WEBVTT 00:00:05.719 --> 00:00:08.310 Good morning. (item:0.1:Chairman Lake calls meeting to order) This meeting of the Public Utility Commission 00:00:08.319 --> 00:00:10.198 of Texas will come to order. To consider matters that 00:00:10.210 --> 00:00:12.500 have been duly posted with the Secretary of State of 00:00:12.509 --> 00:00:16.839 Texas for May 11, 2023. For the record, my name is 00:00:16.850 --> 00:00:20.510 Peter Lake and I'm joined today by Will McAdams, Lori 00:00:20.728 --> 00:00:26.699 Cobos, Jimmy Glotfelty and Kathleen Jackson. Mr. Journeay, could you please walk us through the Consent Items 00:00:26.708 --> 00:00:30.109 on today's Agenda. Good morning, Commissioners. (item:0.1:Chairman Lake asks for motion to approve items on Consent Agenda) By individual 00:00:30.120 --> 00:00:32.899 ballot, following items were placed on your Consent Agenda. 00:00:33.368 --> 00:00:38.298 4-9, 11, 14, 15, 17, 18 and 23. Is there 00:00:38.310 --> 00:00:40.250 a motion to approve the items just described by Mr. 00:00:42.000 --> 00:00:45.649 Journeay? So moved. Second. A motion and a second. All in favor, say aye. Aye. None opposed. 00:00:45.658 --> 00:00:49.478 Motion passes. (item:1:Chairman Lake lays out instructions for public comment) We'll start with Public Comment. Oral 00:00:49.490 --> 00:00:51.668 comments related to specific Agenda Items will be heard 00:00:51.679 --> 00:00:53.908 when the item is taken up. This is for general comments 00:00:53.918 --> 00:00:58.098 only. When we do get to oral comments on specific items. 00:00:58.109 --> 00:01:00.359 Stakeholders should not approach the table unless oral 00:01:00.368 --> 00:01:03.020 argument has been granted or they have been invited 00:01:03.029 --> 00:01:05.930 by a Commissioner. Speakers will be limited to 3 00:01:05.939 --> 00:01:09.058 minutes each as always. (item:1:Mr. Journeay confirms there are no public comments) Mr. Journeay, do we have anyone 00:01:09.069 --> 00:01:12.344 from the public signed up to speak? No, sir. No one signed up this 00:01:12.513 --> 00:01:15.704 morning. Thank you, sir. Public Comment is now closed. 00:01:16.694 --> 00:01:19.385 Will you bring up the next item on our Agenda, please sir? 00:01:19.814 --> 00:01:23.105 (item:2:51646, STM for of Vista Ranch Water Supply Corp. & Aqua Water Supply Corp.) Item 2 is Docket 51646, the application of Waters 00:01:23.114 --> 00:01:26.135 of Vista Ranch Water Supply Corporation and Aqua Water 00:01:26.144 --> 00:01:30.105 Supply Corporation. For an STM of facilities and certificate 00:01:30.114 --> 00:01:32.924 rights in Fayette County. A proposed order was filed 00:01:32.933 --> 00:01:35.844 on March 26th. Commissioner Jackson has a memo and 00:01:35.855 --> 00:01:41.519 I have a memo with proposed agenda. Thank you, sir. Uh, so Mrs. Jackson 00:01:41.528 --> 00:01:44.379 has a memo. Would you like to lay out for us? Okay. 00:01:44.388 --> 00:01:47.769 Thank you very much. (item:2:51646, Commissioner Jackson lays out her memo) Um, I have concerns with the present 00:01:47.778 --> 00:01:50.680 record. Uh, whether it's sufficient to approve the requested 00:01:50.689 --> 00:01:54.290 CCN amendment. And I would recommend remanding this 00:01:54.299 --> 00:01:57.599 case for additional information. Regarding the applicants 00:01:57.609 --> 00:02:00.609 sale and transfer of all facilities and certified service 00:02:00.620 --> 00:02:04.959 area under Vista Ranches CCN Aqua. The record is unclear as to 00:02:04.969 --> 00:02:08.669 whether Vista Ranch's CCN is a facilities only CCN or a 00:02:08.679 --> 00:02:12.199 bounded service area CCN. And this should be clarified. 00:02:12.399 --> 00:02:16.240 The applicants proposed amendment would add 4,815 acres 00:02:16.250 --> 00:02:19.580 to Aqua Water service area in Fayette County. However, 00:02:19.588 --> 00:02:22.399 it's not clear from Aqua's revised maps that were filed 00:02:22.409 --> 00:02:27.080 on May 23, 2021. Or other evidence that Aqua has addressed 00:02:27.088 --> 00:02:30.854 the statute requirement for its entire requested area. 00:02:31.074 --> 00:02:33.335 For areas where facilities are needed to provide the 00:02:33.344 --> 00:02:36.094 requested service, but are not yet fully constructed. 00:02:36.485 --> 00:02:38.985 Aqua must file a capital improvements plan, including 00:02:38.993 --> 00:02:42.844 a budget and estimated timeline for construction. Of 00:02:42.854 --> 00:02:45.713 all facilities necessary as required by the Texas Water 00:02:45.724 --> 00:02:49.004 Code. While Aqua has filed a capital improvements plan. 00:02:49.024 --> 00:02:52.054 It did not include an estimated timeline for construction 00:02:52.064 --> 00:02:55.054 of all facilities necessary. To provide service to the 00:02:55.064 --> 00:02:58.389 entire required area. For any portion of its requested 00:02:58.399 --> 00:03:02.258 CCN area that do not have customers. Existing facilities 00:03:02.270 --> 00:03:05.179 or plans for building facilities to serve future customers. 00:03:05.679 --> 00:03:08.679 Aqua must address the need for additional service, including 00:03:08.689 --> 00:03:11.300 whether any landowners, prospective landowners, tenants 00:03:11.308 --> 00:03:13.969 or residents have made written application or requests 00:03:13.979 --> 00:03:16.819 for service. The record is also unclear as to whether 00:03:16.830 --> 00:03:19.229 notice was mailed to each owner of a tract of land. 00:03:19.240 --> 00:03:22.080 That is at least 25 acres and is wholly or partially 00:03:22.088 --> 00:03:24.659 included in the area proposed to be certified. The 00:03:24.669 --> 00:03:27.169 applicants could should supplement the record with 00:03:27.179 --> 00:03:29.538 evidence sufficient to show. That the notice requirements 00:03:29.550 --> 00:03:32.808 and statute have been met. Finally, Aqua's revised maps 00:03:32.819 --> 00:03:38.360 that were filed on May 23, 2021. For the reduced 5,496 00:03:38.368 --> 00:03:43.528 area acre, acres that are requested um, area. Uh, have 00:03:43.538 --> 00:03:46.270 the same deficiencies as those identified in the maps 00:03:46.278 --> 00:03:49.000 originally filed with the application. The applicants 00:03:49.008 --> 00:03:51.368 should supplement the record. To provide maps of the 00:03:51.379 --> 00:03:57.179 5,496 acre requested area. That are consistent in detail 00:03:57.189 --> 00:04:00.659 with what the Administrative Law just required, in order 00:04:00.669 --> 00:04:03.800 No. 2. And with that, I would recommend that we 00:04:03.808 --> 00:04:06.258 remand this application to Docket Management. 00:04:08.020 --> 00:04:11.819 Well stated, through and comprehensive as always. Uh, everything 00:04:11.830 --> 00:04:15.639 you said in the following memo makes sense to me. Uh, any 00:04:15.750 --> 00:04:18.949 other thoughts or comments. (item:2:51646, Commissioner McAdams' comments on Commissioner Jackson's memo) I, I sincerely appreciated that memo. Um, 00:04:18.959 --> 00:04:23.970 shared the same concerns. Uh thought we, we. We're trying 00:04:23.980 --> 00:04:27.369 to establish consistency um, in our application of the 00:04:27.379 --> 00:04:32.119 Water Code and our own um, substantive rules. And so uh, that 00:04:32.129 --> 00:04:36.949 memo helps establish and uh, affirm expectations for our 00:04:36.959 --> 00:04:40.410 industry. To attempt to comply with in future filings. 00:04:40.420 --> 00:04:43.160 So I think this is a very good uh, timely memo and I 00:04:43.170 --> 00:04:48.250 would support uh, the parameters outlined in it. Agreed. 00:04:49.028 --> 00:04:50.459 The same. Agreed. All right. 00:04:52.619 --> 00:04:55.369 You have a motion for us? (item:2:51646, Motion to approve amendment to application) I would move to amend this application to Docket 00:04:55.379 --> 00:04:58.569 Management. And order that Aqua Texas provide information 00:04:58.579 --> 00:05:00.559 demonstrating that it has addressed the statutory and 00:05:00.569 --> 00:05:03.778 real requirements, to qualify for a CCN amendment. That 00:05:03.790 --> 00:05:06.759 includes the entire requested area. We have a motion. Is there 00:05:06.769 --> 00:05:11.410 a second? Second. A motion and a second. All in favor, say aye. Aye. None opposed. 00:05:11.420 --> 00:05:12.338 Thank you, Mrs. Jackson. 00:05:14.579 --> 00:05:18.329 Thank you. Thank you. Next item, please. (item:3:53561, application for Aqua Texas to amended CCN in Henderson County) Item 3 is Docket 53561 is the application 00:05:18.338 --> 00:05:22.730 of Aqua Texas to amended CCN in Henderson County. A 00:05:22.750 --> 00:05:25.548 proposed order was filed April 4. Uh, Commissioner 00:05:25.559 --> 00:05:31.389 Jackson has a memo. Mrs. Jackson? (item:3:53561, Commissioner Jackson lays out her memo) Um, I have 2 primary 00:05:31.399 --> 00:05:36.170 concerns, um with the application. Uh, the sufficiency 00:05:36.178 --> 00:05:39.079 of the record to support Aqua's CCN amendment and the 00:05:39.088 --> 00:05:41.480 discrepancy of the maps in the record. And I would 00:05:41.488 --> 00:05:44.678 recommend remaining this case for additional information. 00:05:45.269 --> 00:05:50.600 Aqua's proposed amendment would add 944, 994 acres to Aqua's 00:05:50.608 --> 00:05:53.559 water service area in Henderson County. It's not clear 00:05:53.569 --> 00:05:56.889 from Aqua's revised need for service map or other evidence. 00:05:56.899 --> 00:05:59.238 That Aqua Texas has addressed the statute requirement 00:05:59.250 --> 00:06:02.819 for the entire requested area. Aqua's revised need for 00:06:02.829 --> 00:06:07.028 service map filed on June 23, 2022. Is inconsistent 00:06:07.040 --> 00:06:11.088 with its map filed on May 4, 2022. Titled to my buffer 00:06:11.100 --> 00:06:14.970 with cities and water CCN's. Aqua should clearly designate 00:06:14.980 --> 00:06:17.988 all areas that have existing infrastructure for water 00:06:18.000 --> 00:06:20.798 service. For areas where facilities are needed to provide 00:06:20.809 --> 00:06:23.980 the requested service, but are not yet fully constructed. 00:06:24.028 --> 00:06:26.290 Aqua must file a capital improvements plan, including 00:06:26.298 --> 00:06:28.559 a budget and estimated timeline for construction of 00:06:28.569 --> 00:06:31.379 all facilities necessary, as required by the Texas Water 00:06:31.389 --> 00:06:34.439 Code. If Aqua is proposing a substantial addition to 00:06:34.449 --> 00:06:37.540 its CCN requiring capital improvements, in excess of 00:06:37.569 --> 00:06:41.410 $100,000. Aqua must provide sufficient financial assurance, 00:06:41.420 --> 00:06:44.298 as required under Commission rules. For any remaining 00:06:44.309 --> 00:06:47.410 portions within its requested service area. Aqua must 00:06:47.420 --> 00:06:50.600 address the need for additional service, including whether 00:06:50.608 --> 00:06:52.970 any landowners, prospective landowners, tenants or 00:06:52.980 --> 00:06:56.369 residents have made a written application for requests for service. 00:06:56.379 --> 00:06:59.480 For these reasons. I would uh, recommend remanding this 00:06:59.528 --> 00:07:04.139 case. Thank you, ma'am. All, all makes sense to me. Any 00:07:04.559 --> 00:07:07.910 thoughts, comments? No. Thank you again, for this memo as well. 00:07:08.269 --> 00:07:10.980 It's a good framework. (item:3:53561, Commissioner McAdam's comments on Commissioner Jackson's memo) Similar to my thoughts on the 00:07:10.988 --> 00:07:14.209 last one, and I'd like to point out. We depend on companies 00:07:14.220 --> 00:07:18.048 like Aqua, to sort of set the standard. Uh, as we try to 00:07:18.059 --> 00:07:21.209 uh establish the consistency with the, within the law 00:07:21.220 --> 00:07:23.819 and the rules. So, we appreciate their diligence on 00:07:23.829 --> 00:07:26.970 this and their engagement on reman, to try to answer 00:07:26.980 --> 00:07:29.290 these questions. Um. (item:3:53561, Chairman Lakes comments on Commissioner Jackson's memo) That's a good point. 00:07:31.059 --> 00:07:36.988 Uh, yes. Consistency and sticking to the standards is 00:07:37.000 --> 00:07:39.480 important. And companies like this are important to 00:07:39.488 --> 00:07:42.809 the future of water in Texas. That they've got gotta 00:07:42.819 --> 00:07:47.548 stick to the standards. That's right. Yeah, well put. Do we have a motion, motion 00:07:47.559 --> 00:07:50.428 for us Mrs. Jackson? (item:3:53561, Motion to remand application to docket management) I would move to remand this application 00:07:50.439 --> 00:07:53.048 to Docket Management. In order that Aqua Texas provide 00:07:53.059 --> 00:07:54.970 information demonstrating that it has addressed the 00:07:54.980 --> 00:07:57.920 statutory and real requirements. To qualify for a CCN 00:07:57.928 --> 00:08:00.759 amendment, that includes the entire requested area. 00:08:01.230 --> 00:08:04.899 Second. Gotta motion and a second. All in favor, say aye. Aye. None 00:08:05.000 --> 00:08:07.338 opposed. Motion passes. Thank you, Mrs. Jackson again. 00:08:08.600 --> 00:08:11.319 Great job. Next item, please sir. I don't believe we have anything 00:08:11.329 --> 00:08:17.838 for Items 10 or 12. Takes us to (item:13:53766, application for Southwestern Public Service Co. to implement a net surcharge) Item 13, Docket 53766. 00:08:17.879 --> 00:08:20.920 The application of Southwestern Public Service Company 00:08:20.928 --> 00:08:25.019 for authority to implement a net surcharge, uh associated 00:08:25.028 --> 00:08:28.778 with Docket 51802. Uh, Commissioner Cobos has recused 00:08:28.790 --> 00:08:31.949 herself from this matter. Proposal for decision was 00:08:31.959 --> 00:08:35.418 filed March 28. The ALJ did not file any changes 00:08:35.428 --> 00:08:38.658 in response to exceptions. I have a memo with proposed 00:08:38.668 --> 00:08:41.058 changes to the proposal for decision. 00:08:43.808 --> 00:08:48.558 Thank you, sir. Thoughts, comments on this one. Well, uh I 00:08:48.570 --> 00:08:52.629 I think I'll try to set the table. Sure. (item:13:53766, Commissioner McAdams' comments on Southwestern Public Service Co. application) Um, as a starting 00:08:52.639 --> 00:08:57.538 point. I, I would support the PFDs uh 1.86% um, for 00:08:57.548 --> 00:09:01.279 the debt rate in this matter. And uh, let me describe 00:09:01.288 --> 00:09:04.950 kind of the, the rationale behind that. SPS is a short 00:09:04.960 --> 00:09:08.700 term debt rate of 1.86%. In my view, most closely 00:09:08.710 --> 00:09:12.729 matches the length of time that SPS will carry the 00:09:12.739 --> 00:09:15.989 the surcharge balance, which is about 2.5 years. And 00:09:16.000 --> 00:09:19.239 I think that's an important distinction. In terms of 00:09:19.330 --> 00:09:23.629 the arguments made within the filing. Um that, that 00:09:23.639 --> 00:09:30.408 promote a more long term rate. And so uh, I do not 00:09:30.418 --> 00:09:34.279 favor using the long term debt rate of 4.2%. As SPS's 00:09:34.288 --> 00:09:37.389 long term debt rate typically has a maturity period 00:09:37.399 --> 00:09:41.548 of 30 years. And so to me, it's a bit of apples 00:09:41.558 --> 00:09:44.830 to oranges. But you could certainly see why people 00:09:44.840 --> 00:09:49.879 are interested. Whatever we come to and whatever the 00:09:49.889 --> 00:09:51.918 prevailing will of the body is. I just want us to be 00:09:51.928 --> 00:09:54.889 consistent moving forward. I seem to be saying that 00:09:54.899 --> 00:09:59.619 a lot this morning. But I think we'll face this for 00:09:59.629 --> 00:10:02.750 other utilities as well. And as long as we collectively 00:10:02.759 --> 00:10:04.690 have an agreement, this is how we're going to apply 00:10:04.700 --> 00:10:09.308 these certain circumstances, uh with these rates of return. 00:10:09.820 --> 00:10:12.369 It's better for the system and managing expectations. 00:10:12.379 --> 00:10:14.408 So I,I many thoughts on this. 00:10:16.529 --> 00:10:19.058 (item:13:53766, Chairman Lake's comments on Southwestern Public Service Co. application) Thanks for setting the stage for us. And uh, 00:10:20.590 --> 00:10:24.178 the theme of consistency is worth is important enough 00:10:24.190 --> 00:10:28.229 that it's worth repeating. And it's better for the Commission 00:10:28.239 --> 00:10:30.629 Staff, Legislature and most importantly, our industry. 00:10:30.639 --> 00:10:33.340 The more consistent and clear we are with that, the 00:10:33.349 --> 00:10:37.369 better. Um, so from what I heard. You you're, you're 00:10:37.379 --> 00:10:41.629 good with the 1.86%? Yes, sir. Just under the distinction 00:10:41.639 --> 00:10:45.119 that it's a more short term application. For short term. 00:10:45.450 --> 00:10:48.058 It's taking the actual short term interest rate, on 00:10:48.070 --> 00:10:52.489 the actual short term debt. And. Applying it. Whatever that is, grab 00:10:52.500 --> 00:10:55.558 that number and apply it. Because it is the most similar 00:10:55.570 --> 00:11:00.940 timeframe. That's my view, sir. Agree with that, as well. Uh, well 00:11:00.950 --> 00:11:04.969 well put. Any thoughts, comments? I support 1.86% as 00:11:04.979 --> 00:11:06.460 well. I do as well. 00:11:08.229 --> 00:11:09.229 Oh, you're recused. 00:11:11.769 --> 00:11:16.729 Uh, Commissioner Cobos says no comments on that. I was looking 00:11:16.759 --> 00:11:17.080 at you. 00:11:19.428 --> 00:11:23.619 With that, Mr. Chairman. Do you have a motion? (item:13:53766, Motion to approve PFD) I would move to adopt the PFD. Second. Gotta motion and second. All 00:11:23.629 --> 00:11:28.379 in favor, say aye. Aye. None opposed. The motion passes. Thank 00:11:28.389 --> 00:11:30.538 you, Commissioner McAdams. Expected more push back on that. 00:11:32.359 --> 00:11:37.639 Next item, please Mr. Journeay. (item:16:54605, application for El Paso Electric Company to amended CCN, Generation unit 6, Newman Station) Item 16 is Docket 54605. 00:11:37.649 --> 00:11:39.668 It's the application of El Paso Electric Company to 00:11:39.678 --> 00:11:43.308 amend it CCN. Regarding Generation unit 6, Newman Generation 00:11:43.320 --> 00:11:46.969 Station. A draft preliminary order was filed on May 00:11:46.979 --> 00:11:47.609 10. 00:11:50.658 --> 00:11:55.690 Uh, this is something we've seen recently. Um I don't, 00:11:55.700 --> 00:11:58.038 I don't know if it's extremely complicated or extremely 00:11:58.048 --> 00:12:01.129 straightforward. But would love to hear y'alls thoughts 00:12:01.139 --> 00:12:06.950 on it. I'm hoping for the latter. Don't you represent these people? I was gonna say. (item:16:54605, Commissioner Glotfelty's comments on El Paso's CCN application) Seems straight 00:12:06.960 --> 00:12:09.700 forward to me. Sounds like part of the Western market. I think uh. I think we 00:12:09.710 --> 00:12:12.940 issue a CCN for the entirety of the project. And, um. 00:12:14.029 --> 00:12:18.690 You think we did issue? We did, that's right. I agree. Um, and uh 00:12:18.700 --> 00:12:23.428 therefore the application should be withdrawn or dismissed. 00:12:23.440 --> 00:12:27.070 And, um you know we'll have another proceeding for 00:12:27.080 --> 00:12:30.700 the right impact. But, um this becomes moot. If we 00:12:30.710 --> 00:12:33.058 accept the fact that we've, uh already certificated 00:12:33.070 --> 00:12:35.229 the entire project. (item:16:54605, Commissioners McAdams, Cobos, Jackson & Chairman Lakes agreement with comments) Great minds think alike. 00:12:36.750 --> 00:12:39.389 I agree with Commissioner Glotfelty. It's straightforward 00:12:39.399 --> 00:12:45.450 in my opinion. I agree as well. All right. Uh, it all 00:12:45.460 --> 00:12:51.009 makes sense to me. Like elegance and simplicity. So uh, I move in accordance 00:12:51.019 --> 00:12:54.750 with my discussion. (item:16:54605, Motion to approve as per discussion) So if your discussion is, would 00:12:54.759 --> 00:12:58.428 you move. Uh, to allow El Paso Electric 10 days to 00:12:58.440 --> 00:13:01.428 withdraw the application. Or failing that, Docket Management 00:13:01.440 --> 00:13:04.038 is directed to prepare a PFD dismissing the proceeding? 00:13:04.090 --> 00:13:07.869 That's exactly what my motion was gonna be. All right. I would second 00:13:07.889 --> 00:13:13.450 that. We, we've got a, a very articulate motion and 00:13:13.460 --> 00:13:19.558 a robust, robust second and an echo. Uh, the motion 00:13:19.570 --> 00:13:22.389 and a second. Uh, all in favor, 00:13:23.908 --> 00:13:26.739 say aye. Aye. None opposed. Motion passes. Mr. Chairman, I just want to let 00:13:26.750 --> 00:13:28.658 you know. This matters it so, I'll request that they 00:13:28.668 --> 00:13:31.029 return this matter to us. So that we can deal with this. 00:13:31.399 --> 00:13:31.570 Thank you, 00:13:33.599 --> 00:13:37.538 sir. Next item, please. I think we don't have anything until 00:13:37.548 --> 00:13:40.940 28. Um, 00:13:43.200 --> 00:13:46.119 (item:28:Chairman Lake lays out information regarding state and federal Legislation) regarding state and federal Legislation, etcetera. 00:13:46.129 --> 00:13:49.369 FERC recently issued notice of proposed rulemaking regarding 00:13:49.379 --> 00:13:52.418 national transmission corridors. That would affect the 00:13:52.428 --> 00:13:56.750 areas outside of ERCOT. So Tom Hunter is here to lay 00:13:56.759 --> 00:14:01.308 out the issue for us. Good morning Chairman, Commissioners. (item:28:Tom Hunter, Special Counsel with PUCT concerning draft comments) Uh, before 00:14:01.320 --> 00:14:05.690 you today is draft comments in response to the FERC NOPR. Relating 00:14:05.700 --> 00:14:09.820 to permitting authority under the recent amendments 00:14:09.830 --> 00:14:15.288 to the Federal Power Act. Essentially, we are um urging 00:14:15.298 --> 00:14:19.389 that FERC allow state authority states to continue to 00:14:19.399 --> 00:14:21.759 allow their processes to go forward. They work very 00:14:21.769 --> 00:14:25.029 well, particularly in Texas as you all well know. And 00:14:25.038 --> 00:14:28.048 we are asking that FERC refrain from frankly from interfering 00:14:28.058 --> 00:14:31.889 in those processes prematurely. As is contemplated in 00:14:31.899 --> 00:14:35.259 the, in OPR. So um, be happy to answer any 00:14:35.269 --> 00:14:36.450 questions about the draft comments. 00:14:39.129 --> 00:14:42.349 (item:28:Commissioner Cobos' thoughts on draft comments) Um thank you, Tom for assisting us with that. Of, as 00:14:42.359 --> 00:14:45.639 you may know. Uh, our outside counsel, FERC outside counsel 00:14:45.649 --> 00:14:49.869 flagged the issue for us. Um, and so with my coverage 00:14:49.879 --> 00:14:53.509 of MISO and um Commissioner McAdams coverage of SPP. 00:14:53.519 --> 00:14:56.418 And, and Commissioner Glotfelty's coverage of the West. 00:14:56.428 --> 00:15:00.428 The this, this NOPR impacts areas outside of ERCOT. And, um 00:15:00.440 --> 00:15:05.259 could have significant impacts um to our ability to 00:15:05.269 --> 00:15:08.009 um you know once our, our CCN authority. Because FERC 00:15:08.019 --> 00:15:11.029 can come in the back end if they designate a national, 00:15:11.038 --> 00:15:13.399 National Interest Transmission Corridor Project. And 00:15:13.408 --> 00:15:17.369 trump our authority. Even though we denied, um a transmission 00:15:17.379 --> 00:15:19.908 project. So I think it's very important that we be 00:15:19.918 --> 00:15:23.580 proactive in this NOPR. And provide our feedback to FERC 00:15:23.750 --> 00:15:28.389 on um the robust effective CCN transmission process 00:15:28.399 --> 00:15:32.590 that we have in, in Texas period. Um I, I think um 00:15:32.599 --> 00:15:35.298 this NOPR doesn't apply to ERCOT. But we must remain 00:15:35.308 --> 00:15:37.808 proactive, as I think some of the underlying DOE 00:15:37.820 --> 00:15:41.548 studies. That FERC will be relying on, have been talking 00:15:41.558 --> 00:15:45.158 about Texas in general, not just non-ERCOT areas. So 00:15:45.168 --> 00:15:47.820 um matter of fact, the DOE just issued out a notice 00:15:47.830 --> 00:15:51.149 of intent this week. Where they're gonna be identifying 00:15:51.158 --> 00:15:55.788 um requesting information to start building um their 00:15:55.798 --> 00:15:58.950 framework for designating projects, national interest 00:15:58.960 --> 00:16:03.529 transmission corridor project. So we um, have to remain 00:16:03.538 --> 00:16:07.129 vigilant um, on our jurisdiction here in Texas. And 00:16:07.139 --> 00:16:10.450 I thank Tom for his hard work and working with FERC outside 00:16:10.460 --> 00:16:14.580 counsel on this matter. Well, well put. Um, agree with 00:16:15.489 --> 00:16:18.259 everything you laid out. Other thoughts or comments? 00:16:19.229 --> 00:16:22.820 (item:28:Commissioner Glotfelty's thoughts on draft comments) I do. Uh, uh in the interest of full disclosure. Um, I 00:16:22.830 --> 00:16:25.168 was one of the people that wrote this section of the 00:16:25.178 --> 00:16:29.879 law um, back in 2003. Which ultimately became law in 00:16:29.889 --> 00:16:32.019 2005. Geez, Jimmy. Um, 00:16:33.710 --> 00:16:37.298 we were obviously trying to get to spur transmission 00:16:37.308 --> 00:16:43.298 development at the time. Um, because it had been declining 00:16:43.308 --> 00:16:47.340 for many, many years. And um, so I find myself on the opposite 00:16:47.349 --> 00:16:50.619 side of where I was before. Which is um, there I wanted 00:16:50.629 --> 00:16:53.830 to usurp state jurisdiction where we needed to. 00:16:53.840 --> 00:16:54.250 And. 00:16:55.798 --> 00:16:58.820 Isn't it funny how things work out? Now I find that I'm protecting it. So um, I think the 00:16:58.830 --> 00:17:01.899 comments are right. I mean, I would say thank you to 00:17:01.908 --> 00:17:04.269 Kay Hutchison and Joe Barton for putting the ERCOT 00:17:04.279 --> 00:17:06.789 exemption in there. Um, they were the ones who made it 00:17:06.799 --> 00:17:12.068 happen. And, um this it's challenging. Um, you know 00:17:12.078 --> 00:17:14.949 where you deal with the federal and state jurisdiction. 00:17:14.959 --> 00:17:19.140 And, you know, I think that a lot of emphasis has been 00:17:19.150 --> 00:17:24.410 put on interregional, interstate transmission lines. 00:17:24.420 --> 00:17:27.799 And the threat of some of these things is actually 00:17:27.809 --> 00:17:32.019 moving the projects forward. And um I, I'm happy 00:17:32.029 --> 00:17:34.289 with these comments. I think we're protecting what 00:17:34.299 --> 00:17:38.049 I think we rightfully should protect. Um, but uh just 00:17:38.059 --> 00:17:39.750 want y'all to know that I wrote it. 00:17:41.949 --> 00:17:44.439 And I won't take it personally, if we file these comments. 00:17:47.529 --> 00:17:49.170 That was my main concern. 00:17:51.640 --> 00:17:55.939 (item:28:Commissioner McAdams' thoughts on draft comments) Uh, Mr. Chairman. I, I support the, the comments as 00:17:55.949 --> 00:18:01.920 well. I think uh, uh FERC's getting into a bit of a 00:18:01.930 --> 00:18:06.150 tangle here now. Um, just on sighting and routing. Uh, 00:18:06.160 --> 00:18:10.529 those are complex and dynamic uh issues that come up. 00:18:10.539 --> 00:18:12.509 And frankly they, they need the states as much as 00:18:12.519 --> 00:18:16.739 they can get them to help. Um, uh assuage concerns as 00:18:16.750 --> 00:18:19.598 These large scale infrastructure projects move forward. 00:18:19.608 --> 00:18:22.559 And I, I think Commissioner Glotfelty would agree with that. 00:18:22.568 --> 00:18:25.328 The state shouldn't stand as an impediment, but as 00:18:25.338 --> 00:18:28.539 a partner to try to work, work their way through these 00:18:28.549 --> 00:18:31.618 things. I mean, uh the interstate system proceeded 00:18:31.630 --> 00:18:35.380 forward accordingly as well. The states uh attempted 00:18:35.390 --> 00:18:37.358 to collaborate with the federal government. And I, 00:18:37.368 --> 00:18:40.729 I think these comments are constructive, constructive. 00:18:40.739 --> 00:18:44.848 Um, in attempting to establish our interest in that 00:18:44.858 --> 00:18:47.559 relationship. Yeah, let me just say one thing when 00:18:47.568 --> 00:18:49.719 we were creating this, the National Interest Electric 00:18:49.729 --> 00:18:52.598 Transmission Corridor. The intent was to be very narrow 00:18:52.670 --> 00:18:56.199 and very deliberate. That this wasn't for every transmission 00:18:56.209 --> 00:18:59.348 line across the country. Uh, so you could bypass the 00:18:59.358 --> 00:19:02.910 states, this was the last resort option. So as long 00:19:02.920 --> 00:19:05.130 as we can, you know, keep ensuring that it's a last 00:19:05.140 --> 00:19:08.670 resort option. Um not a not, not the first option. 00:19:09.189 --> 00:19:14.598 Um, states have to go first then. Um again, I think 00:19:14.608 --> 00:19:18.848 the comments articulate what uh, what we should be um 00:19:19.098 --> 00:19:22.118 supporting. Yeah, along along those lines. (item:28:Chairman Lake's thoughts on draft comments) I, I agree 00:19:22.130 --> 00:19:26.949 with everything that's been set up here. Um, and I would 00:19:26.959 --> 00:19:29.400 ask for y'all's consideration, along along the lines 00:19:29.410 --> 00:19:31.670 what you were talking about. Around the section, that 00:19:31.680 --> 00:19:34.390 addresses the duplicative nature of the transmission 00:19:34.400 --> 00:19:39.930 sighting. Um and, and for prefiling, moving at the 00:19:39.939 --> 00:19:44.469 same time. Uh, because if our utilities are, are 00:19:44.479 --> 00:19:48.459 gonna be participating in the FERC process at the same 00:19:48.469 --> 00:19:53.489 time. And there's a good chance that are already very 00:19:53.500 --> 00:19:58.328 good and continuously improving transmission sighting process. 00:19:58.338 --> 00:20:01.358 We'll approve the line, but our ratepayers will have 00:20:01.368 --> 00:20:04.949 to pay for what was an unnecessary. What ends up being 00:20:04.959 --> 00:20:09.618 a completely unnecessary. And redundant process. Yeah. Completely unnecessary, 00:20:09.630 --> 00:20:13.890 redundant proceeding. Uh so if, if we could make a 00:20:13.900 --> 00:20:16.449 note to highlight that problem. If y'all are amenable 00:20:16.459 --> 00:20:16.719 to that? 00:20:19.750 --> 00:20:24.189 I'm amenable to that, yeah. Definitely. Yeah. Do not want to burn any more ratepayer money in D.C. That 00:20:24.199 --> 00:20:28.259 was absolutely necessary. All right, appreciate the 00:20:28.269 --> 00:20:31.568 discussion. (item:28:Motion to approve draft comments) Uh, is there a motion to approve the draft 00:20:31.578 --> 00:20:34.910 comments as amended by our discussion at the dais? 00:20:36.939 --> 00:20:41.078 So moved. Second. Gotta motion and a second. All in favor, say aye. Aye. None opposed. 00:20:41.088 --> 00:20:45.459 Motion passes. Thank you. And I think that. Thank you, Tom. Uh, 00:20:45.469 --> 00:20:51.250 I think that covers the full Agenda for today, and we 00:20:51.259 --> 00:20:56.719 do not have anything for Executive Session. (item:28:Chairman Lake adjourns meeting) So having 00:20:56.729 --> 00:20:58.699 no further business before the Commission. This meeting 00:20:58.709 --> 00:21:01.449 of the Public Utility Commission of Texas is hereby 00:21:01.459 --> 00:21:01.949 adjourned.