WEBVTT

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Good morning. This meeting of the public utility commission

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of texas will come to order to consider matters that

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have been duly posted with the secretary of State of

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texas for february 10th 2022 for the record my name

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is Peter Lake and with me today are well, Mcadams,

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laura Cobos and jimmy Gladfelter. Mr jones. Could you

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please walk us through the consent items on today's

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agenda? Good morning. Commissioners by individual ballot

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The following items were placed on your consent agenda

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1279, 10, 13, 16 and 17. And for the record commissioner

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Cobos has recused herself from item 10.

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Thank you sir. Is there a motion to approve the items

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just described by Mr?

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All in favor say, aye, I don't oppose. The motion passes

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as we move into the public comment. A portion of our

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agenda. I'd like to remind parties and stakeholders

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they should not approach the table unless oral argument

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has been granted or they have been invited by a commissioner

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at this time. We'll open for public comment. Oral comments

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related to a specific agenda item will be heard when

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that item has taken up. This segment of public comment

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is for general comments. Only speakers will be limited

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to three minutes each. Mr United. Do we have anyone

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from the public signed up to speak? No, sir. No one

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signed up on the list

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In that case. Public comment is now closed. We will

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not be taking up item 21 today.

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The first two items were consented. I don't have anything

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on number three which brings us to Item # four. That

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out for us. Mr Journeay (item:4) Item four is docket 51249.

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It's the petition of cook rose to amend lindell Rural

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Water Supply Corporation CCN. By expedited release

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The petitioner filed a motion to withdraw because a

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proposed order has already been filed in this docket

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The motion must be addressed by the commission.

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Thank you. Sir. Creek Rose is moving for the withdrawal

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of their own petition. Seems to make sense to me any

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other thoughts or comments I would think they'd know

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best that they know what to do Enough. Is there a motion

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to find good cause for the reasons discuss and to grant

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Cook Rose's motion for withdrawal

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all in favor say, aye, I don't oppose the motion passes

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Item no five, (item:5) Item five is Chris Chris Harps Appeal

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of the cost of obtaining service from Mount Zion Water

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Supply Corporation Before use the draft. Preliminary

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order filed on February two. Thank you sir. Preliminary

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order sets out the issues nicely. I do have a concern

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or an opportunity to add another question given the

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extraordinary cost for a single

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Family resident connection and an 8" line.

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That seems odd for both from the cost and the size

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of the infrastructure, so happy to hear thoughts but

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I'd like to add a question that is much more pointed

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than any of the questions currently in that order asking

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if those facilities that the 8" line and and the cost

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or being installed to plan for future growth or for

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the benefit of future customers should that cost be

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allocated not to just Mr hart but also those future

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customers and

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thoughts, comments. I support your effort. Yeah, that

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that sounds logical.

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Yes, I agree. I think that's a great question to ask

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from a cost, consumer cost standpoint on cost allocation

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I agree. Okay, I've got some language here read for

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your consideration if the facilities Add this two part

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of question 10 if the facilities necessary to provide

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service. Mr Harper capable benefiting other or future

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customers should Mr harper's cost to obtain service

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be reduced to reflect the benefits that are newer to

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all customers of the utility.

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That makes sense? Yes, I agree with it.

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Other thoughts, comments. Alright, motion is there

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a motion to approve the preliminary order as modified

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by the additional question I just laid out second all

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in favor say, aye, I don't oppose. The motion passes

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brings us to item number six mr

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(item:6) Item six is docket 52493. It's the complaint of

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Brad White against Arledge Ridge Water Supply Corporation

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A draft lottery order was filed on February two,

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similar situation here, the preliminary order covers

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most issues well, a similar question

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regarding Mr White and the cost of infrastructure needed

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for just one home or is it for the future development

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or expansion

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the language any thoughts or comments if I can propose

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some language still like it? Okay. Uh in this case

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add the question to the Prime Minister order that says

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if the facilities necessary to provide service to Mr

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White are capable of benefiting other or future customers

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Should mr White's cost to obtain service be reduced

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to reflect benefits that energy of all customers of

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the utility if that makes sense.

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We've got a motion and a second to approve the preliminary

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order has modified by this question. All in favor say

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aye, aye, I'm not opposed the motion passes. Number

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seven was consented. I don't have anything on number

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eight. Number 9 was consented

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which was 10 which brings us to (item:11) item number 11. Docket

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number 51912,

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item 11 is docked at 51912 is the application of a

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P tech system in their CCN for a transmission line

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and then the referrals and Patricio counties. A proposal

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for decision was filed on December 22 exceptions to

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50 and replies to those exceptions were filed. So a

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judge filed a letter on february 2nd with two corrections

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to the PFD and I have filed a memorandum with proposed

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changes to the PFD. In addition, the commission has

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granted oral argument in this matter.

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Thank you sir.

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As in all of these routing cases, it's always a challenging

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decision.

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I think we traditionally here or oral argument first

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if that works for you all well call up witnesses. Uh

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first on the list is David Brown uh and I assume the

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usual three minutes, sir. Yes, sir.

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Would you like me to station myself? Perfect, thank

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you. Thank

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Good morning. I'm David Brown and with the law firm

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of you'll brown blanket night here in Austin represent

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team Michael O'Connor and his family uh in there

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and we're also a member of what we call the aligned

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interveners who have sought to to establish a slightly

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different route, so I'm here to speak. Uh give you

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comments on two different analyses. The first one is

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what we call Z mod route Z mod. Uh If you've read

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all of the briefing and I'm sure you've been briefed

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on the briefing at least Z mod provides for uh some

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changes that are all voluntary on the part of landowners

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that that actually caused bifurcation of their properties

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as opposed to avoiding it. But that's all in the interest

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of protecting the aransas river valley. And if I could

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go through that real quickly, we've proposed modifications

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to, to links 21 C 21 A 54 52 and 50, which

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are all on Route Z. Uh It would in fact remove sharp

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terms, it would shorten lengths, It would remove all

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aransas river crossings uh and it would substantially

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reduce the burden and the destruction of, of the bottomland

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forests along the Francis river valley.

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Perhaps equally important. It removes almost all involuntary

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bifurcation of properties. Uh And it reduces that to

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about a half a mile. Uh one landowner, about half a

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mile now in the, in the PFD, the LJ noted that that

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there was

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what they called insufficient evidence of the cost

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savings. But but in fact, on cross examination, if

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you review the record, you'll find that we found that

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we were able to establish that The types of modifications

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we were talking about would would eliminate a number

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of very sharp turns, some more than 90°1 minute left

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Thank you. It would shorten some of the links, it would

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remove all Renzi's river crossings and it would eliminate

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the bifurcation. So All of those things together reduce

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the cost by an estimated $5 million. And we've put

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that actually $5.5 million which would make route Z

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as modified one of the least costly routes offered

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in the in the and the and the application ah jumping

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to route in versus route T, which is where most of

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the briefing most recently and in the exceptions is

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focused were supporters of route in. Uh And if you

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look at page three of our brief, you'll see we've mapped

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the two areas of bifurcation from those two. First

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of all, the bifurcation that's caused by route in is

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about 1/3 of that. That's caused by route T. And just

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to close out. Um

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If you analyze the factors, the best thing that the

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supporters of route we can say is it's almost as good

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as route in. They can't find anything where it's better

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than Route End and Route End provides far less bifurcation

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of property.

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So for the, the O'Connor family, we request that you

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adopt Z mod or barring that route in. Thank you. Next

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up is tom Forrester

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Mhm.

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Mhm.

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Good morning commissioners. Tom ford steer. I'm an

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attorney with the law firm of Winstead Pc. I have the

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privilege of representing Burke Holland Corporation

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that's a family owned corporation which owns the Thompson

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ranch, which is located on the far north end of the

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study area. Uh It has the Grissom station located on

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it and one of the occupational hazards of having a

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substation on your property is there's gonna be a lot

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of links that go into it. There are 11 alternate route

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links that eventually terminate in the Brisbane station

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That's about 20% of the total number of alternate route

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links for this project represents about 13.6 miles

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of different ways to get into the Grissom station.

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For that reason, my client worked very hard through

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this entire proceeding to try and figure out a way

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to provide a safe and reliable and cost efficient entrance

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into the Grissom station. We were part of route I.

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S. R. Which was presented to the commission and the

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commission in august declined to accept it and asked

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the parties go back to work harder to try and find

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a more cost efficient way to do it. And we all did

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we worked as hard as we could. And I didn't realize

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this or I guess I had forgotten until I went back and

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looked at the PFD. But we opposed route in from the

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very beginning, which is what the PFD has recommended

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route intakes. This line almost completely off of my

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client's property, but we we rejected it and declined

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to endorse it principally because it resulted in so

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much bifurcation of land for the same reason we opposed

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route T so vigorously. Um, I think you'll hear later

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this morning from the folks that are directly impacted

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by route in. And the one thing that my client shares

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in common with those folks is that nobody wants their

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land to be bifurcated or bisected. But there is a difference

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between the concept of not in my backyard and not on

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my property line. They don't want it in their backyard

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nor do they want it on their property line and it's

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gotta go somewhere and there's not gonna be a perfect

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solution. What I would tell all of you to please consider

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is route Z is 20%. Even without the modifications and

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the voluntary bifurcation and by sections that many

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of the landowners on route Z mod are offering it results

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in a 20% cost savings relative to route I. S. R. Which

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uh the commissioners declined to accept 20% is significant

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if you take into consideration the modifications maybe

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$5.5 million worth of additional savings. It's an even

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greater cost results in greater cost savings. So in

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conclusion, on behalf of bark collar corporation, we

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would ask you to please consider around Z or Z mod

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We stand by our opposition around T. And if you decline

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to adopt Z or Z mod, we would ask you two, Please

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adopt the recommendation of the PhD for route in. Thank

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you for your time. Thank you. Next next up is Patrick

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Resnick.

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Good morning Chair Fellow Commissioners. My name is

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Patrick Resnick. I'm an attorney with braun in Gresham

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and I've been representing landowners in these routing

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cases for a long time. And when we came to you some

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months ago, it's become known as the $20 million dollar

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increase. We understand why you rejected that because

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of the cost. We had unanimous support, both with all

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of the landowners who had intervened AP and P. C. Staff

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as Mr Forrester said, we went back to the drawing board

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All of the landowners ap and staff. I've never seen

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a case in all these years where people have worked

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so hard, including the utility company and staff to

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come up with a route from a community value standpoint

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to support stool dynamics and all the landowners and

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all the concerns that all the landowners have. I represent

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walter Wildlife Foundation and we oppose routes and

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and T and we support route Z along with almost well

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with all of the lined interveners and there's only

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one landowner. Mrs webcasting is here today. And Mr

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Carr who is impacted by that who is opposed to route

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Z. I would appreciate this this this commission to

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seriously consider the impact that the efforts that

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everybody has made and to deny those efforts and deny

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quite frankly round Z given the cost and all the criteria

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that Mr Brown and Mr Forrester has stated and that

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I also in the testimonies of Mr Taylor and Mr Armstrong

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and their numerous clients. They are not here today

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but they also support route. See

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it would be unfortunate and it would be disheartening

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and our balloons would be deflated about the efforts

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that we have really had its like why why go to the

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trouble anymore? Just pick a route and the utility

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company gets the recommended route and it's done with

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that concerns and the future impacts of this very very

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important case. World Wildlife Foundation Board has

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asked me to give a statement I pared it down. But the

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World Wildlife Foundation was set up in 1954 is a non

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profit wildlife education and research foundation.

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Mr Welder set it up for the purposes he described in

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his will and that's in the record. You've got about

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a minute. It's all in the briefing but his desire was

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to afford all the communities students the public,

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everybody an opportunity to experience what he experienced

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in nature with all of the development that is happening

00:17:48.250 --> 00:17:51.769
It's a rare opportunity to have this type of while

00:17:51.769 --> 00:17:54.349
it's private, it's open completely to the public and

00:17:54.349 --> 00:17:58.079
while the PFD does not recognize it as a park this

00:17:58.190 --> 00:18:01.880
world, Wildlife Foundation supports quite frankly more

00:18:01.880 --> 00:18:04.720
openness than even texas. Parks and Wildlife Department

00:18:04.730 --> 00:18:07.869
can support. It's an incredible value to the community

00:18:07.869 --> 00:18:11.279
It already has a 345 transmission line on the eastern

00:18:11.279 --> 00:18:14.519
ports that bisects the property. While this would be

00:18:14.519 --> 00:18:17.220
on the western edge, it's a second transmission line

00:18:17.230 --> 00:18:19.460
high vaulted 3 45 transmission line.

00:18:21.539 --> 00:18:25.390
I could go on. I'm passionate about my clients as everybody

00:18:25.390 --> 00:18:28.799
is but I really would appreciate serious consideration

00:18:28.809 --> 00:18:31.420
for route Z. And of course route seem odd even though

00:18:31.420 --> 00:18:33.720
neither one of those affect directly our clients, it

00:18:33.720 --> 00:18:37.740
affects every one of our neighbors and we all sit and

00:18:37.740 --> 00:18:40.359
have a coca cola together. Thank you appreciate it

00:18:42.339 --> 00:18:45.220
Mm hmm. Next up is Jr Turnbull

00:19:02.640 --> 00:19:05.279
Good morning. J. R. Turnbull. This is my wife blair

00:19:06.039 --> 00:19:09.720
Blood. Um I don't know really what to say right here

00:19:12.140 --> 00:19:16.259
The we're just trying to keep trying to create a

00:19:18.240 --> 00:19:21.210
home out in the country for our family to go to relax

00:19:21.210 --> 00:19:23.960
and we can have some privacy and teach them the importance

00:19:23.960 --> 00:19:26.779
of land and taking care of it. The values of it. We

00:19:26.779 --> 00:19:29.099
don't understand where food actually comes from and

00:19:29.099 --> 00:19:31.059
appreciate that stuff. That was the whole purpose of

00:19:31.059 --> 00:19:34.279
buying the place to create all this, What's across

00:19:34.279 --> 00:19:36.250
my fence is none of my business, but we had nothing

00:19:36.250 --> 00:19:40.359
to do in creating all this. I don't I would rather

00:19:40.359 --> 00:19:43.990
not have it on us, not to mention the we have

00:19:45.539 --> 00:19:47.930
these must go through the gates being left open and

00:19:47.930 --> 00:19:52.759
all that stuff or concerns also. Um and that part has

00:19:52.759 --> 00:19:53.769
already been kind of

00:19:55.730 --> 00:19:58.980
about how to say changed significantly since when we

00:19:58.980 --> 00:20:00.559
purchased the property. Um

00:20:02.539 --> 00:20:06.769
I don't know what else, sorry? Yeah, I mean, I would

00:20:06.769 --> 00:20:10.519
say he um as a career rancher, it's a daily basis where

00:20:10.519 --> 00:20:13.970
we're like living on the ranch um that we've submitted

00:20:13.970 --> 00:20:16.240
the house plans that were already set to break ground

00:20:16.240 --> 00:20:20.000
before the initial town hall meeting was meant to discuss

00:20:20.000 --> 00:20:23.369
this, and we're a family that's on the property on

00:20:23.369 --> 00:20:26.670
a daily basis, raising cattle raising Children. Um

00:20:27.039 --> 00:20:30.529
and all of those concerns that come with, there's already

00:20:30.529 --> 00:20:33.029
a transmission line on one side of our property. Um

00:20:33.029 --> 00:20:35.490
So we took that into account when trying to pick a

00:20:35.490 --> 00:20:38.559
spot to build our house and so this has halted the

00:20:38.559 --> 00:20:43.190
entire plan. So just I believe that um being a family

00:20:43.190 --> 00:20:45.789
that's on the ranch on a daily basis, working cattle

00:20:46.289 --> 00:20:50.750
to sustain, you know, untouched land is um just something

00:20:50.750 --> 00:20:53.170
we'd like you to consider and all the properties.

00:20:54.740 --> 00:20:55.549
Thank you all for being here.

00:20:57.839 --> 00:21:00.859
Mhm. Next up is jay car,

00:21:11.440 --> 00:21:12.759
Good morning Commissioners,

00:21:14.740 --> 00:21:19.109
My name is jake Are I have a ranch in the middle

00:21:19.109 --> 00:21:22.960
of this mess. It's been in my family since 1949.

00:21:25.539 --> 00:21:26.859
I live on the ranch.

00:21:32.410 --> 00:21:35.460
My wife and my father,

00:21:37.640 --> 00:21:40.940
we've run the ranch were there every day on a constant

00:21:40.940 --> 00:21:45.079
basis and I take care of my ranch. Like I would say

00:21:45.279 --> 00:21:50.170
your backyards, It's very unusual. The ranchers kept

00:21:50.180 --> 00:21:50.859
pristine.

00:21:52.740 --> 00:21:55.559
There's not another ranch around that looks like

00:21:57.140 --> 00:22:00.690
we spend all our time there. It's a rescue, there's

00:22:00.690 --> 00:22:04.670
no animal shot there. My wife rescues animals from

00:22:04.670 --> 00:22:08.299
all over and they come back and release them on the

00:22:08.299 --> 00:22:08.859
ranch.

00:22:10.940 --> 00:22:16.769
If I do not understand why burke Holland has allowed

00:22:16.769 --> 00:22:21.490
all this and why the line just can't be tea and stay

00:22:21.490 --> 00:22:22.160
on their property.

00:22:25.140 --> 00:22:29.210
There's a just no reason to go across a virgin piece

00:22:29.210 --> 00:22:31.609
of land. There's not an easement, there's not anything

00:22:31.609 --> 00:22:34.269
on my land. It's clean piece of land which is very

00:22:34.269 --> 00:22:34.859
rare today

00:22:36.539 --> 00:22:37.130
and

00:22:38.740 --> 00:22:41.630
It's going to end up being within probably 1000 ft

00:22:41.630 --> 00:22:42.460
of my homes.

00:22:46.039 --> 00:22:47.660
I just don't know what else to do.

00:22:51.339 --> 00:22:53.180
Please consider not taking in

00:22:59.200 --> 00:23:01.849
that will do that. Thank you for being here.

00:23:04.839 --> 00:23:06.670
Next up is Kathy web team.

00:23:17.339 --> 00:23:17.559
Mhm,

00:23:52.140 --> 00:23:52.470
mm hmm.

00:23:54.640 --> 00:23:54.890
Thanks

00:23:56.539 --> 00:23:56.769
first.

00:24:12.440 --> 00:24:12.670
Thank you.

00:24:17.839 --> 00:24:20.160
Good morning. Mr Chairman Commissioners Kathy Webb

00:24:20.160 --> 00:24:23.940
King here on behalf of the Turnbull family and the

00:24:23.940 --> 00:24:27.069
Carr family there in the northwest corner of this study

00:24:27.069 --> 00:24:32.960
area and and they have participated in earnest in this

00:24:32.960 --> 00:24:38.289
project. Early on file, participated in the open meetings

00:24:38.839 --> 00:24:44.089
um public meetings and then also filed extensive testimony

00:24:44.170 --> 00:24:46.599
to detail the impact of these various segments on their

00:24:46.599 --> 00:24:50.990
property and um I've told them trust in the process

00:24:50.990 --> 00:24:53.599
the process is there, you have evidence in the record

00:24:53.599 --> 00:24:56.420
to discuss you know, your impacts and we've worked

00:24:56.420 --> 00:24:58.990
in earnest throughout this process and appreciate all

00:24:58.990 --> 00:25:04.059
the parties that have all done so um with regard to

00:25:04.640 --> 00:25:08.119
the commission standards as you know, um The rules

00:25:08.130 --> 00:25:11.779
talk about land use, compatible land use moderating

00:25:11.779 --> 00:25:15.210
impacts where possible to landowners. In this case

00:25:15.220 --> 00:25:19.349
we have um the car in Turnbull properties are surrounded

00:25:19.839 --> 00:25:22.910
On three sides really buy property owned by Burke Hollow

00:25:22.910 --> 00:25:27.670
Corporation. That that property is 29,000 acres has

00:25:27.670 --> 00:25:30.779
been leased for wind development has a new Blackjack

00:25:30.789 --> 00:25:33.990
Wind farm that's um going in service as we speak I

00:25:33.990 --> 00:25:38.500
think and um is also leased for uranium mining in this

00:25:38.500 --> 00:25:44.490
area. The the record is clear. This the documents I

00:25:44.490 --> 00:25:46.720
handed you are just reference materials compilations

00:25:46.720 --> 00:25:49.289
of of evidence in the record. Just to give you the

00:25:49.289 --> 00:25:51.579
visuals. I'm a very visual person and sometimes that

00:25:51.579 --> 00:25:55.130
helps. Um So up in the northwest corner is the Grissom

00:25:55.130 --> 00:25:57.660
substation that was uh

00:25:59.240 --> 00:26:03.190
purchased. The property was was installed. It was all

00:26:03.190 --> 00:26:08.200
installed by agreement with Barkalow after Mr Carr

00:26:08.200 --> 00:26:11.460
and Mr Turnbull um took ownership of their properties

00:26:11.460 --> 00:26:13.880
And of course Mr Carr talked about he's had generations

00:26:13.880 --> 00:26:16.980
on the property but Mr Turnbull purchased the property

00:26:16.980 --> 00:26:20.269
more recently but there was no substation there when

00:26:20.269 --> 00:26:25.240
he did. You have one minute. So with regard to N. And

00:26:25.240 --> 00:26:28.730
T. We put extensive information in the records. The

00:26:28.730 --> 00:26:32.240
next map on there. The second map shows the specific

00:26:32.250 --> 00:26:35.140
bifurcation of these properties. And when people talk

00:26:35.140 --> 00:26:39.259
about bifurcation in this case bifurcation that goes

00:26:39.259 --> 00:26:41.680
right through the hearts of these properties separates

00:26:41.680 --> 00:26:44.630
them into two. Equal parts are roughly equal parts

00:26:44.630 --> 00:26:47.970
That is bifurcation and that is what this commission

00:26:47.970 --> 00:26:51.250
has always tried to avoid. I think it's something that

00:26:51.250 --> 00:26:55.450
ap considered in their filing in there um identification

00:26:55.450 --> 00:26:58.950
of route T. It's not a um this is not just requesting

00:26:58.950 --> 00:27:01.819
a simple rubber stamp. What what the utility filed

00:27:01.819 --> 00:27:04.940
there's extra evidence in the record of why that is

00:27:04.940 --> 00:27:07.410
a reasonable choice in the overall thing. We did sign

00:27:07.410 --> 00:27:11.880
on to the original um modified route but we understand

00:27:11.880 --> 00:27:15.630
your concerns about that. We do want to make sure that

00:27:15.640 --> 00:27:19.390
if um the next listing there is a listing of all the

00:27:19.390 --> 00:27:22.559
routes all the segments sorted by cost. The way this

00:27:22.559 --> 00:27:25.019
case came forward. The environmental assessment shows

00:27:25.029 --> 00:27:29.769
five routes more or less ranked very very close and

00:27:29.779 --> 00:27:34.160
um L. M. And N. N. N. T. In order of cost

00:27:34.740 --> 00:27:39.019
he is what ap is recommending and what what is we support

00:27:39.029 --> 00:27:44.380
L. And M. Are also less cost and imminently more reasonable

00:27:44.390 --> 00:27:49.799
from our perspective than uh and because specifically

00:27:49.799 --> 00:27:52.559
the impacts here as well as you know, all of the discussions

00:27:52.559 --> 00:27:56.269
that we've had um Mr Forestier talked about occupational

00:27:56.269 --> 00:28:00.259
hazard. Go ahead and wrap it up. Absolutely. And that

00:28:00.259 --> 00:28:03.700
occupational hazard is an occupational hazard of the

00:28:03.700 --> 00:28:07.750
property being used for electric generation. And it's

00:28:07.759 --> 00:28:10.029
appropriate that transmission lines are associated

00:28:10.029 --> 00:28:13.670
with that Mr car Mr Turnbull and the record make clear

00:28:13.789 --> 00:28:16.559
the difference here in those land uses. Thank you very

00:28:16.559 --> 00:28:17.759
much. Thank you.

00:28:24.039 --> 00:28:27.970
That's all sir. Oh no, I'm sorry. Yeah, you knew I

00:28:27.970 --> 00:28:32.730
couldn't, I had to mess it up once Kerry McGrath is

00:28:32.730 --> 00:28:34.269
our next one speaker.

00:28:36.140 --> 00:28:36.559
Mhm.

00:28:42.339 --> 00:28:45.250
Good morning. Commissioners Kerry McGrath for ap texas

00:28:45.839 --> 00:28:48.519
I want to just very briefly reiterate what we said

00:28:48.519 --> 00:28:51.240
in our written filings and asked the commission not

00:28:51.250 --> 00:28:55.400
to approve what's referred to as rounds mod because

00:28:55.400 --> 00:28:59.000
the the modifications that are discussed are not well

00:28:59.000 --> 00:29:01.759
defined in the record and we're concerned about being

00:29:01.759 --> 00:29:05.049
ordered to build a route that's not specifically defined

00:29:05.640 --> 00:29:10.339
Um The BOJ's address routes. Semen on page 16 of the

00:29:10.349 --> 00:29:14.450
PFD and say the newly proposed route has not been evaluated

00:29:14.450 --> 00:29:17.829
by ADP texas and the A. L. J. Has rejected the Aligned

00:29:17.839 --> 00:29:21.450
interveners, untimely emotion for additional discovery

00:29:21.460 --> 00:29:24.680
concerning the route. There is not sufficient evidence

00:29:25.079 --> 00:29:28.339
to support this hitherto unstudied route which was

00:29:28.339 --> 00:29:31.160
proposed via the filing of a stipulation after the

00:29:31.160 --> 00:29:34.329
close of the discovery period and shortly before the

00:29:34.329 --> 00:29:38.849
hearing, ap texas and other parties had no opportunity

00:29:38.859 --> 00:29:43.630
to vet and respond to that proposal. The doj is denied

00:29:43.630 --> 00:29:45.960
the Aligned interveners, late efforts to litigate these

00:29:45.960 --> 00:29:49.730
modifications, both before and during the hearing and

00:29:49.730 --> 00:29:53.250
many of the assertions regarding rounds mod and a line

00:29:53.259 --> 00:29:57.950
interveners briefing lack evidentiary support. So uh

00:29:57.960 --> 00:30:01.099
we are more than willing to work with the aligned interveners

00:30:01.099 --> 00:30:05.259
of the commission's inclined to approve route Z and

00:30:05.259 --> 00:30:08.180
work with them on minor modifications, but we asked

00:30:08.180 --> 00:30:10.940
the commission not to approve routes, seem odd because

00:30:10.940 --> 00:30:14.799
it's not well enough to find. Thank you. Thank you

00:30:14.799 --> 00:30:15.049
sir,

00:30:17.640 --> 00:30:22.480
can I ask you a question here? Um in in the record

00:30:23.509 --> 00:30:28.519
is Mhm How much of this line is needed for reliability

00:30:28.519 --> 00:30:32.559
in the region? How much is needed for the wind farm

00:30:32.569 --> 00:30:34.589
Obviously we know we have a steel facility and things

00:30:34.589 --> 00:30:36.940
that are going in but how much of it is reliability

00:30:36.940 --> 00:30:40.740
that's related to the wind farm versus the steel facility

00:30:40.740 --> 00:30:44.380
in the region, this line is part of a series of lines

00:30:44.390 --> 00:30:48.400
that are ERCOT approved to serve both the steel facility

00:30:48.400 --> 00:30:51.880
and additional industrial growth in that very north

00:30:51.880 --> 00:30:55.849
of Corpus Christi. So it is entirely a reliability

00:30:55.849 --> 00:30:59.609
related project. It's been deemed critical by ercot

00:30:59.660 --> 00:31:02.420
reliability and as part of the 18 Corpus Christi North

00:31:02.420 --> 00:31:05.019
Shore project which is intended to address just an

00:31:05.019 --> 00:31:07.490
expected load increase in the area. That's right. Both

00:31:07.490 --> 00:31:09.759
the steel mill and other facilities.

00:31:14.839 --> 00:31:20.259
Any other questions for this 1? No thanks, thank you

00:31:24.240 --> 00:31:28.349
these, these are never easy. Um and typically

00:31:30.079 --> 00:31:34.589
I know this is critical um Mhm. This is a critical

00:31:34.589 --> 00:31:39.559
line reliability, but anytime we hear oral arguments

00:31:40.039 --> 00:31:43.740
I usually by the best too take some time to process

00:31:43.740 --> 00:31:48.460
that digested. So I'm happy to hear anything thoughts

00:31:48.460 --> 00:31:53.019
comments, but I also want to make sure that the entire

00:31:53.019 --> 00:31:55.670
commission has time to digest what we've heard today

00:31:56.960 --> 00:32:02.980
Any any thoughts, comments? No, just looking at the

00:32:02.990 --> 00:32:07.390
the universe of options before us. Um Look if route

00:32:07.390 --> 00:32:12.839
t again, a piece preferred um is selected, looks like

00:32:12.849 --> 00:32:15.369
you know, we'll be hearing from the Edwards um and

00:32:15.369 --> 00:32:17.799
I'm sure the O'Connors will have another opinion about

00:32:17.809 --> 00:32:24.359
that if it's if it's in um I mean I understand bisecting

00:32:25.329 --> 00:32:28.559
two ranches to family owned ranches, so

00:32:30.240 --> 00:32:33.990
that's why it's a tough job. I'd be grateful for the

00:32:33.990 --> 00:32:37.420
time to digest. Um We're choosing between neighbors

00:32:37.420 --> 00:32:42.990
here. No, I would say similarly. I mean I love this

00:32:42.990 --> 00:32:46.029
area of the state. Um I've hunted down there for for

00:32:46.029 --> 00:32:51.190
many, many years and um I think that and have developed

00:32:51.190 --> 00:32:53.440
wind farms, you know, been with companies that have

00:32:53.440 --> 00:32:59.109
developed wind farms and um I know you know, they you

00:32:59.109 --> 00:33:04.170
know, they have a visual impact but the land is still

00:33:05.140 --> 00:33:08.730
available for use but probably not in the eyes of the

00:33:08.730 --> 00:33:12.500
landholder in the exact exact the same way that one

00:33:12.500 --> 00:33:17.190
where that has a wind lease on it. So I kind of

00:33:17.640 --> 00:33:20.509
you know, I would like to look a little bit more at

00:33:20.509 --> 00:33:26.180
those lines that go across the wind lease um they seem

00:33:26.180 --> 00:33:30.799
fairly long, which might be a cost issue on the, on

00:33:30.799 --> 00:33:33.180
the north side of the route. On the south side of the

00:33:33.180 --> 00:33:36.809
route, it seems like the only um edge that that cross

00:33:36.809 --> 00:33:39.609
would be the welder wildlife area on that side. So

00:33:39.619 --> 00:33:42.180
I would like the time to keep looking at this and and

00:33:42.180 --> 00:33:45.980
see where um hopefully we can bring it up at the next

00:33:45.980 --> 00:33:49.089
open meeting. I think it's important that this line

00:33:49.099 --> 00:33:52.759
get completed and we give it the appropriate time to

00:33:52.759 --> 00:33:55.430
do so, but a little bit more time would be good for

00:33:55.430 --> 00:34:00.990
me. Thank you. I agree as well. Um you know, the proposed

00:34:00.990 --> 00:34:04.170
routes um that have been discussed today and that are

00:34:04.170 --> 00:34:07.769
in the cell PFD I think are all, you know in some

00:34:07.769 --> 00:34:10.659
respects, some of them are close calls and I think

00:34:10.670 --> 00:34:14.170
it would be a good idea to have more time to evaluate

00:34:14.630 --> 00:34:18.079
the routes as we are impacting property of of these

00:34:18.079 --> 00:34:20.210
landowners that are taking the time to come here and

00:34:20.210 --> 00:34:23.059
and others that would be potentially impacted by the

00:34:23.059 --> 00:34:26.349
transmission line. Um you know, the line is important

00:34:26.360 --> 00:34:29.269
as I stated earlier, it's been in critical for liability

00:34:29.269 --> 00:34:32.489
by ERCOT it's part of a broader package of transmission

00:34:32.489 --> 00:34:35.679
projects that are intended to meet expected load and

00:34:35.690 --> 00:34:39.440
and enhance reliability in the corpus Christi area

00:34:39.840 --> 00:34:43.460
and um with that respect I think you know as we set

00:34:43.460 --> 00:34:45.780
out to do the last open meeting we took out we took

00:34:45.780 --> 00:34:48.699
up this case is you know, we're we're trying to balance

00:34:48.699 --> 00:34:53.750
reliability and cost um and and I think it's important

00:34:53.750 --> 00:34:56.949
to take the time to ensure that we strike the right

00:34:56.949 --> 00:34:58.349
balance in selecting the route.

00:34:59.940 --> 00:35:03.559
Yeah, well we'll put all, none of these decisions are

00:35:03.559 --> 00:35:08.210
never easy but it's critical for reliability across

00:35:08.210 --> 00:35:13.170
our entire state. Let's table this item until the next

00:35:13.170 --> 00:35:18.670
open meeting. What's we'll be ready to make a decision

00:35:19.139 --> 00:35:22.800
next open meeting on this item given the criticality

00:35:22.800 --> 00:35:23.079
of it.

00:35:25.300 --> 00:35:29.860
Well I appreciate I appreciate all of the witnesses

00:35:29.860 --> 00:35:34.539
who spoke today for being here. Thank you for your

00:35:34.539 --> 00:35:37.159
time and your efforts that you put into this issue

00:35:41.739 --> 00:35:44.480
Item 11 is tabled until the next open meeting which

00:35:44.480 --> 00:35:48.650
brings us to item 12 mr Journeay could you lay this

00:35:48.650 --> 00:35:52.219
out for us? (item:12) Item 12 is docket  52074

00:35:52.219 --> 00:35:55.579
application of Southwestern Public service company

00:35:55.579 --> 00:36:00.750
for approval of a consultant fee writer A revised proposed

00:36:00.750 --> 00:36:04.099
order was filed on October 13 and I have a memorandum

00:36:04.099 --> 00:36:06.739
with proposed changes to the revised order.

00:36:09.230 --> 00:36:10.199
Thank you sir

00:36:12.610 --> 00:36:16.969
in general like the proposed order but the have some

00:36:16.969 --> 00:36:23.219
concerns about the carrying cost recovery fee as including

00:36:23.219 --> 00:36:27.659
an equity returns rather than just cost of debt, any

00:36:28.329 --> 00:36:34.320
after discussing I agree or any any comments on the

00:36:34.320 --> 00:36:38.170
case. I agree. I think there's a several issues. I

00:36:38.170 --> 00:36:42.849
think one is um the application is filed has a retroactive

00:36:42.849 --> 00:36:45.840
time period that will have to address in terms of um

00:36:45.849 --> 00:36:49.409
you know, potentially considering making the proposed

00:36:49.409 --> 00:36:52.760
order um are included revising the proposed order and

00:36:52.760 --> 00:36:55.380
include an effective date. Um That we use the date

00:36:55.380 --> 00:36:57.420
when the order is signed. That way we're not sort of

00:36:57.429 --> 00:36:59.730
using the back date because SPS didn't ask for interim

00:36:59.730 --> 00:37:03.820
rates as well. So Um I agree with you on the carrying

00:37:03.820 --> 00:37:06.389
charge interest rate. I think that's a very high interest

00:37:06.389 --> 00:37:13.019
rate of 7.13% And I think we have some options to use

00:37:13.030 --> 00:37:15.760
um you know commissioner approved interest rates for

00:37:15.769 --> 00:37:18.969
customer over building and under building. Um commissioner

00:37:18.969 --> 00:37:22.280
approved interest rates for deposits or or we could

00:37:22.280 --> 00:37:24.900
even use the cost of debt from the last um rape case

00:37:24.900 --> 00:37:27.670
That SPS filed, all of them would be substantially

00:37:27.679 --> 00:37:32.519
less than the 2% and 4% range. And um I also think

00:37:32.519 --> 00:37:35.760
that it's important to lay out that any over under

00:37:35.760 --> 00:37:40.239
recovery um should be reconciled and SPS is next um

00:37:40.250 --> 00:37:43.489
annual consulting fee writer case um as we want to

00:37:43.489 --> 00:37:48.610
ensure that um that money gets screwed up and in the

00:37:48.610 --> 00:37:52.400
next case. So I think there was a few issues in there

00:37:52.400 --> 00:37:55.650
and I guess three is I'm sort of seeing

00:37:57.170 --> 00:37:59.210
that would need to be addressed the effective date

00:37:59.269 --> 00:38:04.119
the carrying cost interest rate um and reconciliation

00:38:04.119 --> 00:38:06.510
of any under or over recovery and revising the date

00:38:06.510 --> 00:38:07.650
to address those three issues.

00:38:10.019 --> 00:38:13.369
Oh, I'm sorry the the under recovery or over recovery

00:38:13.920 --> 00:38:17.920
by the writer that we approved approved here today

00:38:18.719 --> 00:38:22.539
and addressing that any over recovery or under recovery

00:38:23.019 --> 00:38:26.789
um reconciling that in the company's next consulting

00:38:26.800 --> 00:38:28.969
the rape case next year. So they followed on an annual

00:38:28.969 --> 00:38:31.329
basis and just making sure the revised order has language

00:38:31.329 --> 00:38:34.940
in there that would address that issue. Gotcha.

00:38:36.960 --> 00:38:41.179
It's the same here. Mr Chairman. Um Look if nobody

00:38:41.190 --> 00:38:43.389
brought it up, I was going to bring it up way to

00:38:43.389 --> 00:38:46.179
cost the capital may be problematic for down the road

00:38:46.179 --> 00:38:49.840
as a presidential effect um as as we continue to review

00:38:49.840 --> 00:38:54.280
these cases and as their scale expands, I mean it's

00:38:54.289 --> 00:38:57.869
it's one of one thing to consider these small and I

00:38:57.869 --> 00:39:00.289
hate to apply de Minimus amounts but they're they're

00:39:00.289 --> 00:39:02.860
small right now but we need to get ahead of this. So

00:39:02.860 --> 00:39:05.849
if we're prepared to do that today, I would support

00:39:05.849 --> 00:39:07.840
that wholeheartedly. Okay,

00:39:09.780 --> 00:39:14.699
thoughts. I mean, I think it makes a lot of sense what

00:39:14.699 --> 00:39:16.900
both of, y'all said, especially given that this is

00:39:17.420 --> 00:39:20.449
it was essentially alone, not invested capital that

00:39:21.989 --> 00:39:23.590
receives a return on equity.

00:39:25.119 --> 00:39:30.079
So then also, I think your point about addressing this

00:39:30.079 --> 00:39:32.889
and said the president sooner rather than later is

00:39:32.889 --> 00:39:37.460
helpful for these companies to know what our expectations

00:39:37.460 --> 00:39:41.110
as a commission are and so they know that we can set

00:39:41.110 --> 00:39:44.289
that standard. So they're not today. And their investors

00:39:44.289 --> 00:39:47.139
are not surprised when the amounts are bigger,

00:39:51.619 --> 00:39:54.949
anybody have a motion. So with that

00:39:56.909 --> 00:39:59.980
we need to pick a rate. That's right. So we are going

00:39:59.980 --> 00:40:04.159
down to a weighted cost of debt. I just yes, I'd go

00:40:04.159 --> 00:40:08.090
with the cost of debt. This bs has cost of debt. Okay

00:40:08.090 --> 00:40:11.849
And my understanding. Okay. Right. And and my understanding

00:40:11.849 --> 00:40:14.690
based on uh commissions house feedback, is that the

00:40:14.690 --> 00:40:19.489
cost of that would be 4.34%. I think that's right in

00:40:19.489 --> 00:40:24.889
this case. Okay. 1.3 something with with the I guess

00:40:26.510 --> 00:40:28.750
I guess delegation for you to insert whatever it is

00:40:28.750 --> 00:40:31.519
from SPS last rate case in in the revised order, which

00:40:31.519 --> 00:40:34.579
I believe is 4.34. But if you go back and see it's

00:40:34.579 --> 00:40:37.320
a little bit different. Um I think that's what we're

00:40:37.809 --> 00:40:43.099
mainly approving. Set. Set the return at the on the

00:40:43.099 --> 00:40:46.980
carrying costs. That SPS is cost of debt from the last

00:40:46.980 --> 00:40:50.829
race there last rate case. Okay, So that's your

00:40:53.070 --> 00:40:55.630
I think that makes sense. I think that makes sense

00:40:55.639 --> 00:41:00.909
Um You know, 4.34%. I mean, we could go lower to 2.35

00:41:00.909 --> 00:41:05.550
or 2.21. Um I'm kind of open on it. But if you

00:41:05.559 --> 00:41:08.929
you know, there's agreement on 4.34. I'm fine with

00:41:08.929 --> 00:41:09.139
that.

00:41:10.829 --> 00:41:13.110
Yeah. Just as long as a consistent approach for me

00:41:13.119 --> 00:41:15.329
you know, as long as they can look back and All right

00:41:15.340 --> 00:41:19.980
this is what the universe is that. It makes sense logically

00:41:22.789 --> 00:41:26.480
It's a short term that. So we'll treat it consistently

00:41:26.659 --> 00:41:29.199
across the board. We're talking about rates right?

00:41:29.199 --> 00:41:31.199
We're not talking about consumer deposits over building

00:41:31.199 --> 00:41:34.949
or under building so we can tie it to a known figure

00:41:34.949 --> 00:41:38.090
from a prior rape case. That I think that makes its

00:41:38.090 --> 00:41:40.860
consistent with terms of rate making, you know policy

00:41:40.860 --> 00:41:44.750
I guess good point. And your intent is to apply that

00:41:44.750 --> 00:41:47.360
same rate going forward to the next reconciliation

00:41:47.360 --> 00:41:49.829
of any under or over recovery balance that's carried

00:41:50.909 --> 00:41:55.110
Yes. So language in the order and and this is potentially

00:41:55.119 --> 00:41:56.829
you know, something for y'all to consider. Would would

00:41:56.840 --> 00:42:00.289
be to the extent that the approved rates differ from

00:42:00.289 --> 00:42:04.380
the amounts already collected under SPS is 2020 consulting

00:42:04.380 --> 00:42:08.739
fee writer, if any SPS must reconcile any over or under

00:42:08.739 --> 00:42:11.650
recovery in next year's consulting fee writer application

00:42:11.960 --> 00:42:17.159
with interest on on over or under recovery calculated

00:42:17.159 --> 00:42:22.280
using ah the cost of that from SPS prior rape case

00:42:22.519 --> 00:42:25.010
The most recent rate case most recent rate case. Yes

00:42:26.099 --> 00:42:30.630
Okay, so I that language works for me to be added to

00:42:30.630 --> 00:42:32.760
the the border

00:42:35.329 --> 00:42:36.010
the

00:42:38.900 --> 00:42:42.010
we want to set the motion to include the effective

00:42:42.019 --> 00:42:44.320
date the date the order is signed, you mentioned, the

00:42:44.320 --> 00:42:48.119
timing is that I think that makes sense. Um given the

00:42:48.119 --> 00:42:50.489
fact that you know, the time period that they're referred

00:42:50.489 --> 00:42:53.269
to in. Their application is now expired. Um that was

00:42:53.269 --> 00:42:58.400
September one through 31 December 2021 SPS didn't include

00:42:58.409 --> 00:43:01.530
um a request for interim rates. So in order to just

00:43:01.530 --> 00:43:04.320
make it clean, just you know, make it effective from

00:43:05.880 --> 00:43:07.420
the date the order is signed by the commission.

00:43:09.000 --> 00:43:14.119
That makes sense to work for you. Okay. So we got him

00:43:15.800 --> 00:43:16.119
you know,

00:43:18.800 --> 00:43:21.460
building blocks together this motion to set the writers

00:43:21.769 --> 00:43:24.719
Yeah. No, no, that's what if somebody wants me to say

00:43:24.719 --> 00:43:28.019
it. I'm writing it out. Alright, but go ahead if you've

00:43:28.030 --> 00:43:31.300
got it. So move to adopt the proposed order as modified

00:43:31.300 --> 00:43:35.900
by amending the effective date to the date the order

00:43:35.900 --> 00:43:40.860
is signed. one um two

00:43:42.500 --> 00:43:49.690
tie the cost of debt to the last great case fair. And

00:43:49.690 --> 00:43:52.869
then third was the additional troops.

00:43:54.599 --> 00:43:58.019
Yeah, that's true of the paragraph she just read yes

00:43:59.019 --> 00:44:02.190
and I will say maybe tie instead of the cost of debt

00:44:02.190 --> 00:44:07.219
Maybe say tie the carrying cost associated with with

00:44:07.219 --> 00:44:11.800
the writer um to SPS has cost the debt from their most

00:44:11.800 --> 00:44:12.960
recent base rate case.

00:44:16.000 --> 00:44:20.409
And it's modified by my memorandum. Okay, So move to

00:44:20.420 --> 00:44:24.320
adopt as modified by commissions discussion on this

00:44:24.329 --> 00:44:28.219
case. Exactly. I love it. We got a motion second

00:44:29.889 --> 00:44:33.219
in a motion and a second all in favor say aye don't

00:44:33.219 --> 00:44:37.530
oppose the motion passes. Teamwork. The next item is

00:44:37.530 --> 00:44:39.590
consented 14 mr journey.

00:44:41.989 --> 00:44:47.309
(item:14) Ah 14 is docket 52314 is the application of

00:44:47.309 --> 00:44:51.400
TMP to reconcile their final amS cost. A proposed order

00:44:51.400 --> 00:44:55.550
is filed on october 19th. No exceptions or corrections

00:44:55.550 --> 00:44:56.510
were filed on that order.

00:44:58.590 --> 00:45:03.460
Thank you. Sir. Thoughts comments on this one. Mm hmm

00:45:04.590 --> 00:45:05.909
Yeah. So

00:45:08.690 --> 00:45:12.940
I I believe we need to exclude exclude expenses related

00:45:12.949 --> 00:45:19.909
to dock at 47472. Uh yeah, to um with the principle

00:45:19.909 --> 00:45:26.230
being that only those expenses tied to um break cases

00:45:26.239 --> 00:45:30.619
you know, are are allowable. So we need to remain consistent

00:45:30.949 --> 00:45:35.320
with a policy that you just can't lump in other proceedings

00:45:35.320 --> 00:45:40.510
that aren't rate cases to recover your costs. So that's

00:45:41.780 --> 00:45:44.019
that's 1st and 2nd issue for me

00:45:45.929 --> 00:45:51.469
Doc at force 742 not a rate making proceedings. So

00:45:51.469 --> 00:45:54.739
that's those expenses aren't recovered in this. Aren't

00:45:54.739 --> 00:45:55.889
able to recover in this proceeding.

00:45:57.789 --> 00:46:01.219
I agree. I am. I think we can approve the proposed

00:46:01.219 --> 00:46:05.480
order with modification to exclude All of those expenses

00:46:05.480 --> 00:46:09.070
all the great case expenses from back at number 4 74

00:46:09.070 --> 00:46:14.280
72. Mm hmm. Some of those great cases are duplicative

00:46:14.289 --> 00:46:16.639
or and definitely don't apply to a rate making proceedings

00:46:17.150 --> 00:46:21.730
And look this, this is just to dovetail and support

00:46:21.730 --> 00:46:23.599
us because I know people are gonna bang down our door

00:46:23.599 --> 00:46:27.210
about this. It's the law. I mean you can't apply uh

00:46:27.980 --> 00:46:30.590
expense recovery to something that's not a rape case

00:46:30.599 --> 00:46:34.619
So go change the law. You want to do that? We need

00:46:34.619 --> 00:46:38.710
to have a bright line. Um Bright line on this president

00:46:39.579 --> 00:46:43.829
I think it's important. And it's the law. As you say

00:46:43.869 --> 00:46:44.860
it's important.

00:46:46.840 --> 00:46:50.090
It's pretty straightforward. I'm on the bandwagon.

00:46:50.679 --> 00:46:52.690
Alright. Any other blood tracks?

00:46:55.679 --> 00:47:00.360
All right. So um get a motion on that. I would move

00:47:00.360 --> 00:47:03.369
to approve as modified to exclude expenses related

00:47:03.369 --> 00:47:06.860
to dock at 47472. All right. We have a 2nd 2nd. All

00:47:06.860 --> 00:47:10.710
in favor say, aye, aye. Don't oppose the motion passes

00:47:12.179 --> 00:47:18.889
Item 15 Mr Journeay (item:15) Item 15 is docket 52356 petition

00:47:18.900 --> 00:47:22.730
of sweat co for approval of a consultant fee writer

00:47:23.380 --> 00:47:27.000
A revised proposed orders filed on December 30 and

00:47:27.000 --> 00:47:29.599
no exceptions or corrections to the revised order were

00:47:29.599 --> 00:47:30.099
filed.

00:47:33.280 --> 00:47:37.300
It seems to be a similar problem here. Um

00:47:39.480 --> 00:47:42.340
I suspect we have similar thoughts about what's being

00:47:42.340 --> 00:47:42.909
used.

00:47:44.480 --> 00:47:48.210
How do we feel about using the same methodology methodology

00:47:48.210 --> 00:47:54.610
on the cost of death from the last great case. I agree

00:47:54.610 --> 00:47:57.190
we have to have a bright line clear precedent on that

00:47:57.190 --> 00:47:58.590
and I support using the casa DE

00:48:00.340 --> 00:48:01.440
the most recent base rate case

00:48:03.170 --> 00:48:09.869
ah thoughts on Mhm. The over under recovery that we

00:48:09.869 --> 00:48:12.980
had on the last one. We can start that language. Same

00:48:12.980 --> 00:48:15.570
language in there, correct?

00:48:17.269 --> 00:48:19.190
Ah Alright. So we

00:48:20.869 --> 00:48:24.559
work on a motion to approve approve the proposed order

00:48:24.559 --> 00:48:28.530
modified to set the carrying costs on fees to the cost

00:48:28.530 --> 00:48:30.929
of debt from approved by the commission on swept codes

00:48:30.929 --> 00:48:36.099
last most recent rape case. In addition to an ordering

00:48:36.099 --> 00:48:36.900
paragraph

00:48:38.769 --> 00:48:41.929
that to the extent the approved rates differ from amounts

00:48:41.929 --> 00:48:44.260
already collected under swept coast interim rates.

00:48:44.260 --> 00:48:46.989
Whitcomb must reconcile any over and under recovery

00:48:47.469 --> 00:48:51.019
in next year's consulting fee rider application with

00:48:51.019 --> 00:48:53.699
interest on over under recovery calculated using its

00:48:53.699 --> 00:48:58.519
cost of debt as a proven its most recently case methodology

00:48:58.519 --> 00:48:59.090
Looking forward.

00:49:00.969 --> 00:49:01.500
All right

00:49:04.469 --> 00:49:10.750
motion to do that. So I would move that seconded, we've

00:49:10.750 --> 00:49:16.199
got a motion and we got we got a preemptive I other

00:49:16.199 --> 00:49:21.460
three any all in favor say aye none opposed motion

00:49:21.460 --> 00:49:23.639
passes. You got everything you need. Yeah, so much

00:49:23.639 --> 00:49:25.900
for that high school teacher said don't use that so

00:49:25.900 --> 00:49:26.739
much.

00:49:29.969 --> 00:49:33.650
The next few items were consented which brings us to

00:49:33.659 --> 00:49:37.920
item number 18 mr Journeay (item:18) item 18 is docket 52929

00:49:37.920 --> 00:49:42.940
 uh notice of violation of OCI Alamo one For

00:49:42.940 --> 00:49:47.639
violations of commission rules. A draft preliminary

00:49:47.639 --> 00:49:49.489
order was followed on February three.

00:49:53.530 --> 00:49:57.769
Alright, this is related to violations preliminary

00:49:57.769 --> 00:50:01.019
order. It says to me any other officer comments.

00:50:03.559 --> 00:50:07.210
Okay, I was good with the preliminary orders. Um Obviously

00:50:07.210 --> 00:50:10.889
these are very important cases that will be um you

00:50:10.889 --> 00:50:13.530
know, thoroughly evaluating as part of our weatherization

00:50:13.530 --> 00:50:17.960
efforts and so um I'm good with with the preliminary

00:50:17.960 --> 00:50:20.360
order in this case right now. Yeah and and it's the

00:50:20.360 --> 00:50:23.980
same for me Uh I can't overemphasize how the importance

00:50:23.989 --> 00:50:28.539
of of these dockets um as we examine who did what and

00:50:28.539 --> 00:50:34.019
when what remediation action was taken and when um

00:50:34.179 --> 00:50:36.380
and trying to show a good faith effort that everybody's

00:50:36.380 --> 00:50:39.190
trying to comply. So I look forward to seeing the results

00:50:40.559 --> 00:50:41.070
from this.

00:50:42.590 --> 00:50:43.949
Certainly breaking new ground with these.

00:50:45.760 --> 00:50:48.940
Alright, is there a motion to approve the preliminary

00:50:48.940 --> 00:50:53.789
order? Still moved second? All in favor say, aye, I

00:50:53.840 --> 00:50:57.710
don't oppose the motion passes item number 19 please

00:50:57.710 --> 00:51:01.409
Mr Journeay (item:19) item 19 is docket 52931 it's a notice of

00:51:01.409 --> 00:51:05.250
violation of by texas. Big springs for violations of

00:51:05.250 --> 00:51:09.079
commission rules and ERCOT protocols related to the

00:51:10.159 --> 00:51:14.860
winter weather stuff. Drop culinary order was filed

00:51:14.860 --> 00:51:19.420
on February three related to that related to that stuff

00:51:19.429 --> 00:51:25.280
Yes sir, a similar issue. Any thoughts, comments. Mhm

00:51:25.760 --> 00:51:28.280
Same thoughts on this one. Very important. Look forward

00:51:28.280 --> 00:51:29.000
to seeing the results

00:51:31.559 --> 00:51:35.579
bingo. Alright, is there a motion to approve the preliminary

00:51:35.579 --> 00:51:40.139
order Second all in favor say, aye, aye, I'm not opposed

00:51:40.139 --> 00:51:44.420
the motion passes item number 20 please (item:20) Item twenty's

00:51:44.420 --> 00:51:48.389
project 21072 the go for natural gas capacity Commission

00:51:48.389 --> 00:51:51.190
staff filed amendment random with a proposed order

00:51:51.659 --> 00:51:54.179
That would grant exceptions to the requirements of

00:51:54.190 --> 00:51:57.940
25 1 72 regarding the annual report and publication

00:51:57.940 --> 00:51:58.769
and information.

00:52:01.150 --> 00:52:08.789
Thank you sir. This is annual process, thoughts, questions

00:52:08.920 --> 00:52:14.079
comments, man, I disagree with the logic behind computation

00:52:14.079 --> 00:52:16.559
excluding renewables on this thing. It totally defeats

00:52:16.559 --> 00:52:20.590
the legislative policy when they enacted it? I'm fully

00:52:20.590 --> 00:52:24.929
realized. I may be a lone ranger on this. Um, the world

00:52:24.929 --> 00:52:31.079
is changing and the the amount of dispatch hable versus

00:52:31.079 --> 00:52:33.889
intermittent has has really come into play in terms

00:52:33.889 --> 00:52:36.449
of the calculation or what we have to look at for resource

00:52:36.449 --> 00:52:40.869
adequacy coming into place and understand well said

00:52:40.880 --> 00:52:47.750
And um, so no, I mean, I understand where the rule

00:52:47.750 --> 00:52:51.690
was formulated under the thinking that it's all in

00:52:51.690 --> 00:52:55.980
how you read that one line of statute excluding renewables

00:52:56.550 --> 00:52:57.059
Ah

00:52:58.650 --> 00:53:01.929
anyway, I think you could bear some some digging into

00:53:01.929 --> 00:53:06.199
this, but I realized this needs to move forward. But

00:53:06.210 --> 00:53:10.440
um, I've, I've said my piece in the workshops and and

00:53:10.440 --> 00:53:16.369
other commission proceedings that the legislature intended

00:53:16.750 --> 00:53:21.570
that gas needs to be a dominant resource Adequacy tool

00:53:21.800 --> 00:53:25.829
and this was a, a mechanism that they built to ensure

00:53:25.829 --> 00:53:30.150
that. So if we don't count renewables in this equation

00:53:30.469 --> 00:53:37.670
then it cuts the policy. So that's my piece. Is this

00:53:38.349 --> 00:53:42.400
Well, but is this a rulemaking issue at the commission

00:53:42.400 --> 00:53:46.010
or a legislative issue and statutes? Well, it's, it

00:53:46.010 --> 00:53:49.699
could cut both ways. I I agree. But what else would

00:53:49.699 --> 00:53:52.449
you put it in there if you're going to anyway? I'm

00:53:52.449 --> 00:53:53.820
just trying to, I'm trying to get in the mind of a

00:53:53.820 --> 00:53:57.960
legislator and it is, it's You make an important point

00:53:57.960 --> 00:54:01.699
that the legislator starting January 1, 2000 different

00:54:01.699 --> 00:54:02.969
world a different world.

00:54:05.440 --> 00:54:11.710
Yeah, so your point is well taken. Is this a rulemaking

00:54:11.710 --> 00:54:14.280
or is this a source of clarification? The legislature

00:54:14.280 --> 00:54:16.539
I think it would be a great opportunity for the legislature

00:54:16.539 --> 00:54:20.599
to discuss it. Um and I will be deferential to uh to

00:54:20.599 --> 00:54:23.869
the will of this commission um in moving forward with

00:54:23.869 --> 00:54:28.639
the rule and affirming it. But clarity would be great

00:54:28.639 --> 00:54:31.050
for all of us other thoughts.

00:54:33.639 --> 00:54:39.050
I got another alleged wreck to work on. Oh great, okay

00:54:41.039 --> 00:54:45.150
all right. We do need to approve the proposed order

00:54:45.150 --> 00:54:48.059
We have a motion to do that.

00:54:49.780 --> 00:54:53.349
Is there a motion to approve the proposed order? Second

00:54:53.590 --> 00:54:54.719
all in favor say aye,

00:54:57.340 --> 00:55:01.219
unopposed. Abstaining Alex. Can I abstain. Can I abstain

00:55:01.219 --> 00:55:04.760
Stephen if that's your wish sir. I'd love to abstain

00:55:04.760 --> 00:55:08.099
on this one. You can't get a night out of you. Sure

00:55:10.530 --> 00:55:13.389
that's not an abstention sir. No, it isn't taking a

00:55:13.389 --> 00:55:15.159
position. I disagree with you

00:55:20.239 --> 00:55:22.559
in between two worlds. Here. Trying to politic and

00:55:22.559 --> 00:55:25.510
diplomatic. The will. The commission is determined

00:55:25.510 --> 00:55:26.679
by three sir. That's true.

00:55:28.539 --> 00:55:35.559
We have three eyes and one Nay motion motion passes

00:55:39.039 --> 00:55:43.789
well done sir. I don't have anything on items. 21 through

00:55:43.789 --> 00:55:49.230
25 which brings us to item Um just real quick. I wanted

00:55:49.230 --> 00:55:53.889
to touch base on 24 um on our most recent filing just

00:55:53.889 --> 00:55:58.159
briefly. (item:24) Um so um thank you for calling for your filing

00:55:58.159 --> 00:56:01.230
on the backstop reliability service. Um there are just

00:56:01.230 --> 00:56:03.449
a couple of points, there are you know thoughts I wanted

00:56:03.449 --> 00:56:06.949
to share and I know we're in the process of um hire

00:56:06.949 --> 00:56:09.389
an independent consultant and we'll be looking at a

00:56:09.389 --> 00:56:13.610
lot of issues uh more thoroughly as we look to to build

00:56:13.610 --> 00:56:17.349
the backstop um and and I understand um you know ERCOT

00:56:17.349 --> 00:56:21.000
made recommendations to ensure that we have an efficient

00:56:21.010 --> 00:56:24.400
implementation or or at least provide recommendations

00:56:24.400 --> 00:56:26.889
on how we can most efficiently implement a backstop

00:56:26.889 --> 00:56:31.610
reliability service. Um so in that as I look at ERCOT

00:56:31.619 --> 00:56:34.550
filing and and thank you for that um that is important

00:56:34.550 --> 00:56:37.349
to know what would be most efficient, I really want

00:56:37.349 --> 00:56:40.760
to ensure that we leave um cost allocation on a lower

00:56:40.760 --> 00:56:45.849
ratio share basis um tied to coincidence at peak load

00:56:45.849 --> 00:56:48.619
on the table that that was a very important design

00:56:48.619 --> 00:56:53.070
feature of the memo I put out and and it was ultimately

00:56:53.219 --> 00:56:55.820
became part of the chairman's memo and then into the

00:56:55.820 --> 00:57:00.170
blueprint um that that piece of cost allocation is

00:57:00.170 --> 00:57:02.719
really important. I recognize that might complicate

00:57:02.730 --> 00:57:05.360
settlement and everything but I want to just make sure

00:57:05.360 --> 00:57:09.559
that um that remains on the table, that is a piece

00:57:09.559 --> 00:57:12.840
a central piece of the backstop in that it would um

00:57:13.329 --> 00:57:15.849
provide an incentive for demand response

00:57:17.380 --> 00:57:21.239
in with that service. The other um thought that I wanted

00:57:21.239 --> 00:57:24.829
to share or at least encourage your ERCOT and others

00:57:24.829 --> 00:57:28.940
to explore is that in the recommendations for efficient

00:57:28.940 --> 00:57:31.309
implementation. ERCOT states that the deployment of

00:57:31.309 --> 00:57:36.710
BRS resources um could be used via scott and rug processes

00:57:36.719 --> 00:57:40.289
um as we enter into this new world of ERCOT reforms

00:57:40.289 --> 00:57:43.900
with firm fuel product and and now BRS um you know

00:57:43.900 --> 00:57:47.429
we're ERCOT is sort of using the rug process not only

00:57:47.429 --> 00:57:49.610
for reliability in general as they have throughout

00:57:49.610 --> 00:57:54.420
the summer and and into the winter, but rock is being

00:57:54.420 --> 00:58:00.840
used to um you know from an operational basis now um

00:58:00.849 --> 00:58:06.969
to um bring on, don't feel capable units with on site

00:58:06.969 --> 00:58:10.329
fuel oil storage and now ERCOT is recommending the

00:58:10.329 --> 00:58:15.300
rug process with BRS and I just want to make sure that

00:58:15.309 --> 00:58:19.239
as we um move forward with these ERCOT reforms especially

00:58:19.239 --> 00:58:24.090
firm fuel product um as we solidify that that we that

00:58:24.090 --> 00:58:28.389
ERCOT makes sure that there are no unintended consequences

00:58:28.400 --> 00:58:33.670
from the direction that the process is currently um

00:58:33.679 --> 00:58:37.960
headed in in the air ERCOT stakeholder process um and

00:58:37.960 --> 00:58:40.610
and would encourage your cut to work with the stakeholders

00:58:40.610 --> 00:58:44.119
to ensure that Any changes to the rug process in the

00:58:44.119 --> 00:58:48.820
future um you know, via NPR to 93, that's very clear

00:58:48.820 --> 00:58:51.619
cut but I just want to make sure that ercot opens up

00:58:51.619 --> 00:58:54.650
that hood and ensures that there's not any unintended

00:58:54.650 --> 00:58:58.019
consequences that will negate the ERCOT reforms and

00:58:58.030 --> 00:59:01.539
actions that we're seeking to take to en enhance reliability

00:59:01.539 --> 00:59:02.650
and resiliency in the future?

00:59:06.179 --> 00:59:08.760
That is all I have. Thank you. Is it is it fair

00:59:08.760 --> 00:59:18.829
to say be careful. That's okay. I agree What? All right

00:59:18.840 --> 00:59:21.400
thank you. Commissioner kovacs and other thoughts,

00:59:21.400 --> 00:59:22.110
comments on their own.

00:59:25.519 --> 00:59:30.190
That brings us to item 26. (item:26) Item 26 This project Class

00:59:30.190 --> 00:59:34.059
2934. Review rules adopted by the Independent Organization

00:59:34.719 --> 00:59:36.969
Commission. Staff out a memorandum with the proposed

00:59:36.969 --> 00:59:39.250
order that would approve rules approved by the Technical

00:59:39.250 --> 00:59:42.389
Advisory Committee on January 31 and the associated

00:59:42.389 --> 00:59:43.650
ERCOT impact statement.

00:59:46.119 --> 00:59:50.489
Thank you sir. A couple of rules seemed pretty straightforward

00:59:50.489 --> 00:59:54.349
to me but happened here comments questions, thoughts

00:59:55.219 --> 00:59:59.969
based on my review of the guide revisions, I I'm comfortable

00:59:59.969 --> 01:00:04.840
with them and um would be in favor of approving. Same

01:00:04.840 --> 01:00:07.030
here. I I know that we're working through all of our

01:00:07.039 --> 01:00:12.590
processes and in terms of how we we view these moving

01:00:12.590 --> 01:00:18.110
through uh both the subcommittee uh level of review

01:00:18.110 --> 01:00:21.670
at ERCOT and then tack and then finally board approval

01:00:21.670 --> 01:00:25.849
and then our subsequent ratification. Um we're gonna

01:00:25.849 --> 01:00:30.199
get there. Um and all of these were unanimous. Um it

01:00:30.199 --> 01:00:32.610
showed a good collaboration from all stakeholders to

01:00:32.610 --> 01:00:37.820
get these through. So I support I would tend to agree

01:00:37.829 --> 01:00:42.210
with Commissioner Mcadams process questions. Um I don't

01:00:42.210 --> 01:00:43.829
want to feel like we're rubber stamping things at the

01:00:43.829 --> 01:00:46.059
very end of the process. I want to be able to have

01:00:46.070 --> 01:00:48.460
some time to be able to understand the pros and the

01:00:48.460 --> 01:00:50.940
cons of each one rather than get something filed the

01:00:50.940 --> 01:00:53.500
day before we have to vote on it and uh look forward

01:00:53.500 --> 01:00:55.760
to, you know, working with staff to figure out how

01:00:55.760 --> 01:00:59.510
we improve the entire Change in this dynamic as we

01:00:59.510 --> 01:01:04.530
go forward 100% agree and we're in a period of transition

01:01:04.829 --> 01:01:06.920
and that will be, I think that is something I know

01:01:06.920 --> 01:01:12.960
the new archive board has made a priority oh, to change

01:01:12.960 --> 01:01:16.630
and improve the process of these kind of changes, this

01:01:16.630 --> 01:01:22.940
doesn't happen overnight, but I think yes, your point

01:01:23.019 --> 01:01:28.150
that sending something down to come back and last minute

01:01:28.269 --> 01:01:32.440
is not not a ideal efficient streamlined process

01:01:34.610 --> 01:01:38.739
and what get there working with the new ERCOT board

01:01:39.710 --> 01:01:44.639
Oh, but take a little time to sort it out. Great, I

01:01:44.650 --> 01:01:48.599
agree, yes, Alright, is there a motion to approve the

01:01:48.599 --> 01:01:49.329
proposed order

01:01:51.210 --> 01:01:57.639
all in favor? Say aye not opposed motion passes, I

01:01:57.650 --> 01:02:02.409
think we have anything on 27 through 29 which brings

01:02:02.409 --> 01:02:08.050
us to (item:30) item 30, ask mr Woodfin to come up to discuss

01:02:08.219 --> 01:02:12.579
last week's storm, the extreme winter weather event

01:02:12.590 --> 01:02:15.929
and ERCOT operations,

01:02:18.099 --> 01:02:23.159
response and performance dan Woodfin with ERCOT So

01:02:23.170 --> 01:02:27.639
um last week, ERCOT started using official notifications

01:02:27.639 --> 01:02:30.500
of the coming winter winter storm on thursday january

01:02:30.500 --> 01:02:32.719
27th, so about a week ahead of time. We started warning

01:02:32.719 --> 01:02:35.630
folks, this was coming issued an operating condition

01:02:35.630 --> 01:02:39.579
knows at that time um the various global weather models

01:02:39.579 --> 01:02:42.869
were still varying at that point um and continue to

01:02:42.869 --> 01:02:45.530
vary all the way through the event into the event on

01:02:45.530 --> 01:02:48.719
how deep the cold, how cold the temperatures were and

01:02:48.730 --> 01:02:52.369
how much exactly precipitation, we were gonna get precipitation

01:02:52.369 --> 01:02:55.630
part lined up at the end, but the depth of the cold

01:02:55.630 --> 01:02:58.809
weather was, was still varying even as the storm was

01:02:58.809 --> 01:03:03.280
upon us. Um, ERCOT continually prepared for load levels

01:03:03.280 --> 01:03:05.380
that were based on the coldest of these global weather

01:03:05.380 --> 01:03:10.280
model forecasts um, and the most icing impacts on wind

01:03:10.280 --> 01:03:12.300
generation. So we, that was what we were preparing

01:03:12.300 --> 01:03:15.420
for load wound up being within the level we've projected

01:03:15.420 --> 01:03:19.389
with a peak demand on thursday evening of 67.9 gigawatts

01:03:19.739 --> 01:03:23.130
and 68.9 gigawatts on the morning of friday february

01:03:23.139 --> 01:03:26.460
4th, the wind turbine blade icing was significantly

01:03:26.460 --> 01:03:29.869
less than the worst case that we had planned for At

01:03:29.869 --> 01:03:32.829
the highest. We saw about 6.6 gigawatts of installed

01:03:32.829 --> 01:03:35.250
capacity from the wind generation that was out due

01:03:35.250 --> 01:03:39.230
to icing. Um, in spite of that icing in some areas

01:03:39.239 --> 01:03:41.630
Uh, the actual wind production across the system was

01:03:41.630 --> 01:03:45.280
about 15 gigawatts for thursday evenings peak And about

01:03:45.289 --> 01:03:50.210
12 GW for Friday morning speak the thermal generation

01:03:50.219 --> 01:03:53.960
uh, availability was good during the storm with very

01:03:53.960 --> 01:03:56.550
few generation outages that could even possibly be

01:03:56.550 --> 01:03:58.500
because of weather issues and we're in the process

01:03:58.500 --> 01:04:02.980
of investigating that handful. Um, we did see some

01:04:02.980 --> 01:04:05.780
generation that was unavailable due to gas restrictions

01:04:06.190 --> 01:04:09.300
and particularly in north texas and a few other units

01:04:09.300 --> 01:04:12.190
were outages or D rated as the, as the storm went on

01:04:12.199 --> 01:04:15.070
due to gas pipeline pressure issues, more operational

01:04:15.070 --> 01:04:19.050
issues. Um, online reserves remained very high during

01:04:19.050 --> 01:04:22.460
the event. Most of the online generation was self committed

01:04:22.460 --> 01:04:26.519
by, by ERCOT participants about two gigawatts of capacity

01:04:26.550 --> 01:04:28.639
that would have otherwise been unavailable because

01:04:28.639 --> 01:04:31.960
of the gas restrictions was committed by, ran on fuel

01:04:31.960 --> 01:04:34.920
oil through most of the event. Some of that was self

01:04:34.920 --> 01:04:38.309
committed for for some hours and some of it was rocked

01:04:38.320 --> 01:04:40.690
by ERCOT If the mark participants weren't going to

01:04:40.690 --> 01:04:44.570
commit that on their own, only two units were committed

01:04:44.579 --> 01:04:47.309
for a few hours for a reason other than fuel oil. So

01:04:47.309 --> 01:04:49.699
most of the reliability unit commitments we did were

01:04:49.699 --> 01:04:54.079
due to the fuel oil. Um, with the exception of a few

01:04:54.079 --> 01:04:56.809
intervals on friday evening real time prices generally

01:04:56.809 --> 01:05:00.059
stayed low during the event. Obviously there was a

01:05:00.070 --> 01:05:03.090
lot of, a few areas where people lost power due to

01:05:03.090 --> 01:05:05.559
icing of local distribution lines and that kind of

01:05:05.559 --> 01:05:08.960
thing. But overall there were no significant reliability

01:05:08.960 --> 01:05:11.159
problems for the grid as a whole as a result of this

01:05:11.159 --> 01:05:13.460
winter weather. So happy to answer any questions you

01:05:13.460 --> 01:05:19.480
may have. Thank you dan questions, comments. Just a

01:05:19.480 --> 01:05:23.619
comment. Um, dan, I thought operationally. Um, you

01:05:23.619 --> 01:05:28.940
did what you were supposed to and thanks. So I think

01:05:28.940 --> 01:05:33.119
the system worked in concert and I mean all systems

01:05:33.130 --> 01:05:37.800
on on this occasion gas ERCOT we were all talking um

01:05:38.250 --> 01:05:43.059
to a great degree As we as we move forward um I

01:05:43.059 --> 01:05:44.820
wanted to highlight for the commission there was something

01:05:44.820 --> 01:05:48.199
in our clips on February two. It was from the oil and

01:05:48.199 --> 01:05:52.369
gas magazine. It was a editorial uh put forward by

01:05:52.369 --> 01:05:56.099
heart energy. It identified something that you may

01:05:56.099 --> 01:05:59.719
have seen during the event and maybe lives with encore

01:05:59.730 --> 01:06:04.699
in their Permian system. Um They described a migration

01:06:04.710 --> 01:06:08.460
from natural gas fired gathering pipeline compressor

01:06:08.460 --> 01:06:10.949
stations. Okay so those compressor stations that move

01:06:10.949 --> 01:06:14.130
molecules through the gathering system at the wellhead

01:06:14.139 --> 01:06:17.800
to primary transmission lines that move across state

01:06:18.280 --> 01:06:21.030
Um they described the phenomenon of conversion or at

01:06:21.030 --> 01:06:23.719
least I'm sorry as they were building out those gathering

01:06:23.719 --> 01:06:29.409
lines from 2018 to now, utilization of electric compressor

01:06:29.409 --> 01:06:32.750
stations rather than natural gas fired compressor stations

01:06:33.070 --> 01:06:35.789
to cope with environmental regulations which obviously

01:06:35.800 --> 01:06:38.969
that's a dc thing that transcends down to the state

01:06:38.969 --> 01:06:43.679
level but it's it was an excellent piece for us to

01:06:43.679 --> 01:06:47.829
note a business trend that is affecting or could potentially

01:06:47.829 --> 01:06:51.360
affect your operations and on course ability or https

01:06:51.360 --> 01:06:53.739
ability or T and M. P. S. Ability out in the Permian

01:06:53.869 --> 01:06:59.619
to normalize the the electric load um in tight conditions

01:06:59.619 --> 01:07:03.650
brought on by cold weather. So uh the the takeaway

01:07:03.650 --> 01:07:09.300
was Um flaring issues were a problem 2018 to now. Uh

01:07:09.309 --> 01:07:12.159
environmental regulations came in that forced oil and

01:07:12.159 --> 01:07:15.630
gas operators to cut those emissions thus they depended

01:07:15.630 --> 01:07:19.960
more heavily on electric technology. electric based

01:07:19.969 --> 01:07:23.920
technology and when um any type of even a localized

01:07:23.929 --> 01:07:27.110
outage might be experienced that affects those gathering

01:07:27.110 --> 01:07:30.949
systems because again it freezes, they go off and those

01:07:30.949 --> 01:07:34.889
molecules don't move and they freeze. So I think um

01:07:35.340 --> 01:07:38.769
everything that we have done is still uh allowing us

01:07:38.769 --> 01:07:43.110
to manage that system because Ercot as they noted,

01:07:43.119 --> 01:07:46.980
our encore as they noted, experienced a increase of

01:07:46.980 --> 01:07:51.929
critical facility designations from 130 Prior to our

01:07:51.929 --> 01:07:54.920
rural implementation to over 1100 out in the Permian

01:07:55.380 --> 01:07:58.159
that's probably a fair amount of those compressor stations

01:07:58.159 --> 01:08:01.360
that are now listed and accounted for on a megawatt

01:08:01.360 --> 01:08:06.059
basis for rotating outages. So um, I just want to point

01:08:06.059 --> 01:08:08.030
that out, this is just one more thing that you're having

01:08:08.030 --> 01:08:11.099
to manage through right now, but that as a part of

01:08:11.099 --> 01:08:15.579
our puc, ERCOT railroad commission's overhaul and will

01:08:15.579 --> 01:08:18.310
certainly be envisioned in the mapping process. This

01:08:18.310 --> 01:08:20.939
is something that's, it's coming to light now that

01:08:20.939 --> 01:08:24.199
we are building and have built a system that is resilient

01:08:24.439 --> 01:08:25.189
to cope with it.

01:08:26.869 --> 01:08:29.779
Yeah, very, very good point. And that's why the new

01:08:29.779 --> 01:08:32.439
rule as of November 30 in conjunction with the railroad

01:08:32.439 --> 01:08:35.289
commission was so important in identifying that

01:08:37.069 --> 01:08:39.579
critical infrastructure and we're seeing the benefits

01:08:39.579 --> 01:08:43.420
of that, that's a rule making that happened in three

01:08:43.420 --> 01:08:46.979
months ago and we've seen the fruits was that article

01:08:46.979 --> 01:08:49.600
in our clips. It was and I just thought it was so

01:08:49.600 --> 01:08:54.380
profound because we never saw the degree of gas curtail

01:08:54.390 --> 01:08:56.829
or at least I don't remember it at the legislative

01:08:56.829 --> 01:09:00.659
level hearing about this prior to two now, but it's

01:09:00.659 --> 01:09:02.949
because of the build out of that infrastructure that

01:09:02.949 --> 01:09:05.670
was experienced because of natural gas pipeline constraints

01:09:05.670 --> 01:09:07.840
trying to get that crude and gas out of the Permian

01:09:08.369 --> 01:09:11.210
and to build out those gathering lines so quickly to

01:09:11.210 --> 01:09:14.310
get that crude and gas out of the Permian and they

01:09:14.310 --> 01:09:16.319
were utilizing a different technology than they had

01:09:16.319 --> 01:09:19.380
in the past that is dependent on our system. And so

01:09:19.380 --> 01:09:21.930
our identification of that system and maintaining that

01:09:21.930 --> 01:09:25.319
system is incredibly important now and that's why we

01:09:25.319 --> 01:09:30.939
experience these this phenomenon of gas concerns um

01:09:31.119 --> 01:09:36.409
now rather than in the past very insightful um Commissioner

01:09:36.409 --> 01:09:38.649
Mcadams, do you think that there's any opportunities

01:09:38.649 --> 01:09:41.430
to work from an environmental standpoint with TC Q

01:09:41.430 --> 01:09:45.819
On on this issue? Um with respect to gas compressors

01:09:45.819 --> 01:09:48.369
versus electric compressors and any additional resiliency

01:09:48.369 --> 01:09:52.500
we can gain by, I think as they as they move forward

01:09:52.500 --> 01:09:55.229
with their their rules and regulations, it just behooves

01:09:55.239 --> 01:09:58.500
all of us railroad puc, which we're doing through through

01:09:58.500 --> 01:10:02.619
turk and and the other organizations created by the

01:10:02.619 --> 01:10:06.000
reforms from the legislature. Um I think we all need

01:10:06.000 --> 01:10:09.270
to collaborate about, okay, when, when you make a move

01:10:09.279 --> 01:10:12.289
what are the unintended consequences within our regular

01:10:12.300 --> 01:10:16.550
regulatory ecosystems that we need to account for great

01:10:16.550 --> 01:10:22.060
point, very insightful information. Um I had a couple

01:10:22.060 --> 01:10:24.960
of, I guess, questions or comments to dan. First of

01:10:24.960 --> 01:10:27.500
all, thank you very much for for your hard work from

01:10:27.500 --> 01:10:30.470
an operational standpoint. I mean, I think it's just

01:10:31.060 --> 01:10:35.640
resound that ERCOT did a great job in doing their job

01:10:35.649 --> 01:10:39.539
last week. And um, all of the actions we've been taking

01:10:39.550 --> 01:10:44.890
up until then with the commission and ERCOT um, I had

01:10:44.890 --> 01:10:47.939
an opportunity to show their stripes right last week

01:10:47.939 --> 01:10:51.949
in terms of weatherization, bringing reserves on online

01:10:51.949 --> 01:10:55.380
earlier through uh enhanced org. C that was effective

01:10:55.380 --> 01:10:58.760
january 1st critical load designation as the chairman

01:10:58.760 --> 01:11:02.159
and commissioner Mcadams have noted, um, you know,

01:11:02.170 --> 01:11:06.100
sending signals to our firm fuel discussions that we

01:11:06.100 --> 01:11:08.229
are going to have a firm fuel product in place that

01:11:08.229 --> 01:11:12.340
led to business decisions for generators to have dual

01:11:12.340 --> 01:11:15.310
fuel capable on site fuel oil storage. All of all of

01:11:15.310 --> 01:11:17.899
those discussions and actions we've taken culminated

01:11:17.899 --> 01:11:21.960
into very um successful operational actions for ERCOT

01:11:21.960 --> 01:11:24.880
last week. And I come into you and, and in your work

01:11:25.359 --> 01:11:29.000
um, I, I just have some questions that you may not

01:11:29.000 --> 01:11:31.600
have answers to today, but I would like to understand

01:11:31.600 --> 01:11:35.699
you know, I know there was, you know, ERCOT projections

01:11:35.699 --> 01:11:40.220
on peak demand and and ultimately what, what, what

01:11:40.220 --> 01:11:43.159
came out of peak demand was, was less. Um, I would

01:11:43.159 --> 01:11:46.319
like to understand if if there's um some aggregated

01:11:46.329 --> 01:11:50.819
price, responsive demand response information, um,

01:11:50.829 --> 01:11:53.539
ERCOT can provide us whether it's in the post action

01:11:53.550 --> 01:11:57.470
post in the report that or could be putting together

01:11:57.470 --> 01:12:00.350
on on last week's weather or maybe you have figures

01:12:00.350 --> 01:12:02.909
today. I know you can't break it down by different

01:12:02.909 --> 01:12:05.829
types of customers but I would like to understand that

01:12:05.850 --> 01:12:09.640
impact. I mean I can give you a preliminary answer

01:12:09.649 --> 01:12:13.710
um By and large the pricing impacts during this event

01:12:13.720 --> 01:12:18.510
weren't high enough to see really uh price responsive

01:12:18.510 --> 01:12:24.010
demand. And I have some data on on the prices but we

01:12:24.010 --> 01:12:28.890
do do a um to give you an absolute answer. What we

01:12:28.890 --> 01:12:33.229
do is we work with the retail electric providers to

01:12:33.229 --> 01:12:39.369
see what their customers did that report. We don't

01:12:39.380 --> 01:12:43.609
start getting that data until um I believe september

01:12:43.619 --> 01:12:48.229
and we published the report on an annual basis in the

01:12:48.229 --> 01:12:53.699
december time period. So that would lead to the kind

01:12:53.699 --> 01:12:57.659
of final annual report on price responsive demand.

01:12:58.050 --> 01:13:02.859
But if you looked at at the prices um the real time

01:13:02.859 --> 01:13:08.220
ERCOT never got above $95, that was the highest real

01:13:08.220 --> 01:13:15.479
time ERCOT price. And that price only lasted um for

01:13:15.489 --> 01:13:18.069
approximately um

01:13:20.350 --> 01:13:26.399
uh one hour. So if I'm trying to respond to real time

01:13:26.399 --> 01:13:31.869
prices there there wasn't a lot of incentive there

01:13:32.449 --> 01:13:36.920
Um We can talk some more about the drivers but by and

01:13:36.920 --> 01:13:40.979
large, I don't want to say prices weren't high but

01:13:40.979 --> 01:13:45.000
they weren't you know anywhere near the maximum that

01:13:45.010 --> 01:13:51.470
the h cap represents or anything along those lines

01:13:51.949 --> 01:13:57.260
So the day ahead cleared around $400 for that day.

01:13:57.649 --> 01:14:01.159
And the ancillary service prices kind of followed that

01:14:01.539 --> 01:14:05.949
But again that was only for a couple of hours at most

01:14:06.640 --> 01:14:10.720
Um so that's from a pricing story, there's not a lot

01:14:10.720 --> 01:14:15.409
of incentive for demand to respond. I did read lots

01:14:15.409 --> 01:14:20.720
of articles about folks voluntarily uh curtailing but

01:14:20.720 --> 01:14:24.659
that wouldn't necessarily be on price. The one last

01:14:24.659 --> 01:14:29.170
point I would like to share with you on that is while

01:14:29.180 --> 01:14:32.680
um system wide the prices weren't high, there were

01:14:32.680 --> 01:14:36.960
some high prices due to congestion. There were some

01:14:37.340 --> 01:14:42.350
Length time periods where the price was $3500 but that

01:14:42.350 --> 01:14:45.920
was at a resource node um and it was at a resource

01:14:45.920 --> 01:14:50.520
note that couldn't respond to price. Um however, if

01:14:50.600 --> 01:14:55.699
we had um for example controllable load resources on

01:14:55.699 --> 01:15:01.359
a nodal price rather than Zonal average price, there's

01:15:01.359 --> 01:15:04.619
a higher probability that that we would have seen more

01:15:04.619 --> 01:15:08.619
price responsive demand and that feature is in your

01:15:08.619 --> 01:15:14.949
phase one roadmap. Um so we are working through uh

01:15:14.960 --> 01:15:18.670
incorporating that but that is not in place as of today

01:15:19.640 --> 01:15:20.310
Thank you.

01:15:21.840 --> 01:15:24.319
I appreciate you pointing that out. Commissioner Cobos

01:15:24.319 --> 01:15:26.329
and one thing that our communications team did a great

01:15:26.329 --> 01:15:29.939
job of identifying was in advance of the storm around

01:15:29.939 --> 01:15:33.770
the state. We saw both co ops monies and independent

01:15:34.119 --> 01:15:38.449
retail electric providers engage with their customers

01:15:38.460 --> 01:15:42.159
And what that looks like in practice is the notices

01:15:42.159 --> 01:15:45.159
you get an email saying keep your bill low this month

01:15:45.170 --> 01:15:50.869
you know, use your smart thermostat engage in this

01:15:50.869 --> 01:15:54.029
program or that program. And that's even though we

01:15:54.029 --> 01:15:57.000
didn't see high prices, that's the ERCOT doing and

01:15:57.000 --> 01:15:59.970
the independent retail ERCOT doing what it's supposed

01:15:59.970 --> 01:16:03.159
to do. And that's what we, that's what we want to see

01:16:03.460 --> 01:16:07.710
We want those companies competing for customers by

01:16:07.710 --> 01:16:11.409
offering more capabilities, more resources, more rewards

01:16:11.409 --> 01:16:16.380
refunds, credits for utilizing demand response. And

01:16:16.380 --> 01:16:19.649
so it's, that's an excellent sign. We don't like to

01:16:19.649 --> 01:16:23.149
see events like that. But during extreme weather, events

01:16:23.149 --> 01:16:26.409
like that, it's excellent to see the competitive retail

01:16:26.409 --> 01:16:31.800
ERCOT healthy and competing in those initiatives and

01:16:31.800 --> 01:16:34.350
programs well. And as you point out Mr chairman, they

01:16:34.350 --> 01:16:36.100
were incentivized to, they were trying to keep those

01:16:36.100 --> 01:16:40.079
prices low because they were gonna have to pass those

01:16:40.079 --> 01:16:43.210
on, on their meter charges. So even though we didn't

01:16:43.210 --> 01:16:46.159
spike, we don't know, it might have been their monthly

01:16:46.159 --> 01:16:49.439
hedge may not have been for the low they need to serve

01:16:49.439 --> 01:16:51.430
in which they still need to conserve. They still don't

01:16:51.430 --> 01:16:54.909
want to have to go out and by additional megawatts

01:16:55.829 --> 01:16:58.750
So it's good to see that ecosystem

01:17:00.430 --> 01:17:04.039
acting as it should and, and responding in a healthy

01:17:04.039 --> 01:17:04.409
way

01:17:06.029 --> 01:17:09.899
questions comments for dan no, I guess I, since we're

01:17:09.899 --> 01:17:11.729
talking about the storm, I just want to say one thing

01:17:11.729 --> 01:17:15.199
and that is, I appreciate the efforts and the response

01:17:15.199 --> 01:17:18.550
that went into this, not only among, you know, folks

01:17:18.560 --> 01:17:20.729
here in Austin, but most importantly, the folks that

01:17:20.729 --> 01:17:22.750
actually get out there, the lineman, the crews that

01:17:22.750 --> 01:17:26.949
were actually um, working on these distribution lines

01:17:26.949 --> 01:17:29.250
that had been down that cut off power to our different

01:17:29.250 --> 01:17:31.750
regions. They don't deserve enough credit, we don't

01:17:31.750 --> 01:17:34.359
give them enough credit um, that they get out there

01:17:34.359 --> 01:17:37.149
during dangerous times and I didn't hear of any accidents

01:17:37.149 --> 01:17:39.880
which I think is great and hopefully every one of them

01:17:39.880 --> 01:17:43.220
comes home every day. And so that's a great point.

01:17:43.229 --> 01:17:47.069
Commissioner Mr Chairman. Just the amount of, of bucket

01:17:47.069 --> 01:17:50.289
trucks and lineman that were deployed on this thing

01:17:50.489 --> 01:17:54.199
Look as I said, if this was a military operation, everything

01:17:54.199 --> 01:17:57.829
was humming in concert. They had pre deployed assets

01:17:57.840 --> 01:18:00.640
Um, for our transmission and distribution companies

01:18:00.640 --> 01:18:04.899
are generators were teed up ready to go. Um, machines

01:18:04.899 --> 01:18:08.699
were weatherizing. Uh, matter of fact, the forced outage

01:18:08.699 --> 01:18:12.390
rate was incredibly low and, and sustained at a low

01:18:12.390 --> 01:18:16.609
level um, for a long time. So whether this is just

01:18:16.619 --> 01:18:22.020
PTSD from yuri or uh, people's fear of penalties or

01:18:22.020 --> 01:18:24.069
just everybody wanted to do the right thing because

01:18:24.069 --> 01:18:28.310
nobody wanted to be cold. Um, the system worked. Yeah

01:18:28.319 --> 01:18:30.420
these are real reforms enacted an incredibly short

01:18:30.420 --> 01:18:33.380
amount of time yielding dividends in an extreme weather

01:18:33.380 --> 01:18:33.649
event

01:18:35.920 --> 01:18:39.579
dan canon or cut entire ERCOT team. Thank you all.

01:18:39.579 --> 01:18:42.000
Not only for the excellent performance last week, but

01:18:42.000 --> 01:18:45.050
all the hard work over the last year that got us to

01:18:45.050 --> 01:18:48.039
the point where we can not only go through an extreme

01:18:48.039 --> 01:18:51.720
weather event like that that shuts down airports, highways

01:18:52.720 --> 01:18:58.010
But go through it with such robust reserve 86 85,000

01:18:58.010 --> 01:19:02.149
MW at the peak on friday morning That even if we had

01:19:02.149 --> 01:19:08.960
experienced the 76, megawatt peak that You, that would

01:19:08.960 --> 01:19:11.100
have been the peak load of Yuri, we still had another

01:19:11.100 --> 01:19:14.989
10,000 MW in cushion. Um, that's that's an extraordinary

01:19:14.989 --> 01:19:17.649
accomplishment in a very, very short amount of time

01:19:18.279 --> 01:19:21.590
So thank you all for all the hard work the puc team

01:19:21.600 --> 01:19:25.899
who's been digging deep to write these rules to get

01:19:25.899 --> 01:19:30.229
these policies and reforms initiated. I echo Commissioner

01:19:30.229 --> 01:19:33.439
Gladfelter his point about all the men and women sitting

01:19:33.439 --> 01:19:35.840
out in the cold even if there wasn't a problem yet

01:19:35.850 --> 01:19:39.920
just sitting out in the out in the cold days and nights

01:19:39.920 --> 01:19:43.939
waiting for a problem. A lot of folks at R. T. Dus

01:19:44.420 --> 01:19:46.590
went out to sit at substations that they were never

01:19:46.590 --> 01:19:49.840
needed thankfully, but they were there away from their

01:19:49.840 --> 01:19:52.970
families away from the warmth of the house, their houses

01:19:53.520 --> 01:19:57.670
Um, I would also like to thank TDM chief kid and their

01:19:57.670 --> 01:20:00.899
whole team for running the state operations center

01:20:01.229 --> 01:20:04.939
as smoothly and as efficiently as they always do. Um

01:20:05.569 --> 01:20:07.729
and especially our partners at the railroad commission

01:20:08.149 --> 01:20:12.180
T. C. Q relates to water issues and most importantly

01:20:12.180 --> 01:20:15.710
text the coordination, the new coordination that we've

01:20:15.710 --> 01:20:19.180
set up to have teammates from each of our agencies

01:20:19.180 --> 01:20:21.899
shoulder to shoulder in the state operations center

01:20:22.159 --> 01:20:25.800
during events like this showed its its benefits, textile

01:20:25.800 --> 01:20:28.689
was getting roads prioritizing roads that needed to

01:20:28.689 --> 01:20:32.380
get crews to local outages. The Railroad commission

01:20:32.500 --> 01:20:36.369
team was on hand incredibly responsive to the very

01:20:36.369 --> 01:20:40.130
few minor issues we had during that event. So all around

01:20:40.130 --> 01:20:42.829
an extraordinary effort to keep

01:20:44.510 --> 01:20:48.939
grid reliable people in texas warm in their homes and

01:20:48.939 --> 01:20:52.640
safe. Uh, and of course I appreciate the governor's

01:20:52.640 --> 01:20:55.989
leadership throughout the event. Um, he was in constant

01:20:55.989 --> 01:20:58.420
communication with the people of texas as were the

01:20:58.420 --> 01:21:03.130
agencies involved. So extraordinary. I hope extraordinary

01:21:04.109 --> 01:21:07.619
to see what all of these teams combined have been able

01:21:07.619 --> 01:21:08.119
to do

01:21:09.810 --> 01:21:12.119
to ensure reliability in such a short amount of time

01:21:12.609 --> 01:21:15.529
Thank you. Chairman, thank you Chairman for getting

01:21:15.529 --> 01:21:17.720
out there and serving as our face for the commission

01:21:17.720 --> 01:21:22.119
and at the at the sock throughout the weather um, event

01:21:22.130 --> 01:21:24.710
and um speaking on our behalf and all the hard work

01:21:24.710 --> 01:21:27.619
that we have been working on for the last several months

01:21:27.619 --> 01:21:30.300
in concert with ERCOT and other stakeholders. So thank

01:21:30.300 --> 01:21:32.229
you for your hard work during that week at the sock

01:21:33.189 --> 01:21:35.609
appreciate. And it's not just me at the stock, we've

01:21:35.609 --> 01:21:40.270
got a whole crew of people. Sean chuck nick Mackenzie

01:21:40.270 --> 01:21:44.159
at the soccer and there 24 7 sleeping under the desk

01:21:44.159 --> 01:21:49.250
kind of thing. Glad you weren't alone. Yeah. One more

01:21:49.260 --> 01:21:51.250
One more shot at Mr Chairman, if I could because I

01:21:51.250 --> 01:21:53.340
know this will probably make the local news stations

01:21:53.340 --> 01:21:55.920
all over the state, but we sincerely appreciate the

01:21:55.920 --> 01:21:59.069
participation and responsiveness of the consumers out

01:21:59.069 --> 01:22:02.010
there to um, well, we were all wondering if everybody

01:22:02.010 --> 01:22:05.159
would go home and jack up their heaters to 85 degrees

01:22:05.170 --> 01:22:09.760
um, and just try to make their house as warm as possible

01:22:09.760 --> 01:22:13.779
But uh, the consumer classes of all types seemed to

01:22:13.789 --> 01:22:16.640
do the right thing in cold weather, which is not overburden

01:22:16.640 --> 01:22:19.760
any particular system but just act responsibly. And

01:22:19.760 --> 01:22:22.640
it was incredible to watch in real time on the part

01:22:22.640 --> 01:22:25.390
of of us here at the commission in ERCOT in the control

01:22:25.390 --> 01:22:28.960
room. I'm sure so um, I I hope everybody

01:22:31.069 --> 01:22:33.069
and our industrial partners, thank you for everything

01:22:33.069 --> 01:22:36.409
you did. Alright, well put, thank you gentlemen,

01:22:39.000 --> 01:22:41.439
That concludes business on item 30, which takes us

01:22:41.439 --> 01:22:45.850
to item 31 (item:31) regarding state and federal legislation

01:22:45.850 --> 01:22:50.010
affecting electricity markets, etc, etc. As you all

01:22:50.010 --> 01:22:55.000
know, the federal government last year passed the Infrastructure

01:22:55.000 --> 01:22:59.449
investment and jobs Act, which means a lot of federal

01:22:59.449 --> 01:23:04.789
money out there, particularly related to I don't electricity

01:23:04.789 --> 01:23:09.289
and electric infrastructure and to make sure that texas

01:23:09.300 --> 01:23:14.229
is leading from the front on maximizing the state's

01:23:14.229 --> 01:23:17.800
ability to benefit from those federal dollars and to

01:23:17.810 --> 01:23:22.229
ensure we use every resource possible to the most benefit

01:23:22.239 --> 01:23:26.510
of our citizens. I've asked Commissioner Cobos too

01:23:28.000 --> 01:23:32.140
take on an initial review of possible applications

01:23:32.140 --> 01:23:36.130
for those funds and to make sure that over the next

01:23:36.289 --> 01:23:37.079
months

01:23:38.670 --> 01:23:42.199
and potentially years the state of texas gets the most

01:23:42.199 --> 01:23:46.220
benefit from those federal funds. Thank you. Chairman

01:23:46.220 --> 01:23:49.529
Lake, I happily accept that assignment and look forward

01:23:49.529 --> 01:23:51.760
to working with the utilities and other stakeholders

01:23:51.760 --> 01:23:54.930
that could stand to benefit from this funding is is

01:23:54.939 --> 01:23:57.369
chairman stated, there's billions of dollars out there

01:23:57.380 --> 01:24:00.520
for grid resiliency and reliability. And my goal is

01:24:00.520 --> 01:24:02.689
to try to work with the various stakeholders to try

01:24:02.689 --> 01:24:05.529
to maximize the amount of funds we can get for texas

01:24:05.529 --> 01:24:09.560
for these very important initiatives. Thank you. Mr

01:24:09.560 --> 01:24:12.800
Chairman. I might add that. I have mentioned this in

01:24:12.800 --> 01:24:14.659
other open meetings but I've had discussions with some

01:24:14.659 --> 01:24:18.619
of our national labs um to uh potentially help us with

01:24:18.619 --> 01:24:21.409
some modeling efforts. Um I've had those discussions

01:24:21.409 --> 01:24:24.270
with ERCOT as well uh as well as some of the universities

01:24:24.270 --> 01:24:27.579
around the state and uh trying to put together a little

01:24:27.579 --> 01:24:30.710
plan but some of this might or might not rely on federal

01:24:30.710 --> 01:24:34.119
funds but we will work with Commissioner Cobos and

01:24:34.130 --> 01:24:37.100
the entire Commission to make sure that strings attached

01:24:37.100 --> 01:24:42.000
are very very few and that uh we can create something

01:24:42.000 --> 01:24:44.630
that's great for the state to allow us to analyze our

01:24:44.630 --> 01:24:47.189
grid going forward very much appreciate that and I

01:24:47.189 --> 01:24:52.159
know, you know, I've been working on how to move those

01:24:52.170 --> 01:24:57.039
initiatives, your initiatives forward a lot of opportunity

01:24:57.810 --> 01:25:02.529
In fact, we've seen some of the work product in some

01:25:02.529 --> 01:25:05.550
segments of the industry related to modeling and there's

01:25:05.649 --> 01:25:11.529
room for improvement if you will. Ah All right, thank

01:25:11.529 --> 01:25:13.760
you all and thank you Mr Chavez.

01:25:15.890 --> 01:25:20.130
I don't have anything on item 32 or 33 which brings

01:25:20.130 --> 01:25:23.060
us to an update from our executive director on item

01:25:23.060 --> 01:25:28.979
34. (item:34) Thank you. Mr Chairman Commissioners, just to uh

01:25:28.989 --> 01:25:31.939
go along with our our kudos for everything that happened

01:25:31.939 --> 01:25:33.810
in State Operations Center. I wanted to let y'all know

01:25:33.810 --> 01:25:36.649
I received calls from multiple other state agencies

01:25:36.649 --> 01:25:39.250
and companies about how instrumental to our success

01:25:39.250 --> 01:25:42.600
at the sock sean hazard is and how he streamlines everything

01:25:42.600 --> 01:25:45.569
everyone knows that they can get the most updated and

01:25:45.579 --> 01:25:47.560
critical information from him. So I want to make sure

01:25:47.560 --> 01:25:51.100
to mention him as well because him is our Emergency

01:25:51.100 --> 01:25:53.170
Management Coordinator is is instrumental in all of

01:25:53.170 --> 01:25:54.920
our efforts at the State Operations Center.

01:25:56.890 --> 01:26:00.140
Um a couple of meetings ago I reported that we had

01:26:00.140 --> 01:26:03.100
hired a Chief Administrative Officer, much to my delight

01:26:03.100 --> 01:26:05.329
and someone that can focus on getting Commissioner

01:26:05.329 --> 01:26:08.050
Gladfelter his office built in a in a timely manner

01:26:08.050 --> 01:26:13.760
So Hayley is back there. So I just wanted to put a

01:26:13.770 --> 01:26:17.779
face with a name and um does the definition of timely

01:26:17.779 --> 01:26:22.180
only apply to starting that time. Now, I believe on

01:26:22.180 --> 01:26:24.670
that project timely is whatever Commissioner Gloat

01:26:24.670 --> 01:26:26.819
felt he feels. So we're probably starting from behind

01:26:26.819 --> 01:26:28.750
but I would hope that the clock would start over now

01:26:28.750 --> 01:26:31.140
that we have a different face to to you know really

01:26:31.140 --> 01:26:36.000
implement that um going forward so and patient. Yes

01:26:36.000 --> 01:26:38.920
sir and thank you for that. We appreciate it. Um and

01:26:38.920 --> 01:26:43.689
finally we have a turk spot to fill Laurie Simpson

01:26:43.699 --> 01:26:47.510
is leaving constellation, she fills our generator segment

01:26:47.510 --> 01:26:50.409
seat on turk so we'll be running that same process

01:26:50.409 --> 01:26:52.840
that we did last time where I'll be asking for applications

01:26:52.840 --> 01:26:55.850
and recommendations for someone in the generator segment

01:26:55.850 --> 01:26:58.069
to to fill that spot and I'll come by and talk with

01:26:58.069 --> 01:27:00.800
you all before I make a final decision, appreciate

01:27:00.800 --> 01:27:03.789
that. Thank you your questions. Your comments for thomas

01:27:06.279 --> 01:27:11.170
All right. That brings us to item 35 and 36 but by

01:27:11.170 --> 01:27:13.729
the way, it should be noted that you get a new office

01:27:13.729 --> 01:27:19.050
too. So don't blame this all true. Yeah. No, absolutely

01:27:19.050 --> 01:27:21.979
not. But I would not, I would not even try to put

01:27:21.979 --> 01:27:24.810
my needs in the same stratosphere as your needs to

01:27:24.810 --> 01:27:30.989
get your your work done sir. So yes. So I think that

01:27:30.989 --> 01:27:35.100
was Stephen but you couldn't tell because of the mask

01:27:36.880 --> 01:27:37.359
that

01:27:39.079 --> 01:27:40.789
one More. One more time.

01:27:43.779 --> 01:27:45.970
All right. We don't have any other business on item

01:27:45.970 --> 01:27:54.420
35 or 36. (item:37) So having oh yeah, I'm holding up um having

01:27:54.420 --> 01:27:56.670
convened in duly noticed. Open meeting the commission

01:27:56.670 --> 01:28:01.680
will now at 11:05AM on february 10th 2020 to

01:28:01.680 --> 01:28:04.670
hold a closed session pursuant to chapter 501, the

01:28:04.670 --> 01:28:08.899
texas government code section 551.71551 point 074 and

01:28:08.899 --> 01:28:14.390
551.76. We'll be back in a bit. Sure.

01:28:38.270 --> 01:28:42.039
Closed session is hereby concluded at 11:30 a.m. On

01:28:42.039 --> 01:28:44.890
february 10th 2022 the commission will resume its public

01:28:44.890 --> 01:28:47.329
meeting. No action will be taken by the commission

01:28:47.329 --> 01:28:49.859
regarding matters discussed in closed session. There

01:28:49.869 --> 01:28:51.729
being no further business before the commission is

01:28:51.729 --> 01:28:53.899
meeting, the Public Utility commission of texas is

01:28:53.899 --> 01:28:56.600
hereby adjourned.