34.460 --> 01:21:38.810
I'd like to include as a big
part of this, cyber security.

01:21:38.810 --> 01:21:41.870
That's obviously a hot topic right now

01:21:41.870 --> 01:21:43.120
but it's something that I've worked on,

01:21:43.120 --> 01:21:46.100
I worked on extensively at
the Water Development Board

01:21:46.100 --> 01:21:47.510
to the extent that its infrastructure

01:21:47.510 --> 01:21:49.460
is a very much a financial institution.

01:21:50.600 --> 01:21:54.640
That's a key concern and I
know it's gonna be a key concern

01:21:54.640 --> 01:21:59.000
for this agency, for ERCOT
and our market participants.

01:21:59.000 --> 01:22:02.370
I don't know if it takes
the form of a new project

01:22:02.370 --> 01:22:04.580
or working within an existing project

01:22:05.560 --> 01:22:09.050
but I think we need to
make a concentrated effort

01:22:09.050 --> 01:22:12.030
to evaluate that and implement

01:22:12.030 --> 01:22:13.913
the best possible practices we can.

01:22:14.820 --> 01:22:19.560
If you'd be willing as we move
through the next 30, 60 days,

01:22:19.560 --> 01:22:23.620
put your thoughts on paper
about what the key things are,

01:22:23.620 --> 01:22:25.610
the key areas of focus should be.

01:22:25.610 --> 01:22:27.930
I would really appreciate
your input on that.

01:22:27.930 --> 01:22:29.583
<v ->Absolutely, will do.</v>

01:22:30.700 --> 01:22:34.170
That also goes hand in
hand, Kenan with RTC

01:22:34.170 --> 01:22:35.810
when that was being envisioned,

01:22:35.810 --> 01:22:39.610
just how secure the other parameters

01:22:39.610 --> 01:22:41.410
that we need to integrate into that.

01:22:41.410 --> 01:22:43.750
I know it's being
discussed at other RTOs

01:22:43.750 --> 01:22:46.020
around the country,
too, just as everything

01:22:46.020 --> 01:22:50.690
becomes more integrated,
the security of those conditions.

01:22:53.140 --> 01:22:55.430
<v ->In the spirit of borrowing
other people's good ideas,</v>

01:22:55.430 --> 01:22:57.637
I know your engagement
with SBP and (indistinct).

01:22:58.710 --> 01:23:01.900
Feel free to note the best
practices other places--

01:23:01.900 --> 01:23:03.850
<v ->I'll bring back a
book report, yes, sir.</v>

01:23:03.850 --> 01:23:06.380
<v ->Bring back what you
think is most useful.</v>

01:23:06.380 --> 01:23:08.810
<v Kenan>Chairman, just real
quickly on the cyber issue.</v>

01:23:08.810 --> 01:23:11.460
If you think it'd be
beneficial to both of you,

01:23:11.460 --> 01:23:14.270
we have a cyber monitor
that we contract with.

01:23:14.270 --> 01:23:16.810
We can come give a
presentation on the work

01:23:16.810 --> 01:23:17.643
that they've been doing

01:23:17.643 --> 01:23:19.160
over the last couple of years as well.

01:23:19.160 --> 01:23:20.500
<v ->Yeah, we'll absolutely do that.</v>

01:23:20.500 --> 01:23:25.220
I don't know which work session it'll be

01:23:25.220 --> 01:23:27.650
most appropriate for but
we'll absolutely do that.

01:23:27.650 --> 01:23:28.530
Good idea, thank you.

01:23:28.530 --> 01:23:30.810
<v ->Cool.</v>
<v ->All right.</v>

01:23:30.810 --> 01:23:33.760
Anything else for these items?

01:23:33.760 --> 01:23:35.530
<v ->Nope.</v>
<v ->Okay, all right.</v>

01:23:35.530 --> 01:23:39.780
I think that'll get us
to 14, I just did 15.

01:23:39.780 --> 01:23:40.613
Anything on 14?

01:23:47.005 --> 01:23:48.148
<v ->I don't think so at this time,</v>

01:23:48.148 --> 01:23:51.230
I think I'll save that
for the next workshop.

01:23:51.230 --> 01:23:56.230
<v ->All right, at this point,
we're going to adjourn</v>

01:23:57.090 --> 01:23:58.610
for closed session.

01:23:58.610 --> 01:24:01.610
Having convened in a
duly notice open meeting,

01:24:01.610 --> 01:24:06.610
the Commission will now
at 10:59 AM on June 3rd,

01:24:07.950 --> 01:24:10.130
hold a closed session
pursuant to Chapter five

01:24:10.130 --> 01:24:14.470
on the Texas government
code, section 551.071, 551.074

01:24:14.470 --> 01:24:18.420
and 551.076.

01:24:18.420 --> 01:24:20.023
We are in recess.

01:24:30.480 --> 01:24:35.480
All right, closed session
concluded at 11:58 AM

01:24:37.610 --> 01:24:40.670
on June 3rd, 2021 and the
Commission will now resume

01:24:40.670 --> 01:24:41.900
its public meeting.

01:24:41.900 --> 01:24:43.470
No action will be taken
by the Commission

01:24:43.470 --> 01:24:45.770
regarding matters
discussed in closed session.

01:24:47.550 --> 01:24:49.650
At this point, having
no further business,

01:24:50.940 --> 01:24:52.750
this meeting of the
Public Utility Commission

01:24:52.750 --> 01:24:56.223
is hereby adjourned.
(gavel bangs)