WEBVTT 00:00:03.660 --> 00:00:08.660 Session was concluded at 12:12 PM on September 23rd, 00:00:08.967 --> 00:00:12.263 and the Commission will now- 2:12. 00:00:12.263 --> 00:00:13.096 2:12? 00:00:13.096 --> 00:00:14.249 Yeah. You said 12:12. 00:00:14.249 --> 00:00:17.483 Sorry, one of those days, appreciate it. 00:00:18.669 --> 00:00:21.850 12:12 on September 23rd, 2021. 00:00:21.850 --> 00:00:24.221 The Commission will now resume it's public meeting. 00:00:24.221 --> 00:00:27.750 Woody, I apologize about having recess 00:00:27.750 --> 00:00:30.052 with one slide left in your presentation. 00:00:30.052 --> 00:00:31.690 (meeting attendees laughing) 00:00:31.690 --> 00:00:34.060 But I'd already, already dropped the hammer. 00:00:34.060 --> 00:00:35.110 No problem. 00:00:36.510 --> 00:00:37.540 Carry, carry on, sir. 00:00:37.540 --> 00:00:41.670 All right so the last slide here 00:00:41.670 --> 00:00:44.443 talks about the consumer benefit test. 00:00:45.500 --> 00:00:50.500 So Senate Bill 1281, amended per Section 37.056 00:00:51.660 --> 00:00:53.180 to require consideration 00:00:53.180 --> 00:00:57.003 of estimated congestion cost savings for consumers. 00:00:57.970 --> 00:00:59.740 So that's a new requirement 00:00:59.740 --> 00:01:01.863 for economic-driven transmission projects. 00:01:04.100 --> 00:01:07.800 So we have tools in-house to be able to do that, 00:01:07.800 --> 00:01:12.800 do some sort of consumer benefit test. 00:01:12.980 --> 00:01:14.950 We have looked now at what we have, 00:01:14.950 --> 00:01:16.550 it's gonna take a little bit of updating. 00:01:16.550 --> 00:01:18.890 We have to update some of the data that we use 00:01:18.890 --> 00:01:20.190 to drive that kinda thing. 00:01:21.720 --> 00:01:26.120 And, so before we are able to implement that test, 00:01:26.120 --> 00:01:28.723 we're gonna need a little bit of guidance from you guys. 00:01:29.810 --> 00:01:33.343 So we've already started the update process in general, 00:01:34.328 --> 00:01:38.920 and then we will wait and before we complete it 00:01:38.920 --> 00:01:42.223 to get some policy guidance on exactly what it will entail. 00:01:44.230 --> 00:01:45.563 So no decisions today? 00:01:46.650 --> 00:01:47.483 Oh, good. 00:01:50.020 --> 00:01:51.820 Thank you from the peanut gallery. 00:01:53.460 --> 00:01:55.250 Yes we're, no decision needed today. 00:01:55.250 --> 00:01:56.270 Thank you for the update, 00:01:56.270 --> 00:01:58.512 any other questions or comments for? 00:01:58.512 --> 00:02:01.460 Yeah, I would just say that the reason 00:02:01.460 --> 00:02:02.860 Woody included this in the 00:02:02.860 --> 00:02:06.040 slide deck is based on our prior discussion on what to do 00:02:06.040 --> 00:02:08.940 with economics of the new consumer benefits test, 00:02:08.940 --> 00:02:10.310 given the fact that, 00:02:10.310 --> 00:02:12.850 ERCOT needs some more guidance, policy guidance from the 00:02:12.850 --> 00:02:15.080 Commission before they finish off their models. 00:02:15.080 --> 00:02:17.540 I think probably the most prudent course of action at this 00:02:17.540 --> 00:02:21.313 point is to continue down the path of having staff, 00:02:22.200 --> 00:02:24.720 has it on their roadmap for the beginning of the year, 00:02:24.720 --> 00:02:27.840 this next year to implement 1281. 00:02:27.840 --> 00:02:31.970 And so I think the probably the more cleaner pragmatic 00:02:31.970 --> 00:02:34.060 approach would be to just go ahead and open up the rule 00:02:34.060 --> 00:02:35.990 making process at the beginning of the year or first 00:02:35.990 --> 00:02:39.910 quarter you know winter and around then, 00:02:39.910 --> 00:02:41.730 and these discussions will happen and we can set a more 00:02:41.730 --> 00:02:43.221 definitive timeline then, 00:02:43.221 --> 00:02:45.550 and then that way we give ERCOT the policy guidance 00:02:45.550 --> 00:02:49.510 they need to implement their models and additional feedback 00:02:49.510 --> 00:02:50.930 we may need to be able to come to a 00:02:50.930 --> 00:02:52.487 policy decision at that time. 00:02:52.487 --> 00:02:53.500 And in the meantime, 00:02:53.500 --> 00:02:55.650 there are things that we can do to get ready for that. 00:02:55.650 --> 00:02:57.530 So their data, 00:02:57.530 --> 00:02:59.590 we need to have updated and certain fields 00:02:59.590 --> 00:03:00.500 we need filled out 00:03:00.500 --> 00:03:03.210 that will be true for any kind of consumer benefit to us. 00:03:03.210 --> 00:03:04.830 So we'll go ahead and we've already, 00:03:04.830 --> 00:03:06.970 actually started that process, so. 00:03:06.970 --> 00:03:07.803 Like since then, 00:03:07.803 --> 00:03:09.460 we also have plenty to do between 00:03:09.460 --> 00:03:11.250 now and the end of the year. 00:03:11.250 --> 00:03:14.070 So, kicking that off in the beginning, 00:03:14.070 --> 00:03:17.147 like early first quarter makes a lot of sense. 00:03:17.147 --> 00:03:17.980 All right. 00:03:17.980 --> 00:03:18.813 Thank you Woody. 00:03:18.813 --> 00:03:19.646 Thank you sir. 00:03:19.646 --> 00:03:20.479 Thanks Woody. 00:03:20.479 --> 00:03:21.940 Apologies again. 00:03:21.940 --> 00:03:24.763 And Kristi has a grid update for us. 00:03:27.870 --> 00:03:29.990 All right. Good afternoon, 00:03:29.990 --> 00:03:32.240 Kristi Hobbs vice-president of Corporate Strategy 00:03:32.240 --> 00:03:34.370 and PUC Relations for ERCOT. 00:03:34.370 --> 00:03:39.370 So very fitting that as we move into the first days of fall, 00:03:39.410 --> 00:03:41.843 that we're giving you our last summer recap. 00:03:43.250 --> 00:03:44.730 Looking back to last week, 00:03:44.730 --> 00:03:49.100 hurricane Nicholas really did impact the demand on the grid. 00:03:49.100 --> 00:03:50.200 As you can imagine, 00:03:50.200 --> 00:03:53.230 when it came ashore last Monday, continued lingering in 00:03:53.230 --> 00:03:54.694 the Houston area, 00:03:54.694 --> 00:03:58.230 there were some transmission outages and many distribution 00:03:58.230 --> 00:04:01.070 outages that were experienced due to the storm. 00:04:01.070 --> 00:04:01.903 And of course, 00:04:01.903 --> 00:04:05.203 demand was lower due to the rain in those coastal areas. 00:04:06.480 --> 00:04:09.640 Daily demands ranged anywhere last week from 00:04:09.640 --> 00:04:14.020 55,000 to a high of 67,000 at the end of the week. 00:04:14.020 --> 00:04:15.890 Renewable performance, 00:04:15.890 --> 00:04:19.890 we saw wind at 8,500 megawatts 00:04:19.890 --> 00:04:22.200 for the peak demand time on Monday. 00:04:22.200 --> 00:04:26.190 But then that remained below 5,000 for the rest of the week. 00:04:26.190 --> 00:04:29.572 Solar was around 6,000 megawatts at peak demand 00:04:29.572 --> 00:04:32.300 pretty much the entire week, except for Saturday, 00:04:32.300 --> 00:04:34.570 when it was a little bit lower. 00:04:34.570 --> 00:04:37.830 From a thermal generation outage perspective, 00:04:37.830 --> 00:04:40.613 the range that we saw throughout the week was in the 00:04:40.613 --> 00:04:43.990 7 to 9,000, megawatt range. 00:04:43.990 --> 00:04:47.000 I think maybe some units taking advantage of the lower 00:04:47.000 --> 00:04:49.470 demand to get work done. 00:04:49.470 --> 00:04:51.940 Good getting ready for winter. 00:04:51.940 --> 00:04:52.824 You know, 00:04:52.824 --> 00:04:57.010 would be a miss if we didn't recognize that we did have 00:04:57.010 --> 00:05:01.170 transmission issues because of the wind of the storm and, 00:05:01.170 --> 00:05:03.930 you know would give kudos to the, 00:05:03.930 --> 00:05:06.360 the TDSPs that reacted quickly, 00:05:06.360 --> 00:05:10.010 that the updates that I got out of the control room earlier 00:05:10.010 --> 00:05:11.910 this week was that from our perspective, 00:05:11.910 --> 00:05:14.510 all the transmission lines had been repaired 00:05:14.510 --> 00:05:15.703 and back in service. 00:05:17.200 --> 00:05:18.420 So far this week, 00:05:18.420 --> 00:05:21.600 Monday was definitely our highest date as we were still 00:05:21.600 --> 00:05:24.570 experiencing summer weather type conditions. 00:05:24.570 --> 00:05:29.540 We saw the peak demand on Monday at 71,930. 00:05:29.540 --> 00:05:31.040 With the front moving through the area, 00:05:31.040 --> 00:05:33.760 that dropped to mid 60s on Tuesday. 00:05:33.760 --> 00:05:37.270 And yesterday, our peak demand was only 48,000. 00:05:37.270 --> 00:05:42.270 So, definitely had an impact on the usage on the system. 00:05:43.740 --> 00:05:47.360 So far this week, wind Monday was 8,800, 00:05:47.360 --> 00:05:52.360 Tuesday was up to almost 18,000 of wind on the system, 00:05:54.860 --> 00:05:56.570 but that then dropped back down yesterday 00:05:56.570 --> 00:05:58.563 to just over 5,600. 00:05:59.560 --> 00:06:01.490 Solar started off the week, 00:06:01.490 --> 00:06:04.880 pretty normal at the 5,400 megawatt range, 00:06:04.880 --> 00:06:08.577 but then dropped to 2,600 on Tuesday. 00:06:08.577 --> 00:06:12.970 I guess likely with the front moving through and the impact. 00:06:12.970 --> 00:06:16.190 Wednesday was back up though to 6,800. 00:06:16.190 --> 00:06:17.023 And again, 00:06:17.023 --> 00:06:19.430 we've seen thermal outages beginning of this week, 00:06:19.430 --> 00:06:22.860 anywhere from the 7 to 11,000 megawatt range. 00:06:22.860 --> 00:06:24.083 So on solar, 00:06:25.040 --> 00:06:28.159 is our maximum production that we've observed 00:06:28.159 --> 00:06:33.159 after the latest fields have been energized. 00:06:34.620 --> 00:06:37.090 Is it around, I mean, is it right at 7,000? 00:06:37.090 --> 00:06:37.923 Yes. 00:06:37.923 --> 00:06:38.756 that we have seen produce? 00:06:38.756 --> 00:06:39.589 Yes. 00:06:39.589 --> 00:06:40.422 Okay Good to know 00:06:40.422 --> 00:06:42.920 How about installed capacity available for... 00:06:42.920 --> 00:06:44.510 Is that installed capacity? 00:06:44.510 --> 00:06:45.412 or Is that actually production? 00:06:45.412 --> 00:06:46.567 I mean that's available. 00:06:46.567 --> 00:06:50.130 Actually, installed capacity right now is 00:06:50.130 --> 00:06:53.050 just over 8,500. 00:06:53.050 --> 00:06:53.942 Yeah so, it's 00:06:53.942 --> 00:06:56.090 Total available 00:06:56.090 --> 00:06:57.123 Right. Yep. 00:06:57.123 --> 00:06:58.706 7,000. Good deal. 00:06:59.940 --> 00:07:02.510 Looking ahead the next week or the next seven days, 00:07:02.510 --> 00:07:04.240 as expected these cooler temperatures 00:07:04.240 --> 00:07:06.580 are going to be impacting the demand. 00:07:06.580 --> 00:07:09.633 We do expect sufficient generation, you know, 00:07:09.633 --> 00:07:12.060 barring any unforeseen outages or changes to the forecast, 00:07:12.060 --> 00:07:15.860 that we should be able to reliably serve the grid. 00:07:15.860 --> 00:07:19.860 We're looking at demand today at just under 53,000 megawatts 00:07:19.860 --> 00:07:22.510 and continuing really for the next seven days, 00:07:22.510 --> 00:07:25.071 in that mid 50,000 megawatt range 00:07:25.071 --> 00:07:27.170 of the renewable performance. 00:07:27.170 --> 00:07:29.740 Our forecasters showing for wind anywhere in the 00:07:29.740 --> 00:07:33.500 4 to now 9,000 megawatt range in the next seven days. 00:07:33.500 --> 00:07:38.500 And solar in 4 1/2 to just under 7,000, 00:07:39.530 --> 00:07:41.173 for performance expected. 00:07:42.260 --> 00:07:43.330 As I close out, 00:07:43.330 --> 00:07:45.790 again this is the last periodic summer update. 00:07:45.790 --> 00:07:49.400 We will be back at your October 7th open meeting to give you 00:07:49.400 --> 00:07:51.410 a little bit more of a formal look back, 00:07:51.410 --> 00:07:52.640 not only on the grid conditions, 00:07:52.640 --> 00:07:55.160 but on the market performance of the summer. 00:07:55.160 --> 00:07:58.350 And then Woody would also be here to share information 00:07:58.350 --> 00:08:01.060 with you all as as you mentioned chairman, 00:08:01.060 --> 00:08:02.660 as we move into the shoulder months, 00:08:02.660 --> 00:08:05.590 it's an important time for generation units to be able to 00:08:05.590 --> 00:08:09.390 take the outages they need to prepare for winter. 00:08:09.390 --> 00:08:11.720 And so he'll give you an update kind of what we're seeing 00:08:11.720 --> 00:08:14.480 from a seasonal perspective on outages. 00:08:14.480 --> 00:08:15.313 Good deal. 00:08:15.313 --> 00:08:16.399 Thank you very much Kristi. 00:08:16.399 --> 00:08:17.232 All right. 00:08:17.232 --> 00:08:18.239 Appreciate you all hanging with us. 00:08:18.239 --> 00:08:19.906 Thank you. 00:08:21.969 --> 00:08:22.910 All right. 00:08:22.910 --> 00:08:26.840 That will conclude item 20 and get us to item 21. 00:08:26.840 --> 00:08:29.901 I don't have anything on 21, do y'all? 00:08:29.901 --> 00:08:31.337 No. 00:08:31.337 --> 00:08:32.180 If not that'll bring us to Item number 22. 00:08:32.180 --> 00:08:34.630 Mr Journeay could you lay this out for us please? 00:08:36.550 --> 00:08:39.660 Item 22, is Docket 49351, 00:08:39.660 --> 00:08:41.940 It's a ratepayers appeal of the 00:08:41.940 --> 00:08:44.923 Bear Creek Special Utility District to change of rates. 00:08:46.210 --> 00:08:47.370 The Commission adopted 00:08:47.370 --> 00:08:49.911 in part and modified in part a PFD 00:08:49.911 --> 00:08:51.339 at a previous open meeting. 00:08:51.339 --> 00:08:54.888 Before you is a draft order memorializing that decision. 00:08:54.888 --> 00:08:56.563 So. 00:08:58.400 --> 00:08:59.300 Just heads up, 00:08:59.300 --> 00:09:02.090 I'm going to abstain from taking a vote on this. 00:09:02.090 --> 00:09:04.370 As you all had made this decision prior, 00:09:04.370 --> 00:09:07.480 I'm going to let you all continue down this road. 00:09:07.480 --> 00:09:10.420 That, I can say that now for this docket as well 00:09:10.420 --> 00:09:13.191 as docket 50605. 00:09:13.191 --> 00:09:15.498 Thank you Jimmy. 00:09:15.498 --> 00:09:16.331 Okay. 00:09:16.331 --> 00:09:17.164 This seems pretty straight forward. 00:09:17.164 --> 00:09:19.263 Good job memorializing what we did previously. 00:09:20.960 --> 00:09:22.090 Is there motion to issue the order. 00:09:22.090 --> 00:09:22.923 So moved. 00:09:22.923 --> 00:09:23.756 Second. 00:09:23.756 --> 00:09:24.589 All in favor say aye. 00:09:24.589 --> 00:09:25.428 Aye. 00:09:25.428 --> 00:09:26.261 Aye. 00:09:26.261 --> 00:09:27.094 Motion passes. 00:09:27.094 --> 00:09:31.200 Next item is number 23, Mr. Journeay. 00:09:31.200 --> 00:09:34.110 Item 23 is the application of Corix Utilities 00:09:34.110 --> 00:09:35.840 to change rate. 00:09:35.840 --> 00:09:38.040 Proposed order was filed on September 3rd, 00:09:38.040 --> 00:09:40.630 no exceptions or corrections were found. 00:09:40.630 --> 00:09:44.470 I have a memo with proposed changes to the proposed order. 00:09:44.470 --> 00:09:47.560 I also issued a memo to request of an office, 00:09:47.560 --> 00:09:50.103 asking the parties to be here to address issues. 00:09:51.870 --> 00:09:52.892 Sir, go ahead. 00:09:52.892 --> 00:09:54.868 Thank you, Stephen. 00:09:54.868 --> 00:09:59.089 And if representatives from Corix could approach, 00:09:59.089 --> 00:10:01.540 I just had some questions. 00:10:01.540 --> 00:10:05.990 I appreciate you making yourselves available just to dig 00:10:05.990 --> 00:10:10.228 into a couple components of the application. 00:10:10.228 --> 00:10:11.800 As they get settled. 00:10:11.800 --> 00:10:13.850 I just wanted to mention that I am recusing myself 00:10:13.850 --> 00:10:14.683 on this case, 00:10:14.683 --> 00:10:16.800 as I did participate in the cast when I was at OPUC. 00:10:16.800 --> 00:10:17.633 Okay. 00:10:21.100 --> 00:10:23.410 Um. Sorry Mr. Chairman. 00:10:23.410 --> 00:10:25.080 Can you state your names and who you are 00:10:25.080 --> 00:10:26.890 for the record please. 00:10:26.890 --> 00:10:28.661 Thank you. My name's Evan. 00:10:28.661 --> 00:10:29.494 (coughing) 00:10:29.494 --> 00:10:30.840 Excuse me. My name's Evan Johnson. 00:10:30.840 --> 00:10:33.440 I'm here on behalf of Corix Utilities Texas. 00:10:33.440 --> 00:10:34.510 With me is Darrin Barker, 00:10:34.510 --> 00:10:37.070 he's the president of Corix Utilities Texas. 00:10:37.070 --> 00:10:38.930 We also have our witness in this case, 00:10:38.930 --> 00:10:40.380 Dr Bruce Fairchild in the room, 00:10:40.380 --> 00:10:43.180 to the extent the questions you have, exceed our expertise. 00:10:43.180 --> 00:10:44.750 Thank you so much, 00:10:44.750 --> 00:10:46.440 Mr. Johnson and Mr. Barker, 00:10:46.440 --> 00:10:48.040 and thank you for being present. 00:10:48.970 --> 00:10:53.970 My questions relate to the computation of ADFIT, 00:10:56.020 --> 00:11:00.430 the Federal Income Tax computation. 00:11:00.430 --> 00:11:05.970 And, so, staff and I, 00:11:05.970 --> 00:11:07.500 as we were reading through the application, 00:11:07.500 --> 00:11:09.600 were just trying to make the numbers work out in our own 00:11:09.600 --> 00:11:12.640 mind and how that would be processed over time. 00:11:12.640 --> 00:11:17.640 And, as per your filing, it all is baked into Exhibit F. 00:11:19.368 --> 00:11:22.800 And if you could, 00:11:22.800 --> 00:11:27.718 could you walk me through how those numbers work out and, 00:11:27.718 --> 00:11:32.380 where we're headed is the way we read it is that this 00:11:32.380 --> 00:11:37.380 would be accounted for over an 18 year period. 00:11:37.530 --> 00:11:39.233 Is that, is this, is that right? 00:11:40.118 --> 00:11:41.770 Approximately 18 years. 00:11:41.770 --> 00:11:43.340 18 And a half? Okay 00:11:45.450 --> 00:11:46.513 Okay. So. 00:11:48.670 --> 00:11:52.697 Why the 18 years because that's a long time. 00:11:52.697 --> 00:11:57.270 Five years has been what's used in other cases. 00:11:57.270 --> 00:11:59.180 Can you explain that sir? 00:11:59.180 --> 00:12:00.240 I think I can. 00:12:00.240 --> 00:12:04.140 And if my answer is not deep enough in the weeds, 00:12:04.140 --> 00:12:05.956 then Dr. Fairchild can come in 00:12:05.956 --> 00:12:06.789 Sure. 00:12:06.789 --> 00:12:07.640 and help explain it as well. 00:12:07.640 --> 00:12:09.200 But what's at issue here is, you know, 00:12:09.200 --> 00:12:12.400 we've agreed on an excess deferred federal income tax 00:12:12.400 --> 00:12:15.150 balance that we are going to return to customers. 00:12:15.150 --> 00:12:16.360 Within that balance, 00:12:16.360 --> 00:12:21.360 there's essentially two buckets of deferred tax assets 00:12:21.370 --> 00:12:23.560 that we are returning back over time. 00:12:23.560 --> 00:12:25.760 One of those buckets are related to accelerated 00:12:25.760 --> 00:12:26.593 depreciation. 00:12:26.593 --> 00:12:29.550 The company has taken in the past on certain ones of its 00:12:29.550 --> 00:12:30.570 physical assets. 00:12:30.570 --> 00:12:31.670 Okay. 00:12:31.670 --> 00:12:34.250 That's the one that is really driving a lot of the timing 00:12:34.250 --> 00:12:35.160 of this. 00:12:35.160 --> 00:12:38.270 The second bucket is essentially all the other deferred 00:12:38.270 --> 00:12:41.480 taxes that are going to be returned to customers. 00:12:41.480 --> 00:12:42.486 In the first bucket, 00:12:42.486 --> 00:12:46.990 under the federal tax code and a number of different IRS 00:12:46.990 --> 00:12:48.960 private letter rulings, 00:12:48.960 --> 00:12:53.880 the IRS essentially directs us to normalize our refund of 00:12:53.880 --> 00:12:55.430 these taxes, 00:12:55.430 --> 00:12:58.270 these ones related to accelerated appreciation, 00:12:58.270 --> 00:13:02.230 rateably over the service life of the physical assets 00:13:02.230 --> 00:13:05.090 that the accelerated depreciation was taken on. 00:13:05.090 --> 00:13:07.663 So what we did is we utilized the, 00:13:08.820 --> 00:13:13.061 the remaining life for those assets as calculated by our 00:13:13.061 --> 00:13:16.193 expert depreciation witness Dane Watson. 00:13:17.170 --> 00:13:21.250 We utilized the reversed South Georgia method, 00:13:21.250 --> 00:13:25.380 which requires us to use the average remaining life of our 00:13:25.380 --> 00:13:26.660 entire plant. 00:13:26.660 --> 00:13:29.940 You can find that on pages 11 and 12 of his 00:13:29.940 --> 00:13:31.000 rebuttal testimony, 00:13:31.000 --> 00:13:33.310 and you can also go through his depreciation schedules and 00:13:33.310 --> 00:13:34.880 it lays it out there. 00:13:34.880 --> 00:13:39.840 If we don't return to customers over that period of time, 00:13:39.840 --> 00:13:42.750 that's matched to the life of the assets, 00:13:42.750 --> 00:13:46.000 the IRS considers that a normalization violation. 00:13:46.000 --> 00:13:48.630 And if we trigger a normalization violation, 00:13:48.630 --> 00:13:51.410 it's possible the IRS could come in and say, 00:13:51.410 --> 00:13:53.420 you're no longer eligible to take 00:13:53.420 --> 00:13:55.339 accelerated depreciation going forward, 00:13:55.339 --> 00:13:57.680 which obviously would be a huge 00:13:57.680 --> 00:14:00.737 detriment to our customers and ourselves. 00:14:00.737 --> 00:14:03.400 The other bucket here, the second bucket, 00:14:03.400 --> 00:14:07.420 we adopted staff's proposal of five years. 00:14:07.420 --> 00:14:10.040 You have the discretion to require us to return that over 00:14:10.040 --> 00:14:11.260 any period of time you like, 00:14:11.260 --> 00:14:15.350 but we adopted staff's approach, which is consistent with, 00:14:15.350 --> 00:14:17.280 with what this Commission approved in the center point rate 00:14:17.280 --> 00:14:18.730 case, a five-year period. 00:14:18.730 --> 00:14:20.790 Okay. Yeah, yeah. That's right. 00:14:20.790 --> 00:14:24.850 Okay, and you have approved settlements adopting this same 00:14:24.850 --> 00:14:28.860 approach in CenterPoint's most recent rate case 00:14:28.860 --> 00:14:30.260 and AEPs I think. 00:14:30.260 --> 00:14:34.320 So which aligns with the IRS rule that, 00:14:34.320 --> 00:14:35.900 that you're trying to conform to, 00:14:35.900 --> 00:14:38.450 which is over the life of the asset. 00:14:38.450 --> 00:14:39.970 Right, so if you think about it, you know, 00:14:39.970 --> 00:14:40.820 what you're trying to do is 00:14:40.820 --> 00:14:44.320 return the tax benefits to each generation of customers 00:14:44.320 --> 00:14:46.570 who's taking advantage or using the assets, 00:14:46.570 --> 00:14:47.510 paying for the assets. 00:14:47.510 --> 00:14:48.750 So not just customers today 00:14:48.750 --> 00:14:51.670 get the tax benefit, customers over the entire life of the 00:14:51.670 --> 00:14:52.560 asset get it. 00:14:52.560 --> 00:14:55.833 Okay. And then second question as it relates to this, 00:14:56.920 --> 00:14:58.690 so why is this being done via 00:14:58.690 --> 00:15:01.223 the revenue requirement rather than the, 00:15:02.150 --> 00:15:05.040 just a direct refund to customers as per the file. 00:15:07.660 --> 00:15:08.750 You know, I'm sorry to say, 00:15:08.750 --> 00:15:12.154 I can't recall exactly why we structured it this way. 00:15:12.154 --> 00:15:12.987 Okay. 00:15:12.987 --> 00:15:14.820 I think it was just easier to capture it that way, 00:15:14.820 --> 00:15:16.450 but what the idea here is 00:15:16.450 --> 00:15:17.960 we've reduced our revenue requirement 00:15:17.960 --> 00:15:20.120 by that amortization amount, 00:15:20.120 --> 00:15:21.880 and we will keep tracking it on our books. 00:15:21.880 --> 00:15:24.532 So to the extent we have subsequent rate cases, 00:15:24.532 --> 00:15:27.420 it will stay on our books for that full 18 years until we 00:15:27.420 --> 00:15:29.020 have captured it through rates. 00:15:29.020 --> 00:15:29.853 Okay. 00:15:30.778 --> 00:15:32.860 I mean is there a problem, 00:15:32.860 --> 00:15:35.330 if you did direct refunds to customers, 00:15:35.330 --> 00:15:36.670 just for our tracking. 00:15:36.670 --> 00:15:38.630 We're trying to make apples to apples here, 00:15:38.630 --> 00:15:40.933 as we sort of go through these cases. 00:15:41.860 --> 00:15:43.310 I have, from an operation side, 00:15:43.310 --> 00:15:44.510 and maybe you can respond to that. 00:15:44.510 --> 00:15:45.740 I think it's more of cumbersome, 00:15:45.740 --> 00:15:49.209 but if you want to speak to what the process would be. 00:15:49.209 --> 00:15:50.770 This is Darrin Parker. 00:15:50.770 --> 00:15:51.603 Yes sir. 00:15:51.603 --> 00:15:54.500 Is the question direct refunds over the 00:15:54.500 --> 00:15:55.690 remaining life of the asset? 00:15:55.690 --> 00:15:56.720 Yes sir. 00:15:56.720 --> 00:15:58.440 So that would involve basically a separate 00:15:58.440 --> 00:16:02.810 line item on the bill tracking that separately I guess. 00:16:02.810 --> 00:16:04.630 Okay. 00:16:04.630 --> 00:16:06.620 Administratively it's harder to do with 00:16:06.620 --> 00:16:09.330 the billing system, to add more line items on a bill. 00:16:09.330 --> 00:16:12.930 And sometimes I worry that we get so many line items that 00:16:12.930 --> 00:16:15.810 the bill gets a little bit confusing for our customers. 00:16:15.810 --> 00:16:16.643 Okay. 00:16:16.643 --> 00:16:17.476 It's doable. 00:16:17.476 --> 00:16:19.163 I'll say that it's doable. 00:16:19.163 --> 00:16:22.300 I just have to look at the amounts and talk with our 00:16:22.300 --> 00:16:25.330 billing department and see what it takes to code that in. 00:16:25.330 --> 00:16:26.520 Okay. 00:16:26.520 --> 00:16:29.360 And, you know we have a lot of different service areas, 00:16:29.360 --> 00:16:32.280 rate regions, customer classes, so I think the reason 00:16:32.280 --> 00:16:33.440 it's cumbersome is 'cause it has to 00:16:33.440 --> 00:16:34.970 be calculated for everyone. 00:16:34.970 --> 00:16:38.000 Yeah and since you're doing this consolidated filing. 00:16:38.000 --> 00:16:38.882 Okay. 00:16:38.882 --> 00:16:40.100 Right. 00:16:40.100 --> 00:16:42.050 Those were my questions. Thank you sir. 00:16:42.050 --> 00:16:44.033 Those were eerily similar to mine. 00:16:45.318 --> 00:16:46.862 And if it's an IRS requirement then that, 00:16:46.862 --> 00:16:47.850 Yeah. 00:16:47.850 --> 00:16:49.970 seems pretty straightforward. 00:16:49.970 --> 00:16:51.390 I just want to make sure it's consistent, 00:16:51.390 --> 00:16:52.780 which it sounds like it is. 00:16:52.780 --> 00:16:54.238 Otherwise the settlement seems. 00:16:54.238 --> 00:16:56.150 Sounds like it's the federal government 00:16:56.150 --> 00:16:57.220 here to help right? 00:16:57.220 --> 00:16:58.053 Yeah. 00:16:58.053 --> 00:16:58.997 As usual. 00:16:58.997 --> 00:17:00.453 Can't do it in five, but 18 will work. 00:17:01.536 --> 00:17:06.120 In terms of in this consolidated, you know, 00:17:06.120 --> 00:17:10.810 mechanism, is what I'm, we're all trying to get 00:17:10.810 --> 00:17:11.820 our minds wrapped around. 00:17:11.820 --> 00:17:15.140 So I just want to make sure if we proceed down certain roads 00:17:15.140 --> 00:17:16.750 that we try to stick with it, 00:17:16.750 --> 00:17:21.113 and yeah, I mean, I'm okay. 00:17:23.330 --> 00:17:27.140 So with that, I'll wake up again, and uh, 00:17:27.140 --> 00:17:28.793 Is it... go ahead. 00:17:29.911 --> 00:17:31.260 Let me get to the right one. 00:17:31.260 --> 00:17:32.733 So I would move to approve. 00:17:32.733 --> 00:17:35.200 Approve the proposed order, as amended. 00:17:35.200 --> 00:17:36.590 Second. 00:17:36.590 --> 00:17:37.423 Yes approved. 00:17:37.423 --> 00:17:39.100 Motion and a second, all in favor say aye, 00:17:39.100 --> 00:17:39.933 Aye. 00:17:39.933 --> 00:17:40.766 Aye. 00:17:40.766 --> 00:17:41.820 Motion passes. 00:17:41.820 --> 00:17:43.486 Thank you gentlemen, Thank you 00:17:43.486 --> 00:17:44.889 for being here. 00:17:47.060 --> 00:17:50.550 Brings us to item 24, Mr. Journeay. 00:17:50.550 --> 00:17:52.870 24 is docket 50605. 00:17:52.870 --> 00:17:55.040 It's the petition for an order appointing the temporary 00:17:55.040 --> 00:17:56.420 manager to Blue Cereus. 00:17:56.420 --> 00:17:58.462 The Commission previously entered an order 00:17:58.462 --> 00:18:00.120 that allowed Lynn Sherman, 00:18:00.120 --> 00:18:03.623 the temporary manager to end his management. 00:18:04.810 --> 00:18:06.663 Before you is a motion for rehearing. 00:18:07.740 --> 00:18:08.590 Thank you, sir. 00:18:09.718 --> 00:18:11.373 Short version is, 00:18:13.040 --> 00:18:16.449 not a ratemaking preceding and we do have another 00:18:16.449 --> 00:18:20.660 pending ratemaking preceding coming up 00:18:20.660 --> 00:18:21.941 related to this case 00:18:21.941 --> 00:18:25.190 where I think this should probably be handled, 00:18:25.190 --> 00:18:27.510 could be handled more smoothly. 00:18:27.510 --> 00:18:30.060 I agree that, yep. 00:18:30.060 --> 00:18:31.863 I would deny the motion for regroup. 00:18:34.070 --> 00:18:35.440 Agreed. 00:18:35.440 --> 00:18:38.950 Alright, is there a motion to deny the motion? 00:18:38.950 --> 00:18:40.230 So moved. 00:18:40.230 --> 00:18:41.063 Second, 00:18:41.063 --> 00:18:41.896 All in favor, say aye. 00:18:41.896 --> 00:18:42.729 Aye. 00:18:42.729 --> 00:18:43.724 Aye. Motion passes. 00:18:44.870 --> 00:18:49.323 25 was consented, that brings us to item number 26. 00:18:50.646 --> 00:18:51.479 Mr. Journeay. 00:18:51.479 --> 00:18:53.973 Item 26 is docket 52125. 00:18:53.973 --> 00:18:56.140 It's the complainant of Mary Haywood against 00:18:56.140 --> 00:18:58.850 New Progress Water Supply Corporation. 00:18:58.850 --> 00:19:03.460 A proposal for decision was issued on July 22nd, 00:19:03.460 --> 00:19:05.490 that would deny the complaint. 00:19:05.490 --> 00:19:08.423 I have a memo with proposed changes to the PFD. 00:19:09.540 --> 00:19:10.373 Thank you, sir. 00:19:10.373 --> 00:19:13.510 Seems straight forward, if you want to follow through 00:19:13.510 --> 00:19:15.490 the complaint, you gotta show up and you gotta be called 00:19:15.490 --> 00:19:16.323 to show that you qualified. 00:19:16.323 --> 00:19:17.663 To serve. 00:19:19.650 --> 00:19:21.060 Any other thoughts on that? 00:19:21.060 --> 00:19:24.070 Or is there a motion to adopt the proposal as modified, 00:19:24.070 --> 00:19:27.050 proposal for decision as modified by Commission council. 00:19:27.050 --> 00:19:27.883 So moved. 00:19:27.883 --> 00:19:28.716 Second. 00:19:28.716 --> 00:19:29.549 all in favor say aye. 00:19:29.549 --> 00:19:30.477 Aye. 00:19:30.477 --> 00:19:31.310 Aye. 00:19:31.310 --> 00:19:32.143 Aye. 00:19:32.143 --> 00:19:35.480 Motion passes. We're not taking up 27 today. 00:19:35.480 --> 00:19:39.745 I don't have anything for item 28 through 33. 00:19:39.745 --> 00:19:40.820 Y'all? 00:19:40.820 --> 00:19:41.980 No sir. 00:19:41.980 --> 00:19:42.813 Nope. 00:19:42.813 --> 00:19:44.060 All right. 00:19:44.060 --> 00:19:47.970 Do we have exec on 34? 00:19:47.970 --> 00:19:52.480 We have staff here to discuss water critical load 00:19:52.480 --> 00:19:53.313 requirements. 00:19:55.000 --> 00:19:57.350 Yes. So thank you chairman, Commissioners, 00:19:57.350 --> 00:20:00.930 just a couple of updates, quickly. 00:20:00.930 --> 00:20:04.050 We talked last time about the work of our mapping committee 00:20:04.050 --> 00:20:07.570 and I committed to you all that we would find a way to make 00:20:07.570 --> 00:20:08.800 the work of that committee public. 00:20:08.800 --> 00:20:13.800 So what we've done is we've opened project 52404, 00:20:13.810 --> 00:20:17.260 and that is the project that we will warehouse all of the 00:20:17.260 --> 00:20:20.716 project team updates and all of the meeting minutes from our 00:20:20.716 --> 00:20:22.550 monthly meetings that we're having. 00:20:22.550 --> 00:20:25.110 So that's where the public and interested stakeholders can 00:20:25.110 --> 00:20:27.010 find the activities of that committee. 00:20:27.993 --> 00:20:31.050 Thank you. Transparency's always important. 00:20:31.050 --> 00:20:31.883 Yes, sir. 00:20:31.883 --> 00:20:34.870 Secondly, we've started our communications with 00:20:34.870 --> 00:20:36.407 our sunset review team. 00:20:36.407 --> 00:20:39.950 Very preliminary discussions at this point, 00:20:39.950 --> 00:20:43.490 but we have been told they will be on site in April of 2022 00:20:43.490 --> 00:20:46.130 to begin our intro conference. 00:20:46.130 --> 00:20:47.770 So just want to give y'all an update that that's 00:20:47.770 --> 00:20:50.020 when that work will really start. 00:20:50.020 --> 00:20:51.607 Good deal. 00:20:51.607 --> 00:20:52.440 And then two updates from 00:20:52.440 --> 00:20:53.480 Senate bill three implementation. 00:20:53.480 --> 00:20:57.840 The first is we were working with ERCOT on conducting a load 00:20:57.840 --> 00:20:58.760 shed exercise. 00:20:58.760 --> 00:21:01.680 So the bill requires that they conduct a summer and winter 00:21:01.680 --> 00:21:04.240 load shed exercise and now that we've entered the fall, 00:21:04.240 --> 00:21:06.460 it's time that we really start get going on that. 00:21:06.460 --> 00:21:09.520 So I've talked to Kristi and we're going to get working on 00:21:09.520 --> 00:21:12.060 that in the next week to get something solidified so we can 00:21:12.060 --> 00:21:13.450 make sure that we get that done and 00:21:13.450 --> 00:21:15.720 meet that requirement in Senate bill three. 00:21:15.720 --> 00:21:16.850 And the second is we, you know, 00:21:16.850 --> 00:21:18.870 most of the discussion around Senate bill three has been 00:21:18.870 --> 00:21:20.480 around electricity. 00:21:20.480 --> 00:21:22.830 There's also components about water. 00:21:22.830 --> 00:21:25.780 One of them has a deadline, we have a deadline of 00:21:25.780 --> 00:21:28.594 November 1st for water utilities that 00:21:28.594 --> 00:21:32.090 want to be deemed, designated as critical loads. 00:21:32.090 --> 00:21:34.260 They have to submit certain information to the Commission, 00:21:34.260 --> 00:21:36.750 to their electric utility and their retail electric provider 00:21:36.750 --> 00:21:38.100 by November 1st. 00:21:38.100 --> 00:21:39.830 So I just wanted to put everyone at notice that 00:21:39.830 --> 00:21:41.660 that's in there, remind everybody, 00:21:41.660 --> 00:21:43.660 and to ask the utilities and the reps that 00:21:43.660 --> 00:21:45.940 if those water utilities have any questions to, 00:21:45.940 --> 00:21:48.390 you know work with them and help hammer that out. 00:21:50.190 --> 00:21:53.585 Good note and want to make sure we alert, 00:21:53.585 --> 00:21:57.431 the water utilities hear us loud and clear. 00:21:57.431 --> 00:21:58.264 Yes sir. 00:21:58.264 --> 00:22:00.760 that please get on top of that before the deadline 00:22:00.760 --> 00:22:01.593 Yes sir. 00:22:01.593 --> 00:22:04.620 All right, any questions or comments for Thomas? 00:22:04.620 --> 00:22:05.660 No sir. 00:22:05.660 --> 00:22:07.010 All right, appreciate it. 00:22:08.056 --> 00:22:10.460 That brings us to item 35. 00:22:10.460 --> 00:22:13.894 I don't have anything for 35 or 36, do y'all? 00:22:13.894 --> 00:22:14.727 No. 00:22:14.727 --> 00:22:15.560 No sir. 00:22:15.560 --> 00:22:16.393 No. 00:22:16.393 --> 00:22:18.410 All right, having already taken care of all our business 00:22:18.410 --> 00:22:21.420 in closed session we have no further public business. 00:22:21.420 --> 00:22:24.540 So this meeting of the Public Utilities Commission of Texas 00:22:24.540 --> 00:22:25.923 is hereby adjourn. 00:22:25.923 --> 00:22:27.171 (gavel hitting wood)