WEBVTT 00:00:02.890 --> 00:00:05.469 - Good morning, this meeting of the Public Utility Commission 00:00:05.469 --> 00:00:07.349 of Texas, will come to order to consider matters that have 00:00:07.349 --> 00:00:09.330 been duly posted with the Secretary of State of Texas, 00:00:09.330 --> 00:00:13.720 for November 30, 2022. For the record, my name is Peter 00:00:13.720 --> 00:00:16.660 Lake, and today I'm joined by Will McAdams, Lori Cobos, 00:00:16.660 --> 00:00:20.109 Jimmy, Glotfelty and Kathleen Jackson. Mr. Journeay, 00:00:20.109 --> 00:00:23.440 could you please walk us through the consent items 00:00:23.449 --> 00:00:27.120 on today's agenda? Good morning Commissioners, by individual 00:00:27.120 --> 00:00:29.420 ballot, the following items were placed on your consent 00:00:29.420 --> 00:00:33.409 agenda 3, 10 and 14. Thank you sir. Do we have a 00:00:33.409 --> 00:00:37.200 motion to approve the items just described by Mr. Journeay? So moved. Second. 00:00:37.200 --> 00:00:41.200 All in favor say aye. Aye. None opposed, motion passes. At this 00:00:41.200 --> 00:00:44.539 point we'll move to the public comment portion of our 00:00:44.539 --> 00:00:46.659 agenda. Oral comments related to a specific agenda 00:00:46.659 --> 00:00:49.570 item will be heard when that item is taken up. This 00:00:49.579 --> 00:00:52.469 segment is for general comments only. When we do get 00:00:52.469 --> 00:00:54.759 to oral comments on specific items, stakeholders should 00:00:54.759 --> 00:00:56.990 not approach the table unless oral argument has been 00:00:56.990 --> 00:00:59.070 granted or they have been invited by a Commissioner. 00:00:59.079 --> 00:01:01.490 As always speakers will be limited to three minutes 00:01:01.500 --> 00:01:04.849 each. Mr. Journeay, we have anyone from the public signed up 00:01:04.849 --> 00:01:08.170 to speak? No sir, no one signed up this morning. Thank 00:01:08.170 --> 00:01:12.730 you sir. Public comment is now closed. Next item on 00:01:12.730 --> 00:01:17.829 our agenda please sir. (item:2:54272) Item 2 is docket 54272, 00:01:17.829 --> 00:01:20.480 it's a petition for an order appointing a temporary manager 00:01:20.489 --> 00:01:24.750 for L and T Waterworks. Commission Staff filed a petition 00:01:24.750 --> 00:01:27.829 to appoint Monarch Utilities as temporary manager. Uh, 00:01:27.840 --> 00:01:29.230 of this system. 00:01:30.909 --> 00:01:33.359 Thank you sir. At this point, I believe we need to recess 00:01:33.359 --> 00:01:38.329 this meeting of the PUC, and uh, start a separate hearing 00:01:38.340 --> 00:01:41.659 on this item. So we'll give the reporter and admin a moment 00:01:41.659 --> 00:01:42.459 to set up. 00:01:44.769 --> 00:01:48.640 That was a very efficient moment. Alright, so at this 00:01:48.640 --> 00:01:52.769 point we're recessed from the original PUC meeting. 00:01:52.769 --> 00:01:55.189 And a new meeting of the Public Utility Commission of 00:01:55.189 --> 00:01:57.890 Texas, will come to order for the merits. (item:2:54272 - Hearing on the Merits) Hearing in 00:01:57.890 --> 00:02:00.640 docket 54272, which has been duly posted with the 00:02:00.640 --> 00:02:02.939 Secretary of State of Texas, for November 30, 2022. 00:02:03.040 --> 00:02:05.549 We'll turn it over to our Commission ALJ for administration 00:02:05.560 --> 00:02:08.509 of the hearing. Good morning Commissioners. I call 00:02:08.509 --> 00:02:12.509 to order docket number 54272. Which is Commission Staff's 00:02:12.509 --> 00:02:14.909 petition for an order appointing a temporary manager 00:02:14.909 --> 00:02:18.199 for L and T Waterworks. This is Katie Marks, I am 00:02:18.199 --> 00:02:20.750 assisting the Commissioner's this morning. And the purpose 00:02:20.750 --> 00:02:22.759 of this hearing is to determine whether a temporary 00:02:22.759 --> 00:02:26.310 manager should be appointed. We had a pre-hearing conference 00:02:26.310 --> 00:02:29.629 yesterday, and I admitted four exhibits. Exhibit 1, 00:02:29.770 --> 00:02:32.280 which is a copy of the petition and all attachments. 00:02:32.289 --> 00:02:35.860 Exhibit 2, the affidavit of Rose Ramirez and all attachments. 00:02:35.860 --> 00:02:38.629 Exhibit 3, a copy of the notice of hearing. And 00:02:38.629 --> 00:02:41.409 exhibit 4, which is a copy of the divorce decree 00:02:41.419 --> 00:02:45.370 of Curtis Logan and Regina Logan. At this time we'll 00:02:45.370 --> 00:02:47.280 take appearances of the party starting with Commission 00:02:47.280 --> 00:02:51.560 Staff. Jenna Keller for Commission Staff. Cody Faulk 00:02:51.569 --> 00:02:54.789 on behalf of Monarch Utilities 1LP, now known as 00:02:54.800 --> 00:02:57.990 Texas Water Utilities LP. Okay, have either of y'all 00:02:57.990 --> 00:03:00.740 heard anything from the Utility or a representative 00:03:00.750 --> 00:03:05.400 of the Utility? Staff has not. We've had conversations 00:03:05.409 --> 00:03:08.080 as part of the closing of the transaction, but other 00:03:08.080 --> 00:03:10.909 than that no other conversations have occurred. Okay. 00:03:10.919 --> 00:03:14.210 Um, we'll start with opening statements beginning with 00:03:14.210 --> 00:03:19.199 staff, if any? None your honor. We have none. Okay. Yesterday 00:03:19.199 --> 00:03:21.340 we did not swear in any witnesses. Do either of you 00:03:21.340 --> 00:03:26.099 have witnesses for this morning? Staff does not. The 00:03:26.099 --> 00:03:29.360 company does not, but Brian Barr, head of regulatory 00:03:29.360 --> 00:03:31.360 for the company is available, should the Commissioners 00:03:31.360 --> 00:03:34.680 have any questions? Okay. Commissioners, do you have any questions? 00:03:38.789 --> 00:03:41.909 Commission staff, any closing statements? No, your honor. 00:03:43.360 --> 00:03:45.509 No your honor. All right. We are adjourned, thank you. 00:03:46.330 --> 00:03:50.169 - Thank you all. (item:2:Reconvene Public meeting) The merits hearing on docket 54272 is 00:03:50.169 --> 00:03:55.159 hereby adjourned at 9:37 am. Thank ya'll. Thank you. We 00:03:55.159 --> 00:03:57.419 will now reconvene the open meeting of the Public Utility 00:03:57.419 --> 00:04:04.599 Commission at 9:38am. Resuming with item 10, docket 00:04:04.650 --> 00:04:05.919 54044. Item 2, sir. Sorry. 00:04:09.500 --> 00:04:10.509 - Alright, thoughts? 00:04:12.099 --> 00:04:16.360 Comments? Just from my perspective, I'd like to recognize that 00:04:17.370 --> 00:04:21.360 uh and, acknowledge Mr. Logan no longer owns L and T Waterworks. 00:04:21.370 --> 00:04:25.180 As stated in the divorce decree, Ms. Logan was awarded 00:04:25.180 --> 00:04:27.310 the business and the divorce decree as her sole and 00:04:27.310 --> 00:04:31.329 separate property. So, in my view we should continue 00:04:31.329 --> 00:04:35.970 to move forward with Staff's request. Uh, to consider 00:04:35.970 --> 00:04:39.740 appointing a temporary manager. Yeah, name change is important. 00:04:39.740 --> 00:04:40.579 Thank you for highlighting that. Uh, yes sir, and divorce decrees. 00:04:42.149 --> 00:04:45.769 Um, and with that said I uh, would move to approve the petition 00:04:45.769 --> 00:04:49.439 for an order appointing Texas Water Utilities, LLC, 00:04:49.439 --> 00:04:53.009 as temporary manager of Curtis D. Logan, DBA L and 00:04:53.009 --> 00:04:56.449 T Waterworks, LLC. An indefinite basis, because the 00:04:56.449 --> 00:04:58.759 Utility abandoned operations for the reasons cited in 00:04:58.759 --> 00:05:01.519 the petition. Set the temporary manager compensation 00:05:01.519 --> 00:05:04.480 at $15 per connection per month. Waive the requirement 00:05:04.480 --> 00:05:07.009 regarding the temporary manager's duty to post financial 00:05:07.019 --> 00:05:10.259 assurance, as recommended by Commission Staff. And direct 00:05:10.269 --> 00:05:14.060 OPDM, to draft an order consistent um, with previous Commission 00:05:14.060 --> 00:05:18.339 orders. All right. Chairman. Yes ma'am. Can I interrupt really quickly? I 00:05:18.339 --> 00:05:22.399 have a quick request regarding the final order. Monarch's 00:05:22.399 --> 00:05:26.060 application for a name change was just approved in 00:05:26.060 --> 00:05:31.939 docket number 53636. So, Texas Water Utilities LP, is 00:05:31.939 --> 00:05:34.680 the correct name for the temporary manager, as opposed 00:05:34.680 --> 00:05:37.079 to Monarch. And that should be reflected in the final 00:05:37.089 --> 00:05:38.689 order. Okay, are you? 00:05:41.689 --> 00:05:45.329 Yes. As a matter of fact I. That was her motion. Okay. I did say Texas Water Utilities. Oh, 00:05:45.490 --> 00:05:48.870 great. Yeah. Alright. Thank you for the clarification. Thank you though. 00:05:50.399 --> 00:05:54.379 - Alright, we have a motion, do we have a second? Second. Motion is Second. 00:05:54.379 --> 00:05:57.620 All in favor say aye. Aye. None opposed, the motion passes. 00:05:59.250 --> 00:06:00.209 Next item, please sir. 00:06:05.050 --> 00:06:08.920 - (item:9:52952) Uh, I believe the next item sir is item 9, project 00:06:08.920 --> 00:06:13.629 52952. The year end 2021 Electric Utility Earnings 00:06:13.629 --> 00:06:16.069 Report. Commission Staff filed a memo discussing 00:06:16.069 --> 00:06:20.329 the Utilities Earnings Reports. Thank you sir. I appreciate 00:06:20.329 --> 00:06:24.860 the Staff's work on this. Um, I'm satisfied with the 00:06:24.870 --> 00:06:29.410 recommendation they've laid out. Uh, but of course, happy 00:06:29.410 --> 00:06:33.569 to hear thoughts and comments. As am I, I have no nothing 00:06:33.569 --> 00:06:36.839 to add on it. Same. I was just gonna say, we'll keep a good 00:06:36.839 --> 00:06:41.550 eye on it. There's a reason for this, and uh, and we gotta 00:06:41.560 --> 00:06:44.199 keep protecting the consumer. So it's a good, uh it's 00:06:44.199 --> 00:06:46.920 a good report. But we'll keep an eye and make sure folks 00:06:46.920 --> 00:06:52.399 don't over earn. Uh, as always, and I think those those 00:06:52.410 --> 00:06:56.819 referenced in recent memory. Reports have been proactive 00:06:56.819 --> 00:07:00.360 and been coming forward, and hope that trend continues. Right. 00:07:01.069 --> 00:07:04.300 - All right. I don't think we don't have any formal action 00:07:04.300 --> 00:07:09.160 on this item. So we'll move on to the next time. Item 00:07:09.160 --> 00:07:11.329 was consented. I don't have anything on 11. I believe 00:07:11.329 --> 00:07:16.459 the next one's 12, sir. All right. (item:12:53403 - Chapter 25.101 Transmission rule making) Item 12, this project 53403 00:07:16.459 --> 00:07:19.029 is the review of Chapter uh, 25. 00:07:22.019 --> 00:07:28.480 Review of chapter 25, 101. Um, okay. Yup, this is a. There's a proposal by the Commission 00:07:28.480 --> 00:07:32.160 Staff, filed a memo on proposal for adopting amendments to 25.101. 00:07:32.170 --> 00:07:35.319 - Yeah, there's there's a, bit more meat on that bone. 00:07:35.329 --> 00:07:41.600 - Uh, Mr. Smeltzer. Um, appreciate you being available. Do 00:07:41.600 --> 00:07:43.629 you have anything you want to lay out, before we begin 00:07:43.629 --> 00:07:47.589 our discussion? Sure. This uh, there are three primary 00:07:47.589 --> 00:07:50.560 objectives to this rulemaking. Um, the first and foremost 00:07:50.560 --> 00:07:54.300 is the swift implementation of SB1281. Which has a 00:07:54.300 --> 00:07:57.899 few components that adopts a new uh, congestion based 00:07:57.899 --> 00:08:00.240 test for the approval of economic transmission lines. 00:08:00.250 --> 00:08:03.319 Um, it tightens the requirements that ERCOT has to consider 00:08:03.319 --> 00:08:06.980 with regard to its load forecasts for uh, transmission 00:08:06.980 --> 00:08:11.589 planning. And it uh, adopts a new may be potentially first 00:08:11.589 --> 00:08:14.870 of its kind, resiliency criteria that will serve as 00:08:14.870 --> 00:08:17.360 a plus factor for the approval of transmission lines. 00:08:17.370 --> 00:08:20.899 Um and to provide clarity, because there was I think confusion 00:08:20.899 --> 00:08:24.990 about this. Uh, it is not a third path for the approval 00:08:24.990 --> 00:08:27.889 of transmission lines, but if it allows for some additional 00:08:27.889 --> 00:08:30.649 considerations for economic and reliability projects. 00:08:30.660 --> 00:08:34.570 Should they meet certain pre-identified resiliency 00:08:34.580 --> 00:08:37.889 um, issues by ERCOT. The second objective, um yeah, so the 00:08:37.889 --> 00:08:40.379 resiliency is the second objective. Of making the third 00:08:40.379 --> 00:08:44.519 is the implementation of HB1510. Which just uh, clarified 00:08:44.529 --> 00:08:47.659 the status of um, certain CCN requirements for non-ERCOT 00:08:47.659 --> 00:08:50.129 utilities. I'm available for any questions that you 00:08:50.129 --> 00:08:52.519 may have. Thank you sir. 00:08:54.100 --> 00:08:59.259 Thoughts, comments? Questions for Mr. Smeltzer? I'm happy to go 00:08:59.259 --> 00:09:02.830 first here on this. First of all, um, I know this wasn't uh, 00:09:02.840 --> 00:09:06.240 as timely implementation as the Legislature had wanted 00:09:06.240 --> 00:09:08.600 us to have. But uh, I gotta tell you, we've done it. 00:09:08.610 --> 00:09:12.210 Our Staff has done a great job on it. And um. We've 00:09:12.220 --> 00:09:14.299 had a lot going on in the meantime. We've had a lot 00:09:14.299 --> 00:09:18.120 going on. And um, while this is an important issue, it's 00:09:18.129 --> 00:09:20.580 it's as important as the other ones that are being 00:09:20.580 --> 00:09:24.580 discussed. So, um I thank the Staff and and, the industry. 00:09:24.590 --> 00:09:27.669 Um but you know, the Staff for putting the time and 00:09:27.669 --> 00:09:32.059 effort into uh, this first step. And and and, it is a 00:09:32.059 --> 00:09:34.250 first step, but it's a really, really important first 00:09:34.250 --> 00:09:37.330 step. Because, it solves a lot of the issues that industry 00:09:37.330 --> 00:09:40.419 brings up as problems on our transmission system. So 00:09:40.429 --> 00:09:45.169 um, I think uh, the fact that um, some of the longer 00:09:45.169 --> 00:09:49.340 term implementation by, by uh implementing an economic 00:09:49.340 --> 00:09:55.700 test is is really a solid foundation. Um, the uh, the 00:09:55.710 --> 00:10:01.269 longer term horizon, um for a test. Yeah, I'm hopeful that uh, 00:10:01.279 --> 00:10:04.970 ERCOT can create one fairly quickly. Um, and you 00:10:04.970 --> 00:10:06.940 will have something that creates certainty for the 00:10:06.940 --> 00:10:11.409 industry going forward. Um, the one thing that uh, that 00:10:11.409 --> 00:10:14.529 I hope on this and we've had discussions with ERCOT. 00:10:14.539 --> 00:10:16.720 I hope I'm speaking for all the Commissioners, and that 00:10:16.720 --> 00:10:21.179 is the modeling efforts, um uh, to determine economic 00:10:21.179 --> 00:10:24.309 projects should begin immediately. Um, and that is, 00:10:24.309 --> 00:10:27.980 we need to have these identified and begin a process. 00:10:27.990 --> 00:10:30.029 They've uh, there have been years that we haven't gone 00:10:30.029 --> 00:10:32.769 by. That have gone by where we haven't been able to 00:10:32.769 --> 00:10:35.500 identify these projects. There may be a backlog 00:10:35.500 --> 00:10:38.009 of some, there may not. I mean, I wouldn't tell the 00:10:38.009 --> 00:10:40.710 industry, I would tell the industry that I wouldn't 00:10:40.710 --> 00:10:43.679 expect a list of 25 or 30 projects. But we'll see what 00:10:43.679 --> 00:10:47.669 we get and the most important projects. Um, you know 00:10:47.669 --> 00:10:50.789 we'll move to the front line for discussion. And um, 00:10:50.799 --> 00:10:52.909 and that's what we want, that's what the Legislature 00:10:52.909 --> 00:10:54.649 wants and hopefully that's what we're implementing 00:10:54.649 --> 00:10:57.700 here. So I believe that's what we're implementing here. 00:10:58.370 --> 00:11:02.620 I know some believe that um, uh, over building of transmission 00:11:02.629 --> 00:11:05.409 uh, could come from this rule and other transmission 00:11:05.409 --> 00:11:07.799 efforts that will be working on, you know, here in 00:11:07.799 --> 00:11:10.899 the future. Um, I don't believe that such thing is 00:11:10.899 --> 00:11:13.169 gonna happen. It's incumbent upon us to be prudent 00:11:13.179 --> 00:11:17.080 with the projects that we review. But um, I also think 00:11:17.080 --> 00:11:21.460 that um, around the country and perhaps around the globe. 00:11:21.470 --> 00:11:25.210 Um, we aren't uh, we have an overbuilt transmission. Um 00:11:25.220 --> 00:11:27.850 it's been utilized in the future. We have congestion 00:11:27.850 --> 00:11:30.019 today, which means that we've under built transmission 00:11:30.019 --> 00:11:33.590 over the years. So, um, but front loading transmission 00:11:33.590 --> 00:11:36.190 gold plating, it is not what we intend to do. But we 00:11:36.190 --> 00:11:40.639 want to be proactive and have a long, uh uh, horizon for 00:11:40.639 --> 00:11:43.919 which we're looking, uh for the, for the industry of 00:11:43.919 --> 00:11:46.600 Texas. For the economic development of Texas, and for 00:11:46.600 --> 00:11:49.250 the people of Texas. Um, 00:11:51.519 --> 00:11:55.250 what else? Um, the resiliency plus factor, I think 00:11:55.250 --> 00:11:59.610 is a fantastic um, interim step. Obviously, Commissioner 00:11:59.610 --> 00:12:02.529 Cobos and I have had discussions about resiliency. 00:12:02.539 --> 00:12:05.970 Um, we're gonna continue to do more to talk about that 00:12:05.970 --> 00:12:08.669 here in a little bit. But I think the plus factor is 00:12:08.669 --> 00:12:11.830 an important interim step. Um, that I applaud the Staff 00:12:11.830 --> 00:12:14.409 for, for coming up with that and for for utilizing 00:12:14.409 --> 00:12:18.830 that. Um, we all have to be cognizant of resiliency, 00:12:18.840 --> 00:12:24.029 resilient. A resiliency plus factor. Um, you know, 00:12:24.029 --> 00:12:26.820 these lines are, could be some of the most important 00:12:26.820 --> 00:12:29.600 lines that get built. They will always have a reliability 00:12:29.610 --> 00:12:33.500 component, um, but resiliency as we define it in the 00:12:33.500 --> 00:12:35.659 future will help us bring the system up quicker in 00:12:35.659 --> 00:12:38.600 the event of a major, you know, weather outage or a 00:12:38.600 --> 00:12:42.509 major event. Um, and I think the plus factor is a great 00:12:42.509 --> 00:12:46.500 interim step in in that regard. Um, I look forward 00:12:46.500 --> 00:12:50.129 to talking with Commissioner Cobos about the uh, uh the cost 00:12:50.129 --> 00:12:54.250 benefit, um, timelines. Um, in here, I know she had 00:12:54.250 --> 00:12:58.850 some some issues on the uh, the time horizon by which 00:12:58.850 --> 00:13:01.419 we determine costs for this economic transmission. 00:13:01.649 --> 00:13:04.580 Um, I agree that we uh, have to do more than the first 00:13:04.580 --> 00:13:07.679 year. Uh, we have to get a better uh, understanding. First 00:13:07.679 --> 00:13:10.669 year is always the highest cost. Uh, so if we can average 00:13:10.669 --> 00:13:13.440 that over a certain number of years, which hopefully 00:13:13.440 --> 00:13:15.110 we can agree on. I know there's an issue of whether 00:13:15.110 --> 00:13:18.220 we define it here or we leave it in ERCOT protocols. 00:13:18.230 --> 00:13:22.379 But um, I'm ready for that debate. And, and I know that 00:13:22.379 --> 00:13:26.480 as long as we move past one, we're better off uh, in the 00:13:26.480 --> 00:13:31.110 future than we are today. Um, I also would say that 00:13:31.120 --> 00:13:33.710 um, you know, a lot of the things that um, are a 00:13:33.710 --> 00:13:36.129 handful of the things that are being discussed in here. 00:13:36.139 --> 00:13:39.870 Um, were highlighted in the Brattle Report in 2013. 00:13:39.879 --> 00:13:43.460 On ways to enhance transmission planning and we'll 00:13:43.460 --> 00:13:47.779 take other things in that regard, um, as we look at 00:13:47.779 --> 00:13:51.529 transmission going forward. But um, I believe that uh, this 00:13:51.529 --> 00:13:56.080 is a really strong first step. And um, I'm eager to 00:13:56.080 --> 00:13:58.970 see what comes out of this. Again we're, we're looking 00:13:58.970 --> 00:14:01.820 at transmission planning and transmission congestion 00:14:01.830 --> 00:14:04.500 through a lens of having not done any of these for 00:14:04.500 --> 00:14:07.490 a long time. So once we begin to look at that, we'll 00:14:07.490 --> 00:14:11.600 be able to see what comes out. And take the next proactive 00:14:11.600 --> 00:14:14.480 steps in solving the next set of problems. But we'll 00:14:14.480 --> 00:14:18.700 identify these with this rule um, and have a long term 00:14:18.710 --> 00:14:22.299 process in place for this. And uh, that's really a great 00:14:22.299 --> 00:14:26.590 step for Texas in my opinion. Thank You. Well put, iterated and improve. 00:14:29.399 --> 00:14:32.539 - Yeah, sure. Thank you, Commissioner Glotfelty, for your 00:14:32.549 --> 00:14:35.860 feedback. Um, I agree with everything you said. Um, I 00:14:35.860 --> 00:14:37.830 think it's, you know, I want to thank David Smeltzer 00:14:37.830 --> 00:14:40.659 and Rama for their work on this rule. Um, it's very 00:14:40.659 --> 00:14:43.639 important uh, legislation that we have to implement. And 00:14:43.649 --> 00:14:48.000 uh, a lot of very important pieces in there, with respect 00:14:48.000 --> 00:14:51.279 to economic criteria, reliability criteria and resiliency. 00:14:51.289 --> 00:14:54.870 Um and, I do appreciate the Staff working to address 00:14:54.870 --> 00:14:58.559 the many issues that we had, um, addressed in the prior 00:14:58.559 --> 00:15:01.000 iteration of the rule. So thank you for that. Dave 00:15:01.000 --> 00:15:05.360 and Rama, and um, everybody else involved. Um, as Commissioner 00:15:05.360 --> 00:15:09.929 Glotfelty referenced, um I, there's the uh, on page 47 00:15:09.929 --> 00:15:15.769 of the rules, subsection A. There is a reference to um, 00:15:15.779 --> 00:15:18.759 where the new congestion cost savings test is discussed, 00:15:18.769 --> 00:15:22.940 as back for background purposes. When this rule is adopted 00:15:22.940 --> 00:15:26.549 if we adopt this role, the um, ERCOT will be using the 00:15:26.559 --> 00:15:29.929 generator revenue reduction test and the production 00:15:29.929 --> 00:15:32.990 cost savings test. In the interim while ERCOT develops 00:15:33.000 --> 00:15:37.440 a long term, uh, congestion cost savings test. And so, 00:15:37.440 --> 00:15:39.889 the rule spells out that the congestion cost savings 00:15:39.889 --> 00:15:43.059 test must include: analysis of whether the levelized 00:15:43.070 --> 00:15:45.820 ERCOT wide annual congestion cost savings attributable 00:15:45.820 --> 00:15:48.360 to the proposed project are equal to or greater than 00:15:48.360 --> 00:15:51.990 the average of the first three years annual revenue 00:15:51.990 --> 00:15:55.179 requirement of the proposed project. And so I, I appreciate 00:15:55.179 --> 00:15:58.639 Staff putting an average cost in there three years. 00:15:58.639 --> 00:16:00.970 And I'm not necessarily opposed to the average of three 00:16:00.970 --> 00:16:05.059 years. Um, the only um, I guess point of discussion I 00:16:05.059 --> 00:16:07.950 wanted to have was, you know, whether we wanted to put 00:16:07.960 --> 00:16:10.830 the average three years of annual revenue requirement 00:16:10.840 --> 00:16:14.929 in the rule. Um, or would we want to, um, have ERCOT 00:16:14.929 --> 00:16:19.309 put an average annual revenue requirement cost. Um, in 00:16:19.309 --> 00:16:21.490 the protocol that develops the new congestion cost 00:16:21.490 --> 00:16:24.399 savings test. So that we have flexibility in the future 00:16:24.399 --> 00:16:27.389 without having to open the rule through and modifying 00:16:27.389 --> 00:16:31.159 the protocol to adjust that average annual revenue 00:16:31.159 --> 00:16:35.139 requirement. Um, in the future and that way, ERCOT can 00:16:35.149 --> 00:16:39.820 um, you know, develop the test and put in that average 00:16:39.830 --> 00:16:41.860 annual revenue requirement over there. And if we decide 00:16:41.860 --> 00:16:44.289 to move the dial up or back. Then they can just do 00:16:44.289 --> 00:16:45.840 that through protocol change rather than us having 00:16:45.840 --> 00:16:49.039 to open up the rule. Uh I mean, I think your sentiment 00:16:49.039 --> 00:16:51.519 towards optionality is good. But I know, I think, I 00:16:51.519 --> 00:16:55.730 think the Staff captures that, by starting out at the 00:16:55.730 --> 00:17:00.399 first step, like Jimmy said. Like this first step is 00:17:00.409 --> 00:17:04.039 an old existing framework, that everybody's familiar 00:17:04.039 --> 00:17:06.799 with. And then as we move to the next step we can 00:17:06.799 --> 00:17:09.500 answer the questions that you just, you just articulated. 00:17:09.509 --> 00:17:14.829 Uh, but I think for, for this for today and this, this 00:17:14.829 --> 00:17:17.309 version of this rule. I think it's probably a good 00:17:17.309 --> 00:17:20.279 start to go with the old framework that everybody's 00:17:20.289 --> 00:17:22.519 familiar and comfortable with. Well, right, And, and 00:17:22.519 --> 00:17:26.559 that's I agree with that. And, and so the new congestion 00:17:26.559 --> 00:17:30.009 cost savings test hasn't been developed. Right. And, and so 00:17:30.009 --> 00:17:32.720 that will and so ERCOT will be developing that, you 00:17:32.720 --> 00:17:35.640 know, through the protocol process. And so what, what 00:17:35.640 --> 00:17:38.220 the direction and this rule is, is just some direction 00:17:38.220 --> 00:17:41.430 to them as they build that test out, out there. So we're 00:17:41.430 --> 00:17:44.500 we're gonna work on the GR. We're gonna use the GR test. 00:17:44.500 --> 00:17:46.529 The production cost savings test right now in the interim 00:17:46.529 --> 00:17:49.670 as you described. But as we're building, as ERCOT is 00:17:49.670 --> 00:17:52.680 building the new test, does it make sense to go ahead 00:17:52.680 --> 00:17:55.470 and put that three year average in the rule? Because, 00:17:55.470 --> 00:17:58.880 if ultimately they build a test out at ERCOT. Um, and 00:17:58.880 --> 00:18:01.470 they decide that well maybe we should after getting 00:18:01.470 --> 00:18:03.730 more data and they go through the, you know, stakeholder 00:18:03.730 --> 00:18:06.309 or ERCOT Staff review process of the new test. That 00:18:06.309 --> 00:18:09.349 maybe we should go to five year average or stay at 00:18:09.359 --> 00:18:11.950 three. Then they can do that out there without having 00:18:11.950 --> 00:18:14.920 to come back and say Commission open the rule and adjust 00:18:14.920 --> 00:18:17.630 that. Any of those protocol changes would come back 00:18:17.630 --> 00:18:21.619 to us anyway. But it's in rule and we'd have to open 00:18:21.619 --> 00:18:25.990 the rule. The protocol change would be in the system. I think the plan is to open the rule 00:18:25.990 --> 00:18:28.569 down the road, anyway. That was what, Jimmy was talking about then. 00:18:28.579 --> 00:18:32.259 An iterative process. We're gonna have to at some point in time. I mean either way I'm good, I 00:18:32.259 --> 00:18:34.079 just wanted to have this discussion. Because, you know. 00:18:36.440 --> 00:18:39.059 - Yeah, that's right, and so whichever, whatever you 00:18:39.059 --> 00:18:41.049 guys decide on this. I mean, it's set, you know, two 00:18:41.049 --> 00:18:44.660 sides of the equation, cost cost savings. So right 00:18:44.660 --> 00:18:47.400 now, for the cost savings part, it's the same six year 00:18:47.400 --> 00:18:51.509 load study that it's always been. And that can be modified 00:18:51.509 --> 00:18:55.019 by ERCOT, if they want to adopt a new load study. Um, 00:18:55.019 --> 00:18:57.960 and we would have to approve that under SB2 approval. 00:18:57.970 --> 00:19:02.190 And then, the rule is written on the cost side. Old 00:19:02.190 --> 00:19:04.589 test is one year, like it's always been. New test 00:19:04.589 --> 00:19:07.450 is average of three years. And so whether or not we 00:19:07.450 --> 00:19:11.359 want to uh, put the three in this or not. Either way 00:19:11.359 --> 00:19:13.490 the Commission would have approval authority on the 00:19:13.490 --> 00:19:16.539 back end. But I'm not, uh, if we want to leave the 00:19:16.539 --> 00:19:18.559 three in here. I'm not afraid of reopening the rule 00:19:18.559 --> 00:19:21.509 to adjust it later if we need to. Um so It's whatever 00:19:21.509 --> 00:19:24.059 you, whatever you guys decide. Uh, Staff is happy to 00:19:24.069 --> 00:19:26.720 go with on this point. I just want to put out 00:19:26.720 --> 00:19:28.789 there for discussion. Sure, sure. Just because I'm always looking 00:19:28.789 --> 00:19:31.440 for flexibility and you know, an efficient process. 00:19:31.440 --> 00:19:34.789 And I'm good either way. Um, I just wanted to have the 00:19:34.789 --> 00:19:37.710 discussion on it. Um, because ultimately, you know, I know 00:19:37.710 --> 00:19:41.109 you're very busy and uh, the less rulemaking the better. 00:19:41.109 --> 00:19:43.640 And, and rule making involved the Administrative Procedure 00:19:43.640 --> 00:19:45.910 Act process and stakeholder comments. And, but we're 00:19:45.910 --> 00:19:47.910 going to reopen the role either way down the road. 00:19:47.910 --> 00:19:49.990 And I mean that's fine. I just wanted to kind of have 00:19:49.990 --> 00:19:53.049 the discussion. I could not appreciate that sentiment more. So 00:19:53.059 --> 00:19:56.950 uh, thank you very much. Well and, and I'd also highlight, 00:19:56.960 --> 00:20:00.380 we've had at least three Legislative letters on this 00:20:00.390 --> 00:20:04.109 rule, um filed. There's a lot of opinions out there. 00:20:04.119 --> 00:20:08.259 Um, Staff tried to stick to the uh, letter of the law. 00:20:09.410 --> 00:20:14.349 They did, um and and then we tried to uh, utilize good 00:20:14.349 --> 00:20:18.119 policy making principles. Uh, on the way in, on some of the 00:20:18.119 --> 00:20:22.470 more pressing. Uh the issue of resiliency. Which they 00:20:22.480 --> 00:20:26.380 adapted to all of our uh, concerns and wishes. As well 00:20:26.380 --> 00:20:31.019 as, broad high level concepts discussed in um, different 00:20:31.019 --> 00:20:34.809 conversations on Legislative intent. I would say for 00:20:34.809 --> 00:20:37.990 the purposes of flexibility, there is such visibility 00:20:37.990 --> 00:20:41.440 on this particular topic and such interest and passion. 00:20:41.450 --> 00:20:43.680 Within the policy making body down the street, which 00:20:43.680 --> 00:20:46.670 is about to convene for 140 days. In which case, 00:20:46.670 --> 00:20:49.990 they can direct us pretty uh, broadly and black letter 00:20:49.990 --> 00:20:55.470 law. Um, that it seems prudent for the time being. Staffs 00:20:55.470 --> 00:21:00.029 path is a, is one that is the most visible and transparent. 00:21:00.240 --> 00:21:04.140 Um where we can, we fully intend to take this up in 00:21:04.140 --> 00:21:08.349 the future. To refine and, and and employ reforms as 00:21:08.359 --> 00:21:11.319 better information becomes available. But uh, it seems 00:21:11.319 --> 00:21:15.049 like the path forward through rulemaking. Uh is appropriate 00:21:15.049 --> 00:21:18.059 given the Legislative input we have received thus far. Okay. 00:21:18.069 --> 00:21:25.589 Yeah. And uh always, always appreciate, uh, opportunities for flexibility 00:21:25.599 --> 00:21:30.650 and efficiency. And Smeltzer always appreciates, um, less 00:21:30.650 --> 00:21:35.259 rule makings less frequently. And as Commission McAdams 00:21:35.259 --> 00:21:37.650 said, we always welcome clarification from the Legislature. You betcha. 00:21:39.220 --> 00:21:41.779 - No, that's great feedback. And I appreciate, you know, um 00:21:41.789 --> 00:21:43.359 I don't know if you have anything Commissioner Jackson? 00:21:43.359 --> 00:21:45.460 But I just wanted to put that out there and see what 00:21:45.460 --> 00:21:47.400 you all thought. And I appreciate the feedback. And I'm 00:21:47.400 --> 00:21:49.730 good either way, you know, I just wanted to put it 00:21:49.730 --> 00:21:54.349 out there. Yeah. Okay. I think we've got a good, good spot 00:21:54.349 --> 00:21:57.410 for a, we're in a good spot for today. Uh, let me just say 00:21:57.410 --> 00:21:59.740 one thing. And that is, you know, I think that's a good. 00:21:59.750 --> 00:22:02.269 I think Commissioner Cobos brought up something that's 00:22:02.279 --> 00:22:04.529 that's a good thought. You know, now that we, we have 00:22:04.529 --> 00:22:07.920 an independent board ERCOT. Uh, that's not stakeholder 00:22:07.920 --> 00:22:10.740 driven, but it is driven for the people in the reliability 00:22:10.740 --> 00:22:14.240 of the State. Some of these things may be able to go 00:22:14.240 --> 00:22:17.509 to ERCOT. Uh in that regard, in their protocols, because 00:22:17.509 --> 00:22:19.259 we know that they're not gonna be self interested. 00:22:19.259 --> 00:22:21.519 They're gonna be, you know, for the good of the State. 00:22:21.519 --> 00:22:26.269 So, um I think it's a, it's a good uh type of 00:22:26.279 --> 00:22:29.259 discussion to have. Not only on this, but other issues 00:22:29.259 --> 00:22:31.910 that go forward. Because. Absolutely. As you said, Mr. Chairman, 00:22:31.920 --> 00:22:34.250 you know, the protocol changes will come back to us 00:22:34.250 --> 00:22:39.250 anyway. Yeah. And to your earlier point, this whole 00:22:39.250 --> 00:22:43.599 economic test has the, universe of economic test 00:22:43.599 --> 00:22:47.579 has got a lot of dust on it. So there's value in 00:22:47.589 --> 00:22:50.940 putting one foot in the water, seeing what happens. Getting 00:22:50.940 --> 00:22:55.099 some market feedback, and then uh, adjusting course from 00:22:55.099 --> 00:23:03.650 there. Right. Okay, um next topic. Um, page 48. And just, for some 00:23:03.650 --> 00:23:06.950 verification, I think this is important. Um as, as we 00:23:06.950 --> 00:23:09.509 were discussing, the first interim step is for ERCOT 00:23:09.509 --> 00:23:12.859 to use the GR test. And, and the production cost savings 00:23:12.859 --> 00:23:15.180 test to evaluate economic projects. And in the long 00:23:15.180 --> 00:23:17.920 term, um, once they developed a new congestion cost 00:23:17.920 --> 00:23:20.009 savings test. They'll use that new congestion cost 00:23:20.009 --> 00:23:22.720 savings test, and the, and the production cost savings 00:23:22.720 --> 00:23:25.960 test. And the rule says that a project can pass either 00:23:25.960 --> 00:23:32.180 or. Um is Woody here? Yeah. Woody, can you please come up? 00:23:34.390 --> 00:23:37.359 I think this is an important discussion to have. Um. 00:23:40.099 --> 00:23:45.750 Uh so Woody. Um, the generator revenue reduction test, 00:23:45.759 --> 00:23:47.970 and ultimately the new congestion cost savings test. 00:23:47.970 --> 00:23:50.500 They're, they're both consumer benefit tests, that are 00:23:50.509 --> 00:23:53.140 intended to address generation, I mean I'm sorry, load 00:23:53.140 --> 00:23:56.950 pockets. And the production cost savings test is intended 00:23:56.950 --> 00:23:59.680 to address a generation pocket. They work differently, 00:23:59.680 --> 00:24:06.130 right? That's correct, yes. Um so if, if you were to require a project to 00:24:06.130 --> 00:24:09.440 meet both tests, how would that impact transmission 00:24:09.440 --> 00:24:12.750 planning for you? I think it would make it much less 00:24:12.750 --> 00:24:15.230 likely to approve economic projects, if they have to 00:24:15.230 --> 00:24:19.920 meet both tests. So if you have an and, it's much less 00:24:19.920 --> 00:24:22.759 likely to that you're gonna approve economic projects. 00:24:23.089 --> 00:24:25.599 - What would you also state your name and who you are with? I'm sorry. Woody Rickerson 00:24:25.599 --> 00:24:30.009 with ERCOT, Vice President Planning. Okay, I think that's 00:24:30.009 --> 00:24:32.519 important to note is we're trying to, you know, move 00:24:32.519 --> 00:24:38.670 from the backlog, of um, or get the economic project 00:24:38.680 --> 00:24:42.049 evaluation kick started again. In terms of, you know 00:24:42.049 --> 00:24:45.359 the two tests look at two different issues. And requiring 00:24:45.359 --> 00:24:47.950 both, as I was trying to understand from you without 00:24:47.960 --> 00:24:50.710 what, how that would impact transmission projects. 00:24:50.720 --> 00:24:58.130 Thank you for that. Um, the next issue um, is on page 00:24:58.130 --> 00:24:59.990 50, the reliability criteria. 00:25:05.160 --> 00:25:08.039 And that is subsection 2. 00:25:10.259 --> 00:25:12.940 Its Staff made some modifications from the prior proposal 00:25:12.940 --> 00:25:16.289 publication, I think are important to highlight. Um, 00:25:16.299 --> 00:25:19.980 in the reference language says, the forecasted load 00:25:19.980 --> 00:25:22.039 growth and additional load currently seeking (inaudible) 00:25:22.039 --> 00:25:24.930 connection must be substantiated by quantifiable evidence 00:25:24.930 --> 00:25:29.180 of projected load growth. Um Woody, from your transmission 00:25:29.180 --> 00:25:33.089 planning perspective, um, would that allow for TSPs, 00:25:33.089 --> 00:25:36.529 for transmission companies to uh, submit third party 00:25:36.529 --> 00:25:40.289 independent consultant studies to um, justify regional 00:25:40.289 --> 00:25:43.140 load growth? Yes, I think it would. I think we used those 00:25:43.140 --> 00:25:45.009 in the past, and I think that's something we could use 00:25:45.009 --> 00:25:49.609 in the future. Great. So that, that the whole portion 00:25:49.609 --> 00:25:51.960 of the reliability criteria about additional load seeking 00:25:51.960 --> 00:25:54.220 your connection is important addition. As we are 00:25:54.230 --> 00:25:57.930 growing State, and we want to facilitate additional. 00:25:57.940 --> 00:26:00.200 Um, you know we want to make sure we have a little 00:26:00.200 --> 00:26:02.640 bit of flexibility. Obviously balancing consumer costs 00:26:02.640 --> 00:26:05.990 and transmission build out is very important. But um, this 00:26:05.990 --> 00:26:08.130 edition by Staff I think is important. Because it does 00:26:08.130 --> 00:26:11.019 allow the transmission companies, as I know, Oncor has 00:26:11.019 --> 00:26:14.109 done in the past for the Far West Zone, through the 00:26:14.109 --> 00:26:18.289 IHS Study. Um, has submitted prior past this, this 00:26:18.299 --> 00:26:21.289 new language does help, uh, provide some flexibility. And 00:26:21.289 --> 00:26:23.299 there for, the TSPs to come back with some 00:26:23.309 --> 00:26:26.529 studies and other information there. So, thank you for 00:26:26.529 --> 00:26:33.039 that. Um, with respect to resiliency. Um and I do thank 00:26:33.039 --> 00:26:35.660 Staff for working on developed, you know, develop 00:26:35.670 --> 00:26:37.880 further refining this language, so that resiliency is 00:26:37.880 --> 00:26:40.069 a plus factor rather than the third test. I think the 00:26:40.069 --> 00:26:42.630 prior language was gray and kind of, I had some concerns 00:26:42.630 --> 00:26:44.609 with it. And I do appreciate your hard work on that. 00:26:44.619 --> 00:26:48.410 Uh, Dave um. You know, Woody from your perspective, there's 00:26:48.410 --> 00:26:51.440 a proposed resiliency evaluation framework. That Staff 00:26:51.440 --> 00:26:53.589 has developed in the role provide you with sufficient 00:26:53.589 --> 00:26:56.809 guardrails to um, conduct your transmission planning process. 00:26:56.809 --> 00:26:59.579 That doesn't sort of open the floodgates to mass amount 00:26:59.579 --> 00:27:03.730 of transmission overbuild. Yeah, I think the clarification 00:27:03.730 --> 00:27:08.210 that was made that it's not a third path, it's almost 00:27:08.210 --> 00:27:13.839 view it as an accelerator for existing resiliency or 00:27:13.839 --> 00:27:16.079 economic projects. I think that, that makes that clear. 00:27:16.079 --> 00:27:18.950 I think we can work within that. And probably the, the 00:27:18.950 --> 00:27:21.390 latest example, I think that's very important to highlight 00:27:21.390 --> 00:27:25.130 is the long term Lower Rio Grande Valley Project. Right. 00:27:25.140 --> 00:27:27.690 Yeah, I think that's a that's a really good case study, 00:27:27.690 --> 00:27:31.630 for how to use the resiliency criteria. Fantastic. 00:27:31.640 --> 00:27:35.440 Alright. Thank you Woody. All right. Appreciate it. Um, and just 00:27:35.440 --> 00:27:38.420 in closing as Commissioner Glotfelty noted, you know, 00:27:38.420 --> 00:27:41.700 this is an interim step on resiliency. Right? And so, 00:27:41.700 --> 00:27:44.490 there's much more that needs to be looked at from the 00:27:44.490 --> 00:27:46.380 resiliency angle. And I do look forward to working with 00:27:46.380 --> 00:27:48.710 you Commissioner Glotfelty. On taking a more comprehensive 00:27:48.710 --> 00:27:53.390 look at this issue, um, here in the near future. Good 00:27:53.390 --> 00:27:56.230 points all. Thank you for laying those out. And more 00:27:56.230 --> 00:27:59.279 importantly it's, it's been a bit now, but thank you 00:27:59.279 --> 00:28:01.759 again for spearheading that Rio Grande Valley Project. 00:28:01.759 --> 00:28:04.549 I was down there a couple of months ago. Uh, and it is 00:28:04.549 --> 00:28:07.039 not only critically important to that part of the State, 00:28:07.039 --> 00:28:10.279 but to the entire ERCOT ecosystem. Especially with 00:28:10.279 --> 00:28:14.400 the uh, storm systems and hurricanes, hurricane risk from 00:28:14.400 --> 00:28:18.329 the Gulf. And the loads that are coming down there. I mean, it's amazing what's 00:28:18.339 --> 00:28:21.559 what's staring RGB in the face right now, so. Critically 00:28:21.559 --> 00:28:23.099 important. Thank you for that. And I'm glad you had 00:28:23.099 --> 00:28:24.950 an opportunity to go down there. I think it was important. 00:28:25.289 --> 00:28:28.670 - Hugely important. We had, had a new Corpus Christi every 00:28:28.670 --> 00:28:33.130 year in this State. A staggering amount of growth in population. Several of them 00:28:33.130 --> 00:28:34.069 near Corpus Christi, so. 00:28:35.809 --> 00:28:39.210 - Yeah, absolutely. But they don't bring the megawatts 00:28:39.240 --> 00:28:40.109 with them. Nope. 00:28:42.460 --> 00:28:46.200 - All right. Any other thoughts, comments? Other than just 00:28:46.200 --> 00:28:50.710 to say? Um, I think a great job on resiliency and it's 00:28:50.710 --> 00:28:54.359 been kind of noted that it is interim, but it's also 00:28:54.359 --> 00:28:57.839 a first. I think is as David recognized. And you know, I 00:28:57.839 --> 00:28:59.900 think so important that it's an add on, and that it's 00:28:59.900 --> 00:29:03.539 that first step. And that we've recognized this as being 00:29:03.539 --> 00:29:08.559 important and build out, um, for the long term viability 00:29:08.569 --> 00:29:12.200 of the system as a whole, right. And so, um, we could 00:29:12.200 --> 00:29:15.390 theoretically have, you know, generation, but we need 00:29:15.390 --> 00:29:18.190 the transmission and we need to be resilient. And I 00:29:18.190 --> 00:29:20.670 think the Staff has done a great job in terms of bounding 00:29:20.670 --> 00:29:25.029 it. And actually defining what that is, for this initial 00:29:25.039 --> 00:29:29.460 first step. And I, think it's, it's, a great 00:29:29.460 --> 00:29:33.769 add on to, um to the, to test either or that will 00:29:33.769 --> 00:29:35.849 be used kind of moving forward to get transmission 00:29:35.849 --> 00:29:39.960 built. So good job on that. Excellent points. Thank 00:29:39.960 --> 00:29:44.490 you. All right, any other thoughts comments or a motion to approve 00:29:44.490 --> 00:29:47.460 the proposal for adoption? I would move to approve 00:29:47.460 --> 00:29:49.450 the proposal for adoption consistent with our discussion 00:29:49.450 --> 00:29:52.200 here today. Second. Got a motion and a Second. All in 00:29:52.200 --> 00:29:55.460 favor say aye. Aye. None opposed, motion passes. Thank 00:29:55.460 --> 00:29:59.079 you all. Smeltz and team, well done. Well done David. Thank you. 00:30:00.710 --> 00:30:05.859 Next item please. (item:13:53911 ADER Pilot Project) The next item is item 13, project 00:30:05.869 --> 00:30:10.809 53911. Aggregated Distributed Energy Resource, ERCOT 00:30:10.819 --> 00:30:13.759 Pilot Project. Commissioners McAdams, and Glotfelty filed 00:30:13.759 --> 00:30:14.509 a memorandum. 00:30:17.700 --> 00:30:22.920 - Thanks sir. Thank you members. Um Commissioner Glotfelty 00:30:22.920 --> 00:30:26.109 and I filed a joint memo identifying areas of customer 00:30:26.109 --> 00:30:30.160 protection to be given as guidance. Uh, to market participants 00:30:30.160 --> 00:30:32.980 in the ADER Pilot Project, and that's what's before 00:30:32.980 --> 00:30:37.269 you. Underlying this guidance, is the expectation that 00:30:37.269 --> 00:30:40.109 established customer protection rules and policies. 00:30:40.119 --> 00:30:44.220 Will be applicable to interactions between uh, the distributed 00:30:44.220 --> 00:30:47.269 energy resource aggregators, who are participating in 00:30:47.269 --> 00:30:51.500 the pilot, and their premise level customers. And uh, 00:30:51.509 --> 00:30:55.200 the overarching uh, issue here uh, enshrined in the memo. And 00:30:55.200 --> 00:30:58.950 encapsulating the memo, is that we're in uncharted waters 00:30:58.960 --> 00:31:03.069 with the Pilot. And we are dealing with new uh, energy 00:31:03.069 --> 00:31:07.710 companies, energy actors who are now engaging and will 00:31:07.710 --> 00:31:11.069 engage with our customers. Uh at, at their homes and at 00:31:11.069 --> 00:31:16.309 their businesses. And under a uh, at a definitional level. 00:31:16.319 --> 00:31:19.519 We just want to make sure that there is an expectation uh, 00:31:19.529 --> 00:31:22.589 set out on the front end by at least several of us. 00:31:22.599 --> 00:31:26.440 Um in the joint memo and potentially all of us. Uh, in terms 00:31:26.440 --> 00:31:30.859 of discussion and comments, that uh, basic foundational 00:31:30.859 --> 00:31:34.349 principles of customer protections still apply. And 00:31:34.349 --> 00:31:38.009 we will consider that as the pilot rolls out, and becomes 00:31:38.009 --> 00:31:41.970 active in January over the next year. Um, and that as 00:31:41.970 --> 00:31:45.890 we start to hear feedback on how customers are uh, either 00:31:45.890 --> 00:31:49.180 satisfied or dissatisfied with their interactions, with 00:31:49.180 --> 00:31:53.619 energy companies. That uh, we do consider uh, protections 00:31:53.619 --> 00:31:57.519 that are in law and in rule to uh, to be complied 00:31:57.519 --> 00:32:01.970 with. And so, that's what you see in the memo. Um, we 00:32:01.970 --> 00:32:05.130 have engaged with Staff. I consider this a product 00:32:05.140 --> 00:32:09.119 of the task force engagement where Staff is participating 00:32:09.119 --> 00:32:13.970 in that. Um that, you know, they they raised concerns 00:32:13.970 --> 00:32:16.180 that we want to make sure everybody's speaking the 00:32:16.180 --> 00:32:19.460 same language. In terms of how they engage with both 00:32:19.460 --> 00:32:22.359 customers and how they engage with each other. From 00:32:22.359 --> 00:32:27.599 a QSC to the retail electric provider. And uh, ultimately 00:32:27.599 --> 00:32:32.119 we hope that this can be enshrined in and encapsulated 00:32:32.130 --> 00:32:35.859 in both rule and potentially law. When we know more 00:32:35.859 --> 00:32:37.980 about what we're dealing with, in terms of the business 00:32:37.980 --> 00:32:41.589 practices of these aggregators as the Pilot launches 00:32:41.599 --> 00:32:45.230 and potentially could be scaled. So I think this is 00:32:45.230 --> 00:32:48.299 a good first step so that we're all speaking the same 00:32:48.299 --> 00:32:50.269 language. But, I look forward to any feedback and I 00:32:50.269 --> 00:32:53.180 sincerely appreciate the support of Commissioner Glotfelty 00:32:53.180 --> 00:32:56.549 and Staff, and our staff to catch this on the front 00:32:56.549 --> 00:33:01.269 end. Um, so that expectations are level set at the 00:33:01.269 --> 00:33:05.029 inauguration of this, this new first of its kind program. 00:33:05.630 --> 00:33:09.869 - A good addition to what is an unprecedented program 00:33:09.869 --> 00:33:12.740 in ERCOT. Y'all (inaudible) a lot of pieces very, very quickly. 00:33:12.750 --> 00:33:15.509 Uh. We want to make sure that none fall off the table 00:33:15.509 --> 00:33:18.599 and break. Well and I know uh, Commissioner Glotfelty 00:33:18.740 --> 00:33:22.059 mentioned it earlier, but in our earlier discussion. 00:33:22.069 --> 00:33:26.650 Um, but it's, it's the same theme, that you all are discussing 00:33:26.650 --> 00:33:30.589 today. At the, at the end of the day, this is all 00:33:30.589 --> 00:33:32.730 about delivering reliable power, at the lowest cost to 00:33:32.730 --> 00:33:35.970 customers. Yes sir. With the emphasis on customers. That's homes 00:33:35.970 --> 00:33:38.549 and households. Uh, that's what this is all about. So 00:33:38.549 --> 00:33:41.089 thank ya'll for putting that extra consideration 00:33:41.089 --> 00:33:43.670 for those customers on this unprecedented project. 00:33:44.359 --> 00:33:47.420 - Let me just say real quick. Um, first of all, I think 00:33:47.420 --> 00:33:52.970 that uh, the task force has done a remarkable job. Um, 00:33:52.980 --> 00:33:56.789 highlighting the issues finding the path forward for 00:33:56.789 --> 00:34:01.420 this Pilot. And um, the issues that have come up. Um, 00:34:01.430 --> 00:34:03.460 I think there was a little intimidation factor from 00:34:03.460 --> 00:34:06.099 the Staff early on. They were invited to a bunch of 00:34:06.099 --> 00:34:08.440 meetings. Uh, but when you have two Commissioners kind 00:34:08.440 --> 00:34:10.920 of working on this thing, it's like a new paradigm 00:34:10.920 --> 00:34:14.039 here. And like, do we really, are we really able to 00:34:14.039 --> 00:34:16.690 say something or not? I think we've got it all straightened 00:34:16.690 --> 00:34:19.789 out. The Consumer Protection issue is one of those 00:34:19.789 --> 00:34:22.219 that they brought up. Uh, and I'm very glad that they 00:34:22.219 --> 00:34:25.880 did. Thank you all for uh, for making sure that, that 00:34:25.889 --> 00:34:29.789 rose to the top. That we uh, we've addressed it both 00:34:29.800 --> 00:34:36.079 in uh, the task force and uh, enshrined in the memo. Um, that 00:34:36.090 --> 00:34:40.409 uh, Commissioner McAdams did uh, such a fine job writing. 00:34:40.420 --> 00:34:47.309 Um and I just initialed. Um, but um, I think that um, this 00:34:47.320 --> 00:34:51.989 again, you know. I can't, I'm very pleased with the 00:34:51.989 --> 00:34:54.880 fact that, you know, Staff is totally engaged in this. 00:34:54.880 --> 00:34:57.469 They think differently than we do up here. And from 00:34:57.469 --> 00:34:59.960 the industry and it's a very important perspective 00:34:59.969 --> 00:35:02.900 to consider on all of our issues. So I'm appreciative 00:35:02.900 --> 00:35:05.730 of that. This is gonna pay big dividends later on. When we 00:35:05.730 --> 00:35:08.730 start talking about more megawatts and how to, how to 00:35:08.730 --> 00:35:12.619 expand this. So uh, the engagements, awesome. That's the 00:35:12.619 --> 00:35:15.019 merit of a pilot project. We identified these issues 00:35:15.019 --> 00:35:17.179 when they're little issues before they become big issues. Right. 00:35:17.309 --> 00:35:19.679 - This is working exactly how we, how we hope to do. 00:35:20.500 --> 00:35:23.320 - Thank you for looking at that issue. I think customer 00:35:23.320 --> 00:35:25.659 protection, as we have new entities into the market 00:35:25.659 --> 00:35:28.250 or, or new arrangements that are engaging with consumers. 00:35:28.250 --> 00:35:30.260 It's important to look at the Customer Protection rules. 00:35:30.260 --> 00:35:31.789 I know we did that a couple of years ago with the 00:35:31.789 --> 00:35:34.429 broker registration. Uh, we were involved in it when I 00:35:34.429 --> 00:35:36.780 was at OPUC. And it's always important to make sure 00:35:36.780 --> 00:35:39.219 that there are protections in there for the consumers 00:35:39.219 --> 00:35:41.110 with these new entities and arrangements entering the 00:35:41.110 --> 00:35:44.170 market. That was foremost in our mind, that experience. 00:35:44.179 --> 00:35:45.789 You know, we just wanted to get ahead of this, rather 00:35:45.789 --> 00:35:48.719 than behind. And again, no formal action is necessary 00:35:48.719 --> 00:35:50.780 on the part of the Commission. This is a communication 00:35:50.780 --> 00:35:52.920 strategy that we were rolling out earlier, rather than 00:35:52.920 --> 00:35:56.630 later. And trust are participants in the Pilot Project 00:35:56.630 --> 00:35:59.469 are watching and listening closely. I think they're 00:35:59.469 --> 00:36:03.980 committed. They are committed. And uh, as always a good reminder 00:36:03.989 --> 00:36:07.539 that nothing, uh, around here happens without our dedicated 00:36:07.539 --> 00:36:08.489 and competent Staff. 00:36:10.050 --> 00:36:13.289 - Thank you, Chairman. Um, and just on on behalf of the 00:36:13.289 --> 00:36:16.980 Staff, I wanted, I wanted to thank Commissioners McAdams 00:36:16.980 --> 00:36:21.630 and Glotfelty. Um for their leadership and their flexibility 00:36:21.630 --> 00:36:26.739 and patience as we create this new paradigm of Commissioner 00:36:26.739 --> 00:36:30.150 lead projects. Um, I think you adaptly described it. 00:36:30.150 --> 00:36:32.800 It was, it's not just the Staff, but the stakeholders 00:36:32.800 --> 00:36:37.250 as well. Um,getting used to an environment where uh, 00:36:37.260 --> 00:36:41.289 Commissioners are are leading policy discussions at 00:36:41.289 --> 00:36:46.090 the workshop level. And um, you have each spent a lot 00:36:46.090 --> 00:36:50.380 of time with Staff, um you know, helping us work on 00:36:50.380 --> 00:36:54.780 processes to make that run more smoothly. And um, we 00:36:54.789 --> 00:36:58.059 we really appreciate it, and thank you for your leadership 00:36:58.059 --> 00:37:01.559 and guidance on this issue. Appreciate it Connie, absolutely. Of course 00:37:01.559 --> 00:37:07.690 nothing gets done without Connie. Or approved. Or approved. 00:37:08.679 --> 00:37:12.679 - All right, thanks all. Uh, I think 14 was consented. I don't have 00:37:12.679 --> 00:37:18.250 anything for items 15, 16 or 17. (item:18:Update on ERCOT Transmission Planning Reform) I understand Commissioner 00:37:18.250 --> 00:37:22.309 Glotfelty has some comments on item 18. Yeah, so, uh 00:37:22.320 --> 00:37:26.230 in, in the uh, continuing the vein and discussion about 00:37:26.230 --> 00:37:30.269 transmission planning. I'm excited to give just a few 00:37:30.269 --> 00:37:33.059 updates. Um, this isn't gonna be long in depth policy 00:37:33.059 --> 00:37:35.869 discussion. But just some things that we've been, been 00:37:35.869 --> 00:37:39.349 working on in the process, um, to help solve some transmission 00:37:39.349 --> 00:37:45.599 planning issues. Um, I want to assure folks that we're 00:37:45.599 --> 00:37:47.420 gonna take this methodically and we're gonna solve 00:37:47.429 --> 00:37:51.860 issue. We're not gonna create solutions to problems 00:37:51.860 --> 00:37:56.139 that are not existent. Um, I think there's a, a uh 00:37:56.909 --> 00:38:00.780 some of these um, issues um, when you look at the transmission 00:38:00.780 --> 00:38:04.110 planning process at ERCOT and at the PUC are not problems. 00:38:04.110 --> 00:38:08.030 This is just a long term process. It takes a long time 00:38:08.039 --> 00:38:10.429 for a reason. We're gonna try to shorten it, but we're 00:38:10.429 --> 00:38:15.690 not gonna uh, solve a problem that's not there. So, um. 00:38:16.429 --> 00:38:19.599 A little bit about where my mind is as we go forward. 00:38:19.599 --> 00:38:23.190 First of all, um what we did today by approving the 00:38:23.199 --> 00:38:26.119 the implementation World Center Bill 1281, I think is 00:38:26.130 --> 00:38:30.769 a fantastic first step. As I said, um, the identification 00:38:30.769 --> 00:38:34.179 and evaluation of economic upgrades does a lot of things 00:38:34.179 --> 00:38:37.880 for our market. Um, not only economically but on the 00:38:37.880 --> 00:38:42.260 reliability side as well. Um, it will eliminate uh, some 00:38:42.260 --> 00:38:45.389 of the most costly generic transmission constraints. 00:38:45.400 --> 00:38:48.900 Uh, we think that that will be a critical outcome from 00:38:48.909 --> 00:38:54.659 uh, this economic analysis. And um, we all know or I 00:38:54.659 --> 00:38:57.969 hope we know that um, this isn't a solution for fixing 00:38:57.980 --> 00:39:01.599 every single generic transmission constraint. And every 00:39:01.599 --> 00:39:03.639 single constraint around Texas, because we've always 00:39:03.639 --> 00:39:06.539 had them and we always will in the future. So, these 00:39:06.539 --> 00:39:09.739 are to fix the most important ones that are costly 00:39:09.750 --> 00:39:15.039 to our consumers. Um and, and the Senate Bill 1281 rule 00:39:15.039 --> 00:39:19.389 will help us do that. Also fixing transmission and 00:39:19.389 --> 00:39:25.429 GTCs is not a um, a solution for poor generation 00:39:25.429 --> 00:39:29.909 citing decisions. So, it is not our responsibility and 00:39:29.909 --> 00:39:34.349 that of every ratepayer across the State um, for um, 00:39:34.360 --> 00:39:38.909 uh, to fix major transmission constraints that get created 00:39:38.920 --> 00:39:41.929 as a result of poor sighting. So just keep that in 00:39:41.929 --> 00:39:47.019 mind. And um, I have a discussion item here in a minute 00:39:47.019 --> 00:39:49.599 that I'll get to that might help that process that 00:39:49.599 --> 00:39:54.099 we've talked with ERCOT about. Um, other there are 00:39:54.110 --> 00:39:58.469 just a few other things. First of all, um, as I've said 00:39:58.469 --> 00:40:01.039 in the past, I believe we should be better stewards 00:40:01.039 --> 00:40:04.090 of our limited rights of way. As our population grows, 00:40:04.099 --> 00:40:07.090 we have to think of higher voltage lines. We have to 00:40:07.090 --> 00:40:12.030 think of utilizing 765 lines or HVDC lines, within 00:40:12.030 --> 00:40:15.389 ERCOT. Obviously, right now we only have DC ties 00:40:15.389 --> 00:40:18.059 outside of ERCOT, but how we would utilize them 00:40:18.070 --> 00:40:21.230 inside ERCOT is a totally different ball game. It's 00:40:21.230 --> 00:40:24.570 a totally different animal on how we would, uh, plan 00:40:24.570 --> 00:40:29.630 for this system. And ERCOT has, has teed that up with 00:40:29.639 --> 00:40:33.599 um, the initial indication of studying an HVDC 00:40:33.599 --> 00:40:36.570 line from West Texas, to solve the West Texas export. 00:40:36.579 --> 00:40:40.510 Um, challenge and I applaud them for doing that. But 00:40:40.510 --> 00:40:42.800 we've got a lot of work to do in that space. And 00:40:42.800 --> 00:40:47.969 I think that um, this is not a directive that we will 00:40:47.969 --> 00:40:50.880 use HVDC all across the State. There have to be economic 00:40:50.880 --> 00:40:54.300 factors there as well. But um, there are places, we 00:40:54.300 --> 00:40:58.179 are a big enough State that HVDC projects can be of 00:40:58.179 --> 00:41:04.409 huge value to our consumers. Um, in our discussion with 00:41:04.409 --> 00:41:08.929 ERCOT about uh, these higher capacity lines um, and HVDC 00:41:08.929 --> 00:41:14.380 lines 765 whatever. Um, I've asked them to host a series 00:41:14.380 --> 00:41:18.250 of meetings with industry and um, different stakeholders 00:41:18.250 --> 00:41:21.869 and vendors. To really get down to the nuts and bolts 00:41:21.880 --> 00:41:24.840 of the issues that need to be resolved, either at the 00:41:24.840 --> 00:41:28.159 ERCOT process or at the PUC, to make those a reality. 00:41:28.579 --> 00:41:32.289 So um, ERCOT has agreed to do that. I hope uh, early in 00:41:32.289 --> 00:41:35.659 2023, we will begin that process. Woody, I appreciate 00:41:35.659 --> 00:41:39.610 your, your efforts. Um, and that of Pablo, who is on 00:41:39.610 --> 00:41:44.699 the same page. Um, that pushing more power down our existing 00:41:44.699 --> 00:41:47.199 rights away is a really important objective going forward. 00:41:49.260 --> 00:41:53.670 Um, I would say it's my opinion that going to a higher 00:41:53.670 --> 00:41:57.880 voltage is uh, it's not really a debate. It's something 00:41:57.880 --> 00:41:59.389 that we're gonna have to do. We're gonna have to look 00:41:59.389 --> 00:42:02.599 at it very seriously. Uh, up to this point, it has always 00:42:02.599 --> 00:42:06.079 been a uh, well maybe, but we'll always fall back to 00:42:06.079 --> 00:42:10.309 345. And I think as we go forward now. again with population 00:42:10.309 --> 00:42:12.679 and load growth, we need to think more seriously about 00:42:12.679 --> 00:42:17.139 it, and believe ERCOT is doing that. Um, we've taken 00:42:17.139 --> 00:42:20.559 a step today on defining resiliency, um, in the long 00:42:20.559 --> 00:42:24.630 term. Um, we are gonna be doing more on this, this is 00:42:24.639 --> 00:42:28.570 a buzzword kinda like smart grid I think. But uh, the 00:42:28.579 --> 00:42:32.420 reality is resiliency has um, a very important piece 00:42:32.420 --> 00:42:35.420 and transmission planning. And that is what are those 00:42:35.429 --> 00:42:39.230 limited numbers of lines that really help um, ensure 00:42:39.230 --> 00:42:41.949 that large population centers have the power that they 00:42:41.949 --> 00:42:46.619 can get during the most extreme times. Um, and um, that 00:42:46.619 --> 00:42:49.530 could be a weather event, it could be a cyber attack. 00:42:49.539 --> 00:42:55.460 Um, but but going down this road of defining resiliency 00:42:55.469 --> 00:43:01.059 um, is uh, there's a lot of things under resiliency modeling 00:43:01.059 --> 00:43:05.130 and -1,-1 and -2, I mean it all gets into the weeds. 00:43:05.139 --> 00:43:07.059 But the fact is that we're kicking it off, and we're 00:43:07.059 --> 00:43:11.320 going to do it. Um, Commissioner Cobos has uh, has a 00:43:11.329 --> 00:43:14.599 very big interest in this. And uh, is eager to help. And 00:43:14.599 --> 00:43:18.300 I'm, I'm eager to work with her uh on, on resiliency. Um, 00:43:18.309 --> 00:43:21.039 as we go forward here. Um, 00:43:23.199 --> 00:43:27.349 the issue of technology has come up. In fact my first 00:43:27.360 --> 00:43:29.949 memo that I wrote here was on dynamic line rating. 00:43:29.960 --> 00:43:34.570 A very, very important issue to me, I say that in just 00:43:34.579 --> 00:43:38.170 but it's really pretty, pretty cool technology. Um, ERCOT's 00:43:38.170 --> 00:43:41.760 let me know that uh, we dynamically rate uh, in the neighborhood 00:43:41.760 --> 00:43:44.949 of 65% of our lines, and that's a higher percentage 00:43:44.949 --> 00:43:49.659 on 345 lines. Um, part of this issue, um, in my 00:43:49.659 --> 00:43:52.429 opinion is we probably don't get credit, or ERCOT doesn't 00:43:52.429 --> 00:43:55.320 get credit. TDSPs don't get credit for the amount 00:43:55.320 --> 00:43:57.510 of work that they're doing with this technology already. 00:43:57.519 --> 00:44:00.570 So, it is a huge benefit that we are utilizing this 00:44:00.570 --> 00:44:03.449 technology. There are other technologies that can help 00:44:03.449 --> 00:44:09.119 us um, make the system um, more efficient um, and resilient 00:44:09.119 --> 00:44:12.300 as well. That will be digging into facts, devices and 00:44:12.300 --> 00:44:15.469 synchronous condensers and other things, that will improve 00:44:15.469 --> 00:44:18.619 the system. Especially as we grow to a more intermittent 00:44:18.619 --> 00:44:22.360 type of resource. And to your point, I believe that 00:44:22.369 --> 00:44:26.139 on dynamic line rating, ERCOT is a leader in utilizing 00:44:26.139 --> 00:44:28.530 that technology not only in the US, if not globally. 00:44:28.539 --> 00:44:32.289 - Absolutely. I mean I, I think globally, but my guess 00:44:32.289 --> 00:44:34.699 would be that if they are the leader in the US, then 00:44:34.710 --> 00:44:38.190 they're definitely the leader globally. But um, we've been 00:44:38.190 --> 00:44:40.639 way ahead of the rest of the United States. And that 00:44:40.639 --> 00:44:42.860 and, just to get the numbers out there and show that 00:44:42.860 --> 00:44:46.670 we are um, utilizing these technologies is a valuable 00:44:46.670 --> 00:44:49.599 component to having an efficient transmission system. 00:44:50.699 --> 00:44:53.730 Um, the uh, 00:44:55.860 --> 00:45:00.849 these technologies may be um, I say dynamic line rating 00:45:00.849 --> 00:45:04.659 facts, devices, synchronous condensers. Maybe a solution 00:45:04.659 --> 00:45:07.280 for some of our GTCs, where we have major stability 00:45:07.280 --> 00:45:10.190 problems. Long lines that have don't have, that don't 00:45:10.190 --> 00:45:14.280 have interim voltage support but are needed. Um, this 00:45:14.280 --> 00:45:16.880 is an area that we're gonna continue to look at. It's 00:45:16.880 --> 00:45:19.489 my belief that we ought to have them identified. And 00:45:19.489 --> 00:45:22.780 we will in the, in a grid stability study that, that 00:45:22.780 --> 00:45:26.489 ERCOT does as a part of the resiliency exercise. Um, 00:45:26.500 --> 00:45:29.289 and if we need to, we ought to be able to order 00:45:29.300 --> 00:45:32.670 the transmission companies in order uh, to fix these. Um, 00:45:32.679 --> 00:45:35.559 and it's that's a, a new area where we would order it. 00:45:35.559 --> 00:45:38.159 But, I think it's important for the system and for us 00:45:38.159 --> 00:45:44.860 to consider. Um finally, you know, the what 1281 does. 00:45:44.860 --> 00:45:48.579 In terms of how we identify load growth, how we look 00:45:48.579 --> 00:45:51.769 at third party studies is, is a, is a sea change in 00:45:51.769 --> 00:45:56.019 my opinion. Um and hugely valuable component to how 00:45:56.030 --> 00:45:58.960 ERCOT will look at these lines, uh, in their transmission 00:45:58.960 --> 00:46:01.559 planning efforts going forward. We'll continue to look 00:46:01.559 --> 00:46:05.190 at possible improvements at ERCOT and at the PUC. Uh, 00:46:05.199 --> 00:46:08.050 Commissioner Cobos, informed me that she and her staff 00:46:08.050 --> 00:46:12.519 had looked at some of the CCN improvements, um, about 00:46:12.519 --> 00:46:15.889 a year ago. Uh, we look forward to working on that and, and 00:46:15.889 --> 00:46:18.579 seeing if we can implement any of those. Again, this 00:46:18.579 --> 00:46:22.250 is a long process. Uh, we have to make improvements where 00:46:22.250 --> 00:46:25.550 we can, but we won't go searching for problems that 00:46:25.550 --> 00:46:30.860 don't exist. Um, finally I have uh, I got a couple of 00:46:30.860 --> 00:46:33.550 questions for Woody. If you don't mind, would you come 00:46:33.550 --> 00:46:37.440 up? And um, you know, there's one area that I, that I 00:46:37.449 --> 00:46:41.159 want to have a discussion about. And um. 00:46:44.630 --> 00:46:51.190 - Woody Rickerson, ERCOT, yeah. Thank you, Woody. Um, is it right 00:46:51.190 --> 00:46:55.110 that proper generation sighting can solve transmission 00:46:55.110 --> 00:46:58.239 constraints on our system? In a lot of cases, yeah. 00:46:58.250 --> 00:47:02.289 It's a major part of solving congestion. And that is, 00:47:02.289 --> 00:47:06.309 that some congestion is created by poor citing decisions 00:47:06.320 --> 00:47:10.019 or more generation going on, you know, I guess the 00:47:10.019 --> 00:47:12.489 far side of a constraint. But it can also be resolved 00:47:12.500 --> 00:47:16.989 resolved either by building transmission or by better 00:47:16.989 --> 00:47:20.559 citing decisions, is that right? That's correct. Um, 00:47:20.570 --> 00:47:23.489 so I know other regions have done this and perhaps 00:47:23.489 --> 00:47:28.269 ERCOT has, has done this in the past. Um, but is it 00:47:28.269 --> 00:47:32.949 possible for ERCOT, to identify the best places on 00:47:32.949 --> 00:47:33.789 the system? 00:47:35.429 --> 00:47:39.619 Where, where new generation could be cited in order 00:47:39.619 --> 00:47:44.039 to reduce congestion and help the system as a whole 00:47:44.050 --> 00:47:46.059 operate more efficiently and better? 00:47:47.780 --> 00:47:52.960 - I think ERCOT can provide some, some uh, insight into areas 00:47:52.960 --> 00:47:56.079 of the system, that if you were to put new generation 00:47:56.090 --> 00:47:59.909 there would not be any congestion, empty space there 00:47:59.909 --> 00:48:02.159 for generation. The part we're not really going to 00:48:02.159 --> 00:48:08.289 have much insight on, is uh, are the other utilities 00:48:08.289 --> 00:48:11.889 there too? Is there a gas pipeline there? Is there wind there? 00:48:11.889 --> 00:48:14.440 There's a solar there? That kind of thing, but as far 00:48:14.440 --> 00:48:20.119 as what the grid has. Um, if you, what, what kind of 00:48:20.119 --> 00:48:22.090 generation could be added at different places in the 00:48:22.090 --> 00:48:24.369 grid without causing any congestion. We can certainly 00:48:24.369 --> 00:48:28.639 do that. And, and that could be a solution to transmission 00:48:28.639 --> 00:48:32.909 congestion. Certainly, yes. So what I'm trying to highlight here is 00:48:32.909 --> 00:48:37.389 that transmission problems can be solved by building 00:48:37.389 --> 00:48:41.050 transmission and building generation. Sure. And that proper 00:48:41.050 --> 00:48:43.789 generation sighting is something that we can utilize. 00:48:43.800 --> 00:48:46.269 And in my belief, we should utilize and ERCOT should 00:48:46.269 --> 00:48:50.949 utilize to reduce transmission builds. And, and you believe 00:48:50.960 --> 00:48:54.199 that there is something more to be gained other than 00:48:54.210 --> 00:48:57.679 analysis of locational, marginal prices, you know, 00:48:57.679 --> 00:48:59.840 that they already look at. Because again that, that 00:48:59.840 --> 00:49:03.550 reflects congestion and that's the foundational principle 00:49:03.550 --> 00:49:06.849 of what they do, right? So there's something more to 00:49:06.849 --> 00:49:09.869 be gained from studies and evaluations on the part 00:49:09.869 --> 00:49:13.900 of ERCOT, they'll see more. Who are you talking? I'm talking about 00:49:13.900 --> 00:49:17.019 the generators? Well listen, the generators have a 00:49:17.030 --> 00:49:21.969 a, an incomplete set of data um, compared to ERCOT. Okay. 00:49:22.119 --> 00:49:26.070 - Um, ERCOT is looking at a system as a whole. Um, as opposed 00:49:26.070 --> 00:49:29.340 to where I want to build a generating facility to make 00:49:29.340 --> 00:49:32.670 the most money. To Will's point, I think that's all 00:49:32.670 --> 00:49:35.050 those LMPs, are also a very good market signal 00:49:35.050 --> 00:49:38.099 for batteries. It's a whole lot to put about. It's 00:49:38.099 --> 00:49:41.710 a lot easier to put a battery behind some congestion 00:49:41.719 --> 00:49:44.760 that is a pipeline, you know gas plant or something 00:49:44.760 --> 00:49:48.920 like it needs a lot more acreage. Uh, which is fantastic 00:49:48.920 --> 00:49:52.889 if we can get quick responding generation resources 00:49:52.889 --> 00:49:56.179 behind those constraints. Uh and, and the economics 00:49:56.179 --> 00:49:59.050 drive it, that's the mark, the mark, it drives that 00:49:59.050 --> 00:50:02.820 that's one of the great benefits of LMPs. It would be 00:50:02.820 --> 00:50:08.559 my hope that that we could um, have ERCOT do that. Um 00:50:08.570 --> 00:50:13.889 and, and publish something. Um, so that we can uh, inform 00:50:13.889 --> 00:50:17.869 the industry of good places where we might cite worst 00:50:17.880 --> 00:50:21.030 generation might be cited again. This is a transmission 00:50:21.030 --> 00:50:23.550 piece in my opinion, this is how you solve congestion 00:50:23.559 --> 00:50:25.269 by better sighting of generation. 00:50:29.150 --> 00:50:32.349 Um and finally, you know, there are some other areas 00:50:32.349 --> 00:50:37.519 that uh, you know, ultimately offshore wind um, in Texas' 00:50:37.530 --> 00:50:41.320 might happen. Um, interesting discussion I had the other 00:50:41.320 --> 00:50:44.210 day with someone that has built in the North Sea. And 00:50:44.210 --> 00:50:47.829 I, asked them how they deal with hurricanes. As might 00:50:47.840 --> 00:50:49.800 we might encounter in the Gulf of Mexico, and they 00:50:49.800 --> 00:50:52.869 said, well in the North Sea it blows 90 miles an hour 00:50:52.869 --> 00:50:57.880 every day. Like okay. That's unique perspective. Um. 00:50:57.889 --> 00:51:01.489 So, uh, a lot for us to learn in that regard, but 00:51:01.500 --> 00:51:05.880 but it's again, a different animal on who pays and 00:51:05.880 --> 00:51:09.099 and how offshore transmission might be uh integrated 00:51:09.099 --> 00:51:13.199 into a ERCOT system. And um, something that will, will 00:51:13.199 --> 00:51:16.539 look at it, it's probably not the nearest term issue 00:51:16.539 --> 00:51:21.719 to tackle. Uh, because Texas has a lot of land. Um, and the 00:51:21.719 --> 00:51:24.530 cost of onshore wind is probably lower than offshore 00:51:24.530 --> 00:51:28.159 wind, uh but we'll see. So if that's, if that's gonna 00:51:28.159 --> 00:51:31.340 change going forward anyway. Um, that's kind of the 00:51:31.340 --> 00:51:36.039 end of my update. Um, this isn't a uh, um, this is 00:51:36.039 --> 00:51:40.659 a uh, kind of an update to where we're going on these 00:51:40.659 --> 00:51:43.980 things. And um we're doing a ADER 00:51:43.980 --> 00:51:46.659 Task Force. We'll work on some of these with ERCOT, 00:51:46.659 --> 00:51:49.510 with others. And uh, try to make the system more efficient 00:51:49.510 --> 00:51:53.199 and planning horizons more appropriate for what Texas 00:51:53.199 --> 00:51:56.679 is looking at in the future. Commission Glotfelty, just 00:51:56.679 --> 00:51:59.739 got a few things. Um and, thank you for tackling the 00:51:59.750 --> 00:52:02.880 transmission efficiency. Um, review that you're, you're 00:52:02.880 --> 00:52:05.199 doing. I think at various times throughout the last 00:52:05.199 --> 00:52:07.400 year and a half, I've looked at different angles on 00:52:07.409 --> 00:52:11.030 trying to improve that process as well. Obviously ended 00:52:11.030 --> 00:52:14.139 up using statutory authority to having the Commission 00:52:14.150 --> 00:52:16.110 use statutory authority to order the second circuit 00:52:16.110 --> 00:52:20.039 that has never been used before. So, um as you're looking 00:52:20.039 --> 00:52:22.699 at, at that gaining efficiencies. And I appreciate you 00:52:22.699 --> 00:52:24.420 saying that you're not trying to reinvent the wheel 00:52:24.420 --> 00:52:26.610 or fix problems that don't exist. I think that's important 00:52:26.610 --> 00:52:29.989 because we do build transmission faster than other 00:52:29.989 --> 00:52:33.190 markets in the country, probably in the world. Um, and 00:52:33.190 --> 00:52:35.679 so we don't want to, you know, create problems where 00:52:35.679 --> 00:52:38.070 there is not problems. And, and I'm glad you, you are 00:52:38.079 --> 00:52:40.869 definitely focused on, on just trying to make it more 00:52:40.869 --> 00:52:44.940 efficient. Um. Can I interrupt you real quick? Just to 00:52:44.940 --> 00:52:48.340 add a point to that. So, um, while other areas maybe 00:52:48.340 --> 00:52:50.860 stuck around the country may be stuck on transmission 00:52:50.869 --> 00:52:54.619 planning or long lead time transmission development. 00:52:54.630 --> 00:52:58.329 Um, according to our court system planning report, and as 00:52:58.329 --> 00:53:01.860 of August 31, of this year, uh currently reviewing 00:53:01.860 --> 00:53:06.579 $394 million worth of new transmission projects. Projects 00:53:06.579 --> 00:53:12.699 endorsed in 2022, is 2.2 billion. All the projects currently 00:53:12.699 --> 00:53:15.179 in engineering, routing, licensing and construction 00:53:15.179 --> 00:53:20.269 is over 9 billion. And projects energized in 2022, 00:53:20.269 --> 00:53:23.530 is approximately approximately 1.5 billion, as of June 00:53:23.530 --> 00:53:26.869 1st. So Commissioner Cobos, you're absolutely right. 00:53:26.880 --> 00:53:31.130 We are building this. It's not that we are stuck. We 00:53:31.130 --> 00:53:33.739 are building a lot and we need to be cognizant about 00:53:33.739 --> 00:53:36.730 that going forward. But we're improving something that 00:53:36.730 --> 00:53:39.309 works, we're not improving something that's broken. 00:53:39.780 --> 00:53:42.219 And I think a key aspect of that, and you're keenly 00:53:42.219 --> 00:53:44.829 aware with this, Commissioner Glotfelty is that the 00:53:44.829 --> 00:53:48.739 other markets um, have multiple states, and within the 00:53:48.739 --> 00:53:51.349 market. Right? So multiple PUCs, and then you have 00:53:51.349 --> 00:53:55.150 to get certain approvals from FERG. Because we have 00:53:55.150 --> 00:53:58.099 just one PUC in Texas and we're not regulated by FERG. 00:53:58.099 --> 00:54:00.989 On these matters, you know, that's, that's, that's 00:54:00.989 --> 00:54:03.989 how we are much more efficient in transmission build 00:54:03.989 --> 00:54:06.619 out in Texas. And that's a very key distinction from 00:54:06.619 --> 00:54:10.030 the rest of the markets in the United States. So, um 00:54:10.039 --> 00:54:12.670 I thank you for your work on that. I think, you know 00:54:12.679 --> 00:54:15.880 um, as we sort of plan forward on kicking off, you know 00:54:15.880 --> 00:54:20.340 ERCOT starts reviewing economic projects. And um, resiliency 00:54:20.340 --> 00:54:22.349 as a plus factor and everything. I think it's important 00:54:22.349 --> 00:54:26.110 that, you know, um ERCOT Staff continues to, you know 00:54:26.119 --> 00:54:29.309 build up to whatever resources they need . To be able 00:54:29.309 --> 00:54:33.190 to more efficiently um, review those projects. And get 00:54:33.190 --> 00:54:37.260 things done within the 150 day deadline. Um in the, in 00:54:37.260 --> 00:54:40.730 the protocols. Um with respect to resiliency and you 00:54:40.730 --> 00:54:43.739 highlighted subsequent condensers and the voltage support 00:54:43.739 --> 00:54:47.150 they provide. As we have a huge State, with long lines 00:54:47.150 --> 00:54:49.670 that need that stability. I think one thing we got 00:54:49.670 --> 00:54:53.050 to be cognizant of um, that we looked at several years 00:54:53.050 --> 00:54:57.159 ago, was the interaction between subsequent condensers 00:54:57.170 --> 00:55:01.139 and um, inverter based technology, like solar. And the 00:55:01.139 --> 00:55:04.739 potential issues that can result there. Um, but as we 00:55:04.739 --> 00:55:08.130 look at um, you know, what can what equipment can be 00:55:08.139 --> 00:55:11.739 added to stabilize the system. I think that's, you 00:55:11.739 --> 00:55:13.619 know, something that I know the Commission looked at 00:55:13.619 --> 00:55:17.059 at nauseum a few years ago. Um and, so because we're 00:55:17.059 --> 00:55:20.130 gonna have a lot of solar on the system. And so FYI, 00:55:20.130 --> 00:55:25.920 Um, and um, and you mentioned the CCM process. I 00:55:25.920 --> 00:55:27.929 think we have had some discussions on it. We, we did 00:55:27.929 --> 00:55:31.550 a lot of research on what, um what, can be done on 00:55:31.550 --> 00:55:34.389 our end to make the CCM process more efficient. I know 00:55:34.389 --> 00:55:36.449 Connie we had some discussions, you know, maybe trimming 00:55:36.449 --> 00:55:39.599 down the environmental assessment requirements. Um. 00:55:39.610 --> 00:55:43.139 environmental assessment requirement and CCN application 00:55:43.139 --> 00:55:46.420 some. And there's some nicks we can make, you know, 00:55:46.420 --> 00:55:49.289 but the fact of the matter is with project that's deemed 00:55:49.289 --> 00:55:51.090 critical for reliability, you're not going to really 00:55:51.090 --> 00:55:54.230 be able to trim anything. Um, I think the trimming could 00:55:54.230 --> 00:55:57.619 come in the regular transmission projects, that um, come 00:55:57.619 --> 00:56:00.690 before the Commission. Where there could be some trimming 00:56:00.699 --> 00:56:04.210 um, and some procedures that can happen at the Commission 00:56:04.210 --> 00:56:06.480 to make things more efficient before we farm it out 00:56:06.480 --> 00:56:10.750 to refer the case out to SOAH. But, the but I 00:56:10.750 --> 00:56:13.849 do agree with you, I think the majority of the um, the 00:56:13.849 --> 00:56:17.309 time is taken probably at ERCOT, and with, with construction. 00:56:17.309 --> 00:56:19.880 But I'm happy to provide the analysis that we've come 00:56:19.880 --> 00:56:21.820 up with, and see if there's any nicking we can do on 00:56:21.820 --> 00:56:22.190 that. 00:56:24.980 --> 00:56:28.760 - Thank you. Hey Mr Chairman. While we're talking high 00:56:28.760 --> 00:56:32.889 level thoughts, um, in front of the public. Uh, do you 00:56:32.889 --> 00:56:36.280 have a thought on a federal permitting bill which gives 00:56:36.280 --> 00:56:41.070 FERC authority, uh, for citing transmission. And uh, do 00:56:41.070 --> 00:56:44.070 we need to discuss that today or I mean because it. 00:56:44.079 --> 00:56:48.980 - Can ERCOT? Uh anywhere in Texas, I mean we have four million customers 00:56:48.989 --> 00:56:53.190 in non ERCOT areas of Texas. Um and anyway, so this 00:56:53.190 --> 00:56:55.449 will be coming up, I hear in the lame duck session 00:56:55.449 --> 00:56:58.869 of Congress. And positions are being taken by Commissions 00:56:58.869 --> 00:57:02.929 all over the country in order to, you know, help inform 00:57:02.929 --> 00:57:05.650 their Congressional delegations. But, do you have a 00:57:05.650 --> 00:57:10.409 thought on it? Well, I believe that FERC has jurisdiction 00:57:10.420 --> 00:57:13.610 outside of our crop but not inside of our crop. Okay, but 00:57:13.610 --> 00:57:15.329 on sighting of transmission, because that's kind of 00:57:15.329 --> 00:57:22.619 a new thing for FERC. So I mean, as a uh, as 00:57:22.619 --> 00:57:26.500 a developer of interstate transmission lines, it's 00:57:26.500 --> 00:57:30.860 a very frustrating process. I think the fact that um, 00:57:30.869 --> 00:57:35.099 the issue that other states have is the federal government 00:57:35.099 --> 00:57:38.389 kind of trying to understand. And how they would cite 00:57:38.400 --> 00:57:42.579 all interstate lines and I think they're biting off 00:57:42.579 --> 00:57:45.900 more than they can chew. Me too. I really think that 00:57:45.909 --> 00:57:50.139 if we leave the bulk of the transmission sighting and 00:57:50.139 --> 00:57:54.519 process with the states, um that is the right approach. Okay. 00:57:54.530 --> 00:58:00.010 - But I do believe that there should be a single um, network 00:58:00.789 --> 00:58:04.699 overlay. I, I think FERC and Congress are speaking way 00:58:04.699 --> 00:58:07.679 too big. That they haven't defined the problem. If the 00:58:07.690 --> 00:58:12.400 if the problem that they're trying to solve is a sharing 00:58:12.400 --> 00:58:15.750 of resources across our entire country. You don't need 00:58:15.750 --> 00:58:18.349 multiple networks to do that. You need one large HVDC 00:58:18.349 --> 00:58:21.969 network to do it. That would be one set of lines 00:58:21.980 --> 00:58:25.429 you know, that would connect, you know, those resources 00:58:25.429 --> 00:58:30.309 and those uh those loads. So I think, I think everybody 00:58:30.309 --> 00:58:32.670 seems to be fighting about a big problem that's really 00:58:32.670 --> 00:58:35.900 only one line. And we can still talk about that, but 00:58:35.909 --> 00:58:40.400 um, it's still gonna be a ways before. Um I mean, uh 00:58:40.400 --> 00:58:45.250 and in uh, in full disclosure, I was the one who helped 00:58:45.250 --> 00:58:47.690 write the national interest electric transmission corridor 00:58:47.690 --> 00:58:51.480 language. That was initially in the in the 2005 Act. 00:58:51.489 --> 00:58:56.300 Because we couldn't get states to um, look outside their 00:58:56.300 --> 00:58:59.019 borders even. As our TOs were growing outside their 00:58:59.019 --> 00:59:02.599 borders. So, um but this is an amplification of that 00:59:02.599 --> 00:59:05.059 as I understand it, kind of what they're attempting 00:59:05.059 --> 00:59:10.590 to designate. You know, I think the way that it was 00:59:10.599 --> 00:59:15.050 implemented initially. Uh, so we we passed this in 2005, 00:59:15.050 --> 00:59:18.610 and exactly zero projects have been built utilizing 00:59:18.610 --> 00:59:23.409 that, that that that language. So, um I don't know 00:59:23.420 --> 00:59:27.719 if it is a huge expanse of growth or not. But this 00:59:27.719 --> 00:59:30.139 doesn't solve the cost allocation issue that has to 00:59:30.150 --> 00:59:35.099 be resolved, in that in that debate also. So, um you 00:59:35.099 --> 00:59:38.610 know, I think that the vast majority of the sighting 00:59:38.610 --> 00:59:41.750 decisions ought to be at the State level. 00:59:41.760 --> 00:59:44.469 - To your question Commissioner McAdams, I'm highly confident 00:59:44.480 --> 00:59:48.460 that we always prefer our Legislature to make those 00:59:48.460 --> 00:59:52.179 decisions. Uh, and keep as much authority and decision 00:59:52.179 --> 00:59:55.739 making, uh, with our, our Legislature and Governor. Uh, 00:59:55.750 --> 00:59:56.940 and less of it in D.C. 01:00:00.000 --> 01:00:02.699 Alright, there's no formal action on this item. Commissioner 01:00:02.699 --> 01:00:07.119 Glotfelty, always appreciate the updates. And uh, more 01:00:07.119 --> 01:00:10.519 importantly appreciate your leadership on all things 01:00:10.519 --> 01:00:14.699 transmission. And of course, you bring a wealth of experience 01:00:14.699 --> 01:00:17.210 to bear, both in the public and private sector on that. 01:00:17.219 --> 01:00:20.889 So, thank you for spearheading all of those efforts. 01:00:21.539 --> 01:00:25.099 No formal action item 18,(item:19:TRE and NERC discussion) which brings us to item 01:00:25.110 --> 01:00:29.059 19. Very quickly. Thank you, Woody. Very quickly, I just 01:00:29.059 --> 01:00:33.480 wanted to say that as the uh, designated board member 01:00:33.480 --> 01:00:35.960 for the Texas Regional Entity. They haven't had much 01:00:35.960 --> 01:00:40.650 of a presence here. I've noticed. Um, and we're trying to change that. 01:00:40.659 --> 01:00:45.559 Um, uh both Chris Echo, from OPEC and I currently sit 01:00:45.559 --> 01:00:48.380 on that board. Um, but I've invited Jim Albright to come 01:00:48.380 --> 01:00:51.059 talk to us about the, what's going on at NERC. And 01:00:51.059 --> 01:00:53.210 what's going on within the Texas Regional Entity at 01:00:53.210 --> 01:00:56.159 the next meeting. Um, some of those things that I've 01:00:56.159 --> 01:00:59.730 asked him to talk about are, um, inverter based resources 01:00:59.730 --> 01:01:03.389 and what Mark is doing in terms of new rules to ensure 01:01:03.389 --> 01:01:09.170 that IBRs, um, do not have um, voltage problems 01:01:09.170 --> 01:01:11.829 on the system. So can we use different types of inverters 01:01:11.829 --> 01:01:15.329 that are good forming. Um, or they just are they helping 01:01:15.329 --> 01:01:17.099 the system, are they just drawing from the system? 01:01:17.110 --> 01:01:19.690 So he'll, he'll talk to us about the reports that have 01:01:19.690 --> 01:01:23.280 come out. Um and the new rules that that NERC has been 01:01:23.280 --> 01:01:25.940 working on for inverter based resources. And I think 01:01:25.940 --> 01:01:29.159 it'll be, there'll be no action on it. Um, but I just 01:01:29.159 --> 01:01:30.940 want the Commission to be informed of what's going 01:01:30.940 --> 01:01:35.269 on at that level, and in that side of the business. Uh, very 01:01:35.269 --> 01:01:38.750 much look forward to hearing anything at all from them. 01:01:38.929 --> 01:01:42.789 And especially on the inverter based resources as Commissioner 01:01:42.789 --> 01:01:46.269 Cobos acknowledged earlier. With the extraordinary amount 01:01:46.269 --> 01:01:50.789 of wind and solar, we've got that's a huge issue that 01:01:50.789 --> 01:01:54.719 is growing rapidly, that needs to be addressed. Look 01:01:54.719 --> 01:01:58.239 forward to look forward to that. No formal action item 01:01:58.239 --> 01:02:01.039 19. We don't have anything on 20 or 21. Which brings 01:02:01.039 --> 01:02:06.960 us to item 22, Mr. Journeay. (item:22:52935) Item 22 is project 52935, 01:02:06.969 --> 01:02:09.639 is the calendar year 2020 Rule Making Calendar. 01:02:12.260 --> 01:02:15.690 No formal action on this item, but with the adoption of 01:02:15.699 --> 01:02:22.519 today's rule. I want to recognize that at this point 01:02:22.530 --> 01:02:27.760 we have completed a total of 22 rulemaking since the 01:02:27.760 --> 01:02:32.380 end of last session. Which is at least three times the 01:02:32.380 --> 01:02:36.849 amount that this agency does. And we've done it with 01:02:36.860 --> 01:02:38.969 three times the amount of work on rule making with 01:02:38.969 --> 01:02:42.800 the same Staff. Which is an extraordinary amount of 01:02:42.800 --> 01:02:47.440 accomplishments. Uh, I know there's been a lot of vacations 01:02:47.440 --> 01:02:50.809 and holidays missed to get that done. The Legislature, 01:02:50.820 --> 01:02:54.909 Legislature gave us a heavy burden to carry a lot of 01:02:54.909 --> 01:02:58.809 work to get done. And it is outstanding that this Staff 01:02:58.809 --> 01:03:02.849 has gotten that done in time for this session. So big 01:03:02.849 --> 01:03:04.809 thanks to everybody in rules and projects, and all the 01:03:04.809 --> 01:03:09.639 subject matter experts. It knocked it out uh, apologies 01:03:09.639 --> 01:03:14.170 to Smeltzers new kid. Who spent a lot of nights uh, stepping 01:03:14.170 --> 01:03:20.809 on his keyboard. And uh, want to also acknowledge the 01:03:20.809 --> 01:03:25.320 fact that, this agency needs more resources. I got a 01:03:25.320 --> 01:03:27.909 question from the Media about that yesterday in our 01:03:27.909 --> 01:03:31.690 press conference. Uh, the Sunset Report acknowledges that 01:03:31.690 --> 01:03:34.880 this agency needs more resources. The Media has noticed 01:03:34.889 --> 01:03:38.519 and observed. This agency needs more resources. Uh, 01:03:38.530 --> 01:03:41.630 while, while this team of folks has done extraordinary 01:03:41.630 --> 01:03:46.000 work in a short amount of time. Uh we, we need to 01:03:46.000 --> 01:03:49.539 give them some help. I know the Legislature is hearing 01:03:49.539 --> 01:03:53.469 that message. So we, we need more resources. We know 01:03:53.469 --> 01:03:56.150 what happens when we don't have the resources we need. 01:03:56.159 --> 01:04:00.119 Uh, and so look forward to having that discussion as 01:04:00.119 --> 01:04:04.260 we get into session. Most importantly, uh sincere and 01:04:04.260 --> 01:04:06.679 heartfelt thanks to you all for a tremendous amount 01:04:06.679 --> 01:04:09.360 of work. And a great, great deal of accomplishments. 01:04:18.500 --> 01:04:21.460 Connie started clapping, do what Connie says. 01:04:22.980 --> 01:04:28.760 Alright, No, no formal action but many thanks. We don't 01:04:28.760 --> 01:04:32.989 have anything on item 23. (item:24:Sunset Commission update) We do have an update from 01:04:32.989 --> 01:04:36.980 our Executive Director on item 24. Thank you. Mr. Chairman. 01:04:36.980 --> 01:04:40.010 Good morning Commissioners. Um, I'll start with Sunset, 01:04:40.010 --> 01:04:42.929 since you mentioned that Chairman. Our comments and 01:04:42.929 --> 01:04:46.349 replies to the Sunset Staff reporter due today, Will 01:04:46.349 --> 01:04:48.400 be filing those by three o'clock. I want to thank you 01:04:48.400 --> 01:04:52.190 all for your input on our responses. Thanks Staff for 01:04:52.199 --> 01:04:54.650 all the tireless work over the last year to get us 01:04:54.650 --> 01:04:59.050 to this point. Um, as you mentioned, you know, we have 01:04:59.050 --> 01:05:02.440 a resource issue here. And other sister agencies have 01:05:02.449 --> 01:05:06.300 what I would call the luxury of dedicating staff just 01:05:06.300 --> 01:05:08.730 to work on Sunset. We don't have that luxury here. 01:05:08.739 --> 01:05:11.530 Uh, so I want to thank Staff and in particular Tom Hunter, 01:05:11.530 --> 01:05:14.340 who has led our efforts with Sunset. You know, a decade 01:05:14.340 --> 01:05:17.079 ago when we last went through the Sunset process. He 01:05:17.079 --> 01:05:19.369 and I led that effort. And he has done that by himself 01:05:19.369 --> 01:05:22.900 this time coordinating everything. Um and, and he has 01:05:22.900 --> 01:05:25.239 a lot of other jobs to around here, including making 01:05:25.239 --> 01:05:28.820 sure that I stay out of trouble legally. So uh, it's 01:05:28.820 --> 01:05:31.510 a it's a heavy burden. And as you all saw in the 01:05:31.510 --> 01:05:33.579 Sunset Staff Report, they're recommending six years 01:05:33.579 --> 01:05:36.449 for us. So um, Tom doesn't know it yet but we'll be 01:05:36.449 --> 01:05:39.159 working on, a on a way to keep him, keep 01:05:39.159 --> 01:05:41.449 him around. Or a way to bring him back in six years. 01:05:41.460 --> 01:05:44.289 Uh, to be able to work on this again. So I want 01:05:44.289 --> 01:05:46.309 to thank everybody. And like I said, also you all for 01:05:46.309 --> 01:05:48.960 your input on our responses. I appreciate that. And, 01:05:48.960 --> 01:05:51.980 Tom is truly one of the hidden treasures of this agency 01:05:51.989 --> 01:05:55.230 - Absolutely a regulatory treasure, if ever there was 01:05:55.230 --> 01:05:59.250 one. And uh and secondly, you know as we're always 01:05:59.260 --> 01:06:03.679 trying here to attract talented, capable Staff. To, to 01:06:03.679 --> 01:06:07.320 improve upon the work that we do, dare I say improve 01:06:07.320 --> 01:06:12.489 our agency staffs resilience. Um, happy to announce 01:06:12.489 --> 01:06:15.210 that Jess she is filling out her GR Team has 01:06:15.210 --> 01:06:19.780 hired a new Deputy Director of GR, Brooke Commit, from 01:06:19.789 --> 01:06:23.070 OPUC, will be joining us tomorrow. Brooks, right there. 01:06:23.079 --> 01:06:27.530 And you know, this continues a recent trend of us being 01:06:27.530 --> 01:06:30.539 successful in attracting talented Staff from other 01:06:30.539 --> 01:06:32.519 agencies. Not just at the Staff level of course, but 01:06:32.519 --> 01:06:35.960 also at the Commissioner level. So we hope to to continue 01:06:35.960 --> 01:06:39.889 that going forward. So we're filling out our team heading 01:06:39.889 --> 01:06:42.110 into the next Legislative session and, and very happy 01:06:42.110 --> 01:06:45.409 that Brooke is coming aboard. Very thrilled, very excited 01:06:45.409 --> 01:06:48.019 to have her. Welcome aboard, Brooke. Look forward to working 01:06:48.019 --> 01:06:51.099 with you all. Um, you and Jess, as we go into this Legislative 01:06:51.099 --> 01:06:55.260 session. I appreciate the update. I don't have anything 01:06:55.260 --> 01:06:58.360 else for our agenda today and we will not go into closed 01:06:58.369 --> 01:07:00.630 session today. So there being no further business to 01:07:00.630 --> 01:07:02.809 come before the Commission, this meeting of the Public 01:07:02.809 --> 01:07:06.670 Utility Commission of Texas, is hereby adjourned.