WEBVTT
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(gavel banging)
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The meeting of the Public
Utility Commission of Texas
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is now called back into order.
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We will be picking up our agenda,
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the last item we did was number item 17,
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I believe Mr. Janae,
which will move us all
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the way through to.
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We're gonna send
it up to 21 then, I believe.
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All right, item 21, I
don't have anything.
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Do you wanna?
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(indistinct)
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We're gonna go ahead
and take up item 22.
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20, we've already called that
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so we just need to pull back up.
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Let's pull it back up.
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Mr Smeltzer.
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May I approach the bench?
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Please.
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Did you go to law school?
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(group laughing)
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(indistinct chatter)
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We'll be doing a credentials
review after the meeting.
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(group laughing)
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David Smeltzer,
Commission staff,
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we returned and talk about
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the retail electric
customer protection rule.
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The item for discussion
before we left was
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the question of the
definition of fixed rate product
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and whether not that included
a ancillary service pass
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through or more accurately,
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whether or not ancillary service
contracts could be changed
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based on future changes
in ancillary services costs.
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Staff has provided
you with some language
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that we think captures the intent
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that was expressed by
Commissioner McAdams.
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And so the change
would be the last sentence
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that had been added in the draft
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would change to the
price may not vary from
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the disclosed amount to reflect changes
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in the ancillary service charges
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unless the Commission
expressly designates
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a specific type of
ancillary service product
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as incurring charges
beyond the rep's control
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for a customer's existing contract.
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So what this would
do is the default posture
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would be that reps can
not vary their contracts,
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or it cannot vary the
price of existing contracts,
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any ancillary services
that are known at the time
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or, you know, that
are in effect at a time
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that a contract is being signed,
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they can't rate based on that.
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They should've hedged for it,
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but in the instance that
there are extraordinary
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or unexpected costs associated with
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a new or modified ancillary
service in the opinion
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of the Commission, as
part of like the approval
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of the NPRR or entry of
the new ancillary service
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you guys would have
the discretion to make
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that pass through rubble as appropriate.
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But reps, the rep community
would have to sort of come
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and make their case for it, right?
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'Cause we'd want these
to be like acknowledge
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well defined decisions with
the idea being that we want,
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we genuinely want reps to be able
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to get long-term financing,
have long-term contracts,
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hedge their products
and have some certainty
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to know that the
Commission's not going to
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be thoughtless about
the assigning of new costs
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to that particular community.
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So this will hopefully
be a safety backstop
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for the rep community.
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And I think that was our,
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what we heard from you
guys prior to the break.
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So just to attest
in terms of my view,
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I believe that does because
where I wanted to go
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is to provide a
mechanism for the market,
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the public to come in and
demonstrate the need for,
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and to tell us, okay,
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because there's gonna be a million
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and one business models out
there in the retail community.
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Like you said, selling coasters,
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they'll find a million-
I dint say that.
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Okay, sorry, no,
they did, they did,
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they did, they did.
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Important, very
important detail.
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Correct, maybe I
should stop talking.
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(group laughing)
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In any case, there will be a variety
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of business models out there.
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This would provide a mechanism
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and a safeguard for the
Commission to have to re-look
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or examine as we authorize
and approve of the products
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on a case-by-case basis
to account for the effect
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on the retail community
and to essentially build in
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a process for approval or
disallowance of pass through
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the ancillary services
and what those conditions
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might look like if it's
a pass through in part,
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if it's a conditional pass through,
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whatever we need to do
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because you can't
accurately forecast the future,
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we would have that opportunity
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and it would be, give them a due process
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to come litigate this and allow us to do
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what we're supposed to do,
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which is safeguard the public interest
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and determine the best path forward.
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Agreed, nicely put.
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Commissioner
McAdams, well said.
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Again, like I said at the
beginning of our discussion,
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I think this is a balance
between protecting consumers
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and ensuring a competitive,
healthy retail market.
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I think this language
strikes that balance in terms
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of trying to ensure that we
still have fixed rate products
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in our competitive market,
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but also provide more
transparency and visibility,
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and more due process
for the reps going forward
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so that they can properly hedge against
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all of the items that we are looking at
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through our market
design grid reform efforts
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that are important for reliability
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and for consumers as well,
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but to be able to provide the reps
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the opportunity to
hedge against those costs
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and for the Commission to
take more of an active role
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on approving all of
those efforts as we will,
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but also an active role
on sizing those efforts
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to ensure that we are
appropriately balancing benefits,
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reliability, benefits, and
consumer costs in the future.
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And we may also
note that I think
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a lot of times ancillary
services have a lead time
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with when they would come into effect.
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So there might even be an opportunity,
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I assume that in time there
would be an opportunity
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for them to maybe get
those questions answered
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before the new cost
came into effect, potentially
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if and when there's
enough lead time to do so.
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Absolutely.
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Okay.
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Well, yes, well, long before.
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All right, so done?
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I'm good, thank
you for the (indistinct).
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Yeah, appreciate
the quick edits
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to improve an already excellent rule.
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Is- Along, sorry,
and along with that,
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if you would also approve us,
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we've not yet edited the preamble
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but I assume we're gonna
have to do a quick run through
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and make a few edits
in line with the discussion
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that we just had.
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So if whatever you approve
could give us that discretion
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that would be fantastic.
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That works.
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Is there a motion to
approve the proposal
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for adoption with the edits
submitted by Mr. Smeltzer
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and the discretion to
reconcile the preamble
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with said edits?
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So moved.
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Second.
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All in favor say aye.
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Aye.
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Non opposed, the motion passes,
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thank you very much, Mr. Smeltzer.
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Thank you David, for your work
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on that very important rule.
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Thank you,
Connie, I appreciate it.
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Thank you, Connie and team.
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Mark also wanted his
shout out, he's over there.
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(everyone laughing)
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Yeah, Mark.
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Thank you, Mark.
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Mark's been hustling just
as hard as Smeltzer, I think.
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(indistinct)
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See, he just gave him more work.
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(everyone laughing)
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See, he's literally going
up some TEA Smeltzer.
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All right, we've already addressed,
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I think for 23, 24, we've
already addressed item 25,
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which brings us to
26, I believe Mr. Janae.
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26 Is Project 52307,
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a review of the rules adopted by
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the independent organization
in county year 2021,
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Commission staff has filed a memo along
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with a proposed order that
addresses 19 (indistinct).
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Thank you.
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These rule changes
have been in the works
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but at the tech level
or across staff level
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at the PUC staff level
with Rebecca Zerwas
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and her team do an
extraordinary amount of work
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over the last number of months.
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All of these are, I know
y'all are familiar with,
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all these are much needed improvements,
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and I think it's fair to say a
dramatic amount of changes
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in the short amount of time
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that will deliver tangible results.
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Any thoughts, questions, comments?
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Strongly agree.
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Same.
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All right, is there a motion
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to approve the proposed order?
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So moved.
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Second.
All in favor say aye.
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Aye.
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Non opposed, motion passes.
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Don't have anything on 27,
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save 28 till the end of our programming.
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Brings us to 29, I believe
Commissioner Cobos
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has an update for us.
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All right, thank
you, Chairman Lake.
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Just wanted to note that the
ERCOT Board of Directors
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approved the long-term
transmission infrastructure
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project for the Rio Grande Valley
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at this past Board
meeting on December 10th,
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the project has been
deemed critical for reliability
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by ERCOT and therefore the
Commission will have to approve
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the CCN applications
once they're filed before us
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on an expedited basis within 180 days
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of the CCN filing date.
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This longterm infrastructure
project is very important
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and the party should file,
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I would strongly
encourage the parties to file
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their CCN applications
as soon as possible.
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And in that due course,
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I would like the relevant
parties to file a progress report
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on January 20th in
this project that provides
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us with an estimated
timeframe on when they will
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be filing their CCN
applications for this project.
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This project must stay
on track to be energized
00:10:41.130 --> 00:10:43.575
by December, 2026.
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Finally, this longterm
transmission infrastructure project
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together with the new second circuit
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and close the loop
transmission facilities
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that were ordered by
the Commission this fall,
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will provide much needed,
long awaited reliability
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and resiliency in the Rio
Grande Valley in the state.
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Thank you, ma'am.
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It is hard to understate
the magnitude of this project
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and the speed at which
you have moved it forward.
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So thank you for that leadership.
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I know these are long lift projects,
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but I wanna make sure that
the importance of this project
00:11:18.578 --> 00:11:23.470
is not fade away and this
is a huge, huge project.
00:11:23.470 --> 00:11:26.203
Thank you for taking
the leadership role on this.
00:11:28.110 --> 00:11:28.943
Commissioner McAdams.
00:11:28.943 --> 00:11:32.328
Oh, I would just like to
commend you Commissioner
00:11:32.328 --> 00:11:34.116
for leading on this.
00:11:34.116 --> 00:11:37.840
I'd like to highlight this
just on behalf of myself for
00:11:37.840 --> 00:11:41.330
the public, this is an entire region
00:11:41.330 --> 00:11:43.110
of the state of Texas that will
00:11:43.110 --> 00:11:47.160
have a large scale critical
piece of infrastructure built
00:11:47.160 --> 00:11:49.902
over the next six, seven years
00:11:49.902 --> 00:11:54.902
that will enhance and
increase reliability of that region
00:11:54.910 --> 00:11:57.650
for decades to come and
will provide a backbone
00:11:57.650 --> 00:12:02.650
of resiliency in a natural
disaster prone area.
00:12:03.820 --> 00:12:06.620
This will benefit all
consumers as result
00:12:06.620 --> 00:12:09.880
especially the people
of the Rio Grande Valley.
00:12:09.880 --> 00:12:13.483
And this is not inexpensive.
00:12:14.320 --> 00:12:16.350
This is gonna cost everyone equally,
00:12:16.350 --> 00:12:17.921
but it's well worth it.
00:12:17.921 --> 00:12:20.518
I think this is a testament
to the work of ERCOT
00:12:20.518 --> 00:12:23.232
and the Commission in trying to,
00:12:23.232 --> 00:12:26.030
as some of the public
comments said earlier,
00:12:26.030 --> 00:12:28.040
watch out for the public interest.
00:12:28.040 --> 00:12:29.040
That's what we're trying to do.
00:12:29.040 --> 00:12:29.873
That's our mission.
00:12:29.873 --> 00:12:32.020
So appreciate your work, ma'am.
00:12:32.020 --> 00:12:33.020
Thank you so much.
00:12:35.100 --> 00:12:36.153
I would-
00:12:36.153 --> 00:12:37.197
Thoughts on
transmission, general?
00:12:37.197 --> 00:12:40.558
Just, you know vegetation
management of course.
00:12:40.558 --> 00:12:43.641
(everyone laughing)
00:12:44.520 --> 00:12:46.020
Thank you, Commissioner.
00:12:46.020 --> 00:12:47.780
I think, you know, having this authority
00:12:47.780 --> 00:12:49.850
to order transmission is important.
00:12:49.850 --> 00:12:51.580
It's an important tool in our toolbox.
00:12:51.580 --> 00:12:53.710
It's an important thing
that we need to use
00:12:53.710 --> 00:12:55.796
to make this system
reliable looking forward,
00:12:55.796 --> 00:12:58.250
as opposed to just-in-time transmission.
00:12:58.250 --> 00:13:00.692
And as we give ERCOT
more tools with implementing
00:13:00.692 --> 00:13:03.510
the economic transmission language
00:13:03.510 --> 00:13:06.630
that the legislature passed,
00:13:06.630 --> 00:13:09.290
we'll hopefully be able to look ahead,
00:13:09.290 --> 00:13:11.119
look ahead of the headlights,
rather than just to them,
00:13:11.119 --> 00:13:12.960
to the edge.
00:13:12.960 --> 00:13:15.500
And that will give ERCOT
and the market tenacity
00:13:15.500 --> 00:13:17.900
to really get, really see
what needs to be done
00:13:17.900 --> 00:13:19.650
for the good of the market before we get
00:13:19.650 --> 00:13:21.540
to the edge of that system.
00:13:21.540 --> 00:13:23.340
So I commend you, thank you.
00:13:23.340 --> 00:13:25.524
And look forward to more of these.
00:13:25.524 --> 00:13:29.018
Yeah, I look forward,
00:13:29.018 --> 00:13:31.540
very glad you laid out
the timetable you did
00:13:31.540 --> 00:13:33.933
and look forward to continuing that.
00:13:33.933 --> 00:13:35.212
Sure, thank you so much.
00:13:35.212 --> 00:13:38.866
Don't think we have
anything on items 30
00:13:38.866 --> 00:13:43.866
through 37 to bring us to
an update from our ED in 38.
00:13:45.220 --> 00:13:46.812
Thank you, Mr. Chairman
and Commissioners,
00:13:46.812 --> 00:13:48.722
just two quick updates this afternoon.
00:13:48.722 --> 00:13:52.395
First in regards to the
Mapping Committee that I chair,
00:13:52.395 --> 00:13:55.960
we're having our last
meeting of the year tomorrow,
00:13:55.960 --> 00:13:59.210
where we will approve
the statutorily required
00:13:59.210 --> 00:14:01.690
mapping report, it's due January 1st.
00:14:01.690 --> 00:14:05.120
We will get that
published on our website
00:14:05.120 --> 00:14:07.926
before the end of the year
and sent out to the Governor
00:14:07.926 --> 00:14:11.463
and the legislature, and
also file that in project 52404.
00:14:12.410 --> 00:14:14.060
And then as I've spoken about before,
00:14:14.060 --> 00:14:15.765
our January meeting is
gonna be a public meeting.
00:14:15.765 --> 00:14:17.570
We're gonna hold it in this room.
00:14:17.570 --> 00:14:19.302
It's gonna be broadcast on Texas Admin,
00:14:19.302 --> 00:14:21.770
and we're gonna run it
very similar to the way
00:14:21.770 --> 00:14:23.910
that you all run work sessions.
00:14:23.910 --> 00:14:25.640
We're gonna get reports
from our different project teams
00:14:25.640 --> 00:14:27.235
go over the report.
00:14:27.235 --> 00:14:30.181
And what I would ask from
the public or anyone interested,
00:14:30.181 --> 00:14:32.227
if you have comments
you wanna file related
00:14:32.227 --> 00:14:34.557
to our Mapping Committee
and any of the work
00:14:34.557 --> 00:14:37.203
we're doing, file them in project 52404
00:14:37.203 --> 00:14:38.683
so that we can see them.
00:14:39.840 --> 00:14:42.560
And then the second thing
is something I was asked
00:14:42.560 --> 00:14:43.393
to do by staff.
00:14:43.393 --> 00:14:45.446
So as you are aware, we passed rules
00:14:45.446 --> 00:14:48.610
and so did the Railroad
Commission back in November relating
00:14:48.610 --> 00:14:50.248
to reliability and continuity of service
00:14:50.248 --> 00:14:52.495
and critical designation of
natural gas infrastructure.
00:14:52.495 --> 00:14:56.080
And those rules set up a process
00:14:56.080 --> 00:14:58.733
to designate natural
gas critical facilities.
00:14:58.733 --> 00:15:01.750
And so just to be able
to ease the administration
00:15:01.750 --> 00:15:04.010
of that sharing of information,
00:15:04.010 --> 00:15:06.098
because the rules require
operators of critical natural gas
00:15:06.098 --> 00:15:11.098
to provide customer
information by January 15th to,
00:15:11.480 --> 00:15:14.150
via their electric
utilities and to ERCOT.
00:15:14.150 --> 00:15:17.129
We've opened a project 52964
00:15:17.129 --> 00:15:19.530
to put all of that
contact information in.
00:15:19.530 --> 00:15:21.820
And so what we're
asking is that utilities
00:15:21.820 --> 00:15:23.530
put their contact
information and file it
00:15:23.530 --> 00:15:25.068
in that project by December 29th,
00:15:25.068 --> 00:15:28.570
so that we can get that
posted by January 3rd.
00:15:28.570 --> 00:15:30.172
Always
appreciate streamlining processes,
00:15:30.172 --> 00:15:31.390
especially this one.
00:15:31.390 --> 00:15:32.350
Yes, sir, we want
people to be able
00:15:32.350 --> 00:15:33.950
to find that information easily.
00:15:34.820 --> 00:15:35.930
Thank
you very much.
00:15:35.930 --> 00:15:36.763
That's all I have,
thank you, sir.
00:15:36.763 --> 00:15:37.596
Any questions or
comments for Thomas?
00:15:37.596 --> 00:15:38.429
No, sir.
00:15:38.429 --> 00:15:39.951
No.
00:15:39.951 --> 00:15:41.690
All right, well that
concludes the business
00:15:41.690 --> 00:15:44.080
on 38, 39 and 40.
00:15:44.080 --> 00:15:47.050
I don't think we have any
business which will bring
00:15:47.050 --> 00:15:52.050
us back to item 28, project number 52373
00:15:56.730 --> 00:16:01.730
which is the last piece of
business for this meeting today.
00:16:03.920 --> 00:16:08.920
As we all know, and
we've heard multiple times,
00:16:11.110 --> 00:16:15.320
that devastating event in February
00:16:15.320 --> 00:16:19.163
was a seismic part of Texas history.
00:16:21.050 --> 00:16:22.890
And in response to that, the legislature
00:16:22.890 --> 00:16:25.670
and the Governor passed landmark reform
00:16:25.670 --> 00:16:28.806
to address the problems
that were made apparent
00:16:28.806 --> 00:16:33.340
in that extreme weather event.
00:16:33.340 --> 00:16:36.380
We, as the Commission
received clear direction
00:16:36.380 --> 00:16:40.616
in SB3 to conduct a wholesale
review of the ERCOT Market
00:16:40.616 --> 00:16:43.961
to move away from the
crisis-based business model
00:16:43.961 --> 00:16:48.961
and to redesign as needed our market
00:16:51.050 --> 00:16:54.463
to ensure a resilient, reliable grid.
00:16:55.740 --> 00:16:59.903
We started this process as
new Commissioners in June.
00:17:01.280 --> 00:17:03.510
Commissioner Cobos
joined later in the summer,
00:17:03.510 --> 00:17:05.673
and then Commissioner Glotfelty.
00:17:05.673 --> 00:17:09.450
Starting in June, we as a Commission
00:17:09.450 --> 00:17:13.450
have directed significant
operational reforms at ERCOT
00:17:13.450 --> 00:17:16.570
that made an immediate
impact in improving reliability
00:17:16.570 --> 00:17:18.500
going into last summer,
00:17:18.500 --> 00:17:21.130
we've conducted almost a
dozen public work sessions
00:17:21.130 --> 00:17:24.690
to engage with stakeholders
and the public in this room
00:17:24.690 --> 00:17:26.900
with all Commissioners
present, with staff support,
00:17:26.900 --> 00:17:30.590
with ERCOT present, we have
received thousands of pages
00:17:30.590 --> 00:17:32.316
of comments from stakeholders
00:17:32.316 --> 00:17:34.993
and members of the general public.
00:17:36.690 --> 00:17:41.597
And today, at the end of this
incredibly intense process,
00:17:43.360 --> 00:17:46.180
we're discussing, and I hope to deliver
00:17:46.180 --> 00:17:48.463
a blueprint for market redesign.
00:17:50.320 --> 00:17:52.490
Early on, I think we all realized
00:17:52.490 --> 00:17:55.400
that our market has
been historically focused
00:17:55.400 --> 00:17:58.253
on affordability first
and reliability second.
00:17:59.100 --> 00:18:04.100
Reliability moving up
in the ranks of priorities.
00:18:06.200 --> 00:18:08.140
In fairness to our predecessors,
00:18:08.140 --> 00:18:10.430
the current market
design was put in place
00:18:10.430 --> 00:18:13.710
before intermittent
renewables were so prevalent,
00:18:13.710 --> 00:18:15.820
they introduced a new
operational challenge,
00:18:15.820 --> 00:18:19.943
new volatility and
vulnerabilities to our market.
00:18:20.960 --> 00:18:22.600
Texas has plenty of generation
00:18:23.492 --> 00:18:26.160
but that can vanish when
the wind doesn't blow
00:18:26.160 --> 00:18:27.860
and the sun doesn't shine,
00:18:27.860 --> 00:18:31.073
which leaves us with a
very thin reserve margin.
00:18:32.010 --> 00:18:34.250
And we've seen that at different points
00:18:34.250 --> 00:18:35.533
over the last six months.
00:18:37.150 --> 00:18:39.870
We, as a Commission have
worked hard to acknowledge
00:18:39.870 --> 00:18:42.203
the pros and cons
of all generator types.
00:18:44.010 --> 00:18:47.140
The self-contained supply
chain of wind and solar
00:18:47.140 --> 00:18:49.080
is a tremendous feature.
00:18:49.080 --> 00:18:51.813
Unfortunately, we can't turn the wind on
00:18:51.813 --> 00:18:53.863
and make the sun shine.
00:18:55.550 --> 00:18:57.050
There are plenty of
well known vulnerabilities
00:18:57.050 --> 00:18:59.500
in thermal dispatchable generators,
00:18:59.500 --> 00:19:01.243
but one of their features is that
00:19:01.243 --> 00:19:03.490
they can be turned on at command.
00:19:03.490 --> 00:19:07.770
And our effort has largely
been to capture the benefits
00:19:07.770 --> 00:19:12.770
of each type while
mitigating the detractions.
00:19:14.840 --> 00:19:17.054
The bottom line, I think we all agree
00:19:17.054 --> 00:19:21.470
is to provide economic
rewards in our market structure
00:19:21.470 --> 00:19:25.120
for the desired output
and the desired capabilities,
00:19:25.120 --> 00:19:27.973
moving revenues to
reliable sources of power.
00:19:29.040 --> 00:19:32.710
And when we say reliable
and dispatchable, I think,
00:19:32.710 --> 00:19:34.434
it's fair for all of us that we mean
00:19:34.434 --> 00:19:36.660
more than just thermal,
we mean batteries.
00:19:36.660 --> 00:19:38.790
We've been doing renewables
partnered with batteries,
00:19:38.790 --> 00:19:42.455
hydrogen, hydro-generation,
biomass, and most importantly,
00:19:42.455 --> 00:19:47.090
accountable demand response.
00:19:47.090 --> 00:19:49.326
And a big part of this
effort is quantifying
00:19:49.326 --> 00:19:54.326
and assigning value to those
demand response capabilities
00:19:54.680 --> 00:19:56.330
that we know we have in our grid.
00:19:58.890 --> 00:20:01.633
We spoken a lot about
being technology agnostic,
00:20:02.970 --> 00:20:05.093
and it's a principle I
think we're adhering to,
00:20:05.093 --> 00:20:08.660
we're gonna put the economics out there
00:20:08.660 --> 00:20:12.990
and let the marketplace
deliver the best technology
00:20:12.990 --> 00:20:16.377
at any moment in
time to deliver reliability
00:20:16.377 --> 00:20:18.660
for our citizens.
00:20:18.660 --> 00:20:21.460
We've always known there
was not gonna be one silver bullet
00:20:21.460 --> 00:20:24.670
to solve all these, but
rather a combination
00:20:24.670 --> 00:20:26.070
of different changes needed.
00:20:26.960 --> 00:20:30.180
The market redesign
blueprint that was published
00:20:30.180 --> 00:20:31.740
by staff on December 6th
00:20:31.740 --> 00:20:36.740
and you all have all
seen is based on reliability
00:20:37.040 --> 00:20:38.576
and accountability.
00:20:38.576 --> 00:20:41.173
As seen in that memo,
00:20:43.310 --> 00:20:46.280
this proposed blueprint will
be deployed in two phases.
00:20:46.280 --> 00:20:48.214
The phase immediately actionable items
00:20:48.214 --> 00:20:52.260
will be implemented at
various points throughout 2022,
00:20:52.260 --> 00:20:55.023
some immediately on January 1st,
00:20:56.350 --> 00:20:59.010
the longer term market
reforms will be more finely tuned
00:20:59.010 --> 00:21:01.210
and implemented over
the next several years.
00:21:04.050 --> 00:21:05.150
Texans shouldn't have to worry
00:21:05.150 --> 00:21:07.926
about whether they can power their lives
00:21:07.926 --> 00:21:11.798
or power our economy,
when they flip the lights on,
00:21:11.798 --> 00:21:15.300
the lights should come on
and these efforts go a long,
00:21:15.300 --> 00:21:17.250
long way to ensure that.
00:21:20.553 --> 00:21:23.213
With that, I'll open up
for thought, comments.
00:21:27.620 --> 00:21:29.590
Sure, Chairman
Lake, thank you so much
00:21:29.590 --> 00:21:34.590
for your views and statements
on this very important issues
00:21:35.520 --> 00:21:36.400
that are before us today.
00:21:36.400 --> 00:21:39.507
For context, I think it's
important for me to lay out
00:21:39.507 --> 00:21:42.336
that prior to serving
as PUC Commissioner,
00:21:42.336 --> 00:21:44.140
I served as public counsel at
00:21:44.140 --> 00:21:45.650
the Office of Public Utility Council
00:21:45.650 --> 00:21:48.180
that is represents the residential
00:21:48.180 --> 00:21:49.753
and small commercial consumers of Texas.
00:21:49.753 --> 00:21:51.629
During Winter Storm Uri,
00:21:51.629 --> 00:21:55.650
our agency worked
tirelessly to assist consumers
00:21:55.650 --> 00:21:59.430
during the storm,
including getting oxygen
00:21:59.430 --> 00:22:04.390
to elderly Texans, getting
water to assisted living centers,
00:22:04.390 --> 00:22:06.620
having to assist consumers to call 911.
00:22:06.620 --> 00:22:10.740
I bring that firsthand
experience and perspective
00:22:10.740 --> 00:22:13.441
to the Commission as we
address these important
00:22:13.441 --> 00:22:16.190
grid reforms today.
00:22:16.190 --> 00:22:17.391
After Winter Storm Uri
00:22:17.391 --> 00:22:20.020
the legislature acted SWIFTly to pass
00:22:20.020 --> 00:22:23.283
a comprehensive package
of landmark legislation
00:22:23.283 --> 00:22:26.490
to address the issues
experienced by Texans
00:22:26.490 --> 00:22:28.770
across the state during the storm
00:22:28.770 --> 00:22:32.690
Senate Bill Three alone that
was passed by the legislature
00:22:32.690 --> 00:22:34.780
and signed into law by
the Governor provides
00:22:34.780 --> 00:22:39.204
for sweeping reform of
our ERCOT power grid.
00:22:39.204 --> 00:22:41.380
Pursuant to the
direction of the Governor
00:22:41.380 --> 00:22:43.170
and the legislature over the course
00:22:43.170 --> 00:22:44.420
of the last several months,
00:22:44.420 --> 00:22:47.660
we have rolled up our
sleeves and have worked hard
00:22:47.660 --> 00:22:49.960
to address the issues that
were experienced by Texans
00:22:49.960 --> 00:22:51.900
during the winter storm.
00:22:51.900 --> 00:22:54.630
The Commission has
diligently as Chairman Lake
00:22:54.630 --> 00:22:57.350
has duly noted, held
many public workshops,
00:22:57.350 --> 00:22:59.660
has received thousands
of pages of comments
00:22:59.660 --> 00:23:02.550
from stakeholders,
experts and the public
00:23:02.550 --> 00:23:05.090
that have been very
helpful in identifying actions
00:23:05.090 --> 00:23:07.530
that will provide the
state with a spectrum
00:23:07.530 --> 00:23:10.670
of enhanced grid
reliability and resiliency
00:23:10.670 --> 00:23:12.110
in the future.
00:23:12.110 --> 00:23:13.739
These important and calculated actions
00:23:13.739 --> 00:23:16.360
will help enhance grid
reliability and resiliency
00:23:16.360 --> 00:23:18.146
by, as Chairman Lake noted,
00:23:18.146 --> 00:23:20.800
moving ERCOT away
from operating the grid
00:23:20.800 --> 00:23:23.270
in a crisis-based manner,
00:23:23.270 --> 00:23:25.220
adding more tools to ERCOT's arsenal
00:23:25.220 --> 00:23:26.890
to help avoid conservation appeals
00:23:26.890 --> 00:23:28.339
and emergency conditions in the future
00:23:28.339 --> 00:23:31.180
and making generation transmission
00:23:31.180 --> 00:23:32.985
and customer demand site improvements.
00:23:32.985 --> 00:23:37.173
These SWIFT historic
actions will help improve
00:23:37.173 --> 00:23:39.835
grid reliability and send
a strong market signal
00:23:39.835 --> 00:23:43.204
for new and existing
dispatchable generation investment
00:23:43.204 --> 00:23:44.483
in our state.
00:23:46.100 --> 00:23:47.220
Well put.
00:23:47.220 --> 00:23:48.800
Commissioner McAdams, I know you a memo
00:23:48.800 --> 00:23:50.900
follow on that, on the side.
00:23:50.900 --> 00:23:51.980
I do, sir.
00:23:51.980 --> 00:23:52.865
You had full.
00:23:52.865 --> 00:23:54.900
I have plenty of thoughts.
00:23:54.900 --> 00:23:55.733
Full agenda-
00:23:55.733 --> 00:23:57.227
Some of them helpful, some not.
00:23:57.227 --> 00:24:01.640
I would say to dovetail
on comments about
00:24:01.640 --> 00:24:05.346
the broader blueprint as
outlined by the staff memo
00:24:05.346 --> 00:24:08.193
and as reviewed by stakeholders.
00:24:09.100 --> 00:24:13.229
I believe that actions
taken and affirmative actions
00:24:13.229 --> 00:24:16.280
or affirmative instructions
given on the part
00:24:16.280 --> 00:24:18.138
of the Commission, as
it relates to the blueprint,
00:24:18.138 --> 00:24:21.920
as Churchill said, this is not the end.
00:24:21.920 --> 00:24:24.240
This is only the end of the beginning.
00:24:24.240 --> 00:24:29.240
And our job moving forward
is to provide continued
00:24:29.710 --> 00:24:33.571
affirmative instruction, hard
deadlines for deliverables,
00:24:33.571 --> 00:24:38.395
public access, and
oversight to a process
00:24:38.395 --> 00:24:43.023
that traditionally has been
shrouded in market ambiguities.
00:24:44.810 --> 00:24:49.810
And this Commission along
with ERCOT looks forward
00:24:50.880 --> 00:24:52.093
to the hard work ahead.
00:24:54.500 --> 00:24:57.566
We have trusted staff
now in both entities
00:24:57.566 --> 00:25:02.540
that we can really make
a difference for Texas
00:25:02.540 --> 00:25:04.740
and in a short amount of time.
00:25:04.740 --> 00:25:06.733
Great work has already been accomplished
00:25:06.733 --> 00:25:09.130
but great work is yet to be done
00:25:09.130 --> 00:25:11.180
and I look forward to that.
00:25:11.180 --> 00:25:13.417
As it relates to my memo,
00:25:13.417 --> 00:25:17.120
the memo as in the other workshops
00:25:17.120 --> 00:25:21.610
and open meetings, discusses a policy
00:25:21.610 --> 00:25:26.610
that relates to dispatchable
interconnection prioritization
00:25:27.510 --> 00:25:31.050
or dispatchable resource
interconnection prioritization.
00:25:31.050 --> 00:25:35.010
It has not deviated much
from previous conversations,
00:25:35.010 --> 00:25:40.010
but it is the product of a
concerted stakeholder feedback.
00:25:40.040 --> 00:25:42.792
And I believe it accommodates
many of the concerns raised
00:25:42.792 --> 00:25:47.380
by industry stakeholders
00:25:47.380 --> 00:25:50.452
and those wires companies
who have to actually implement
00:25:50.452 --> 00:25:52.150
the policy.
00:25:52.150 --> 00:25:54.410
I would like to come in
Commissioner Glotfelty
00:25:54.410 --> 00:25:56.650
on his input in working with me on it.
00:25:56.650 --> 00:25:59.250
I think the outcome is a better outcome
00:25:59.250 --> 00:26:01.550
than it was originally.
00:26:01.550 --> 00:26:05.100
And I think I'll leave it at that,
00:26:05.100 --> 00:26:07.050
but let him sort of speak to his views
00:26:07.050 --> 00:26:09.570
on the memo and the policy outcome
00:26:09.570 --> 00:26:11.070
that we're seeking to achieve.
00:26:12.267 --> 00:26:15.740
Thank you, Commissioner.
00:26:15.740 --> 00:26:17.724
We each pat each other
on the back a lot, you know,
00:26:17.724 --> 00:26:19.460
but we-
00:26:19.460 --> 00:26:20.920
Today is the day for
it, it's almost Christmas.
00:26:20.920 --> 00:26:22.270
We brought the
stakeholders in here
00:26:22.270 --> 00:26:24.823
and I think we had a robust discussion.
00:26:25.890 --> 00:26:29.190
I think there were some parts
of this interconnection piece
00:26:29.190 --> 00:26:32.307
that were not understood,
some by me, some by others.
00:26:32.307 --> 00:26:35.210
I think we highlighted that.
00:26:35.210 --> 00:26:36.830
I think your memo is fine.
00:26:36.830 --> 00:26:38.804
There were a couple of
things that I wanted to point out.
00:26:38.804 --> 00:26:40.560
One of them is that, if you're
00:26:40.560 --> 00:26:41.830
in the interconnection process
00:26:41.830 --> 00:26:43.100
and you start to have problems
00:26:43.100 --> 00:26:44.380
that you've never seen before,
00:26:44.380 --> 00:26:45.605
it's incumbent upon you to let us know.
00:26:45.605 --> 00:26:46.460
That's correct.
00:26:46.460 --> 00:26:49.861
It is incumbent upon you
all to tell us what the issue is
00:26:49.861 --> 00:26:52.520
and why it has changed
and when it changed,
00:26:52.520 --> 00:26:54.180
we don't want that to happen,
00:26:54.180 --> 00:26:58.180
but we do dispatchable resources
as the chairman suggested
00:26:58.180 --> 00:26:59.990
are not just one kind of resource,
00:26:59.990 --> 00:27:01.550
but there are a lot of resources.
00:27:01.550 --> 00:27:03.680
It's an operating
characteristic that we want.
00:27:03.680 --> 00:27:07.230
So as the transmission owners in ERCOT
00:27:07.230 --> 00:27:09.366
continue to look at these resources
00:27:09.366 --> 00:27:11.828
and how they go through
the screening study process
00:27:11.828 --> 00:27:16.828
and so forth, it's my hope that
no project gets slowed down.
00:27:17.760 --> 00:27:19.655
I think that was the commitment by ERCOT
00:27:19.655 --> 00:27:23.210
that no project will go
beyond the timelines
00:27:23.210 --> 00:27:25.396
that are already existing in their rules
00:27:25.396 --> 00:27:27.250
or in their protocols.
00:27:27.250 --> 00:27:30.228
And that's important that we
give certainty in that space,
00:27:30.228 --> 00:27:33.053
to those who are willing to
invest money in our state.
00:27:34.220 --> 00:27:35.891
I would like to
highlight that the goal
00:27:35.891 --> 00:27:37.920
of the PUC is not fine
00:27:37.920 --> 00:27:42.020
but we'll settle for it now
and make positive headway.
00:27:42.020 --> 00:27:45.120
I also wanna highlight
that this policy does work
00:27:45.120 --> 00:27:49.865
as a consistent approach to
the vast untapped resources
00:27:49.865 --> 00:27:52.520
that the policy that Commissioner Cobos
00:27:52.520 --> 00:27:55.859
has been working on may
unlock for the people of Texas,
00:27:55.859 --> 00:27:58.724
meaning that as we invest
in critical infrastructure,
00:27:58.724 --> 00:28:00.750
in building out that infrastructure
00:28:00.750 --> 00:28:02.830
that's gonna serve future generations,
00:28:02.830 --> 00:28:04.624
it will unlock areas of the state
00:28:04.624 --> 00:28:07.720
that will unleash untapped,
renewable resources
00:28:07.720 --> 00:28:09.570
or dispatchable resources.
00:28:09.570 --> 00:28:10.403
And the policy enshrined
00:28:10.403 --> 00:28:14.460
in the memo helps
provide direction and clarity
00:28:14.460 --> 00:28:16.670
for those organizations
that are responsible
00:28:16.670 --> 00:28:18.570
for absorbing that
and interconnecting it
00:28:18.570 --> 00:28:21.250
and making all these
things work together.
00:28:21.250 --> 00:28:25.313
So I believe it's consistent
with the blueprint approach.
00:28:26.880 --> 00:28:30.080
Well put, by both gentlemen.
00:28:30.080 --> 00:28:33.199
And I think as a first step in this,
00:28:33.199 --> 00:28:36.780
I would be comfortable directing ERCOT
00:28:36.780 --> 00:28:40.223
to implement the framework
laid out in your memo.
00:28:41.070 --> 00:28:42.720
I would happily,
so moved, yes, sir.
00:28:42.720 --> 00:28:43.720
I agree and thank you,
00:28:43.720 --> 00:28:45.930
Commissioner McAdams
and Commissioner Glotfelty
00:28:45.930 --> 00:28:48.840
for your work and
leadership on this issue.
00:28:48.840 --> 00:28:52.050
Yes, second, those things,
00:28:52.050 --> 00:28:56.170
a lot of work goes into a
very few short few minutes
00:28:56.170 --> 00:28:58.256
on the diocese, but thank you.
00:28:58.256 --> 00:29:01.610
Let me, we want certainty here.
00:29:01.610 --> 00:29:02.760
We don't want uncertainty.
00:29:02.760 --> 00:29:04.740
This is just got a lot of
uncertainty in the market
00:29:04.740 --> 00:29:07.215
and I think what Commissioner
McAdams and I have,
00:29:07.215 --> 00:29:09.360
we have come to an agreement on
00:29:09.360 --> 00:29:11.558
that this should provide certainty
00:29:11.558 --> 00:29:14.887
but if uncertainty
prevails we come back-
00:29:14.887 --> 00:29:19.618
We can address
it, we can address it.
00:29:19.618 --> 00:29:23.430
Well put, ERCOT, I
know y'all have had
00:29:23.430 --> 00:29:24.647
a lot of communication on this.
00:29:24.647 --> 00:29:29.647
I think y'all have your
marching orders pretty clearly
00:29:29.885 --> 00:29:33.920
consider it so directed
from this Commission.
00:29:33.920 --> 00:29:35.070
Yes, thank you.
00:29:37.510 --> 00:29:42.510
With that, any other thoughts,
comments on the blueprint?
00:29:43.540 --> 00:29:48.540
I know ERCOT, PUC
staff, Commission staff
00:29:49.390 --> 00:29:50.700
in each of the Commissions,
00:29:50.700 --> 00:29:53.250
Commissions office had
put a lot of work into this.
00:29:54.260 --> 00:29:58.070
I've got a proposed
motion's pretty long.
00:29:58.070 --> 00:29:59.740
That's a lot, you're gonna need a pen
00:29:59.740 --> 00:30:00.647
to write this down
00:30:02.280 --> 00:30:04.160
but contains a lot of direction to ERCOT
00:30:04.160 --> 00:30:07.160
on general framework of implementation.
00:30:07.160 --> 00:30:09.673
I think each of your offices
have been updated on.
00:30:10.515 --> 00:30:11.348
I got you covered.
00:30:11.348 --> 00:30:12.810
Are we gonna talk
about that afterwards
00:30:12.810 --> 00:30:15.120
or are we gonna have a
little bit more discussion
00:30:15.120 --> 00:30:16.673
before you make the motion?
00:30:16.673 --> 00:30:19.220
We can, I'm happy
that I was gonna lay it out.
00:30:19.220 --> 00:30:20.720
There you go.
00:30:20.720 --> 00:30:24.493
Yeah, put it out there for
discussion piece by piece.
00:30:25.354 --> 00:30:29.850
As you all know, we've got
phase one and phase two,
00:30:29.850 --> 00:30:31.350
should we adopt the blueprint.
00:30:33.830 --> 00:30:38.830
That includes a lot of work
for ERCOT, as we all know.
00:30:40.040 --> 00:30:41.850
So I would propose we direct ERCOT
00:30:41.850 --> 00:30:44.798
to take certain blueprint
actions immediately
00:30:44.798 --> 00:30:47.950
and then ask them to
report back on implement,
00:30:47.950 --> 00:30:50.560
needs for implementation
and status of implementation
00:30:50.560 --> 00:30:53.943
on various other elements
as we go through progress,
00:30:55.630 --> 00:30:57.774
I would vote to adopt,
I would ask for a vote
00:30:57.774 --> 00:31:02.070
to adopt the December
6th filing as the Commission
00:31:02.070 --> 00:31:04.311
that's market redesign blueprint
00:31:04.311 --> 00:31:09.160
and ask that, that motion
include a proposal to,
00:31:09.160 --> 00:31:11.051
or a direction to ERCOT, to implement
00:31:11.051 --> 00:31:14.993
phase one RDC changes
by January 1st, 2022,
00:31:17.290 --> 00:31:21.820
implement all other phase one
actions under ERCOT control
00:31:21.820 --> 00:31:22.970
as soon as practicable,
00:31:26.220 --> 00:31:29.380
evaluate phase one of the blueprint
00:31:29.380 --> 00:31:32.440
and file a report on this
project by January 10th,
00:31:32.440 --> 00:31:33.993
with the following information,
00:31:35.170 --> 00:31:37.610
project plan for implementing
all phase one items,
00:31:37.610 --> 00:31:42.234
including which items would start first
00:31:42.234 --> 00:31:44.770
and how the implementation
would overlap,
00:31:44.770 --> 00:31:48.041
including opportunities for
synergies of implementation
00:31:48.041 --> 00:31:53.041
and constraints created
by dual implementation.
00:31:58.094 --> 00:31:59.230
Also with that information,
00:31:59.230 --> 00:32:00.840
request a description of changes
00:32:00.840 --> 00:32:02.900
to ERCOT's information
technology systems
00:32:02.900 --> 00:32:06.223
for implementing each action
item where it's applicable,
00:32:07.120 --> 00:32:09.970
include an estimate
of the amount of time
00:32:09.970 --> 00:32:12.219
each action item will take to implement,
00:32:12.219 --> 00:32:15.250
including estimates of
significant milestones
00:32:15.250 --> 00:32:18.440
within each action
item where applicable,
00:32:18.440 --> 00:32:20.640
milestones and timelines,
Commissioner Cobos
00:32:21.580 --> 00:32:24.092
as with your Rio Grande Valley project,
00:32:24.092 --> 00:32:26.100
a description of human resource needs
00:32:26.100 --> 00:32:27.890
to implement phase one action items
00:32:27.890 --> 00:32:29.680
including information
on how the progress
00:32:29.680 --> 00:32:32.598
of current ERCOT projects
and activities may be impacted
00:32:32.598 --> 00:32:34.970
by implementation of these items.
00:32:34.970 --> 00:32:37.120
I suspect we'll hear
about the settlements.
00:32:38.920 --> 00:32:42.000
Also include a description
of any impediments
00:32:42.000 --> 00:32:45.640
to the implementation of
the phase one action items
00:32:45.640 --> 00:32:47.063
with recommendations on how to remove
00:32:47.063 --> 00:32:49.193
or mitigate those impediments.
00:32:53.850 --> 00:32:56.080
Finally, I would direct ERCOT,
00:32:56.080 --> 00:32:58.055
I would ask that the motion direct ERCOT
00:32:58.055 --> 00:33:01.640
to prepare NPRRs to
facilitate these directives
00:33:01.640 --> 00:33:06.369
for the Commission's
review prior to filing the report
00:33:06.369 --> 00:33:08.847
with us to ensure those NPRRs capture
00:33:08.847 --> 00:33:11.283
the Commission's intent.
00:33:12.850 --> 00:33:14.900
That's largely phase one, phase two,
00:33:14.900 --> 00:33:19.170
I would ask that not be
included in this formal memo,
00:33:19.170 --> 00:33:22.089
that be as I think each of
you all have been briefed on,
00:33:22.089 --> 00:33:26.682
coordinated with staff
to work with ERCOT,
00:33:26.682 --> 00:33:29.460
to identify the best course of action
00:33:29.460 --> 00:33:33.060
for implementation with both existing
00:33:33.060 --> 00:33:34.623
and potentially new resources.
00:33:35.780 --> 00:33:38.470
But that, I don't think
that does not require
00:33:38.470 --> 00:33:41.603
a formal action from the diocese.
00:33:42.460 --> 00:33:45.853
That's a lot, you get back
through different pieces of that.
00:33:47.477 --> 00:33:50.011
Can we take
phase one first and.
00:33:50.011 --> 00:33:51.650
Sure.
00:33:51.650 --> 00:33:53.200
Okay.
00:33:53.200 --> 00:33:58.200
Just, so I think just
from me as laid out,
00:34:02.010 --> 00:34:04.273
I'm good with process.
00:34:05.300 --> 00:34:10.300
It looks like we get to
reengage and as per,
00:34:11.180 --> 00:34:13.026
it's somewhat familiar to us,
00:34:13.026 --> 00:34:16.960
somewhat familiar as securitization was,
00:34:16.960 --> 00:34:20.820
a plan is filed on implementation
or at least brought back
00:34:20.820 --> 00:34:25.410
to ensure that it captures
all, how each of our offices
00:34:25.410 --> 00:34:29.570
see the mechanics of
implementation moving forward
00:34:29.570 --> 00:34:32.570
and to address any of
those questions we may have
00:34:32.570 --> 00:34:36.199
so that we made an answer
to them for further direction.
00:34:36.199 --> 00:34:37.853
That's the way I hear it.
00:34:39.040 --> 00:34:39.873
Short way to say this as,
00:34:39.873 --> 00:34:41.801
what are the decision
points you need, ERCOT?
00:34:41.801 --> 00:34:43.817
Bring those back to us and we'll answer.
00:34:43.817 --> 00:34:45.723
And we readdress.
00:34:45.723 --> 00:34:50.723
So to me, I think as per the memo,
00:34:52.650 --> 00:34:55.370
consistent with all the
near-term approaches
00:34:55.370 --> 00:34:57.660
we believe were absolutely necessary,
00:34:57.660 --> 00:35:01.075
this is a affirmative
first step to take.
00:35:01.075 --> 00:35:03.423
It's a hell of a major step.
00:35:04.366 --> 00:35:09.366
I agree, I think that
what gets lost in this
00:35:11.310 --> 00:35:15.020
is that these are massive
changes in the market,
00:35:15.020 --> 00:35:18.385
they cost a lot of money and, you know,
00:35:18.385 --> 00:35:22.240
Texans pay for grid
reliability in different ways.
00:35:22.240 --> 00:35:24.253
They're paying for it this
way and we need to deliver,
00:35:24.253 --> 00:35:26.126
we need the industry to deliver
00:35:26.126 --> 00:35:30.438
that we are expecting
a more reliable system,
00:35:30.438 --> 00:35:34.781
the costs, the timing, the certainty,
00:35:34.781 --> 00:35:39.330
all of these things are
thrown into disarray
00:35:39.330 --> 00:35:42.660
when this Commission decides
to try to act on something,
00:35:42.660 --> 00:35:45.230
whether it's legislatively
driven or on our own accord,
00:35:45.230 --> 00:35:48.797
and it's incumbent upon us
to implement those quickly
00:35:48.797 --> 00:35:52.090
so that the industry
can get back to certainty.
00:35:52.090 --> 00:35:54.280
With certainty comes investment,
00:35:54.280 --> 00:35:58.352
with uncertainty we leave
the door open for questions
00:35:58.352 --> 00:36:03.352
and folks, those with capital
resources likely do not invest
00:36:03.507 --> 00:36:05.110
during those times.
00:36:05.110 --> 00:36:07.070
And if there's anything that I believe
00:36:07.070 --> 00:36:08.940
that this Commission is trying to do
00:36:08.940 --> 00:36:13.490
and what ERCOT's trying to
do, it's to pursue investment,
00:36:13.490 --> 00:36:15.673
whether that's investment
in demand response,
00:36:15.673 --> 00:36:19.530
or dispatchable resources,
thermal resources,
00:36:19.530 --> 00:36:22.028
or renewable resources,
you know, that's what we need,
00:36:22.028 --> 00:36:24.227
but we need to provide that.
00:36:24.227 --> 00:36:29.050
So I'm very happy that
we've done the ORDC
00:36:29.050 --> 00:36:32.860
and these phase one
components, you know,
00:36:32.860 --> 00:36:34.950
I think we are, you know,
00:36:34.950 --> 00:36:37.384
we had the citizens
come and talk to us before
00:36:37.384 --> 00:36:41.020
but I wish they had seen
this memo, you know,
00:36:41.020 --> 00:36:44.430
number two, demand response,
pursue market modifications,
00:36:44.430 --> 00:36:46.300
for demand response pricing.
00:36:46.300 --> 00:36:49.100
And this is as they
said, for the people.
00:36:49.100 --> 00:36:52.140
We're talking about
energy efficiency changes,
00:36:52.140 --> 00:36:54.250
that's what they asked
for, for the people.
00:36:54.250 --> 00:36:56.483
These are all components
of a market that are viable
00:36:56.483 --> 00:37:01.483
and valuable for companies
and for people across the state.
00:37:01.610 --> 00:37:05.681
And I think that we've
done some valuable things
00:37:05.681 --> 00:37:10.681
as we go forward, we
just need to continue
00:37:11.160 --> 00:37:13.530
to think that we're not
spending our own money,
00:37:13.530 --> 00:37:15.550
we're spending other
people's money it's expensive,
00:37:15.550 --> 00:37:17.250
it's somebody else's money.
00:37:17.250 --> 00:37:20.130
And that as we develop these,
00:37:20.130 --> 00:37:22.355
we need to keep that first and foremost
00:37:22.355 --> 00:37:25.980
that it's someone else's
money and we're using it
00:37:25.980 --> 00:37:28.093
to provide reliability everybody.
00:37:29.202 --> 00:37:33.460
Thank you,
Commissioner Glotfelty
00:37:33.460 --> 00:37:37.040
and I agree that all the phase one items
00:37:37.040 --> 00:37:40.590
should be implemented as
soon as possible with respect
00:37:40.590 --> 00:37:42.528
to ORDC, the operating
reserve demand curve.
00:37:42.528 --> 00:37:47.339
I think I would give a little
bit more specific direction
00:37:47.339 --> 00:37:49.430
to ERCOT to increase
the MCL to 3000 effective
00:37:49.430 --> 00:37:51.530
January 1st, 2022.
00:37:51.530 --> 00:37:53.110
I think we have lowered the cap.
00:37:53.110 --> 00:37:57.000
We've already adopted
the lower price cap
00:37:57.000 --> 00:37:58.461
of $5,000 per megawatt hour,
00:37:58.461 --> 00:38:01.540
but if we can give them
that specific directive
00:38:01.540 --> 00:38:04.930
to increase the MCL to 3000
megawatts effective January 1st,
00:38:04.930 --> 00:38:06.000
I think, I believe Kanaan,
00:38:06.000 --> 00:38:08.067
that is the direction
that y'all would need
00:38:08.067 --> 00:38:10.640
to get it done ASAP by January 1st.
00:38:10.640 --> 00:38:12.100
Yeah, that's in the directive,
00:38:12.100 --> 00:38:13.766
Okay.
It's in the memo-
00:38:13.766 --> 00:38:15.319
Okay, great, great, great.
Or the blueprint, yes.
00:38:15.319 --> 00:38:19.510
And yes, I echo, you know,
00:38:19.510 --> 00:38:22.120
many of the sentiments are
a lot of very important actions
00:38:22.120 --> 00:38:23.817
in the phase one list,
00:38:23.817 --> 00:38:27.070
the from fuel product is
tremendously important,
00:38:27.070 --> 00:38:29.300
that will provide
greater liability resiliency
00:38:29.300 --> 00:38:33.163
in the future winter seasons
pursuant to Senate Bill Three,
00:38:34.530 --> 00:38:36.560
a whole host of actions here that yes,
00:38:36.560 --> 00:38:38.109
that do involve demand response
00:38:38.109 --> 00:38:40.018
as Commissioner Glotfelty noted,
00:38:40.018 --> 00:38:44.280
involve the demand side by way of ERs,
00:38:44.280 --> 00:38:45.950
emergency response serve reform.
00:38:45.950 --> 00:38:48.770
That is a service that ensures
00:38:48.770 --> 00:38:52.660
and that load resources
reduce demand the system
00:38:52.660 --> 00:38:54.203
to help maintain reliability.
00:38:56.070 --> 00:38:59.900
We will be looking at
our PUC energy efficiency
00:39:00.810 --> 00:39:02.810
load management programs.
00:39:02.810 --> 00:39:06.330
And so all of those actions
are our demand side focused.
00:39:06.330 --> 00:39:08.610
And I'm glad you raised
that Commissioner Glotfelty,
00:39:08.610 --> 00:39:13.123
I think we heard a lot of
expressions for, you know,
00:39:13.123 --> 00:39:15.730
the need to focus on
the demand side as well.
00:39:15.730 --> 00:39:18.780
And there are a host of
demand side improvements
00:39:18.780 --> 00:39:21.145
and enhancements that
we are looking to address
00:39:21.145 --> 00:39:25.223
by way of our phase one action items.
00:39:27.600 --> 00:39:28.433
Well put.
00:39:33.590 --> 00:39:35.780
Hard to understate the breadth and depth
00:39:35.780 --> 00:39:40.780
of these phase one
reforms and any other time,
00:39:41.880 --> 00:39:44.190
each of these would be
considered remarkable on its own,
00:39:44.190 --> 00:39:47.303
and yes, Commissioner
Glotfelty, these cost money,
00:39:48.420 --> 00:39:51.233
but nothing's more
expensive than losing power.
00:39:53.090 --> 00:39:56.060
Mr. Chairman, just
to support you on that.
00:39:56.060 --> 00:39:57.457
I think that's why it's important
00:39:57.457 --> 00:40:02.243
to articulate the breadth of
the changes and modifications,
00:40:02.243 --> 00:40:06.565
the spectrum of tools that
we will now have available
00:40:06.565 --> 00:40:10.146
at the completion of
this over the, again,
00:40:10.146 --> 00:40:14.439
the next two years,
subject to ERCOT feedback.
00:40:14.439 --> 00:40:18.176
And it also provides those
mechanisms for the Commission
00:40:18.176 --> 00:40:20.690
and the representative
government to be able to speak
00:40:20.690 --> 00:40:24.720
to the scale of these
services so that again,
00:40:24.720 --> 00:40:27.876
we can address any contingency
that should present itself
00:40:27.876 --> 00:40:30.640
in the foreseeable future in terms
00:40:30.640 --> 00:40:32.890
of electric reliability in Texas.
00:40:32.890 --> 00:40:36.804
So, you know, subject
to any other feedback,
00:40:36.804 --> 00:40:38.613
I'd be happy to make your motion.
00:40:42.553 --> 00:40:43.386
You got everything you need
00:40:43.386 --> 00:40:44.232
or you want me to read that again?
00:40:44.232 --> 00:40:46.050
So, Steven, if you
want me to try to articulate
00:40:46.050 --> 00:40:47.456
all this stuff.
00:40:47.456 --> 00:40:48.420
(speaker laughing)
00:40:48.420 --> 00:40:51.930
So I listened carefully
to the chairman
00:40:51.930 --> 00:40:55.463
and have the things that he numerated.
00:40:56.412 --> 00:41:00.460
And if you want to make
your motion to adopt that,
00:41:00.460 --> 00:41:02.860
I have what I need.
00:41:02.860 --> 00:41:07.860
I would move to direct based
on the chairman's comments,
00:41:11.400 --> 00:41:16.400
reflective of Commissioner
Cobos\ conversation
00:41:16.554 --> 00:41:21.554
and issue those directives to
both PUC and ERCOT staff.
00:41:24.520 --> 00:41:25.691
We have a motion,
is there a second?
00:41:25.691 --> 00:41:26.920
Second.
00:41:26.920 --> 00:41:28.150
All in favor say aye.
00:41:28.150 --> 00:41:29.647
Aye.
00:41:29.647 --> 00:41:32.169
Motion passes, non opposed.
00:41:32.169 --> 00:41:36.210
I made the wrong
motion, didn't I, Steven?
00:41:36.210 --> 00:41:38.150
Well the directives
said Commission staff,
00:41:38.150 --> 00:41:40.130
I thought I heard, we
said we didn't need
00:41:40.130 --> 00:41:42.410
to take formal action
on that and I'm not sure-
00:41:42.410 --> 00:41:43.510
Yeah,
for phase one.
00:41:43.510 --> 00:41:46.130
Other than the staff's
supposed to work with ERCOT
00:41:46.130 --> 00:41:46.963
on phase two.
00:41:46.963 --> 00:41:48.300
Well, then I withdraw
those directive
00:41:48.300 --> 00:41:50.840
to Commission staff ERCOT on all.
00:41:50.840 --> 00:41:53.756
And, then remove
and revote, please, sir.
00:41:53.756 --> 00:41:58.756
I move to, you've never
follow Robert's rules.
00:42:00.150 --> 00:42:01.788
Come on, you gotta spit it out.
00:42:01.788 --> 00:42:02.621
(everyone laughing)
00:42:02.621 --> 00:42:07.170
You move like you
just did with the exception
00:42:07.170 --> 00:42:10.090
of the directives to
the Commission staff.
00:42:10.090 --> 00:42:10.923
Okay.
00:42:10.923 --> 00:42:12.760
There's a motion,
Commissioner McAdams motion
00:42:12.760 --> 00:42:16.210
stands on the floor, less direction
00:42:16.210 --> 00:42:18.180
to Commission staff, awaiting a second.
00:42:18.180 --> 00:42:19.440
So moved.
00:42:19.440 --> 00:42:20.273
Second.
00:42:20.273 --> 00:42:21.330
All in favor say aye.
00:42:21.330 --> 00:42:22.760
Aye.
00:42:22.760 --> 00:42:24.789
None opposed, motion passes.
00:42:24.789 --> 00:42:26.130
(speakers laughing)
00:42:26.130 --> 00:42:28.003
You're making it hard
for us today, Steven.
00:42:29.120 --> 00:42:34.120
All right, phase two, I
didn't fully articulate that.
00:42:34.380 --> 00:42:39.380
I would ask for a motion
to direct Commission staff
00:42:39.870 --> 00:42:43.723
to work with ERCOT, to get into,
00:42:43.723 --> 00:42:46.711
to recap, there's some big, big concepts
00:42:46.711 --> 00:42:51.711
to be explored and, or
crystallized and implemented
00:42:53.559 --> 00:42:55.946
in phase two, load side
reliability mechanism
00:42:55.946 --> 00:43:00.705
of some form based on the
principles outlined in the memo
00:43:00.705 --> 00:43:03.440
and a backup reliability serve,
00:43:03.440 --> 00:43:05.143
backstop for liability service.
00:43:06.500 --> 00:43:11.110
These are more abstract
concepts, and we all,
00:43:11.110 --> 00:43:13.630
we have all agreed to those principles,
00:43:13.630 --> 00:43:16.130
which is the most important
part I would ask simply
00:43:16.130 --> 00:43:19.743
for and we know these
are longer term reforms,
00:43:20.750 --> 00:43:25.230
but the most substantial ones
we will make in the long run.
00:43:25.230 --> 00:43:28.720
I would ask simply at this
point for Commission staff
00:43:28.720 --> 00:43:33.705
to work with ERCOT staff to have,
00:43:33.705 --> 00:43:38.705
to jointly develop the
needed inputs specifications
00:43:44.090 --> 00:43:49.090
and quantification relevant metrics
00:43:49.620 --> 00:43:54.620
that ERCOT would need to build,
00:43:54.830 --> 00:43:57.640
design each of these two products
00:44:01.430 --> 00:44:02.990
and not, don't fill in the blanks,
00:44:02.990 --> 00:44:06.300
just tell us what are the
specifications they need
00:44:06.300 --> 00:44:10.723
and then we can, and I'd
ask for that by February 1st,
00:44:12.680 --> 00:44:13.603
February 15th?
00:44:15.026 --> 00:44:18.109
(everyone laughing)
00:44:23.578 --> 00:44:24.710
Yes, yes.
00:44:24.710 --> 00:44:26.740
March 1st?
00:44:26.740 --> 00:44:28.960
Let's let's
target February 15th.
00:44:28.960 --> 00:44:30.890
Let's do target February 15.
00:44:30.890 --> 00:44:33.857
And if we see something
else I'll ask for more time
00:44:33.857 --> 00:44:36.166
but I'd rather hold
our feet to the fire.
00:44:36.166 --> 00:44:38.010
Yeah, me too.
00:44:38.010 --> 00:44:39.112
Agreed.
00:44:39.112 --> 00:44:40.980
There's a list of
the specifications
00:44:40.980 --> 00:44:42.580
we need to build these products.
00:44:43.720 --> 00:44:45.770
At that point staff can synthesize that,
00:44:45.770 --> 00:44:47.836
bring that back to each
of our offices for review,
00:44:47.836 --> 00:44:51.340
at which point we can
reconvene and decide
00:44:51.340 --> 00:44:53.173
the best course forward.
00:44:54.090 --> 00:44:55.303
I agree, Chairman Lake,
00:44:55.303 --> 00:44:57.670
I think that is the best course forward.
00:44:57.670 --> 00:45:00.990
I would add and I think
we're all in consensus here
00:45:00.990 --> 00:45:05.320
and agreement, I think
both sides, you know,
00:45:05.320 --> 00:45:08.590
ERCOT can give us on the
load side and the backstop side,
00:45:08.590 --> 00:45:10.820
a list of all the decision points,
00:45:10.820 --> 00:45:13.203
I think with respect to the
backstop reliability service
00:45:13.203 --> 00:45:15.210
the parameters and the decision points
00:45:15.210 --> 00:45:16.450
are pretty clear cut already.
00:45:16.450 --> 00:45:18.030
I think we've been
sort of looking at them.
00:45:18.030 --> 00:45:21.340
If there is a way as I have, you know,
00:45:21.340 --> 00:45:24.580
we've sort of looked at the
backstop reliability service
00:45:24.580 --> 00:45:27.950
to serve as sort of a bridge if ERCOT,
00:45:27.950 --> 00:45:31.420
I think who's been ruling
over these decision points
00:45:31.420 --> 00:45:32.253
a little bit more
00:45:32.253 --> 00:45:33.760
'cause I think they're
more clearly defined
00:45:33.760 --> 00:45:38.760
if they can come back
with those decision points,
00:45:39.210 --> 00:45:43.030
maybe first that way we
can get the trucks rolling
00:45:43.030 --> 00:45:45.050
and get that going a little bit faster
00:45:45.050 --> 00:45:47.014
because I think time is
of the essence in 2022
00:45:47.014 --> 00:45:49.333
with all the work that
ERCOT has on their plate.
00:45:49.333 --> 00:45:53.390
If we can, you know, maybe get that out
00:45:53.390 --> 00:45:55.013
February 1st from ERCOT.
00:45:56.760 --> 00:45:57.727
We're back to February 1st.
00:45:57.727 --> 00:45:58.730
Oh, I'm sorry.
00:45:58.730 --> 00:46:01.360
Yes February 1st or
even January, I think,
00:46:01.360 --> 00:46:02.870
there's, I mean, I think the parameters
00:46:02.870 --> 00:46:04.600
are pretty well laid out on that one
00:46:04.600 --> 00:46:07.280
in terms of what decision
points you need from us.
00:46:07.280 --> 00:46:08.870
We may not be able to
give you everything you need
00:46:08.870 --> 00:46:10.183
at once, but.
00:46:15.869 --> 00:46:17.630
(indistinct)
00:46:17.630 --> 00:46:20.450
So you're talking
about the fuel service?
00:46:22.379 --> 00:46:23.680
Fuel
backstop reliability service.
00:46:23.680 --> 00:46:26.130
Well, fuel is part of phase one
00:46:26.130 --> 00:46:28.680
and the backstop reliability service
00:46:28.680 --> 00:46:30.889
I think there are decision
points that you would be looking
00:46:30.889 --> 00:46:35.600
from us to provide you as
similar to the load side as well.
00:46:35.600 --> 00:46:39.500
However, if we, if you know,
00:46:39.500 --> 00:46:41.850
if we can give you
some direction on that,
00:46:41.850 --> 00:46:43.460
'cause I think there's just more,
00:46:43.460 --> 00:46:45.620
clearly defined decision
points at this point
00:46:45.620 --> 00:46:47.390
for the backup stop reliability services
00:46:47.390 --> 00:46:49.622
you discussed how to procure
it, how much and all that,
00:46:49.622 --> 00:46:52.408
if we can start getting that rolling,
00:46:52.408 --> 00:46:56.248
that would be great.
00:46:56.248 --> 00:46:59.580
So I can try and get
information on that one back
00:46:59.580 --> 00:47:01.149
to you February 1st or.
00:47:01.149 --> 00:47:03.430
(indistinct)
00:47:03.430 --> 00:47:07.740
As soon as, yes, that's
hard to stop February 15th,
00:47:07.740 --> 00:47:10.404
but do start with backstop
reliability service first
00:47:10.404 --> 00:47:12.500
and send that along as
soon as humanly possible.
00:47:12.500 --> 00:47:14.099
Does that work?
00:47:14.099 --> 00:47:14.983
Yes, yes, sir,
thank you so much.
00:47:14.983 --> 00:47:16.660
That's important
that one goes first.
00:47:16.660 --> 00:47:19.713
That was part of the,
probably put that first.
00:47:20.639 --> 00:47:22.180
Commissioners, If I may,
00:47:22.180 --> 00:47:27.180
perhaps we would
like to set aside a time
00:47:27.620 --> 00:47:31.090
at each open meeting
to provide an update
00:47:31.090 --> 00:47:34.534
on how these reports are
progressing between staff
00:47:34.534 --> 00:47:37.693
and ERCOT and we can
continue to post this item
00:47:37.693 --> 00:47:42.086
in the other meetings through
the first quarter of the year.
00:47:42.086 --> 00:47:43.117
Excellent idea.
00:47:43.117 --> 00:47:45.015
Sounds great.
00:47:45.015 --> 00:47:45.932
The word?
00:47:47.345 --> 00:47:48.178
Sounds great, thank you
00:47:48.178 --> 00:47:49.844
and thank you for your
consideration. Thank you, Kanaan.
00:47:52.910 --> 00:47:56.730
Thoughts on the proposed
motion to direct ERCOT
00:47:56.730 --> 00:48:00.150
to bring us specs for phase two products
00:48:00.150 --> 00:48:05.000
and decision points about February 15th,
00:48:05.000 --> 00:48:07.600
given the longer-term nature of these
00:48:07.600 --> 00:48:10.560
and we can evaluate and
move forward as a Commission
00:48:10.560 --> 00:48:14.143
at that point on best
path for implementation.
00:48:15.900 --> 00:48:16.733
You want me to go?
00:48:16.733 --> 00:48:19.421
Yeah, or y'all can
just say yes too.
00:48:19.421 --> 00:48:21.910
(speakers laughing)
00:48:21.910 --> 00:48:24.640
I think that I'm getting
these questions to us
00:48:24.640 --> 00:48:25.913
soon is important.
00:48:27.554 --> 00:48:30.020
I wanna take a step
back to our last meeting,
00:48:30.020 --> 00:48:34.587
I committed that I
support the evaluation
00:48:34.587 --> 00:48:39.587
and the analysis necessary
to look at a LSE obligation,
00:48:40.113 --> 00:48:42.740
a deck program.
00:48:42.740 --> 00:48:45.450
I am not sitting here
saying that I support it
00:48:45.450 --> 00:48:48.060
a hundred percent because I don't know.
00:48:48.060 --> 00:48:50.240
I still don't have the
analytical underpinnings
00:48:50.240 --> 00:48:52.570
of anything to say that
it's the best program
00:48:52.570 --> 00:48:54.020
for reliability in the state
00:48:56.539 --> 00:48:58.040
or that it will solve the
problems that we need
00:48:58.040 --> 00:48:59.960
to solve for reliability.
00:48:59.960 --> 00:49:02.789
So I understand we're gonna go ahead
00:49:02.789 --> 00:49:05.240
and we're going to study this
00:49:05.240 --> 00:49:07.470
and we're gonna try to understand
00:49:07.470 --> 00:49:11.480
the parameters associated
with such implementation
00:49:11.480 --> 00:49:16.480
and do a deeper dive on the
technical pieces for putting it,
00:49:16.790 --> 00:49:19.392
something like this in place,
the impacts to consumers
00:49:19.392 --> 00:49:24.392
but to me, the vast majority
of that is dependent upon
00:49:25.394 --> 00:49:30.394
an analytical model based
analysis of what we want
00:49:33.280 --> 00:49:37.098
and with sensitivities around,
00:49:37.098 --> 00:49:39.860
sensitivities needed to show
00:49:39.860 --> 00:49:41.139
kind of those one-off scenarios.
00:49:41.139 --> 00:49:46.139
I believe that every market
out there that has been
00:49:48.057 --> 00:49:52.362
contemplating these
changes underpins their work
00:49:52.362 --> 00:49:57.010
in analytical value,
valuable analytical work
00:49:57.010 --> 00:49:59.390
and I think we should do the same.
00:49:59.390 --> 00:50:03.300
To that end, I have
had meetings with some
00:50:03.300 --> 00:50:08.300
of the nation's top modeling
folks at our national labs
00:50:08.633 --> 00:50:13.633
and other places that have
looked at different mechanisms
00:50:15.650 --> 00:50:17.890
within the load serving entity family,
00:50:17.890 --> 00:50:22.890
or the load serving entity
family to see what works,
00:50:23.180 --> 00:50:26.530
what doesn't, kind of in
accordance with our system.
00:50:26.530 --> 00:50:28.280
We will continue to work with them
00:50:28.280 --> 00:50:30.020
and see if there's a product
that we can come up with
00:50:30.020 --> 00:50:33.900
and we can all discussion
and have a bigger,
00:50:33.900 --> 00:50:34.900
robust discussion.
00:50:34.900 --> 00:50:39.900
But I just, I want to kind
of set my compass to say,
00:50:40.800 --> 00:50:43.040
I'm not a hundred percent
sold on all of this yet,
00:50:43.040 --> 00:50:45.950
but I am a hundred percent
sold on going forward
00:50:45.950 --> 00:50:48.970
and studying is this
the best thing to that
00:50:48.970 --> 00:50:49.870
we can look at?
00:50:49.870 --> 00:50:52.170
And I think going
forward and looking at it
00:50:53.037 --> 00:50:54.340
and analyzing it as the
thing that we need to do,
00:50:54.340 --> 00:50:56.520
but I'm not gonna prejudge my outcome
00:50:56.520 --> 00:50:57.710
and say that that's still a thing
00:50:57.710 --> 00:50:59.500
that we absolutely have.
00:50:59.500 --> 00:51:00.797
Still better (indistinct).
00:51:02.090 --> 00:51:02.923
It could be.
00:51:04.100 --> 00:51:06.734
We got to figure out what
the specs of the car are
00:51:06.734 --> 00:51:08.911
before we know how much it's gonna cost.
00:51:08.911 --> 00:51:13.911
Yeah, maybe, but, if you
wanna use a car analogy,
00:51:15.850 --> 00:51:18.492
I think that's right but sometimes
00:51:18.492 --> 00:51:21.743
I see that these load
serving reliability mechanisms,
00:51:21.743 --> 00:51:23.740
it's not the first car
that we're talking about,
00:51:23.740 --> 00:51:26.208
it's the backup car and the
backup to the backup car.
00:51:26.208 --> 00:51:27.875
And sometimes that third backup,
00:51:27.875 --> 00:51:31.111
you're better to buy parts
than to buy a third car.
00:51:31.111 --> 00:51:36.111
So that's where the analytical
component has to come in
00:51:36.510 --> 00:51:38.460
to determine what's
the most cost effective
00:51:38.460 --> 00:51:41.513
for our consumers knowing
the goal that we want to achieve.
00:51:43.470 --> 00:51:45.349
So when you still need the
specs and the decision points.
00:51:45.349 --> 00:51:48.040
We need specs
and decision points
00:51:48.040 --> 00:51:49.563
in order to model, correct.
00:51:50.490 --> 00:51:52.760
So that's where I was
headed Mr. Chairman
00:51:52.760 --> 00:51:54.443
And my question, just to clarify,
00:51:55.588 --> 00:51:57.440
it's clarifying question, we
will ask ERCOT and again,
00:51:57.440 --> 00:51:59.673
this is just putting it another
way and you had it in there,
00:51:59.673 --> 00:52:01.209
but what are the technical questions
00:52:01.209 --> 00:52:02.634
from the market administrator that need
00:52:02.634 --> 00:52:07.634
to be answered on each
of the proposed obligations?
00:52:11.810 --> 00:52:13.390
Starting with
backstop reliability?
00:52:13.390 --> 00:52:14.223
Yes, sir.
00:52:14.223 --> 00:52:15.230
First.
00:52:15.230 --> 00:52:19.393
In order to be implemented
in any form or fashion.
00:52:21.060 --> 00:52:23.469
And then that will then
go to an analytic process
00:52:23.469 --> 00:52:26.661
to answer some of the questions
00:52:26.661 --> 00:52:31.661
as Commissioner Glotfelty
highlighted, but just on its face,
00:52:31.860 --> 00:52:33.713
we will ask the technical
experts at ERCOT
00:52:33.713 --> 00:52:38.713
to identify those questions
on a performance basis
00:52:39.224 --> 00:52:42.283
that must be answered in
order to implement anything
00:52:42.283 --> 00:52:46.050
so that experts can
then create something.
00:52:46.050 --> 00:52:47.280
We know which dials to turn up,
00:52:47.280 --> 00:52:48.300
which dials to turn down,
00:52:48.300 --> 00:52:50.597
we got to know the very specific dials.
00:52:50.597 --> 00:52:51.450
Okay.
00:52:51.450 --> 00:52:52.283
Correct.
00:52:53.700 --> 00:52:55.813
Yep, same as
Commissioner Glotfelty,
00:52:57.008 --> 00:52:58.220
I'll put a bullet point
disclaimer on that.
00:52:58.220 --> 00:53:00.140
Don't wanna prejudge anything.
00:53:00.140 --> 00:53:03.070
You know, I'm afraid
of making any decision
00:53:03.070 --> 00:53:06.575
without a concrete
analytics following it on cost,
00:53:06.575 --> 00:53:09.413
impact on market
power, retail competition,
00:53:09.413 --> 00:53:11.900
the energy only market design.
00:53:11.900 --> 00:53:14.010
But I would support a
path forward to where
00:53:14.010 --> 00:53:16.880
we get this feedback from
ERCOT in a timely way
00:53:16.880 --> 00:53:19.020
so that we can start that next phase
00:53:19.020 --> 00:53:22.627
of the analysis in the spring.
00:53:24.970 --> 00:53:26.440
I would echo, I guess,
00:53:26.440 --> 00:53:28.045
the disclaimers that
Commissioner Glotfelty
00:53:28.045 --> 00:53:30.559
and Commissioner McAdams laid out,
00:53:30.559 --> 00:53:33.582
but will continue to
support that come to us
00:53:33.582 --> 00:53:36.566
with the technical specifications
00:53:36.566 --> 00:53:41.239
and parameters and
framework of decision making
00:53:41.239 --> 00:53:42.630
that we would need to make
00:53:43.548 --> 00:53:48.548
in order to properly
evaluate the mechanisms.
00:53:52.578 --> 00:53:53.905
I don't have any disclaimers.
00:53:53.905 --> 00:53:56.047
(everyone laughing)
00:53:56.047 --> 00:54:00.889
I got a motion to direct
ERCOT to work with PUC staff,
00:54:00.889 --> 00:54:05.889
to identify and articulate
the specifications,
00:54:08.430 --> 00:54:11.684
decision points and other
relevant metrics needed to develop
00:54:11.684 --> 00:54:15.130
the products described in phase two
00:54:16.680 --> 00:54:21.085
of the December 6th
memo with the priority
00:54:21.085 --> 00:54:25.740
on backstop reliability service with,
00:54:25.740 --> 00:54:28.130
and I'll stop there, that's,
00:54:28.130 --> 00:54:29.260
I'll ask for that motion.
00:54:29.260 --> 00:54:30.360
So moved.
00:54:30.360 --> 00:54:31.370
Second.
00:54:31.370 --> 00:54:32.660
All in favor say aye.
00:54:32.660 --> 00:54:33.890
Aye.
00:54:33.890 --> 00:54:35.207
None opposed,
the motion passes.
00:54:35.207 --> 00:54:38.628
Thank you all very much.
00:54:38.628 --> 00:54:40.987
Question.
Thank you, Chairman Lake.
00:54:40.987 --> 00:54:45.050
Do we want that directive
in the same document
00:54:45.050 --> 00:54:47.905
that we're going to prepare
on the previous function.
00:54:47.905 --> 00:54:50.184
I would separate it.
00:54:50.184 --> 00:54:52.158
(indistinct)
00:54:52.158 --> 00:54:52.991
I would say
consensus, keep as one.
00:54:52.991 --> 00:54:54.768
Yeah, I think
so, it's a blueprint.
00:54:54.768 --> 00:54:55.601
Blueprint, right.
00:54:55.601 --> 00:54:59.461
(indistinct chatter)
00:54:59.461 --> 00:55:00.474
With a disclaimer.
00:55:00.474 --> 00:55:03.007
(everyone laughing)
00:55:03.007 --> 00:55:04.653
That would be
the last four pages.
00:55:05.844 --> 00:55:06.677
Hey, Jimmy, I'm
the lawyer here.
00:55:06.677 --> 00:55:09.513
I'm supposed to be the
one with the (indistinct)
00:55:09.513 --> 00:55:10.739
(speaker laughing)
00:55:10.739 --> 00:55:14.373
All right, that concludes
our formal agenda for the day.
00:55:15.401 --> 00:55:18.700
It has been a long day,
it's been a long month,
00:55:18.700 --> 00:55:22.060
it's been a long six
months, it's been a long year
00:55:22.060 --> 00:55:26.390
so I will not, I don't have much to say
00:55:26.390 --> 00:55:30.083
to delay concluding
business for today other than,
00:55:31.410 --> 00:55:34.063
it's been a hell of what
six, seven, eight months
00:55:34.063 --> 00:55:37.073
going from what I
would imagine has to be
00:55:37.073 --> 00:55:39.535
the darkest period in
this Commission's history,
00:55:39.535 --> 00:55:43.610
working, making remarkable progress
00:55:43.610 --> 00:55:45.413
with our partners in the legislature,
00:55:45.413 --> 00:55:49.740
the Governor to then work
with our stakeholder groups,
00:55:49.740 --> 00:55:54.740
ERCOT staff and leadership
to bring about even before
00:55:56.950 --> 00:56:00.190
today's actions, an outstanding amount
00:56:00.190 --> 00:56:02.830
of reform and improvement
and rely enhancement
00:56:02.830 --> 00:56:07.830
reliability at ERCOT in a
staggeringly short amount of time.
00:56:08.690 --> 00:56:12.940
So all I will offer is
many thanks to all of you
00:56:12.940 --> 00:56:14.080
and wish you all the best.
00:56:14.080 --> 00:56:15.073
To happy holidays.
00:56:16.500 --> 00:56:17.843
There being no further
business to come before
00:56:17.843 --> 00:56:20.680
the Public Utility Commission of Texas,
00:56:20.680 --> 00:56:22.433
this meeting is hereby adjourned.
00:56:22.433 --> 00:56:23.399
(gavel banging)