WEBVTT 00:00:13.039 --> 00:00:15.269 Good morning. This meeting of the public utility commission 00:00:15.269 --> 00:00:17.160 of texas will come to order to consider matters that 00:00:17.160 --> 00:00:19.370 have been duly posted with the Secretary of State of 00:00:19.370 --> 00:00:22.649 texas from March 31st 2022 for the record. My name 00:00:22.649 --> 00:00:25.570 is Peter Lake with me today. Are will mcadams, Lori 00:00:25.570 --> 00:00:29.170 Cobos and jimmy Gladfelter. Mr Journeay. Could you please 00:00:29.170 --> 00:00:32.179 walk us through the consent items on today's agenda 00:00:32.189 --> 00:00:34.670 Good morning. Commissioners By individual ballots. 00:00:34.670 --> 00:00:37.490 Following items were placed on your consent agenda 00:00:37.500 --> 00:00:45.070 249, 10 through 15 17, 19 22 and 28. Is there a 00:00:45.070 --> 00:00:47.369 motion to approve the items just described by Mr? Your 00:00:47.369 --> 00:00:52.740 name? Is there a second all in favor say aye, not opposed 00:00:52.740 --> 00:00:57.469 the motion passes. We will not be taking up item 18 00:00:57.469 --> 00:01:02.670 today, which brings us to our formal agenda. Item. 00:01:02.670 --> 00:01:07.530 Number one is public comment. (item:1) I'd like to remind parties 00:01:07.540 --> 00:01:09.900 then stakeholders they will should not approach the 00:01:09.900 --> 00:01:12.099 table unless oral argument has been granted or they 00:01:12.099 --> 00:01:16.849 have been invited by a commissioner. Ah What also oral 00:01:16.859 --> 00:01:20.269 comments related to a specific agenda item will be 00:01:20.269 --> 00:01:23.519 heard when that specific item is taken up. This segment 00:01:23.530 --> 00:01:27.530 is for public general comments. Only speakers will 00:01:27.530 --> 00:01:30.909 be limited to three minutes each as usual. Mr Do we 00:01:30.909 --> 00:01:34.099 have anyone from the public signed up the street? No 00:01:34.099 --> 00:01:37.409 Sir, No one has signed up this morning. Thank you sir 00:01:37.409 --> 00:01:40.150 Public comment is now closed. 00:01:43.040 --> 00:01:45.530 The next item I believe is number three, I don't think 00:01:45.540 --> 00:01:48.200 we have anything on that, which will take us to item 00:01:48.200 --> 00:01:49.659 number five. Mr Jeanette 00:01:53.140 --> 00:01:56.349 (item:5) Item five is docket 49337. It's the application 00:01:56.349 --> 00:01:59.280 of Woodland Hills Water for Authority to change its 00:01:59.280 --> 00:02:03.530 rates proposed order was filed on January 21 of this 00:02:03.530 --> 00:02:07.359 year. No corrections or exceptions have been filed 00:02:09.740 --> 00:02:11.919 A lot of moving pieces in this one. Would love to hear 00:02:11.930 --> 00:02:15.090 thoughts, comments, questions man, I add some. Thank 00:02:15.090 --> 00:02:19.979 you. Mr Chairman. Okay. First of all, before I get 00:02:19.979 --> 00:02:24.530 into explaining where I fall down on this case, I'd 00:02:24.530 --> 00:02:27.729 like to highlight a couple of facts um, that have been 00:02:27.729 --> 00:02:30.210 brought forward. Woodland Hills is an important case 00:02:30.210 --> 00:02:34.319 from a number of perspectives for me, uh, completing 00:02:34.319 --> 00:02:37.889 the first year on the commission. It um, it adequately 00:02:37.889 --> 00:02:41.710 describes the breadth and diversity of the business 00:02:41.710 --> 00:02:45.560 plans and models in effect in the water space today 00:02:46.139 --> 00:02:51.919 Um, and certainly brought forward some facts that make 00:02:51.919 --> 00:02:54.780 this somewhat unique. First of all, this is a class 00:02:54.780 --> 00:02:59.759 B utility. It clearly has over 2600 consumer connections 00:03:00.330 --> 00:03:03.319 and this is a case that's been ongoing for approximately 00:03:03.319 --> 00:03:06.199 three years given the opportunity to bring forward 00:03:06.199 --> 00:03:09.189 a lot of data points that are valuable to us in its 00:03:09.189 --> 00:03:12.629 discovery process. The business plan utilized by the 00:03:12.629 --> 00:03:16.289 utility complex contemplates an affiliate relationship 00:03:16.300 --> 00:03:19.409 with between Woodland Hills and Aqua Tech, which appears 00:03:19.409 --> 00:03:23.449 to be owned and managed by the same people. Um Additionally 00:03:23.449 --> 00:03:26.259 Aqua Tech does not appear to serve any other customers 00:03:27.500 --> 00:03:31.310 and by its management services because of the utilities 00:03:31.310 --> 00:03:33.280 asserted affiliate structure. Woodland Hills has a 00:03:33.280 --> 00:03:36.289 contract with the Aqua Tech for labor materials and 00:03:36.289 --> 00:03:39.560 office expenses and yet Documents produced through 00:03:39.560 --> 00:03:42.439 discovery in this case indicate a almost universal 00:03:42.439 --> 00:03:46.550 15% adder. Is it being applied to every invoice forwarded 00:03:46.550 --> 00:03:49.620 by Aqua Tech to Woodland Hills. With the exception 00:03:49.629 --> 00:03:51.819 of the labor costs, which again, joint ownership and 00:03:51.819 --> 00:03:55.909 management and significantly among these invoices, 00:03:55.919 --> 00:03:59.789 we find um, pass through cost to consumers for water 00:03:59.789 --> 00:04:03.289 from the SAn Jacinto River authority. But again with 00:04:03.289 --> 00:04:09.770 the near Universal 15% adder. So When you drill down 00:04:09.770 --> 00:04:14.139 under the Texas Water Code section 13.185 payments 00:04:14.139 --> 00:04:16.680 made by utility to an affiliate must be reasonable 00:04:16.680 --> 00:04:19.889 and necessary. In this case, I'm not entirely sure 00:04:19.889 --> 00:04:24.040 that Aqua Tech qualifies as an affiliate Or if it's 00:04:24.050 --> 00:04:28.910 the, the utility itself, but regardless. Aqua Tex 15% 00:04:28.910 --> 00:04:31.860 Markup on invoices from vendors and third parties is 00:04:31.860 --> 00:04:35.500 not a reasonable or necessary affiliate expense. As 00:04:35.500 --> 00:04:37.730 a result, I do not believe that the rates in the settlement 00:04:37.740 --> 00:04:40.120 or in the application are just and reasonable which 00:04:40.120 --> 00:04:43.209 is required under the law. Operations and maintenance 00:04:43.209 --> 00:04:45.689 costs should be recovered. Dollar for dollar. Not with 00:04:45.689 --> 00:04:49.470 a 15% premium invested. Capital expenses should earn 00:04:49.470 --> 00:04:52.069 a fair rate of return, not a fair rate of return plus 00:04:52.069 --> 00:04:56.170 15%. Additionally, Woodland Hills failed to give notice 00:04:56.170 --> 00:05:01.160 too. Oh puck is required by 16-24.27. And recently 00:05:01.160 --> 00:05:03.819 we've granted good cause exceptions for class D utilities 00:05:03.819 --> 00:05:06.370 as we continually noted and attempted to reinforce 00:05:06.370 --> 00:05:09.560 that president. But this is clearly a class B utility 00:05:10.149 --> 00:05:12.259 that hasn't even asked for a good cause exception. 00:05:12.639 --> 00:05:15.600 And this is exactly the kind of water case that residential 00:05:15.610 --> 00:05:18.550 customer interests needed to be at the forefront of 00:05:19.139 --> 00:05:22.949 as such. I would recommend denying the application 00:05:24.329 --> 00:05:27.170 We'll put a 15% markup on the pass or it doesn't make 00:05:27.170 --> 00:05:33.079 it a passer. That's correct. It's cost plus 15%. That's 00:05:33.430 --> 00:05:34.149 well put 00:05:36.050 --> 00:05:40.589 well I agree with Commissioner Mcadams on all points 00:05:40.589 --> 00:05:44.730 and I would start with that I would deny the application 00:05:44.740 --> 00:05:48.339 Um Because what we've experienced here in this case 00:05:48.339 --> 00:05:51.240 is a flagrant disregard for rate making principles 00:05:51.240 --> 00:05:54.220 under the water code and the notice requirements under 00:05:54.220 --> 00:05:58.430 our water code and the commission rules I do not believe 00:05:58.430 --> 00:06:01.980 that the affiliate payments with the 15% markup adder 00:06:01.990 --> 00:06:04.879 are necessary and reasonable and thus the proposed 00:06:04.879 --> 00:06:08.509 rates are just and reasonable. And um as a class B 00:06:08.509 --> 00:06:11.629 utility they should have provided notice to pack and 00:06:11.629 --> 00:06:14.160 I want to I want to just set the record straight here 00:06:14.160 --> 00:06:17.009 I mean since I've been here I've been seeing a pattern 00:06:17.740 --> 00:06:21.009 A pattern where um utilities do not provide notice 00:06:21.009 --> 00:06:26.259 to open until months or years into the rape case proceedings 00:06:26.740 --> 00:06:30.129 And then at the tail end of the case when commission 00:06:30.129 --> 00:06:33.370 staff finally notices are asked if they have complied 00:06:33.370 --> 00:06:37.500 with notice requirements. The utility then um provides 00:06:37.500 --> 00:06:39.579 notice to them or provides notice and asked for a good 00:06:39.579 --> 00:06:42.509 cause exception in this case they didn't even do that 00:06:42.639 --> 00:06:46.149 Um And Opec has provided notice at the tail end of 00:06:46.149 --> 00:06:49.839 the case and then oh puck has to based on my experience 00:06:49.899 --> 00:06:53.060 would probably have to scramble review the application 00:06:53.060 --> 00:06:55.879 get expert feedback and then determine whether they're 00:06:55.879 --> 00:06:59.199 going to sign onto a baked settlement agreement and 00:06:59.740 --> 00:07:04.069 or what's the alternative to get in us. And so this 00:07:04.069 --> 00:07:07.060 is not a position that needs to find itself in, especially 00:07:07.060 --> 00:07:10.420 with class A. B. And I would venture even say see because 00:07:10.420 --> 00:07:13.139 they would most likely they would have intervened in 00:07:13.139 --> 00:07:18.689 this case but they never got noticed. And so um going 00:07:18.689 --> 00:07:22.819 forward I from my perspective will absolutely expect 00:07:22.870 --> 00:07:25.449 that water utilities provide them notice for the rural 00:07:25.449 --> 00:07:26.189 requirements. 00:07:27.939 --> 00:07:31.829 And and if they don't then they're gonna I'll deny 00:07:31.829 --> 00:07:35.230 the application. Oh pack for my, that would be my vote 00:07:35.240 --> 00:07:37.949 because opec needs to have a seat at the table. They 00:07:37.949 --> 00:07:40.079 shouldn't be put in a position to be scrambling around 00:07:40.079 --> 00:07:42.639 at the last minute then trying to get expert feedback 00:07:42.639 --> 00:07:46.069 and and having to sign onto a baked settlement agreement 00:07:46.079 --> 00:07:48.850 And this is a pattern that I've seen again and where 00:07:48.850 --> 00:07:51.420 it's time to break the pattern. And so based on that 00:07:51.420 --> 00:07:54.519 reason as well, I would deny the application 00:07:57.439 --> 00:08:02.060 well stated, couldn't agree more and I wouldn't 00:08:04.339 --> 00:08:07.350 trust your sentiment expands to beyond just water cases 00:08:07.399 --> 00:08:11.269 All cases need to include a puck in the process as 00:08:11.269 --> 00:08:15.199 intended include them early enough for a buck to do 00:08:15.199 --> 00:08:19.050 their job and fully agree with you. That 00:08:21.139 --> 00:08:25.360 not doing so would be immediate grounds for not even 00:08:25.740 --> 00:08:29.019 not even considering anything else. If you don't notice 00:08:29.019 --> 00:08:33.429 hope and you're required to and you don't do it appropriate 00:08:33.429 --> 00:08:37.169 time frame, don't even bother falling through the rest 00:08:37.169 --> 00:08:40.889 of it. Thank you, Chairman. I'm in support of all the 00:08:40.889 --> 00:08:42.850 comments that have been said and and believe it should 00:08:42.850 --> 00:08:45.570 be denied as a result of what you all have said. I'm 00:08:45.570 --> 00:08:48.399 in total agreement. Yeah. What what I what I would 00:08:48.399 --> 00:08:51.889 add as well as um based on our denial the of the 00:08:51.899 --> 00:08:54.629 application that the utility would not recover rate 00:08:54.629 --> 00:08:59.200 case expenses and um that the utility would go back 00:08:59.200 --> 00:09:01.070 to charging there originally approved rates in their 00:09:01.070 --> 00:09:01.950 original tariff 00:09:04.129 --> 00:09:05.980 and that they would have to resubmit an application 00:09:05.980 --> 00:09:06.549 if they choose to. 00:09:08.340 --> 00:09:11.669 I agree completely. Like all that is incorporated into 00:09:11.669 --> 00:09:16.049 all of the applications, you need to certainly a denying 00:09:16.049 --> 00:09:18.200 the application. We can add language in order to make 00:09:18.200 --> 00:09:21.740 clear that the, the rates they had coming into this 00:09:21.740 --> 00:09:25.870 case or continue to be there uh existing legal rates 00:09:25.870 --> 00:09:29.490 and they're they're the only tariff they have. Yes 00:09:29.500 --> 00:09:29.960 thank you 00:09:31.740 --> 00:09:34.580 that work for you. All right. Is there a motion to 00:09:34.580 --> 00:09:38.009 deny the application and and in that denial include 00:09:38.009 --> 00:09:41.509 language as discussed at the diocese. All in favor 00:09:41.509 --> 00:09:46.129 say, aye, aye, I'm not opposed the motion passes next 00:09:46.129 --> 00:09:52.460 time please. Mr. Journeay, Item 6. (item:6) Docket 50067 Commission Staff's 00:09:52.460 --> 00:09:56.080 application uh for an order appointing a temporary 00:09:56.080 --> 00:10:01.289 manager to the Tawakoni wastewater treatment plant commission 00:10:01.289 --> 00:10:04.029 staff has filed a recommendation that the commission 00:10:04.039 --> 00:10:07.159 terminate the appointment of Mr Troy Henry, That's 00:10:07.159 --> 00:10:11.159 the Temple temporary manager of that plant. The Commission 00:10:11.159 --> 00:10:13.909 approved the sale of this plant to the Sabine River 00:10:13.909 --> 00:10:17.799 Authority by Order dated March 19, 2020. So it has 00:10:17.799 --> 00:10:22.840 a new owner. Thank you sir, thoughts, comments. Yeah 00:10:22.840 --> 00:10:27.549 I have no issue with this. It's a cleanup. Great. Yeah 00:10:27.559 --> 00:10:30.889 it's pretty straightforward, but I'd also like to come 00:10:30.889 --> 00:10:33.789 in as being River Authority and David montagne and 00:10:33.789 --> 00:10:37.159 his team for stepping up and taking on small system 00:10:37.159 --> 00:10:40.879 like this. I appreciate that. Is there a motion to 00:10:40.879 --> 00:10:44.610 grant staff, motion to terminate the temporary manager 00:10:46.139 --> 00:10:47.110 all in favor say, aye. 00:10:48.750 --> 00:10:52.370 None opposed motion passes. Next item please. (item:7) Item 00:10:52.370 --> 00:10:56.759 seven is docket 50247. This petition of Lake Livingston 00:10:56.759 --> 00:11:00.789 Water Supply Corporation for approval of cessation 00:11:00.789 --> 00:11:03.450 of water service to the SaM Houston Lake Estates in 00:11:03.450 --> 00:11:06.460 Liberty County. A proposed order was filed on December 00:11:06.460 --> 00:11:09.750 one. No exceptions or corrections have been filed, 00:11:10.210 --> 00:11:12.960 I have a memo with proposed changes to the order. 00:11:14.740 --> 00:11:17.220 Thank you sir, thoughts, comments, 00:11:22.340 --> 00:11:24.340 unique challenge in this case. 00:11:26.809 --> 00:11:27.159 The 00:11:29.039 --> 00:11:32.250 leaving leaving customers stranded is a key issue. 00:11:33.080 --> 00:11:38.279 Um and obviously that's got to be balanced with floodplain 00:11:38.279 --> 00:11:42.669 management and the resources and initiatives that have 00:11:42.669 --> 00:11:46.190 been put in place to mitigate flood risk to the broader 00:11:46.190 --> 00:11:48.649 community and communities downstream. 00:11:51.340 --> 00:11:56.940 So so Mr. Chairman, your your points are well taken 00:11:56.950 --> 00:12:02.000 I think our options are somewhat limited here. I do 00:12:02.000 --> 00:12:06.840 think additional information is always helpful in terms 00:12:06.840 --> 00:12:11.129 of if these customers are still actively served by 00:12:11.129 --> 00:12:14.990 the utility, it appears that there's other governmental 00:12:14.990 --> 00:12:20.220 actors involved in this situation. One the county to 00:12:20.220 --> 00:12:24.360 the texas Commission on Environmental Quality. So we're 00:12:24.840 --> 00:12:30.490 we're kind of playing clean up on this to assist the 00:12:30.490 --> 00:12:36.289 utility in in clarifying their role. But I know that 00:12:36.289 --> 00:12:40.720 others have views on it. I think we proceed cautiously 00:12:40.720 --> 00:12:46.639 here because again we are establishing this this road 00:12:46.649 --> 00:12:53.120 um to which we can actively endorse a plan to deny 00:12:53.120 --> 00:12:58.019 service to customers and so um we need to be narrow 00:12:58.029 --> 00:13:02.759 in our focus um but I welcome any other thoughts. 00:13:04.840 --> 00:13:06.799 I agree. I think we need to ask some more questions 00:13:06.799 --> 00:13:08.950 I mean it's a it's a very unique case with a lot 00:13:08.950 --> 00:13:10.629 of different perspectives on it. Right? I think the 00:13:10.629 --> 00:13:14.980 utility has taken a lot of actions to ensure that these 00:13:14.980 --> 00:13:17.570 residential consumers continue to take water or have 00:13:17.570 --> 00:13:21.000 water available to them. Um I'm wondering, you know 00:13:21.000 --> 00:13:22.950 I'd like to have more information about the county 00:13:22.950 --> 00:13:25.240 and their role. I know that a big part of the utility 00:13:25.240 --> 00:13:27.860 not be able to serve those four remaining customers 00:13:28.240 --> 00:13:31.519 is the access to the road. And so I'm just wondering 00:13:31.519 --> 00:13:35.139 you know, as you look at the county and their authority 00:13:35.149 --> 00:13:38.899 and um their interests in trying to set forth the buyout 00:13:38.899 --> 00:13:42.480 program and and create that flood plain buffer zone 00:13:42.490 --> 00:13:45.759 You know, how does that contrast with property rights 00:13:45.759 --> 00:13:47.950 as a resident that you know, they don't want to move 00:13:47.960 --> 00:13:50.580 and they're essentially being you know, cut off from 00:13:50.580 --> 00:13:54.230 water because the road is accessible central services 00:13:54.230 --> 00:13:57.330 So I just want to make sure that um we have a 00:13:57.330 --> 00:14:00.710 robust record in which to make a decision on because 00:14:00.720 --> 00:14:03.750 if we do decide to move forward with this continuation 00:14:03.750 --> 00:14:06.690 of of water and the certification of that area, then 00:14:06.690 --> 00:14:09.220 we want to make sure we do that with the best available 00:14:09.220 --> 00:14:11.990 information because it is, you know, we're cutting 00:14:11.990 --> 00:14:14.370 off a critical essential service here for four residents 00:14:15.039 --> 00:14:18.820 I don't want to move off their property. Yeah, good 00:14:18.820 --> 00:14:22.950 points all. Um It should be clear if we can accommodate 00:14:23.539 --> 00:14:26.100 those those four connections. I think it makes perfect 00:14:26.100 --> 00:14:29.019 sense to move forward with the discontinuation service 00:14:29.019 --> 00:14:33.519 and de certify that portion of the CCN as long as we 00:14:33.519 --> 00:14:36.480 can get enough information to be comfortable that these 00:14:36.480 --> 00:14:39.490 connections will continue to receive essential services 00:14:39.840 --> 00:14:42.860 That makes sense. Yeah, it does go ahead. I'm sorry 00:14:42.860 --> 00:14:45.779 I was just gonna say, I mean I I struggle with this 00:14:45.779 --> 00:14:48.659 at the front end telling a utility that they can't 00:14:48.659 --> 00:14:52.000 service or that they are discontinuing service from 00:14:52.000 --> 00:14:54.299 residents that they have historically served? Its very 00:14:54.299 --> 00:14:59.159 unique circumstance here. Obviously I think requesting 00:14:59.159 --> 00:15:01.269 more information is really important. We don't even 00:15:01.289 --> 00:15:04.250 at least from our record here, know what the county 00:15:04.250 --> 00:15:06.970 is doing, How what are the other emergency services 00:15:06.970 --> 00:15:08.750 or other things, How are they going to provide those 00:15:08.750 --> 00:15:12.389 types of services to for landowners in this area? And 00:15:12.399 --> 00:15:19.200 um I think um you know, we have an obligation to uphold 00:15:19.200 --> 00:15:22.659 our rules would say that if they have a certificated 00:15:22.669 --> 00:15:25.320 service territory and they're serving customers, they 00:15:25.320 --> 00:15:29.080 should continue to do so. But we need more information 00:15:29.080 --> 00:15:32.450 to say I'm open to allowing that the decertification 00:15:32.460 --> 00:15:34.950 if we can get more information in that regard that 00:15:34.960 --> 00:15:38.429 that you know, makes that case get comfortable with 00:15:38.429 --> 00:15:42.279 whatever the Next version of service for these four 00:15:42.279 --> 00:15:45.399 connections are. See mr johnny, he's got his pin out 00:15:45.399 --> 00:15:49.740 Do we have a certain questions? We'd like to ask staff 00:15:49.750 --> 00:15:50.460 to 00:15:52.240 --> 00:15:54.750 two send back to the utility. 00:15:58.440 --> 00:16:00.429 I certainly want to know what a lot of things that 00:16:00.429 --> 00:16:03.059 jimmy mentioned like what is the buyout program still 00:16:03.059 --> 00:16:07.269 in effect or not? Provision of water? Are they still 00:16:07.269 --> 00:16:10.090 actively providing water service to the customers? 00:16:10.100 --> 00:16:13.059 Are there are there four m? um 00:16:16.639 --> 00:16:19.679 So again, total count of active connections. I think 00:16:19.679 --> 00:16:22.100 we should ask the applicant, you know what they believe 00:16:22.100 --> 00:16:24.990 the state of the county roads are, what the state of 00:16:24.990 --> 00:16:28.820 emergency services are for the the the provision to 00:16:28.820 --> 00:16:34.409 those customers? Um We are therefore residents still 00:16:34.409 --> 00:16:38.259 remaining. So how many active connections remain? Um 00:16:39.639 --> 00:16:42.100 I mean, there's there's some owners that, that we need 00:16:42.100 --> 00:16:44.620 to understand from the homeowners as well because this 00:16:44.620 --> 00:16:48.059 is a area that is prone to flood, There's a reason 00:16:48.059 --> 00:16:51.259 why the county is trying to buy out these homes because 00:16:51.259 --> 00:16:56.279 there's a hazard. So um this isn't all driven towards 00:16:56.279 --> 00:16:59.029 this water utility. There's some of this onus is on 00:16:59.029 --> 00:17:01.840 these homeowners that everybody else in the neighborhood 00:17:01.840 --> 00:17:04.670 has left except for four. So have a better understanding 00:17:04.670 --> 00:17:07.339 of what's been offered and why they have rejected it 00:17:08.740 --> 00:17:13.119 Go ahead to. Can we characterize that as the most recent 00:17:13.119 --> 00:17:17.119 update and an update on the most recent meetings between 00:17:17.130 --> 00:17:19.789 the utility and the residents, They've been, they've 00:17:19.789 --> 00:17:23.079 had ongoing meetings understand. Okay. I think the 00:17:23.079 --> 00:17:27.960 other thing is if this gets Dysart decertified, um 00:17:28.940 --> 00:17:33.150 and these homeowners take over this obligation, they 00:17:33.150 --> 00:17:36.049 have an obligation to make sure that it is in accordance 00:17:36.049 --> 00:17:39.589 with the rules um and water quality issues, how do 00:17:39.589 --> 00:17:43.950 they plan on doing that? What's the uh how is that 00:17:43.960 --> 00:17:46.930 something that they could ensure? Right. Are they providing 00:17:46.930 --> 00:17:49.299 potable water in some other form to them while they 00:17:49.299 --> 00:17:52.380 continue to have the CCN? Um The other question I have 00:17:52.380 --> 00:17:54.119 is, you know, what's the status of the buyout program 00:17:54.119 --> 00:17:58.019 I know that the buyout program based on um the information 00:17:58.019 --> 00:18:02.039 I reviewed is um funded by federal funds are provided 00:18:02.039 --> 00:18:06.240 to the state in response to Hurricane Harvey. And so 00:18:06.250 --> 00:18:08.609 what is the status of the buyout program right now 00:18:08.619 --> 00:18:12.400 um, have any key deadlines expired? Or is a county 00:18:12.839 --> 00:18:16.130 working towards complying with certain deadlines that 00:18:16.140 --> 00:18:19.299 um, these residents need to be aware of or are they 00:18:19.299 --> 00:18:23.910 aware of them? Um, I'd like to understand sort of the 00:18:23.910 --> 00:18:26.619 dynamics there. Right. Um, with respect to the funding 00:18:26.619 --> 00:18:31.019 and the buyout program as well. Okay. Stephen, did 00:18:31.019 --> 00:18:34.250 we mention road, did we address the road conditions 00:18:34.259 --> 00:18:36.240 on the part of the utility and whether they can actually 00:18:36.250 --> 00:18:40.089 access their facilities? Yes, sir. And, and more, I 00:18:40.089 --> 00:18:44.630 think along those lines is, is we've really like an 00:18:44.630 --> 00:18:49.589 understanding of, mm hmm, what services they can get 00:18:49.589 --> 00:18:52.299 in to provide and what services they can't. We, we 00:18:52.299 --> 00:18:54.900 understand that perhaps the bigger trucks can't get 00:18:54.910 --> 00:18:59.099 there, but HDTVs might, but that probably suggests 00:18:59.099 --> 00:19:02.180 that for certain maintenance types of operations, they 00:19:02.180 --> 00:19:06.839 may not be able to undertake those. Also. We, I think 00:19:06.839 --> 00:19:10.170 lack insight into the status of the existing facilities 00:19:10.640 --> 00:19:14.299 We don't, I think I know whether or not the existing 00:19:14.299 --> 00:19:18.109 facilities are capable of still delivering water, add 00:19:18.109 --> 00:19:21.299 that to the list of questions. And, and, and if it's 00:19:21.299 --> 00:19:24.299 not, it's kind of like it's like Livingston doing something 00:19:24.299 --> 00:19:28.670 else to transport water into these people or I mean 00:19:28.680 --> 00:19:31.670 we're, we are flying blind here. 00:19:33.750 --> 00:19:37.279 So on that score, have any meetings between Lake Livingston 00:19:37.289 --> 00:19:40.200 Wsc and the remaining customers resulted in a continuity 00:19:40.200 --> 00:19:43.779 of service plan. So again, if we could get a somewhat 00:19:43.779 --> 00:19:48.019 comprehensive answer on that and with respect to one 00:19:48.019 --> 00:19:50.549 final piece to the buyout program set of questions 00:19:50.559 --> 00:19:53.779 Um if deadlines have not been met or have been met 00:19:53.779 --> 00:19:57.809 like what is the um impact of is their condemnation 00:19:57.809 --> 00:20:01.339 being contemplated? So um there could be, you know 00:20:01.349 --> 00:20:04.009 the county may be looking at taking action themselves 00:20:04.019 --> 00:20:07.809 under some of their authority with respect to the floodplain 00:20:08.339 --> 00:20:12.039 I'm just wondering because you know, we had discussed 00:20:12.039 --> 00:20:14.069 that in the past, there was other areas of the state 00:20:14.069 --> 00:20:20.119 where um municipalities took action to meet certain 00:20:20.130 --> 00:20:23.589 program requirements and condemnation was put in place 00:20:23.589 --> 00:20:26.299 So I'm just wondering if that, you know what, what's 00:20:26.299 --> 00:20:28.259 going on with the county really. I mean that's that's 00:20:28.259 --> 00:20:30.640 really, that's why this is so interesting because it's 00:20:30.650 --> 00:20:33.450 in the county, not in the city and the counties have 00:20:33.450 --> 00:20:37.150 limited jurisdiction anyway. I won't get into that 00:20:37.160 --> 00:20:41.849 but they are limited. So in addition to asking questions 00:20:41.849 --> 00:20:45.720 of the utility, would you like us to to send correspondence 00:20:45.720 --> 00:20:48.380 to the county and see if they could be forthcoming 00:20:48.380 --> 00:20:51.910 on that kind of issue? I think it would be helpful 00:20:51.910 --> 00:20:54.069 to get feedback from them. I mean they're a major player 00:20:54.069 --> 00:20:56.259 here. They're they're the entity that is making the 00:20:56.259 --> 00:20:59.480 road inaccessible that's trying to put forth this buyout 00:20:59.480 --> 00:21:03.519 program and they would be the one who would give a 00:21:03.529 --> 00:21:06.859 more appropriate answer on how they intend or would 00:21:06.859 --> 00:21:09.650 provide emergency services or others to homeowners 00:21:09.650 --> 00:21:14.359 in the county. Yes sir, willing to if they're going 00:21:14.359 --> 00:21:18.839 to because we'd like to be consistent with that. Yeah 00:21:19.240 --> 00:21:22.380 Well, we'll certainly make an effort. Sure. Do you 00:21:22.380 --> 00:21:24.410 have everything you need in terms of list of questions 00:21:24.420 --> 00:21:29.359 Yes sir. So we we will prepare I'll prepare correspondence 00:21:29.359 --> 00:21:32.769 this into the utility uh and to the county to ask. 00:21:33.430 --> 00:21:35.859 Let's see if we can get information in these arenas 00:21:36.539 --> 00:21:40.410 Alright, procedurally. Do you need uh emotion informal 00:21:40.410 --> 00:21:46.730 direction? I feel capable of just doing this sir. I 00:21:46.740 --> 00:21:49.430 think I can write a letter. All right, well, we'll 00:21:49.430 --> 00:21:50.490 take a flyer on you. 00:21:52.500 --> 00:21:56.900 Anything else on this side? The heart of paragraph 00:21:57.109 --> 00:21:57.549 Okay, 00:21:59.990 --> 00:22:05.839 paragraph. When we come back next. Honestly, I think 00:22:05.839 --> 00:22:08.170 with the county, I think we may search on the phone 00:22:08.170 --> 00:22:10.599 and see if we can talk to somebody and find out what 00:22:10.599 --> 00:22:13.150 kind of answers they can answer before we ask them 00:22:14.150 --> 00:22:17.150 to look forward to hearing about your adventures with 00:22:17.150 --> 00:22:17.759 the phone book. 00:22:19.839 --> 00:22:24.160 Good luck with that Sheila. Yes. 00:22:26.039 --> 00:22:26.359 Mhm. 00:22:28.339 --> 00:22:32.890 There's a Boyd walker for commission staff. As far 00:22:32.890 --> 00:22:36.200 as the buyout program is concerned, I have the information 00:22:36.200 --> 00:22:40.109 on the contractor that's managing that and I can give 00:22:40.109 --> 00:22:44.319 that information to mr johnny sort of cut that step 00:22:44.319 --> 00:22:45.470 of contacting the county and 00:22:47.099 --> 00:22:49.660 be helpful to coordinate. Excellent. Thank you. 00:22:52.240 --> 00:22:55.009 Alright. That concludes business on item number seven 00:22:55.019 --> 00:22:59.940 which brings us to item number eight. (item:8) Item eight is 00:22:59.940 --> 00:23:04.299 docket 51407 application of dos Equis for water 00:23:04.299 --> 00:23:08.309 CCN Down in walker Montgomery and san Bernardino Counties 00:23:08.970 --> 00:23:13.450 Commission previously issued an order Dated March 15 00:23:13.450 --> 00:23:16.380 in which they denied the application before you use 00:23:16.380 --> 00:23:18.549 a motion for rehearing on that order. 00:23:24.039 --> 00:23:27.140 We've we've seen this project before this application 00:23:27.140 --> 00:23:30.259 before. I know a lot has been accomplished since that 00:23:30.269 --> 00:23:32.980 time. I would love to hear your thoughts or comments 00:23:33.609 --> 00:23:37.349 I personally am glad more information has been forthcoming 00:23:37.359 --> 00:23:44.069 Uh It looks like the the developer of the uh utility 00:23:44.079 --> 00:23:47.460 potential utility in question has has taken the feedback 00:23:47.470 --> 00:23:51.970 from our hearing to heart. And it looks like this. 00:23:51.970 --> 00:23:56.970 Could it could proceed. I'm hopeful I won't prejudge 00:23:56.980 --> 00:24:00.670 but um yeah it looks like we're on the right track 00:24:01.509 --> 00:24:05.779 Yeah. Um I would grant rehearing and remand the case 00:24:05.779 --> 00:24:09.230 back for further processing so that um the utility 00:24:09.230 --> 00:24:11.480 has the opportunity to mend their application and submit 00:24:11.480 --> 00:24:14.019 all the additional information into the evidentiary 00:24:14.019 --> 00:24:16.940 record including the TC Q. Letter, the final approval 00:24:16.940 --> 00:24:20.390 letter. If they have it. And if they don't then um 00:24:20.529 --> 00:24:23.619 you know provide it when they do have it And I think 00:24:23.619 --> 00:24:25.769 the additional information that I believe would be 00:24:25.769 --> 00:24:28.200 needed would be to clarify the number of connections 00:24:28.220 --> 00:24:32.269 that can be served by the by water plant one and I 00:24:32.269 --> 00:24:36.369 would limit the Our our review at this time to water 00:24:36.369 --> 00:24:41.170 plant one. Um If if we are able to grant a CCN 00:24:41.319 --> 00:24:44.569 for water plant one, Um the utility could then come 00:24:44.569 --> 00:24:47.799 in in the future for water plant to water plant three 00:24:47.799 --> 00:24:51.670 So we would review Um as opposed to one big application 00:24:52.029 --> 00:24:55.630 there build out of the water plants in a phased manner 00:24:55.900 --> 00:24:58.279 They could just amend and so we would review it as 00:24:58.279 --> 00:24:59.990 those amendments come in. Exactly. 00:25:02.119 --> 00:25:05.390 And when you said TC acute a letter, do you mean the 00:25:05.390 --> 00:25:09.369 approval of the plan? Right? The post construction 00:25:09.369 --> 00:25:13.289 letter, that's what we need for sure. And we we understand 00:25:13.289 --> 00:25:14.670 that they have asked for that. 00:25:16.329 --> 00:25:21.059 And so um we've got a little crossing here but there's 00:25:24.140 --> 00:25:26.359 we can deal with, we can deal with that on the back 00:25:26.359 --> 00:25:29.319 I mean one of the main reasons to to send back is 00:25:29.319 --> 00:25:32.720 all the information that came with the motion uh for 00:25:32.720 --> 00:25:35.920 rehearing. We need to get into the evidentiary record 00:25:35.930 --> 00:25:40.140 and then uh the additional points uh Commissioner Cobos 00:25:40.150 --> 00:25:42.519 talked about, we need a clear number of the number 00:25:42.519 --> 00:25:45.849 of connections and we need a clear map to show us the 00:25:45.849 --> 00:25:48.779 arena in which those connections can be served so that 00:25:48.779 --> 00:25:53.769 we can Perhaps get this phase one A CCN going and get 00:25:53.769 --> 00:25:54.700 them on the road. 00:25:56.539 --> 00:26:01.420 It appears that the water plant #2 is not this far 00:26:01.420 --> 00:26:03.859 along that they need to do a little bit more. And so 00:26:03.869 --> 00:26:07.470 a subsequent application to amend the CCN to add that 00:26:07.470 --> 00:26:10.519 one in might not be too far down the road and and 00:26:10.529 --> 00:26:12.099 and we're developing a good 00:26:13.640 --> 00:26:17.000 pathway for them to follow here. And then the water 00:26:17.000 --> 00:26:20.420 plant three would be further down the road agreed 00:26:23.039 --> 00:26:29.000 importantly, I would like to acknowledge that the developer 00:26:29.000 --> 00:26:32.099 had done a lot of the work we were looking for. We 00:26:32.099 --> 00:26:36.210 just didn't, we couldn't see it and that's just crossed 00:26:36.210 --> 00:26:39.819 wires procedurally. So I do want to acknowledge that 00:26:39.819 --> 00:26:42.220 the developer in many ways had done a lot of the things 00:26:42.220 --> 00:26:45.710 we were looking for. It just wasn't in the record and 00:26:45.710 --> 00:26:49.640 like you said, I think we've got a a good framework 00:26:49.650 --> 00:26:52.980 and a good a good path forward of what's needed And 00:26:52.980 --> 00:26:56.880 so we can get moving hopefully on plant one quickly 00:26:56.890 --> 00:27:00.049 and got a good path forward on plant to implant three 00:27:00.539 --> 00:27:03.609 or at least a good framework and guide posts on what's 00:27:03.609 --> 00:27:06.720 needed. Mm hmm. All of that. 00:27:08.440 --> 00:27:10.559 Alright, is there a motion to grant rehearing and remand 00:27:10.559 --> 00:27:12.609 the case? Is docket management for further processing 00:27:12.609 --> 00:27:16.559 consistent with this discussion at the diess and relevant 00:27:16.559 --> 00:27:19.869 information requested second. All in favor say, aye 00:27:21.109 --> 00:27:22.349 opposed motion passes. 00:27:24.039 --> 00:27:26.049 Next item please. Mr journey 00:27:27.740 --> 00:27:32.609 I believe sir. The next time we go to 20 00:27:34.539 --> 00:27:38.460 A lot of consents, nothing on 16 with it does bring 00:27:38.460 --> 00:27:43.380 us to item 20 docket 52828. (item:20) That is the application 00:27:43.380 --> 00:27:46.880 of golden spread electric cooperative to change its 00:27:46.880 --> 00:27:50.319 wholesale transmission service rates. A draft preliminary 00:27:50.319 --> 00:27:53.319 order was filed on March 18 and chairman like you have 00:27:53.319 --> 00:27:56.970 filed a member in this battle. Thank you sir. This 00:27:56.970 --> 00:28:00.130 is fairly straightforward, but I did want to bring 00:28:00.130 --> 00:28:04.170 up the brief point that to make sure we ask about right 00:28:05.140 --> 00:28:07.490 large expenditures, expenditures outside the normal 00:28:07.490 --> 00:28:11.240 course of business in golden spreads effort to become 00:28:11.240 --> 00:28:15.440 its own transmission operator. I don't know in no way 00:28:15.440 --> 00:28:18.089 should that be interpreted as a negative perception 00:28:18.089 --> 00:28:21.140 or pre judgment of that? I think it's just, it's something 00:28:21.140 --> 00:28:23.390 that we want to make sure we have information that 00:28:25.240 --> 00:28:28.009 oh, I love information and and and better and more 00:28:28.009 --> 00:28:32.700 of it. Um, so I'd support you Mr chairman and uh, those 00:28:32.700 --> 00:28:36.059 responses will be um, will be enlightening, I'm sure 00:28:36.440 --> 00:28:38.970 Yeah, we've we've seen the other side of the transmission 00:28:38.980 --> 00:28:43.960 operator issue recently. Certainly the key point 00:28:45.789 --> 00:28:49.119 questions comments. I like your questions. The additions 00:28:49.119 --> 00:28:51.309 to the preliminary order and I would move to approve 00:28:51.309 --> 00:28:56.049 it. We've got a motion two all in favor say, aye, aye 00:28:56.440 --> 00:29:01.470 none opposed motion passes. Item 21 Please sir. (item:21) item 00:29:01.470 --> 00:29:08.420 21 is docked at 53058 is agreed N. O V regarding nrg 00:29:08.420 --> 00:29:12.680 texas power incorporated violations of pure commission 00:29:12.680 --> 00:29:16.650 rules and ERCOT Protocols were alleged. A proposed 00:29:16.650 --> 00:29:20.210 order was filed on February seven. No exceptions or 00:29:20.210 --> 00:29:23.279 corrections were filed. I have a memo with proposed 00:29:23.279 --> 00:29:27.309 changes to the order. Thank you sir. Box comments on 00:29:27.309 --> 00:29:32.390 the side. Look, I think this is a an important case 00:29:32.400 --> 00:29:36.180 um and no broad reflection on nrg I think this is the 00:29:36.180 --> 00:29:41.670 first um where we will look at where uh resource adequacy 00:29:41.670 --> 00:29:47.769 related um ERCOT events happened. Um This is clearly 00:29:47.769 --> 00:29:53.099 involving units that were bidding into Ancillary services 00:29:53.099 --> 00:29:57.720 So as we move forward on our Phase one and Phase two 00:29:57.769 --> 00:30:00.160 considerations. Phase one implementation, Phase two 00:30:00.160 --> 00:30:05.380 considerations, this sets out a an example of how bad 00:30:05.390 --> 00:30:09.880 things can happen and um as as the case demonstrated 00:30:11.140 --> 00:30:15.670 you know, and cases have demonstrated that operator 00:30:15.670 --> 00:30:20.839 error can occur, software anomalies can occur. Um The 00:30:20.849 --> 00:30:26.809 the commission is, is sensitive to that but but everything 00:30:26.809 --> 00:30:29.690 is being looked at and a more rigorous enforcement 00:30:29.690 --> 00:30:34.680 policy is being pursued and and thus we, we are driving 00:30:34.680 --> 00:30:39.569 towards a greater state of resiliency and reliability 00:30:39.569 --> 00:30:42.599 on the grid so thank you. Mr Chairman for the opportunity 00:30:42.599 --> 00:30:48.380 to talk about no agreed. Um Are you, are you comfortable 00:30:48.380 --> 00:30:49.109 with imposed order? 00:30:50.640 --> 00:30:53.950 You know that support the proposed order? I do too 00:30:53.950 --> 00:30:58.410 as well. Um Including commission Counsel's memo changes 00:30:58.420 --> 00:31:01.089 um I think nrg set for the list of specific corrective 00:31:01.089 --> 00:31:04.750 actions that they've taken since um the violations 00:31:04.750 --> 00:31:07.359 and so I would be prepared to adopt the proposed order 00:31:07.359 --> 00:31:10.420 with commissioned council's proposed changes. Alright 00:31:10.430 --> 00:31:11.059 you have a motion 00:31:13.240 --> 00:31:16.480 so I heard a motion there's motion we got a motion 00:31:16.480 --> 00:31:20.849 and a second all in favor say aye, none opposed motion 00:31:20.849 --> 00:31:26.170 passes brings us to 23 24 I don't think we have any 00:31:26.180 --> 00:31:30.769 business on those items Which will bring us to item 00:31:30.769 --> 00:31:35.849 number 25 wholesale electric ERCOT design. (item:25) Mhm 00:31:37.640 --> 00:31:41.700 uh 25 Project 5 to 373. It's a review of hotel electric 00:31:41.700 --> 00:31:44.960 ERCOT design. Commissioner Glass flt has filed a memo 00:31:44.960 --> 00:31:50.690 in this project. The floor is yours. Again, it this 00:31:50.690 --> 00:31:54.680 is probably a very well written, it's, it's in my wheelhouse 00:31:54.680 --> 00:32:01.470 to write these memos. It's um the 20 some odd years 00:32:01.470 --> 00:32:06.640 ago. Um as we unbundled the electric ERCOT and moved 00:32:06.650 --> 00:32:10.349 towards competitive generation in the state um we had 00:32:10.349 --> 00:32:13.130 a challenge interconnecting large power plants to the 00:32:13.140 --> 00:32:15.339 to the transmission bolted to the transmission system 00:32:15.339 --> 00:32:19.849 in the state. We created ERCOT I'm sorry the puc created 00:32:19.849 --> 00:32:26.430 at that time a process to interconnect um these facilities 00:32:26.470 --> 00:32:28.990 they created standard generation interconnect agreement 00:32:29.000 --> 00:32:32.470 process, timeline, cost allocation. We have moved beyond 00:32:32.470 --> 00:32:35.769 that as we all know, as we are moving towards more 00:32:35.779 --> 00:32:38.660 interconnections of different devices at the distribution 00:32:38.660 --> 00:32:42.390 level. This is just a natural progression of how this 00:32:42.390 --> 00:32:46.410 system is moving um and I think um as we are looking 00:32:46.410 --> 00:32:52.109 to get more um types of facilities providing megawatts 00:32:52.109 --> 00:32:56.180 on our, on our system um to make sure that all types 00:32:56.180 --> 00:33:00.210 of megawatts are available. Uh So we don't have major 00:33:00.210 --> 00:33:04.519 outages. Um getting these folks in a room, uh developing 00:33:04.519 --> 00:33:07.019 our project so that we can address some of the same 00:33:07.019 --> 00:33:10.029 issues um at the distribution level that we have done 00:33:10.029 --> 00:33:13.059 at the at the transmission level. That's the reason 00:33:13.059 --> 00:33:15.799 for my memo. Um I believe that now is a good time 00:33:15.799 --> 00:33:18.420 to do it. We're ahead of the curve before this becomes 00:33:18.420 --> 00:33:22.099 a big rush. I think if we don't do this, we're gonna 00:33:22.099 --> 00:33:26.970 solve these issues on a utility by utility basis, on 00:33:26.970 --> 00:33:29.410 a filing by filing basis and I think we're going to 00:33:29.410 --> 00:33:33.410 save the staff and the industry and ourselves time 00:33:33.410 --> 00:33:36.519 money effort by setting the rules of the road early 00:33:36.529 --> 00:33:39.930 and letting them all hash it out and then file what 00:33:39.930 --> 00:33:44.750 we think is best for that process going forward, appreciate 00:33:44.750 --> 00:33:52.240 the points and certainly a ford looking memo and proposed 00:33:52.240 --> 00:33:54.950 course of action. I know Commissioner Mcadams has been 00:33:55.539 --> 00:33:59.210 taking the lead on distributed resources. I was gonna 00:33:59.269 --> 00:34:02.380 I was gonna dovetail in on this. Mr Chairman, as you 00:34:02.390 --> 00:34:06.769 your instinct indicated. Um I believe that the scope 00:34:06.769 --> 00:34:10.519 of the project, I agree with having a project. Um I 00:34:10.519 --> 00:34:13.960 believe the project as uh laid out by Commissioner 00:34:13.960 --> 00:34:16.849 Claude felt he should also include distributed generation 00:34:16.849 --> 00:34:20.849 and distributed energy resources as we look at uh, 00:34:20.860 --> 00:34:25.210 distribution level interconnections. Um I believe it 00:34:25.210 --> 00:34:29.639 could allow for feedback from our utilities um, noise 00:34:29.639 --> 00:34:33.639 as well as uh, well I know is I would be grateful 00:34:33.639 --> 00:34:35.599 for noise but for the time being, I'll start with our 00:34:35.599 --> 00:34:41.199 competitive um I o U T Dus in terms of providing what 00:34:41.199 --> 00:34:44.530 is needed um in terms of best available technology 00:34:44.530 --> 00:34:47.760 or distribution level enhancements going all the way 00:34:47.760 --> 00:34:51.130 down to feeders. What is needed to more effectively 00:34:51.139 --> 00:34:54.760 integrate these resources in a way that allows grid 00:34:54.760 --> 00:34:58.260 operators and system operators to actually control 00:34:58.260 --> 00:35:01.059 the resources with the ultimate goal of being able 00:35:01.059 --> 00:35:04.949 to provide assurances to ERCOT that. Um we could actually 00:35:04.949 --> 00:35:08.860 build this into our resource adequacy metrics um which 00:35:08.869 --> 00:35:14.710 would help the commission as we um formalize reviews 00:35:14.719 --> 00:35:19.639 of these costs in rape cases, a consumer benefit tests 00:35:19.650 --> 00:35:23.420 to where look, we're gaining resiliency. We're gaining 00:35:23.429 --> 00:35:27.030 resource adequacy benefits from these interconnections 00:35:27.030 --> 00:35:30.849 and thus we can consider different levels of of cost 00:35:30.849 --> 00:35:34.070 and cost allocation. So I certainly see benefits from 00:35:34.070 --> 00:35:35.949 this project. I think we'll have a lot of insightful 00:35:35.949 --> 00:35:39.989 comments as a part of it. It will serve as a repository 00:35:40.000 --> 00:35:43.610 for questions that that I know I would like to ask 00:35:43.610 --> 00:35:47.659 of the utilities later next month um with a projected 00:35:47.659 --> 00:35:50.250 timeline of receiving those responses. So that theoretically 00:35:50.250 --> 00:35:53.199 we could take actions or the legislature could consider 00:35:53.210 --> 00:35:54.389 policy refinements. 00:35:56.889 --> 00:36:00.329 Good. You've been consistent and I think consistently 00:36:00.329 --> 00:36:03.170 correct on the fact that command and control and distributed 00:36:03.170 --> 00:36:07.400 resources is critical. Uh and I appreciate your reminder 00:36:07.400 --> 00:36:10.750 that as always reliability is paramount. This is all 00:36:11.530 --> 00:36:13.619 going towards our North star of reliability. 00:36:15.929 --> 00:36:18.039 Thank you. Commissioner Gladfelter and your leadership 00:36:18.039 --> 00:36:22.079 on this memo. I I agree with the goal that you've set 00:36:22.090 --> 00:36:24.829 forth. I think it's important to have consistency and 00:36:24.829 --> 00:36:28.099 uniformity in interconnection processes for distributed 00:36:28.099 --> 00:36:28.739 generation. 00:36:30.530 --> 00:36:33.389 I don't think that the best practice would be to set 00:36:33.389 --> 00:36:37.780 policy ad hoc in contested cases and and because of 00:36:37.780 --> 00:36:41.409 the the the juncture that we're in with the distribute 00:36:41.409 --> 00:36:43.949 generation and solar and all the, you know, factors 00:36:43.949 --> 00:36:46.699 we have at play. I think this is an appropriate time 00:36:46.699 --> 00:36:51.389 to start examining these issues proactively to um make 00:36:51.389 --> 00:36:54.349 sure we're not putting ourselves in a position where 00:36:54.349 --> 00:36:57.889 we're not reaping the opportunities and benefits of 00:36:57.889 --> 00:37:01.690 these resources and by having a uniform interconnection 00:37:01.690 --> 00:37:04.710 process um and working with the utilities and these 00:37:04.710 --> 00:37:07.750 resources, I think we would stand to benefit greatly 00:37:08.130 --> 00:37:10.860 Um, Commissioner Mcadams, I like your expansion into 00:37:10.860 --> 00:37:15.119 distributed energy resources. Um, as I I believe that 00:37:15.130 --> 00:37:18.090 um is, you know, we were having our phase one ERCOT 00:37:18.090 --> 00:37:20.940 reform discussions um, that was where I was coming 00:37:20.940 --> 00:37:24.199 from From to some degree with respect to including 00:37:24.199 --> 00:37:28.519 in that Phase one um set of items and actions that 00:37:28.519 --> 00:37:32.010 will be taking is the looking at aggregations and distributor 00:37:32.010 --> 00:37:36.320 resources um for virtual power plants. Um, I think 00:37:36.320 --> 00:37:39.380 it behooves us and it is a tremendous opportunity to 00:37:39.380 --> 00:37:42.900 examine the demand side of the equation and that's 00:37:42.900 --> 00:37:46.099 gonna take some work because even though a lot of work 00:37:46.099 --> 00:37:48.710 has been done at ERCOT there's still work to be done 00:37:48.869 --> 00:37:53.019 as Commissioner Glass flt noted and Commissioner Mcadams 00:37:53.019 --> 00:37:55.489 has been examining for the last several months. I think 00:37:55.500 --> 00:37:58.239 tremendous benefits could be garnered by co optimizing 00:37:58.239 --> 00:38:01.719 the distribution grid and the transmission grid. And 00:38:01.719 --> 00:38:04.389 that's gonna take um, collaboration with the utilities 00:38:04.400 --> 00:38:06.789 um, not only from an operational standpoint, but from 00:38:06.789 --> 00:38:10.710 a rape making standpoint. And um, I I look forward 00:38:10.710 --> 00:38:13.969 to to, you know, working with you all, um, at looking 00:38:13.969 --> 00:38:17.019 at these very important issues and um, thank you for 00:38:17.019 --> 00:38:20.849 your leadership on both of them. Thank you. I'm happy 00:38:20.849 --> 00:38:23.389 to include everything Commissioner Mcadams wants in 00:38:23.389 --> 00:38:25.949 there. Um, I think if if we look at this on a 00:38:25.949 --> 00:38:28.570 broad scope, we can probably kill two or three birds 00:38:28.570 --> 00:38:33.170 with one stone and have this distribution process in 00:38:33.170 --> 00:38:37.610 totality move forward and save staff and and the industry 00:38:37.619 --> 00:38:42.360 time effort and and US resources agreed. All right 00:38:42.360 --> 00:38:46.030 And of course, consistent guidance, sooner rather than 00:38:46.030 --> 00:38:49.530 later is always helpful to the investors and the corporations 00:38:49.530 --> 00:38:52.079 need to are the ones who are gonna make all this happen 00:38:54.920 --> 00:38:58.130 Mr. Claude Fielder, can you work with staff to amend 00:38:58.130 --> 00:39:01.469 your memo to be consistent with the discussion you've 00:39:01.469 --> 00:39:06.550 had and move forward with the project was in the framework 00:39:06.550 --> 00:39:08.449 that we've discussed up here. 00:39:10.019 --> 00:39:13.329 Alright. We don't need any formal action on that. We've 00:39:13.340 --> 00:39:17.699 got good direction. Yes, that's that's clear. We'll 00:39:17.699 --> 00:39:21.889 work with Commissioner got fealty on scoping this project 00:39:21.900 --> 00:39:27.500 and as as well as the where it fits best in the 00:39:27.500 --> 00:39:30.449 timeline for our ERCOT design plans and our rule makings 00:39:30.469 --> 00:39:32.750 and then bring that back to the commission as a whole 00:39:33.119 --> 00:39:40.429 Thank you. Thank you. Uh next item is 26. I don't think 00:39:40.440 --> 00:39:45.150 we have anything on that today. Not yet. Not today 00:39:45.519 --> 00:39:47.219 correct. I'm looking forward to it. 00:39:50.429 --> 00:39:52.289 Item 27 Please. Mr Journeay. (item:27) 00:39:54.130 --> 00:40:00.929 Item 27 is project 52845 Middle mile broadband for 00:40:00.929 --> 00:40:04.750 the commission as a a memo and proposal for adoption 00:40:04.760 --> 00:40:08.440 from commission staff That would adopt new rules 25 00:40:08.449 --> 00:40:12.409 288. Thank you sir smell. So you'd like to give 00:40:12.409 --> 00:40:16.119 us a quick layout and we can get to. Oh sure yeah 00:40:16.119 --> 00:40:19.750 I'll be brief. This is a exciting role. We don't work 00:40:19.750 --> 00:40:22.150 on this stuff very often but it's gonna allow electric 00:40:22.150 --> 00:40:26.619 utilities to lease out excess fiber capacity to I. 00:40:26.619 --> 00:40:29.949 S. P. S. To provide broadband service to unserved and 00:40:29.949 --> 00:40:32.489 underserved areas of the state. I think that since 00:40:32.489 --> 00:40:34.719 this current version of the commission has been here 00:40:34.719 --> 00:40:37.489 we've focus mostly on like looking backwards and how 00:40:37.489 --> 00:40:39.679 we can avoid things. So it's exciting to kind of work 00:40:39.679 --> 00:40:42.320 on something. We're providing a new service somewhere 00:40:42.320 --> 00:40:45.050 else, you know, not having good internet is rough and 00:40:45.050 --> 00:40:47.820 so it's it was satisfying to work on this. And this 00:40:47.820 --> 00:40:50.599 is also exciting project. It's the first project that 00:40:50.599 --> 00:40:53.130 was run by members of the rap division who are not 00:40:53.130 --> 00:40:55.400 me. So Mackin warmer. I did a great job with keith 00:40:55.400 --> 00:40:59.639 and shoney's help. So the band width of the division 00:40:59.639 --> 00:41:02.190 is growing, so that's good and I'm happy to answer 00:41:02.190 --> 00:41:06.110 any questions, thoughts, comments, this is an interesting 00:41:06.110 --> 00:41:10.380 one. This is uh we so rarely get to look at telecommunications 00:41:10.389 --> 00:41:14.639 at the public utility commission um and that's by design 00:41:14.789 --> 00:41:19.860 but the middle mile broadband, the aspects affirmed 00:41:19.869 --> 00:41:24.579 in the rule making the 25 3 standard, um we have an 00:41:24.579 --> 00:41:28.739 opportunity here really to uh to take a look at um 00:41:29.409 --> 00:41:33.139 communications adequacy on a regional basis and that's 00:41:33.139 --> 00:41:36.619 going to be significant in years to come. So uh I appreciate 00:41:36.619 --> 00:41:39.570 the direction of the rulemaking the parameters and 00:41:39.570 --> 00:41:43.739 components um encapsulated in it and I agree with it 00:41:44.710 --> 00:41:46.769 Thank you, David for your work. I think this is a very 00:41:46.769 --> 00:41:49.000 important role, especially for the rural communities 00:41:49.000 --> 00:41:52.289 in the state, as this will allow for more broadband 00:41:52.289 --> 00:41:55.110 expansion into those areas. And as we all discovered 00:41:55.110 --> 00:41:57.300 during the pandemic, how important it is to have access 00:41:57.300 --> 00:41:59.690 to broadband services for a variety of very important 00:41:59.690 --> 00:42:02.789 services out there. So, um I think this is a great 00:42:02.789 --> 00:42:05.309 step forward for our state, especially the rural communities 00:42:06.000 --> 00:42:09.289 throughout the, throughout our state. Mhm. I do have 00:42:09.289 --> 00:42:11.679 a question. I didn't see this in the rule, it might 00:42:11.679 --> 00:42:14.860 be in there, but uh do we get any reports back on 00:42:14.869 --> 00:42:20.570 any of these um any of the uh utilities that actually 00:42:20.570 --> 00:42:22.679 do lease this fiber. So we have an understanding of 00:42:22.690 --> 00:42:26.170 is this actually happening or have we created something 00:42:26.170 --> 00:42:30.769 here that is not gonna, it's sort of a odd regulatory 00:42:30.769 --> 00:42:33.360 regime relative to what we're used to, where we sort 00:42:33.360 --> 00:42:35.610 of are, you know, the reason why the commission has 00:42:35.610 --> 00:42:37.860 to be involved with these most acutely is because we 00:42:37.860 --> 00:42:39.579 need to make sure that electric ratepayers are held 00:42:39.579 --> 00:42:43.159 harmless, um, for from a cost perspective. And so we 00:42:43.159 --> 00:42:45.130 sort of pre approved the plan for that. And then on 00:42:45.130 --> 00:42:46.980 the back end we would see it in the context of a 00:42:46.980 --> 00:42:50.170 rape case where, um, where we would be making sure 00:42:50.170 --> 00:42:52.349 that all the expenditures were like necessary, but 00:42:52.360 --> 00:42:54.760 it's not built into where they need to report back 00:42:54.769 --> 00:42:57.199 But I'm sure that our good friends at the utilities 00:42:57.199 --> 00:43:00.000 would be happy to keep us surprised their successes 00:43:00.000 --> 00:43:01.769 in this space. And it's something that we can, we can 00:43:01.769 --> 00:43:04.610 follow up with. I wasn't, I wasn't talking about the 00:43:04.610 --> 00:43:06.510 monetary side because I do know that's in the right 00:43:06.510 --> 00:43:09.170 case. But really, I think what your last comment was 00:43:09.170 --> 00:43:12.130 was having utilities tell us, you know, if they're 00:43:12.139 --> 00:43:14.159 if they're helping connect a community, that's a good 00:43:14.159 --> 00:43:17.150 thing. Um, and that would be great for us to know. 00:43:17.280 --> 00:43:20.760 Yeah, we're aware that some of the utilities have been 00:43:20.760 --> 00:43:23.329 eagerly awaiting this rule. Some of them have contracts 00:43:23.329 --> 00:43:25.269 already sort of lined up where they're looking to get 00:43:25.269 --> 00:43:27.420 this moving. I'm sure they would love to come briefly 00:43:27.420 --> 00:43:29.840 on the successes. And and also, I mean, I also want 00:43:29.840 --> 00:43:31.179 to, I should have known certainly want to thank our 00:43:31.179 --> 00:43:33.090 friends at the broadband development office who are 00:43:33.090 --> 00:43:35.599 staff worked with their a new I guess a new partner 00:43:35.599 --> 00:43:38.090 agency in this effort and I will. I'm sure they'll 00:43:38.090 --> 00:43:41.880 have metrics and ways of describing the successes in 00:43:41.880 --> 00:43:46.150 this area as well. Yeah, good, good point. You mentioned 00:43:46.150 --> 00:43:49.690 the broadband new broadband office. That's one of the 00:43:49.690 --> 00:43:54.940 many results of the tremendous initiative the legislature 00:43:54.940 --> 00:43:57.750 and the governor have put behind expanding broad band 00:43:57.750 --> 00:44:00.349 to these communities. I know it was a key point last 00:44:00.349 --> 00:44:03.300 session. I'm sure I know it will continue to be a major 00:44:03.300 --> 00:44:07.340 effort. The legislature and the governor to help underserved 00:44:07.340 --> 00:44:11.300 unserved areas and get access to internet and good 00:44:11.300 --> 00:44:13.670 access and make sure all Texans have the ability to 00:44:13.670 --> 00:44:16.460 connect to broadband. I appreciate your work on this 00:44:16.789 --> 00:44:19.900 great job staff. I know this is a little out of the 00:44:19.900 --> 00:44:21.809 box but good work on a tight timeline. 00:44:23.750 --> 00:44:26.210 Is there a motion to approve the proposal for adoption 00:44:27.420 --> 00:44:32.599 2nd all in favor say aye unopposed. Thank you. Spencer 00:44:33.789 --> 00:44:42.869 I don't think we have anything on 29 through 36 Which 00:44:42.869 --> 00:44:44.940 brings us to item number 37. 00:44:46.590 --> 00:44:46.750 (item:37) Yeah, 00:44:49.190 --> 00:44:55.110 item 37 is project 53237. It's a request for proposals 00:44:55.110 --> 00:44:58.170 for consultant services related to the electric ERCOT 00:44:58.170 --> 00:45:02.400 design blueprints before you staff has filed a memo 00:45:02.400 --> 00:45:05.239 and proposed order to delegate authority to the executive 00:45:05.239 --> 00:45:09.030 director relating to a contract for consulting services 00:45:10.289 --> 00:45:15.760 Thank you, sir. Welcome jay. The laid out pretty straightforward 00:45:15.760 --> 00:45:19.000 delegation of authority. Any thoughts, comments, questions 00:45:19.000 --> 00:45:22.309 for staff or motion to approve the proposed order. 00:45:22.780 --> 00:45:25.590 I would just make one statement that um, you know, 00:45:25.590 --> 00:45:27.869 I would ask that thomas work with agency legal counsel 00:45:27.869 --> 00:45:31.329 to ensure that um the review of the bits and missions 00:45:31.340 --> 00:45:34.119 adhere strictly adhere to the state procurement laws 00:45:34.119 --> 00:45:36.969 and RFP requirements as he reviews the bid submissions 00:45:36.980 --> 00:45:40.050 in this that have been submitted responses. RFP Commissioner 00:45:40.050 --> 00:45:42.789 Cobos we've already been discussion with our agency 00:45:42.789 --> 00:45:44.610 counsel about those matters. 00:45:46.309 --> 00:45:49.920 It's important to note when we'll remember sp 20 several 00:45:49.920 --> 00:45:54.510 sessions ago and um the full faith will adhere to the 00:45:54.510 --> 00:45:59.829 state procurement laws. The process rigorously questions 00:45:59.840 --> 00:46:02.170 comments, I look forward to working with whoever you 00:46:02.170 --> 00:46:02.500 pick. 00:46:05.679 --> 00:46:07.969 Alright, is there a motion to approve the proposed 00:46:07.969 --> 00:46:13.489 order? So moved 2nd 2nd. All in favor say aye, unopposed 00:46:13.489 --> 00:46:14.409 Motion passes 00:46:16.179 --> 00:46:21.900 item 38 please, sir, (item:38) 38 is project number 53380. It's 00:46:21.900 --> 00:46:25.190 the review of chapter 28 rules that are applicable 00:46:25.190 --> 00:46:28.480 to cable and video service providers. Commission staff 00:46:28.480 --> 00:46:32.469 has a memo and a proposal for publication. All right 00:46:32.469 --> 00:46:35.349 Mr smelters, joining us again and he thoughts, comments 00:46:35.360 --> 00:46:37.980 questions. I think we've got enough on our plate before 00:46:37.980 --> 00:46:40.800 changing things that are well established in this world 00:46:40.800 --> 00:46:44.599 right now. So I agree with it as I did the last 00:46:47.179 --> 00:46:47.989 good job sponsor. 00:46:49.699 --> 00:46:53.000 Is there a motion to approve the proposal for publications 00:46:54.179 --> 00:46:57.719 all in favor, say, aye, aye, unopposed. Motion passes 00:46:58.679 --> 00:47:02.000 Item 39 believe we have an update from our executive 00:47:02.000 --> 00:47:04.900 director. Thank you. (item:39) Mr Chairman Commissioners. Good 00:47:04.900 --> 00:47:08.050 morning. Just a few staffing updates this morning. 00:47:08.059 --> 00:47:11.670 So first a little more turnover in our legal division 00:47:11.670 --> 00:47:14.880 Rustin is leaving us, I believe today may be his last 00:47:14.880 --> 00:47:19.030 day. I want to thank him for for all the work, maybe 00:47:20.980 --> 00:47:24.969 it is his last day. Um So um we will, we will 00:47:24.980 --> 00:47:28.030 uh more than anything, you know, amazing amount of 00:47:28.030 --> 00:47:31.300 work. He's a he's a long tenured lawyer in our legal 00:47:31.300 --> 00:47:33.820 division. I personally, more than anything will miss 00:47:33.820 --> 00:47:38.730 his facial hair, his mustache is phenomenal. Um and 00:47:38.730 --> 00:47:42.460 it's a you know, very daring and so we appreciate that 00:47:42.469 --> 00:47:47.750 forward leaning facial hair game that he has um in 00:47:47.750 --> 00:47:50.539 our legal division as well, you know, with Rachel leaving 00:47:50.980 --> 00:47:54.679 uh Connie and I asked keith Rojas to move over and 00:47:54.679 --> 00:47:57.019 become director of legal and he accepted that and we 00:47:57.019 --> 00:48:00.070 are grateful for that. He brings over 30 years experience 00:48:00.070 --> 00:48:02.679 at this commission, including I think about 10 in the 00:48:02.679 --> 00:48:06.199 legal division um as deputy director when Tom Hunter 00:48:06.199 --> 00:48:10.519 was the Director of legal, so that subject matter expertise 00:48:10.519 --> 00:48:13.760 and legal expertise will be a great asset in the legal 00:48:13.760 --> 00:48:17.210 division going forward and with that move we have a 00:48:17.210 --> 00:48:20.039 vacancy and the Director of Infrastructure, so we have 00:48:20.039 --> 00:48:22.630 promoted Therese Harris who has been in that division 00:48:22.630 --> 00:48:25.789 for a long time into keith's job. His whole job is 00:48:25.789 --> 00:48:29.860 director of infrastructure. Finally, just of note, 00:48:29.869 --> 00:48:33.179 we will be transitioning Rebecca's Arwa's from her 00:48:33.179 --> 00:48:38.170 role as director of ERCOT analysis into a more projects-related 00:48:38.170 --> 00:48:41.760 special projects role similar to what tom provides 00:48:41.760 --> 00:48:43.820 Connie and I on the legal side she'll be providing 00:48:43.820 --> 00:48:46.849 to us on the policy side. So those will be effective 00:48:46.860 --> 00:48:51.219 April one. Thank you for the update keith Terese, thank 00:48:51.219 --> 00:48:55.449 you for stepping up um and Rebecca grateful to have 00:48:55.449 --> 00:48:59.590 you and then we'll miss you and the mustache. I'm gonna 00:48:59.590 --> 00:49:02.179 miss Rustin because I could tell by his facial expressions 00:49:02.179 --> 00:49:06.519 He agreed with me on many things. The mustache really 00:49:06.519 --> 00:49:09.840 kills the poker face. It does. You gotta grow a full 00:49:09.840 --> 00:49:10.159 beard. 00:49:11.969 --> 00:49:16.599 Yeah. Alright. Um Thank you thomas, We don't have anything 00:49:16.599 --> 00:49:22.980 on 40 or 41 which brings us to closed session. So having 00:49:22.980 --> 00:49:25.280 convened an unduly unnoticed open meeting, the commission 00:49:25.280 --> 00:49:28.809 will now it's 10 22 am on March 31st 2020 to hold 00:49:28.809 --> 00:49:31.960 a closed session, pursuant to chapter 551 of the texas 00:49:31.960 --> 00:49:38.590 government code section 551.71551 point 074 and 551.7 00:49:38.869 --> 00:49:40.989 six. We'll be back in a bit 00:49:56.469 --> 00:49:59.969 closed session is hereby concluded at 10:50 a.m. On 00:49:59.969 --> 00:50:02.510 March 31st 2022. The commission will resume its public 00:50:02.510 --> 00:50:07.179 meeting. Uh no formal action will be taken as a result 00:50:07.190 --> 00:50:10.400 of the closed session, so having no further business 00:50:10.400 --> 00:50:11.800 to come before the commission. This meeting of the 00:50:11.800 --> 00:50:14.400 Public Utility Commission of texas is hereby adjourned 00:50:16.070 --> 00:50:16.579 All right.