WEBVTT 00:00:09.377 --> 00:00:11.877 (gavel bangs) 00:00:13.476 --> 00:00:14.309 Good morning. 00:00:14.309 --> 00:00:15.530 This meeting of the Public Utility Commission of Texas 00:00:15.530 --> 00:00:17.040 will come to order to consider matters 00:00:17.040 --> 00:00:17.873 that have been duly posted 00:00:17.873 --> 00:00:19.490 with the Secretary of State of Texas 00:00:19.490 --> 00:00:22.050 for October 7th, 2021. 00:00:22.050 --> 00:00:23.982 For the record my name is Peter Lake 00:00:23.982 --> 00:00:24.815 and with me today are Will McAdams, 00:00:24.815 --> 00:00:27.460 Lori Cobos and Jimmy Glotfelty. 00:00:27.460 --> 00:00:28.293 Mr. Journeay, 00:00:28.293 --> 00:00:32.830 could you please walk us through today's Consent Agenda? 00:00:32.830 --> 00:00:33.950 Good morning, Commissioners. 00:00:33.950 --> 00:00:36.030 By individual ballot the following items 00:00:36.030 --> 00:00:37.940 were placed on your Consent Agenda. 00:00:37.940 --> 00:00:42.940 Six, seven, 22, 23, 25, 30, and 31. 00:00:45.130 --> 00:00:46.810 Is there a motion to approve the items 00:00:46.810 --> 00:00:48.070 just described by Mr.Journeay? 00:00:48.070 --> 00:00:49.210 So moved. 00:00:49.210 --> 00:00:50.043 Second. 00:00:50.043 --> 00:00:50.876 All in favor, say aye. 00:00:50.876 --> 00:00:51.840 Aye. 00:00:51.840 --> 00:00:53.410 Motion passes. 00:00:53.410 --> 00:00:56.480 This time we'll open the floor for public comment. 00:00:56.480 --> 00:00:58.790 All comments related to a specific agenda item 00:00:58.790 --> 00:01:00.830 will be heard when that item is taken up. 00:01:00.830 --> 00:01:03.580 This public comment period is for general comments. 00:01:03.580 --> 00:01:05.360 Speakers will be limited to three minutes each. 00:01:05.360 --> 00:01:09.040 Do we have anyone from the public signed up to speak? 00:01:09.040 --> 00:01:10.840 No one signed up on our list, sir. 00:01:11.750 --> 00:01:12.830 Thank you, Mr.Journeay. 00:01:12.830 --> 00:01:14.650 Public comment is now closed. 00:01:14.650 --> 00:01:17.463 We will not be taking up item 14 today. 00:01:18.800 --> 00:01:19.960 And with that, we will start 00:01:19.960 --> 00:01:23.840 with agenda item number one, please. 00:01:23.840 --> 00:01:25.340 Item one is docket 5 1 2 1 5 00:01:26.183 --> 00:01:27.630 it's the application of Entergy 00:01:27.630 --> 00:01:31.493 to amended it's CCN for a solar facility in Liberty County. 00:01:33.060 --> 00:01:35.910 The Commission considered a proposal for decision 00:01:35.910 --> 00:01:38.663 at the September 30th open meeting. 00:01:40.170 --> 00:01:41.830 After reading the transcript, 00:01:41.830 --> 00:01:43.490 we decided to bring this back to you 00:01:43.490 --> 00:01:46.605 because we were unsure exactly what it was 00:01:46.605 --> 00:01:48.740 the Commission wanted to do. 00:01:48.740 --> 00:01:51.786 Apologies for the lack of clarity from the dais. 00:01:51.786 --> 00:01:57.704 I know, I think we have a sense of, 00:01:57.704 --> 00:01:58.930 I suspect we have a sense of where we want to go, 00:01:58.930 --> 00:02:01.872 but just the logistics of conveying that. 00:02:01.872 --> 00:02:03.923 No order has been issued yet, 00:02:04.770 --> 00:02:07.523 but let's go ahead and clear up the issue. 00:02:08.940 --> 00:02:10.610 I know there's a conversation about 00:02:10.610 --> 00:02:15.170 if this was the right project to serve that load. 00:02:15.170 --> 00:02:19.710 If other mechanisms have been considered, 00:02:19.710 --> 00:02:23.800 there's an issue of the structuring of the proposed deal 00:02:23.800 --> 00:02:26.450 and an issue of what's confidential 00:02:26.450 --> 00:02:28.470 and what's not confidential. 00:02:28.470 --> 00:02:29.303 Thoughts, or? 00:02:30.250 --> 00:02:31.083 I'm recused. 00:02:31.083 --> 00:02:31.916 Oh. Yeah. 00:02:33.062 --> 00:02:34.230 So, anything I think it was 00:02:34.230 --> 00:02:35.393 Happy to lead off. 00:02:36.340 --> 00:02:40.210 So as I reviewed the, well put, Mr. Chairman, 00:02:40.210 --> 00:02:41.690 as I reviewed this, 00:02:41.690 --> 00:02:44.653 as you condensed down the issues, 00:02:45.940 --> 00:02:48.970 the heart of it is the benefit test 00:02:48.970 --> 00:02:53.680 for the consumers within the Entergy service territory. 00:02:53.680 --> 00:02:54.711 And it gets down to 00:02:54.711 --> 00:02:59.711 what benefit metrics are baked into that evaluation. 00:03:00.260 --> 00:03:03.830 And that's what many of the arguments were about 00:03:03.830 --> 00:03:05.283 before the ALJ, 00:03:07.660 --> 00:03:11.480 but still it remains that the net benefit 00:03:11.480 --> 00:03:16.077 as computed by the ALJ was 24 million under 00:03:17.630 --> 00:03:22.540 the Entergy model that they're proposing for approval 00:03:22.540 --> 00:03:24.840 versus under a PPA model, 00:03:24.840 --> 00:03:28.460 which would be 72 million benefits, 00:03:28.460 --> 00:03:31.840 dollars in benefit to the consumer base. 00:03:31.840 --> 00:03:34.820 So as I looked at this, 00:03:34.820 --> 00:03:37.160 and that was the posture I was in 00:03:37.160 --> 00:03:40.550 going into the last open meeting was, 00:03:40.550 --> 00:03:42.740 was agreeing with the PFD 00:03:44.361 --> 00:03:48.837 and that we should reject that and approve the PFD. 00:03:50.540 --> 00:03:52.580 But again, if we want to drill down 00:03:52.580 --> 00:03:56.533 on the specifics of how that net benefit is computed, 00:03:57.390 --> 00:03:59.000 is that where you were leaning 00:03:59.000 --> 00:04:01.003 in terms of more information? 00:04:02.140 --> 00:04:04.180 Because it's all about how you calculate it. 00:04:04.180 --> 00:04:05.013 Well, first of all, 00:04:05.013 --> 00:04:07.000 I agree with you and your comments, 00:04:07.000 --> 00:04:08.350 both of you that 00:04:10.250 --> 00:04:13.513 I think I was somewhat confused last meeting also, 00:04:14.510 --> 00:04:18.260 on where we were going with this and where I, 00:04:18.260 --> 00:04:23.260 where I read the docket to be and what the PFD was. 00:04:25.010 --> 00:04:29.930 I think that the case has not been proven, quite frankly. 00:04:29.930 --> 00:04:33.710 I think that we need to be prudent 00:04:33.710 --> 00:04:36.110 and diligent when it comes to rate payer funds. 00:04:36.110 --> 00:04:39.460 And there are holes in the data 00:04:39.460 --> 00:04:41.580 as the Chairman has highlighted, 00:04:41.580 --> 00:04:42.950 there are confidentiality issues, 00:04:42.950 --> 00:04:45.263 there associated tax issues and such, 00:04:46.212 --> 00:04:51.212 that I find it hard to say that this is totally prudent. 00:04:51.820 --> 00:04:52.653 And, therefore, 00:04:52.653 --> 00:04:56.630 I would support the order that denies the application. 00:04:56.630 --> 00:04:58.091 Agreed. 00:04:58.091 --> 00:05:01.280 And we want to modify 00:05:03.790 --> 00:05:06.810 that order to request more information 00:05:06.810 --> 00:05:09.790 about what's confidential, what's not confidential. 00:05:09.790 --> 00:05:10.915 I think that's important. 00:05:10.915 --> 00:05:12.700 Absolutely. Yes. 00:05:12.700 --> 00:05:13.760 All right. So do we, 00:05:13.760 --> 00:05:17.270 we have a motion to adopt the proposal for decision 00:05:17.270 --> 00:05:19.090 with a modification to the order, 00:05:19.090 --> 00:05:20.570 to order the parties 00:05:20.570 --> 00:05:24.160 to jointly add exhibits, file exhibits, 00:05:24.160 --> 00:05:26.680 indicating which exhibits are confidential, 00:05:26.680 --> 00:05:29.530 and which are declassified, is there a motion? 00:05:29.530 --> 00:05:30.363 So moved. 00:05:31.231 --> 00:05:32.064 Is there a second? 00:05:32.064 --> 00:05:32.897 Second. 00:05:32.897 --> 00:05:33.890 All in favor, say aye. 00:05:33.890 --> 00:05:34.723 Aye. 00:05:34.723 --> 00:05:36.290 Motion passes. 00:05:36.290 --> 00:05:37.961 You have everything you need on that Mr. Journeay? 00:05:37.961 --> 00:05:40.244 Yes, sir. 00:05:40.244 --> 00:05:41.560 Thank you. 00:05:41.560 --> 00:05:43.500 Brings us to item number two. 00:05:43.500 --> 00:05:46.490 Item two is docket 5 1 4 8 4. 00:05:46.490 --> 00:05:49.380 It's a compliance following of AEP Texas 00:05:49.380 --> 00:05:54.060 for their rider TC to refund of transition charges. 00:05:54.060 --> 00:05:58.070 A proposed order was filed on August 27th 00:05:58.070 --> 00:06:00.580 that would approve the refund transition charges, 00:06:00.580 --> 00:06:03.327 no corrections or exceptions were filed. 00:06:03.327 --> 00:06:06.843 I have a memo with proposed changes to the proposed order. 00:06:07.947 --> 00:06:09.150 It seems relatively straight forward. 00:06:09.150 --> 00:06:11.410 Any thoughts or comments? 00:06:11.410 --> 00:06:14.583 Yeah, just to recapture the heart of it. 00:06:15.560 --> 00:06:17.800 You know, the refund directly to consumers 00:06:17.800 --> 00:06:20.560 is consistent with our rationale 00:06:20.560 --> 00:06:23.337 and the CenterPoint case a docket number 00:06:23.337 --> 00:06:27.377 5 1 5 6 7 that I previously filed and, you know, 00:06:28.280 --> 00:06:30.543 I agree with the proposed order. 00:06:32.450 --> 00:06:33.661 I'm supportive of that. 00:06:33.661 --> 00:06:34.494 All right. 00:06:34.494 --> 00:06:36.770 Is there a motion to approve the proposed order as modified 00:06:36.770 --> 00:06:38.840 by Commission Council September 30 memo? 00:06:38.840 --> 00:06:39.830 So moved. 00:06:39.830 --> 00:06:40.663 Second. 00:06:40.663 --> 00:06:41.743 All in favor, say aye. 00:06:41.743 --> 00:06:43.760 Aye. 00:06:43.760 --> 00:06:44.763 Motion passes. 00:06:46.150 --> 00:06:47.490 Item number three. 00:06:47.490 --> 00:06:49.750 Item three is docket 5 1 8 0 6. 00:06:49.750 --> 00:06:52.310 It is a true up compliance filing of Entergy 00:06:52.310 --> 00:06:54.897 concerning their scheduled TTC. 00:06:54.897 --> 00:06:57.300 The proposed order was filed on August 4th. 00:06:57.300 --> 00:07:00.040 That would approve revised rates 00:07:00.040 --> 00:07:03.940 for Entergy's transition to competition tariff. 00:07:03.940 --> 00:07:06.470 No corrections or exceptions were filed. 00:07:06.470 --> 00:07:09.673 I have a memo with proposed changes to the order. 00:07:10.717 --> 00:07:13.460 Another pretty straightforward issue. 00:07:13.460 --> 00:07:15.560 Any questions, comments, thoughts? 00:07:15.560 --> 00:07:16.610 I do have comments. 00:07:19.338 --> 00:07:23.020 This, I see this as two issues. 00:07:23.020 --> 00:07:26.510 One of them is the docket is solely 00:07:26.510 --> 00:07:31.063 about truing up previous orders previous, 00:07:32.380 --> 00:07:35.650 you know, that implement legislative directive 00:07:35.650 --> 00:07:37.780 on how to move areas of Texas 00:07:37.780 --> 00:07:39.653 that are not in ERCOT to competition. 00:07:42.290 --> 00:07:44.210 And obviously respect, you know, 00:07:44.210 --> 00:07:49.210 previous decisions of the Commission and think that 00:07:49.470 --> 00:07:54.280 ultimately this order needs should go forward. 00:07:54.280 --> 00:07:57.660 What troubles me is that we've spent about, 00:07:57.660 --> 00:07:59.300 and not we, I haven't spent a dime, 00:07:59.300 --> 00:08:02.440 but the rate payers in the Southeast 00:08:02.440 --> 00:08:04.770 have spent a couple hundred million dollars 00:08:04.770 --> 00:08:06.590 on a transition to competition. 00:08:06.590 --> 00:08:10.880 And there's nothing, I believe, to show for it. 00:08:10.880 --> 00:08:15.227 And I think originally, you know, 00:08:16.700 --> 00:08:18.950 there were some preconditions for competition 00:08:21.120 --> 00:08:24.790 such as open access tariffs, you know, 00:08:24.790 --> 00:08:27.850 is there, there's a generation limit. 00:08:27.850 --> 00:08:29.773 Some of these I believe are, 00:08:32.100 --> 00:08:36.540 are sufficed or satisfied under the construct 00:08:36.540 --> 00:08:40.520 that Entergy Texas is its own utility, 00:08:40.520 --> 00:08:42.520 but it also works under the MISO system. 00:08:44.510 --> 00:08:48.553 You know, there are other issues out there. 00:08:51.213 --> 00:08:53.300 I haven't been to every one of the proceedings 00:08:53.300 --> 00:08:55.580 on transition to competition for Entergy 00:08:55.580 --> 00:08:57.440 over the last 25 years, of course. 00:08:57.440 --> 00:09:01.173 But, you know, it seems to me that there are, 00:09:02.170 --> 00:09:04.870 competition has been good for the rest of the state 00:09:04.870 --> 00:09:08.850 and that if we are, you know, 00:09:08.850 --> 00:09:12.927 going to finally reimburse Entergy for the, 00:09:14.360 --> 00:09:15.390 for the rest of this money, 00:09:15.390 --> 00:09:18.200 that some kind of transition ought to be re-looked at, 00:09:18.200 --> 00:09:19.033 you know, 00:09:19.033 --> 00:09:22.950 is there a process for stakeholders to give information? 00:09:22.950 --> 00:09:25.240 Should we have them file here to say, yes, 00:09:25.240 --> 00:09:27.133 we want competition in that area. 00:09:28.160 --> 00:09:29.860 There are, again, 00:09:29.860 --> 00:09:31.940 some of the preconditions of, you know, 00:09:31.940 --> 00:09:36.723 open access being handled by MISO. 00:09:39.501 --> 00:09:41.870 Anyway, I'm not being too articulate about it, 00:09:41.870 --> 00:09:43.540 but what I want is, 00:09:43.540 --> 00:09:46.860 I hope that if stakeholders and folks in the Southeast 00:09:46.860 --> 00:09:49.410 and retail electric providers and, you know, 00:09:49.410 --> 00:09:52.540 consumers want competition in that area 00:09:52.540 --> 00:09:54.610 that they ought to tell us, 00:09:54.610 --> 00:09:57.210 I don't think that a couple of hundred million dollars 00:09:57.210 --> 00:10:01.589 for nothing is a good deal. 00:10:01.589 --> 00:10:02.422 And if it moves, 00:10:02.422 --> 00:10:06.290 if it moves us towards a competitive market in that area, 00:10:06.290 --> 00:10:08.530 I think that would be prudent, 00:10:08.530 --> 00:10:12.930 but I'm supportive of the true up, 00:10:12.930 --> 00:10:15.040 but just wanted to make the comment that I think we need 00:10:15.040 --> 00:10:17.760 to re look at this and stakeholders need to look at it 00:10:17.760 --> 00:10:20.373 and tell us, yeah. 00:10:21.240 --> 00:10:24.740 Is it time to move forward with competitive choice in, 00:10:24.740 --> 00:10:25.940 in the Southeast region? 00:10:27.460 --> 00:10:28.983 Well put, I think 00:10:28.983 --> 00:10:30.111 So, 00:10:30.111 --> 00:10:32.067 this argument has been, 00:10:32.067 --> 00:10:35.342 I would echo your comments, Commissioner, 00:10:35.342 --> 00:10:37.760 and I have written down, 00:10:37.760 --> 00:10:41.256 I am so glad this is the last year (laughter) 00:10:41.256 --> 00:10:42.089 of this true up. 00:10:43.724 --> 00:10:46.277 And it just is a twist of fate 00:10:47.370 --> 00:10:49.520 that I am one of the Commissioners that has to approve 00:10:49.520 --> 00:10:51.870 the last year of this true up. 00:10:51.870 --> 00:10:56.900 But that, that fact on taking ERCOT to the Sabine 00:10:56.900 --> 00:11:01.419 has been heavily debated for decades. 00:11:01.419 --> 00:11:04.280 And, and within the last two years, 00:11:04.280 --> 00:11:08.800 10 years at the Legislature, they've discussed it. 00:11:08.800 --> 00:11:11.153 The residents go back and forth. 00:11:14.070 --> 00:11:15.730 It's a dynamic part of the state of Texas, 00:11:15.730 --> 00:11:16.790 Southeast Texas. 00:11:16.790 --> 00:11:19.820 It's a heavily industrialized area of the state of Texas. 00:11:19.820 --> 00:11:21.293 It's growing fast. 00:11:22.720 --> 00:11:26.140 URI has made people evaluate, again, 00:11:26.140 --> 00:11:27.240 it swings back and forth, 00:11:27.240 --> 00:11:28.880 that maybe it's not such a good thing. 00:11:28.880 --> 00:11:31.420 You hear that from their Legislative representatives, 00:11:31.420 --> 00:11:34.990 Senator Nichols, Senator Creighton, 00:11:34.990 --> 00:11:37.350 that they're glad that they have Entergy. 00:11:37.350 --> 00:11:38.980 So it does swing back and forth. 00:11:38.980 --> 00:11:39.813 But I agree with you, 00:11:39.813 --> 00:11:42.280 it seems like there should be a mechanism or a voice 00:11:43.150 --> 00:11:47.390 to where if the consumers and those rate payers want to see 00:11:47.390 --> 00:11:49.874 any type of competitive benefit in the future, 00:11:49.874 --> 00:11:53.110 that we should provide them a venue at the PUC. 00:11:54.743 --> 00:11:59.030 In the interludes between the legislative sessions, 00:11:59.030 --> 00:12:00.230 where they can speak in front of 00:12:00.230 --> 00:12:03.080 their elected representatives, 00:12:03.080 --> 00:12:04.970 but at the end of the day, 00:12:04.970 --> 00:12:07.160 for the purposes of this case, this is it. 00:12:07.160 --> 00:12:09.570 This is the last, this is the last one. 00:12:09.570 --> 00:12:10.403 I'm glad. 00:12:12.106 --> 00:12:13.590 Well, yes, 00:12:13.590 --> 00:12:15.290 that certainly does seem like, I mean, 00:12:15.290 --> 00:12:17.210 it's a lot of money, 200 million, 00:12:17.210 --> 00:12:21.120 and you all have raised some very important issues 00:12:21.120 --> 00:12:23.810 that I think merit a lot of deep consideration 00:12:23.810 --> 00:12:25.160 by the Commission that, I mean, 00:12:25.160 --> 00:12:26.883 that's a significant change. 00:12:28.140 --> 00:12:30.110 And so, you know, 00:12:30.110 --> 00:12:32.770 I think my experience has been with Entergy 00:12:33.780 --> 00:12:35.840 looking to join different ISO and RTOs, 00:12:37.515 --> 00:12:41.120 ERCOT, SPP, MISO, currently in MISO. 00:12:41.120 --> 00:12:43.450 And, you know, 00:12:43.450 --> 00:12:46.730 I think one of the reasons they wanted to join MISO 00:12:46.730 --> 00:12:49.450 was to try to garner some of the benefits 00:12:49.450 --> 00:12:52.320 of being in an actual ISO and RTO. 00:12:52.320 --> 00:12:55.740 And I think as a Commission, we should continue to, 00:12:55.740 --> 00:12:58.561 to review whether that is producing the benefits 00:12:58.561 --> 00:13:03.561 that were proffered to us by joining MISO. 00:13:04.210 --> 00:13:06.660 And I think there's, you know, ongoing review of that. 00:13:06.660 --> 00:13:09.273 And so from my perspective, 00:13:12.540 --> 00:13:14.830 I'm open to hearing what you have to say. 00:13:14.830 --> 00:13:17.980 I think that merits a lot deeper consideration, 00:13:17.980 --> 00:13:22.980 but that is a lot of money to look into joining competition. 00:13:23.350 --> 00:13:24.712 200 million. 00:13:24.712 --> 00:13:27.020 And I'm happy like you Commissioner McAdams, 00:13:27.020 --> 00:13:32.020 if this is the last round of these charges. 00:13:32.060 --> 00:13:34.040 So I'm happy to see these going back 00:13:34.040 --> 00:13:36.240 and I'm comfortable with the proposed order. 00:13:37.810 --> 00:13:38.643 Thank you. 00:13:38.643 --> 00:13:42.360 I think it's fair to say that this Commission 00:13:42.360 --> 00:13:46.430 has been robust in welcoming stakeholder input 00:13:47.880 --> 00:13:49.070 since we've been seated. 00:13:49.070 --> 00:13:53.230 And so the bottom line is if the folks in Southeast Texas 00:13:54.150 --> 00:13:56.980 want to have that conversation, they should let us know. 00:13:56.980 --> 00:13:57.850 Fair? 00:13:57.850 --> 00:13:59.360 Fair. Fair. 00:13:59.360 --> 00:14:00.193 All right. 00:14:00.193 --> 00:14:01.040 In the meantime, 00:14:01.040 --> 00:14:04.551 we'll need to conclude this piece of business. 00:14:04.551 --> 00:14:08.020 Is there a motion to approve the proposed order 00:14:08.020 --> 00:14:11.790 as modified by Commission Counsel's September 30 memo? 00:14:11.790 --> 00:14:12.990 So moved. 00:14:12.990 --> 00:14:13.823 Second. 00:14:13.823 --> 00:14:15.040 All in favor, say aye. 00:14:15.040 --> 00:14:15.920 Aye. 00:14:15.920 --> 00:14:16.943 Motion passes. 00:14:19.360 --> 00:14:21.790 Item number four, please Mr. Journeay. 00:14:21.790 --> 00:14:24.880 Item four is docket 5 2 0 3 4. 00:14:24.880 --> 00:14:29.880 It's an agreed NOV concerning AEPs reliability 00:14:30.220 --> 00:14:32.510 and continuity of service. 00:14:32.510 --> 00:14:35.100 Commission previously considered a proposed order. 00:14:35.100 --> 00:14:37.443 Sent it back for further information. 00:14:38.420 --> 00:14:40.860 That was provided and the ALJ filed 00:14:40.860 --> 00:14:44.703 a revised proposed order on August 25th, 00:14:45.840 --> 00:14:49.430 that would approve the administrative penalties of 56,000 00:14:49.430 --> 00:14:50.830 and the agreement. 00:14:50.830 --> 00:14:53.890 No corrections or exceptions have been filed to that. 00:14:53.890 --> 00:14:54.723 Thank you, sir. 00:14:54.723 --> 00:14:56.110 I know this is an issue, Will, 00:14:56.110 --> 00:14:59.940 that you've led on, filed a memo back in May. 00:14:59.940 --> 00:15:02.027 And so I'll defer to you. 00:15:02.027 --> 00:15:02.860 And of course, 00:15:02.860 --> 00:15:05.020 I know Jimmy's got a lot of background in this space too. 00:15:05.020 --> 00:15:06.279 Yes, sir. 00:15:06.279 --> 00:15:07.680 I mean, just for me as a layman, 00:15:07.680 --> 00:15:11.460 I'm trying to figure out what right looks like. 00:15:11.460 --> 00:15:13.860 I think this is what right looks like 00:15:13.860 --> 00:15:16.010 in terms of a file template 00:15:16.010 --> 00:15:17.400 that could be used in the future. 00:15:17.400 --> 00:15:20.410 It addresses everything that, Mr. Chairman, 00:15:20.410 --> 00:15:22.780 you and I discussed in our early days in the Commission. 00:15:22.780 --> 00:15:24.220 It's hard to believe it's already been five months, 00:15:24.220 --> 00:15:25.930 almost six months since we 00:15:25.930 --> 00:15:28.490 first landed here. Hell of a year. 00:15:28.490 --> 00:15:31.340 but it addresses timelines, amounts, 00:15:31.340 --> 00:15:33.290 feeder by feeder analysis 00:15:33.290 --> 00:15:35.660 on when corrective action could be taken. 00:15:35.660 --> 00:15:39.570 So as a policy, I believe, on the whole, 00:15:39.570 --> 00:15:41.980 it drives us toward a goal 00:15:41.980 --> 00:15:44.550 of improving system-wide reliability. 00:15:44.550 --> 00:15:47.010 If you address these in the timeframes established 00:15:47.010 --> 00:15:48.512 that we can see, 00:15:48.512 --> 00:15:50.210 that the Commission can monitor moving forward, 00:15:50.210 --> 00:15:52.170 theoretically, on a law of averages basis, 00:15:52.170 --> 00:15:53.330 we're actually gonna make a dent 00:15:53.330 --> 00:15:55.030 toward the better for reliability. 00:15:55.970 --> 00:15:58.085 And that's very important in these hurricane prone areas. 00:15:58.085 --> 00:16:01.493 And I was glad to see this. 00:16:02.530 --> 00:16:03.363 Well put. 00:16:04.690 --> 00:16:07.420 I would, I am not an expert on saiety and safety. 00:16:07.420 --> 00:16:10.600 I assure you that, but I agree with 00:16:11.670 --> 00:16:13.570 Commissioner McAdams thoughts on this, 00:16:13.570 --> 00:16:16.870 I hope that, you know, 00:16:16.870 --> 00:16:19.390 since we are in hurricane, well, 00:16:19.390 --> 00:16:20.520 let me go back and just say, 00:16:20.520 --> 00:16:22.300 satiety and safety are obviously 00:16:22.300 --> 00:16:26.453 very staple base components of a reliable system. 00:16:27.870 --> 00:16:29.960 Many of y'all know, that my background, 00:16:29.960 --> 00:16:32.750 I helped lead the investigation of the 2003 blackout, 00:16:32.750 --> 00:16:34.150 which was caused by one tree 00:16:35.270 --> 00:16:38.490 and then a bunch of issues after that. 00:16:38.490 --> 00:16:41.020 But, you know, 00:16:41.020 --> 00:16:44.660 satiety and safety is truly important 00:16:44.660 --> 00:16:47.270 and it's critical to reliability for every consumer. 00:16:47.270 --> 00:16:50.860 And I hope that there's a time that we, 00:16:50.860 --> 00:16:51.850 over the next, 00:16:51.850 --> 00:16:54.200 after we get market designed done in some, you know, 00:16:54.200 --> 00:16:55.960 we can actually look into this a little bit more 00:16:55.960 --> 00:16:57.240 and understand it. 00:16:57.240 --> 00:16:59.920 There are a lot of issues that deal with segmentation 00:16:59.920 --> 00:17:03.060 and other things of critical loads 00:17:03.060 --> 00:17:07.110 kind of down at that level that this is interconnected with. 00:17:07.110 --> 00:17:10.373 And I just, this is so important in my opinion, 00:17:11.440 --> 00:17:13.790 that it should take some Commission focus, but. 00:17:14.820 --> 00:17:15.702 Absolutely 00:17:15.702 --> 00:17:17.170 Yeah. 00:17:17.170 --> 00:17:18.450 Well, based on the expectations 00:17:18.450 --> 00:17:22.160 that have been set forth by Commissioner McAdams, 00:17:22.160 --> 00:17:25.300 and you, Chairman Lake, in prior NOV cases, 00:17:25.300 --> 00:17:29.250 I think that the company provided the necessary information 00:17:29.250 --> 00:17:31.780 to be able to prove up their corrective action 00:17:31.780 --> 00:17:32.830 and provide the information 00:17:32.830 --> 00:17:35.850 that you both were expecting 00:17:35.850 --> 00:17:38.020 in your direction prior to open meeting. 00:17:38.020 --> 00:17:39.890 So I'm comfortable with 00:17:39.890 --> 00:17:40.970 the question. Formally, 00:17:40.970 --> 00:17:42.100 could I just take the opportunity 00:17:42.100 --> 00:17:43.770 to formally thank AP and 00:17:43.770 --> 00:17:47.460 the other TDSPs out there NOEs, everybody, 00:17:47.460 --> 00:17:52.460 I mean, if you take the time to file these plans, 00:17:53.790 --> 00:17:55.530 remediation plans, 00:17:55.530 --> 00:17:57.850 it's a great help to the system as a whole. 00:17:57.850 --> 00:17:58.740 And I think right now, 00:17:58.740 --> 00:18:00.860 as we're going through redesign 00:18:00.860 --> 00:18:02.500 and trying to stabilize ERCOT 00:18:02.500 --> 00:18:07.500 and also maintain a reliable service throughout Texas, 00:18:07.750 --> 00:18:10.080 these efforts, we shouldn't take them for granted. 00:18:10.080 --> 00:18:11.770 We should thank you for that. 00:18:11.770 --> 00:18:14.440 That's, you're doing the right thing. 00:18:14.440 --> 00:18:15.840 Absolutely, job well done. 00:18:17.830 --> 00:18:21.230 Is there a motion to approve the proposed order? 00:18:21.230 --> 00:18:22.080 So moved. 00:18:22.080 --> 00:18:23.030 Second. 00:18:23.030 --> 00:18:23.863 All in favor, say aye. 00:18:23.863 --> 00:18:25.070 Aye. 00:18:25.070 --> 00:18:26.023 Motion passes. 00:18:28.680 --> 00:18:30.383 Item number five, please, sir. 00:18:31.350 --> 00:18:34.430 Item five is docket 5 2 0 7 2. 00:18:34.430 --> 00:18:37.570 It's the application of SPS 00:18:37.570 --> 00:18:41.093 to adjust it's energy efficiency cost recovery factor. 00:18:44.078 --> 00:18:46.070 A proposed order was filed on the 16th. 00:18:46.070 --> 00:18:49.650 Some changes and corrections were made thereafter, 00:18:49.650 --> 00:18:51.860 and the LJ followed a revise, 00:18:51.860 --> 00:18:56.580 a memo revising the proposed order on September 28th. 00:18:56.580 --> 00:19:00.323 And I have a memo with proposed changes to the proposal. 00:19:01.190 --> 00:19:02.520 Thank you, sir. 00:19:02.520 --> 00:19:04.330 Seems relatively straightforward. 00:19:04.330 --> 00:19:06.053 Any comments or questions? 00:19:09.240 --> 00:19:10.073 Straight, straight 00:19:10.073 --> 00:19:11.040 forward as it stands now. There we go. 00:19:11.040 --> 00:19:12.825 Look forward to looking at these in the future. 00:19:12.825 --> 00:19:13.747 (laughter) 00:19:13.747 --> 00:19:17.030 Is there a motion to approve the proposed order 00:19:17.030 --> 00:19:19.730 as modified by Commission counsel in September 30 memo? 00:19:19.730 --> 00:19:21.000 So moved. 00:19:21.000 --> 00:19:21.833 Second. 00:19:21.833 --> 00:19:22.666 All in favor, say aye. 00:19:22.666 --> 00:19:23.780 Aye. 00:19:23.780 --> 00:19:24.823 Motion passes. 00:19:26.320 --> 00:19:27.745 The 00:19:27.745 --> 00:19:32.745 next item will be item number eight, nine and 10. 00:19:32.915 --> 00:19:34.970 If ya'll are going to take those up I'll step aside. 00:19:34.970 --> 00:19:35.803 Yes, sir. 00:19:40.520 --> 00:19:41.770 Mr.Journeay 00:19:41.770 --> 00:19:43.900 can you walk us through item number, 00:19:43.900 --> 00:19:45.090 we can bring these up together. 00:19:45.090 --> 00:19:46.756 Eight, nine, and 10. Sure 00:19:48.460 --> 00:19:50.250 I think we only need to bring up nine. 00:19:50.250 --> 00:19:51.083 Okay, great. 00:19:51.083 --> 00:19:52.320 I'll bring up number nine. 00:19:52.320 --> 00:19:54.040 Docket number 5 2 3 2 2. 00:19:54.040 --> 00:19:56.850 Application of the Electrical Reliability Council of Texas 00:19:56.850 --> 00:19:57.920 for a debt obligation order 00:19:57.920 --> 00:20:00.028 under PURA Chapter 39 sub-Chapter N 00:20:00.028 --> 00:20:02.643 and a request for good cause exception. 00:20:05.920 --> 00:20:10.400 Let me know issue that you would like further clarity on 00:20:10.400 --> 00:20:12.950 regarding our discussions last week. 00:20:12.950 --> 00:20:14.263 Can you frame that for us? 00:20:15.230 --> 00:20:16.063 Yeah, so, 00:20:16.063 --> 00:20:17.660 so the issue we didn't address 00:20:17.660 --> 00:20:21.313 was the one that around when an entity opts out. 00:20:23.840 --> 00:20:26.430 Can it maintain that opt-out status or forever, 00:20:26.430 --> 00:20:27.263 or are there, 00:20:27.263 --> 00:20:31.323 would there be restrictions placed on that entity? 00:20:32.261 --> 00:20:35.070 And if it undertook certain actions, 00:20:35.070 --> 00:20:37.370 it would lose it's opt-out status. 00:20:37.370 --> 00:20:42.370 So this goes to the issue of coming in and out. 00:20:42.420 --> 00:20:43.453 So once you, 00:20:45.250 --> 00:20:46.123 once you, 00:20:48.760 --> 00:20:49.593 you know, 00:20:50.540 --> 00:20:53.840 fall into the category of not opting out 00:20:53.840 --> 00:20:56.733 and so you will avail yourself of securitization, 00:20:58.650 --> 00:21:00.610 how hard and fast is that status? 00:21:00.610 --> 00:21:03.510 Does that follow you through time? 00:21:03.510 --> 00:21:07.790 And my position is, in my belief, 00:21:07.790 --> 00:21:09.130 and I welcome. Excuse me, committee, 00:21:09.130 --> 00:21:12.270 it's really focused on the ones that do opt out 00:21:12.270 --> 00:21:14.250 and do not take. 00:21:14.250 --> 00:21:15.352 Okay, correct 00:21:15.352 --> 00:21:17.140 one way or another, 00:21:17.140 --> 00:21:20.660 as it applies to the obligation order for entities 00:21:20.660 --> 00:21:23.913 and affiliates that opt out, it is my belief you're out. 00:21:24.870 --> 00:21:26.920 If you decide to stay in, 00:21:26.920 --> 00:21:28.510 then I believe that you should be able 00:21:28.510 --> 00:21:31.720 to change your rep classification. 00:21:31.720 --> 00:21:34.950 You shouldn't be able to change your rep classification. 00:21:34.950 --> 00:21:37.680 So that entity is in, 00:21:37.680 --> 00:21:42.480 and that obligation as a part of securitization stays there 00:21:42.480 --> 00:21:47.480 and is housed with that entity uplift charges stays there. 00:21:47.635 --> 00:21:49.370 Now you can, of course, 00:21:49.370 --> 00:21:51.780 in my view, form a new entity 00:21:51.780 --> 00:21:53.690 and in the instance where you want to 00:21:53.690 --> 00:21:56.640 serve non-affiliated customers, you should be able to, 00:21:56.640 --> 00:21:58.110 but again, you form a new entity. 00:21:58.110 --> 00:21:59.900 So for the purposes of the entity, 00:21:59.900 --> 00:22:03.747 securitization stays with the entity. 00:22:03.747 --> 00:22:04.763 What do you think. 00:22:06.330 --> 00:22:07.260 Similar. 00:22:07.260 --> 00:22:11.713 I think if you are a rep option two, and you have opted out, 00:22:12.968 --> 00:22:14.350 you remain opted out. 00:22:14.350 --> 00:22:17.690 However, if you change your rep certification 00:22:17.690 --> 00:22:20.092 to another option of a rep, then, 00:22:20.092 --> 00:22:24.240 and start serving unaffiliated customers, 00:22:24.240 --> 00:22:28.670 then you should be charged the default charges. 00:22:28.670 --> 00:22:31.507 You can't opt out and then turn around 00:22:31.507 --> 00:22:34.490 and then change your rep certification and start, you know, 00:22:34.490 --> 00:22:37.020 you're opted out and you're providing a different service. 00:22:37.020 --> 00:22:39.910 So that's my position. 00:22:39.910 --> 00:22:40.743 Go ahead, sir. 00:22:40.743 --> 00:22:41.576 I was just going to say, 00:22:41.576 --> 00:22:43.223 I hope this doesn't become an issue, 00:22:44.560 --> 00:22:46.430 but I agree with both of you. 00:22:46.430 --> 00:22:49.297 I mean, you can't use, 00:22:49.297 --> 00:22:52.880 we shouldn't allow entities to get out 00:22:52.880 --> 00:22:57.340 And then opt back in just to avoid a system issue 00:22:57.340 --> 00:22:58.950 that everybody has born, you know, 00:22:58.950 --> 00:23:00.720 in ERCOT and, you know, 00:23:00.720 --> 00:23:02.782 believe again hopefully, people, 00:23:02.782 --> 00:23:05.860 entities will not do this. 00:23:05.860 --> 00:23:07.760 It's the obligation of everybody to work together, 00:23:07.760 --> 00:23:08.960 to make the system work. 00:23:10.480 --> 00:23:12.530 It's a matter of competitive equity I think. 00:23:12.530 --> 00:23:15.110 And ERCOT's already looking at, you know, 00:23:15.110 --> 00:23:16.500 sort of a broader issue of, 00:23:16.500 --> 00:23:19.770 of a company that exits and then comes back in 00:23:19.770 --> 00:23:22.270 that they have to be charged default charges. 00:23:22.270 --> 00:23:24.660 So I would sort of, 00:23:24.660 --> 00:23:28.100 kind of view the issue from that lens of 00:23:28.100 --> 00:23:30.652 if you're going to opt out as a rep option two, 00:23:30.652 --> 00:23:33.510 you can't later go change your rep certification 00:23:33.510 --> 00:23:35.350 and still be considered opt out 00:23:35.350 --> 00:23:38.020 and start providing a different business model. 00:23:38.020 --> 00:23:40.650 And then that gives you a competitive advantage 00:23:40.650 --> 00:23:45.650 over the other reps that are having to assess 00:23:46.150 --> 00:23:47.840 these default charges to their customers. 00:23:47.840 --> 00:23:50.130 So that's my position. 00:23:50.130 --> 00:23:51.720 I think if we move in that direction, 00:23:51.720 --> 00:23:53.740 that ERCOT should address this issue 00:23:53.740 --> 00:23:56.030 in their protocols as well. 00:23:56.030 --> 00:23:58.117 So thank you for bringing that up, 00:23:58.117 --> 00:24:00.410 because that was going to be my kind of second leg to this, 00:24:00.410 --> 00:24:04.472 this discussion NPR 10 67. 00:24:04.472 --> 00:24:07.610 I urge us to consider, and I think we're there, 00:24:07.610 --> 00:24:09.020 given the conversation, 00:24:09.020 --> 00:24:11.660 to be consistent with what we do in this order, 00:24:11.660 --> 00:24:15.923 with what 10 67 reflects and just for clarity, 00:24:17.010 --> 00:24:21.350 it is my view that we would have an interest in ordering 00:24:21.350 --> 00:24:24.060 ERCOT to adopt NPR 10 67. 00:24:24.060 --> 00:24:27.170 I mean, just clear up the ambiguity. 00:24:27.170 --> 00:24:28.003 Move forward with it, 00:24:28.003 --> 00:24:31.023 and consistent with the discussion in this order. 00:24:32.750 --> 00:24:34.560 You may not be ready to do that right now, 00:24:34.560 --> 00:24:37.460 but I believe for the purposes of consistency and clarity 00:24:37.460 --> 00:24:39.200 to the folks out in the audience, 00:24:39.200 --> 00:24:42.300 to the market participants, I think it would help. 00:24:43.280 --> 00:24:44.193 Absolutely. 00:24:44.193 --> 00:24:47.323 As we look to stabilize the ERCOT market, 00:24:48.590 --> 00:24:50.020 we need to close loopholes 00:24:51.560 --> 00:24:54.823 for the future and prevent, you know, 00:24:55.860 --> 00:24:58.280 entities from taking advantage of the system 00:24:58.280 --> 00:25:00.350 and we need to maintain equity. 00:25:00.350 --> 00:25:03.120 And so I am supportive of moving forward 00:25:03.120 --> 00:25:06.070 in the position for option two in this case, 00:25:06.070 --> 00:25:09.970 and continue to support ERCOT in their efforts 00:25:09.970 --> 00:25:13.770 to ensure that companies that leave the market 00:25:13.770 --> 00:25:16.793 don't come back in and not be subject to default charges. 00:25:18.620 --> 00:25:19.453 Okay. 00:25:19.453 --> 00:25:22.480 Now I'm going to ask you for the sake of clarity. 00:25:22.480 --> 00:25:24.617 Repeat to me what you think you heard. 00:25:24.617 --> 00:25:26.867 (laughter) 00:25:30.880 --> 00:25:32.362 Thank you, sir. 00:25:32.362 --> 00:25:34.612 (laughter) 00:25:37.010 --> 00:25:40.910 If you are an option two rep, and you opt out 00:25:41.960 --> 00:25:44.610 and you want to change your service method 00:25:44.610 --> 00:25:47.540 so that you're serving additional customers, 00:25:47.540 --> 00:25:50.010 you have to form a new entity, 00:25:50.010 --> 00:25:52.220 come back into the market as a new entity 00:25:52.220 --> 00:25:53.140 and as a new entity, 00:25:53.140 --> 00:25:55.423 you will be assessed uplift charges. 00:25:56.470 --> 00:25:58.360 I agree with that. 00:25:58.360 --> 00:25:59.530 I do, too. 00:25:59.530 --> 00:26:00.363 Ditto. 00:26:00.363 --> 00:26:01.196 Okay. 00:26:02.860 --> 00:26:04.349 Do we need to cover anything else? 00:26:04.349 --> 00:26:06.250 Do we need to make a formal vote on this? 00:26:06.250 --> 00:26:07.737 Do you have your instructions consistent with the 00:26:07.737 --> 00:26:09.380 conversation that just happened? 00:26:09.380 --> 00:26:10.213 I do, 00:26:10.213 --> 00:26:14.910 and then we'll add language into the order 00:26:16.110 --> 00:26:20.750 that we're working on daily. 00:26:20.750 --> 00:26:25.733 I hope that we can get something out. 00:26:27.600 --> 00:26:30.200 My hope is by tomorrow 00:26:31.060 --> 00:26:34.350 so that the parties have an opportunity to look at it, 00:26:34.350 --> 00:26:36.500 and see what I screwed up 00:26:38.620 --> 00:26:41.197 so we can get it fixed for next week. 00:26:41.197 --> 00:26:42.030 Okay. 00:26:44.040 --> 00:26:46.650 The order for the ERCOT little 00:26:47.540 --> 00:26:49.420 is likely not to come out tomorrow 00:26:49.420 --> 00:26:52.320 because of personnel issues. 00:26:52.320 --> 00:26:54.803 Hopefully, first thing Monday, 00:26:55.900 --> 00:26:59.715 it will come out and let the parties look at that. 00:26:59.715 --> 00:27:00.548 That works for me. 00:27:00.548 --> 00:27:01.381 All right. Great. 00:27:01.381 --> 00:27:02.214 Thank you, Steven. 00:27:02.214 --> 00:27:07.214 So do you think we need to order to the NPRR? 00:27:07.360 --> 00:27:10.350 So the question of procedure, 00:27:10.350 --> 00:27:12.100 the Chair has not recused himself 00:27:12.100 --> 00:27:13.820 from consideration of that. 00:27:13.820 --> 00:27:17.857 Would we welcome him back on any type of consideration NPRR? 00:27:17.857 --> 00:27:20.630 And should we do that at the next open meeting 00:27:20.630 --> 00:27:22.163 as a formal order? 00:27:24.850 --> 00:27:26.810 I think it's a directive. 00:27:26.810 --> 00:27:29.371 I mean, it's ERCOTs heard you 00:27:29.371 --> 00:27:30.900 that they like what you're doing. 00:27:30.900 --> 00:27:35.260 It's seems a little off kilter to me 00:27:35.260 --> 00:27:38.810 to order ERCOT to adopt a protocol 00:27:38.810 --> 00:27:43.220 that's in the process and may have revisions to it. 00:27:43.220 --> 00:27:45.010 It ultimately will be presented 00:27:45.010 --> 00:27:46.740 to the Commission for approval. 00:27:46.740 --> 00:27:47.870 True. 00:27:47.870 --> 00:27:49.860 after the board acts on it. 00:27:49.860 --> 00:27:52.198 So I'm looking at ERCOT and they have heard us. 00:27:52.198 --> 00:27:56.650 Our high level policy is understandable, 00:27:56.650 --> 00:27:59.930 and the objective is consistency 00:27:59.930 --> 00:28:03.200 with the securitization financing order. 00:28:03.200 --> 00:28:05.290 So I'm willing to let it stand at that 00:28:06.190 --> 00:28:09.450 and let that NPRR proceed at pace. 00:28:09.450 --> 00:28:12.160 But I think you've got three out of four 00:28:12.160 --> 00:28:13.760 and we're saying it's important. 00:28:17.200 --> 00:28:18.960 You'd think that I would know the order better 00:28:18.960 --> 00:28:21.460 having been (chuckle) 00:28:21.460 --> 00:28:24.420 reading it for so many days. 00:28:24.420 --> 00:28:26.380 I know there's a provision about ordering them 00:28:26.380 --> 00:28:27.530 to adopt protocols. 00:28:27.530 --> 00:28:29.760 I know one of those is related 00:28:29.760 --> 00:28:32.500 to the uplift charge mechanism. 00:28:32.500 --> 00:28:33.340 Right. 00:28:33.340 --> 00:28:35.330 It's not clear in my head right now, 00:28:35.330 --> 00:28:37.300 whether there's other languages in there 00:28:37.300 --> 00:28:38.810 to deal with protocol, 00:28:38.810 --> 00:28:42.517 to adopt protocols related to entities 00:28:42.517 --> 00:28:44.133 leaving the market, 00:28:45.270 --> 00:28:48.650 a general statement that they should adopt a protocol. 00:28:48.650 --> 00:28:50.710 And certainly if that's not in there, 00:28:50.710 --> 00:28:53.806 we could add that language. 00:28:53.806 --> 00:28:55.470 I think that's a good idea. 00:28:55.470 --> 00:28:57.710 And we might've touched on it in our prior open meeting 00:28:57.710 --> 00:29:01.330 when we discussed this case to just include, you know, 00:29:01.330 --> 00:29:06.100 in that order instructions to ERCOT to address that issue 00:29:06.100 --> 00:29:08.850 and create new protocols, 00:29:08.850 --> 00:29:11.070 which they're already in the process of doing, 00:29:11.070 --> 00:29:14.583 just to solidify that we are giving direction on that issue. 00:29:14.583 --> 00:29:17.170 As I think I also provided feedback 00:29:17.170 --> 00:29:21.103 on the terminated competitive wholesale market participants 00:29:23.550 --> 00:29:25.780 that they would still owe ERCOT. 00:29:25.780 --> 00:29:28.230 I think this just maintains a consistency with the order 00:29:28.230 --> 00:29:29.720 as to what our expectations are 00:29:29.720 --> 00:29:32.402 for terminated competitive wholesale market participants, 00:29:32.402 --> 00:29:37.402 and also for competitive wholesale market participants 00:29:37.800 --> 00:29:40.370 that leave the market and come back in 00:29:40.370 --> 00:29:42.470 and what the expectations are. 00:29:42.470 --> 00:29:44.293 So I think that just creates consistency in the order 00:29:44.293 --> 00:29:46.490 for you to insert that language in there. 00:29:46.490 --> 00:29:47.790 As currently drafted the, 00:29:47.790 --> 00:29:50.040 that language is actually much broader 00:29:50.040 --> 00:29:53.600 and just applies to all market participants 00:29:53.600 --> 00:29:55.773 that owe money to ERCOT, Sure. 00:29:55.773 --> 00:29:58.040 whether they're in or out, or leave and come back, 00:29:58.040 --> 00:29:58.873 or whatever. 00:29:58.873 --> 00:29:59.810 You owe money, you owe money. 00:29:59.810 --> 00:30:00.643 Okay. 00:30:00.643 --> 00:30:01.597 I like that. 00:30:01.597 --> 00:30:03.272 I like it broad. Yes 00:30:03.272 --> 00:30:05.730 Yes I, yes. 00:30:05.730 --> 00:30:06.563 We'll review your order, 00:30:06.563 --> 00:30:09.230 but I think that's the right approach. 00:30:09.230 --> 00:30:10.063 Okay. 00:30:10.063 --> 00:30:13.061 Before we mess anything up, I'm going to leave it there. 00:30:13.061 --> 00:30:14.380 (laughter) 00:30:14.380 --> 00:30:17.155 All right, Mr. Chairman, we're out of this. 00:30:29.597 --> 00:30:31.128 Did I miss something? 00:30:31.128 --> 00:30:32.240 (laughter) 00:30:32.240 --> 00:30:33.489 We missed your leadership. 00:30:33.489 --> 00:30:34.383 (laughter) 00:30:34.383 --> 00:30:35.920 We tried to get you back into this thing somehow. 00:30:36.928 --> 00:30:38.511 We like you, too. 00:30:40.740 --> 00:30:42.340 All right. 00:30:42.340 --> 00:30:47.203 I don't have anything on item 11 or 12. 00:30:47.203 --> 00:30:48.239 Do ya'll? 00:30:48.239 --> 00:30:49.200 No, sir. 00:30:49.200 --> 00:30:50.033 All right. 00:30:50.033 --> 00:30:52.993 That'll bring us to item number 13. 00:30:54.440 --> 00:30:55.940 Item 13 is project 52 3 0 7. 00:30:57.410 --> 00:31:01.470 It's a project to review the rules adopted by ERCOT. 00:31:01.470 --> 00:31:03.380 Commission staff filed a memorandum 00:31:03.380 --> 00:31:06.000 and a proposed order recommending approval 00:31:06.000 --> 00:31:08.870 of two notable operating guide revision requests 00:31:08.870 --> 00:31:11.120 and one retail market guide revision request. 00:31:13.590 --> 00:31:14.423 All right. 00:31:14.423 --> 00:31:16.980 Any comments or questions for staff, or are we ready, 00:31:16.980 --> 00:31:18.993 happy to approve the proposed order? 00:31:20.010 --> 00:31:21.348 I would approve, yes sir. 00:31:21.348 --> 00:31:22.181 Approve. 00:31:22.181 --> 00:31:23.014 All right. 00:31:23.014 --> 00:31:24.240 Is there a motion to approve the proposed order? 00:31:24.240 --> 00:31:25.400 So moved. 00:31:25.400 --> 00:31:26.233 Second. 00:31:26.233 --> 00:31:27.066 All in favor, say aye. 00:31:27.066 --> 00:31:27.899 Aye. 00:31:27.899 --> 00:31:29.470 Motion passes. 00:31:29.470 --> 00:31:32.110 Not taking up item 14 today. 00:31:32.110 --> 00:31:35.089 I don't have anything for 15. 00:31:35.089 --> 00:31:35.922 You all? 00:31:35.922 --> 00:31:36.755 No. 00:31:36.755 --> 00:31:37.588 No. 00:31:37.588 --> 00:31:38.860 All right. 00:31:38.860 --> 00:31:40.910 Item number 16. 00:31:40.910 --> 00:31:43.199 Staff has filed a proposal for publication 00:31:43.199 --> 00:31:47.253 related to our scarcity pricing rule. 00:31:48.830 --> 00:31:50.895 At this point, we'll call up Mr. Smelter 00:31:50.895 --> 00:31:53.540 to provide some background and we'll, 00:31:53.540 --> 00:31:56.120 you've taken a lead on this. 00:31:56.120 --> 00:31:59.583 So we'll look forward to your 00:31:59.583 --> 00:32:01.800 thoughts and comments Hello, Commissioners. 00:32:01.800 --> 00:32:03.650 David Smelter for Commission staff. 00:32:03.650 --> 00:32:04.600 I think our instructions 00:32:04.600 --> 00:32:05.890 from last meeting were pretty clear. 00:32:05.890 --> 00:32:07.810 You wanted us to strike through a nine 00:32:07.810 --> 00:32:10.720 and put in a 4.5 and that's what we did. 00:32:10.720 --> 00:32:12.448 And that's with regard 00:32:12.448 --> 00:32:14.960 to the price of the high system-wide offer cap, 00:32:14.960 --> 00:32:16.210 which is the system-wide offer cap 00:32:16.210 --> 00:32:18.180 that is in effect most of the time, 00:32:18.180 --> 00:32:19.620 it's not been in effect since URI, 00:32:19.620 --> 00:32:22.610 but will come back into effect starting January. 00:32:22.610 --> 00:32:25.100 We also filed some briefing questions 00:32:25.100 --> 00:32:26.890 that were due on the 30th 00:32:26.890 --> 00:32:29.060 that provided a little bit of context 00:32:29.060 --> 00:32:31.630 on what parties thought about that. 00:32:31.630 --> 00:32:34.040 I know that some of you had a chance to look at that. 00:32:34.040 --> 00:32:37.621 So the proposal publication is ready to be published, 00:32:37.621 --> 00:32:40.071 if that is the will of the Commission. 00:32:40.071 --> 00:32:42.013 Thank you, sir. 00:32:42.013 --> 00:32:43.680 Comments, questions? 00:32:44.600 --> 00:32:47.068 He accurately captured my request 00:32:47.068 --> 00:32:47.901 (laughter) 00:32:47.901 --> 00:32:49.913 and I try to be simple about those things. 00:32:50.750 --> 00:32:52.220 So I look forward to comments 00:32:52.220 --> 00:32:54.770 coming back from stakeholders on this one. 00:32:54.770 --> 00:32:56.180 Likewise. 00:32:56.180 --> 00:32:57.730 I will say, 00:32:57.730 --> 00:33:00.670 or I will remind our stakeholders that this is an action 00:33:00.670 --> 00:33:05.490 driven by the January 1 reset from low cap to high cap. 00:33:05.490 --> 00:33:10.490 And this by no means is the only action that we will take 00:33:11.140 --> 00:33:13.790 regarding the ERCOT market design or structure. 00:33:13.790 --> 00:33:16.110 This is not happening in a vacuum. 00:33:16.110 --> 00:33:17.150 We will be considering, 00:33:17.150 --> 00:33:19.220 as we have discussed all summer 00:33:19.220 --> 00:33:21.840 throughout multiple work sessions and comments, 00:33:21.840 --> 00:33:26.840 we will be considering changes to ORDCE the MCL, et cetera. 00:33:27.090 --> 00:33:29.130 So I just want to remind our stakeholders. 00:33:29.130 --> 00:33:30.970 This is not the only adjustment. 00:33:30.970 --> 00:33:32.733 This is a timeline driven change. 00:33:33.960 --> 00:33:36.700 Is there a motion to approve the proposal for publication 00:33:36.700 --> 00:33:37.533 for comment? 00:33:37.533 --> 00:33:38.366 So moved. 00:33:38.366 --> 00:33:39.199 Second. 00:33:39.199 --> 00:33:40.250 All in favor, say aye. 00:33:40.250 --> 00:33:41.083 Aye. 00:33:41.083 --> 00:33:41.916 Motion passes. 00:33:41.916 --> 00:33:42.976 Thank you, Commissioners. 00:33:42.976 --> 00:33:44.126 Thank you, Mr. Smelter. 00:33:45.550 --> 00:33:48.240 I don't have anything for 17, 18 or 19. 00:33:48.240 --> 00:33:49.287 You all? 00:33:49.287 --> 00:33:50.120 No, sir. 00:33:52.200 --> 00:33:56.240 Item 20 is our update from ERCOT. 00:33:56.240 --> 00:33:58.240 Got several topics to cover here, 00:33:58.240 --> 00:34:03.060 but we'll start with summer update from Kenan, 00:34:03.060 --> 00:34:06.024 and a maintenance update from Dan. 00:34:06.024 --> 00:34:08.093 Gentlemen, please come on up. 00:34:11.425 --> 00:34:12.890 And if you will state your names, 00:34:12.890 --> 00:34:14.713 and who you're with for the record. 00:34:19.870 --> 00:34:21.067 Okay. 00:34:21.067 --> 00:34:21.900 I think I'll start. 00:34:21.900 --> 00:34:23.694 I'm an Dan Whitman within ERCOT. 00:34:23.694 --> 00:34:26.210 I think you can summarize Summer operations 00:34:26.210 --> 00:34:29.975 this summer as being cooler than normal, 00:34:29.975 --> 00:34:31.490 wetter than normal, 00:34:31.490 --> 00:34:33.080 less windy than normal, and more conservative. 00:34:33.080 --> 00:34:34.791 And so I'll go through a few slides with you 00:34:34.791 --> 00:34:38.927 with more detail than that. Well put. 00:34:40.260 --> 00:34:43.283 The weather the summer, like I said, 00:34:43.283 --> 00:34:45.593 was mild across most of the state, 00:34:46.583 --> 00:34:48.830 generally cooler, rainier, 00:34:48.830 --> 00:34:51.470 particularly in the first three months of the summer, 00:34:51.470 --> 00:34:54.560 the average daily temperatures were one to two degrees 00:34:54.560 --> 00:34:55.393 over the kind of, 00:34:55.393 --> 00:34:58.463 on the average cooler than normal conditions. 00:34:59.530 --> 00:35:01.980 In the graph on the top of the slide one, there, 00:35:01.980 --> 00:35:04.090 you can see that there were no periods 00:35:04.090 --> 00:35:07.190 with widespread temperatures well above a hundred degrees, 00:35:07.190 --> 00:35:08.658 which is what we typically have, 00:35:08.658 --> 00:35:10.480 a few of those during the summer. 00:35:10.480 --> 00:35:12.380 We did not this summer, 00:35:12.380 --> 00:35:14.430 in spite of this lack of typical hot periods, 00:35:14.430 --> 00:35:16.900 we did set new monthly peak records 00:35:16.900 --> 00:35:19.560 for both June and September. 00:35:19.560 --> 00:35:23.638 The annual peak for the year 73,475 megawatts 00:35:23.638 --> 00:35:27.180 was well below the forecasted peak for the summer 00:35:27.180 --> 00:35:31.820 of 77,000 some odd megawatts because of that lack of, 00:35:31.820 --> 00:35:33.483 kind of really hot weather. 00:35:35.450 --> 00:35:38.890 On slide two you can see 00:35:38.890 --> 00:35:41.920 that it was generally less windy this summer 00:35:41.920 --> 00:35:43.600 than any of the last several years. 00:35:43.600 --> 00:35:48.348 The graph shows, kind of your wind output 00:35:48.348 --> 00:35:51.050 and it's normalized for the amount of capacity. 00:35:51.050 --> 00:35:52.710 Cause the amount of capacity has been going up. 00:35:52.710 --> 00:35:56.260 As you can see that this year, over most hours, 00:35:56.260 --> 00:35:58.690 the wind was actually less than what it had been 00:35:58.690 --> 00:35:59.963 the last several years. 00:36:01.130 --> 00:36:02.560 Solar generation was higher. 00:36:02.560 --> 00:36:03.660 Can I ask you a question about that? 00:36:03.660 --> 00:36:04.493 Yes, sir. 00:36:04.493 --> 00:36:05.440 Was that in all regions, 00:36:05.440 --> 00:36:07.710 or was that specifically driven 00:36:07.710 --> 00:36:12.568 by a panhandle, West Texas, or a coastal issue? 00:36:12.568 --> 00:36:14.430 I don't have that in front of me. 00:36:14.430 --> 00:36:17.010 My recollection is it was kind of widespread. 00:36:17.010 --> 00:36:18.900 We didn't see on some lot of days, 00:36:18.900 --> 00:36:21.010 we didn't see the kind of coastal going up 00:36:21.010 --> 00:36:23.180 the way we have in previous summers. 00:36:23.180 --> 00:36:24.260 And then it was also low 00:36:24.260 --> 00:36:26.573 in kind of the more westward regions. 00:36:29.370 --> 00:36:32.060 Solar generation was higher across the whole summer 00:36:32.060 --> 00:36:33.550 because pretty much every day, 00:36:33.550 --> 00:36:35.070 because we had significantly more 00:36:35.070 --> 00:36:36.370 installed capacity upsell. 00:36:37.730 --> 00:36:42.320 We did see new wind and solar instantaneous output 00:36:42.320 --> 00:36:44.910 records during the course of the summer 00:36:44.910 --> 00:36:49.910 with over 23,500 megawatts of wind back in June. 00:36:50.520 --> 00:36:53.670 And then solar got up about 7,000 megawatts several times, 00:36:53.670 --> 00:36:58.113 but the peak was 7,036 megawatts in first part of August. 00:37:00.720 --> 00:37:02.710 Moving to slide three. 00:37:02.710 --> 00:37:06.150 Thermal generation outages were generally lower 00:37:06.150 --> 00:37:09.500 during the summer when we got up to the highest net load. 00:37:09.500 --> 00:37:13.120 So when you had high load and low wind, 00:37:13.120 --> 00:37:15.470 the thermal outages were significantly lower, 00:37:15.470 --> 00:37:17.510 less than six megawatts. 00:37:17.510 --> 00:37:19.310 There were days that they got up higher than that, 00:37:19.310 --> 00:37:20.560 but it was usually on a, 00:37:20.560 --> 00:37:22.830 either cooler day or a day with more wind. 00:37:22.830 --> 00:37:25.033 And so it didn't cause any problems. 00:37:26.040 --> 00:37:27.921 Can I say something here as well? 00:37:27.921 --> 00:37:28.754 Sure. 00:37:28.754 --> 00:37:29.587 I'm sorry to interrupt, 00:37:29.587 --> 00:37:32.640 but this was an area that I had spoken with Brad about 00:37:32.640 --> 00:37:34.783 the other day, and Christie. 00:37:36.120 --> 00:37:38.430 When I was reviewing the thermal generation 00:37:38.430 --> 00:37:40.460 unplanned outages, 00:37:40.460 --> 00:37:44.260 it seemed like an inordinate number of those outages, 00:37:44.260 --> 00:37:47.763 the cause was either unknown or other. 00:37:49.490 --> 00:37:52.080 And to me that doesn't give us 00:37:52.080 --> 00:37:57.040 a good understanding of what the issue is, you know. 00:37:57.040 --> 00:37:58.480 Are there more systemic issues 00:37:58.480 --> 00:38:00.110 where certain types of plants? 00:38:00.110 --> 00:38:01.575 Are they, and it doesn't, 00:38:01.575 --> 00:38:03.680 it doesn't matter what the issue is. 00:38:03.680 --> 00:38:05.950 It's just trying to have a better understanding 00:38:05.950 --> 00:38:07.987 of what those outages are and why they are happening. 00:38:07.987 --> 00:38:10.660 Might give us a better indication of duration 00:38:10.660 --> 00:38:11.493 and other things. 00:38:11.493 --> 00:38:13.960 So I'd love to have the discussion with you all 00:38:13.960 --> 00:38:16.310 in the future about how we re-categorize 00:38:16.310 --> 00:38:18.040 or expand the categories 00:38:18.040 --> 00:38:21.490 from unknown and other to things that are a bit more 00:38:22.660 --> 00:38:24.205 informative to the Commission and to the consumers 00:38:24.205 --> 00:38:26.620 and to the market as a whole. 00:38:26.620 --> 00:38:27.840 Makes sense. 00:38:27.840 --> 00:38:30.310 We actually haven't notable protocol revision requests. 00:38:30.310 --> 00:38:33.770 That's going to be going in sometime in the next few weeks, 00:38:33.770 --> 00:38:37.580 that will among things, allow us to, 00:38:37.580 --> 00:38:39.470 There's this particular field that the generators, 00:38:39.470 --> 00:38:40.303 when they have an outage, 00:38:40.303 --> 00:38:43.110 they enter that data into, it's a dropdown box. 00:38:43.110 --> 00:38:44.560 Gonna expand that dropdown box 00:38:44.560 --> 00:38:45.880 where there are more options. 00:38:45.880 --> 00:38:50.140 And also that dropdown, that data can't be updated 00:38:50.140 --> 00:38:52.110 after the original entry of the outages. 00:38:52.110 --> 00:38:53.520 There are other fields that 00:38:53.520 --> 00:38:54.770 where they can tell us what's going on 00:38:54.770 --> 00:38:56.370 in kind of nauseous detail, 00:38:56.370 --> 00:38:59.000 but that particular one, you can't update it. 00:38:59.000 --> 00:39:01.860 And so, part of that will be doing a project 00:39:01.860 --> 00:39:03.370 so that it can be updated 00:39:03.370 --> 00:39:05.820 so they can enter the outages early. 00:39:05.820 --> 00:39:07.040 And if they don't know what's going on, 00:39:07.040 --> 00:39:08.120 they can say that. 00:39:08.120 --> 00:39:09.190 But then later, 00:39:09.190 --> 00:39:10.880 once they have done more evaluation 00:39:10.880 --> 00:39:11.810 and know what's going on, 00:39:11.810 --> 00:39:13.630 they can update that field to let us 00:39:13.630 --> 00:39:15.602 know the I think that's a good thing. 00:39:15.602 --> 00:39:16.435 and then we can post for public purposes, the right, 00:39:16.435 --> 00:39:17.980 the correct reasons. 00:39:17.980 --> 00:39:19.053 Thank you. 00:39:19.053 --> 00:39:21.210 Yeah. Just for the layman and the general public, 00:39:21.210 --> 00:39:24.030 but the moment it breaks, we don't always know 00:39:24.030 --> 00:39:25.460 what broke. Correct. 00:39:25.460 --> 00:39:29.550 And, but you're making the ERCOT is making the adjustment. 00:39:29.550 --> 00:39:33.660 And that's why it says unknown at first, later on, 00:39:33.660 --> 00:39:34.630 you're making the adjustments. 00:39:34.630 --> 00:39:36.520 So once they've gotten under the hood 00:39:36.520 --> 00:39:37.550 and figure out what broke, 00:39:37.550 --> 00:39:38.620 then they can record it. 00:39:38.620 --> 00:39:39.453 Absolutely. 00:39:39.453 --> 00:39:42.093 And they would be required to come back and do so. 00:39:42.093 --> 00:39:44.450 Yes, they would be required to report what broke. 00:39:44.450 --> 00:39:45.283 Thank you. 00:39:47.660 --> 00:39:52.500 We've included the graph on the lower left hand corner 00:39:52.500 --> 00:39:54.650 of slide three there for the last several years. 00:39:54.650 --> 00:39:57.530 And what it does is look at certain key variables, 00:39:57.530 --> 00:39:59.280 the load, the wind, 00:39:59.280 --> 00:40:02.170 the solar, and the thermal unit outages 00:40:02.170 --> 00:40:04.440 at different days of the year, 00:40:04.440 --> 00:40:07.410 particularly at the time of the new June peak 00:40:07.410 --> 00:40:09.040 at the time of the new September peak 00:40:09.040 --> 00:40:10.690 at the time of the annual peak. 00:40:10.690 --> 00:40:13.450 And then also kind of that tight day in June that we had, 00:40:13.450 --> 00:40:15.053 and you can kind of see the, 00:40:15.053 --> 00:40:18.090 how those different variables varied 00:40:18.090 --> 00:40:19.410 across those different days 00:40:19.410 --> 00:40:22.660 and compare them to the peak peak time last year. 00:40:22.660 --> 00:40:24.240 And so I don't really have anything 00:40:24.240 --> 00:40:26.150 I specifically want to point out on that graph, 00:40:26.150 --> 00:40:28.430 but we're providing it because we have it each year 00:40:28.430 --> 00:40:29.330 and it's, 00:40:29.330 --> 00:40:31.680 there's some continuity there that's important. 00:40:33.156 --> 00:40:34.900 The final thing I want to note this, 00:40:34.900 --> 00:40:38.160 for this summer is that we did operate more conservatively, 00:40:38.160 --> 00:40:42.200 keeping more resources available in reserve online 00:40:42.200 --> 00:40:44.540 and also in making those available 00:40:44.540 --> 00:40:47.250 either through additional ancillary service quantities 00:40:47.250 --> 00:40:50.670 that we bought or through reliability unit commitments, 00:40:50.670 --> 00:40:53.516 basically telling additional units to start up. 00:40:53.516 --> 00:40:56.460 You can see from the graph on the upper right, 00:40:56.460 --> 00:40:58.930 that we bought a higher amount 00:40:58.930 --> 00:41:00.540 of ancillary services in July, 00:41:00.540 --> 00:41:03.670 and then incrementally stepped that up in August 00:41:03.670 --> 00:41:07.270 to kind of adjust more of that additional capacity 00:41:07.270 --> 00:41:08.980 over into the ancillary services 00:41:08.980 --> 00:41:12.213 rather than having to do this reliability in commitments. 00:41:13.901 --> 00:41:15.150 And the other thing I guess I should note in that graph, 00:41:15.150 --> 00:41:17.210 is that those numbers seem very high, 00:41:17.210 --> 00:41:18.890 but what that is is kind of the addition 00:41:18.890 --> 00:41:22.890 of all the extra megawatts over the course of a typical day. 00:41:22.890 --> 00:41:23.730 So the way to think about it 00:41:23.730 --> 00:41:28.220 is if we were buying 5,000 extra megawatts each hour, 00:41:28.220 --> 00:41:31.950 over 24 hours, that would sum up to about 220,000. 00:41:31.950 --> 00:41:34.093 So that's the way to think about that. 00:41:34.982 --> 00:41:35.840 Point. 00:41:35.840 --> 00:41:37.080 You finished on that? 00:41:37.080 --> 00:41:37.913 Yes, sir. 00:41:37.913 --> 00:41:40.060 One other quick comment on the thermal outages graph 00:41:40.060 --> 00:41:41.573 on the left of that slide. 00:41:42.570 --> 00:41:45.743 When you noted the thermal unit, unplanned outages. 00:41:47.140 --> 00:41:49.880 Unplanned outages being, it broke, we weren't, 00:41:49.880 --> 00:41:51.250 machinery broken in process 00:41:51.250 --> 00:41:54.571 that were below 6,000 megawatts 00:41:54.571 --> 00:41:57.923 on dates with high net peak demand. 00:41:58.820 --> 00:42:05.500 Just for context, 6,000 megawatts is like, 00:42:05.500 --> 00:42:06.333 check my math here, 00:42:06.333 --> 00:42:09.170 but I think that's less than 10% of the total thermal fleet. 00:42:09.170 --> 00:42:10.355 Correct.Correct. 00:42:10.355 --> 00:42:13.650 So on those high net peak demand days 00:42:13.650 --> 00:42:18.040 when demand was high, 90% of the fleet was still operating. 00:42:18.040 --> 00:42:18.873 Correct. 00:42:18.873 --> 00:42:19.706 Okay. 00:42:19.706 --> 00:42:21.353 Just want to make sure we got some context around that. 00:42:23.710 --> 00:42:24.788 Okay. 00:42:24.788 --> 00:42:26.810 And that's all I have on from an operational perspective, 00:42:26.810 --> 00:42:28.710 turn it over to Kenan. 00:42:28.710 --> 00:42:32.480 Good morning on a Kenan Ogelman with ERCOT. 00:42:32.480 --> 00:42:36.740 So I have four key things that I wanted to share with you. 00:42:36.740 --> 00:42:40.730 First one is that we had a relatively cool summer 00:42:40.730 --> 00:42:43.580 and the low cap was in effect. 00:42:43.580 --> 00:42:46.700 So on just generally speaking, 00:42:46.700 --> 00:42:51.700 prices were relatively low or normal. 00:42:52.760 --> 00:42:56.600 There wasn't a lot of spikes in the market. 00:42:56.600 --> 00:43:00.060 We also did not have any mass transitions 00:43:00.060 --> 00:43:02.750 or anything where customers are moving 00:43:02.750 --> 00:43:04.930 to a provider of last resort 00:43:04.930 --> 00:43:06.930 or anything like that during the summer, 00:43:08.536 --> 00:43:11.590 ERCOT did commit, as Dan pointed out, 00:43:11.590 --> 00:43:15.100 more resources through reliability unit commitment 00:43:15.100 --> 00:43:17.510 than we have in previous summers 00:43:17.510 --> 00:43:22.220 and non-spend, reserve service priced out a lot higher 00:43:22.220 --> 00:43:25.350 than we had seen in previous summers. 00:43:25.350 --> 00:43:30.040 So as I go through each of those, the first, 00:43:30.040 --> 00:43:35.650 the next slide, which is slide six, 00:43:35.650 --> 00:43:38.390 it just shows the increase in RUC. 00:43:38.390 --> 00:43:43.360 And it also shows you how much of that RUC commitment 00:43:43.360 --> 00:43:46.560 was bought back by the resource, 00:43:46.560 --> 00:43:50.420 which is in this for this summer, relatively small, 00:43:50.420 --> 00:43:53.040 and that's driven by the market clearing prices. 00:43:53.040 --> 00:43:57.810 So if there was a opportunity to make better profits 00:43:57.810 --> 00:44:01.238 by buying the unit back and letting it be a market unit 00:44:01.238 --> 00:44:03.140 entities would do that. 00:44:03.140 --> 00:44:04.830 But when they're low prices, 00:44:04.830 --> 00:44:09.830 they would rather take the make whole and cover their costs. 00:44:10.210 --> 00:44:12.270 So we RUC-ed a lot. 00:44:12.270 --> 00:44:15.330 And very few of those reliability unit commitments 00:44:15.330 --> 00:44:19.130 were bought back by the market participants. 00:44:19.130 --> 00:44:20.880 Just to paint the picture, Kenan, 00:44:22.080 --> 00:44:23.223 what was, 00:44:23.223 --> 00:44:25.110 and you may know off the top of your head, 00:44:25.110 --> 00:44:26.100 I won't use 2020, 00:44:26.100 --> 00:44:29.400 but 2019 was a hot year, high prices too. 00:44:29.400 --> 00:44:30.980 $9,000 was cap. 00:44:30.980 --> 00:44:32.420 It was achieved. 00:44:32.420 --> 00:44:35.637 What were your RUC hours in June and August 00:44:35.637 --> 00:44:37.573 compared to this? 00:44:39.670 --> 00:44:44.600 In 2019, they were very small in June and August, 00:44:44.600 --> 00:44:47.230 much smaller than even 2020. 00:44:47.230 --> 00:44:49.770 I don't have a exact number for you, 00:44:49.770 --> 00:44:50.990 but in this graph 00:44:50.990 --> 00:44:53.018 you can see through Less than 100? 00:44:53.018 --> 00:44:53.851 I'm sorry? 00:44:53.851 --> 00:44:54.684 Was it less than 100? 00:44:54.684 --> 00:44:55.520 That sounds correct. 00:44:55.520 --> 00:44:56.807 Okay. 00:44:56.807 --> 00:44:58.981 Go ahead. 00:44:58.981 --> 00:45:02.593 So would the higher prices in 2019? 00:45:04.650 --> 00:45:07.410 It sounds like to me, the higher prices in 2019 00:45:07.410 --> 00:45:10.110 would have incented more generation to be available. 00:45:10.110 --> 00:45:13.490 So therefore ERCOT wouldn't have had to have RUC-ed as much. 00:45:13.490 --> 00:45:14.323 That that's correct. 00:45:14.323 --> 00:45:16.320 So I think there's two things going on. 00:45:16.320 --> 00:45:17.153 First, 00:45:17.153 --> 00:45:20.830 is that there's market incentives to commit. 00:45:20.830 --> 00:45:21.880 And then secondly, 00:45:21.880 --> 00:45:24.810 if even if you did not commit and were RUC-ed, 00:45:24.810 --> 00:45:28.010 there's an incentive to buy yourself out of that RUC. 00:45:28.010 --> 00:45:30.300 Versus this year when prices were lower 00:45:30.300 --> 00:45:33.150 and we had the L cap 2,500 in place, 00:45:33.150 --> 00:45:35.530 it might've made more economic sense 00:45:35.530 --> 00:45:39.253 to be part of the RUC process to at least get made whole. 00:45:40.260 --> 00:45:41.130 Yes. 00:45:41.130 --> 00:45:43.820 And because we're operating more conservatively, 00:45:43.820 --> 00:45:46.480 there's more capacity on the system 00:45:46.480 --> 00:45:49.690 and less likely to be high adders and things like that 00:45:49.690 --> 00:45:51.333 as you get near the peak. 00:45:55.290 --> 00:45:57.440 The next slide I was going to spend a little bit more time, 00:45:57.440 --> 00:46:00.980 is the real time hub price. 00:46:00.980 --> 00:46:02.730 And we tried to show this in two ways 00:46:02.730 --> 00:46:06.210 because we traditionally show kind of the whole year 00:46:06.210 --> 00:46:10.880 and February really dwarfs the summer months. 00:46:10.880 --> 00:46:13.320 So we kinda took that out. 00:46:13.320 --> 00:46:16.700 You can see that with the exception of August, 00:46:16.700 --> 00:46:21.090 prices were slightly higher in 20, I'm sorry, 00:46:21.090 --> 00:46:24.510 in 2021, then 2020, 00:46:24.510 --> 00:46:29.510 but 2020 was also a relatively mild summer. 00:46:31.240 --> 00:46:34.723 If I were to compare that to 2019, 00:46:36.340 --> 00:46:41.163 you would see that those average prices were much higher. 00:46:43.490 --> 00:46:44.797 Much higher than 2021? 00:46:44.797 --> 00:46:45.630 And Correct. 00:46:45.630 --> 00:46:46.463 Okay. 00:46:48.587 --> 00:46:51.020 And then the next slide is kind of 00:46:51.020 --> 00:46:56.020 a reality check that we do for ourselves 00:46:56.070 --> 00:46:57.500 in terms of convergence 00:46:57.500 --> 00:47:00.890 between the real time and the day ahead. 00:47:00.890 --> 00:47:01.723 So, 00:47:02.920 --> 00:47:05.750 the market's never going to always get something 00:47:05.750 --> 00:47:09.160 that is very different in real time right day ahead, 00:47:09.160 --> 00:47:11.950 or they might expect something to happen 00:47:11.950 --> 00:47:15.460 day ahead that does not happen in real time. 00:47:15.460 --> 00:47:17.580 So there can be daily differences, 00:47:17.580 --> 00:47:21.320 but ultimately you do want those markets to converge. 00:47:21.320 --> 00:47:24.130 There's usually a premium for the day ahead, 00:47:24.130 --> 00:47:27.630 but with kind of daily exceptions, 00:47:27.630 --> 00:47:30.100 you want those markets to converge. 00:47:30.100 --> 00:47:33.418 And the slide shows that on average, 00:47:33.418 --> 00:47:37.570 those markets do converge with some exceptions 00:47:38.470 --> 00:47:40.640 that the market wasn't able to foresee 00:47:40.640 --> 00:47:42.033 either in real time, 00:47:42.890 --> 00:47:47.150 either something happened like a unit went out 00:47:47.150 --> 00:47:51.123 or the wind forecast was off. 00:47:52.229 --> 00:47:54.610 So that could drive expectations 00:47:54.610 --> 00:47:57.690 either for the prices to be higher or lower 00:47:57.690 --> 00:48:00.410 than they really turn out to be in real time. 00:48:00.410 --> 00:48:05.410 So what happened on the range of August 29th through 31st? 00:48:05.810 --> 00:48:07.660 Cause that's a real divergence there. 00:48:08.550 --> 00:48:11.820 I mean that there is nothing comparable on your chart 00:48:15.523 --> 00:48:16.356 to that period. 00:48:17.391 --> 00:48:18.713 So. 00:48:20.470 --> 00:48:22.070 Saying day ahead was higher than 00:48:22.070 --> 00:48:23.222 real time? Yes, sir. 00:48:23.222 --> 00:48:24.055 At the end of August, 00:48:24.055 --> 00:48:25.650 you could also look at early July 00:48:26.711 --> 00:48:28.970 where real time was way ahead. Yeah, so 00:48:28.970 --> 00:48:30.570 Yeah, that's true. 00:48:30.570 --> 00:48:34.070 But as you can see at one point one 00:48:34.070 --> 00:48:36.510 goes above the other and then they come back. 00:48:36.510 --> 00:48:39.283 So on those days, 00:48:40.170 --> 00:48:45.000 I believe both the load forecast was off, 00:48:45.855 --> 00:48:48.220 as well as the net load forecast. 00:48:48.220 --> 00:48:51.150 So day ahead, 00:48:51.150 --> 00:48:53.660 expectations could have been very different 00:48:53.660 --> 00:48:55.840 than what we actually needed in real time. 00:48:55.840 --> 00:48:56.673 Okay. 00:49:00.740 --> 00:49:04.683 The next slide I have for you is about the non-spend. 00:49:05.670 --> 00:49:09.090 And so when you think about ancillary services, 00:49:09.090 --> 00:49:12.630 I think there's two things that drive the price 00:49:12.630 --> 00:49:13.750 that it will clear out. 00:49:13.750 --> 00:49:14.833 First is, 00:49:17.249 --> 00:49:20.250 the sale of energy is your alternative 00:49:20.250 --> 00:49:21.890 or your opportunity costs. 00:49:21.890 --> 00:49:24.994 So if you go back to the previous year in August, 00:49:24.994 --> 00:49:27.590 when the energy prices were high, 00:49:27.590 --> 00:49:31.270 you see all the ancillary services being high as well. 00:49:31.270 --> 00:49:33.320 So that's one sense of reference, 00:49:33.320 --> 00:49:38.320 But what this graph shows is also when you procure more, 00:49:38.320 --> 00:49:41.630 it takes both the market some time to adjust 00:49:41.630 --> 00:49:45.880 and it moves up the merit order of that stack 00:49:45.880 --> 00:49:49.090 and the price goes up. 00:49:49.090 --> 00:49:51.890 So you see in the summer months, 00:49:51.890 --> 00:49:54.030 ancillary service prices going up 00:49:54.030 --> 00:49:57.030 and particularly the price of non-spend 00:49:57.030 --> 00:49:59.449 increasing relative to other months, 00:49:59.449 --> 00:50:03.110 this is driven by our additional procurement 00:50:03.110 --> 00:50:05.483 of the non spin reserve service. 00:50:07.430 --> 00:50:09.470 Important note about the market responding 00:50:09.470 --> 00:50:13.640 to essentially increased demand for non spend reserves 00:50:13.640 --> 00:50:16.020 or it's additional margin of safety, 00:50:16.020 --> 00:50:19.293 increased demand from ERCOT on the same amount of supply. 00:50:20.750 --> 00:50:24.960 I also note for fellow Commissioners and the general public 00:50:24.960 --> 00:50:28.360 that the market responds, 00:50:28.360 --> 00:50:30.210 and sometimes it responds slowly, 00:50:30.210 --> 00:50:32.390 but sometimes it can respond quickly. 00:50:32.390 --> 00:50:35.993 I think the, by way of example, the first night, 00:50:35.993 --> 00:50:39.220 I think July 12th was the first night 00:50:39.220 --> 00:50:42.590 that the new non-spend procurement was formalized. 00:50:42.590 --> 00:50:43.643 I think the, 00:50:45.040 --> 00:50:47.792 our ending 10:00 PM, 11:00 PM, 00:50:47.792 --> 00:50:49.830 something like that, 00:50:49.830 --> 00:50:53.430 the first time the additional non-spend was bought 00:50:53.430 --> 00:50:56.550 it cleared at like $1,100 a megawatt, 00:50:56.550 --> 00:50:58.850 which should never happen in the middle of the night 00:50:58.850 --> 00:51:02.096 because all the gas turbines were throttling down 00:51:02.096 --> 00:51:04.040 to go overnight. 00:51:04.040 --> 00:51:06.750 And we don't want consumers paying that price 00:51:06.750 --> 00:51:08.750 in the middle of the night, obviously. 00:51:08.750 --> 00:51:11.373 The next night it cleared at $17, 00:51:12.440 --> 00:51:14.030 which is exactly what we want 00:51:14.030 --> 00:51:16.363 the markets to respond. 00:51:17.410 --> 00:51:20.060 People kept the generators onto another couple hours 00:51:20.060 --> 00:51:21.260 because they knew there was a market there. 00:51:21.260 --> 00:51:23.580 And so I think that's a great example of, 00:51:23.580 --> 00:51:25.130 as we go through this redesign process, 00:51:25.130 --> 00:51:28.080 exactly how we want to, 00:51:28.080 --> 00:51:30.050 we want to put out the results we want 00:51:30.050 --> 00:51:32.721 and let the market respond to the most efficiently possible. 00:51:32.721 --> 00:51:33.750 Right. 00:51:33.750 --> 00:51:35.377 Glad to see it working that way. 00:51:35.377 --> 00:51:38.530 And there is one additional step that we're taking 00:51:38.530 --> 00:51:42.960 to provide additional liquidity in the non-spend space, 00:51:42.960 --> 00:51:47.550 which is to allow additional load participation 00:51:47.550 --> 00:51:49.970 that doesn't currently exist. 00:51:49.970 --> 00:51:54.670 So that is notable protocol revision request 00:51:54.670 --> 00:51:57.930 passed the technical advisory committee 00:51:57.930 --> 00:51:59.140 at their last meeting. 00:51:59.140 --> 00:52:00.950 And we'll go before the board 00:52:00.950 --> 00:52:03.690 and come before the Public Utility Commission. 00:52:03.690 --> 00:52:05.520 What's the MPRR number on that? 00:52:05.520 --> 00:52:06.520 It is 00:52:06.520 --> 00:52:07.873 2 93. 00:52:07.873 --> 00:52:08.967 2 93. 00:52:08.967 --> 00:52:09.800 (laughter) 00:52:09.800 --> 00:52:11.330 I've heard a lot about it. 00:52:11.330 --> 00:52:12.750 So Kenan, can you, 00:52:12.750 --> 00:52:16.343 I know it's past tack and it's on its way to the board. 00:52:16.343 --> 00:52:18.190 Can you explain a little bit more 00:52:18.190 --> 00:52:19.290 what the benefits are 00:52:19.290 --> 00:52:22.510 of including that additional load to non spend? 00:52:22.510 --> 00:52:24.160 I know ERCOT really wants us in place 00:52:24.160 --> 00:52:26.650 by the summer of 2022. 00:52:26.650 --> 00:52:28.460 And I would just like to understand a little bit more, 00:52:28.460 --> 00:52:30.050 just you don't have to get down into the detail, 00:52:30.050 --> 00:52:32.470 but just really what is the goal? 00:52:32.470 --> 00:52:34.113 What is the benefit? 00:52:35.269 --> 00:52:36.102 Well, 00:52:36.102 --> 00:52:37.850 I think I'm at a very high level 00:52:37.850 --> 00:52:41.350 there's no good reason not to allow load to participate. 00:52:41.350 --> 00:52:42.720 So from a 00:52:44.670 --> 00:52:47.440 economic efficiency you want all the resources 00:52:47.440 --> 00:52:50.670 that can provide value in that space 00:52:50.670 --> 00:52:52.950 to provide value in that space. 00:52:52.950 --> 00:52:57.100 So I think that is a primary goal, 00:52:57.100 --> 00:53:00.710 but secondarily, in terms of a market response, 00:53:00.710 --> 00:53:03.350 it adds more liquidity to that market 00:53:03.350 --> 00:53:07.130 where it will clear at a value 00:53:07.130 --> 00:53:10.410 that reflects both the supply, the load side, 00:53:10.410 --> 00:53:14.300 and the generation side in that market. 00:53:14.300 --> 00:53:17.590 So those are the two key reasons 00:53:17.590 --> 00:53:20.573 why we really wanted to move forward with that. 00:53:21.786 --> 00:53:23.220 Well, non spend, 00:53:23.220 --> 00:53:25.830 as we've seen, is a very valuable tool 00:53:25.830 --> 00:53:27.550 to maintain reliability, 00:53:27.550 --> 00:53:28.650 I think it's very important 00:53:28.650 --> 00:53:31.107 as we move forward with this MPRR, 00:53:31.107 --> 00:53:33.119 And I know that there's going to be a workshop 00:53:33.119 --> 00:53:36.562 that will address other issues related to this MPRR, 00:53:36.562 --> 00:53:40.470 that we delicately, well, 00:53:40.470 --> 00:53:43.240 deliberately and thoughtfully look at this issue 00:53:43.240 --> 00:53:45.790 because what we don't want are unintended consequences 00:53:45.790 --> 00:53:48.690 to our non spend product. 00:53:48.690 --> 00:53:50.640 And so we have to be very mindful of that 00:53:50.640 --> 00:53:52.480 as we've relied heavily on non spend 00:53:52.480 --> 00:53:55.220 this summer in our conservative operations, 00:53:55.220 --> 00:53:58.050 that somehow in the middle of tweaking this around 00:53:58.050 --> 00:54:00.766 to bring in more load, which I think is, 00:54:00.766 --> 00:54:02.995 you know, pragmatic and, 00:54:02.995 --> 00:54:04.990 and something that we should look at, 00:54:04.990 --> 00:54:06.440 we don't want to end up in a position 00:54:06.440 --> 00:54:08.120 where we have unintended consequences 00:54:08.120 --> 00:54:10.450 on a very valuable non spend product 00:54:12.270 --> 00:54:13.720 as we move forward to, you know, 00:54:13.720 --> 00:54:16.924 especially into the winter 00:54:16.924 --> 00:54:19.180 and this fall really where I think 00:54:19.180 --> 00:54:23.510 we will hear from ERCOT that ERCOT will continue 00:54:23.510 --> 00:54:26.360 to use their conservative operations through this Fall 00:54:26.360 --> 00:54:28.510 as a result of the maintenance shoulder season. 00:54:28.510 --> 00:54:31.410 And so non spend will continue to be very important 00:54:31.410 --> 00:54:33.400 in those conservative operations in the winter 00:54:33.400 --> 00:54:35.750 and year-round or liability, quite frankly, 00:54:35.750 --> 00:54:37.890 especially with conservative operations. 00:54:37.890 --> 00:54:38.820 So want to make sure 00:54:38.820 --> 00:54:42.305 that whatever is happening with that MPRR, 00:54:42.305 --> 00:54:43.942 that there's not any unintended consequences 00:54:43.942 --> 00:54:45.840 on that valuable product 00:54:45.840 --> 00:54:49.653 and the participants that have been providing that product. 00:54:51.738 --> 00:54:53.630 They're actually, 00:54:53.630 --> 00:54:55.850 some of these items were discussed at TAC 00:54:55.850 --> 00:54:58.502 and there is going to be a workshop scheduled 00:54:58.502 --> 00:55:02.710 to work through some of those issues, for example, 00:55:02.710 --> 00:55:04.750 the deployment order. 00:55:04.750 --> 00:55:09.333 And some of those types of things were raised as issues. 00:55:10.863 --> 00:55:14.830 And the only thing I would share with you, additionally, 00:55:14.830 --> 00:55:18.390 is some of those changes are going to be complex. 00:55:18.390 --> 00:55:20.810 So we will have to make trade-off decisions 00:55:20.810 --> 00:55:23.110 between getting something in this summer 00:55:23.110 --> 00:55:26.690 and letting those other features come in later 00:55:26.690 --> 00:55:29.517 versus trying to do it all at once. 00:55:29.517 --> 00:55:30.723 On that, 00:55:31.800 --> 00:55:34.580 what's the no later than to effect the Summer 00:55:34.580 --> 00:55:36.370 that we need to have this in place 00:55:37.220 --> 00:55:39.210 as an MPRR modification? 00:55:39.210 --> 00:55:41.223 Is it before the May auctions for? 00:55:42.430 --> 00:55:43.810 So non spend is auctioned 00:55:43.810 --> 00:55:45.394 on a daily basis. That's right 00:55:45.394 --> 00:55:46.257 it's on a daily basis. 00:55:46.257 --> 00:55:47.090 Yeah. 00:55:47.090 --> 00:55:48.070 So there isn't 00:55:48.070 --> 00:55:51.310 What's the optimal market absorption. 00:55:51.310 --> 00:55:55.010 I mean, when do participants nominally like to have this? 00:55:55.010 --> 00:55:58.770 It would probably be nice to have it in place and in May, 00:55:58.770 --> 00:56:01.400 but what I would caution you is that 00:56:01.400 --> 00:56:05.020 the very resources that would be implementing securitization 00:56:05.020 --> 00:56:06.983 on the settlement side, Yeah. 00:56:08.039 --> 00:56:10.030 We'll have to work on that as well. 00:56:10.030 --> 00:56:13.210 So, my expectation is, 00:56:13.210 --> 00:56:15.360 and I'm sorry to bring bad news, 00:56:15.360 --> 00:56:18.420 but I would expect something more like the middle of summer 00:56:18.420 --> 00:56:21.713 where we actually are able to get this in play. 00:56:23.218 --> 00:56:24.051 Okay. 00:56:25.990 --> 00:56:28.003 We can, we can work on that. 00:56:29.294 --> 00:56:30.160 (laughter) 00:56:30.160 --> 00:56:31.460 And then I have What did you say there? 00:56:31.460 --> 00:56:32.840 We can work on that. 00:56:32.840 --> 00:56:33.673 Agreed. 00:56:33.673 --> 00:56:35.570 I do have one last slide, 00:56:35.570 --> 00:56:37.980 and this is just to kind of summary 00:56:37.980 --> 00:56:42.133 of the credit collateral activity. 00:56:43.950 --> 00:56:46.470 In truth, the summer was relatively calm. 00:56:46.470 --> 00:56:50.590 You do see one spike in collateral calls. 00:56:50.590 --> 00:56:55.590 That is actually a result of true up invoices 00:56:56.350 --> 00:57:00.240 that we sent out that had to do with the February storm 00:57:00.240 --> 00:57:03.610 and not anything that happened during the summer. 00:57:03.610 --> 00:57:06.718 So as we got better meter data 00:57:06.718 --> 00:57:11.493 and were able to assign those costs better, 00:57:11.493 --> 00:57:14.099 there was a true up that happened in the Summer 00:57:14.099 --> 00:57:17.520 that triggered collateral calls 00:57:17.520 --> 00:57:19.860 that were what I would describe as a somewhat, 00:57:19.860 --> 00:57:22.320 a little bit of a surprise to the stakeholders. 00:57:22.320 --> 00:57:24.060 So it took them a little bit of time 00:57:24.060 --> 00:57:26.433 to post the collateral associated with that. 00:57:28.500 --> 00:57:29.333 All right, 00:57:29.333 --> 00:57:30.417 thank you, sir. 00:57:30.417 --> 00:57:31.250 Yeah, Dan. 00:57:31.250 --> 00:57:33.750 So I have one more issue I wanted to discuss with you. 00:57:35.380 --> 00:57:38.300 In the Fall, in September October timeframe, 00:57:38.300 --> 00:57:41.350 typically the demand on the system is lower 00:57:41.350 --> 00:57:44.090 because people are neither running their air conditioners 00:57:44.090 --> 00:57:45.650 nor their heaters. 00:57:45.650 --> 00:57:47.440 And so that's really the time of year 00:57:47.440 --> 00:57:51.000 when we see a lot of generating units 00:57:51.000 --> 00:57:54.373 that are taking planned outages to get ready for winter. 00:57:55.380 --> 00:57:56.980 And this year, we're seeing 00:57:56.980 --> 00:57:59.710 a significantly higher number of these plan 00:57:59.710 --> 00:58:02.080 generation outages to get ready for winter 00:58:02.080 --> 00:58:04.260 that are scheduled during this fall season, 00:58:04.260 --> 00:58:06.960 compared to what we saw at the same time last year 00:58:06.960 --> 00:58:09.081 And for previous years. 00:58:09.081 --> 00:58:11.666 In fact, to the tune of, you know, 00:58:11.666 --> 00:58:14.450 I think they were about 10 gigawatts last year, 00:58:14.450 --> 00:58:16.680 and it's up to about 18 gigawatts 00:58:16.680 --> 00:58:19.793 at the highest time during the course of this Fall. 00:58:21.140 --> 00:58:23.460 So although the demand on the system is generally lower 00:58:23.460 --> 00:58:24.430 in the Fall, 00:58:24.430 --> 00:58:27.440 if we do have days with unseasonably warm 00:58:27.440 --> 00:58:30.960 or toward the end of the Fall, cold temperatures, 00:58:30.960 --> 00:58:32.600 and we also have low wind 00:58:32.600 --> 00:58:36.020 and higher than expected unplanned generation outages 00:58:36.020 --> 00:58:37.130 for some reason, 00:58:37.130 --> 00:58:40.530 we could also have some tight conditions in the Fall. 00:58:40.530 --> 00:58:42.000 As Commissioner Cobos mentioned earlier, 00:58:42.000 --> 00:58:44.020 it's kind of a year round problem 00:58:44.020 --> 00:58:46.510 because people have to fix their plans. 00:58:46.510 --> 00:58:50.160 ERCOT will soon be filing this revision request 00:58:50.160 --> 00:58:51.430 that I mentioned earlier to implement 00:58:51.430 --> 00:58:54.720 the provisions of SB 3 that provide for ERCOT 00:58:54.720 --> 00:58:57.970 to approve or deny all generation outages. 00:58:57.970 --> 00:58:58.803 For now, 00:58:58.803 --> 00:59:02.510 when we see these tight conditions developing a few days out 00:59:02.510 --> 00:59:05.420 we'll issue what's called an advance action notice. 00:59:05.420 --> 00:59:07.640 Basically, a notification out to the market 00:59:07.640 --> 00:59:09.240 to let the generators have the opportunity 00:59:09.240 --> 00:59:11.020 to move those outages around 00:59:11.020 --> 00:59:13.070 so that we have enough capacity. 00:59:13.070 --> 00:59:14.190 And if that doesn't work, 00:59:14.190 --> 00:59:16.410 then we'll use our existing 00:59:16.410 --> 00:59:19.140 outage schedule adjustment process 00:59:19.140 --> 00:59:23.310 to either delay or cancel some of those generation outages 00:59:23.310 --> 00:59:24.143 to make sure that 00:59:24.143 --> 00:59:26.876 we've got enough capacity available each day. 00:59:26.876 --> 00:59:29.570 But this process also allows those generators 00:59:29.570 --> 00:59:31.250 to continue to take the outages. 00:59:31.250 --> 00:59:33.440 When we do have milder conditions 00:59:33.440 --> 00:59:35.544 in order to get ready for Winter. 00:59:35.544 --> 00:59:38.070 In addition, as was mentioned, 00:59:38.070 --> 00:59:39.130 we're planning to continue 00:59:39.130 --> 00:59:40.900 more conservative operations approach 00:59:40.900 --> 00:59:43.160 that was implemented this summer 00:59:43.160 --> 00:59:44.820 throughout the Fall and going forward, 00:59:44.820 --> 00:59:47.110 so that we'll have enough sufficient generation 00:59:47.110 --> 00:59:48.273 available to do that. 00:59:49.560 --> 00:59:50.393 Just wanted to add that. 00:59:50.393 --> 00:59:51.226 Yeah. Important update. 00:59:51.226 --> 00:59:52.350 And the bottom line for the public 00:59:52.350 --> 00:59:54.600 is one reliability is paramount 00:59:54.600 --> 00:59:56.971 and will continue to be paramount. 00:59:56.971 --> 00:59:59.140 Second, we need to prepare for winter. 00:59:59.140 --> 01:00:02.442 These generators need to do oil changes, tire rotations, 01:00:02.442 --> 01:00:06.123 et cetera, just like any other piece of machinery, 01:00:07.156 --> 01:00:09.610 which means that it's, 01:00:09.610 --> 01:00:11.360 we don't get a free pass this Fall. 01:00:11.360 --> 01:00:13.522 It's still going to be tight, 01:00:13.522 --> 01:00:17.620 but ERCOT has mechanisms in place 01:00:17.620 --> 01:00:21.043 and the authority to cancel an outage, 01:00:21.043 --> 01:00:24.450 adjust that maintenance schedule. 01:00:24.450 --> 01:00:25.520 If conditions look tight, 01:00:25.520 --> 01:00:27.650 they can make sure those thermal generators 01:00:27.650 --> 01:00:30.353 will be there if we need them 01:00:30.353 --> 01:00:33.820 and they can move maintenance to a later date. 01:00:33.820 --> 01:00:34.950 Correct. 01:00:34.950 --> 01:00:35.783 Thank you, sir. 01:00:35.783 --> 01:00:36.810 Very important point. 01:00:37.842 --> 01:00:38.675 And ERCOT will continue 01:00:38.675 --> 01:00:41.770 to use their conservative operations tools. 01:00:41.770 --> 01:00:42.603 Absolutely. 01:00:42.603 --> 01:00:43.436 Right. 01:00:43.436 --> 01:00:44.269 In fact, 01:00:44.269 --> 01:00:45.102 we're incorporating the need to do that 01:00:45.957 --> 01:00:46.790 into this process of making sure 01:00:46.790 --> 01:00:49.260 we've got enough generation not on outage. 01:00:49.260 --> 01:00:50.410 Excellent. 01:00:50.410 --> 01:00:51.450 Thank you very much. 01:00:51.450 --> 01:00:54.550 Any other comments or questions for the ERCOT team? 01:00:54.550 --> 01:00:56.140 All right. Thank you, gentlemen. 01:00:56.140 --> 01:00:57.300 Thank you. 01:00:57.300 --> 01:01:00.210 We also have a memo filed from Commissioner Cobos 01:01:00.210 --> 01:01:01.800 on this item. 01:01:01.800 --> 01:01:05.320 So I will turn it over to her to lay out her memo. 01:01:05.320 --> 01:01:06.350 All right. 01:01:06.350 --> 01:01:07.183 Well, 01:01:07.183 --> 01:01:09.890 in a follow-up discussion to our open meeting 01:01:09.890 --> 01:01:13.380 on September 23rd and our order 01:01:13.380 --> 01:01:17.187 to stack AP slash ATT and Sharyland 01:01:17.187 --> 01:01:21.130 to build the second circuit loop of second circuit. 01:01:21.130 --> 01:01:25.050 New second circuit line and loop facilities 01:01:25.050 --> 01:01:26.750 wanted to file this memo. 01:01:26.750 --> 01:01:28.700 I think as a matter of due diligence, 01:01:28.700 --> 01:01:29.648 we need to ensure that we 01:01:29.648 --> 01:01:32.733 are getting progress reports from the utilities, 01:01:33.597 --> 01:01:36.190 with regard to their construction of the second circuit 01:01:36.190 --> 01:01:37.950 and the loop facilities. 01:01:37.950 --> 01:01:40.573 We, as we discussed last open meeting, 01:01:41.480 --> 01:01:46.480 these facilities are intended to serve as a interim measure 01:01:49.250 --> 01:01:51.020 while we await a more long-term solution 01:01:51.020 --> 01:01:51.930 for the Rio Grande Valley. 01:01:51.930 --> 01:01:54.900 And I just don't want this to slip, you know, 01:01:54.900 --> 01:01:57.730 behind schedule and not remain a priority 01:01:57.730 --> 01:02:01.330 for the companies that are building these facilities. 01:02:01.330 --> 01:02:04.444 So I have filed this memo for your consideration 01:02:04.444 --> 01:02:08.370 to require at my request, 01:02:08.370 --> 01:02:10.830 quarterly progress reports from the utilities 01:02:10.830 --> 01:02:13.480 that are responsible for these facilities 01:02:13.480 --> 01:02:15.880 to provide us with information 01:02:15.880 --> 01:02:19.080 on how things are progressing with those second circuit 01:02:19.080 --> 01:02:21.000 and loop facilities being built out 01:02:21.000 --> 01:02:21.940 in the Rio Grande Valley. 01:02:21.940 --> 01:02:23.620 It's important for liability. 01:02:23.620 --> 01:02:25.500 And I just want to make sure that we stay on top of it 01:02:25.500 --> 01:02:28.353 since we ordered the construction of these facilities. 01:02:29.370 --> 01:02:30.377 Absolutely. 01:02:30.377 --> 01:02:33.990 Agree with both the spirit 01:02:33.990 --> 01:02:37.400 and the technical elements of your memo. 01:02:37.400 --> 01:02:40.250 This is a project that is critical for the state, 01:02:40.250 --> 01:02:41.410 and it's not something this Commission 01:02:41.410 --> 01:02:45.493 is just going to forget about and hope it works out. 01:02:46.963 --> 01:02:51.393 And so thank you for ensuring that we'll keep an ongoing, 01:02:55.040 --> 01:02:56.630 we will continue to monitor the progress 01:02:56.630 --> 01:02:59.080 and do everything we can 01:02:59.080 --> 01:03:01.600 to support the relevant stakeholders 01:03:01.600 --> 01:03:04.900 while also holding them accountable. 01:03:04.900 --> 01:03:05.770 Great. 01:03:05.770 --> 01:03:08.570 And so, Steve and I asked for staff 01:03:08.570 --> 01:03:10.510 to open a new project 01:03:10.510 --> 01:03:12.800 for these transmission related matters 01:03:12.800 --> 01:03:15.004 that I believe staff has opened. 01:03:15.004 --> 01:03:16.126 And that's where I would like 01:03:16.126 --> 01:03:18.205 the quarterly progress reports to be filed. 01:03:18.205 --> 01:03:19.310 Yes, we have filed open 01:03:19.310 --> 01:03:21.333 that is Project 5 2 6 8 2. 01:03:24.865 --> 01:03:25.832 And I would just ask 01:03:25.832 --> 01:03:28.650 because the order directing the building 01:03:28.650 --> 01:03:30.910 of those transmission lines has not completed it 01:03:30.910 --> 01:03:32.760 through the signing process and whatnot. 01:03:32.760 --> 01:03:37.760 Would you like to amend that to include 01:03:38.450 --> 01:03:43.300 these progress reports requirements in that order? 01:03:43.300 --> 01:03:46.597 Maybe we can pull it back in, add that into it and. 01:03:47.520 --> 01:03:48.550 Yes. 01:03:48.550 --> 01:03:49.724 Makes sense. 01:03:49.724 --> 01:03:50.557 Yes. 01:03:50.557 --> 01:03:51.950 And in that order, 01:03:51.950 --> 01:03:54.270 that requires those quarterly progress reports 01:03:54.270 --> 01:03:56.770 to make the first one being due November 1st. 01:03:56.770 --> 01:03:58.060 November 1st 01:03:58.060 --> 01:04:00.760 Did you say 5 2 6 0 2? 01:04:02.219 --> 01:04:03.480 5 2 6 8 2. 01:04:03.480 --> 01:04:04.313 8 2. 01:04:06.420 --> 01:04:08.240 And then we will, now we have this open, 01:04:08.240 --> 01:04:11.530 we will transfer all the previous documents. 01:04:11.530 --> 01:04:13.890 You'd requested us to put in there. 01:04:13.890 --> 01:04:16.090 If we haven't already done it, I'm not sure, 01:04:17.480 --> 01:04:18.640 but they will be there. 01:04:18.640 --> 01:04:20.050 Okay. 01:04:20.050 --> 01:04:23.210 And as a second item to this discussion, 01:04:23.210 --> 01:04:27.757 I requested that stack ATT slash AEP 01:04:28.627 --> 01:04:31.790 and Sharyland also file, 01:04:31.790 --> 01:04:36.400 make a filing in with respect to the CCN activities 01:04:36.400 --> 01:04:40.080 that would be required as a result of building 01:04:40.080 --> 01:04:42.380 the second circuit and the loop facilities. 01:04:42.380 --> 01:04:46.780 And I had sort of raised the issue at the last open meeting 01:04:46.780 --> 01:04:47.690 about, you know, 01:04:47.690 --> 01:04:49.735 whether whether a CCN amendment would be required. 01:04:49.735 --> 01:04:54.370 And if it was how quickly the companies can, 01:04:54.370 --> 01:04:56.300 would be able to file a CCN amendment 01:04:56.300 --> 01:04:58.550 or a CCN application at the Commission. 01:04:58.550 --> 01:05:02.990 And at my request, the parties have filed, 01:05:02.990 --> 01:05:04.730 made filings in 5 1 6 1 7, 01:05:04.730 --> 01:05:06.490 which will be transferred to the new project. 01:05:06.490 --> 01:05:11.490 And with respect to stack and ETTs letter, 01:05:12.240 --> 01:05:15.223 they have stated that they don't need a CCN amendment. 01:05:16.100 --> 01:05:18.320 I just want to put a placeholder here 01:05:18.320 --> 01:05:21.730 and I appreciate the company's filing that information 01:05:21.730 --> 01:05:24.950 and the facts surrounding their determination. 01:05:24.950 --> 01:05:26.810 They don't need a CCN application, 01:05:26.810 --> 01:05:30.300 that is because the prior CCN application 01:05:30.300 --> 01:05:32.030 that was approved for the Commission 01:05:32.030 --> 01:05:34.360 will allow them to not have the CCN amendment 01:05:34.360 --> 01:05:36.780 or be required to file one with this. 01:05:36.780 --> 01:05:38.446 However, I do want to put a placeholder 01:05:38.446 --> 01:05:41.970 because there is a tangential docket 01:05:41.970 --> 01:05:44.357 that Commission staff is looking at right now. 01:05:44.357 --> 01:05:47.700 It is a docket number 5 26 10. 01:05:47.700 --> 01:05:52.700 And in that case stack has requested a determination as to 01:05:53.060 --> 01:05:55.990 when a CCN amendment would be required. 01:05:55.990 --> 01:05:58.620 And I think to make sure that we are moving 01:05:58.620 --> 01:06:00.340 all in a consistent direction 01:06:00.340 --> 01:06:03.033 and to, you know, level-set, 01:06:03.910 --> 01:06:06.900 I want for Steven to provide us an update 01:06:06.900 --> 01:06:08.770 on what's going on with that case, 01:06:08.770 --> 01:06:10.780 with respect to requesting briefing 01:06:10.780 --> 01:06:13.500 and ultimately getting a Commission determination 01:06:13.500 --> 01:06:17.100 when a CCN amendment is required 01:06:17.100 --> 01:06:19.280 with regard to a second circuit 01:06:19.280 --> 01:06:22.503 on a double circuit capable 3 45 transmission line. 01:06:24.010 --> 01:06:25.320 Yes ma'am. 01:06:25.320 --> 01:06:28.500 We discussed this case early this week, I guess, 01:06:28.500 --> 01:06:30.820 Monday and looking at the issue 01:06:30.820 --> 01:06:33.316 and also knowing the issue has been discussed 01:06:33.316 --> 01:06:38.130 in this arena, decided that this was an issue that 01:06:38.130 --> 01:06:39.730 the Commission needed to speak to 01:06:39.730 --> 01:06:42.300 and decided to issue a briefing order 01:06:42.300 --> 01:06:44.510 to request a threshold brief, 01:06:44.510 --> 01:06:47.400 a briefing on threshold issue in this case, 01:06:47.400 --> 01:06:50.683 which will have much broader implications, no doubt. 01:06:52.220 --> 01:06:54.720 I think the, the orders about done, 01:06:54.720 --> 01:06:55.720 we should get it out, 01:06:55.720 --> 01:06:57.730 I think given the timeline where we are, 01:06:57.730 --> 01:07:00.940 we would be looking at having that issue brought to you 01:07:00.940 --> 01:07:04.450 on the November 18th open meeting for resolution 01:07:04.450 --> 01:07:09.290 so that we can have the Commission definitively address 01:07:09.290 --> 01:07:13.320 when if a CCN is required in these circumstances or not. 01:07:13.320 --> 01:07:14.190 Okay. 01:07:14.190 --> 01:07:16.990 And with respect to Sharyland's filing, 01:07:16.990 --> 01:07:18.210 they have reiterated 01:07:18.210 --> 01:07:20.760 that their best time estimate is eight months. 01:07:20.760 --> 01:07:25.260 And so with respect to that timeline, 01:07:25.260 --> 01:07:27.373 I would like to include in the order, 01:07:28.650 --> 01:07:30.510 that order's construction, 01:07:30.510 --> 01:07:32.490 a directive that Sharyland file 01:07:32.490 --> 01:07:35.350 a CCN application in June of 2022. 01:07:35.350 --> 01:07:38.273 And if there's any delays in that process to notify us. 01:07:42.750 --> 01:07:43.670 Makes sense to me. 01:07:43.670 --> 01:07:45.325 Y'all? 01:07:45.325 --> 01:07:46.158 Yup 01:07:46.158 --> 01:07:48.445 Okay, we'll have that into that order too. 01:07:48.445 --> 01:07:49.603 All right. 01:07:52.150 --> 01:07:56.083 Do you want to say June 1st or June 30th? 01:07:58.106 --> 01:08:00.480 Well, we are at the beginning of October. 01:08:00.480 --> 01:08:03.803 And so I'd say by June 30th, 01:08:04.840 --> 01:08:05.673 just sometime 01:08:05.673 --> 01:08:07.130 within the month of June. Sure 01:08:07.130 --> 01:08:08.555 No later June 30th 01:08:08.555 --> 01:08:09.388 No later. No 01:08:09.388 --> 01:08:10.221 Yes. No later than. 01:08:10.221 --> 01:08:11.940 And certainly we'd accept it earlier. 01:08:11.940 --> 01:08:12.800 Absolutely. 01:08:12.800 --> 01:08:15.330 But, and if there's any delays to please notify us 01:08:15.330 --> 01:08:19.260 of that delay Absolutely 01:08:19.260 --> 01:08:20.923 All right. 01:08:20.923 --> 01:08:21.756 Okay 01:08:21.756 --> 01:08:22.660 Work for ya'll? 01:08:22.660 --> 01:08:23.702 Yes, sir. Mm hmm. 01:08:23.702 --> 01:08:24.535 All right. 01:08:24.535 --> 01:08:25.908 That is all I have on this item. 01:08:25.908 --> 01:08:26.840 Thank you for your leadership on this. 01:08:26.840 --> 01:08:27.673 It's tremendous. 01:08:28.630 --> 01:08:32.470 That concludes our business on Item 20. 01:08:32.470 --> 01:08:35.180 I don't have anything on Item 21. 01:08:35.180 --> 01:08:36.749 Anybody else? 01:08:36.749 --> 01:08:37.582 No, sir. 01:08:37.582 --> 01:08:38.415 All right. 01:08:38.415 --> 01:08:41.887 Next item will be Item 24, 01:08:41.887 --> 01:08:43.683 Mr. Journeay, could you play that out for us? 01:08:44.560 --> 01:08:46.713 Item 24 is docket 5 1 5 7 2. 01:08:48.044 --> 01:08:51.553 It's the appeal of John McGuffey and McFarland farms. 01:08:52.780 --> 01:08:54.140 The cost of obtaining service 01:08:54.140 --> 01:08:57.880 from the Virginia Hill Water Supply Corporation. 01:08:57.880 --> 01:09:00.790 Proposal for decision was filed on August 31st. 01:09:00.790 --> 01:09:03.619 It recommends that the Commission deny the appeal. 01:09:03.619 --> 01:09:06.963 No party filed corrections or exceptions. 01:09:08.068 --> 01:09:09.320 Thank you, sir. 01:09:09.320 --> 01:09:10.645 Seems straightforward to me, 01:09:10.645 --> 01:09:11.700 but would love to hear from y'all. 01:09:11.700 --> 01:09:13.090 The tariff is clear. 01:09:13.090 --> 01:09:14.943 Any comments, questions? 01:09:14.943 --> 01:09:15.776 Yeah. 01:09:17.800 --> 01:09:19.760 The classification of their tariff that they're in 01:09:19.760 --> 01:09:22.110 sort of dictates the outcome here. 01:09:22.110 --> 01:09:24.421 So I agree with you Mr. Chairman. 01:09:24.421 --> 01:09:25.600 All right. 01:09:25.600 --> 01:09:28.210 Is there a motion to adopt the proposal for decision? 01:09:28.210 --> 01:09:29.120 So moved. 01:09:29.120 --> 01:09:29.960 Second. 01:09:29.960 --> 01:09:31.010 All in favor, say aye. 01:09:31.010 --> 01:09:31.910 Aye. 01:09:31.910 --> 01:09:32.883 Motion passes. 01:09:35.220 --> 01:09:36.890 Item 25 was consented. 01:09:36.890 --> 01:09:40.570 I don't have anything for Items 26 through 29. 01:09:40.570 --> 01:09:41.776 Y'all? 01:09:41.776 --> 01:09:42.609 No, sir. 01:09:45.355 --> 01:09:48.440 That will bring us to 32 01:09:49.663 --> 01:09:51.773 with comments on that from staff. 01:09:54.260 --> 01:09:55.093 Yes, sir. 01:09:55.093 --> 01:09:56.090 Thank you, Mr. Chairman, 01:09:56.090 --> 01:09:57.710 just a couple items this morning. 01:09:57.710 --> 01:10:01.210 First in regards to the Turks selection process, 01:10:01.210 --> 01:10:03.220 where you're finalizing that process. 01:10:03.220 --> 01:10:05.870 I hope to notify the applicants 01:10:05.870 --> 01:10:08.041 who have been selected tomorrow, 01:10:08.041 --> 01:10:10.370 and then we'll file a memo 01:10:10.370 --> 01:10:13.260 in the docket that we opened for the applications, 01:10:13.260 --> 01:10:15.960 letting the public know who we've selected 01:10:15.960 --> 01:10:18.940 and also notifying Tetum and Chief Kid 01:10:18.940 --> 01:10:20.880 of who we've selected so they can contact them 01:10:20.880 --> 01:10:22.093 about future meetings. 01:10:22.990 --> 01:10:23.823 Excellent. 01:10:23.823 --> 01:10:24.855 Thank you. 01:10:24.855 --> 01:10:25.688 Second, 01:10:25.688 --> 01:10:27.062 I've given you updates 01:10:27.062 --> 01:10:28.583 on our mapping committee work in the past. 01:10:29.470 --> 01:10:30.850 One of the things we've talked about 01:10:30.850 --> 01:10:34.420 is how to engage the public and stakeholders in that. 01:10:34.420 --> 01:10:35.830 We have another meeting tomorrow. 01:10:35.830 --> 01:10:38.530 I'm going to discuss, 01:10:38.530 --> 01:10:41.830 and I discussed yesterday with executive director Wei Wang 01:10:41.830 --> 01:10:42.710 of the Railroad Commission. 01:10:42.710 --> 01:10:44.240 Who's the Vice Chair of that committee, 01:10:44.240 --> 01:10:46.980 ways that we can engage the public and stakeholders 01:10:46.980 --> 01:10:49.490 to give them more information on what's going on. 01:10:49.490 --> 01:10:51.338 So I'm going to put a couple ideas out there 01:10:51.338 --> 01:10:53.960 tomorrow at our meeting and hope to report back 01:10:53.960 --> 01:10:55.110 on our progress on that 01:10:55.110 --> 01:10:57.550 at our next open meeting for you all. 01:10:57.550 --> 01:11:00.450 And then finally, something that is very important 01:11:00.450 --> 01:11:03.280 I think specifically to Commissioner Glotfelty, 01:11:03.280 --> 01:11:06.390 I want to thank the Facilities Commission and Mike Novak, 01:11:06.390 --> 01:11:08.750 their Executive Director, for working with us 01:11:08.750 --> 01:11:10.766 to move up the timeline for constructing 01:11:10.766 --> 01:11:14.050 our two new Commissioner suites. 01:11:14.050 --> 01:11:15.680 So that Commissioner Glotfelty 01:11:15.680 --> 01:11:18.960 and his staff can move into Commissioner's offices. 01:11:18.960 --> 01:11:22.950 We are going to start that construction on the 14th, 01:11:22.950 --> 01:11:25.640 and we hope, they hope to have it done by 01:11:25.640 --> 01:11:26.770 the beginning of the new year, 01:11:26.770 --> 01:11:28.370 which is about the same timeline 01:11:29.355 --> 01:11:30.188 that we'll get our new dais 01:11:30.188 --> 01:11:31.870 to accommodate up to five Commissioners, 01:11:31.870 --> 01:11:34.187 to make you all a little more comfortable up there. 01:11:34.187 --> 01:11:36.080 (chuckle) 01:11:36.080 --> 01:11:36.913 Outstanding. 01:11:36.913 --> 01:11:39.280 And I will also, in all seriousness, 01:11:39.280 --> 01:11:40.550 commend Commissioner Glotfelty 01:11:40.550 --> 01:11:43.850 for being such a good sport (chuckle) 01:11:43.850 --> 01:11:47.420 and joining this Commission with the lack of space 01:11:47.420 --> 01:11:49.052 and resources we've had. 01:11:49.052 --> 01:11:50.190 We appreciate you. I would 01:11:50.190 --> 01:11:51.490 invite you all to come down my hallway, 01:11:51.490 --> 01:11:53.718 it's very open and very quiet and very, 01:11:53.718 --> 01:11:56.302 it's a joyful place to be so. 01:11:56.302 --> 01:11:57.437 (laughter) 01:11:57.437 --> 01:11:59.931 It gets a little tight in your cubicle, but 01:11:59.931 --> 01:12:00.764 (laughter) 01:12:00.764 --> 01:12:03.541 He may not feel that way once the construction starts, 01:12:03.541 --> 01:12:04.535 (laughter) 01:12:04.535 --> 01:12:06.840 but that's all I have this morning. 01:12:06.840 --> 01:12:08.650 In fact, in ya'll need an address for me 01:12:08.650 --> 01:12:10.959 to tell you where I am, (laughter) 01:12:10.959 --> 01:12:12.710 so y'all can come see me I'll let you know. 01:12:12.710 --> 01:12:14.238 (laughter) 01:12:14.238 --> 01:12:15.238 All right. 01:12:16.088 --> 01:12:18.943 I don't have anything on 33 or 34, 01:12:20.140 --> 01:12:21.360 unless you all have anything else, 01:12:21.360 --> 01:12:24.283 that will bring us to item 35, 01:12:25.810 --> 01:12:27.300 Mr. Journeay, 01:12:27.300 --> 01:12:31.540 you've circulated a statement regarding our Consent Agenda. 01:12:31.540 --> 01:12:33.550 Could you give us a brief summary of that? 01:12:33.550 --> 01:12:34.430 Yes, sir. 01:12:34.430 --> 01:12:37.940 This statement is trying to reflect discussions 01:12:37.940 --> 01:12:39.410 that I've had with all of y'all 01:12:39.410 --> 01:12:42.680 over the past period of time 01:12:42.680 --> 01:12:47.050 to basically expand our use of the Consent Agenda 01:12:48.710 --> 01:12:51.140 beyond what we have historically done. 01:12:51.140 --> 01:12:56.140 So that if items only have correction memos 01:12:58.940 --> 01:13:03.330 from the judges or staff, myself included on that, 01:13:03.330 --> 01:13:05.870 those items will be consent able. 01:13:05.870 --> 01:13:08.950 There were three proposed orders today 01:13:08.950 --> 01:13:12.220 that only had a memo for me on it , 01:13:12.220 --> 01:13:14.180 that in the past we have not consented, 01:13:14.180 --> 01:13:16.900 that would be one that would be consented. 01:13:16.900 --> 01:13:20.380 And we had a PFD with no correction, memos or all. 01:13:20.380 --> 01:13:25.050 And that would be, also now, put on the consent, 01:13:25.050 --> 01:13:27.680 be able to be put on the consent list. 01:13:27.680 --> 01:13:31.810 It also lays out what it means 01:13:31.810 --> 01:13:34.020 when the Commission approves the Consent Agenda, 01:13:34.020 --> 01:13:37.160 and that is it approves the latest filed order. 01:13:37.160 --> 01:13:38.810 Plus the correction memos 01:13:38.810 --> 01:13:40.823 that have been filed prior to that time, 01:13:42.760 --> 01:13:47.760 it does not include memos from parties outside staff, 01:13:48.360 --> 01:13:51.750 or the judges within that. 01:13:51.750 --> 01:13:54.920 And then finally it talks about 01:13:54.920 --> 01:13:57.010 how we prepare our Consent Agenda, 01:13:57.010 --> 01:13:59.150 which is how we have done it in the past, 01:13:59.150 --> 01:14:01.150 but it lays it out and it makes it clear 01:14:02.370 --> 01:14:05.693 that if Commissioners are recusing themselves from a matter, 01:14:06.600 --> 01:14:10.580 they do not need to be included 01:14:10.580 --> 01:14:12.800 on the unanimity of the Commissioners 01:14:12.800 --> 01:14:15.070 to put it on the list, to have it put on the list. 01:14:16.016 --> 01:14:18.470 So that will resolve some issues we've had recently too, 01:14:18.470 --> 01:14:20.020 where things weren't consented. 01:14:20.860 --> 01:14:23.265 It will give us a little bit more, 01:14:23.265 --> 01:14:27.748 probably save us five minutes on our openings, 01:14:27.748 --> 01:14:29.998 (laughter) 01:14:30.940 --> 01:14:33.027 Maybe a little bit more. I imagine 01:14:34.309 --> 01:14:35.360 It's always welcome opportunities 01:14:35.360 --> 01:14:38.050 to streamline operations here at the PUC. 01:14:40.764 --> 01:14:42.380 Thank you for laying that out. 01:14:42.380 --> 01:14:44.540 And so just so the public knows 01:14:45.520 --> 01:14:47.670 that we will continue to be transparent 01:14:47.670 --> 01:14:49.830 in all of our actions here. 01:14:49.830 --> 01:14:52.420 The changes you're talking about that now can be consented, 01:14:52.420 --> 01:14:57.420 are non-substantive grammatical technical corrections, 01:14:57.860 --> 01:15:01.270 any substantive changes of policy 01:15:01.270 --> 01:15:05.370 would be still for discussion with the Commission. 01:15:05.370 --> 01:15:06.203 Well, 01:15:06.203 --> 01:15:07.920 I think that's true, with maybe two exceptions, 01:15:07.920 --> 01:15:10.950 in that were so a judge that writes a PFD 01:15:10.950 --> 01:15:13.900 occasionally could make a substantive correction 01:15:13.900 --> 01:15:15.013 in their memos. 01:15:15.850 --> 01:15:18.100 And we have dealt with those in the past, always. 01:15:18.100 --> 01:15:23.100 And perhaps also in proposed orders to adopt rules 01:15:23.970 --> 01:15:25.720 where there's changes to the rules 01:15:25.720 --> 01:15:28.190 that could be substantive changes to the rules. 01:15:28.190 --> 01:15:30.830 Those would also be included in this process. 01:15:30.830 --> 01:15:31.663 Of course, 01:15:31.663 --> 01:15:33.910 if the Commissioner wants to discuss them, 01:15:33.910 --> 01:15:36.190 they just don't put it on their consent list then. 01:15:36.190 --> 01:15:37.023 Yeah. 01:15:37.023 --> 01:15:38.920 If it's some substantive policy, 01:15:38.920 --> 01:15:41.672 if you think we would 01:15:41.672 --> 01:15:44.750 would flag that for discussion. 01:15:44.750 --> 01:15:45.930 Right. 01:15:45.930 --> 01:15:46.763 All right. 01:15:46.763 --> 01:15:49.036 Any comments, questions? 01:15:49.036 --> 01:15:50.130 I think this strategy, 01:15:50.130 --> 01:15:51.810 given the workload that we have, 01:15:51.810 --> 01:15:54.930 given the panacea of topics 01:15:54.930 --> 01:15:57.536 that we have to take up over the next year, 01:15:57.536 --> 01:16:01.707 help provide focus for the public as well as us 01:16:01.707 --> 01:16:05.760 and the stakeholders who are active participants here. 01:16:05.760 --> 01:16:08.330 So I think the policy is consistent 01:16:08.330 --> 01:16:10.640 with both the degree of transparency, 01:16:10.640 --> 01:16:12.904 which the PUC has been accustomed to 01:16:12.904 --> 01:16:15.530 and the work that staff does behind the scenes. 01:16:15.530 --> 01:16:18.181 So again, I agree with that. 01:16:18.181 --> 01:16:19.512 Well put. 01:16:19.512 --> 01:16:22.450 So we would take a ask for your approval of 01:16:22.450 --> 01:16:25.010 this statement, as it's your policy. 01:16:25.010 --> 01:16:26.550 Is there a motion to approve 01:16:26.550 --> 01:16:27.570 the statement regarding use of 01:16:27.570 --> 01:16:29.108 the Commission's Consent Agenda? 01:16:29.108 --> 01:16:29.990 So moved. 01:16:29.990 --> 01:16:30.823 Second. 01:16:30.823 --> 01:16:31.656 All in favor, say aye. 01:16:31.656 --> 01:16:32.530 Aye. 01:16:32.530 --> 01:16:33.423 Motion passes. 01:16:35.620 --> 01:16:39.503 That concludes our agenda for today. 01:16:41.269 --> 01:16:43.900 Having convened in a duly noticed open meeting, 01:16:43.900 --> 01:16:47.780 the Commission will at 10:47 AM on October 7th, 01:16:47.780 --> 01:16:49.760 hold a closed session pursuant to Chapter 501 01:16:49.760 --> 01:16:50.593 in Texas government 01:16:50.593 --> 01:16:55.530 code sections 5 0 1.0 7 1 5 5 1 0.0 7 4 and 5 1 1 .0 7 6. 01:16:57.126 --> 01:16:59.373 We'll be back in a bit. 01:17:15.300 --> 01:17:17.690 Closed session is hereby concluded 01:17:17.690 --> 01:17:21.233 at 11:44 AM on October 7th, 2021. 01:17:21.233 --> 01:17:23.610 And the Commission will resume its public meeting. 01:17:23.610 --> 01:17:25.320 No action will be taken by the Commission 01:17:25.320 --> 01:17:29.467 regarding matters discussed during closed session. 01:17:29.467 --> 01:17:31.930 So there being no further business 01:17:31.930 --> 01:17:33.980 to come before the Commission, 01:17:33.980 --> 01:17:36.090 this meeting of the Public Utility Commission of Texas is 01:17:36.090 --> 01:17:37.433 hereby adjourned. 01:17:37.433 --> 01:17:39.475 (gavel bang)