[00:00:06]
THIS IS SUSIE CLIFTON WITH ERCOT.
UH, WELCOME EVERYBODY TO THE TAC MEETING FOR JANUARY, 2023.
IF SOMEONE ON THE WEBEX COULD PLEASE CONFIRM, YOU CAN HEAR ME OKAY, I'M CLEAR.
UH, WITH BEING THE FIRST MEETING OF THE YEAR AND SOME NEW FOLKS HERE, I'M JUST GOING TO REMIND EVERYONE OF THE MEETING MANAGEMENT TIPS.
BRITTANY HAS ALREADY PUT THIS INTO THE CHAT, BUT WE ARE USING THE CHAT FUNCTIONALITY.
YOU CAN, UM, RAISE YOUR CARD AND BRITTANY WILL ENTER YOU INTO THE CHAT, OR YOU CAN ENTER YOURSELF INTO THE CHAT.
AND OF COURSE, THOSE ON THE WEBEX WILL BE USING THAT.
PLEASE WAIT FOR THE CHAIR TO RECOGNIZE YOU BEFORE YOU BEGIN SPEAKING OR WITH THE ELECTION.
PLEASE WAIT FOR ME TO RECOGNIZE YOU.
AND THEN AS WE ARE GOING THROUGH THE BALLOTING PROCESS, PLEASE MAKE SURE THAT IF YOU ARE ON THE WEBEX IN VOTING, YOU UNMUTE YOURSELF BEFORE WE GET TO YOUR SEGMENT, AND THEN YOU MUTE YOURSELF AFTER YOU'RE DONE.
AND THAT WILL HELP US BE MORE EFFICIENT WITH THE BALLOT.
IF THE WEBEX ENDS FOR ANY REASON, GIVE US A FEW MINUTES AND WE WILL RESTART.
AND YOU SHOULD BE ABLE TO LOG IN WITH THE SAME MEETING INFORMATION.
FOR THOSE OF YOU IN THE ROOM, INCLUDING INCLUDING THE SEATED TAC REPRESENTATIVES, UH, ERCOT STAFF, OTHER MARKET PARTICIPANTS AND STAKEHOLDERS, PLEASE MAKE SURE THAT YOU DO SIGN IN AT THE MEETING.
SIGN-IN SHEET AT THE BACK OF THE ROOM.
WE DO HAVE A QUORUM HERE TODAY PRESENT.
[1. Antitrust Admonition]
COUPLE OF ALT REPS AND PROXIES, AND I'LL GO THROUGH THOSE.UH, IN THE CO-OP SECOND SEGMENT, WE HAVE MIKE WISE, UH, HE'S GOING TO BE GIVING HIS PROXY TO KATIE AFTER KATIE RICH AFTER 1115 IN THE, UM, INDEPENDENT GENERATOR SEGMENT, IAN HALEY LUMINANT HAS GIVEN HIS ALT REP TO NED BONKOWSKI.
AND THEN IN THE I U SEGMENT, UH, KEITH NICKS TN MP HAS HIS ALT REP, STACY WHITEHURST, UH, FOR PROXIES AND THE CONSUMER INDUSTRIAL, WE HAVE GARRETT KENT.
UH, CMC STEEL HAS GIVEN HIS PROXY TO BILL SMITH.
AND THEN I P M SETH, UH, IS HERE AND PRESENT TODAY, BUT HE WILL BE AN AVAILABLE PART OF THIS MEETING AND WILL GIVE HIS PROXY TO JEREMY CARPENTER.
NOW WE'RE GONNA MOVE TO THE ANTITRUST THAT COREY HAS PULLED UP FOR US, AND I WILL NOT READ THE ENTIRE DOCUMENT, BUT, UM, MOST OF YOU ARE FAMILIAR WITH IT.
AND IT IS ALSO AVAILABLE ON THE GOVERNANCE TAB, ON THE ERCOT WEBSITE IF YOU WOULD CHOOSE TO READ THE ANTITRUST OR DISCLAIMER IN MORE DETAIL.
ALL RIGHT, NOW WE'RE GOING TO, UH, GO TO THE MEMBERSHIP
[2. Membership Introductions]
INTRODUCTIONS.UH, WE DO WANNA THANK ALL OF THE, UH, RETURNING T MEMBERS, BUT WE DO HAVE TWO NEW MEMBERS HERE TODAY IN THE I U SEGMENT, DAVID MERCADO WITH C NMP, AND HE'S HERE PRESENT.
AND THEN IN THE MUNICIPAL SEGMENT, WE ALSO HAVE, UH, RUSSELL FRANKLIN WITH GARLAND POWER AND LIGHT, AND HE IS ON THE WEBEX.
[3. Election of 2023 TAC Chair and Vice Chair (Vote)]
THREE, WHICH IS THE ELECTION OF THE 2023 TECH CHAIR AND VICE CHAIR.AND WE'RE GONNA, UM, THANK YOU COREY, FOR BRINGING THAT UP.
THIS IS KIND OF HOW THE ELECTION PROCESS WILL GO.
UM, BASICALLY I'LL BE ASKING FOR NOMINATIONS FOR THE CHAIR.
A SECOND IS NOT NEEDED TO THE NOMINATION, AND THEN WE'LL SEE IF THERE'S ANY OTHER NOMINATIONS.
AND IF NOT, BY ACCLIMATION, WE WILL HAVE OUR NEW CHAIR, AND THEN WE'LL GO TO THE VICE CHAIR.
UM, AGAIN, WE'LL BE ASKING FOR A NOMINATION.
IF THERE'S MORE THAN ONE NOMINATION, WE DO HAVE BALLOTS FOR THOSE IN THE ROOM.
AND THEN WE WILL BE USING, UM, AN EMAIL PROCESS TO STAKEHOLDER SERVICES ERCOT.COM.
AND SO IF YOU'RE PARTICIPATING BY EMAIL AND WE GO TO A BALLOT, UH, IN THE ELECTION PROCESS, UH, THIS WILL TAKE A LITTLE BIT OF TIME BECAUSE WE'LL NEED TO GET THE EMAILS FROM THOSE THAT ARE PARTICIPATING ON THE WEBEX.
UM, WE ONLY HAVE ONE VOTE PER SEATED T REPRESENTATIVE, AND WE ARE LOOKING FOR A SIMPLE MAJORITY, 51%.
IF THAT IS NOT REACHED, OR IF WE HAVE MORE NOMINEES, THEN WE'LL TAKE THE TOP TWO CANDIDATES AND GO THROUGH THE PROCESS UNTIL WE HAVE A 51% MAJORITY.
AND AGAIN, WE'LL DO THE CHAIR FIRST, AND THEN WE'LL GO TO THE VICE CHAIR.
SO NOW I WILL OPEN THE FLOOR FOR NOMINATIONS, AND I'M LOOKING FOR A FLOOR.
UH, I'M LOOKING FOR A NOMINATION FOR THE 2023 TACK CHAIR.
OKAY, EMILY, I'D LIKE TO NOMINATE CLIFF LANGY WITH THE SOUTH TEXAS ELECTRIC CO-OPERATIVE.
CLIFF, DO YOU ACCEPT THE NOMINATION? I DO.
AND, UH, AGAIN, WANTED TO NOTE, AS I NOTED IN DECEMBER, UM, IF THE GROUP OPS FOR ME TO BE CHAIR FOR THIS YEAR, I WOULD LIKE TO MOVE THE MEETINGS CONSISTENT WITH THE MEETING CALENDAR THAT WAS POSTED AT THE DECEMBER,
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UH, MEETING.ARE THERE ANY OTHER NOMINATIONS FOR 2023? CHAIR? OKAY.
THEN BY ACCLIMATION, CLIFF IS OUR NEW 2023 CHAIR.
NOW WE'RE GONNA OPEN THE FLOOR FOR OUR NOMINATIONS, AND I WILL DO A LITTLE BIT BETTER JOB OF WATCHING THIS QUEUE.
UH, DAVID, YOU HAD A, YOU AND, UH, BOB WERE IN THE QUEUE.
SO ARE YOU MAKING A NOMINATION FOR VICE CHAIR OR, OKAY, AND, UM, BOB HILTON, I DIDN'T HEAR YOU ON THE PHONE.
WERE YOU MAKING A CHAIR, UH, NOMINATION FOR VICE CHAIR? YEAH, CAITLIN.
CAITLIN SMITH, DO YOU ACCEPT THE NOMINATION? YES.
OKAY, SO YOU HAVE CAITLIN SMITH.
ARE THERE ANY OTHER, OTHER NOMINATIONS? OKAY, DAVID, I'D LIKE TO NOMINATE MR. I'D LIKE TO NOMINATE MR. RICHARD ROSS FROM AP.
RICHARD, DO YOU ACCEPT THE NOMINATION? YES.
ARE THERE ANY OTHER NOMINATIONS OTHER THAN THE TWO NOMINATIONS THAT WE HAVE RIGHT NOW? CAITLIN SMITH FOR JUPI POWER AND RICHARD ROSS FOR A E P.
HEARING NO OTHER NOMINATIONS, UH, WE ARE GONNA GO AHEAD AND GO WITH THE, UM, VALIDATING PROCESS.
SO ERIN IS GOING TO HELP ME GO AROUND THE ROOM AND WE ARE GOING TO PASS OUT THESE BALLOTS, AND WE ASK THAT YOU, UM, LEMME GIVE YOU SOME PENS HERE TOO.
SO WE HAVE PENS, AND, UH, THE BALLOTS IN HERE, IF YOU WILL INDICATE IN THE BALLOT, UM, WHO YOU CHOOSE, EITHER RICHARD OR CAITLIN.
AND THEN GIVE YOUR NAME AND YOUR COMPANY NAME, PLEASE, SO WE CAN MAKE SURE THAT WE HAVE ONE, UH, BALLOT FOR EACH SEATED REPRESENTATIVE IN THE ROOM.
FOR THOSE OF YOU ON THE WEB WEBSITE, UH, I MEAN ON THE WEBEX, UM, BRITTANY, COULD YOU POSSIBLY PUT IN THE, UM, EMAIL ADDRESS AND THOSE OF YOU ON THE WEBEX PARTICIPATING BY WEBEX ONLY, AND NOT IN THE ROOM? PLEASE SEND YOUR VOTE FOR THE 2023 VICE CHAIR TO STAKEHOLDER SERVICES@ERCOT.COM.
SO THIS PROCESS IS GONNA TAKE JUST A FEW MINUTES.
UH, WELL, WE GET EVERYONE A CHANCE TO COMPLETE THEIR BALLOT, AND THEN WE'LL PICK THOSE BALLOTS UP AND, UM, THEN WE WILL TABULATE THOSE AND THEN ALSO, UM, WORK WITH THOSE IN THE WEBEX.
SO THIS WILL BE A FEW MINUTES TO COMPLETE THIS PROCESS.
HI, WEBEX ATTENDEES, THIS IS BRITTANY WITH MARKET RULES.
UH, JUST A REMINDER THAT IT WILL BE ONLY THE SEATED T REPRESENTATIVES VOTING.
UM, I WILL ACKNOWLEDGE RECEIPT OF YOUR VOTE, UM, VOCALLY.
MARK DREYFUSS, WE HAVE RECEIVED YOUR VOTE.
AND ALSO, UH, CLIFF IS GONNA GO AHEAD AND COME TO THE BACK OF THE ROOM, SO HE'LL BE READY TO TAKE OVER AND START THE AGENDA ONCE WE COMPLETE THE VOTING PROCESS.
ALICIA, LOVING, WE HAVE RECEIVED YOUR VOTE.
BOB HILTON, WE'VE RECEIVED YOUR VOTE.
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JOSE, WE'VE RECEIVED YOUR VOTE.THANK, WE'VE RECEIVED YOUR VOTE.
THANK YOU, BILL SMITH, WE'VE RECEIVED YOUR VOTE.
THANK YOU ALL FOR YOUR PATIENCE WHILE WE DID THE BALLOTING PROCESS, AND WE WOULD LIKE TO GO AHEAD AND WELCOME CAITLIN SMITH AS OUR 2023 TAC VICE CHAIR.
THANK YOU SO MUCH, RICHARD AND CAITLIN.
ALL RIGHT, GOOD MORNING EVERYONE, AND WELCOME AGAIN TO OUR TACK FOR 2023.
WE'LL GIVE CAITLIN JUST A FEW MINUTES TO GET SET UP OVER HERE, BUT WANTED TO CONGRATULATE HER ON HER SUCCESS.
I UNDERSTAND THE WORD OF THE MONTH FROM RICHARD SUCCESS, SO I WANTED TO CONGRATULATE HER ON THAT.
BUT ALSO WANTED TO SAY THANK YOU TO RICHARD FOR BEING WILLING TO, UH, OFFER HIS TIME THIS YEAR FOR, UH, THE VICE-CHAIR POSITION FOR TAC AS WELL.
SO, UM, SO REALLY LOOKING FORWARD TO THIS YEAR.
IT'S GONNA BE A VERY BUSY YEAR.
I APPRECIATE Y'ALL PUTTING ME IN PLACE AGAIN AS TAC CHAIR FOR ANOTHER YEAR, MOSTLY BECAUSE I PLUGGED MY CHARGER IN OVER HERE AND WALKED AWAY HOPING I WASN'T GONNA HAVE TO COME BACK AND PICK IT UP IF Y'ALL DIDN'T SELECT ME.
SO, ONE OTHER BIT OF NEWS THIS MORNING.
CONGRATULATIONS, OR IN ORDER TO CAITLYN, I UNDERSTAND THAT SHE IS ENGAGED AS OF THIS MORNING, SO AS A
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SO OFF WE GO THIS MORNING, STARTING OFF ON A GOOD NOTE.UM, SO WE'LL GO AHEAD AND, AND KICK THINGS OFF THIS MORNING.
SO, UM,
[4. Approval of TAC Meeting Minutes (Vote)]
WE'LL GO AHEAD AND START WITH APPROVAL OF THET MEETING MINUTES, UM, FROM DECEMBER 5TH.DO WE HAVE ANY COMMENTS OR CORRECTIONS? NO COMMENTS OR CORRECTIONS, ANYTHING ANYONE WOULD LIKE TO OFFER UP THIS MORNING? AS IT PERTAINS TO THE TAC MEETING MINUTES FROM DECEMBER 5TH, HEARING NONE, LET'S GO AHEAD AND PLACE THAT ON THE COMBO BALLOT.
UM, AND WE WILL AGAIN, USE THE COMBO BALLOT THIS YEAR PRETTY EXTENSIVELY FOR THOSE ITEMS THAT ARE NOT, UH, UH, NEEDING INDEPENDENT VOTES.
SO WE'LL TRY TO, UH, PLACE AS MANY OF, OF THOSE INDIVIDUAL ITEMS ON, ON THE COMBO BALLOT AS POSSIBLE.
[5. Meeting Updates]
ITEM ON THE AGENDA.AGENDA ITEM NUMBER FIVE, PERTAINING TO MEETING UPDATES.
UH, NOT MUCH TO NOTE PERTAINING TO THE DECEMBER 15TH COMMISSION MEETING.
UH, WE WANTED TO NOTE THAT THE REVISION REQUESTS THAT WE HAD, UH, PREVIOUSLY APPROVED AND HAD BEEN APPROVED BY THE ERCOT BOARD, UH, WERE APPROVED BY THE PUBLIC UTILITY COMMISSION AT THEIR DECEMBER 15TH MEETING.
THERE'S OBVIOUSLY BEEN A NUMBER OF, UH, COMMISSION MEETINGS THAT HAVE FOLLOWED ON SINCE THEN PERTAINING TO ERCOT MARKET DESIGN AND SO FORTH.
UH, WE WILL HAVE, OBVIOUSLY SOME WORK AHEAD OF US AS IT PERTAINS TO THOSE, BUT, UH, DID NOT INTEND TO DIVE INTO THOSE SPECIFICALLY AS PART OF THE MEETING UPDATES THIS MORNING.
SO WOULD ADVISE YOU TO GO BACK AND, AND LOOK AT THOSE, UM, UH, ON YOUR OWN TIME, IF YOU WOULD.
SO WE ALSO HAVE THE DECEMBER 19TH AND 20TH BOARD MEETING.
UM, SO AS, AS IT PERTAINS TO THOSE SPECIFIC BOARD MEETING DATES, THE COMMITTEE MEETING AND THE BOARD MEETING DATE, UH, ALL OF THE REVISION REQUESTS THAT WE SUBMITTED WERE APPROVED BY THE ERCOT BOARD AND SUBMITTED TO THE COMMISSION FOR APPROVAL.
I DID WANT TO NOTE THAT WE DID HAVE A REVISED IMPACT ANALYSIS PERTAINING TO REVISION REQUEST 1138 NPR R 1138, AND WE DID HAVE AN EFFECTIVE DATE THAT WAS MODIFIED FOR NPR R 1154, THAT WAS MODIFIED TO JANUARY 27TH, 2023, ALONG WITH NO 2 26, WHICH WERE, UH, COMPANION REVISION REQUESTS.
I ALSO WANTED TO NOTE THAT THE CREDIT WORKING GROUP WAS DISBANDED, UM, OFFICIALLY AT THIS LAST BOARD MEETING IN DECEMBER.
AND SO WE WILL TAKE THAT ITEM UP, UH, HERE SHORTLY.
ANY QUESTIONS OR COMMENTS AS IT PERTAINS TO THE COMMISSION, UH, MEETING UPDATE OR THE ERCOT BOARD MEETING UPDATE? OKAY, SEEING NONE, WE'LL MOVE ON TO AGENDA ITEM NUMBER SIX, CONFIRMATION OF THE
[6. Confirmation of 2023 Subcommittee Leadership (Vote)]
2023 SUBCOMMITTEE LEADERSHIP.SO, UH, IF YOU COULD PULL THAT UP ON THE SCREEN.
ALL RIGHT, SO THE SUBCOMMITTEES HAVE MET ALREADY AND THEY HAVE CHOSEN THEIR, UH, CHAIRS AND VICE-CHAIRS.
SO WE'VE GOT MARTHA HENSON REPEATING HER ROLE, UM, AS CHAIR FOR PRS.
UM, WE'VE GOT DIANA COLEMAN WHO STEPPED IN AS VICE-CHAIR FOR THAT ROLE THIS YEAR.
UH, DEBBIE MCKEEVER AND JOHN SHOTS HAVE SWITCHED ROLES THIS YEAR FOR RMS. UH, WE'VE GOT THE CONTINUATION OF CHASE SMITH AND KATIE RICH FOR CHAIR AND VICE CHAIR FOR RO OS AND WMS. WE'VE GOT, UH, BOTH A NEW CHAIR AND A VICE CHAIR WITH ERIC BLAKEY, A P C AND JIM LEE OF CENTERPOINT FOR THIS YEAR.
UM, ANY COMMENTS, QUESTIONS AS IT PERTAINS TO TAX SUBCOMMITTEE LEADERSHIP? HEARING NONE, WE'LL GO AHEAD AND MOVE THAT ENDORSEMENT TO THE, UH, COMBO BALLOT AS WELL AND TAKE IT UP THERE.
[7. 2023 TAC Goals and Strategic Initiatives (Possible Vote)]
THING ON THE AGENDA IS, UH, 2023 T GOALS AND STRATEGIC INITIATIVES.UM, I DIDN'T NECESSARILY INTEND TODAY TO, UH, ADOPT ANY MODIFICATIONS AND CHANGES TO THOSE THEY ARE POSTED AS PART OF THE MEETING MATERIALS.
WE TEE THAT UP FOR EARLY DISCUSSION AT THIS MEETING AND THEN TEND TO ADOPT THOSE AT OUR FEBRUARY MEETING.
UM, IF ANYBODY HAS ANYTHING SPECIFIC THAT THEY'D LIKE TO DISCUSS TODAY AS IT PERTAINS TO EITHER THE GOALS OR THE STRATEGIC INITIATIVES, WE CAN GO AHEAD AND TEE THAT UP RIGHT NOW.
UH, IF NOT, I WOULD ENCOURAGE YOU TO PROVIDE ANY SORT OF UPDATES OR MODIFICATIONS TO THOSE, UM, TO STAKEHOLDER SERVICES.
PREFERABLY IF YOU COULD COPY ME AND CAITLIN AS WELL SO THAT WE'RE KEPT IN THE LOOP ON THOSE AS WELL.
UM, THAT WOULD BE GREAT, AND WE'LL TAKE THOSE UP IN FEBRUARY.
[8. Formation of Credit Work Group (Vote)]
ON TO AGENDA ITEM NUMBER EIGHT.UM, FORMATION OF THE CREDIT CREDIT WORK GROUP.
AS I NOTED A LITTLE BIT AGO, THAT GROUP WAS OFFICIALLY DISBANDED BY THE BOARD AT THEIR MEETING IN DECEMBER, AND THAT WAS IN PART, AS PART OF OUR DISCUSSIONS THAT WE HAD HAD, UH, WITH THE R AND M COMMITTEE FOR IDENTIFYING WAYS OF STREAMLINING THE CURRENT PROCESSES, UM, AND, AND PROVIDING
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FEEDBACK, UH, FROM TACK ON ON SOME OF THESE SPECIFIC ITEMS. AS IT PERTAINS TO CREDIT, WE DID HAVE SOME DUPLICATION BETWEEN THE CREDIT WORKING GROUP AND THE MARKET CREDIT WORKING GROUP.AS, AS MANY OF YOU KNOW, UM, OUR INTENTION TODAY IS TO TRY TO SET UP A PLAN FOR HOW TO ADDRESS GETTING CREDIT, UH, ITEMS TO THE ERCOT BOARD.
UM, AND SO OUR, UH, PROPOSED PATH FORWARD AT THIS POINT IN TIME IS TO CONSTITUTE A NEW VERSION OF THE CREDIT WORKING GROUP THAT, UH, ANSWERS DIRECTLY TO TAC THAT REPORTS DIRECTLY TO TAC.
UM, AND AS PART OF THAT PATH, WE WOULD ALSO DISBAND THE MARKET CREDIT WORKING GROUP SO THAT WE DIDN'T HAVE DUPLICATION OF EFFORTS IN THAT REGARD.
UH, STREAMLINES THE PROCESS, UM, ELIMINATES, UH, THE NEED FOR ERCOT STAFF TO PARTICIPATE IN POTENTIALLY TWO SEPARATE MEETINGS AND SO FORTH.
UM, WHAT I WOULD ASK, UM, IN, IN THE EXISTING OR THE, THE FORMER CREDIT WORK GROUP, UM, IS STILL, UH, LOOSELY IN PLACE.
WHAT WE WOULD LIKE TO DO TODAY IS GO AHEAD AND HAVE A VOTE ON FORMATION OF AN UPDATED CREDIT WORK GROUP.
UH, WE WOULD LIKE TO NAME THAT SOMETHING DIFFERENT IF AT ALL POSSIBLE, BECAUSE WE WILL HAVE THE CREDIT WORK GROUP, UH, AND THEIR ACTIVITIES ARCHIVED OFF ON THE ERCOT WEBSITE.
SO IT WOULD BE KIND OF NICE TO HAVE SOMETHING THAT'S NAMED A LITTLE BIT DIFFERENT AND TO THE EXTENT THAT WE CAN, UM, AND GO AHEAD AND VOTE ON THE FORMATION OF THIS GROUP TODAY, HAVE THEM COME BACK NEXT MONTH WITH A CHARTER AND WITH THEIR LEADERSHIP.
UM, I WOULD NOTE THAT THE INTENTION AT THIS POINT IN TIME, UH, AT LEAST BASED ON ON, UM, MY INTENT RIGHT NOW, AND OF COURSE IT'S OPEN TO, TO TAX THOUGHTS ON THAT, IS TO NOT MAKE THIS A VOTING BODY, BUT RATHER JUST A, A LOOSE FORMATION OR TYPICAL WORKING GROUP THAT WOULD COME BACK TO TACK REPORT REGULARLY, PROVIDE, UM, FEEDBACK ON REVISION REQUESTS AND SO FORTH.
AND IF WE SEE A NEED TO FORMALIZE THE PROCESSES, MAYBE, UH, ESTABLISH IT AS A SUBCOMMITTEE OR SOMETHING OTHERWISE THAT WE DO SO AT, AT, AT A, AT AN AT ANOTHER DATE ONCE WE'VE IDENTIFIED MAYBE WHERE OUR GAPS MIGHT BE AND SO FORTH.
I SAW BOB WHITMEYER COME UP FIRST.
UM, AND THEN IT LOOKS LIKE WE'VE GOT BILL BARNES AND ERIC OFF.
YEAH, CLIFF, THANK, THANKS FOR THE CLARIFICATION ON THE VOTING.
IT WAS ALWAYS AN ISSUE THAT THE CREDIT WORK GROUP WAS CALLED A WORK GROUP, BUT ACTUALLY HAD A VOTING STRUCTURE TO IT AND IT WAS THE ONE AND ONLY ONE THAT HAD A VOTING STRUCTURE.
SO I FULLY SUPPORTIVE OF A, OF A DIFFERENT NAME.
AND IF IT DOESN'T HAVE A VOTING STRUCTURE, THEN WORK GROUP CAME TO WORK.
UM, ACTUALLY SKIPPING THROUGH THE QUEUE HERE.
WE'VE GOT BOB HILTON FOLLOWED BY BILL BARNES AND THEN ERIC GOFF.
JUST REAL QUICKLY ON THIS, ARE WE GONNA HAVE, UH, THIS IS A WORKING GROUP TO WHERE WHOEVER SHOWS UP CAN, UH, CAN PARTICIPATE? OR ARE WE GOING TO HAVE SOME KIND OF A, UH, A REPRESENTATION? IS THERE ANY THOUGHTS ON THAT? IT'S A GOOD QUESTION, BOB.
I KNOW ONE OF THE THINGS THAT WE HAD DISCUSSED AS PART OF OUR DISCUSSIONS WITH R AND M, UH, AND THE, THE COMMITTEE MEMBERS THERE, WAS THAT WE WOULD HAVE QUALIFICATIONS FOR PARTICIPATION ON HERE.
UM, SO WE DO WANNA MAKE SURE THAT, THAT THOSE QUALIFICATIONS ARE CAPTURED CUZ WHAT WE, WE ULTIMATELY WANT IS WE WANT THE BOARD TO BE COMFORTABLE THAT THE RECOMMENDATIONS COMING FROM OUR NEWLY FORMED CREDIT WORK GROUP ARE COMING FROM CREDIT EXPERTS, THOSE THAT HAVE INSIGHT AND SO FORTH IN, IN TERMS OF, UH, YOU KNOW, WHAT THE CREDIT IMPACTS MAY BE.
NOW THAT BEING SAID, I DO KNOW THAT THERE ARE FOLKS, UM, THAT MAYBE YOU'RE NOT, UH, CHIEF FINANCIAL OFFICER, UH, TITLED, UM, OR BANKING BACKGROUND OR SOME SOMETHING AND SO FORTH.
SO I THINK WHAT WE'RE TRYING TO DO IS MAKE SURE THAT THE EXPERTS THAT WE HAVE ON THIS GROUP ACTUALLY DO HAVE SOME DEGREE OF CREDIT EXPERIENCE AND AND SO FORTH.
I KNOW, FOR EXAMPLE, BILL, YOU'RE A, YOU'RE A GREAT EXAMPLE OF THIS.
UM, YOU KNOW, YOU'VE, YOU'VE GOT A A TON OF OF CREDIT BACKGROUND.
YOU, YOU'VE, UH, ARE A VERY EFFECTIVE MEMBER IN THAT REGARD.
AND SO, YOU KNOW, WE WANNA MAKE SURE THAT SOMEBODY, UH, SIMILAR TO BILL HAS, UH, OR HAS CREDENTIALS SIMILAR TO BILL HAS THE OPPORTUNITY TO SERVE ON THAT, UH, GROUP AS WELL.
SO,
AND WE WOULD LIKE THE, THE GROUP TO COME BACK WITH, WITH THOSE QUALIFICATIONS WHEN THEY COME BACK IN FEBRUARY WITH THEIR CHARTER.
AND YOU ACTUALLY ECHOED EXACTLY WHAT I WAS GONNA SAY ON, ON THE QUALIFICATIONS TO MAKE SURE WE GET THOSE RIGHT.
UM, MY QUESTION IS, CAN YOU CLIFF SUMMARIZE, UM, WHAT THE PLAN IS FOR THIS GROUP? IS IT, UM, WE'RE GONNA MOVE THE MARKET CREDIT WORKING GROUP FROM UNDER WMS AND WE'LL WOULD REPLACE THIS GROUP OR WE'RE GONNA FORM A NEW ONE, KEEP THE MARKET CREDIT WORKING GROUP UNDER WMS, AND WHAT, HOW DID THE RESPONSIBILITIES OF THE GROUP CHANGE?
[00:25:01]
UM, IN TERMS OF THE FUNCTION, I GUESS? YEAH, SO THE ORIGINAL INTENT, AT LEAST THE WAY I ENVISIONED IT, WAS THAT MARKET CREDIT WORKING GROUP WOULD BE DISBANDED.SO WHAT WAS FORMALLY KNOWN AS CREDIT, CREDIT WORKING GROUP, WHICH, UM, REPORTED TO FNA, UM, IN ESSENCE WOULD BE NSTITUTE AS A WORKING GROUP OF TAC AND WOULD PERFORM THE SAME FUNCTIONS THAT THE CREDIT WORKING GROUP DID WHEN THEY RESPONDED OR WHEN, RATHER WHEN THEY REPORTED TO FNA.
UH, SO THAT'S MY ORIGINAL INTENTION AT THIS POINT IN TIME.
TO THE EXTENT WE NEED TO EXPAND THAT, WE CAN CERTAINLY DO THAT AND IN, IN THE SENSE THAT WE NEED TO NARROW THE SCOPE.
BUT MY INITIAL SUGGESTION IS THAT WE JUST TAKE THE CHARTER THAT WAS ORIGINALLY USED BY THE FORMER CREDIT WORKING GROUP, USE THAT AS A STARTING POINT AND MAKE MODIFICATIONS AS NECESSARY.
BUT WE REALLY WANT THEM TO FULFILL THE ROLE THAT THE FORMER CREDIT WORKING GROUP FULFILLED FOR F AND A BUT WITHOUT THE FORMAL VOTING STRUCTURE.
WITHOUT THE FORMAL VOTING STRUCTURE.
AND WE CAN'T CALL IT THE CREDIT WORKING GROUP OR THE MARKET CREDIT WORKING CUZ WE'D LOSE THE HISTORY ON RIGHT.
THE STAKEHOLDER SITE TO MAKE SURE THAT WE PROVIDE A DISTINCTION.
WE'LL PUT OUR THINKING CAPS ON IT, NO PROBLEM.
SO WE HAVE NOT YET RECEIVED ATTACK NPR 1157, BUT IT PROPOSES THAT THERE'S A, A REQUIREMENT OF A CREDIT REVIEW OF ANY NPRS, UM, FOR TACT ON THE BOARD.
AND SO ONE THING THAT WE NEED TO ACCOMPLISH WITH THIS REVIEW IS HAVING A MECHANISM FOR THAT CREDIT REVIEW TO GO GO IN, ASSUMING THAT WE INCLUDE THIS IN 1157.
UM, AND, UM, ALSO JUST HAVE A WAY TO RESOLVE IF THERE'S A DISPUTE ABOUT THE CREDIT REVIEW.
UH, IS THAT SOMETHING THAT'S DONE BY ETTE STAFF NOW? OR, UH, IF THERE'S A DISAGREEMENT THAT AT THE CREDIT WORKING GROUP DOES TACK RESOLVE THAT? I DON'T KNOW WHAT THE ANSWER IS.
I DON'T THINK WE NEED TO COME UP WITH THE ANSWER TODAY, BUT WE JUST NEED AN ANSWER FOR THE NEXT MEETING.
WE'VE GOT NICK FAREN BACH AND JENNIFER SCHMIDT AND I FULLY SUPPORT FORMING A CREDIT WORKING GROUP, BUT NOT NECESSARILY WITH THAT NAME.
IN MY PRIOR POSITION AT ERCOT, I BELIEVE THE OLD CREDIT WORKING GROUP PROVIDED VERY VALUABLE INSIGHT AND INFORMATION ON CREDIT ISSUES.
I THINK WE NEED TO KEEP A FORMAL VOTING STRUCTURE AND WE NEED TO KEEP REQUIREMENTS TO SERVE ON THAT SUCH THAT WE HAVE CREDIT PROFESSIONALS IN THERE.
MY QUESTION FOR STAFF OR LEGAL IS WHETHER THIS NEEDS TO BE A WORKING GROUP REPORTING TO T OR WHETHER WE NEED TO FORM A SUBCOMMITTEE SO THAT WE CAN HAVE THE FORMAL STRUCTURE IN MEMBERSHIP REQUIREMENTS, WHEREAS MOST WORKING GROUPS ARE RELATIVELY INFORMAL AND, UH, I DON'T HAVE A PROBLEM EITHER WAY, BUT TO MAKE SURE THAT WE CAN DO IT RIGHT, I JUST WANNA LEAVE, PUT OUT THAT OPTION AS POSSIBLY CREATING A NEW SUBCOMMITTEE THAT REPORTS TO TAC, IF THAT BETTER ALLOWS US TO SET UP THE PROPER REQUIREMENTS THAT THEY CAN DO THE FUNCTION WE NEED.
YEAH, I THINK THAT'S A FAIR REQUEST, NICK.
UM, WE'VE HAD SOME DISCUSSION WITH ERCOT STAFF ON THAT IN TERMS OF WHETHER WE NECESSARILY NEEDED ANOTHER SUBCOMMITTEE TO PERFORM THAT, THAT TYPE OF FUNCTION.
UM, AND, AND THAT'S AN OP, YOU KNOW, THAT'S AN OPTION.
IF THAT'S WHAT TAC WANTS TO DO, WE CAN CERTAINLY ESTABLISH A SUBCOMMITTEE.
UM, YOU KNOW, ORIGINALLY THE THOUGHT WAS IS, IS RECONSTITUTE USING A CHARTER SIMILAR TO WHAT, WHAT WAS THERE? SO, UM, SO I'M INDIFFERENT.
UM, YOU KNOW, WE'D PREFER TO HEAR THE WILL OF TACK IN THAT REGARD.
IF THERE'S A SPECIFIC, UH, DES UH, DESIRED DIRECTION THAT TACK WOULD LIKE TO GO, CERTAINLY, UH, OPEN ENTERTAINING THAT AND WOULD WOULD LOVE TO HEAR THAT.
LOOKS LIKE WE'VE GOT RANDY JONES IN THE QUEUE.
YEAH, GOOD MORNING AND HAPPY 2023 TO EVERYBODY.
UM, I'VE BEEN IN FAVOR FOR A LONG TIME.
MANY YEARS I'M PROBABLY BEATING A DEAD HORSE, BUT THOSE TWO FUNCTION, THOSE TWO FUNCTIONS NEEDED TO BE CONSOLIDATED AND FOR THE SAME REASONS THAT NICK RECOMMENDED, I, I THINK IT OUGHT TO BE A SUBCOMMITTEE OF T AND YOU CAN CALL IT WHAT YOU WANT.
FINANCE SUBCOMMITTEE, UM, HAS A DECENT RING TO IT, BUT I ENCOURAGE YOU TO MOVE FORWARD WITH IT RIGHT AWAY.
SO ONE OF THE REASONS WE HAD PROPOSED THAT IT NOT
[00:30:01]
HAVE A VOTING STRUCTURE IS BECAUSE THE REMAINDER OF OUR WORKING GROUPS DO NOT HAVE A VOTING STRUCTURE.SO IT SEEMS A BIT CONFUSING IF WE HAD A WORKING GROUP THAT HAD A VOTING STRUCTURE THAT ALWAYS CAUSED A BIT OF CONSTERNATION FOR ME IN THE PAST.
UM, IF THE INTENTION IS TO HAVE A VOTING STRUCTURE, I WOULD PROBABLY ENCOURAGE THIS TO BE SET UP AS A SUBCOMMITTEE IF THAT'S THE DESIRE.
UM, YOU KNOW, AND, AND IF THAT'S THE WAY FOLKS WANT TO GO, THEN WE CAN CERTAINLY DO THAT TODAY.
UM, I THINK IN TERMS OF PROCESS, WE PROBABLY WANT TO HAVE A VOTE ON THAT TODAY, UM, SO THAT WE CAN SEND FOLKS OFF TO GO DEVELOP THE CHARTER AND SO FORTH.
SO, UM, THAT BEING SAID, IF WE CAN, UM, DRIVE TOWARDS, TOWARDS THAT FINAL CONCLUSION AND DRIVE TOWARDS A VOTE TODAY, I THINK THAT WOULD BE WELL RECEIVED, BOTH BY LEADERSHIP, BY THE BOARD, AND BY ERCOT STAFF.
SO BILL BARNES, FOLLOWED BY BOB HILTON, THE VOTING STRUCTURE HAS SERVED THE CREDIT WORKING GROUP WELL OVER THE YEARS, BUT, UH, AS A SOMEWHAT FREQUENT PARTICIPANT, I CAN TELL YOU THAT, UM, IT WOULD PROBABLY SUFFER FROM QUORUM ISSUES QUITE A BIT.
AND THAT'S BECAUSE THE, YOU KNOW, WE WANT CREDIT PROFESSIONALS TO PARTICIPATE AND MANY DO, BUT MEN, THEY ALSO HAVE OTHER JOBS.
UM, AND THERE CAN BE TIMES WHEN, UH, ATTENDANCE IS SPARSE.
WE HAVE A KIND OF A SMALL GROUP OF THREE OR FOUR REALLY, REALLY DEDICATED ONES THAT ARE, UM, LOYAL ATTENDEES.
BUT OTHER THAN THAT, THERE WOULD BE MANY TIMES WHERE I THINK WE WOULD PROBABLY NOT MEET QUORUM AND COULD CAUSE ISSUES.
SO, UM, I DO LIKE THE SUGGESTION, HAVING A FORMAL VOTING, UH, STRUCTURE TO THE GROUP.
I, THAT WORKS BETTER WHEN YOU CAN HAVE CONSISTENT ATTENDANCE.
BUT I THINK THIS GROUP, UM, YOU MAY SUFFER FROM THAT.
SO JUST WANNA MAKE THAT POINT.
BOB HILTON? UH, YOU COULD PULL ME.
ACTUALLY, I WAS WORRIED ABOUT, UH, THE SAME THING THAT BILL WAS ON THE QUORUM ISSUE TO SEE IF WE WOULD GET THAT.
WE'VE HAD THAT IN THE PAST WITH OTHER SUBCOMMITTEES AND, UH, WHEN THEY'RE REALLY SPECIFIC AND THAT'S WHY I WOULD HAVE THAT SAME CONCERN.
BOB WHITNER, YOU KNOW, THE, THE SUBCOMMITTEE VOTING STRUCTURE SEEMS TO ME THAT IT MEETS THE CRITERIA PUT ON US BY R AND M AND THAT YOU WOULD KNOW THAT ONLY THE CREDIT PROFESSIONALS, UM, WERE VOTING AND THAT WOULD GIVE TACK A, A QUALIFIED, I GUESS, A QUALIFIED RECOMMENDATION THAT THEY COULD TAKE TO THE BOARD.
I THINK IF YOU DON'T HAVE THAT, IT'S MORE DIFFICULT, UM, TO FULFILL THE, THE REQUEST OF THE R AND M.
SO WE'VE GOT, UM, I THINK A DIVERGENCE OF OPINIONS IN TERMS OF HOW TO MOVE FORWARD HERE.
UM, THAT BEING SAID, THINKING, THINKING THROUGH THIS A LITTLE BIT, I, I KNOW WE WERE ASKED TO STREAMLINE PROCESSES TO A CERTAIN DEGREE, SO, YOU KNOW, UH, ESTABLISHING A WORKING GROUP OR A SUBCOMMITTEE, I THINK EITHER WAY, UM, GETS US TO WHERE WE NEED TO BE.
THERE IS SOME OPTICS ASSOCIATED WITH FORMING A SUBCOMMITTEE IN TERMS OF PROCESS AND STRUCTURE AND SO FORTH.
UM, THAT OBVI OBVIOUSLY PLAY INTO THIS IN TERMS OF WHETHER WE ARE STREAMLINING THE PROCESS, BUT I THINK IT'S, YOU KNOW, SOMETHING FOR US TO THINK ABOUT AS WELL.
UM, THAT BEING SAID, UM, DO WE HAVE A MOTION TO MOVE THIS IN, IN ANY ONE DIRECTION OR ANOTHER AT THIS POINT? GO AHEAD, NICK.
JUST TO GET THE BALL ROLLING, I GUESS I'LL MAKE A MOTION THAT WE FORM THE CREDIT MARKET CREDIT SUBCOMMITTEE, CREDIT SUBCOMMITTEE, COME UP WITH ACUTE NAMES, SO WE GET GOOD INITIALS THERE, I GUESS.
UH, BUT THAT WE SET IT UP AS A COMMITTEE AND DIRECT, UH, STAFF TO COME BACK NEXT MONTH WITH A PROPOSED CHARTER WORKING WITH THE, UH, FORMER MEMBERS OF THE CREDIT WORKING GROUP.
SO SUBCOMMITTEE STRUCTURE IS WHAT I'M HEARING, SO, OKAY.
GOT A MOTION FROM NICK ON THAT.
I'VE GOT CLAYTON GREER IN THE QUEUE.
WE'LL COME BACK TO YOU IF WE HAVE A SECOND, FIRST OF ALL.
GOT A SECOND FROM CHRIS HENDRICKS.
YEAH, I WAS JUST GONNA ASK IF YOU'RE, IF YOU'RE GOOD, JUST ADOPT ONE OF THE PREVIOUS CHARTERS.
THAT WOULD SEEM TO BE THE EASY BUTTON.
UH, ALSO I SHARE BILL'S CONCERN ABOUT, UM, GETTING QUORUM.
UM, THE, THE GROUP NORMALLY HANDLES A LOT OF BENIGN ISSUES THAT REALLY NEED TO BE HANDLED, BUT DON'T REALLY IMPACT, UH, ENTITIES SIGNIFICANTLY.
AND THEN OCCASIONALLY THEY'LL GET, YOU KNOW, MASSIVE ITEMS THAT, THAT DOES BRING A LOT OF FOLKS IN.
UM, BUT, BUT THE DAY-TO-DAY STUFF THAT STILL NEEDS TO BE TAKEN CARE OF BY THIS GROUP IS, UH, USUALLY NOT
[00:35:01]
ATTRACTIVE ENOUGH TO BRING IN, UH, YOU KNOW, SOMEBODY THAT'S USUALLY AT THE LEVEL OF A CFO OR SOMETHING.SO, UH, GOT A QUESTION FROM JENNIFER SCHMIDT, AND BY THE WAY, WELCOME.
UM, I THINK MY QUESTION WOULD BE IF THERE'S AN OPPORTUNITY TO, TO PERHAPS USE THIS AS A WAY TO MAKE A VOTING STRUCTURED WORKING GROUP SO THAT WE HAVE A, UM, IN BETWEEN A SUBCOMMITTEE AND A WORKING GROUP FOR FUTURE MODELS.
UM, I THINK THE CONCEPT OF QUORUM IS A GOOD QUESTION.
AND SO I WONDER IF WE COULD HAVE A SMALLER REPRESENTATION SO THAT QUORUMS MORE EASILY ACHIEVED, UM, THAT REALLY FOCUSES ON HAVING CREDIT PROFESSIONALS INSTEAD OF REPRESENTATIVES OF EVERY MARKET PARTICIPANT SECTOR.
I UNDERSTAND, AND I THINK THAT MIGHT BE A POSSIBILITY THAT'S, ANNE AND I WERE HAVING A SIDEBAR DISCUSSION OF TRYING TO FIGURE OUT WHAT THE VOTING STRUCTURE OF SUCH A COMMITTEE WOULD LOOK LIKE.
WOULD IT LOOK LIKE PRS, WOULD IT LOOK LIKE WMS OR RO OS? YOU KNOW, SO, YOU KNOW, IT'S, IT'S ONE OF THOSE THINGS THAT, YOU KNOW, QUORUM IS GONNA BE ONE ISSUE, BUT YOU KNOW, ENSURING THAT YOU'VE GOT ADEQUATE REPRESENTATION ACROSS ALL MARKET SEGMENTS IS GONNA BE ANOTHER ISSUE AS WELL.
SO, UM, SO ONE OPTION, AGAIN, THE OPTION ON THE TABLE IS TO FORM IT AS A SUBCOMMITTEE.
UM, AND THAT'S THE MOTION THAT'S CURRENTLY ON THE TABLE.
OBVIOUSLY IF WE WANTED TO, WE COULD STEP BACK AND FORM IT AS A WORKING GROUP, AND THEN IF WE DECIDED WE WANTED TO ESCALATE IT TO A SUBCOMMITTEE, UM, THAT'S ALWAYS AN OPTION AS WELL.
SO, BUT JUST THROWING THAT OUT AS AN IDEA.
I JUST GOT A REAL TIME UPDATE FROM MY CREDIT PROFESSIONAL AND SHE PREFERS A VOTING STRUCTURE.
UM, SO I'M WONDERING IF, ARE WE HEMMED IN, IN ANY WAY WITH THE BYLAWS ON HOW A VOTING STRUCTURE LOOKS SIMILAR TO WHAT JENNIFER JUST MENTIONED? CAN WE DO ONE FROM EACH SEGMENT? IS, IS THERE ANY LIMITATIONS ON, UM, HOW WE ESTABLISH A VOTING STRUCTURE FOR THIS SUBCOMMITTEE? I FEEL LIKE THERE MAY BE SOME LIMITS IN THE TAX PROCEDURES POTENTIALLY.
YEAH, I THINK TA UH, THE BYLAWS ONLY SPEAK TO TAC AND WHAT THAT TAX STRUCTURE SHOULD LOOK LIKE.
I DON'T THINK THAT IT TRICKLES DOWN THE SUBCOMMITTEES, BUT I'LL, I'LL, I'LL NEED TO GO BACK AND LOOK.
AND THEN, UM, TAC PROCEDURES, YOU KNOW, TAC CAN CHANGE AS THEY WANT TO, SO I DON'T THINK THERE'S ANYTHING THAT LOCKS IT IN, BUT WE WOULD HAVE TO CHANGE THE TAC PROCEDURES.
GOT BOB HILTON IN THE QUEUE, FOLLOWED BY NICK.
UH, ON THE VOTING STRUCTURE, I THINK YOU HAVE TO HAVE, UH, A SET NUMBER PER, PER, UH, SEGMENT RATHER THAN A PRS TYPE VOTING.
AND I SAY THAT BECAUSE WE HAVE, WE'RE GOING TO HAVE A REQUIREMENT FOR THOSE THAT WOULD BE VOTING.
AND IF YOU HAVE PEOPLE COMING AND GOING AND DIFFERENT PEOPLE VOTING AND NOT VOTING AT VARIOUS MEETINGS LIKE YOU DO, PRS, TRYING TO KEEP UP WITH THOSE QUALIFICATIONS BE NEXT TO IMPOSSIBLE.
SO, UH, I THINK THAT WE DO NEED TO SET THAT.
I'M NOT OPPOSED TO IT HAVING, YOU KNOW, BEING A, A HYBRID WORKING GROUP.
IT'D BE THE FIRST TIME WE DID THAT.
I REALLY DON'T CARE WHAT WE CALL IT, BUT IF IT'S IMPORTANT TO HAVE VOTING, I THINK WE SHOULD, AND I THINK IT SHOULD BE A SEGMENT TYPE VOTE.
NICK, I AM NOT A LAWYER AND I DON'T PLAY ONE ON TV, SO, BUT I DON'T THINK WE HAVE TO HAVE A SET NUMBER OF VOTES PER SEGMENT.
THERE ARE SUBCOMMITTEES THAT DO NOT EVEN HAVE A COMMERCIAL CONSUMER REPRESENTATIVE ON THOSE COMMITTEES.
I THINK WE CAN SET THAT VOTING STRUCTURE AND POSSIBLY FOLLOW SOMETHING SIMILAR TO WHAT THE OLD CREDIT WORKING GROUP HAD TO MAKE THIS A FUNCTIONAL SUBCOMMITTEE BECAUSE WE NEED CREDIT PROFESSIONALS AND SOME SEGMENTS MAY NOT ACTUALLY HAVE A, UH, DOG IN THAT HUNT AND WANT A CREDIT PROFESSIONAL ON THERE.
SO I, I CERTAINLY THINK WE CAN SET THE STRUCTURE THE WAY WE WANT AND THE REPRESENTATION THE WAY WE WANT.
CERTAINLY IF THEY'RE PEOPLE ATTACKED THAT DISAGREE, WE CAN VET THAT HERE WITHOUT A PROBLEM.
AND AS LONG AS WE CAN COME TO A CONSENSUS ON WHAT IT IS, I THINK WE CAN MOVE FORWARD.
UH, NOW OF COURSE THE ATTORNEYS MAY DISAGREE WITH ME, BUT THAT WOULDN'T BE THE FIRST TIME, UH,
SO ONE THING WE WANT TO BE VERY CAREFUL OF AS WE SET, SET FORTH ON THIS ENDEAVOR IS TO MAKE SURE THAT WE'RE SETTING, THAT WE'RE NOT LOWERING THE BAR TO A POINT THAT WE'RE UNDERCUTTING, UM, YOU KNOW, OUR CREDIBILITY WITH THE BOARD AND WITH THE COMMISSION IN TERMS OF MAKING SURE THAT THEY ARE GETTING, UM, YOU KNOW,
[00:40:01]
THE FEEDBACK THAT THEY'RE HOPING AND WANTING TO GET FROM US IN THAT REGARD.SO I THINK, YOU KNOW, IN TERMS OF, OF ESTABLISHING QUORUM AND IN TERMS OF ESTABLISHING, UM, PARTICIPATION, I THINK WE NEED TO BE VERY MINDFUL OF THAT AS, AS WE'RE SETTING THIS UP HERE.
UM, YOU KNOW, I I, I, YOU KNOW, I'M NOT OPPOSED IF, IF A VOTING STRUCTURE IS THE WAY THAT WE NEED TO GO, BUT WE CERTAINLY WANNA MAKE SURE THAT PARTICIPATION IS MORE THAN MAYBE ONE, ONE INDIVIDUAL FROM EACH SEGMENT AS FAR AS THAT'S CONCERNED.
SO, UH, OTHERWISE, YOU KNOW, WE SET THE BAR SO LOW THAT I'M NOT SO SURE THAT WE GET THE FEEDBACK THAT WE ULTIMATELY ARE HOPING THE BOARD TO RECEIVE FROM US.
UM, SO IT LOOKS LIKE THE QUEUE IS EMPTY, BOB.
DID YOU HAVE ANOTHER COMMENT, BOB HILTON? YEAH, JUST REAL QUICKLY ON THE, THE COMMENT THAT NICK MADE, THE ONLY CONCERN I WOULD HAVE ABOUT THAT IS, IS IF NOT HAVING SOME TYPE OF A SEGMENT THING IN THERE, I AND JUST CREDIT PROFESSIONALS, I WOULD HATE TO HAVE FOUR GENERATORS THAT WERE SHOWING UP VOTING OR FOUR MUNIS OR FOUR OF SOMETHING THAT WOULD MEET A QUORUM THAT WE SET THAT WOULDN'T REPRESENT THE MARKET AS A WHOLE.
SO THAT'S MY ONLY CONCERN ABOUT THAT.
EMILY, YOU'RE GONNA SAVE ME, RIGHT? NO, I, I'M TRYING TO THINK THROUGH, UM, AND SORRY, I'M ON A LOT OF COLD MEDICINE.
UM, DO WE WANT TO START WITH A CHARTER AND A FRAMEWORK BEFORE WE VOTE ON A STRUCTURE SO THAT WE CAN WORK THROUGH SOME OF THESE QUESTIONS? IS THAT SOMETHING THAT TACK CAN MAKE A MOTION TO DO TODAY? YEAH, CLIFF, I'M GONNA JUMP BACK IN SINCE I'M, UH, EMILY, I AGREE WITH YOU.
WHY DON'T WE, WHY DON'T WE GET THE GROUP TOGETHER, GET THE CHARTER WORKED OUT JUST SO WE CAN MOVE FORWARD AT THIS STAGE.
NOT, YOU KNOW, RECOGNIZE THAT THESE INITIAL FORMING STAGES MAY BE A WORKING GROUP MM-HMM.
UM, AND, AND WE SHOULD LEAVE THINGS THE WAY THEY ARE.
I THAT'S CONTRARY TO THE MOTION.
I THINK THAT MAY HAVE BEEN MADE, BUT WE'RE NOT GONNA SOLVE IT HERE TODAY WHEN WE'RE TALKING ABOUT A, A GROUP THAT WE'RE THINKING OF A SYMBOL FOR THE NAME OF YEAH, ABSOLUTELY.
SO, AND, AND ANNE AND I WERE TALKING ALONG THE SAME LINES, A AS FAR AS THAT'S CONCERNED.
SO THAT MAY BE OUR BETTER PATH AT THIS POINT, JUST TO GO AHEAD AND COME BACK WITH THE CHARTER, GO AHEAD AND COME BACK, UM, WITH RECOMMENDATIONS FOR HOW TO PROCEED AT THIS POINT.
SO, UM, WE STILL HAVE THE MOTION ON THE TABLE.
ALICIA, YOU'RE NEXT IN THE QUEUE.
YEAH, I, UH, I AGREE WITH BOTH OF THE, THE COMMENTS, UM, BEFORE ME.
ONE THING I MIGHT, UH, ADD, I HAVE NOT BEEN TO A LOT OF THOSE, UM, GROUPS, BUT DO THE CREDIT PROFESSIONALS GENERALLY AGREE? ARE THOSE VOTES GENERALLY UNANIMOUS? DO, DO THEY GET SPLIT QUITE A BIT? WHAT, WHAT DO THE VOTES LOOK LIKE? AND I MAY LOOK TO BILL BARNES OR, OR SOMEONE WHO ATTENDS A LOT OF THOSE.
I I'VE ONLY BEEN TO A COUPLE, JUST KIND OF WONDERING, YOU KNOW, HOW OFTEN THEY AGREE.
I THINK THERE'S, UH, A PRETTY GOOD AMOUNT OF DEBATE ON CREDIT POLICIES.
UM, IT'S MY NICE WAY OF SAYING I DON'T, IT'S NOT ALWAYS AGREEMENT.
I THINK, UM, THERE'S ALWAYS THIS TENSION IN OUR MARKET, UM, AND IN THE CREDIT DESIGN, THE CREDIT RULES TO ESTABLISH A BALANCE BETWEEN AN APPROPRIATE AMOUNT OF, UH, CONSERVATISM IN THE CALCULATION OF THE COLLATERAL REQUIREMENTS THAT WOULD BUFFER US FROM UP UPLIFT RISK VERSUS HAVING ACCURATE, UH, ACCURATE REPRESENTATION OF YOUR, OF YOUR TRUE EXPOSURE.
SO WE'RE, WE DEBATE THAT QUITE A BIT, UH, IN HOW THE CURRENT CREDIT RULES ARE PERFORMING.
[00:45:10]
SAY, I THINK THAT'S GOOD.WE SHOULD, I HAD A REALLY GREAT WRAP UP TO WHAT I WAS GONNA SAY.
UH, THE POINT IS THERE IS A GOOD AMOUNT OF DEBATE.
IT'S NOT ALL AGREEMENT AND WE'LL, WE'LL PAUSE UNTIL THE ANSWERING MACHINE
NOT EVERY 10 YEARS WE'VE A BIG FIGHT.
UM, OKAY, UH, NEXT IN THE QUEUE WE'VE GOT BOB HILTON, FOLLOWED BY CLAYTON GREER.
HEY, NICK, UH, WOULD YOU BE WILLING TO EITHER WITHDRAW OR TAKE A FRIENDLY AMENDMENT TO, UH, SET UP A, A WORKING GROUP WITH THE INTENT ON GOING OUT AND WORKING UP A CHARTER, POTENTIAL VOTING AND WHAT THE STRUCTURE SHOULD BE, WHETHER VOTING, UH, A, UH, WORKING GROUP OR ULTIMATELY A, A, UH, SUBCOMMITTEE? I, I'M CERTAINLY OPEN TO A FRIENDLY AMENDMENT, BUT I'M NOT EXACTLY SURE WHAT THAT AMENDMENT WOULD LOOK LIKE.
UH, BUT, UH, I'LL TAKE A STAB AT IT.
SO IF I AMEND MY MOTION TO CREATE A CREDIT SUBCOMMITTEE OR WORKING GROUP WITH APPROPRIATE VOTING STRUCTURE AS DETERMINED BY STAFF AND THE CREDIT PROFESSIONALS AND TO DRAFT A CHARTER AND COME BACK, DOES THAT COVER IT? I THINK SO.
CHRIS, YOU GOOD WITH THAT? SECOND.
SO WE'VE GOT THE MOTION, WE'VE GOT THE SECOND.
DID WE CAPTURE THAT KIND OF
SO I THINK WE'VE GOT THE INTENT.
SO WE'VE GOT A MOTION OF SECOND.
I THINK WE UNDERSTAND THE INTENT AND THE DIRECTION ON THIS BILL BARNES HERE.
NEXT, JUST WANTED TO REPORT, THERE'S A, A LEADING CANDIDATE FOR A NAME FOR THIS GROUP, THE CREDIT PERFORMANCE AND REVIEW WORKING OR SUBCOMMITTEE, UH, THAT IS, UH, COURTESY OF MR. DAVID KEY
UH, YEAH, I JUST MADE THE COMMENT THERE THAT WHEN THE BOARD WAS THE ONE THAT WOULD VOTE, AND THE VOTES WERE VOICE VOTES MOSTLY, AND THE VOTING STRUCTURE WAS VERY LOOSE, THEY DIDN'T, UM, I DON'T THINK THEY EVER CHECKED FOR QUORUM TO SEE IF THEY HAD DIVERSITY IN THE SEGMENTS.
SO I THINK BOB'S CONCERN ABOUT, YOU KNOW, HAVING IT ALL STACKED, ONE SEGMENT COULD HAVE AND MAY MAYBE DID HAPPEN, UH, DURING SOME OF THOSE MEETINGS.
MOST OF THE VOTES WERE, YOU KNOW, UNANIMOUS VOTES, SO IT DIDN'T REALLY MATTER.
BUT, UM, WHENEVER WE GET INTO CONTENTIOUS ITEMS, THERE DEFINITELY NEEDS TO BE A STRUCTURE THAT'S MAINTAINED IF THIS IS GOING TO BE A VOTING GROUP, AND, YOU KNOW, ATTENDANCE IS ALWAYS A PROBLEM WITH THAT GROUP.
BILL, USE IN THE QUEUE AGAIN, OR, OKAY, I'M GONNA CLARIFY THAT MOTION.
I JUST WANTED TO CLARIFY THE MOTION IS FOR, IS TO FORM A CREDIT GROUP, SOME SORT OF CREDIT GROUP THAT REPORTS DIRECTLY TO TACK AND TO HAVE THEM DEVELOP A CHARTER, UM, AND EVALUATE THEIR VOTING STRUCTURE AND MEMBERSHIP.
IS THAT CORRECT? IS THAT FAIR, NICK? YES.
WELL, I GUESS, I GUESS THE PROBLEM IS DO WE SAY WE'RE FORMING A GROUP OR A COMMITTEE TO EVALUATE WHETHER THEY'RE GOING TO BE A GROUP OR A COMMITTEE? SO, UH, I'M, I'M NOT SURE HOW TO WORD THAT.
THE CAL CLEAREST, UH, THAT WE SHALL FORM A BODY THAT'S GOING TO COME BACK AND TELL US WHETHER THEY WANT TO CHARTER AS A COMMITTEE OR WORK GROUP.
I GUESS THE OTHER OPTION IS JUST NOT TO TAKE A VOTE THIS MONTH AND HAVE A GROUP MEET FORM THEIR CHARTER WITH THEIR PROPOSED VOTING STRUCTURE AND THEN BRING IT BACK TO TACT TO VOTE ON.
NICK, I'M, I'M, I'M STARTING TO THINK THAT MIGHT BE THE EASIER WAY TO GO.
I MEAN, OBVIOUSLY YOU'RE THE, WE'RE SIMPLY DIRECTING STAFF AND THE MEMBERS OF THE FORMER CREDIT WORKING GROUP TO COME BACK WITH A CHARTER FOR A WORKING GROUP OR COMMITTEE TO REPORT TO TAC AND, UH, WHAT THEY BELIEVE IS THE APPROPRIATE STRUCTURE GOING FORWARD.
SO WE'LL HAVE SOMETHING TO DISCUSS NEXT TIME.
[00:50:01]
SMITH, FOLLOWED BY CLAYTON GREER.UM, I JUST WANTED TO NOTE, I THINK IN THOSE DISCUSSIONS ABOUT THE CHARTER, THAT IF ATTENDANCE IS A CONCERN, THEY COULD DISCUSS THE CADENCE OF THE MEETINGS.
I THINK NOT BEING BOUND BY THE STRUCTURE OF THE OLD CREDIT WORKING GROUP.
I DON'T THINK THERE'S ANY REQUIREMENT YET TO REVIEW NPRS AT A CERTAIN TIME AFTER PASSAGE OR BEFORE BOARD.
SO IF ATTENDANCE OR, OR GETTING PEOPLE THERE IS A WORRY, I THINK THAT THE CADENCE COULD BE PART OF THAT KIND OF SCOPING DISCUSSION.
I DON'T THINK COMMITTEES DON'T.
SO, UH, SO NICK, YOUR MOTION STILL STANDS? I'M SORRY IF IT'S WORKABLE.
YEAH, THE MOTION STILL STANDS.
I'M NOT CLEAR WHAT THE MOTION IS THOUGH.
I, I THINK WE UNDERSTAND THE DIRECTION THAT WE WANT TO GO WITH THIS.
SO, I MEAN, WE CAN CERTAINLY GIVE DIRECTION TO HAVE A GROUP COME BACK WITH THIS NICK, IF YOU WANT.
UM, BUT OBVIOUSLY, UM, YOU KNOW, YOU'VE GOT A MOTION ON THE TABLE, SO YOU KNOW, IF YOU WANT TO CONTINUE WITH THE MOTION, THAT'S FINE AS WELL, BUT WE'LL JUST NEED TO MAKE SURE WE CRAFT THE LANGUAGE OF THE MOTION APPROPRIATELY.
I'M, I'M SORRY, I DID HAVE A QUESTION IF YOU OH, YEAH, GO AHEAD, CLAYTON.
AND THEN, UH, WE'VE GOT BILL, AFTER THAT, THAT GROUP, UH, PRODUCED A NUMBER OF REPORTS THAT WENT DIRECTLY TO THE FINANCE AND AUDIT COMMITTEE FOR REVIEW, LIKE, UM, PERCEIVED CREDIT RISK OF THE MARKET, UM, MONTHLY AND A NUMBER OF OTHER THINGS, OR, OR IS THIS GROUP GOING TO BE TASKED WITH DOING THAT? UM, FOR THE FINANCE AND AUDIT COMMITTEE OF THE BOARD, OR THE, OR DIRECT REPORT TO THE BOARD OR THROUGH OUR, OR THROUGH TACT.
NOW THAT'LL, THAT'LL FLOW THROUGH TACT NOW, CLAYTON.
SO THE DESIRE OF THE R AND M COMMITTEE AND THE BOARD WAS TO HAVE TACT BE THE SINGLE SOURCE OF EXPERTISE AS IT PERTAINED TO THOSE PARTICULAR ITEMS. SO THE INTENTION WOULD BE THAT THOSE REPORTS AND SO FORTH WOULD FLOW THROUGH TAC TO R AND M AND TO THE BOARD ULTIMATELY.
SO, OKAY, WE'VE GOT, UH, BILL BARNES IN THE QUEUE.
SO THE, THE QUESTION IS, WHO GETS THIS ASSIGNMENT TO BRING BACK? UM, THE CURRENT CHAIR OF THE CREDIT WORKING GROUP, UH, WOULD, IS VOLUNTEERING THAT THEY COULD TAKE THAT UP SO WE COULD ASSIGN THIS OVER THERE, UM, AND HAVE THE ACTUAL CREDIT WORKING GROUP, UH, DISCUSS IT AND BRING BACK RECOMMENDATIONS IF THAT WORKS FOR THIS GROUP.
I WASN'T SURE WHO WE THOUGHT WOULD ACTUALLY PERFORM THIS ASSIGNMENT, SO YEAH, THAT'S, THAT'S WHERE WE'RE IN A KIND OF A QUASI WEIRD YEAH, I KNOW POSITION.
RIGHT? SO WE'VE GOT A CREDIT, A CREDIT WORKING GROUP THAT'S BEEN DISBANDED.
WE'VE GOT A MARKET CREDIT WORKING GROUP THAT WILL BE DISBANDED.
SO WE'VE, WE'VE KIND OF GOT A A AN AREA WHERE, WHERE WE KIND OF NEED TO FORM SOME TYPE OF GROUP AND TELL 'EM TO COME BACK AND, AND TELL US WHAT THEY NEED.
AND SO, YOU KNOW, IT IT, IT'S HARD TO TELL SOMEBODY TO GO OFF AND DO SOMETHING IF WE DON'T KNOW WHO WE'RE TELLING THAT TO.
AND SO IT'S A LITTLE BIT OF A QUANDARY OR A CHICKEN AND EGG SCENARIO AT THIS POINT.
A VOLUNTARY GROUP OF CREDIT PROFESSIONALS, FORMALLY KNOWN AS THE CREDIT GROUP WORKING GROUP.
WE MIGHT WANNA LOOK AT THIS
IS THAT CORRECT? MAYBE WE COULD SEND IT OVER TO MC WG WITH THE UNDERSTANDING THAT CREDIT, THE OLD CREDIT WORK GROUP WILL BE MEETING WITH THEM.
THANKS ANNE, HELP THE CHARTER.
WE GOT BRENDAN SAGER IN THE, IN THE QUEUE AND THEN EMILY JOLLY.
YEAH, I, I THINK I'M JUST, UH, REITERATING WHAT MAKES SENSE HERE.
I MEAN, I DON'T THINK YOU NEED TO TAKE ANY ACTION TODAY.
WE CAN TAKE, AND I AM, BY THE WAY, THE, WAS THE, UM, CHAIRPERSON OF THE MARKET CREDIT WORKING GROUP, WHICH I STILL THINK EXISTS.
SO I THINK IT'S PRETTY CLEAR WHAT WE NEED TO DO AS FAR AS, UH, WHAT OUR STRUCTURE NEEDS TO BE AND GETTING A CHARTER BACK TO THE NEXT TAC MEETING.
AND I THINK WE CAN HANDLE THAT, YOU KNOW, UM, SO ANY TOO MUCH EXPLICIT INSTRUCTION.
EMILY? YEAH, JUST WANTED TO CLARIFY IF WE'RE GONNA DO THAT.
SO WHAT IF WE DIRECT MARKET CREDIT WORKING GROUP TO MEET, BRING THIS BACK TO US.
WE DON'T NECESSARILY NEED A MOTION AT THAT POINT IN TIME, IF THAT'S OKAY WITH YOU, UH, NICK.
AND, UH, WE CAN HAVE THEM GIVEN THE FLAVOR OF THE CONVERSATION TODAY, HAVE THEM DEVELOP THAT AND BRING, HAVE THAT BROUGHT BACK TO US NEXT MONTH.
[00:55:01]
THAT OKAY WITH YOU, NICK? OKAY.CAN YOU WITHDRAW THE MOTION? I'LL WITHDRAW THE MOTION.
SO WE WILL REFER THIS TO MARKET CREDIT WORKING GROUP AND WOULD ASK THAT THEY COME BACK NEXT MONTH WITH A CHARTER PROPOSAL AND A, UH, POTENTIAL STRUCTURE, UH, AS IT PERTAINS TO VOTING STRUCTURE AND, UH, MEETING FREQUENCY AND SO FORTH.
ANY OTHER COMMENTS, THOUGHTS, QUESTIONS ON THIS PARTICULAR ISSUE? ALL RIGHT, MOVING ON TO AGENDA
[9. Review of ERCOT Market Impact Statements/Opinions and IMM Opinions]
ITEM NUMBER NINE, REVIEW OF ERCOT MARKET IMPACT STATEMENTS, OPINIONS AND I M M OPINIONS.UM, THE ERCOT DOES SUPPORT ALL OF THE REVISION REQUESTS THAT ARE BEING CONSIDERED HERE BY TAC.
UM, I DON'T KNOW IF THE, IM WANTS TO CHIME IN, BUT THEY HAVE NO OPINION ON ALL OF THESE EXCEPT FOR NPR 1149, AND THEY DID FILE COMMENTS ON 1149 IN SUPPORT OF IT.
I JUST WANTED TO REITERATE OUR SUPPORT FOR 1149 AND IN PARTICULAR, HOPE THAT, UM, ENCOURAGE OR CUT TO IMPLEMENT THIS AS SOON AS POSSIBLE SO THAT, UM, PEOPLE ARE NOT PAID FOR ANCILLARY SERVICES THAT THEY DID NOT PROVIDE.
ANY COMMENTS OR QUESTIONS PER PERTAINING TO THE IMPACT STATEMENTS? OKAY.
HEARING NONE, UH, MARTHA, YOU'RE
[10. PRS Report (Vote)]
UP.MARTHA HENSON FROM ENCORE WITH THE PRS UPDATE, THERE WERE FIVE NPRS THAT CAME THROUGH THE, UH, DECEMBER AND JANUARY PRS MEETINGS THAT TAC HAS UP FOR CONSIDERATION TODAY.
THE FIRST ONE CAME FROM PLUS POWER, IT'S NPR 1144.
IT WOULD ALLOW UP TO 500 KW OF, OF GENERATOR OWNED STATION BACKUP LOAD TO BE SERVED BY THE CERTIFICATED UTILITY.
UM, RATHER THAN BEING METERED AND SERVED THROUGH THE, THE EPS METER AT THE POI TO THE GRID, UH, THIS WOULD BE ASSUMING THAT THERE'S MUTUAL AGREEMENT BETWEEN ALL THE PARTIES INVOLVED IN THE ARRANGEMENT.
IT'S ESTABLISHING A 20 MEGAWATT THRESHOLD AS THE, THE NUMBER BELOW WHICH AN RMR ANALYSIS WOULD NOT BE REQUIRED BY ERCOT OR CONDUCTED BY ERCOT FOR A RESOURCE THAT'S RETIRING BELOW THAT THRESHOLD.
UH, GIVEN THAT SIZE, THEY WOULD LIKELY HAVE NEGLIGIBLE IMPACTS ON RELIABILITY TO THE SYSTEM.
AND THEN 1151 ACTUALLY CAME FROM YOURS.
TRULY, UH, THIS WAS FROM THE TAX STRUCTURAL REVIEW DISCUSSION LAST YEAR.
UM, IT WOULD ALLOW PRS TO CANCEL MONTHLY MEETINGS CONSISTENT WITH THE ABILITIES THAT THE OTHER SUBCOMMITTEES ALREADY HAVE.
ALL THREE OF THESE NPRS WERE UNOPPOSED AND WERE NO IMPACT.
AND THEN THE LAST TWO HERE IS ARE GETTING INTO THE ONES THAT DID HAVE COST IMPACTS IN THE IAS.
1149 WAS SPONSORED BY ERCOT, AND IT'S ADDRESSING, UH, ERCOT CHARGES TO QUES FOR AS OBLIGATIONS NOT PROVIDED, UH, USING REALTIME TELEMETRY INFORMATION, IT WAS 120 TO 160,000 IN IMPLEMENTATION COSTS.
THIS ONE CAME FROM ERCOT LEGAL.
IT'S ADDRESSING CHANGES TO THE ERCOT FEE SCHEDULE.
SO ADDING, REMOVING, AND UPDATING FEES THAT MARKET PARTICIPANTS PAY FOR THE VARIOUS ERCOT RELATED ACTIVITIES THAT THEY DO.
UH, THIS ONE HAD A TWO PHASED IMPLEMENTATION PART CAN BE IMPLEMENTED, UH, WITH NO PROJECT, NO COST.
AND THEN, UH, THERE'S A SMALL PART THAT, UH, REQUIRES A A 30 20 TO $30,000 IMPLEMENTATION PROJECT.
AND THESE TWO WERE ALSO UNOPPOSED.
SO THAT COVERS THE, THE FIVE VOTING ITEMS. CLIFF, KICK IT BACK TO YOU.
SO, UM, ANY COMMENTS OR QUESTIONS FOR MARTHA ON, ON ANY OF THESE REVISION REQUESTS? CON BALLOT? UH, YES, I DO HAVE A QUESTION ON 1149, UM, FOR ERCOT, AS IT PERTAINS TO REAL TIME TRANSACTIONS OF ANCILLARY SERVICES, UH, CURRENTLY THE PROCESS EXISTS WHERE WE CAN TRANSACT ANCILLARY SERVICES AFTER THE CLOSE OF THE ADJUSTMENT PERIOD WITH A CALL TO THE CONTROL ROOM CONFIRMING THAT, UM, HOW DOES THIS IMPACT THAT PROCESS ON A GOING FORWARD BASIS? UH, WILL THIS I IMPEDE OR SOMEWHAT STY THAT ABILITY TO TRANSACT ANCILLARY SERVICES IN REAL TIME? I'M, I'M GONNA LET DAVE ANSWER THAT.
[01:00:01]
AT THAT.IT, IT, I THINK IT'S, IT ACTUALLY IS GOING TO HELP THAT PROCESS.
SO REALLY RIGHT NOW, UM, THE PROCESS THAT EXISTS IS FOR FOLKS TO MOVE AROUND ANCILLARY SERVICES WITHIN THEIR PORTFOLIO.
OBVIOUSLY, THEY CAN DO THAT IN REAL TIME WITH TELEMETRY THAT THAT'S ALL GONNA STAY IN PLACE.
NOW, ONE OF THE CHANGES THAT IS PROPOSED UNDER 1149 IS PREVIOUSLY ANCILLARY SERVICE TRADES COULD NOT BE SUBMITTED AT ALL, EVEN THOUGH THEY'RE PART OF THE CONSIDERATION OF, OF THE ANTLEY SERVICE SUPPLY RESPONSIBILITY THAT FACTOR INTO THESE CALCULATIONS.
THE NPR CHANGES, THE FUNCTIONALITY AND THE LANGUAGE ASSOCIATED WITH THAT TO ALLOW FOLKS TO SUBMIT ANCILLARY SERVICE TRADES WITHIN THE OPERATING HOUR SO THAT, THAT CAN BE ACCOUNTED FOR.
NOW, WE STILL WILL EFFECTIVELY NEED THAT, YOU KNOW, FULL PROCESS TO FLOW THROUGH SO THAT, YOU KNOW, THE, AS PART OF THE TRADE PROCESS, I'M, I'M SURE PEOPLE IN THE ROOM ARE AWARE OF ESSENTIALLY BOTH PARTIES HAVE TO ESSENTIALLY SUBMIT THE SAME TRADE BEFORE IT EFFECTIVELY SHOWS UP IN THE SYSTEMS. SO IT WILL BE, WHEN IT SHOWS UP IN THE SYSTEMS, THAT'LL TAKE EFFECT FOR THOSE CALCULATIONS, BUT IT DOESN'T, I THINK, IMPROVE THE FUNCTIONALITY CERTAINLY FROM WHAT WE HAVE TODAY.
SO, DAVID MERCADO? YEAH, CENTERPOINT ENERGY HAS, UH, ABSTAINED FROM NPR 1144 WHEN IT WENT UP FOR VOTE FOR BOTH, UH, WMS AND PRS DUE TO CONFLICTS TO OUR SERVICE STANDARDS.
AND LIKE TO, UH, REQUEST A STANDALONE BALLOT FOR NPR 1144 IF POSSIBLE.
SO WE'VE GOT A SEPARATE STANDALONE REQUEST FOR 1144.
UM, JEREMY, ARE YOU STILL IN THE QUEUE? NO.
UH, BOB HILTON? YEAH, UH, THIS IS BOB.
I'LL, I'LL JUST GO AHEAD AND MAKE THE MOTION ON 1144 SINCE, UH, THAT'S BEEN REQUESTED.
SO WE'VE GOT A MOTION TO APPROVE NPR R 1144.
DO I HAVE A SECOND? GOT A SECOND.
UM, COREY, IF YOU DON'T MIND QUEUING THAT UP AND HEARING NO, UH, NO OPPOSITION TO IT.
WE WILL GO AHEAD AND MOVE THE REMAINDER TO THE COMBO BALLOT.
SO WE'VE GOT OUR MOTION ALREADY QUEUED UP.
WE'RE, UH, READY TO TAKE THE VOTE.
AND AS SUSIE MENTIONED AT THE TOP, THOSE OF YOU THAT ARE PARTICIPATING ON THE WEBEX, WEBEX, YOU MAY HAVE BEEN OR YOU WE'RE DEFINITELY MUTED ON ENTRY.
SO YOU MIGHT BE DOUBLE OR TRIPLE MUTED DEPENDING ON YOUR DEVICE.
SO CHECK YOUR MUTES WHEN WE GET TO YOUR SEGMENT AND WE WILL BEGIN UP WITH THE CONSUMERS, WITH MARK.
CLIFF? YES, THANK YOU ON OUR INDEPENDENT GENERATORS, NED, FOR IAN.
UNDER OUR IPMS, JEREMY? YES, THANK YOU, REMI.
UNDER IUS, STACY FOR KEITH? YES.
MOTION CARRIES ONE ABS EXTENSION.
ALL RIGHT, THAT CLOSES OUT OUR PRS REPORT.
[11. RMS Report]
TO AGENDA ITEM NUMBER 11, THE RMS REPORT.ALL RIGHT, WHERE ARE WE? OKAY, UM, ONE THING THAT HAS HAPPENED, UH, AT OUR,
[01:05:01]
AT THE DECEMBER RMS MEETING, WE HAD A SUGGESTION BROUGHT FORTH, UM, BY KATHY SCOTT WITH CENTER POINT THAT WE TAKE A LOOK AT ALL OF THE EXISTING PROJECTS AND ANNUAL ACTIVITIES AND, UM, LOOK AND SEE IF WE CAN REASONABLY ACCOMPLISH THOSE SUCCESSFULLY GIVEN THE AMOUNT OF EFFORT BOTH IN THE ERCOT MARKET AND IN OUR INTERNAL COMPANIES, AND SEE IF IT WAS POSSIBLE TO DO SOME OF THOSE SUCCESSFULLY OR MOVE SOME AROUND.AND, UM, ONE OF THE THINGS THAT WE DID DO IS WE HELD A WORKSHOP AFTER, UH, THE DAY BEFORE THE JANUARY RMS MEETING.
AND, UM, SOME OF THE THINGS THAT WE DID, WE LOOKED AT ALL OF THE PROJECTS AND ALL OF THE ACTIVITIES, AND THERE'S A LOT FOR RETAIL EVERY YEAR.
UM, WE DID LOOK AT THE, AT THE, I WOULD SAY THE RISK ASSOCIATED WITH THOSE, WHICH WERE MOSTLY RELATED TO RESOURCE CONSTRAINTS.
YOU REALLY NEED A LOT OF EXPERTISE AND A LOT OF MANPOWER TO GO AHEAD AND ACCOMPLISH A LOT OF THESE.
WE ARE PRETTY MUCH FULL EACH YEAR ANYWAY.
IN ADDITION TO THAT, AT ANY TIME WE COULD HAVE A MASS TRANSITION, WHICH MEANS EVERYBODY STOPS WHAT THEY'RE DOING, AND THOSE RESPONSIBLE FOR PROCESSES GO AHEAD AND EXECUTE THE MASS TRANSITION PROCESSES.
SO WHAT WE DID, UH, IS WE LOOKED AT THIS AT RMS, AND RMS AGREED THAT WE NEEDED TO MAKE SOME ASSIGNMENTS TO THOSE WORKING GROUPS OR TASK FORCE THAT HAD RESPONSIBILITY FOR THE PROCESSES.
SO WE DID GO AHEAD AND MAKE SOME ASSIGNMENTS.
HELLO, WHY AM I NOT ADVANCING? IT'S OKAY.
ABOUT WHICH WINDOW YOU'RE TYPING ON.
SO IF YOU'RE OVER HERE, YOU CAN USE THE MOUSE WAY YOU OPEN UP AND DOWN HERE.
I HAVE, I'VE ONLY, IT'S BEEN 12 YEARS SINCE I'VE BEEN UP HERE, BUT THANK YOU.
SO, UM, WHAT WE WANTED TO DO IS GIVE THE OPPORTUNITY TO LIKE PROFILING WORKING GROUP, BECAUSE THEY'VE GOT A LOT OF EXPERTISE.
THEY MANAGED THESE PROCESSES AND THEY UPDATE THE PROFILING, WORKING GROUP GUIDE, PROFILING GUIDE.
EACH YEAR WE DID GO AHEAD AND GET TEXAS SET AND THE, UM, COORDINATION TEAM AND THE TEXAS DATA TRANSPORT MARKET TRACK SYSTEM GROUPS TO MOVE FORWARD AND SEE WHAT COULD BE DONE.
THERE WAS A FAIR AMOUNT OF CONVERSATION REGARDING LIMITING THE TEST FLIGHTS IN 2024 TO JUST TWO.
THAT IS NOT A POPULAR DECISION BY ALL MARKET PARTICIPANTS, BUT IT WAS DISCUSSED.
THE OTHER BIG CONVERSATION, I BELIEVE, IS AROUND MOVING THE DATE FOR IMPLEMENTATION, INCLUDING TEXAS, TEXAS AT 5.0, INCLUDING TESTING, WHICH REQUIRES ALL MARKET PARTICIPANTS TO AT LEAST TEST CONNECTIVITY.
AND THEN WE DO KIND OF LIKE A ROUND ROBIN APPROACH IS WHAT WE CALL IT.
SO IS IT MOVING THAT DATE OUT? UM, THAT WAS THE MORE POPULAR DECISION.
SO PROFILING, WORKING GROUP'S, GONNA TAKE A LOOK AT WHETHER SENSITIVITY, WHAT CAN BE DONE THERE, DO WE NEED IT, DO WE NEED TO DELAY IT? WHAT, WHAT CAN HAPPEN? AND THEN ANNUAL VALIDATION.
AND, UM, THE OTHER GROUPS ARE LOOKING AT THE MOVING TEXAS 5.0, WHICH IS ALREADY SLATED FOR IMPLEMENTATION OF EARLY, MID TO MID 20, 20, 24.
SO, UM, THAT, THOSE ARE SOME OF OUR VERY SERIOUS CONCERNS GOING ON RIGHT NOW AT RMS. UH, DEBBIE GOT A QUESTION FROM ERIC.
UM, A COMMENT AND MAYBE A SUGGESTION TO THINK ABOUT.
UM, I, I'M GLAD TO HEAR THAT GOING DOWN TO TWO MASS TRANSITION EVENTS, I MEAN, TWO, UH, TESTING AND MARKET FLIGHTS IS UNPOPULAR.
UH, IT'S CRITICAL FOR RESIDENTIAL CONSUMERS THAT THERE BE ROBUST RETAIL COMPETITION AND LIMITED THE ABILITY FOR NEW ENTRANTS TO COME INTO THE MARKET, UM, IS PROBLEMATIC.
I THINK IT'S ALREADY PROBLEMATIC AT THE EXISTING LEVEL, UM, ESPECIALLY SINCE SO MANY RETAILERS HIRE COMPANIES THAT HAVE DONE IT A HUNDRED THOUSAND TIMES.
IT'S, YOU KNOW, I, I WONDER HOW MUCH OF THAT NEEDS TO BE DONE EVERY TIME.
IF, IF THE PROBLEM IS, UH, HAVING PEOPLE REPEAT THE SAME THING, THERE MIGHT BE A BETTER WAY TO DO IT, UM, IN, IN REGARDS TO TRYING TO SAVE TIME AND OTHER THINGS.
I'VE SUGGESTED THIS BEFORE, BUT, UM, WE'VE HAD SMART METERS NOW FOR MORE
[01:10:01]
THAN A DECADE.AND, UM, IF THERE'S A TRADE OFF BETWEEN, UM, ANY OF THE RETAIL FUNCTIONS THERE, I WOULD QUESTION WHETHER OR NOT WE STILL NEED TO DO ANNUAL VALIDATION.
UM, I UNDERSTAND THAT SOME OF THE RETAILERS LIKE TO HAVE THAT.
UM, BUT IT'S A PROCESS THAT HAS LIMITED VALUE BECAUSE WE NO LONGER USE SMART METERS FOR SETTLEMENT.
UM, AND, UM, SO PERHAPS IT COULD BE FOR A SUBSET OF THE EASY IDS OR, YOU KNOW, UM, SOME OTHER PROCESS THAT LIMITS THE SCOPE OF THAT WORK.
UM, BUT, UM, YEAH, THERE'S MY SUGGESTIONS.
UH, I, I WOULD LIKE TO ADDRESS ERIC'S BEFORE IF WE TAKE ANY OTHER QUESTIONS, IF THERE ARE ANY.
UM, ERIC, UH, THANK YOU FOR YOUR THOUGHTS.
I AM, UH, REGARDING THE TEST FLIGHTS, I'M OUR, FOR ENCORE, I'M OUR BUSINESS TESTING CONTACT.
AND I DON'T LIKE GOING TO TWO IN 2024 BECAUSE I EXPLAINED TO PEOPLE IT, THOSE CRS DON'T GO ANYWHERE.
THEY'RE JUST STILL THERE WAITING.
AND ALL IT DOES IS PUSH THOSE CRS INTO THE FLIGHT BEFORE OR THE LATER FLIGHT, AND IT MAKES IT TOO MASSIVE TO MANAGE.
WE STILL HAVE, IT'S NOT UNCOMMON FOR US TO HAVE 19 OR 20 PARTICIPANTS IN A TEST FLIGHT.
WE WOULD PROBABLY ONLY HAVE MAYBE SIX NEW CRS, BUT YOU'RE GONNA HAVE A LOT OF WORK.
THEY CHANGE BANKS, THEY CHANGE, UH, THEY ADD DUNS NUMBERS, THAT'S VERY POPULAR.
THEY CHANGE SERVICE PROVIDERS.
THERE'S A LOT OF ACTIVITIES THAT GO ON THAT COMPLICATE YOUR TEST FLIGHT.
AND IT'S RESPONSIBLE TO TAKE, TAKE CONSIDERATION OF WHAT CAN BE DONE.
UM, I'M NOT SAYING THAT'S THAT'S GOING TO HAPPEN, BUT THAT IS, UM, THAT HAS BEEN MY VIEW AND I'VE SHARED IT WI WIDELY.
YEAH, IT SEEMS LIKE THERE ARE SOME OF THE PROCESSES THAT COULD BE SIMPLIFIED, AND I KNOW WE DO THINGS OUT IN ABUNDANCE OF CAUTION, UM, TO TEST EVERYTHING EVERY TIME, BASICALLY.
UM, BUT TO THE EXTENT THERE'S A TRADE OFF BETWEEN LIMITING FLIGHTS AND HAVING LESS THOROUGH TESTING, RIGHT? I THINK THAT WOULD BE SOMETHING YOU'D CONSIDER.
ONE THING, UM, I MENTIONED ABOUT THE ROUND ROBIN APPROACH IS THAT WE HAVE CRS THAT WOULD OF COURSE DO CONNECTIVITY TESTING WITH EVERY SINGLE TDS P BUT THEN THEY'RE, AND THEY HAVE TO DO THE PENNY TEST.
WE NEED TO MAKE SURE WE CAN EXCHANGE MONEY.
THE OTHER THING WE DO IS WE, UM, WITH ROUND ROBIN, WE WOULD PUT MAYBE THREE CRS THAT HAVE SIGNED UP TO PARTICIPATE, LIKE IN ENCORE TERRITORY WITH ENCORE AND ANOTHER THREE THAT WOULD STILL PARTICIPATE IN ENCORE TERRITORY, BUT ALSO CENTER POINT WE WOULD PUT THEM WITH CENTER POINT.
WE THINK IT'S FAIR, WE THINK IT'S REASONABLE.
THEY'RE, IF THEY EITHER DO IT IN-HOUSE OR WITH A QUALIFIED SERVICE PROVIDER AND THE EDI PROVIDER, UM, THAT HAS BEEN, THAT HAS WORKED VERY SUCCESSFULLY AND IT DOESN'T MAKE IT, UH, SO BURDENSOME THAT YOU CAN'T PAY ATTENTION RIGHT.
TO THE ERRORS IN THE WORK DOES.
WELL, THE OTHER THING I WAS GONNA MENTION IS THAT IT IS POSSIBLE THAT RMS WOULD MAKE A RECOMMENDATION BASED ON WHAT HAPPENS AT PWG TO DELAY ANNUAL VALIDATION, UM, A YEAR.
AND WE WOULD JUST WAIVE IT FOR THAT, WAIVE IT FOR THAT YEAR.
AND KIND OF ONE QUESTION I HAD WAS AROUND TEXAS 5.0.
IS THERE ANY KIND OF REQUIREMENT IT HAS TO BE DONE BY A CERTAIN DATE, OR ARE WE OKAY TO MOVE IT BACK? WE'RE OKAY TO MOVE IT BACK.
WE DEFINITELY DON'T WANNA LOSE OUR PLACE OR FUNDING SINCE IT HAS ALREADY BEEN APPROVED FOR FUNDING AS A PROJECT.
UM, BUT DEFINITELY WE'RE OKAY TO MOVE IT BACK.
OTHER, NO OTHER QUESTIONS, DEBBIE? SO YOU CAN KEEP ROLLING.
SO THESE ARE THE ITEMS THAT WE APPROVED AT OUR LAST RMS MEETING.
UM, THE RETAIL MARKET LISTSERV AND, UH, SYSTEMS SERVICE LEVEL AGREEMENT, THE MARKET DATA TRANSPARENCY, SERVICE LEVEL AGREEMENT.
UM, BOTH OF THOSE WERE MODIFIED A LITTLE BIT.
WE DID HAVE A TYPO IN EACH OF THOSE, UM, WHICH WAS REALLY IMPORTANT TO GO AHEAD AND MAKE THAT, THAT CORRECTION BECAUSE IT, OTHERWISE IT LOOKED LIKE ERCOT WAS GONNA HAVE LIKE A OUTAGE FOR A WEEK.
SO WE WENT, WANTED TO GO AHEAD AND, AND GET THAT DONE.
UM, THE RM G R R 1 71 AND NPR R 1159 AS, UH, DISCUSSED AT PRS.
[01:15:01]
RELATED TO THE, UM, TO ALLOWING THE LUBBOCK POWER AND LIGHT.THAT'S WHERE WE'RE WORKING ON THE, THE ACTIVITIES FOR THESE TO BE ABLE TO HAVE THE OPTION OF COMPLETING PROCESSES AND OPERATING AS THE IUS DO CURRENTLY IN THE MARKET.
AND SO THEY, THE CHA THESE CHANGES ALLOW THEM TO OPERATE ACCORDING TO CHAPTER SEVEN OF THE RETAIL MARKET GUIDE.
SO THEY ARE NOT, UH, I GUESS PUT IN THE MIDDLE BETWEEN HAVING TO MANAGE PROCESSES ACCORDING TO CHAPTER EIGHT.
AND THE REASON THAT'S IMPORTANT IS BECAUSE OF SOME OF THE REQUIREMENTS THAT ARE CURRENTLY IN CHAPTER EIGHT ARE NOT, UH, PROCESSES THAT ARE EASY TO MANAGE.
UM, AND THE IMPACT IS MOSTLY TO THE COMPETITIVE RETAILER THAT WOULD BE OPERATING IN THAT TERRITORY.
SO WE THINK THAT, UH, WORKING THESE OUT THE WAY THAT LUBBOCK POWER AND LIGHT HAS REQUESTED IS REALLY GONNA BE A LITTLE BIT BETTER AND ENABLE COMPETITION IN THAT TERRITORY, BECAUSE OTHERWISE, UM, THERE WILL BE PROCESSES THAT THE COMPETITIVE RETAILERS WOULD HAVE TO SUPPORT, SO THEY'D HAVE TO SUPPORT TOO.
AND, UM, SO WE'RE WORKING HARD TO MAKE SURE THAT WE CAN DO EVERYTHING TO KEEP, KEEP IT REASONABLE AND SIMPLE AND NOT COMPLICATED OR BURDENSOME TO ANYONE.
THESE ARE THE, UH, TN MP'S 3G REMEDIATION, UM, COUNTS FROM THE UPDATE THAT WAS PROVIDED THIS PAST FRIDAY.
THE, UM, DATA PROVIDED INCLUDES THE DEPLOYMENT AND WHAT IS REMAINING.
THEY HAVE, UH, DEPLOYED 184,289 NEXT GEN METERS.
THE SINGLE PHASE ARE STILL HAVING, THEY'RE, THEY'RE STILL WORKING THROUGH SOME REAL COMPLICATIONS, MOSTLY RELATED TO DENIAL OF ACCESS.
DURING THE LAST RMS MEETING, THERE WERE TWO PRIMARY TOPICS.
ONE WAS THE ADDITIONAL METERS.
UM, WELL, THOSE THAT REMAIN ON THE LIST AND THEY ARE DUE TO DENIAL OF ACCESS OR ACCESS ISN'T PROVIDED.
AND TN MP HAS USED EVERY AVENUE POSSIBLE TO CONTACT THE CUSTOMERS AND THEY HAVE BEEN OUT TO THE PREMISE.
THEY ARE WORKING WITH THE RETAIL ELECTRIC PROVIDERS OVER THOSE EASY IDS TO TRY AND GET SOME ASSISTANCE OR SOME CONTACT INFORMATION.
UM, THEY HAVE BEEN TO HANG THE DOOR DOOR HANGERS MULTIPLE TIMES.
UM, ANDREA COUCH WAS THE ONE THAT PROVIDED THE UPDATED R M S, AND SHE DID A REALLY GOOD JOB OF EXPLAINING, UH, THE WHAT'S GOING ON WITH THAT.
THEY HAVE, UM, BEGUN CONSIDERING AND POSSIBLY MEETING WITH THE AUTHORITIES FOR THOSE WHERE THEY CAN'T GET ACCESS.
AND THERE ARE SOME CUSTOMERS THAT HAVE STARTED WORKING WITH THEM, EVEN THOUGH IT'S BEEN MONTHS AND MONTHS.
UM, AND THEY ARE NOT TN P IS NOT CONSIDERING CALLING THE AUTHORITIES FOR THOSE IND THOSE INDIVIDUALS OR COMPANIES AT THOSE PREMISES.
THE OTHER TOPIC THAT WAS BROUGHT UP ARE THE MARKET TRACK ISSUES.
UM, SOME OF THE MARKET TRACK ISSUES ARE REALLY MONTHS AND MONTHS OLD.
UM, TMP HAS ASKED THAT THE RETAIL ELECTRIC PROVIDERS WORK WITH THEM TO POSSIBLY CLOSE THOSE ISSUES.
THERE ARE VERY FEW THAT ARE STILL IN PROGRESS.
AND, UM, THOSE ARE, THOSE ARE BEING PULLED OUTSIDE OF THESE ISSUES THAT NEED TO BE CLOSED.
I BELIEVE AT THE RMS MEETING, UM, ANDREA GAVE THE ACCOUNT OF OVER 7,000 MARKET TRACK ISSUES THAT WERE OPEN.
SO IT BOGS DOWN EVERYBODY'S PROCESSES.
ALL RIGHT, THIS IS WHAT WE'VE BEEN WORKING ON, UH, TEXAS SET WORKING GROUP.
THEY HAVE BEEN WORKING ON FINISHING THE FINAL SCRIPT CHANGES, UM, FOR BANKING.
THEY HAVE FINISHED THE CHANGE CONTROL PROCESS FOR SOME OF THE CLEANUP ON TEXAS AT 5.0 THAT WILL NOT AFFECT FUNDING.
THOSE ARE JUST ADDING CLARIFICATION ON HOW SOME OF THE CODES WILL BE USED.
UH, THEY ARE WORKING WITH THE PROCESSES FOR THE LUBBOCK TEST THAT WILL COME UP IN MARCH AND WHAT IS GOING TO BE ENCOMPASSED IN THAT AND HOW TO MANAGE THAT.
AS PREVIOUSLY NOTED AND COMMUNICATED, THE LUBBOCK TEST FLIGHT WILL ONLY INCLUDE LUBBOCK AND A LIMITED NUMBER OF CERTIFIED CRS.
THE PRIMARY PURPOSE OF THAT FLIGHT IS TO TEST THE PROCESSES AND TRANSACTIONS
[01:20:01]
FOR LUBBOCK FOLLOWING THAT CRS THAT INTENDING TO PARTICIPATE IN THE LUBBOCK FLIGHT IN THE TERRITORY.UM, ANY NEW CRS ARE GONNA HAVE TO WAIT, BUT THOSE EXISTING CRS WILL HAVE TO TEST PENNY AND CONNECTIVITY.
SO, UM, IF YOU LOOKED AT ONE OF THE REPORTS, I THINK THERE'S 96, UH, ENTITIES, PARTNERSHIPS THAT COULD BE INCLUDED, WHICH IS SIGNIFICANT.
ALL RIGHT, TEXAS DATA TRANSPORT, MARKET TRACK SYSTEMS WORKING GROUP.
THIS GROUP LOOKS AT THE INADVERTENT GAINS AND THEY'VE DONE A DEEP DIVE INTO THOSE.
AND THE, SOME OF THE NUMBERS ARE HIGH FOR SOME OF THE COMPETITIVE RETAILERS.
THE NUMBERS ARE PROVIDED ANONYMOUSLY.
AND THIS GROUP IS IN DISCUSSIONS OF TALKING ABOUT WORKING WITH ERCOT CLIENT SERVICES.
MAYBE ERCOT CLIENT SERVICES CAN REACH OUT TO THE COMPETITIVE RETAILER AND SEE WHAT CAN BE DONE TO HELP THEM UNDERSTAND THEIR INADVERTENT GAINS.
CUZ SOME HAVE A HIGH PERCENTAGE, UH, THEY ARE ALSO GETTING READY FOR THE S SCR, THE MARKET TRACK S SCR, THAT'S GONNA ACCOMPANY TEXAS 5.0.
SO IF TEXAS 5.0 IS DELAYED, PUSHED BACK JUST A LIT JUST A BIT, THEN THAT MARKET TRACK S SCR IS GONNA BE PUSHED BACK A LITTLE BIT TOO.
INCLUDED IN TEXAS AT 5.0 AND THE MARKET TRACK, S C R IS A AUTOMATION OF PROCESSES FOR IN INADVERTENT GAINS.
SO THAT IS THE BIG BENEFIT FROM MY OPINION, OF WHAT'S GONNA HAPPEN WITH TEXAS AT 5.0.
BUT IT IS, THERE ARE MANY GOOD BENEFITS FOR CUSTOMER TDSP, COMPETITIVE RETAILERS, AND ERCOT INCLUDED IN TEXAS AT 5.0.
ONCE AGAIN, BACK TO THE LUBBOCK RETAIL IMPLEMENT IMPLEMENTATION INTEGRATION TASK FORCE.
SOMEONE ASKED ME, UM, WHAT DID, WHAT DOES THIS GROUP DO? AND SO I'VE KIND OF LIKE PULLED TOGETHER SOME OF THE THINGS THAT THEY ARE REALLY WORKING HARD WITH.
UM, I TOLD SOMEONE I'M GOING TO RENAME THIS GROUP THE, UH, LOTS OF WORK TASK FORCE, SO IT WOULD BE LOW.
BUT IN ANY EVENT, UH, THEY'RE WORKING REALLY HARD.
THEY, THEY HAVE CREATED A LIST OF ACTIVITIES THAT NEED TO BE DONE PRIOR TO, UH, ENTERING RETAIL COMPETITION.
SOME OF 'EM HAVE TO WAIT UNTIL THERE'S LIKE A DIRECTION FROM A GOVERNING BODY OR A DECISION FROM A GOVERNING BODY.
SO THOSE ARE KIND OF ON HOLD AND ANYTHING THAT WOULD FOLLOW THAT IS ALSO ON HOLD.
WE KEEP UP WITH IT AND WE MAKE ADJUSTMENTS TO THE TIMELINE AND THE ACTIVITIES LIST AS NEEDED.
ARE THERE ANY QUESTIONS ON THAT? NO.
ANYTHING I CAN HELP WITH? ALL RIGHT.
ANY QUESTIONS FOR DEBBIE? ALL RIGHT, SEEING YOU, NONE.
THAT CONCLUDES AGENDA ITEM NUMBER SEVEN.
MOVING ON TO AGENDA ITEM NUMBER EIGHT, THE, I'M SORRY, AGENDA ITEM NUMBER 12 IS THE R OS
[12. ROS Report (Vote)]
REPORT.UH, SO, UH, CHASE YOUR NEXT UP.
UH, WE DO HAVE ONE VOTING ITEM IN THIS PARTICULAR REPORT.
CLIFF, CAN YOU CONFIRM? YOU CAN HEAR ME? YES, SIR.
THIS IS CHASE SMITH, UM, WITH SOUTHERN POWER COMPANY AND RO OS CHAIR.
UM, I HAVE A BRIEF R O S UPDATE, UH, FOR TAC TODAY.
UH, FIRST UP THE, THERE'S ONE VOTING ITEM, UM, THAT I'M BRINGING TODAY, AND THAT IS PIER 1 0 2, DYNAMIC OPERATION MODEL IMPROVEMENT.
THIS PIER WAS SPONSORED BY ERCOT AND ADDS A REQUIREMENT FOR RESOURCE ENTITIES AND INTERCONNECTION ENTITIES TO PROVIDE OPERATIONS DYNAMIC MODEL QUALITY TEST RESULTS THAT DEMONSTRATE APPROPRIATE PERFORMANCE FOR SUBMITTED OPERATIONS DYNAMIC MODELS.
AND IT ALSO MAKES A FEW NON-SUBSTANTIVE CLARIFYING CHANGES.
UM, ROS VOTED UNANIMOUSLY TO RECOMMEND APPROVAL OF PICKER 1 0 2, AND THERE IS NO COST OR PROJECT REQUIRED, AND THE PICKER CAN TAKE EFFECT FOLLOWING P C T APPROVAL.
UH, LAST MONTH RSS, UH, TOOK A VOTE AND APPROVED THE 2023 ROS LEADERSHIP, AND I WILL CONTINUE AS RO OS CHAIR THIS YEAR.
AND KATIE RICH WITH GOLDEN SPREAD WILL CONTINUE AS VICE CHAIR IN INTACT, UH, CONSIDER THAT AND APPROVED EARLIER THIS MEETING.
UH, HERE'S THE LIST OF THE REVISION REQUEST UNDER RO OS REVIEW.
UM, I DON'T PLAN TO GO THROUGH ALL OF THESE RIGHT NOW, BUT I WILL POINT OUT A NEW PIGR 1 0 3, UM, WHICH WAS FILED RECENTLY BY ERCOT, AND IT PROPOSES,
[01:25:01]
UH, TO ESTABLISH A TIME LIMIT FOR GENERATOR COMMISSIONING, UH, FOLLOWING APPROVAL OF SYNCHRONIZATION TO THE ERCO GRID.UH, AND THERE ARE SOME BACKGROUND HERE.
THERE ARE CURRENTLY A SIGNIFICANT AMOUNT OF MEGAWATTS THAT HAVE RECEIVED APPROVAL TO SYNCHRONIZE, BUT HAVE NOT COMPLETED ALL OF THE COMMISSIONING CHECKLIST PART THREE REQUIREMENTS.
AND ROS REVIEWED THIS FOR THE FIRST TIME AND DISCUSSED AT OUR JANUARY MEETING EARLIER THIS MONTH, AND TABLE FOR FURTHER REVIEW.
SO THERE'LL BE MORE TO COME ON THIS PICKER, BUT WANTED TO JUST POINT THAT OUT TO TACK, UM, JUST FOR AWARENESS AND FOR FUTURE CONVERSATIONS ON THAT, ON THAT PROPOSAL.
AND HERE ARE A FEW DISCUSSION ITEMS THAT OS UM, HAD AT OUR JANUARY MEETING.
UH, WE HAVE PREVIOUSLY ASKED ERCOT TO PRESENT AN UPDATE ON IMPLEMENTATION DETAILS EXPECTED WITH, UM, THE PUCS RECENT, UM, RULE UPDATING TRANSMISSION PLAN CRITERIA, UM, AS DIRECTED BY SENATE BILL 1281.
UM, ERCOT GAVE A GOOD PRESENTATION AND, UH, THAT THOSE SUMMARY SLIDES ARE ON THE JANUARY RO OS MEETING PAGE, IF ANYONE'S INTERESTED TO, TO GO AND LOOK AT THOSE IN FURTHER DETAIL.
UH, ERCOT ALSO PRESENT, GAVE A SUMMARY PRESENTATION OF SOME COMMON OPERATIONAL PERFORMANCE ISSUES WITH ENERGY STORAGE RESOURCES.
AND AT THE END OF DECEMBER, 2022, ERCOT UPDATED, UH, THE RELEVANT BUSINESS PRACTICE, UM, WITH SOME LESSONS LEARNED FROM SOME OF THESE COMMON OPERATIONAL PERFORMANCE ISSUES.
AND ERCOT ALSO MENTIONED THAT THEY ARE PLANNING TO SCHEDULE AN ESR WORKSHOP SOMETIME IN THE COMING MONTHS.
UH, SO THAT THAT WILL BE SOMETHING FOR THOSE INTERESTED IN, UM, IN, IN STORAGE RESOURCES IN ERCOT.
UH, THERE, THERE'LL BE A WORKSHOP IN THE FUTURE ON THAT TOPIC.
UM, I'LL ALSO ADD THAT ROS HAS CREATED THE NEW ACTION ITEM AS DIRECTED BY T TO EVALUATE, UM, REALTIME LOAD SHED OBLIGATIONS.
AND, AND THIS IS, UH, JUST TO TO FURTHER FURTHER REVIEW AND EVALUATE IF THERE IS, UM, A POTENTIALLY ADDITIONAL, UH, THE VI THE VIABILITY OF MOVING TO REALTIME LOAD.
SHE, UM, AS AST IS AWARE, UM, YOU KNOW, RE RECENTLY THERE WAS A REVISION REQUEST THAT WAS APPROVED TO IMPLEMENT SEASONAL LOAD SHED.
SO I KNOW THERE WERE SOME COMMENTS LAST MONTH AT TACT TALKING ABOUT POTENTIALLY EVALUATING IF REAL-TIME LOAD SHED IS, UH, IS A VIABLE OPTION.
SO OS IS GOING TO, UH, HAS CREATED A NEW ACTION ITEM TO FURTHER DISCUSS AND DEBATE THAT, THAT CONCEPT.
AND THEN THE FINAL ITEM IS, UM, ROS AND WMS WILL BE HOSTING A JOINT, UM, WORKSHOP TO TALK ABOUT THE EPAS PROPOSED CASPER RULE.
AND THAT HAS BEEN SCHEDULED FOR THE AFTERNOON OF FEBRUARY 1ST FOLLOWING WMS. UM, SO FOR THOSE INTERESTED IN THAT TOPIC, UM, I WOULD, UH, PLEASE SIGN UP FOR THAT WORKSHOP.
AND IT WILL BE, UM, TRYING TO JUST DISCUSS BIG PICTURE WHAT CASPER IS, THE FACT THAT IT'S A PROPOSED RULE, NOT FINALIZED, BUT, UM, JUST TRYING TO IDENTIFY POTENTIAL ISSUES FOR THE MARKET AND ERCOT TO BE AWARE WITH THAT PROPOSED RULE POTENTIALLY BEING IMPLEMENTED, UH, LATER THIS YEAR.
AND CLIFF, THAT COVERS COVERS THE WEST UPDATE.
I'M HAPPY TO, UM, RESPOND TO ANY COMMENTS OR QUESTIONS.
UH, SEE NO COMMENTS OR QUESTIONS IN THE QUEUE? NO CARDS UP IN HERE.
UH, SO APPRECIATE THE UPDATE, CHASE, AND LOOK FORWARD TO NEXT MONTH'S UPDATE.
[13. WMS Report]
GOT THE WMS REPORT, ERIC BLAKEY,JUST MAKE SURE YOURS OVER THERE.
OTHERWISE, I DON'T THINK YOU'RE TRYING TO DO, MAKE SURE MY PURSE IS OVER THERE.
ERIC BLAKEY WITH PERTON ELECTRIC CO-OP.
IT'S GOOD TO BE BEFORE YOU AGAIN.
IT'S GOOD TO SEE EVERYONE'S FACES AGAIN.
AND, UH, LOOKING FORWARD TO A GOOD YEAR.
I WILL BE GOING THROUGH THE WMS UPDATE.
THEY ELECTED, UH, ME AS CHAIR JIM LEE AS VICE-CHAIR.
UH, WE ARE, WE ARE VETERANS WORKING TOGETHER AT RMS A FEW YEARS AGO, SO I'M VERY EXCITED ABOUT WORKING WITH JIM.
WANNA SAY THANK YOU PUBLICLY TO RES FOR A GREAT COUPLE OF YEARS LEADING WMS AND, AND APPRECIATE ALL YOUR WORK.
SO, UH, WE HAVE NO VOTING ITEMS FOR TACT TODAY.
UH, WE HAVE SOME REVISION REQUESTS THAT WE WILL RUN THROUGH AND, UH, SOME DISCUSSIONS IN THE, IN THE WORKSHOP THAT WAS MENTIONED BY CHASE.
[01:30:03]
SO, UH, THESE ARE THE REVISION REQUESTS THAT WE HAVE, UH, THAT WE, THAT WE REVIEWED.AND SINCE IT WAS OUR FIRST MEETING, WE DID GET INTO A LITTLE BIT OF DISCUSSION ABOUT, ABOUT THE ITEMS. UM, ONE IN PARTICULAR WAS NPR 1143, WHICH IS PROVIDER ERCOT FLEXIBILITY TO DETERMINE WHEN ESRS MAY CHARGE DURING AN EEA LEVEL THREE.
UH, WE HAD SOME GOOD DISCUSSION, IT KIND OF BROKE OUT INTO A WORKING GROUP, UH, SORT OF FIELD, BUT IT, IT IS SOMETHING THAT, UH, I DO THINK, UH, AS A MARKET AND AS ERCOT, WE NEED TO BE THINKING ABOUT OUR POLICY ON THIS SO THAT, SO THAT THERE ARE CLEAR EXPECTATIONS.
UM, AND THEN THERE'S, JUST WANNA HIGHLIGHT, GIVEN YOUR DISCUSSION EARLIER ON MARKET CREDIT WORKING GROUP, YOU'LL NOTICE WE DO HAVE TWO ITEMS. UH, NPR 10 67 AND 1146 THAT WE HAD IDENTIFIED AS BEING ASSIGNED TO MARKET CREDIT WORKING GROUP.
WE HAD HAD DISCUSSIONS ABOUT POSSIBLY DISBANDING THIS GROUP NEXT WEEK.
GIVEN YOUR DISCUSSION, IT SOUNDS LIKE WE NEED TO MAINTAIN THAT GROUP, AT LEAST UNTIL WE GET THROUGH THIS TRANSITION.
UH, BUT WE WILL HAVE THAT DISCUSSION SINCE IT IS PART OF WMS AND ANY DIRECTION Y'ALL WANT TO GIVE US ABOUT HOW WE SHOULD, HOW WE SHOULD WORK WITH MARKET CREDIT WORKING GROUP.
YOU KNOW, PLEASE TALK TO ME OR JIM, UH, AND LET US KNOW HOW YOU WANT TO PROCEED.
AS FAR AS OUR DISCUSSION ITEMS, UH, IT'S BEEN MENTIONED BY CHASE.
WE'RE HAVE A, UH, OS WMS SPONSORED WORKSHOP ON CASPER, UH, AND THE, UH, POTENTIAL RULE MAKING THAT MAY BE FINALIZED HERE SHORTLY.
AND POTENTIAL IMPACTS THAT WILL BE AFTER WMS ON FEBRUARY 1ST AT ONE O'CLOCK.
YOU SHOULD HAVE SEEN A MARKET NOTICE ON THAT.
TODAY WE DID TALK ABOUT WINTER STORM ELLIOT, AND I BELIEVE THAT'S GONNA BE A DISCUSSION ITEM HERE AT TACT.
UM, AND SO WE LOOK FORWARD TO THAT.
THERE WAS QUESTIONS ABOUT THE 30 LOWEST RESERVE HOUR, 30 HIGHEST NET PEAK HOUR REPORT.
AND, UH, WE WILL HAVE A FURTHER DISCUSSION ON THAT AT OUR NEXT WMS. AND THE ISSUE OF SMALLER LOAD ZONES.
WE DID HEAR FROM THE IMM OF STRONG INTEREST AND SUPPORT AND EVEN, UH, UH, COMMITTED HOURS TO, TO HELP IN THAT, IN THAT REVIEW.
AND SO THAT'S, UH, THAT'S ANOTHER ISSUE THAT WE ARE, WE ARE LOOKING INTO, UH, ALSO INTEREST TO CONSIDER THE AGGREGATION OF ZONES FOR DISTRIBUTED RESOURCES, WHICH WILL LIKELY BE TAKEN UP AS PART OF THE ADR PILOT.
OUR NEXT MEETING IS FEBRUARY THE FIRST.
UH, WE INVITE ALL OF YOU TO ATTEND, AND I'LL BE HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.
ALL RIGHT, ERIC, WE GOT A QUESTION FROM BRIAN SAMS, UH, WELL, FIRST I JUST WANNA SAY THANKS FOR RAISING YOUR HAND TO, TO LEAD THIS, THIS GROUP THIS YEAR, AND SO APPRECIATED.
UM, THE SECOND POINT I WANTED TO MAKE WAS JUST A, A SHAMELESS PLUG FOR, UH, MY WHOLESALE MARKET WORKING GROUP.
THIS NEXT MONDAY, WE'RE GONNA BE TAKING UP THAT, UH, ENERGY STORAGE RESOURCE CHARGING DURING EEA THREE ISSUE.
YOU HIGHLIGHTED, UM, DISCUSSION THERE WAS KIND OF AROUND, UM, EXTERNAL COMMUNICATIONS, UH, AND GETTING SOME CLARITY ON WHAT THAT MIGHT LOOK LIKE.
UM, I, I'VE HEARD SOME FOLKS SAY THAT THEY MIGHT BE COMFORTABLE WITH THAT MOVING FORWARD.
UM, SO I WANNA HIGHLIGHT THAT ISSUE, UH, AND, AND ASK FOLKS TO BRING IDEAS, UH, SO THAT WE CAN INCORPORATE THAT INTO ANY, ANY, UH, PROTOCOL REVISION THAT MOVES FORWARD.
ERIC, BRIAN, THANKS FOR RAISING THAT ISSUE.
UM, I THINK I SAID AT PRS THAT, UM, WE WEREN'T COMFORTABLE VOTING FOR IT UNTIL ERCOT HAS A CLEAR COMMUNICATIONS PLAN AROUND CHARGING THOSE BATTERIES DURING EEA A AND REQUESTED THAT, UM, ERCOT INVOLVE THEIR COMMUNICATIONS STAFF IN THE CONVERSATION OF THAT, UM, NPR R.
SO I HOPE YOU GET ATTENDANCE FROM THE COMMUNICATION STAFF AND RAISING AN ATTACK IS, I THINK HOPEFULLY A GOOD WAY TO DO THAT.
UH, MR. BLAKEY, I SEE NO ONE ELSE IN THE QUEUE.
OKAY, NEXT ON THE AGENDA, WE'VE
[14. ERCOT Reports]
GOT, UH, ERCOT REPORTS.SO WE'LL START WITH THE DECEMBER, 2022 WINTER STORM RECAP.
DAN'S HIDING IN THE BACK, MAKING HIS WAY TO THE FRONT, NOT HIDING, JUST ALL THE CHAIRS
[01:35:01]
ARE FULL UP FRONTSO, UM, WE'VE PUT TOGETHER KIND OF A FEW SLIDES THAT GIVE YOU A LITTLE MORE DETAIL THAN WHAT I HAD AVAILABLE AT THE OPEN MEETING, UH, LAST WEEK.
UM, IT'S STILL NOT, IT'S STILL PRELIMINARY.
UH, AND WE'LL BE DOING A MORE COMPREHENSIVE REPORT AS, AS, UH, WE GET MORE DATA IN, UH, BUT WANTED TO SHARE AT LEAST SOME OF THIS WITH YOU SO THAT YOU COULD START DISCUSSING WHATEVER YOU'D LIKE TO DISCUSS ABOUT IT.
UM, SO WE ISSUED DOS IN ABOUT A WEEK AHEAD OF TIME AND THEN DID OTHER NOTIFICATIONS AS THE WEEK WENT ON, AND THEN FINALLY GOT BACK OUT OF IT ON CHRISTMAS DAY.
UM, AND SO IT WAS, YOU KNOW, UH, THE WRONG TIME OF YEAR TO HAVE TO BE SPENDING, UH, TIME ON YOUR COTTON IN YOUR OFFICE, AS I'M SURE SOME OF THE REST OF YOU DID, BUT AS WELL AS ME.
BUT, UM, THAT'S THE WAY IT GOES.
UM, FROM A WEATHER PERSPECTIVE, I MEAN, THERE'S LOTS OF DIFFERENT WAYS WE CAN LOOK AT THE WEATHER, BUT WE THOUGHT THIS WAS INTERESTING THAT WHEN YOU LOOK AT THE KIND OF THE MINIMUM TEMPERATURES THAT WE GOT DOWN TO ON A LOAD WEIGHTED BASIS ACROSS ERCOT, THIS WAS ACTUALLY ONE OF THE COLDER EVENTS THAT WE'VE HAD IN THE LAST 25 YEARS.
IN FACT, ONLY THE WINTER STORM DURING 2021 WAS, WAS COLDER.
AND THIS WAS ACTUALLY FROM JUST THAT MINIMUM TEMPERATURE PERSPECTIVE WAS COLDER THAN, UH, FEBRUARY OF 2011.
UM, OF COURSE THOSE DON'T TELL THE WHOLE STORY, UM, BUT THAT'S ONE INDICATION THAT WE WOULD SHARE.
DAN, DO YOU WANT TO TAKE QUESTIONS AS YOU WORK YOUR WAY THROUGH IT OR WOULD YOU RATHER WORK WAY THROUGH? I THINK THAT'S FINE.
OKAY, BILL, THANKS DAN AS ALWAYS FOR PUTTING THIS INFORMATION TOGETHER.
YOU AND YOUR TEAM REALLY APPRECIATE THE INFORMATION.
UM, FOR THIS SLIDE ON THE WEATHER, WE SAW SOME PRETTY LOW WIND CHILLS, AND I WAS WONDERING, AND I THINK WE'LL SEE THIS IN THE WEATHER STUDY WHENEVER THAT GETS UPDATED, BUT, UM, FROM WHAT YOU GUYS SEE WITH THE DATA, WERE THE WIND CHILLS ACTUALLY LOWER THAN YURI FOR THIS EVENT? I DON'T KNOW THAT WE'VE LOOKED AT THAT YET, AND I KNOW WE ARE BECAUSE OF SOME OF THE COMPLIANCE TYPE STUFF, BUT WE, UH, WE WILL BE INCLUDING THAT IN MORE OF A FINAL REPORT.
YEAH, WE SAW SOME DATA THAT INDICATED THAT, THAT FROM A WINDCHILL PERSPECTIVE, THIS EVENT WAS COLDER THAN YURI.
BUT, UM, I WOULD LOVE TO SEE, UH, WHAT ERCOT THINKS ABOUT THAT.
YEAH, CER CERTAINLY THE, THE BIGGEST DIFFERENCE BETWEEN URI AND THIS EVENT IS THIS EVENT THAT LASTED THREE DAYS AS OPPOSED TO A WHOLE WEEK, UM, LOAD FORECAST THAT THIS HAS RECEIVED A LOT OF, UH, PRESS.
UM, OUR LOAD FORECASTS WERE, WERE REALLY TOO LOW GOING INTO THE EVENT.
THERE WAS OBVIOUSLY A REALLY, UH, SIGNIFICANT, UH, COLD WEATHER INTRUSION INTO THE CENTRAL AND SOUTHEAST US.
UM, BUT IT WAS REALLY DEEPER AND QUICKER THAN WHAT I THINK THE, THE FORECAST, THE NATIONAL WEATHER FORECAST MODELS LIKE THE GFS AND THE, THE EURO AND THOSE KIND OF THINGS WERE, WERE PROJECTING, UM, BECAUSE WE WERE GOING INTO A HOLIDAY.
OUR, THE LOAD FORECAST MODELS INCLUDE A HOLIDAY EFFECT.
UH, BUT I THINK THAT WAS SIGNIFICANTLY OVERPLAYED FROM WHAT WE'VE SEEN SO FAR.
AND THEN OF COURSE, AS YOU SAW ON THE PREVIOUS SLIDE, WHEN WE GET DOWN TO THESE LOW TEMPERATURES, WE DON'T HAVE THAT MANY, UM, UH, KIND OF TYPICAL, UM, HISTORY THAT TO BASE THAT ON AND ESPECIALLY SEVERAL OF THE TIMES THAT IT'S GOTTEN THAT COLD, WE'VE HAD LOW SHE GOING ON AS WELL.
SO THAT'S, THAT'S CAUSED PROBLEMS FOR THE, THE TEMPERATURES.
AND UH, YOU KNOW, AS I MENTIONED AT THE OPEN MEETING, WE'RE, WE'RE DOING A LOT OF WORK AROUND TRYING TO IMPROVE LOAD FORECASTING, ESPECIALLY IN THESE EXTREME EVENTS.
AND SO, UM, UH, THAT YOU'LL, YOU'LL START SEEING MORE DATA RELATED TO THAT, I'M SURE, ERIC, GO AHEAD.
GIVEN THE, THE FORECAST USES THE NEURAL NETWORK OF, YOU KNOW, HISTORICAL WEATHER, UM, AND THE ISSUES YOU JUST DESCRIBED.
SO CLEARLY, I, I WONDER IF, UM, WE NEED TO TAKE A LOOK AT, YOU KNOW, OR IF THERE ARE OTHER INPUTS TO THE NEURAL NET, UH, FORECAST IN ORDER TO DEAL WITH THESE ISSUES THAT HAVE OCCURRED RECENTLY.
UM, BECAUSE I, I DON'T KNOW THAT THE CURRENT SYSTEM IS SET UP TO RESOLVE THOSE ISSUES.
CALVIN AND HIS GROUP ARE, ARE LOOKING AT THAT, EVEN LOOKING AT, YOU KNOW, DO WE NEED TO HAVE A DIFFERENT FORECAST MODEL JUST FOR EXTREME COLD WEATHER, RIGHT? THAT'S, THAT'S TUNED TO THAT.
ONCE AGAIN, DATA ISSUES, RIGHT? THAT, UH, THAT THAT'S WHAT THEY ARE GOING TO BE LOOKING AT.
UM, I, I KNOW IN THE PAST WHEN WE'VE TALKED ABOUT, YOU KNOW, FORECAST CHANGES, WE'VE DISCUSSED THOSE IN WORKING GROUPS AND I'M SURE THAT, YOU KNOW, OUR S AND WS WOULD BE HAPPY TO DISCUSS IDEAS ABOUT THAT BECAUSE I THINK EVERYBODY ELSE HAS TO DEAL WITH THE SAME ISSUE AND THEIR OWN SHOPS.
AND SO IT MIGHT BE WORTH THE REFERRAL IF YOU'RE
[01:40:01]
WILLING TO WORK WITH ONE OF THOSE GROUPS ON, ON WAYS TO IMPROVE THAT COLD WEATHER FORECASTING.YEAH, I, I DON'T KNOW WHICH IS THE RIGHT GROUP TO DO THAT O WG MAYBE.
GOT A FEW QUESTIONS LINING UP FOR YOU.
SO WE GOT BILL BARNES, KEVIN HANSEN, AND THE DAVID KEY.
SO BILL, YEAH, THIS WAS THE ONE WE WERE MOST INTERESTED IN SEEING AND WE, OUR GUESS, UH, WAS THE HOLIDAY IMPACT, BUT THE LOAD SHED ONE WAS ONE THAT WAS, THAT THAT'S A GOOD DATA POINT THERE THAT WE DIDN'T CONSIDER.
SO, UM, I'M WONDERING HOW WE ADJUST FOR THAT IN THE FUTURE.
MAYBE ADDING LOAD SHED BACK INTO, UH, THE, THE DATA THAT SHE USED IN THE FORECAST MODELS, LIKE FROM URI AND WHATNOT.
BUT, UM, THAT WAS A GOOD OBSERVATION.
UM, AND THEN ON THE THIRD BULLET, WE JUST WANTED TO PROVIDE OUR PERSPECTIVE ON, YOU SAY NO IMPACT ON RELIABILITY.
I THINK WE WOULD TAKE SOME EXCEPTION TO THAT BECAUSE THERE, YOU'RE ALWAYS GONNA GET SOME TYPE OF MARKET RESPONSE BASED ON ERCOT FORECAST, RIGHT? WE LOOK AT THAT, THAT'S A REALLY BIG INPUT INTO OUR DECISION MAKING FOR WHAT'S GONNA HAPPEN THE NEXT DAY OR THAT EVENING.
UM, AND WHEN THERE'S AN UNDER FORECAST THAT WILL PROBABLY RESULT IN, UH, A LOWER OFFER INTO THE DAY AHEAD, WHICH IS LESS ECONOMIC COMMITMENT, WHICH WOULD MEAN YOU WOULD HAVE TO TAKE OTHER ADDITIONAL ACTIONS, RUCK OR WHATNOT.
BUT I, I WOULDN'T SAY NO IMPACT THERE IS AN IMPACT.
UH, IT'S HARD TO QUANTIFY, UH, BUT THE RESPONSE THAT YOU GET FROM THE MARKET, A LOT OF THAT COMES FROM WHAT WE WANNA KNOW WHAT YOU GUYS THINK, RIGHT? AND SO WE'RE GONNA USE OUR OWN MODELS, WE'RE GONNA USE OUR OWN FORECAST, BUT WE'RE ALSO GONNA COMPARE IT.
UH, AND IF WE'RE WAY OFF, THEN WE'RE GONNA START TO WONDER WHAT WE'RE MISSING AND, AND PROBABLY TAKE SOME ACTION.
UH, SO I JUST WANNA MAKE THAT COMMENT.
KEVIN HANSEN? YEAH, DAN, I WAS ARE ARE YOU GONNA BE LOOKING AT WHAT IF WE HAD URI TYPE OF WEATHER ON DECEMBER 23RD, LIKE THE 16TH FOR INSTANCE, YOU KNOW, WHAT IF WE HAD THOSE TEMPERATURE TYPE OF TEMPERATURES ON THE 16TH OR ON THE, ON THE DECEMBER 23RD, WHAT TYPE OF LOAD WE COULD POTENTIALLY HAVE SAW? WELL, I MEAN OBVIOUSLY WHEN THEY'RE GOING BACK AND TRYING TO TUNE THESE MODELS, AND WE WILL LOOK AT ALL AVAILABLE DATA, WHICH WOULD INCLUDE WHAT WENT ON DURING URI TO TRY TO LOOK AT LOAD VERSUS TEMPERATURE AND ALL THOSE OTHER FACTORS THAT GO INTO THE MODELS.
BECAUSE I'M JUST WONDERING CUZ IT LOOKS LIKE I, I'M JUST, YOU KNOW, LOOKING AT SOME OF THE FAR WEST LOADS, LOOKS LIKE THE FART LOADS WERE A LOT HIGHER AT THIS TIME VERSUS DURING URI.
SO IS OIL AND GAS COMING BACK? IS THERE, YOU KNOW, CRYPTO LOADS OR OTHER LOADS THAT WERE NOT THERE TWO YEARS AGO, WHICH ARE NOW IN THE SYSTEM? AND SO THE WHAT IF, YOU KNOW, WHAT IF WE'RE AT 84, 85 GIGAWATTS OF LOAD, POTENTIALLY IF WE HAD A URI WEATHER, AGAIN, THERE IS THE OTHER FACTOR, WHICH IS DURING URI THERE WAS A LOT OF LOAD OUT BECAUSE OF DISTRIBUTION ICE RELATED OUTAGES.
AND SO THAT'S ANOTHER FACTOR THAT HAS TO BE TAKEN INTO ACCOUNT.
AND, AND, AND HONESTLY, YOU KNOW, THERE, THERE'S A LOT OF THINGS WE WILL BE ABLE TO DO HERE.
WE'RE WE'VE UH, THE OTHER ISOS AND KIND OF THE CENTRAL AND, AND OTHER OPERATING ENTITIES IN THE CENTRAL AND SOUTHEAST US, UH, ALSO HAD SIGNIFICANT LOAD FORECAST, UH, SHORTAGES, UM, DURING THE THIS EVENT.
AND SO WE'RE GONNA BE WORKING WITH THE, OUR PEERS TO TRY TO FIGURE OUT, YOU KNOW, ARE THEIR LESSONS LEARNED KIND OF ACROSS THE, THE, UH, THE UTILITY INDUSTRY FOR HOW WE CAN IMPROVE THOSE FORECASTS DURING THESE EXTREME WINTER CONDITIONS.
SO GOT DAVID KEY, COLIN MARTIN AND KAAN, UH, KAAN DID YOU NEED IN EARLIER OR? OKAY, GO AHEAD DAVID.
UM, I GUESS MY COMMENTS ARE MORE ALONG THE LINE OF WHERE BILL IS HEADED IS THAT, UM, YOU KNOW, LOADED FORECASTING ISN'T EASY.
ERCOT UH, INFORMATION IS DEFINITELY ONE THAT WE USE IN OUR SHOP.
AND, UM, I GUESS ASKING FOR INCREASED COMMUNICATIONS IF, IF, YOU KNOW, THERE, THERE IS A PROBLEM WHERE WE THINK THERE'S A PROBLEM, JUST GONNA HELP US UNDERSTAND, YOU KNOW, WHAT YOU THINK IS GOING ON.
UM, NOT SURE HOW MUCH COMMUNICATION WAS DONE BETWEEN, UH, GIVEN TO THE MARKET AS FAR AS, YOU KNOW, OUR LOAD FORECAST SEEMS A LITTLE BIT LOW.
UM, WE'RE EXPECTING, UH, NO ISSUES BECAUSE OF, YOU KNOW, ER'S ABILITY TO, YOU KNOW, BE READY FOR SOMETHING THAT'S HIGHER.
BUT, UM, THAT, THAT MAY BE SOMETHING YOU'RE PREPARING FOR IN THE CONTROL ROOM.
I JUST COMMUNICATING THAT OUT TO THE REST OF THE MARKET WOULD BE HELPFUL SO YOU CAN UNDERSTAND WHAT WE'RE LOOKING AT.
WELL IT, IT SEEMED TO US THAT ALL THE MARKET PARTICIPANTS, UM, I I DON'T THINK WE DIDN'T HAVE TO BRING ANY UNITS ONLINE, ANY ADDITIONAL UNITS ONLINE CUZ EVERYBODY BROUGHT UNITS ONLINE THEMSELVES.
AND SO, UH, WHEN I SAY WE'RE PREPARED, THAT WAS WHAT I'M GETTING AT.
COLIN? YEAH, DAN THIS COLIN MARTIN WITH ENCORE.
JUST A SUGGESTION, UH, THAT, OR ONE THING THAT I THINK WE'VE SEEN IS PERHAPS CONTRIBUTING TO THE, THE FORECAST MISS OR THE, THE, THE GROWTH THAT WE SAW IS THE NON-LINEARITY OF AUXILIARY HEATING
[01:45:01]
ASSOCIATED WITH HEAT PUMPS.UM, BUT IF YOU REACH THAT POINT, THE AUXILIARY HEAT ON THE HEAT PUMP KICKS IN AND THAT CAN CAN MAKE THAT LOADING, YOU KNOW, FOUR TO FIVE TIMES OF WHAT IT WAS BEFORE.
JUST, JUST FOR THAT HEATING LOAD AT THAT INDIVIDUAL PREMISE.
SO ALL ELECTRIC COMBS, THINGS LIKE THAT, THAT THAT COULD BE A BIG CONTRIBUTOR TO THIS PHENOMENON.
AND, AND, AND THERE'S DEFINITELY A, UM, WHEN YOU GET INTO THOSE REALLY EXTREME TEMPERATURES WHERE THERE'S NOT A LOT OF DATA, THERE'S A LOT OF DEBATE, I THINK AMONG THE PEOPLE THAT DEBATE THAT KIND OF THING AS TO WHAT DIRECTION DOES THAT GO, WHERE DOES IT CURVE OVER, UM, AND THAT KIND OF THING.
AND I THINK THAT'S BEEN ACTUALLY DISCUSSED IN THE SOG AS WELL.
SO HERE YOU OKAY, KANA? I, I GUESS I, I JUST WANTED TO FOLLOW UP WITH, UH, BILL A LITTLE BIT.
I, I UNDERSTAND THE POINT, UM, THAT YOU'RE MAKING, UH, AROUND, UH, THE FORECAST DRIVING, UH, BOTH MARKET PRICING AND AND COMMITMENT DECISIONS.
WHAT'S THE BEST PLACE TO, TO TALK ABOUT THAT? IS THAT SOMETHING WE SHOULD ASSIGN TO WMS? I MEAN, BECAUSE I WANT TO KIND OF GET TO SOME KNOWLEDGE AROUND IS THAT AT THE MARGINS? I, I, I AGREE WITH DAN WHEN I WAS LOOKING, I DIDN'T SEE LIKE A COMMITMENT ISSUE, UH, FOR ANYBODY.
BUT, UM, I, I DO UNDERSTAND THAT THERE ARE THESE, UH, MARKETS THAT KIND OF, UH, REACT TO THAT AND, AND, UM, UH, SO SOME OF YOUR POINTS I THINK ARE RELATIVE TO THAT.
I'M ALSO STRUGGLING WITH IN AN ORGANIZED WAY, DEVIATING FROM THE LOAD FORECASTING METHODOLOGY THAT, THAT WE'RE USING.
SO IT'S FINE FOR Y'ALL TO TELL US, WELL LET US KNOW IF YOU SEE SOMETHING DIFFERENT, BUT WHEN WE MOVE OFF OF THAT, UM, WE'VE BEEN, THAT, THAT'S BEEN A SOURCE OF IS CONTENTION AS WELL.
SO WE SHOULD TALK ABOUT MAYBE A PROCESS THAT EVERYBODY UNDERSTANDS AROUND THAT.
I, BECAUSE I I GET YOUR ALL THE POINTS THAT YOU'RE MAKING, I'M JUST TRYING TO, TO FINE TUNE HOW WE CAN KINDA, FOR LACK OF A BETTER WAY TO SAY IT, PROCEDURALIZE SOME OF THE, UH, INFORMATION I THINK YOU ARE ULTIMATELY WANTING.
IS THAT A, IS THAT A WMS THING THAT, THAT WE SHOULD ENGAGE ON? YEAH, GO AHEAD BILL.
I, I THINK THAT'S PROBABLY THE RIGHT PLACE TO HAVE THE DISCUSSION.
BUT FIRST OF ALL, I MEAN ON THE LOAD FORECASTING, I MEAN WE ALL GOT IT WRONG TOO.
WE WERE WAY OFF, RIGHT? AND OUR EXPECTATIONS COMING INTO THIS IS GIVING, GIVEN THE, THE BIAS IN THE ERCOT LOAD FORECASTING PROCESS AND HOW THE MO MODELS ARE DEVELOPED AND HOW THEY'RE CHOSEN, I MEAN, WE DIDN'T THINK IT WAS POSSIBLE FOR THERE TO BE AN UNDER FORECAST OF THIS MAGNITUDE BECAUSE OF THAT.
UM, AND SO WHEN IN REAL TIME WHEN WE STARTED TO SEE LOAD DEVIATE OVER THE FORECAST MUCH HIGHER, THEN THAT'S WHEN, YOU KNOW, THERE'S A A BIT OF PANIC THAT PICKS IN THAT KICKS IN CUZ IT'S LIKE, WHAT ARE WE MISSING? LIKE WHAT'S HAPPENING THAT WE'RE NOT UNDERSTANDING GOING ON RIGHT NOW? AND WE GUESS THE HOLIDAY, THE LOAD SHED WAS ANOTHER.
THAT'S AGAIN, THAT'S A GOOD ONE.
UM, BUT I MEAN THERE, THERE WILL BE, WE WILL THINK ABOUT THINGS DIFFERENTLY.
WE WILL DO THINGS DIFFERENTLY.
WE'LL REASSESS WHAT WE'RE COMMITTING, DEMAND RESPONSE, ALL OUR CAPABILITIES.
UM, IF WE SEE A 76 LOAD OR A 73 LOAD VERSUS A 68 LOAD, THAT'S A, YOU KNOW MM-HMM.
UM, BUT THEY, THEY WILL, YOU KNOW, IT'S EASY TO SIT HERE, HINDSIGHT'S 2020, BUT THINGS WOULD'VE HA THINGS WOULD'VE CHANGED IN TERMS OF THE EVENING OF THE 22ND.
THAT PROBABLY WOULD'VE SET US, SET US UP A LITTLE BIT BETTER FOR THE 23RD, EVEN THOUGH WE DIDN'T HAVE ANY RELIABILITY CONCERNS.
WE WERE, WE WERE PRETTY, PRETTY ROBUST ON PRC.
SO, AND, AND I MEAN DAN AND I HAVE TALKED ABOUT THIS QUITE A BIT, BUT THERE IS, UH, UM, IN, YOU KNOW, WHEN, WHEN THESE, WHEN YOU HAVE THESE TAIL EVENTS, THERE PROBABLY NEEDS TO BE SOME FORMAL WAY TO SWITCH, SWITCH OUT, UM, OR, OR, OR WORK WITH THAT BECAUSE I MEAN, IF YOU THINK ABOUT, UH, A NORMAL DISTRIBUTION AND YOU'RE TRYING TO CAPTURE 95% OR 98% OR, OR WHATEVER, AND, AND YOU GO PAST THAT, SOME, SOME OF THESE MODELS JUST AREN'T, AREN'T GONNA WORK THAT GREAT.
AND, AND SO THERE I THINK WE NEED TO POSSIBLY THINK ABOUT, UM,
[01:50:02]
UH, YOU KNOW, SOME, SOME, UH, TRANSPARENT WAY TO, FOR LACK OF A BETTER WAY TO DESCRIBE IT, KIND OF SHIFT THROUGH THE GEARS ON, ON THIS.I STILL WANNA WAIT TO SEE FINISH FOR CALVIN TO FINISH ALL OF HIS ACTIVITIES AND THINGS LIKE THAT, BUT WE SHOULD PROBABLY START ENGAGING ON THIS, UH, AT, AT, AT SOME LEVEL CUZ I, I, I GET, I GET YOUR NEEDS, UH, THAT SIDE OF IT A AS AS WELL.
I THINK WMS IS THE RIGHT SPOT MAYBE AFTER CALVIN FINISHES HIS ANALYSIS AND HAS SOMETHING TO BRING BACK FORTH US.
DAN DID, DID YOU WANNA ADD ANYTHING TO WHAT I'VE SAID OR, OR FOLLOW UP? NO, I DON'T.
JENNIFER? YEAH, I JUST WANTED TO ADD THAT THE OTHER PIECE IS THAT, UM, KIND OF TO BILL'S POINT, EVEN LSCS WHO HAD HIGHER FORECASTS SAW THE ERCOT FORECAST BEING SUBSTANTIALLY LOWER AND POTENTIALLY MODIFIED IN DAY AHEAD, RIGHT? AND SO I THINK THERE, THERE'S AN IMPORTANT PIECE HERE WHERE, UM, WE'RE REALLY LOOKING TO ERCOT FOR THAT SANITY CHECK, UM, AGAINST OUR LOAD FORECASTS.
AND SO TO THE EXTENT THAT WE CAN GET A LITTLE BIT CRISPER, I THINK TO BILL'S POINT WE START TO CLEAR AND DAY AHEAD BETTER.
AND I, SO I GET, I'M GONNA EMPHASIZE THIS AGAIN.
I THINK THINGS LIKE CRISPR IS NOT A, NOT A GREAT REFERENCE POINT BECAUSE AGAIN, IF I'VE GOT A NORMAL DISTRIBUTION AND I'M TRYING TO BE REALLY TIGHT AROUND THAT, I'M GIVEN SOMETHING OUT ON, SO, SO IT'S, IT'S LIKE, UH, I THINK WE HAVE TO THINK WE NEED TO MOVE TO A DIFFERENT, UH, YOU KNOW, FORECASTS OR, OR, OR, OR THINK ABOUT IT THAT WAY BECAUSE WHAT I'M WORRIED ABOUT IS, UM, THE WHOLE REST OF THE TIME, THINK ABOUT HOW THIS IS GONNA PLAY OUT.
IF I'M REALLY FOCUSED ON CATCHING THE 2%, THE OTHER 300 AND, UH, DAYS OF THE YEAR, THAT'S GONNA HURT IN A DIFFERENT WAY, UH, THE MARKET.
SO, SO WE REALLY NEED TO PUT SOME, SOME THOUGHT INTO THIS.
UH, BUT, BUT I, I DON'T WANNA BE TOO, I, I, I THINK I CAME ACROSS TOO CRITICAL OF THE CRISPR STATEMENT.
UH, SO I, I WISH I HADN'T, UH, SAID THAT, BUT, UM, BUT, BUT I DO THINK THERE'S GONNA BE THESE PARADIGM DECISIONS THAT WE HAVE TO MAKE THAT IS MORE ABOUT, UM, WE DON'T, WE, WE KNOW WE'RE GOING SO FAR OFF, UH, THE, THE NORMAL DISTRIBUTION THAT WE NEED TO DO SOMETHING DIFFERENT.
YEAH, I THINK I'D SUPPORT WHERE YOU'RE GOING WITH THIS.
AND IN MY MIND I'M SEEING THIS AS A, UH, LIKE A WAY TO PROCEDURALIZE THIS DEVIATION, RIGHT? WE HAVE A, WE WE'VE BEEN WORKING TO IMPROVE THE FORECAST, BUT WE ALSO ARE VERY STRICT ON THE FORECAST THAT WE'RE USING.
AND IF WE NEED TO TRANSITION, THEN WE NEED TO MAKE SURE THAT EVERYBODY KNOWS WHAT'S GOING ON.
UM, HAVE A PROCEDURE FOR THAT.
IF WE NEED WATER, HAVE SOME WAY OF COMMUNICATING THAT.
SO SUPPORT THAT AND SUPPORT THE DISCUSSION AT WMS. THANKS DAVID.
I, I DON'T WANT TO, UM, GET TOO FAR AHEAD.
I KNOW DAN'S GOT SEVERAL SLIDES TO GO THROUGH, BUT JUST SOMETHING TO THINK ABOUT IS COULD WE MAYBE GIVE WMS A LITTLE CLEAR DIRECTION OR, OR DIRECTIVE BY THE TIME WE GET TO THE END OF THIS, JUST SOMETHING MAYBE TO CONSIDER SO THAT WE, THEY KNOW WHAT THEY'RE SUPPOSED TO BE DOING OR, OR LOOKING AT TRYING TO HELP MY COLLEAGUE OUT BACK HERE,
WE CAN CERTAINLY GIVE SOME DIRECTION AROUND THAT.
SO ERIC GOFF, I, I WAS, UH, CONSIDERING WHETHER OR NOT TO SPEAK ON THAT, BUT YOU KIND OF PROMPTED ME TO DO THAT.
I, I WONDER IF, UM, THE DIRECTION COULD BE LOOK AT THE INPUTS TO THE NEURAL NETWORK, UH, USED FOR LOAD FORECASTING TO DETERMINE IF IT'S MISSING ANY INPUTS AROUND EXTREME WINTER WEATHER.
AND IF SO, HOW TO CORRECT THAT AS WELL AS HOW OPERATORS CAN CHOOSE MAYBE A DIFFERENT FOR FORECAST FOR EXTREME WINTER WEATHER AS, AS WE MENTIONED EARLIER.
YEAH, I GUESS THE, THE, THE FIRST ONE OF THOSE IS SOMETHING THAT WE'RE OBVIOUSLY MOTIVATED TO DO INTERNALLY ANYWAY, AND IT'S WHAT CALVIN'S WORKING ON.
AND SO, YOU KNOW, WE, WE WILL, WE WILL BE WORKING ON THAT.
THE SECOND ONE, WHICH IS MORE WHAT KAAN WAS TALKING ABOUT, WHERE YOU HAVE, YOU KNOW, IN EXTRAORDINARY CIRCUMSTANCES THAT, YOU KNOW, WE THINK THE LOAD REALLY PROBABLY IS HERE, BUT ALL THE MODELS ARE DOWN HERE SOMEWHERE.
AND THAT MAY BE BECAUSE OF WEATHER ISSUES OR SOMETHING LIKE THAT, RIGHT? HAVING A, A BETTER MECHANISM FOR, UH, COMMUNICATING THAT OUT.
I THINK THAT'S A, THAT'S A, THAT WOULD BE HELPFUL FOR STAKEHOLDER INPUT.
[01:55:01]
YEAH, JUST THINKING ABOUT THAT COMMENT THERE IS, SO WE HAVE ALL THIS HISTORICAL 15 MINUTE DATA FOR BASICALLY CALLED EVERY SINGLE HOUSE IN ERCOT.AND SO DOES IT MAKE SENSE TO DO A DEEPER DIVE FROM THAT PERSPECTIVE? LOOK AT, YOU KNOW, DO WE UNDERSTAND OUR CONSUMERS CHANGING THE BEHAVIOR? FOR INSTANCE, IF WE LOOKED AT, YOU KNOW, LOOK AT I GUESS FEBRUARY 15TH OR MAYBE FEBRUARY 14TH, THE 2021, CAUSE AGAIN, WE HAD LOAD SHE ACROSS THE SYSTEM THERE, BUT COMPARE THAT TO DECEMBER 23RD, GO DOWN A RESIDENCE BY RESIDENCE PERSPECTIVE AND KNOWS A DEEP DIVE, LOTS OF INFORMATION, BUT WE HAVE THE DATA TO LOOK AT, TO SEE OUR PEOPLE CHANGE THEIR BEHAVIORS.
NO OTHER COMMENTS OR QUESTIONS ON THIS SLIDE? SO YOU CAN KEEP ROLLING, DAN.
SO SOLAR FORECAST, WIND FORECAST, UM, GENERALLY WE USE THE MORE CONSERVATIVE OF THOSE DURING THE EVENT CAUSE OF THE POTENTIAL FOR CLOUDINESS OUT IN WEST TEXAS PARTICULARLY.
AND, AND, UM, WIND BEING LESS, UM, IN GENERAL, WHAT ACTUALLY HAPPENED IS THE WIND BLEW A LITTLE MORE THAN THAT CONSERVATIVE FORECAST OVER MOST OF THE EVENT SOLAR WAS, UH, ACTUALLY, UH, GOING INTO IT AND, AND TOWARD THE END THAT THERE WERE MORE CLOUDS THAN EVEN THE CONSERVATIVE FORECAST.
BUT WE'RE TALKING LIKE DAYS ON THE OUTSIDE.
MOST OF THE EVENT, THE SOLAR FORECAST WOUND UP BEING RELATIVELY ACCURATE.
AND YOU CAN SEE THE NUMBERS THERE THAT BASICALLY NOTHING, NO ISSUES THERE.
UM, THESE GRAPHS ARE, ARE, ARE KIND OF INTEREST, A GOOD WAY TO LOOK AT IT ALL IN ONE PLACE.
AND SO THE, THE KIND OF THE BLUE AREA IS THE THERMAL GENERATION, GREEN IS WIND, UM, KIND OF, UH, MOV I GUESS IS, IS, IS SOLAR.
AND THEN THE GRAY AREAS ARE THE DIFFERENT KINDS OF NONS SPIN.
AND THE BLACK LINE IS THE THERMAL UNIT OUTAGES AT THE TOP OF EACH HOUR.
SO THAT'S WHY IT'S KIND OF JAGGED.
AND THE RED LINE IS, IS THE DEMAND ON THE SYSTEM.
SO THERE'S A, A FEW PLACES TO LOOK HERE JUST FOR COMPARISON.
SO ON THE EVENING PEAK ON THE 22ND LOAD WAS A LITTLE OVER, WELL, 73 7, UH, GIGAWATTS.
IT WAS AFTER DARK, SO SOLAR WAS NOTHING.
AND THE THERMAL UNIT OUTAGES WERE A LITTLE OVER 6,000, UH, MEGAWATTS.
UM, IF YOU JUMP AHEAD TO THE, THE MORNING OF THE 23RD, THE LOAD WAS A LITTLE HIGHER, UH, BY ABOUT 300 MEGAWATTS.
WIND WAS, UH, LESS, UH, DOWN TO A LITTLE OVER 10 GIGAWATTS.
THE, THE ACTUAL PEAK HAPPENED A LITTLE AFTER THE SUN CAME UP, SO WE DID GET A LITTLE CONTRIBUTION FROM SOLAR AND THE THERMAL UNIT OUTAGES WERE, WERE SIGNIFICANTLY HIGHER.
AND WE'VE GOT A MORE DETAILED GRAPH ON THAT, BUT YOU CAN KIND OF SEE THAT IN THE GRAY LINE THERE THAT WE, UH, THEY DID INCREASE FROM THE, WHAT THEY WERE AT THE TIME OF THE PEAK, UH, UP, UH, THE NIGHT BEFORE UP THROUGH THE MORNING PEAK.
IF YOU JUMP AHEAD TO THAT EVENING, THEN THE LOAD WAS SIGNIFICANTLY LOWER, SO WAS THE WIND.
AND, UH, THE OUTAGES CAME DOWN DURING THE DAY AS THINGS WARMED UP.
AND, UM, SO WE, AND, AND HAD BASICALLY TI THE TIGHTER TIMES WERE IN THAT MORNING AND THAN THE EVENING PEAK ON THE 23RD.
AND YOU CAN SEE THAT IN THE PRICING.
UM, HIGHER PRICES ON THE MORNING OF THE 23RD AND THEN, THEN ALSO IN THE EVENING TIME PERIOD THERE OUTAGES, UM, THIS IS A POOL FROM OUTAGE SCHEDULER.
UM, AND UM, ON THIS, FOR THIS POOL, THE WIND AND SOLAR AT NAMEPLATE, THERE'S REALLY NOT A LOT GOING ON THERE.
UM, YOU CAN SEE THAT BASICALLY IT'S NOT TOO MUCH HIGHER THAN IT WAS, UH, AT THE BEGINNING OF THE BEFORE, WELL BEFORE THE, THE COLD FRONT STARTED THROUGH.
UH, BUT YOU CAN SEE ESPECIALLY IN THE, THE, THE GAS GENERATION THERE THAT THE OUTAGES WENT UP, UM, FROM THE EVENING PEAK TO THE MORNING PEAK COAL WENT UP A LITTLE.
UM, AND UM, SO WE'VE SENT AN RFIS, RFIS OUT TO ALL THE GENERATORS THAT HAD AN OUTAGE REGARDLESS OF, CAUSE DURING THE, UH, DURING THAT TIME PERIOD, UH, THOSE RFIS WERE DUE YESTERDAY, WE GOT MOST OF THEM BACK IN, A COUPLE OF FOLKS, UH, ASKED FOR EXTENSIONS.
UH, SO WE HOPE TO GET THOSE ALL IN THIS WEEK AND THEN WE'LL START TO COMPILE THOSE.
WE'LL HAVE MORE DETAILED INFORMATION THEN THAT WE CAN START ANALYZING.
AND THEN OUR WEATHERIZATION INSPECTION TEAM HAS ALREADY GONE OUT AND STARTED TALKING TO, UH, AND FOLLOWING UP WITH THE UNITS THAT HAD FORCED OUTAGES DURING THOSE TIME PERIODS.
[02:00:01]
OKAY.WE'VE GOT A CUE SETTING UP HERE.
SO I'VE GOT MICHAEL JEWEL FIRST, BILL BARNES, CARRIE BIVINS, AND KEVIN HANSEN.
SO MICHAEL, UH, NO, UM, NO, CAN'T HEAR YOU.
FOLLOWING WINTER STORM YURI, THERE WAS A CHART LIKE THIS THAT WAS CREATED, UM, THAT LOOKED AT THE OUTAGES FOR, OR THE RED REDUCED OUTPUT FOR WIND AND SOLAR, UH, BASED ON EXPECTED OUTPUT VERSUS NAMEPLATE CAPACITY.
WILL Y'ALL CREATE SOMETHING LIKE THAT? UH, SIMILAR, UH, WITH REGARD TO WINTER STORM ELLIOT, WE, I THINK WE'RE INTENDING TO PUT SOMETHING LIKE THAT IN THE REPORT.
UM, LIKE I SAID EARLIER, WIND, THE SOLAR OUTAGES REALLY WEREN'T AN ISSUE IN THIS PARTICULAR EVENT BECAUSE WHEN YOU CAN SEE AN UPTICK IN, WHICH I THINK IS WHAT YOU'RE GETTING AT, YOU CAN SEE A LITTLE BIT HIGHER ON THE 23RD, BUT THE WIND OUTPUT I GO BACK WAS RELATIVELY LOW AT THAT TIME.
SO THE, THE IMPACT WAS, WAS NOT SIGNIFICANT FROM, IN TERMS OF HOW MUCH GENERATION OUTPUT WAS AVAILABLE.
YEAH, AND I THINK THE, THE CONCERN WITH REGARD TO THIS IS IT LOOKS LIKE THERE WERE A LOT OF OUTAGES, UM, BUT RELATIVE TO WHAT ERCOT WAS EXPECTING, THERE WAS NOT A LOT OF DIFFERENCE IN WHAT YOU WERE EXPECTING.
YEAH, AND, AND REALLY FOR, FOR, FOR THIS SLIDE, UH, THAT'S WHY THAT COMPARISON BETWEEN WHAT WE HAD FOR THE PEAK ON THE 23RD VERSUS I, I'M SORRY, ON THE EVENING OF THE 22ND UP TO THE PEAK ON THE 23RD IS REALLY THE KIND OF THE, THE, THAT'S THE SIGNIFICANT THING, UH, NOT THE OVERALL LEVEL OF OUTAGES.
IF THEY DIDN'T CHANGE FROM THE 21ST ON, UH, THAT'S NOT LIKELY TO BE DUE TO WEATHER OR ANYTHING LIKE THAT.
BILL BARNES, UH, MICHAEL TOOK MY QUESTION.
UH, I WAS WONDERING IF YOU GUYS WERE GOING TO CREATE AN ADJUSTED CHART THAT SHOWED THE ACTUAL PRODUCTION POTENTIAL OUTAGE FOR RENEWABLES AND THEN ALSO FOR GAS.
UH, DO YOU HAVE A SENSE ON HOW MUCH WAS IMPACTED BY FUEL CURTAILMENT ISSUES? I'VE GOT A SLIDE ON THE FUEL ISSUES, BUT I THINK WE'RE PROBABLY MORE LIKELY TO HAVE TO ANSWER THAT AFTER THE RFIS.
YEAH, YOU MENTIONED THIS COMES FROM THE OUTAGE SCHEDULER AND MY EXPERIENCE HAS BEEN THAT THE OUTAGE SCHEDULER UNDERSTATES OUTAGES, SO YOU STATE THIS PRELIMINARY, DO YOU INTEND TO GO BACK AND DO, UH, A TRUEUP WITH USING TELEMETER VALUES TO FIND OUTAGES AND D RIGHTS? OUR, OUR INTENTION IS TO LOOK AT TELEMETER VALUES, THE OUTAGE SCHEDULER AND THE RESULTS OF THE RFIS AND KIND OF PUT IT ALL TOGETHER.
AND, AND ANOTHER THING THAT WE'LL BE DOING CUZ IS LOOKING AT, UH, KIND OF, UH, WHETHER PEOPLE WE, WE PASSED NPR 10 84 THAT REQUIRES MORE, UH, RAPID UPDATES OF WHAT'S IN OUTAGE SCHEDULER.
THAT SEEMED TO HAVE HELPED THIS TIME RELATIVE TO WHAT WE SAW IN 2021, THAT PEOPLE GOT THINGS IN FASTER.
BUT THERE WERE STILL, I'LL JUST TELL YOU THE SHAPE OF THIS GRAPH CHANGED, UM, SEVERAL DAYS LATER, YOU KNOW, AND SO WE, WE ARE GONNA HAVE TO FOLLOW UP ON THAT TO SEE HOW PEOPLE DID ON THAT AS WELL.
KEVIN HANSEN, WALTER REEDEN AND BILL BARNES.
YEAH, DAN, I'M JUST CURIOUS, IS THE OUTAGES FOR THE WIND AND SOLAR IS THIS OPERATIONAL GENERATION ONLY? WHAT I MEAN BY THAT IS ARE THESE FULLY COMMERCIAL WIND AND SOLAR RESOURCES OR IS THIS ALSO INCLUDING THOSE RESOURCES THAT ARE IN STAGE TWO OF THE PROCESS GOING, GOING FORWARD OF THERE? UH, CONNECT INTERCONNECTION TO THE SYSTEM? I ACTUALLY DON'T KNOW THE ANSWER TO THAT, BUT WE'LL, WE'LL PUT SOMETHING ABOUT THAT IN THE REPORT BECAUSE I WAS JUST THINKING, I'M JUST SPECULATING A LOT OF THIS WIND SOLAR OUTAGES MAY BE TIED TO THAT.
UH, I WAS WONDERING IF WE HAVE ANY SENSES FOR PRICE RESPONSIVE, UH, LOAD AND IN PARTICULAR, UH, FRIDAY AFTERNOON ON THE 23RD, UH, THE LOAD CAME DOWN.
DO WE KNOW A REASON FOR THAT? WELL, SO THE LOAD CAME DOWN ON FRIDAY AFTERNOON BECAUSE A LOT, BECAUSE IT, THE SUN CAME OUT WARM, IT WARMED UP, UH, THAT AFTERNOON.
UH, SO THE TEMPERATURES WEREN'T AS COOL IN THE AFTERNOON, UH, ON THE PRICE SENSITIVE DEMAND.
UM, WE'VE GOT SOMETHING ABOUT THAT IN A COUPLE OF SLIDES, SO MAYBE I CAN A ANSWER THE OTHER QUESTIONS ON THIS SLIDE AND THEN WE'LL GET TO THAT.
ALL RIGHT, BILL BARNES, THIS IS A QUESTION REGARDING THE FIRM FUEL SERVICE.
SO MAYBE, UM, I'LL TEE IT UP FOR DAVE, BUT WHEN FIRM FUEL RESOURCES ARE DEPLOYED, WHICH I LOOKS LIKE THEY'RE ON 2,800 MEGAWATTS OF GAS PLANTS THAT WERE DEPLOYED TO CONVERT TO UH, FUEL OIL, DO
[02:05:01]
THEY ENTER IN AN OUTAGE FOR THE GAS PIECE? IS THERE ANY REQUIREMENT THAT YOU HAVE TO SHOW THE UNIT ON OUTAGE? CUZ YOU, YOU'VE SWITCHED AWAY FROM GAS TO DIESEL? I, I GUESS I, I DON'T HAVE THAT IN MY SLIDES, BUT I'M NOT AWARE OF ANY RULE THAT, THAT THAT WOULD BE THE CASE.AND, AND IN FACT, OBVIOUSLY WE'RE EXPECTING THE, THE RESOURCE TO RUN AND ALL THAT.
I ASSUME THEY WOULD ONLY SUBMIT AN OUTAGE FOR SOME REASON THE PLANT COULDN'T RUN ON SOME FORM OF FUEL.
NAVA, DID YOU GET THOSE, UH, RFI RESPONSE BACK FROM THE GENERATORS AND ALSO THE THIRD POINT ABOUT THE
A FEW, A COUPLE OF PEOPLE ASK FOR EXTENSION AND SO WE SHOULD BE GETTING ALL OF 'EM IN I THINK THIS WEEK.
SO THOSE RFI RESPONSE WILL BE MADE PUBLIC IN THE ACCURATE WEBSITE OR HOW, HOW I WILL KNOW THAT.
I DON'T THINK SO, BUT WE'LL HAVE TO LOOK AT THAT.
NO OTHER QUESTIONS ON THIS PARTICULAR SLIDE SO WE CAN KEEP ROLLING, DAN.
SO HERE'S, UH, PART OF THE ANSWER TO WALTER'S QUESTIONS IS THAT WE DID LOOK AT THE KNOWN LARGE FLEXIBLE LOADS TO SEE WHAT THEY DID DURING THE EVENT AND THE AGGREGATE.
UM, AND YOU CAN SEE HERE THAT, UM, GENERALLY THEY CON CONTINUED TO, UH, UM, CONSUME DURING THE EVENING PEAK ON THE 22ND AND THEN, BUT THEN WENT DOWN SIGNIFICANTLY DURING THE MORNING PEAK AND THE EVENING PEAK ON THE 23RD.
UM, AND THERE IS A, UM, I GUESS WE WERE, WE WERE MISSING ONE SITE ON THIS, THIS GRAPH.
SO REALLY THE KIND OF THE TOTAL NUMBER UP THERE I SEE BEING 1280 IS 1400 WAS KIND OF THE, THE, THE LARGEST, UH, IMPACT.
AND SO IF WE HAVEN'T DONE THAT ANALYSIS THAT WE SOMETIMES DO OF ALL, UH, ALL PRICE SENSITIVE DEMAND, BUT AT LEAST WE WERE LOOKING AT THESE FOR THE ONES THAT WE HAVE TELEMETRY FOR NAVA, ARE YOU STILL IN THE QUEUE OR JUST OKAY.
UM, JUST AN INDICATIVE GRAPH HERE OF HOW MUCH, UM, ENERGY STORAGE WAS CARRYING OF REGULATION UP AND RESPONSIVE RESERVE.
UM, AND YOU CAN SEE THAT, UM, YOU KNOW, THERE WERE SOME PRETTY SIGNIFICANT AMOUNT OF THE, UH, BFR RESPONSIVE RESERVE AND REG UP THAT WAS BEING CARRIED BY, BY BATTERIES DURING THE EVENT.
KEVIN, WHICH WAS NOT AN EVENT.
YEAH, DAN, IF YOU CAN GO BACK ONE SLIDE REAL QUICK, I'M SORRY.
UM, IT MAY BE BENEFICIAL TO ADD ON THE, UH, DAY AHEAD PRICES UNDER THIS CHART IN THE FUTURE.
OKAY, WHAT, CAN YOU ELABORATE ON THAT? WHY, WHY WOULD I SHUT DOWN DAY AHEAD? I SEE DAY AHEAD PRICES APPROACHING SOME PRICE, WHATEVER MY PRICE IS, WHETHER IT'S $2,000, $3,000, I MAY PLAN TO SHUT DOWN FOR THOSE HOURS I SEE COMING AND I GET PAID ALREADY.
SO, SO FOR PLANNING PURPOSES, UH, YOU, YOU WOULD UTILIZE THAT, CORRECT.
BUT ULTIMATELY YOU WOULD NOT NECESSARILY REACT TO THAT IF THOSE PRICES DID NOT SHOW UP? DEPENDS ON MY CONTRACTUAL RELATIONSHIPS.
DOES, DOESN'T IT ACTUALLY DEPEND MORE ON YOUR COST OF GENERATING WHATEVER IT IS YOU'RE DOING AS THAT LARGE FLEXIBLE LOAD? CORRECT.
I'M JUST SAYING THOUGH, MAYBE AN ISSUE I WAS JUST SAYING I WOULD ADD THAT LINE OF THEY HAD PRICES ONTO THIS CHART TO SHOW POTENTIAL IMPACT OF BEHAVIORS.
UH, AND AGAIN, I'M SKEPTICAL ABOUT THAT ACTUALLY DRIVING THE BEHAVIOR.
IT'S AT THE REAL TIME PRICES THAT ARE GONNA DRIVE THE, THE OUT ULTIMATE OUTCOME.
I WOULD SAY, I WOULD SAY DURING A URI EVENT WHERE IT'S MULTIPLE DAYS, YOU MAY HAVE DIFFERENT BEHAVIORS AND YOU KNOW, THE DAY HEAD PRICES MAY IMPACT YOUR BEHAVIOR.
I'M JUST SAYING ADD IT TO THE CHART.
SO, BUT I MEAN, YOU CAN ADD THAT AND THEN YOU'RE GONNA SEE SOME THAT EXPLAIN IT AND SOME THAT DON'T
[02:10:01]
EXPLAIN IT.YEAH, I MEAN, I DON'T THINK IT'S ANY PROBLEM TO ADD IT TO THE CHART, BUT, UH, I WOULD HOPE THAT THEY'RE RESPONDING TO THE REAL-TIME PRICES BECAUSE THAT'S AN INDICATION OF THE RELIABILITY NEED.
I, I GUESS MY COMMENT THERE ALSO IS THAT, SO WE GOT LATER ON THERE, YOU SAW SOME LOAD COME BACK, BUT NOT ALL OF IT COME BACK.
SO I'M WONDERING IF THERE'S PRICING, THEY HAD PRICING DRIVING SOME OF THAT LOGIC.
SO I, I, I MEAN, DAN, IT'S YOUR CALL, BUT I WOULD ON A ERCOT THING, NOT NECESSARILY ADD THAT.
UH, I THINK THAT'S SOME A POINT YOUR COMPANY CAN MAKE.
UM, BUT I'M NOT SEEING NECESSARILY THE UTILITY IN ADDING THAT INFORMATION.
UM, NATURAL GAS, I MEAN, WE SAW THE, UM, GAS RESTRICTIONS IN NORTH TEXAS THAT, UM, ARE SOMEWHAT TYPICAL.
THERE ARE ALSO A FEW OPERATIONAL FLOOR ORDERS THAT WERE ISSUED BY SOME OF THE PIPELINES TO KEEP PEOPLE TO THEIR CONTRACT, UH, MAXIMUMS. UH, THAT RESULTED A A FEW GEN, WELL, THE GAS, NORMAL GAS RESTRICTIONS RESULTED IN THE, THE SET OF GENERATORS THAT NORMALLY, UH, HAVE TO GO OUT BECAUSE OF THOSE.
AND THEN THE, THERE WERE A FEW OTHERS BECAUSE OF THESE OPERATIONAL FLOOR ORDERS, UH, WE USED THE FIRM FUEL SUPPLY SERVICE TO KEEP THOSE UNITS AVAILABLE THAT OTHERWISE WOULDN'T HAVE BEEN ABLE TO GENERATE.
AND, AND DAVE'S GONNA TALK MORE ABOUT THIS IN A, HIS PRESENTATION LATER.
UM, WE ARE TRYING TO DO MORE COMMUNICATION WITH THE GAS INDUSTRY, UH, TO THE EXTENT THAT WE CAN, UM, KEEP AN EYE ON THO THAT THOSE ISSUES.
UM, TC JUST HOLD, HOLD ON JUST A SECOND, DAN.
WE GOT CARRIE IN THE QUEUE ON THAT.
YEAH, I'M BACK AT THE LAST SLIDE, PLEASE, DAN.
UM, SO MY QUESTION IS, WERE THE GAS RESTRICTIONS CORRELATED WITH THE DEPLOYMENT AND THE RECALL OF THE FERN FUEL SUPPLY SERVICE? AND IF NOT, WHY NOT? SO, UM, I'LL, I'LL, I'LL MENTION AT, AT AT ONE THING AND THEN DAVE CAN TALK MORE ABOUT IT IN A MINUTE.
BUT, UM, BECAUSE HE'S GOT A WHOLE PRESENTA, WE DIDN'T PUT THIS IN THIS PRESENTATION CUZ HE WAS DOING A, A WHOLE SEPARATE ONE THAT'S REQUIRED.
BUT IN GENERAL, I THINK OUR GOAL DURING THE EVENT, AND THIS WAS PART, PART OF THE, UH, PART OF THE, UM, UM, WHAT I WAS MENTIONING ABOUT BEING PREPARED FOR THE HIGHER LOAD FORECAST, WE TRIED TO MAXIMIZE AVAILABLE GENERATION DURING THE EVENT AND WHERE TO THE EXTENT THAT UNITS WOULDN'T HAVE BEEN AVAILABLE SOLELY BECAUSE OF GAS RESTRICTIONS.
UM, IF, IF THEY WEREN'T PLANNING ON RUNNING ON THEIR OWN, THEN WE WOULD, UH, WE WOULD COMMIT THEM UNDER THE FIRM FUEL SUPPLY SERVICE.
SO I'M HEARING THAT THE FIRM FUEL SUPPLY SERVICE WAS NOT SOLELY USED TO HANDLE GAS RESTRICTIONS, WAS ALSO USED FOR CAPACITY IN ERCOT DURING THE EVENT.
WELL, IF YOU DON'T HAVE FUEL, THE CAPACITY DOESN'T DO ANY GOOD.
OH, WELL, THAT'S WHAT I'M TRYING TO UNDERSTAND IS WERE THE GAS RESTRICTIONS STILL IN PLACE ON THE 24TH AND THE 25TH OR NOT DIFFERENT, DIFFERENT ISSUE.
WHY DON'T, WHY DON'T WE LET, BECAUSE JUST REAL QUICK, I GUESS I DON'T HAVE ANYTHING SPECIFICALLY COVERING THAT TODAY IN MY PRESENTATION, SO PERHAPS THAT MIGHT BE SOMETHING I HAVE TO FOLLOW UP ON.
I JUST WANNA SET THE STAGE FOR MY PRESENTATION THAT I MAY NOT COVER THAT EXACTLY TO THE DEGREE YOU'D LIKE HERE.
YEAH, I THINK MY OVERARCHING QUESTION IS, WAS THE SERVICE USED THE WAY IT WAS UNINTENDED TO, AND IF IT'S INTENDED AND IF ERCOT OPERATIONS PLANS TO USE IT DIFFERENTLY, THEN DO WE NEED TO MAKE ADJUSTMENTS TO THE PROTOCOLS TO REFLECT THE FACT THAT IT'S BEING USED DIFFERENTLY? I THINK THAT'S A, IT, IT'S, IT'S A FAIR QUESTION IF, IF, IF THERE ARE ISSUES THAT WE NEED TO DO DIFFERENTLY, BECAUSE THIS IS THE FIRST TIME WE'VE USED IT.
UM, I THINK WE HAD SOME LESSONS LEARNED, DAVE, WE'LL TALK MORE ABOUT THAT IN HIS PRESENTATION, UH, THAT WHERE WE ALREADY BELIEVE THERE NEEDS TO BE SOME IMPROVEMENTS.
AND SO IF THERE ARE OTHERS, FEEL FREE TO LET US KNOW.
ON THE TYPICAL GAS RESTRICTIONS IN NORTH TEXAS, ABOUT HOW MUCH CAPACITY DOES THAT AFFECT? BALLPARK? IT DOESN'T HAVE TO BE EXACT.
THAT'S THREE, 3000 SOME ODD MEGAWATTS, I GUESS.
UM, DO YOU HAVE ANY INDICATION, AND YOU MIGHT NOT AT THIS POINT PROBABLY I CAN HEAR YOU.
DO YOU HAVE ANY INDICATION, UH, OF IF ANYONE HAS
[02:15:01]
SEEN ANY EVIDENCE AND RESIDENTIAL LOADS OF EARLY DEPLOYMENT OF NATURAL GAS HOME BACKUP GENERATORS, KIND OF IN RESPONSE TO CONCERNS ABOUT WHETHER OR NOT POWER WOULD BE LOST? I WONDER IF PEOPLE TURNED ON THERE BACKUP GENERATORS AND YOU CAN SEE THAT IN A, YOU KNOW, AN EASY ID BY EASY ID STUDY AT SOME POINT? YEAH, I, I DON'T, WE HAVEN'T LOOKED AT THAT YET.KEVIN HANSEN, UM, DURING THE, UH, THE WINTER STORM, WE SAW CLEARLY OF HIS HOUSES IN THE, IN THE NORTH PART OF THE STATE WERE IMPACTED BY LACK OF DELIVERY AND NATURAL GAS WAS IN THE PRESS AND DEFINITELY PEOPLE WERE IMPACTED.
ARE WE SEEING ANY OF THAT RELATIONSHIP TO ANY OF THE, UH, GAS DELIVERABILITY TO THE POWER PLANTS ALSO DURING THAT SAME TIME PERIOD? I'M NOT AWARE OF ANY THAT WERE DIRECTLY RELATED TO THOSE SAME ISSUES THAT WERE, UM, IN THE NEWS.
ABOUT MORE, THERE WERE MORE DISTRIBUTION, I GUESS, RELATED.
I, I GUESS THE QUESTION IS, I GUESS FURTHER IS THAT, I GUESS IN TERMS OF THE ORDER OF WHEN THEY WERE SUPPOSED TO BE CURTAILING GAS DELIVERY, I'M ASSUMING THE POWER PLANTS WERE BEFORE RESIDENTIAL, SO I WAS JUST WONDERING YEAH, I I, ALL I KNOW IS WHAT I READ IN THE NEWSPAPER
AND MOST OF THOSE WERE, SEEMED TO BE LIKE VERY LOCALIZED.
UH, KEVIN, YOU, YOU ARE RIGHT THAT THE RAILROAD COMMISSION HAS A PRIORITY, UH, FOR, FOR CURTAILMENT.
UM, SO, BUT, BUT THE WAY THAT PLAYS OUT HAS A LOT TO DO WITH THE, THE RULES GOVERNING, UM, THOSE DIFFERENT, DIFFERENT SYSTEMS. SO THAT I, BUT, BUT I THINK YOUR ASSUMPTION THAT THERE IS A PRIORITY WITH, UH, UH, RETAIL BEING, UH, A HIGHER PRIORITY IS ACCURATE.
I GUESS, YOU KNOW, FOLLOW UP ON ERIC'S COMMENT THERE WITH REGARDS TO THE BACKUP GENERATORS, IF WE START MOVING TO MORE AND MORE OF THOSE BEING THE HIGHER PERCENTAGE OF CUSTOMERS IN THE STATE IS GONNA BE AN ISSUE, AN IMPACT IN THE FUTURE.
AND DO WE HAVE TO CONCERN OURSELVES ON THE ELECTRIC SIDE OF THE, OF THE TIP? UH, I, I THINK, UH, JUST COMMENT FROM THE PHONE.
I'LL, I'LL LET THE VOICE FROM THE PHONE.
UM, KEVIN, THE, UH, RAILROAD COMMISSIONER ACTUALLY CODIFIED ITS, UH, PRIORITIZATION AND FOR NATURAL GAS, THE LOCAL DISTRIBUTION COMPANIES ARE THE HIGHEST PRIORITY, AND WE CAN ALL ARGUE ABOUT THE INTERDEPENDENCE OF ELECTRIC AND GAS, BUT THEY HAVE MADE THAT CHOICE BECAUSE OF THE DIFFICULTY IN ESSENTIALLY GOING HOUSE TO HOUSE AND RELIGHTING PILOT LIGHTS AND DOING SAFETY CHECKS.
SO RESIDENTIAL DOES TAKE PRIORITY OVER ELECTRIC GENERATION.
UM, ENVIRONMENTAL STUFF, UM, THE, UM, WE, WE MADE A REQUEST TO T C Q TO, UH, FOR THEM TO USE ENFORCEMENT DISCRETION, WHICH THEY DID.
UH, WE, UM, MADE A REQUEST TO D OE, UH, FOR THEM TO ISSUE A, A SECTION 2 0 2 CUN ORDER.
UM, AFTER SOME DISCUSSION, THEY DID THAT AS WELL, SUBJECT TO US BEING, PEOPLE COULD USE IT IF WE WERE, HAD ACTUALLY WENT INTO AN EMERGENCY CONDITION, WHICH WE DID NOT.
UM, BUT REALLY OUR INTENT IN DOING BOTH OF THOSE THINGS WAS TO MA ONCE AGAIN, TO MAXIMIZE THE AVAILABILITY OF GENERATIONS SO THAT WE COULD AVOID GOING INTO CON EMERGENCY CONDITION.
JUST, YEAH, ONE CLARIFYING COMMENT ON THE LAST BULLET IS, I AM AWARE THAT THERE WERE SOME GENERATION RESOURCES THAT, THAT REQUESTED PROTECTION UNDER THE 2 0 2
UM, AND SO IF ERCOT DID, UH, GET TO AN EEA, THERE WOULD'VE BEEN ADDITIONAL MEGAWATTS AVAILABLE THAT WOULD NOT HAVE BEEN ABSENT THE DOE REQUEST.
SO WE SEE THIS AS A VALUABLE PART OF THE OVERALL EMERGENCY CONDITIONS PROCESS BESIDES THE TCQ REQUEST.
SO YEAH, THAT'S PROBABLY GOOD CLARIFICATION.
IS THAT ALWAYS GONNA BE THE PROCESS WHERE ERCOT DOESN'T WAIT UNTIL IT KNOWS IT HAS AN EMERGENCY? IT'S, IS ERCOT ALWAYS GONNA REQUEST THE D O U ORDER AHEAD OF A POTENTIAL EMERGENCY? UM, IT SEEMS LIKE A LOT OF THE LANGUAGE AND THE FORMAL REQUEST TALKS ABOUT THERE'S EMERGENCY AND THEN THERE'S NOT AN EMERGENCY.
I THINK LOOK AT THE, LOOK AT THE TIME STAMPS ON THAT, UM, UM, THE
[02:20:01]
REQUEST AND YOU CAN SEE HOW LONG IT TAKES.SO, UH, IF YOU DON'T START THE PROCESS PRIOR TO WHEN YOU THINK YOU MIGHT NEED TO USE IT, IT'S, UM, THERE'S, YOU'RE PROBABLY TOO LATE AND A LOT OF POTENTIAL EMERGENCIES.
I, I JUST WANNA ECHO WHAT DAN SAID.
I THINK IT IS ABOUT WHAT IT, THE TIME IT'S GONNA TAKE TO GET THE APPROVAL AND, AND WHAT WE'RE COMMUNICATED TO ON FROM THAT STANDPOINT KIND OF TRIGGERS WHEN WE START WORKING WITH DOE.
AND THERE'S, THERE IS SOME VARIANCE IN THAT, OR, OR STRETCH AND COMPRESSION.
BUT I CAN JUST TELL YOU THAT DURING YURI, IT WAS SEVERAL PEOPLE WORKING ALL NIGHT TO GET THAT DONE, AND THAT OKAY.
THAT IS, I THINK, LESS THAN PREFERABLE.
JUST THE COMMUNICATION WAS CONFUSING.
SO, SO THAT MIGHT BE SOMETHING WORTH FOLLOWING UP ON, UH, WITH YOU, UH, TO SEE, SEE WHAT WE CAN DO TO ADDRESS THOSE CONCERNS.
SO WHAT, WHAT WAS YOUR EXPECTED TIMELINE FOR RECEIVING THE DOE APPROVAL? I MEAN, IF YOU LOOKED AT THE MORNING AND THE 24TH, THAT DIDN'T SEEM TO BE NEAR AS TIGHT OF A CONDITION AS WHAT WE HAD SEEN THE EVENING OF THE, AS WE WERE ROLLING INTO THE 23RD.
SO THIS SEEMS TO IMPLY TO ME THAT YOU WERE EXPECTING TIGHTER CONDITIONS AND ALL OUTWARD FACING INFORMATION SEEMED TO POINT TOWARDS TIGHTER CONDITIONS ON THE EVENING OF THE 23RD.
WAS YOUR INTENTION TO GET THIS IN PLACE FOR THAT EVENING OF THE 23RD? YES.
SO JUST BACKING THINGS UP A LITTLE BIT, IN HINDSIGHT, WOULD YOU HAVE REQUESTED THIS ON THE 22ND INSTEAD TO GIVE ENOUGH TIME FOR THE MORNING OF THE 23RD EVEN AND THE EVENING OF THE 24TH, UH, AND THE EVENING OF THE 23RD, RATHER, I UNDERSTAND IN RETROSPECT YOU HAVE THAT OPPORTUNITY OR THAT LUXURY NOW, BUT JUST ASKING FROM A LESSONS LEARNED PERSPECTIVE, WHAT DO YOU I THINK IT'S, IT'S VERY FACT BASED IN WHAT WE KNEW AT THE POINT IN TIME VERSUS WHAT WE KNEW AT THE TIME THAT WE, UM, IF, IF YOU'LL THINK ABOUT MY GRAPHS, UM, BACK, YOU KNOW, BASICALLY FROM THE MORNING PEAK ON THE 23RD, UH, THE NUMBER OF OUTAGES, THE FACT THAT WE SAW A DECLINING WIND FORECAST AND, AND SO FORTH, EVEN THOUGH THE LOAD WAS GOING EXPECTED TO BE LOWER, WE THAT WE'RE MORE WORRIED ABOUT THE EVENING OF THE 23RD.
AND THAT'S WHAT PROMPTED THIS.
BRIAN SAMS, I, I HAVE A QUESTION ABOUT THE INTERPLAY OF ERCOT HOLIDAYS AND ER S UH, I UNDERSTAND THAT MAYBE SOME OF THE ER S RESOURCES WERE NOT AVAILABLE IN THE 23RD BECAUSE IT WAS, IT IS AN ERCOT HOLIDAY.
UH, DO YOU GUYS EXPECT TO LOOK INTO THAT JUST IN, TO HAVE IT AS A, UM, YOU KNOW, AS A RESOURCE GOING FORWARD? UM, AND OBVIOUSLY WITH IT BEING A, A HOLIDAY, I THINK FOR MANY BUSINESSES YOUR, YOUR OUTPUT MIGHT BE DIFFERENT, BUT THAT JUST SEEMS LIKE, UM, ANOTHER PLACE TO EXAMINE.
UH, I MEAN, WE, WE PLAN TO REVIEW THE, THE PROCESS AND, AND SEE IF THERE'S IMPROVEMENTS TO MAKE ON E R S.
APPRECIATE THE PRESENTATION, DAN.
WE WILL NOW MOVE ON TO REALTIME CO-OPT OPTIMIZATION.
MATT MARIAS WITH ERCOT AND I WAS JUST GONNA DO A VERBAL UPDATE TODAY.
UH, DAVE HELPED TO TEE IT UP BACK IN DECEMBER.
UH, WE'RE PULLING REALTIME OPTIMIZATION OFF THE SHELF TO TAKE A LOOK AT IT.
AND WE WANTED TO BRING YOU AN UPDATE TODAY ON THAT, WHAT IT LOOKS LIKE.
UM, TWO YEARS AGO IT WAS ONE OF THESE TECH MEETINGS, THINGS WERE FULL BORE, AND THEN URI HIT AT THAT POINT, REALTIME CO COOPERATION WAS A SERIES OF NPRS COUPLED WITH PASSPORT.
IT WAS A PACKAGE, UM, WITH THE EMS UPGRADE, IT WAS ATTACHED TO ECR R S, IT WAS A BUNDLE AND IT WAS OFF AND RUNNING.
UH, ONCE URI HIT, THE IDEA WAS, THIS IS NOT A PRIORITY, LET'S FOCUS ON WHAT RELIABILITY LOOKS LIKE TO WALK THROUGH THAT.
AND SO AT THAT TIME, A DECISION WAS MADE BY THE EXECUTIVE TEAM TO PARK IT.
THE IDEA WAS TO CEASE WORK ON THIS, PUT THE, WHAT'S BEEN DONE ON A SHELF.
AND WE ONLY GOT A COUPLE MONTHS INTO THIS.
THIS IS WHERE IT STARTED IN JANUARY OF 2021 AS A THREE AND A HALF YEAR PROJECT.
ONLY MADE A LITTLE WAVE OUT AND THEN WE STOPPED IT.
SO WHAT WE HAD AT THAT POINT, REALTIME IZATION HAD BEEN ASSESSED, IT WAS A THREE AND A HALF YEAR PROJECT.
[02:25:01]
IN SOME WAYS THAT HASN'T CHANGED BECAUSE WE HAVEN'T REVISITED IT YET, IS ALSO 51.6 MILLION.THAT HASN'T CHANGED BECAUSE WE HAVEN'T REVISITED YET, BUT THERE'S INFLATION.
SO WE KNOW WE NEED TO GO BACK AND LOOK AT THAT.
SO WHAT DOES IT LOOK LIKE? AS WE CAME INTO THE END OF LAST YEAR, UM, SORRY.
ONE MIDDLE PIECE WE HAD, AS WE STOPPED WORK, WE PUT A BUDGET LINE ITEM IN.
THERE'S TICKET ITEMS IN THE BUDGET.
IF YOU LOOK AT IT, THE, EVEN THE BIANNUAL HAS THINGS LIKE DATA CENTER FIVE BUILD OUT.
IT'S HAD THINGS LIKE REALTIME COOP OPTIMIZATION PARK THERE.
SO THAT 50 MILLION HAS BEEN PARKED OVER THE LAST COUPLE YEARS AS PART OF OUR BUDGET TO BE USED STARTING IN JULY OF THIS YEAR.
AND SO WHAT WE'VE DONE IS THE, UH, DESIGNATED FUNDING THAT WAS IN PLACE BEFORE IS NO LONGER THERE.
THIS IS JUST A REGULAR BUDGET ITEM WITHIN THE OVERALL PROJECT, UM, DELIVERY.
AND SO WITH REGARDS TO RTC FUNDING, THERE IS NO WALLET OF SPECIAL MONEY.
THIS IS JUST PART OF THE OVERALL BUDGET, AND THAT'S HOW IT'S BEEN TRACKED.
THAT'S HOW IT'S ER CUT IS BEING FUNDED.
AND THAT'S THE CURVE THAT WE OPERATE UNDER WITH SEAN TAYLOR.
SO WHAT THE WORK LOOKS LIKE THIS YEAR, STEP ONE IS TO REASSESS, UH, SCOPE.
SO AS THE EXECUTIVES MET LATE LAST YEAR, AND THAT WAS DAN, THAT WAS HANAN, THAT WAS WOODY, THAT WAS OUR CEO.
WHAT IS RTC LOOK LIKE? WHAT HAS IT BEEN? TRADITION? IT LOOKS THROUGH THE LENS OF MARKET EFFICIENCY.
WE LOOKED AT IT THROUGH THE LENS OF RELIABILITY.
IF WE HAVE MORE ANCILLARY SERVICES ON THE SYSTEM, WE HAVE A RAPIDLY EVOLVING FLEET, WE HAVE THINGS THAT MOVE VERY QUICKLY.
WHAT DOES REAL-TIME COST LEGISLATION LOOKS LIKE? AND FROM A LIABILITY PERSPECTIVE, IT'S THE NEXT THING THAT WE REALLY DO NEED.
SO WE'RE NOT IGNORING WHAT'S GOING ON AT THE COMMISSION.
WE KNOW THERE'S A LOT OF THINGS AT PLAY WITH THAT, BUT THE IDEA WAS TO START MOVING FORWARD ON IT, REMEASURE THE SIZE OF THE PROJECT, THE TIMING OF THE PROJECT, AND ULTIMATELY TO GET OUR TARGET IS TO GET, I THINK A GOOD QUESTION IS, SO WHAT'S NEXT JUNE BOARD MEETING WOULD BE WHERE WE'VE DONE OUR DUE DILIGENCE TO REASSESS WHAT IT LOOKS LIKE AND TAKE IT TO THE BOARD AND SAY, HERE'S HOW MUCH IT COSTS, HERE'S THE RESOURCES.
IT LOOKS LIKE, HERE'S THE PINCH POINTS, OR HERE'S WHAT WE KNOW HAS HAPPENED AT THE COMMISSION BY THAT POINT ALSO.
SO, UM, IT'S NOT WITHOUT, UM, WE'RE NOT BLIND TO THE RISK OF THIS PROJECT OF GETTING GOING, BUT WE ALSO KNOW THAT WE NEED TO MOVE FORWARD ON IT.
SO, UH, WITH THAT, I WANTED TO OPEN UP FOR QUESTIONS.
I WILL SAY KANAN AND I TALK, WE LIKE TO START COMING BACK EVERY MONTH AND JUST KEEP, KEEP THE HEARTBEAT OF THIS THING GOING SO YOU GUYS KNOW WHERE IT IS, UM, BECAUSE IT IS A BIG DEAL WHEN IT GETS THERE AND, UM, IT'LL TAKE YOUR INPUT.
SO ANY QUESTIONS? SO MATT, FIRST OF ALL, JUST WANNA SAY YOU ARE WELCOME BACK EVERY MONTH TO COME TALK TO US,
LOOKS LIKE WE'VE GOT CARRIE A FOLLOWED BY EMILY.
HEY, MATT, I WAS JUST WONDERING WHEN THE STAKEHOLDERS CAN EXPECT, UM, SINCE EVERYTHING WAS, WAS, UM, THE GRAY BOXES WERE ALL IN CERTAIN ORDERS, ASSUMING CERTAIN PROJECT DELIVERABLES WOULD COME AT CERTAIN TIMES WITH ECR RS AND EVERYTHING ELSE, IS THERE GONNA BE AN EFFORT FOR ERCOT TO UPDATE ALL THOSE NPRS AND WHEN CAN WE EXPECT THAT? SO WHAT WE'RE TRYING TO DO IS IT'LL REALLY HELP ONCE ECR S GOES IN, AND THAT'LL BE IN JUNE.
BECAUSE THAT'LL UNTANGLE A LOT OF THINGS.
OUR BUSINESS REQUIREMENTS ARE THINGS THAT WE WILL START TO FOCUS ON THE SECOND HALF OF NEXT YEAR.
I DON'T KNOW THAT YOU'LL SEE THE PERFECT SET OF PROTOCOLS BEFORE RESTART.
BUT WE WILL HAVE IS THE COST AND THE TIME AND THE EFFORT, LIKE THE, THE ESSENCE OF IT HASN'T CHANGED, BUT THE CLARIFYING PROTOCOLS WILL PROBABLY PLAY OUT THIS YEAR.
AND THERE MAY BE SOME GAPS THAT HAVE SHOWED UP, BUT THAT'S BEEN A, A DRUMBEAT THAT CANON HAS HAD ON THIS QUITE A BIT IS MAKE SURE THAT OVER THE LAST, YOU KNOW, IT'S 2019 PROTOCOLS, MAKE SURE THAT THE DRIFT HASN'T CREATED OTHER GAPS.
SO IT'S NOT JUST THE COMMINGLING OF THINGS AS WE DECOUPLE THINGS TO MAKE SURE THE LANGUAGE STICKS RIGHT AND COREY'S GONNA BE AROUND RIGHT FOR ALL THAT FUN.
SO SPECIFICALLY YOU'RE THINKING, I IMAGINED OF NPR 10 14, THAT WAS THE SINGLE MODEL FOR ESRS.
THOSE ARE REALLY THE TWO THAT ARE VERY INTERTWINED.
CLEARLY THAT'S GONNA HAVE TO PLAY IN A, A ROLE IN TERMS OF HOW WE APPROACH IT.
AND, AND CERTAINLY THAT WORK OF UNWINDING PROTOCOL WOULD BE QUITE A TASK IN ITS OWN RIGHT IF WE WANT TO TRY AND DO THAT.
SO I THINK THAT WILL BE PART OF THE UPDATES AND, AND WHY SOME OF THIS DISCUSSION ON SCOPE IS, IS SO IMPORTANT TO, TO START OFF TOO.
YOU WENT A LITTLE FAST FOR ME.
SO IF WE COULD GO BACK TO THE BEGINNING.
UM, YOU SAID THAT WHEN WORK STOPPED, YOU WERE ASSUMING RTC WOULD BE THREE AND A HALF YEARS TO IMPLEMENT IN ABOUT $51 MILLION.
AND SO PART OF THE PROCESS NOW IS UPDATING THE EXPECTED TIMELINE, RESOURCE PINCH POINTS, I THINK I HEARD YOU SAY AND COST.
AND THAT'S GONNA BE SOMETHING THAT YOU BRING BACK TO THE BOARD THIS JUNE? YES.
CAN YOU HELP US UNDERSTAND HOW THE PUCS MARKET DESIGN REDESIGN
[02:30:01]
DIRECTIVES INTERPLAY WITH THAT? OR IS THAT PART OF THE JUNE TIMING LEGISLATIVE SESSION? CAN, CAN YOU WALK THROUGH ANY OF THOSE ADDITIONAL, IS THAT MY TIMEUM, SO LET ME, CAN I TAKE THAT ON? IT'S, THE IMPACT ANALYSIS WILL BE THE FIRST THING BECAUSE THAT'LL GIVE THE COST AND DURATION THAT IS MEASUREMENT NUMBER ONE.
THIS IS THE, IF NOTHING ELSE IS GOING ON, HERE'S WHAT IT'LL TAKE TO DELIVER.
THE REALITY IS THERE ARE THINGS GOING ON AT THE COMMISSION, AND AS THAT WORK COMES OUT, THAT WILL HAVE TO BE PRIORITIZED WITH THE OTHER WORK.
UM, FORTUNATELY, DEPENDING ON WHAT PIECES OF THOSE, UH, PIECES ARE GOING, FOR EXAMPLE, PCM IS A VERY FINANCIALLY DRIVEN THING MUCH, THERE'S VERY LITTLE EMS AND MMS TYPE OVERLAP.
SO TWO BIG PROJECTS COULD GO ALONGSIDE WITHOUT THROWING EACH OTHER'S OFF THE TRACK.
BUT WE DON'T KNOW WHAT WE, WE DON'T KNOW WHAT WE DON'T KNOW YET.
AND SO WHAT WILL WE KNOW IN JUNE? WE'LL KNOW MORE, BUT WE MAY NOT KNOW EVERYTHING.
SO THERE'LL STILL BE SOME RISK WITH THIS.
AND I THINK THAT WE ALL JUST HAVE TO HOLD LOOSELY TO THE IDEA OF ERCOT IS GONNA COME BACK WITH WHAT IT TAKES, BUT THERE'S STILL RISK WITH THAT AND IT MAY HAVE TO BE ADJUSTED AS WE GO OVER TIME WITH THESE OTHER PROJECTS AND HOW THEY'RE SEQUENCED.
SO, KA I DON'T, DON'T KNOW IF YOU WANT TO ADD ANYTHING TO THAT, BUT I MEAN, I THINK YOU COVERED IT WELL.
UM, UH, I THINK THE JUNE DATE WAS, UM, NOT CHOSEN RELATIVE TO THE LEGISLATURE, BUT RELATIVE TO THE WORKLOAD ON COMPLETING EVERYTHING ELSE THAT, THAT WE'VE BEEN, UH, ASKED TO DO, UH, THAT'D BE THE ONLY ADDITION.
I THINK THAT WAS, I I DON'T KNOW IF WE ANSWERED THAT QUESTION OR NOT THAT THAT'S THE KEY POINT.
SO WHEN WE BROUGHT THIS UP, IT WAS PARKED HERE.
IT WAS NOT TIED TO LEDGE CLOSES, P C DECISION, ALL THIS, BUT IT WAS, WHAT WOULD IT TAKE TO LOOK AT A ROLLING START TO GET TO A POINT TO KNOW MORE INFORMATION SO IT CAN BE DECIDED QUICKLY.
IF WE WAIT FOR THE COMMISSION TO DECIDE EVERYTHING AND DON'T DO THIS WORK, THEN WE'RE NOT READY TO START.
IT WILL NEED THE SIX MONTH ANALYSIS TIME TO GET THERE.
BUT I THINK THAT, THAT WE'VE COVERED ALL OF YOUR QUESTIONS.
I THINK NOW IF I, YEAH, I THINK MY ONLY OTHER REMAINING QUESTION IS, DO YOU HAVE A BALLPARK OF WHETHER THE THREE AND A HALF YEARS 50 MILLION IS REMOTELY ACCURATE? YOU HAVE A MAGNITUDE, MATT, I'M GONNA PROBABLY NEED YOUR HELP, BUT I THINK THE THREE AND A HALF YEARS IS, IS STILL, UH, ACCURATE ON THE COST SIDE.
WE HAVE SOME CHALLENGES IN THAT THERE ACTUALLY ARE SOME SAVINGS AND PUSHING IT INTO THIS NEW WINDOW, BUT THERE'S ALSO INCREASES IN COSTS AS OUR LABOR RATES GO UP AND THINGS LIKE THAT.
SO TO THAT, WE JUST HAVE TO DO A PRETTY THOROUGH AN ANALYSIS TO GIVE YOU, UH, AN ACCURATE NUMBER ON THAT.
SO THERE'S MOVEMENT ON BOTH SIDES, IF THAT MAKES SENSE.
BUT THAT'S WHAT WE'LL SEE IN JUNE.
I'M SHARING A TRAJECTORY THAT WE'RE ON AND WHY WE'RE DOING WHAT WE'RE DOING.
COMMISSION WORK COMES FIRST RIGHT NOW.
AND THANK YOU, MATT, FOR THE, THE UPDATE.
UH, MY QUESTION, AND MAYBE I MISSED IT.
SO THERE'S, UH, $50 MILLION IN THE WALLET.
THAT MEANS WE'VE GOT THE MONEY, RIGHT? AND IT'S BEEN PUT IN A BUCKET AND IT'S NOT GOING TO GET TOUCHED.
UH, IT ONLY, UH, IS FOR RTC OR THAT COULD CHANGE, OR WE DON'T HAVE THE MONEY, WE JUST HAVE IT BOOKMARK.
I WASN'T CLEAR ON THAT, SO I'M NOT SURE I HEARD EVERYTHING.
BUT THE MONEY IS A LINE ITEM IN OUR BUDGET, AND IT IS A BUDGET ITEM THAT IS JUST THE SAME AS OTHER BUDGET ITEMS. SO THERE IS NO HIERARCHY TO IT OTHER THAN THE IDEA THAT DATA CENTER FIVE BUILD OUT X MILLION DOLLARS THAT IS RESERVED FOR THAT PIECE.
IT'S ANOTHER LINE ITEM IN THOSE, UH, PROJECTS AND OPERATING COSTS.
IT IS NOT A, A SPECIAL FUND, IT IS NOT A NOT UNTOUCHABLE FUND.
IT IS A FUND WITH ALL THE OTHER FUNDS.
AND SO WITH THAT IN MIND, WE'RE WORKING IT AS OUR PRIORITY.
SO IT'S REALLY THE PRIORITY FROM THE BOARD, THE P C AND THE STAKEHOLDERS THAT DRIVES THOSE PROJECT AND CONFIRMS IT.
AND ERCOT HAS DONE ITS DUE DILIGENCE TO PLAN FOR THE FUNDING OF THAT SO THAT WE CAN EXECUTE AS WE GET THERE.
Y YEAH, SO NO REAL CONCERNS THAT, UM, WELL, THERE'S ALWAYS A CONCERN THAT THE MONEY COULD GET USED FOR SOMETHING ELSE, BUT, BUT FOR THE MOST PART IT IS EVERYBODY'S UNDERSTANDING THAT IT IS CONTINUING TO BE PRIORITIZED BASED ON, WE'LL SEE WHAT THE COMMISSION AND THE LEGISLATURE DO, BUT AS OF YOU KNOW, NOW AND LIKELY IT WILL CONTINUE TO BE PRIORITIZED AND IT AND IT HAS THE BUDGET.
[02:35:01]
YEAH.AND THE OUTLINED BUDGET THAT OUR FINANCIAL GROUP CONTINUES TO FILE WITH THE COMMISSION DOES REFLECT THESE COSTS.
AND THEN, UH, ONE OTHER QUESTION I WAS GONNA ASK ABOUT, UM, HAVE YOU GUYS LOOKED INTO SUPPLY CHAIN ISSUES? HAS THAT BEEN SOMETHING THAT'S BEEN ON YOUR RADAR? BECAUSE I KNOW CERTAINLY THOSE HAVE GOTTEN EXACERBATED, AND THEN OF COURSE, UM, ALLEGEDLY I HEARD THE OTHER DAY THAT THEY'RE NOW EASING, BUT I I WASN'T SO, SO WE MAYBE MISSED THE WHOLE THING.
BUT WASN'T SURE, UM, IF YOU GUYS HAD THAT AS A MAJOR CONSIDERATION OR CONCERN.
THERE IS RAIN AIR CONDITIONING AND A QUIET MARK.
CAN YOU GO A LITTLE LOUDER? DID ANYONE ELSE PICK UP CAN SO I, I'M, YEAH.
SUPPLY CHAIN ISSUES SHE ASKED ABOUT, OH YEAH.
CAN, CAN YOU HEAR ME BETTER NOW? YES.
I I WAS JUST ASKING, UM, IF YOU GUYS HAD TAKEN TO ACCOUNT SUPPLY CHAIN ISSUES, UM, THAT, YOU KNOW, OF COURSE THEY HAVE WEIGHED INTO ALMOST EVERYTHING FOR MOST OF US.
AND SO I WASN'T SURE IF, IF THAT HAD ALREADY BEEN CONSIDERED OR IF YOU GUYS WOULD BE LOOKING AT THAT, UH, KIND OF STARTING AT YOUR REASSESSMENT.
YEAH, THAT WOULD CERTAINLY BE EVALUATED AS WE'RE DOING THE WORK AND PUTTING THE FEASIBILITY OF IT IN.
SO AGAIN, WE'LL MEASURE THE WORK AND LOOK AT THE FEASIBILITY.
I WILL SAY THAT HARDWARE ON THE GROUND, IT WOULDN'T BE NEEDED FOR ANOTHER YEAR AND A HALF.
UH, BETWEEN THE BUSINESS REQUIREMENTS, THE DESIGN AND THE VENDOR DEVELOPING CODE, THERE'S KIND OF A, A LONGER LEAD TIME BEFORE SUPPLY CHAIN, UM, KICKS IN.
BUT YES, THANK, THANKS FOR REMINDING US OF THAT.
WE DO HAVE AN AR INFRASTRUCTURE GROUP.
BRIAN HANLEY IS THE DIRECTOR OF THAT AND HE DOES MANAGE ALL THE HARDWARE COMING IN AND SO HE WOULD HAVE A CLEAR EYE ON THAT RISK.
AND I JUST WANTED TO, UM, GET SOME CLARIFICATION ON WHAT THE, UM, JUNE, UH, REPORT TO THE BOARD WAS GOING TO BE.
IS THAT JUST AN UPDATE ON THE TIMELINE AND THE EXPECTED COST OR ARE YOU ALSO, CAUSE I, I RECALL, YOU KNOW, TWO YEARS AGO WHEN, UM, WE, WE WERE, BEFORE WE WERE THE, THE PROJECT WAS PUT ON PAUSE, UM, THERE WERE SOME OPEN, UH, ITEMS THAT NEEDED TO BE TAKEN UP.
AND I'M SURE THERE ARE PROBABLY SOME REVISIONS THAT'LL NEED TO GO INTO, YOU KNOW, THINGS THAT HAVE, UH, COME UP IN THE LAST TWO YEARS THAT'LL, UH, NEED TO BE REVISIT.
ARE YOU HOPING TO HAVE ALL OF THOSE ITEMS CLOSED OUT BY JUNE? OR IS IT JUST THE TIME THE, ARE YOU REFERRING TO THOSE HANDFUL OF POLICY ISSUES AND MARKET TRIALS ISSUES? NOT TO VET THOSE OUT BEFORE THE BOARD HITS.
WE ALWAYS SAW THOSE AS BEING MORE PART OF THE DETAILS WITHIN THE PROGRAM THAT BE MANAGED STILL WITH THE STAKEHOLDERS, BUT WHAT WE'RE LOOKING TO TAKE TO THE BOARD IS THIS IS A LARGE STRATEGIC EFFORT.
THERE'S THIS TYPE OF COST, RESOURCE AND RISK TO IT.
DOES THE BOARD APPROVE US MOVING FORWARD ON THIS PROGRAM? GOT IT.
OKAY, MATT, SEE NO OTHER QUESTIONS AT THIS POINT, SO, OKAY.
ALL RIGHT, NEXT TWO REPORTS ARE DAVE'S.
WE GOT THE ANNUAL R REPORTING REQUIREMENT, AND THEN, UH, WE'LL JUST ROLL INTO THE FIRM FUEL SERVICE AFTER THAT.
ALL RIGHT, WELL THANK YOU ALL VERY MUCH FOR THE TIME THIS AFTERNOON.
SO I, I GUESS JUST I, I'D LIKE TO KICK IT OFF STARTING OFF WITH A REMINDER OF, UH, WHAT DRIVES THIS PARTICULAR PRESENTATION.
SO YOU ALL CAN SEE THE PROTOCOL REFERENCE HERE.
HOW ABOUT THERE IS A, A SECTION, UH, 5.8 OF THE PROTOCOL THAT HAD DEFINED A REPORT, UH, THAT WE COME AND SHARE WITH YOU ALL EACH JANUARY.
UH, AND REALLY THE REPORT IS PRIMARILY FOCUSED ON, UM, WHAT ARE SOME OF THE CAUSES OF THE RS WE'RE SEEING AS WELL AS SOME OF THE, THE SETTLEMENT OUTCOMES ASSOCIATED WITH IT.
UH, I GUESS AS WE GO THROUGH MATERIAL HERE, A LOT OF THE MATERIAL WILL SEEM, UH, AT LEAST FORMAT WISE, VERY SIMILAR TO WHAT WE SHARED IN PREVIOUS YEARS, INCLUDING SOME OF THE FEEDBACK THAT YOU ALL HAD SHARED AT THE PRESENTATION, UH, IN 2022.
SO TO START OUT, ONE OF THE THINGS THAT WE'D LIKE TO SHARE IS JUST A, A BREAKOUT OF THE TOTAL QUANTITIES OF RUCKS THAT WE SAW FOR THE YEAR 2022, UH, AND HOW WE BREAK THAT OUT.
WE LOOK AT BOTH WHAT, UM, OF THOSE RUCK INSTRUCTIONS WERE OPTED OUT OF VERSUS WHAT WERE NOT OPTED OUT OF.
SO THAT'S THE OPTOUT OF R SETTLEMENT THAT, UH, EXISTS WITHIN PROTOCOLS THAT, UH, HAS DIFFERENT TREATMENT FOR IT.
AND THE OTHER WAY WE ALSO BREAK OUT IS DISTINGUISHING BETWEEN INSTRUCTED R HOURS AND EFFECTIVE RESOURCE HOURS.
AND THE EFFECTIVE RESOURCE HOURS WILL BE THE TERM THAT ALL MORE CONSISTENTLY USE THROUGH OUT THE PRESENTATION.
UH, FOR THOSE WHO ARE, UH, UNFAMILIAR, THE EFFECTIVE RESOURCE HOURS JUST REFLECT THE ACTUAL HOURS THAT THE RESOURCE WAS PHYSICALLY ONLINE.
UH, TO SOME DEGREE THERE'S THAT VALUE IS USUALLY SOMETHING LESS THAN THE INSTRUCTED HOURS DUE TO JUST DELAYS OR FORCE OUTAGES OR THINGS LIKE THAT, THAT THE, THE RESOURCES MAY FACE.
UH, ON THE BOTTOM PART OF THE GRAPH HERE, IN ADDITION TO COUNTS OF WHAT WE SAW IN TERMS OF
[02:40:01]
RS FOR, UH, 2022 IN TERMS OF HOURS, WE ALSO HAVE SOME AVERAGE MEGAWATT QUANTITIES.UM, YOU CAN SEE THAT THEY'RE FAIRLY SIMILAR IN TERMS OF THE LSL AND HSL FOR BOTH THE OPT-OUT AND NON OPTOUT UH, RESOURCES.
I GUESS THE ONE AREA YOU'LL SEE SOME DISTINCTION IS FOR OPTOUT RESOURCES.
THE AVERAGE BASE POINT, THE LDL IS HIGHER.
AND, AND THIS REALLY MAKES SENSE, OF COURSE, THE, THE OFFER FLOOR IS NOT APPLICABLE TO THOSE RESOURCES.
AND SO YOU WOULD GENERALLY EXPECT FOR THOSE RESOURCES BE DISPATCHED TO, TO HIGHER LEVELS.
AND AS THAT BASE POINT INCREASES, YOU'D NATURALLY WOULD ALSO PULL UP THAT LOWER DISPATCH LIMIT JUST BASED ON THE RAMP RATES OF THE, THE RESOURCES THAT ARE BEING COMMITTED.
UH, GETTING INTO THE, THE BREAKOUT OF REASONS, UH, I THINK THIS IS PROBABLY SOMEWHAT SIMILAR TO WHAT WE HAD SHARED LAST YEAR.
UH, THERE ARE ABOUT 7,900, UH, MEGAWATT, I'M SORRY, 7,900 R RESOURCE HOURS IN 2022.
UH, 13% OF THOSE WERE FOR LOCAL ISSUES, PRIMARILY THERMAL CONGESTION.
UH, ALTHOUGH I THINK THERE WAS AT LEAST A COUPLE OF CASES IN WHICH THERE WAS A LOCAL VOLTAGE CONCERN THAT THE RESOURCE ALSO WAS ABLE TO HELP WITH.
UH, AND THE REMAINING, UH, 80 PERC, 87% OF ALL THOSE HOURS WERE ASSOCIATED WITH, UH, THE REASON BEING LISTED AS A, A CAPACITY CONCERN.
UH, IN TERMS OF THE OTHER REASONS THAT ARE LISTED AS PART OF THE PROTOCOL REQUIREMENT, UH, THERE WERE NO RS FOR ANY OF THO THOSE OTHER CATEGORIES, UH, IN TERMS OF OPT-OUT, KIND OF BROKE THAT AL ALREADY OUT ON THE PREVIOUS SLIDE, BUT, UH, ABOUT ONE FIFTH OF THE RUCKS WERE OPTED OUT OF, UH, IN THE YEAR 2022.
UH, THIS IS A, A LITTLE LOWER THAN WHAT WE SAW IN 2021, WHERE THE, THE VALUE WAS, UH, 31%.
UH, MAYBE JUST A, A KEY THING TO, TO NOTE FOR FOLKS WHO ARE LOOKING AT THESE VALUES AS PART OF THIS CALCULATION, UH, WE INCLUDE ANY RESOURCES THAT WERE COMMITTED IN THE DAY AHEAD MARKET.
UH, BY DEFAULT THESE RESOURCES ARE TREATED AS IF THEY WERE OPTED OUT, SO WE JUST SORT PUT THEM IN DIRECTLY INTO THAT, THAT CATEGORY.
SO THIS IS THE, I GUESS THE SHAPE AGAIN.
UH, I MENTIONED LOOKING AT THE, UH, I GUESS WE PUT RUCK INSTRUCTIVE EFFECTIVE RESOURCE HOURS.
THIS IS REALLY THE, SUPPOSED TO BE THE R EFFECTIVE RESOURCE HOURS THAT WE'RE LOOKING AT ACROSS THE, THE MONTHS OF THE YEAR.
UM, I GUESS, YOU KNOW, NOT ONLY LOOKING AT 2022, BUT HISTORICALLY WE HAVE SHARED A LITTLE BIT MORE HISTORY HERE.
SO THIS IS ACTUALLY LOOKING AT THE LAST FOUR YEARS, I WOULD SAY.
I THINK THE, THE KEY PATTERN TO LOOK AT WITHIN 2022 IS BROADLY WE SAW AN INCREASE IN, UH, ROUGH COMMITMENTS AS WE ARE GOING THROUGH THE SUMMER WITH REALLY HITTING THAT MAXIMUM AMOUNT IN SEPTEMBER OF THE YEAR.
UH, I GUESS THE OTHER MONTH THAT STOOD OUT TO ME AS I WAS LOOKING THROUGH THE MATERIAL WAS, WAS FEBRUARY, UH, NOT QUITE THE SECOND HIGHEST, BUT DID NOT NECESSARILY FOLLOW THAT, THAT SAME PATTERN, UH, IN TERMS OF JUST SORT OF WHAT WE SAW IN SOME OF THOSE MONTHS.
IN THE CASE OF SEPTEMBER, REALLY THOSE RUCKS WERE, WERE FAIRLY SPREAD ACROSS THE DAYS WITHIN THE MONTH.
THERE WASN'T NECESSARILY A SPECIFIC PATTERN OR SPECIFIC DAYS THAT THAT STOOD OUT AS MUCH.
UH, THAT WAS NOT THE CASE FOR FEBRUARY, WHERE THERE WAS PARTICULARLY A COUPLE OF PERIODS, UH, BOTH AT THE VERY BEGINNING OF THE MONTH AND TOWARDS THE END OF THE MONTH WHERE WE SAW, UH, SOME COLDER WEATHER.
AND SO REALLY THE, THE RS WITHIN, WITHIN FEBRUARY OF 2022, WERE REALLY CENTERED AROUND THOSE TWO, UH, PARTICULAR CLUSTERS OF DAYS.
AND I'LL, UH, I'LL PAUSE HERE TO TAKE SOME QUESTIONS THIS SEASON.
I'LL START WITH BILL AND GO TO SETH.
CAN YOU REMIND US HOW THAT HAPPENS? AGAIN, HOW A DAMN COMMITTED RESOURCE GETS A RECONSTRUCTION? IS IT JUST A TIMING THING? UH, IT'S NOT NECESSARILY A TIMING THING.
SO THESE, UH, I GUESS THE, WHEN A RESOURCE IS DAM COMMITTED, THEY'RE, THEY'RE NOT NECESSARILY AN OBLIGATION TO THE, FOR THEM TO START.
THEY, THEY DON'T NECESSARILY HAVE TO DO THAT.
UM, BUT IF THEY DO RUN THERE IS EFFECTIVELY MA TREATMENT THROUGH THE DAM MA THAT ALREADY EXISTS.
AND SO TO DEGREE, THEY SHOW OFFLINE AND THE OPERATORS DECIDE THEY NEED THEM AND GIVE THEM A R BECAUSE THAT DAM SETTLEMENT IS ALREADY OCCURRING.
WE WANT TO ENSURE THEY CAN'T GET, UH, SETTLED THROUGH THE ROCK.
SO BE IT THE CASE WHEN A DAM COMMITTED RESOURCE ACTUALLY UPDATES THEIR COP TO OFF, THEY'RE NOT, THEY'RE NOT GONNA FOLLOW THEIR NAME.
AND JUST WITH THE TIMING OF THE COMMITMENTS, YOU KNOW, I THINK THAT THE, THERE WOULD'VE BEEN SUFFICIENT TIMING FOR, YOU KNOW, THE RESOURCES TO UPDATE THEIR COPS AND ALL THOSE TYPE OF THINGS.
IT WASN'T THE TIMING CONCERN FROM THAT POINT OF VIEW.
BACK ON THE SLIDE, YOU RIGHT BEFORE WHERE YOU SHOWED THE TIME SERIES OF ALL THE ROCKS, UM, I, I THINK I KNOW THE ANSWER TO THIS, BUT I'M JUST SEEKING FOR CONFIRMATION.
MOST OF THIS IS DUE TO ROCK FOUR SYSTEM CAPACITY, RIGHT? UH, DID, DID YOU SEE ROCK FIRST FOR, UH, LOCAL VIOLATIONS INCREASE AS WELL? OR CAN YOU GIMME A FLAVOR OF THAT? SO THAT WAS THE PREVIOUS SLIDE.
SO 87% OF THEM WERE FOR CAPACITY.
UM, I GUESS I DON'T HAVE NECESSARILY BREAKOUT BY MONTH, BUT WE STILL DID SEE 13% OF, UH, THE, THE, THE RS FOR LOCAL ISSUES.
I, I WILL SAY THAT HAS SOMETHING THAT OF COURSE HAS CHANGED WITH CONSERVED OPERATION.
HISTORICALLY, UH, WHEN WE HAD FEWER RS, THEY WERE, I WOULD SAY THE MAJORITY TENDED TO BE FOR MORE LOCALIZED ISSUES, BUT WITH
[02:45:01]
THE LAST TWO YEARS, AND, AND I DIDN'T HAVE THE SPECIFIC NUMBERS FROM LAST YEAR WITH ME, BUT I, I THINK WE SAW LAST YEAR AS WELL WHERE SOMETHING SIMILAR WHERE THE PATTERN WAS NOW THAT THE MAJORITY ARE FOR CAPACITY CONCERNS.DO YOU KNOW IF THE RUCKS FOR CONGESTION ARE INCREASING AS WELL? IF THAT WAS BROKEN OUT ON A TIME SERIES FROM PRE AND POST WINTER STORM U? YOU KNOW, I DON'T HAVE A GOOD FEEL FOR THAT.
LET ME, LET ME GO BACK AND TAKE A LOOK AT THAT.
I GUESS CERTAINLY THE, THERE BEING 13, WELL JUST EVEN KIND OF REMEMBERING SOME OF THE NUMBERS THAT WE WOULD SEE BEFORE, UM, YOU KNOW, I THINK IN SOME OF THE PREVIOUS LOOKING AT THE THOUSAND RESOURCE HOURS, THAT PROBABLY IS SLIGHTLY HIGHER THAN WHAT WE HAD SEEN BACK IN 20 19, 20 20.
UM, BUT I, I GUESS ONE OF THE THINGS THAT SORT OF NOTE TOO IS SOMETIMES THESE RISKS CAN BE FOR MULTIPLE REASONS.
SO OF COURSE ANY RESOURCE THAT HELPS CONGESTION NATURALLY ALSO HELPS CAPACITY.
SO IT IS A LITTLE HARD TO, WE, WE TRY AND CARVE IT OUT TO BE SORT OF THESE VERY TWO DISTINCT CATEGORIES, BUT IT DOESN'T NECESSARILY FIT NATURALLY.
SO, UM, THAT MAY BE PART OF THAT WHY YOU SEE A LITTLE BIT OF THAT PATTERN.
AND PERHAPS I'LL JUST MAKE A NOTE, PERHAPS A GRAPH OF SOMETHING THAT LOOKS LIKE THIS WITH, UH, THE BREAKOUT BY REASON, UH, MAY BE HELPFUL TO, TO SHARE IN THE FUTURE.
ALL RIGHT, JEREMY, APOLOGIES, YOU'VE ALREADY COVERED THIS.
CAN YOU DEFINE RESOURCE HOURS ONE MORE TIME? SURE.
SO THE, THE, THE TERM, AND I APOLOGIZE, WE KIND OF USE BOTH TERMS IN THIS PARTICULAR SLIDE, SPECIFICALLY THE TERM EFFECTIVE RESOURCE HOURS.
THE DISTINCTION THERE IS, YOU KNOW, WHEN A RESOURCE IS INSTRUCTED BE ONLINE FOR LET'S SAY FIVE HOURS, WE'LL OFTEN SEE CASES AND WELL NOT OFTEN SEE CASES, BUT THERE'S CAN BE CASES IN WHICH THE RESOURCE RUNS SOMETHING SLIGHTLY LESS THAN THAT.
SO JUST BASED ON THE TIMING OF THE RESOURCE COMING ONLINE, MAYBE IT ACTUALLY WAS ONLY ONLINE FOR SEVEN AND THREE QUARTER HOURS.
AND SO BECAUSE WE FOCUSED THIS PRESENTATION PRIMARILY ON HOW THESE RUCKS ARE IMPACTING, UH, THE MARKET, WE WANTED TO SPECIFICALLY FOCUS ON INTERVALS THAT THEY'RE ONLINE, EVEN IF THE INSTRUCTION WAS SOMETHING LARGER.
SO THAT, SO THAT'S WHY WE MAKE THAT DISTINCTION.
BUT AS FAR AS JUST RESOURCE HOURS, IT'S AS SIMPLE AS PER RESOURCE PER PER HOUR.
SO REGARDLESS IF IT'S A 10 MEGAWATT RESOURCE OR A THOUSAND MEGAWATT RESOURCE, IT COUNTS.
ACTUALLY, IN THE NEXT SLIDE, I DO HAVE, UH, SOME WAITING THAT WE DID BY MEGAWATTS.
BUT IT'S, IT'S EXACTLY KIND HOW YOU DESCRIBED.
SO IF TWO, IF TWO RESOURCES WERE COMMITTED WITH THE SAME HOUR, THAT COUNTS AS TWO, UH, AND SO ON AND SO FORTH.
SO I GUESS JUMPING TO THE NEXT SLIDE, THIS IS THE SAME DATA.
UH, THE DISTINCTION HERE IS THAT WE'RE DOING A MEGAWATT HOUR, UH, WAITING.
UH, WE HAVE ON THE TOP LOOKING AT THE MEGAWATT USING A BASE POINT WAITING, AND ON THE BOTTOM WE HAVE A MEGAWATT VALUES USING AN HSL WAITING.
SO AGAIN, THE, THE, THE Y AXIS IN BOTH THESE CASES ARE THE SAME, UH, I GUESS, UH, HIGH AND LOW ON THE AXIS.
SO YOU CAN KIND OF SEE SOME OF THE SCALING THERE.
AND WITH THE BASE POINT BEING LOWER AND THEY'RE BOTH IN MEGAWATT HOURS USING THOSE, THOSE TWO DIFFERENT VALUES IN, IN PLACE OF THE MEGAWATT VALUE.
UM, I GUESS LARGELY FROM THE HSL POINT OF VIEW, YOU SEE A A, A REALLY SIMILAR PATTERN.
YOU PROBABLY CAN'T REALLY MAKE MUCH OF A DISTINCTION BETWEEN THE PREVIOUS SLIDE, UH, ON THE BASE POINT, THE, THE PATTERN'S A LITTLE BIT, THE MORE, MORE OR LESS THE SAME.
I THINK JUST THE, YOU DO SEE SOME MONTHS, AND I'LL TALK ABOUT THAT IN A COUPLE OF SLIDES WHERE YOU SEE MAYBE MORE CASES OF RESOURCES BEING DISPATCHED ABOVE THEIR LDL.
AND SO YOU'LL, UM, YOU'LL SEE SOME EXAMPLES OF THAT AND THE PARENT ISN'T EXACTLY EQUAL TO, UH, WHAT YOU SEE WITH BOTH THE HSL AND THE RESOURCE HOUR CALCULATION.
UH, THE NEXT SLIDE, ACTUALLY, THE NEXT TWO SLIDES KIND OF COVER A TOPIC.
I, I MENTIONED THERE WAS SOME THINGS ASKED THE LAST YEAR, UM, CANON, I'M SORRY, DO YOU WANT NO, I, I I JUST WANTED TO, THERE WERE 220.1, UH, R HOURS FOR LOCAL THERMAL CONGESTION OR VOLTAGE CONCERNS AND THE, UH, FOR 2020 220.1 RESOURCE HOURS.
SO IT SEEMS LIKE IT'S ABOUT THE, I I CAN'T REMEMBER WHAT YOU HAD IN THIS PRESENTATION.
SO I THINK JOHN, YOU'RE, YOU'RE REFERENCING THE, THE AMOUNT OF EFFECTIVE RESOURCE HOURS FOR LOCAL CONGESTION IN 2020.
YOU SAID IT WAS 200 AND SOME HOURS.
SO THE NUMBER THAT WE HAD FOR 2022 WAS A THOUSAND.
SO THERE IS AN INCREASE THERE AS WELL, AT LEAST AS COMPARED TO 2020, BUT SURE.
WE HAVE A QUESTION IN THE QUEUE TOO.
HEY DAVE, UH, CAN YOU MOVE TO THAT PAGE NUMBER FIVE? SLIDE FIVE? SLIDE FIVE? YES.
YEAH, I SEE THAT FOR THE MONTH OF NOVEMBER.
I KNOW THAT IS NOT A GOAL, NEITHER A HOT MONTH FOR THE NOVEMBER, BUT STILL I SEE THE ROCK IS STILL HIGHER.
[02:50:01]
TO KNOW WHAT IS THE REASON FOR THAT? UH, I GUESS I DON'T HAVE A SPECIFIC REASON FOR NOVEMBER, IF I REMEMBER THAT MONTH.UM, I GUESS SIMILAR TO WHAT I MENTIONED FOR SEPTEMBER, THERE WAS NOT A SPECIFIC DAY TO KIND OF CARVE OUT.
IT WAS, UM, MORE SPREAD OUT ACROSS THE MONTH.
NOW OF COURSE IN OC I GUESS TO SOME DEGREE IN OCTOBER AND NOVEMBER, UH, WOULD, YOU WOULD TEND TO SEE MORE OUTAGE AND THINGS LIKE THAT.
SO EVEN THOUGH THE LOAD IS LESS, YOU MAY JUST SORT OF GENERALLY SEE LESS CAPACITY.
BUT I GUESS I DON'T HAVE A, A SPECIFIC REASON TO SHARE WITH YOU TODAY AND WHAT WAS DRIVING NOVEMBER.
DID YOU HAVE A COMMENT, STEVE REEDY, OR WERE YOU JUST SHARING THE R RESOURCE HOURS FOR 19 AND 20? I WAS JUST SHARING THE RUCK RESOURCE HOURS.
ONE OF THOSE THINGS I COULD DO MORE EASILY WHEN WE WERE DOING THESE, UH, DOING THESE PRESENTATIONS REMOTE.
SO THERE WAS A COUPLE OF THINGS I, I MENTIONED THERE WAS SOME FEEDBACK WE HAD GOTTEN LAST YEAR, SO WE CAN GET INCLUDED THAT MATERIAL.
I THINK IN FACT, UM, WE HAD POSTED THIS AS AN UPDATE FOR THE RS OF 2021, BUT THE GRAPH HERE IS LOOKING AT ON A MONTH BY MONTH BASIS, WHAT WAS THE AVERAGE AGE OF, UH, THE RESOURCE BEING, UH, COMMITTED, SORT OF WEIGHTED BASED ON EFFECTIVE RESOURCE HOURS.
UH, AND THIS BREAKS IT OUT BY OPTOUT VERSUS, UH, THE NON OPTOUT RESOURCES.
UH, AND EFFECTIVELY IT SEEMS LIKE IT'S FAIRLY CONSISTENT SINCE THE MOVE TO CONSERVATIVE OPERATION, UH, BACK IN JUNE AND JULY OF LAST YEAR, WHERE, YOU KNOW, REALLY IN THAT RANGE OF, OF PROBABLY RIGHT AROUND 50 IS KIND OF THAT, THAT EQUILIBRIUM THAT YOU SEE.
UH, YOU DO SEE VALUES REALLY BETWEEN 40 AND 60, BUT IT, IT HOLDS PRETTY STEADY WITHIN THAT RANGE OF AVERAGE RANGE OF, OF 40 AND 60 YEARS OLD.
UH, AND THEN I'LL JUMP TO ANOTHER SLIDE OR NEXT SLIDE HERE.
UH, THIS IS JUST ANOTHER WAY OF LOOKING AT THE SAME INFORMATION RELATED TO THE, UM, THE AGE OF THE UNITS GETTING WRECKED.
I BELIEVE ON THE, THE BREAKOUT HERE ON THE TOP IS LOOKING AT THE NON OPTOUT RESOURCES AND THE BOTTOM IS LOOKING AT OPTOUT.
AND INSTEAD OF JUST DOING A, UH, CALCULATION OF AVERAGE OF THE AGE, WE DID A BREAKOUT BY RESOURCE HOURS IN INTO VARIOUS SORT OF AGE CATEGORIES.
SO, UH, WITH THE SORT OF 10 YEAR WIDTHS, AND I GUESS IN ALIGNMENT WITH WHAT I SHARED ON THE PREVIOUS SLIDE WHERE YOU DO SEE SORT OF THE, THE LARGEST, UH, FOLKS FALLING INTO IS THAT 50 TO 60, THAT'S THE, THE YELLOW LINE THERE, THE YELLOW PART OF THE, OF THE COLUMN THERE.
SO, UH, PARTICULARLY FOR THE, UH, NON-OP OUT RESOURCE HOURS, YOU DO SEE THAT SORT OF THE, THE DOMINANT BLOCK, UH, WITHIN, UH, THE TOTAL SET OF RESOURCES.
AND THAT'S PROBABLY FOLLOWED SECONDLY, UH, BY THAT 40 TO 50, UH, YEAR RANGE, AGAIN, ALIGNING WITH THE AVERAGE DATA ON THE PREVIOUS SLIDE.
GOT A QUESTION FROM DAVID KEY OVER HERE.
UM, I THINK THIS, EXCUSE ME, I THINK THIS SLIDE PROBABLY, UH, SPEAKS TO ME MORE THAN THE PREVIOUS ONE.
I THINK, LIKE YOU SAID, IT IS THE SAME INFORMATION, BUT IT'S REALLY SHOWING THAT WE HAVE A GIANT INCREASE IN RUCKING, SOME REALLY OLD GENERATORS.
UM, IT'S CAUSING SOME CONCERNS IN MY SHOP, AND WE'RE THINKING ABOUT WHAT WE'RE DOING TO THESE GENERATORS AS WE RUCK THEM.
WE'RE BASICALLY RUNNING THEM INTO THE GROUND IT FEELS LIKE.
UM, SO I, I'LL JUST TAKE THIS OPPORTUNITY TO STEP ON THIS O BOX FOR THE, UH, MARKET BASED SOLUTION TO FIX RS.
I KNOW THAT THAT'S BEEN A LITTLE CONTROVERSIAL LATELY, BUT I THINK THERE ARE SOME SUPPORT HERE AND, UM, WOULD SUPPORT ANY EFFORTS TO DISCUSS THAT AND WORK ON, ON SOMETHING LIKE THAT BECAUSE, UM, AS RESOURCE ACCURACY GOES, THE MORE YOU LEAN ON THESE GENERATORS AND BRING 'EM ONLINE FOR RELIABILITY REASONS, YOU'RE GONNA FIND THAT YOU'RE GOING TO HAVE SOME THAT ARE GONNA BREAK AND NEVER COME BACK.
AND SO THAT'S CONCERNING THAT WE CAN, UM, BE RISKING GENERATORS GENERATOR AVAILABILITY IN THE FUTURE FOR WHAT WE NEED FOR NOW.
SO I THINK WE'RE GONNA FIGURE OUT A BETTER, BETTER BALANCE FOR THAT.
AND, UM, PRO I MEAN, SUPPORTING THINGS THAT ARE MORE, MORE MARKET BASED AND USING THE RUG PROCESS.
AND I GUESS, YOU KNOW, I WAS GONNA MENTION MORE TOWARD THE END, OBVIOUSLY IT IS THINGS THAT WE CONTINUE TO THINK ABOUT.
UH, YOU KNOW, IT IS OUR DESIRE TO TRY TO FIND WAYS TO REDUCE THE NUMBER OF BUCKS.
I KNOW WE, COMING UP WITH A SOLUTION ISN'T EASY, BUT IT IT IS ON OUR MIND AS WELL.
GOT A QUESTION FROM CARRIE REAL QUICK.
SO WHERE DOES THAT ISSUE THAT DAVID DESCRIBED RESIDE? IS THIS WITH THE BOARD THE IDEA OF REDUCING, YOU KNOW, A HOLISTIC APPROACH TO REDUCING ROCKS? I, I CAN.
UM, SO, UH, I MEAN WE'VE DISCUSSED THE ISSUE WITH THE BOARD.
IT RESIDES, UH, IN A, IN A, IN A COMBINATION OF PLACES, WHICH IS
[02:55:01]
A COMBINATION OF, UM, WHAT IS THE, WITH THE COMMISSION AND KIND OF THE LONG TERM SOLUTION THAT THEY'RE LOOKING FOR IN TERMS OF REVENUE ADEQUACY.UM, IT IS ALSO, UH, RESIDES WITH THE CONSERVATIVE OPERATIONS, UH, OF ERCOT, AND THAT IS EXPECTED TO CONTINUE.
UM, BUT, UH, I THINK WE WILL BE LOOKING AT ARE THERE MODIFICATIONS, ENHANCEMENTS THAT CAN BE DONE THERE.
AND LASTLY, UM, I DO THINK BASED ON, UH, KINDA WHAT THE IMM FILED, WHAT WHAT YOU FILED CARRIE, UM, THERE IS, UH, POTENTIAL BETTER APPROACH TO, UM, UH, PROCURING, UH, COVERAGE FOR THE UNCERTAINTY THAT, THAT WE ARE DEALING WITH.
SO I, I THINK THAT'S GONNA, THOSE THINGS ARE ALL GONNA OPERATE, UH, KIND OF IN COMBINATION, BUT PRIORITIES AND, AND THOSE TYPES OF THINGS ARE YET TO BE ESTABLISHED FOR THAT.
UM, BUT, BUT I, I THINK WE HAVE TO THINK ABOUT ALL, ALL OF THOSE THINGS IN SOME KIND OF COMBINATION.
NICK, YOU GOT CARTER? YOU READY? YEAH.
UH, AND I'M NOT SURE THIS QUESTION COULD BE ANSWERED OR NOT, BUT WE KNOW SINCE URI THAT ERCOT HAS HAD THIS NEW CONSERVATIVE APPROACH, AND WE ALSO KNOW THAT ROCK HOURS ARE WAY UP.
BUT IS THERE ANY WAY THROUGH BACKCAST TO DETERMINE IF ERCOT HADN'T MOVED TO THE CONSERVATIVE APPROACH, WOULD RAU STILL BE UP? SOMEWHAT WHAT I'M TRYING TO SAY, IS THERE ANY WAY TO DETERMINE WHETHER THERE ARE OTHER MARKET CONDITIONS OTHER THAN JUST THE CONSERVATIVE APPROACH THAT ARE DRIVING THIS? OR IS THERE SOMETHING ELSE? AND I REALIZE THAT THE CONSERVATIVE OPERATIONS IS PROBABLY THE MAJORITY OF IT, BUT I'M JUST CURIOUS WHETHER OR NOT THERE'S R WOULD'VE INCREASED ANYWAY DUE TO OTHER MARKET CONDITIONS AND THE AGE OF THE FLEET AND EVERYTHING ELSE GOING ON.
UM, SO THAT, THAT'S A FAIR QUESTION.
UH, WE HAVEN'T DONE A BACK CAST.
THE FIRST CUT I WOULD MAKE IS FOCUSED ON THAT QUESTION THAT SETH ASKED, UM, AROUND THE, DID THE LOCAL GO UP ALSO, BECAUSE USUALLY THAT IS SOMETHING THAT, THAT WE HAVE TO MANAGE ANYWAY, AND THAT THAT'S GONE, THAT'S GONE UP.
ALSO, I WOULD, UM, JUST CAUTION, YOU KNOW, SO THAT, THAT'D BE A PRELIMINARY CHECK I, I WOULD THROW OUT THERE, BUT I WOULD CAUTION THAT USUALLY WHEN I RUCK FOR LOCAL, IT HAS SOME SYSTEMWIDE BENEFITS.
AND WHEN I RUCK FOR, FOR SYSTEM WIDE, IT HAS LOCAL BENEFITS.
SO UNRAVELING ALL OF THAT IS A LITTLE DIFFICULT.
UM, BUT, UH, I, I WOULD JUST SAY THAT, UM, THE LOCAL HOURS ARE SOMETHING THAT, UM, WE, WE DON'T GET AROUND, UH, IN, IN SOME OTHER WAY.
WELL, WITH THE LOCAL HOURS GOING UP BY A FACTOR OF FIVE, IT SORT OF MAKES YOU WONDER WHETHER OR NOT CAPACITY WOULD'VE GONE UP ALSO, EVEN IF WE WEREN'T DOING THE CONSERVATIVE.
THAT'S SORT OF THE REASON FOR THE QUESTION.
YOU KNOW, WE GO FROM 200 HOURS TO OVER A THOUSAND HOURS FOR LOCAL, THAT'S SIGNIFICANT IS A PERCENTAGE, BUT EVEN THOUGH IT MAY NOT BE A HUGE NUMBER JUST DUE TO THE NATURE
WELL, THE ONLY THING I WOULD SAY IS, UM, I THINK, UH, THERE WERE ENOUGH LOCAL ISSUES THAT THERE MAY HAVE BEEN, UH, UPTICK IN, IN ROCK FOR, FOR THIS YEAR, BUT I, I'M NOT, I I'M NOT SURE IT'S FIVE X.
LIKE I SAID, WHEN, WHEN WE, WE PULL THAT FROM THE LOGS AND THERE'S SOME, UH, SOME, UH, YOU KNOW, UH, MIXING OF WHAT THE CAUSE IS.
DAVE, DO YOU WANT TO ADD ANYTHING TO THAT? UH, I THINK YOU'RE, YOU'RE RIGHT.
I MEAN, I THINK EVEN BACK, I KNOW, UH, MAY OF LAST YEAR STANDS OUT WHERE I THINK WE HAD REALLY SIGNIFICANT CONGESTION, UH, IN A WAY THAT WAS, UH, UNUSUAL FROM WHAT WE HAD SEEN HISTORICALLY.
SO I THINK THAT WOULD BE PART OF IT.
I THINK ONE THING TO NOTE TOO, TO SOME DEGREE WITH THE ADDITIONAL ANSWER SERVICE PROCUREMENT, DOES THAT
[03:00:01]
MEAN WE HAVE LESS CAPACITY TO HELP RESOLVE SOME OF THE LOCAL ISSUES AS WELL? SO YOU, I THINK THAT MAY KIND OF TIE INTO SORT OF THE INTERPLAY BETWEEN ALL OF THOSE.THAT'S WHY YOU NEED REALTIME CO-OP OPTIMIZATION.
SO I GUESS THE NEXT SLIDE HERE IS JUST LOOKING AT THE DISPATCH OF THE RESOURCES SPECIFICALLY FOCUSED ON, UH, IN THE CASES OF HOURS, UM, WHERE THE RESOURCE WAS NOT OPTED OUT, UH, WHEN WERE THEY BEING, UH, DISPATCHED ABOVE LDL AND WHAT WAS DRIVING THAT? SO WE HAD 281 RESOURCE HOURS WHEN THE RESOURCE WAS DISPATCHED ABOVE ITS LDL.
UH, AROUND 60 OF THOSE WERE ASSOCIATED, UH, WITH, UH, THE CONDITION WHICH THE LMP WAS GREATER THAN THE, UH, OFFER FLOOR.
AGAIN, I GUESS AS A REMINDER, THE OFFER FLOOR DID, DID CHANGE AROUND, UH, MIDDLE OF MAY, IF I REMEMBER THIS YEAR.
UM, WHAT WE DID SEE HERE IS THE, STILL THE MAJORITY OF THE COMMIT, OR I'M SORRY, THE DISPATCH ABOVE LDL IS, UH, LINKED TO CASES IN WHICH THE RESOURCE WAS MITIGATED.
AND THAT WAS REALLY, I GUESS, UH, AROUND 215 OR SO OF THE 281.
SO THAT CONTINUES TO SORT OF BE THE DRIVER OF CONDITIONS UNDER WHICH WE SEE, UH, THESE RESOURCES BEING DISPATCHED ABOVE LDL.
UH, WANTED TO TALK JUST A LITTLE BIT ABOUT THE RELIABILITY DEPLOYMENT PRICE ADDER.
UH, SO WE HAVE TWO GRAPHS HERE ON THE TOP LEFT.
WHAT WE'RE LOOKING AT IS THE NUMBER OF HOURS IN WHICH THE R DPA, THE RELIABILITY POINT PRICE ADDER WAS TRIGGERED.
UH, AS YOU MIGHT EXPECT, THIS, UH, GRAPHIC REALLY FOLLOWS THE MORE OR LESS THE, THE PATTERN THAT WE WERE TALKING ABOUT OR SHOWING ON SOME OF THE PREVIOUS SLIDES.
UH, ON THE BOTTOM LEFT, WHAT WE WERE LOOKING AT IS THE AVERAGE R D P A, WHAT WAS THE ACTUAL I AVERAGE PRICE ADDER ITSELF, UH, FOR THE HOURS IN WHICH, UH, THE, THE, THE PRICING AROUND WAS TRIGGERED? I GUESS THERE ARE TWO MONTHS THAT SORT OF STAND OUT, SPECIFICALLY FEBRUARY AND JULY.
UH, IN THE CASE OF FEBRUARY, IT WAS PRIMARILY FEBRUARY 24TH.
THAT WAS REALLY DRIVING, UH, THE MAJORITY OF, UH, THAT AVERAGE FOR THE PARTICULAR MONTH.
UH, THIS WAS ONE OF THE DAYS, AS I MENTIONED, WE HAD SORT OF THE TWO CLUSTERS OF DAYS WITHIN FEBRUARY.
THAT WAS WHERE WE SAW MOST OF THE ROUGH ACTIVITY IN FEBRUARY 24TH WAS, UH, AROUND ONE OF THOSE CLUSTERS.
UH, AND FOR THE CASE OF JULY, THE, THE PRIMARY DAY WHERE YOU SAW VERY HIGH ADDERS WAS, UH, DRIVEN BY, UH, JULY 13TH.
SO THAT WAS JUST ONE OF THE DAYS.
WE GENERALLY SAW HIGHER PRICES, UH, THIS PAST SUMMER AND, UH, SOME RUX UH, DURING THAT TIMEFRAME AS WELL.
UH, TO MOVING ON TO THE, THE SETTLEMENTS ANALYSIS.
SO WE HAVE, UH, THREE DIFFERENT GRAPHICS HERE ON THE TOP.
WE'RE LOOKING AT THE TOTAL CLAWBACK CHARGES ACROSS THE INDIVIDUAL MONTHS.
AGAIN, LIKE OUR PREVIOUS SLIDES WE'RE SHOWING A A FOUR YEAR HISTORY.
UH, IN THE MIDDLE BAND HERE, WE'RE SHOWING CAPACITY SHORT CHARGES, AND THIS IS EFFECTIVELY EQUAL TO ANY OF THE MAKE HOLE PAYMENTS.
SO AS YOU'RE LOOKING AT, YOU CAN REALLY THINK OF THOSE AS THE SAME.
AND THEN THE BOTTOM LEFT, UH, YOU SEE JUST A SHORT, UH, FALL MEGAWATT HOURS IS SORT OF CONSISTENT WITH HOW WE'VE SHARED, UH, THE DATA BEFORE.
UM, I GUESS, UH, THE, THERE'S NOT QUITE THE SAME PATTERN HERE.
I THINK A LOT OF THE, THE RUCK, AND I'M SORRY, THE, THE MAY HOLD ON CLAWBACK REALLY TIE MORE TO INDIVIDUAL DAYS AND THINGS OF THAT NATURE.
SO, UM, IT REALLY DOES NOT NECESSARILY FOLLOW THE SAME PATTERN IN TERMS OF COMMITMENTS.
BUT OBVIOUSLY WE DO HAVE SOME, SOME MONTHS WHERE YOU DO HAVE, UH, SOME, UH, HIGHER VOLUMES.
I GUESS ONE THING TO NOTE, AND THIS WAS ACTUALLY SHARED WITH ME TODAY, UH, THIS IS INCLUDING THE, WHAT'S BEEN SETTLED, UH, SO FAR.
I THINK THERE IS SOME, UH, ONGOING SETTLEMENT AS WELL.
SO AS WE SHARE THESE NUMBERS IN THE FUTURE, THERE, THERE MAY BE SOME ADDITIONAL ADJUSTMENTS THAT AREN'T CAPTURED YET BECAUSE THOSE HAVEN'T BEEN SETTLED.
I THINK IT'D BE HELPFUL ALONG THOSE LINES OF YOUR LAST COUPLE SENTENCES TO KIND OF SHOW THE DIFFERENCE BETWEEN FINAL AND TRUE UP HERE.
UH, I GUESS JUST IN TERMS OF LOOKING AT THE, THE TOTAL QUANTITIES FOR THE YEAR, UH, IN TERMS OF 2022, UH, THE TOTAL MAKE CALL AT THIS POINT IS AROUND 34 MILLION, AND THE TOTAL CLAWBACK FOR 2022 IS AROUND 25 MILLION UH, DOLLARS.
ALRIGHT, UH, I GUESS THESE ARE MY, MY LAST SLIDE HERE.
WE, WE REALLY HAVE HIT ALL THESE POINTS, SO I, I'LL SEE IF THERE'S ANY MORE, UH, QUESTIONS THAT FOLKS HAD BEFORE I MOVE TO THE NEXT PRESENTATION.
ANY OTHER QUESTIONS? OKAY, GO AHEAD NED.
UH, JUST ONE QUESTION, I THINK IT'S RELATED TO THE LAST SLIDE AND THE SECOND BULLET YOU HAVE RIGHT THERE.
UH, WHERE YOU HAVE THE TOTAL MAKE HOLE WAS MOSTLY COVERED THROUGH CAPACITY, SHORT CHARGES.
ON THE PRIOR SLIDE ON THE BOTTOM WHERE YOU HAD, IT WAS LIKE 39.5 MILLION, UH, UPLIFTED LOAD, IS THAT MOSTLY THAT'S INCLUSIVE OF THAT
[03:05:01]
30? CORRECT.SO THE, YEAH, I GUESS IT'S FOR A POINT OF CLARITY.
UH, THE 39 MILLION IN THE BOTTOM OF THE GRAPH HERE IS REFERRING TO ALL FOUR YEARS.
UH, AND THEN ACTUALLY WE DO HAVE A NOTE AND YOU, IT'S, YOU GOTTA MAKE SURE YOU CATCH THE DISTINCTION.
SO OF THE 39.9 MILLION, UH, $39 WAS UPLIFTED THE LOAD.
SO THE OTHER 99.99% OR SOMETHING LIKE THAT, UH, WAS, WAS COVERED BY CAPACITY SHORTS.
SO ONLY $39 AND 47 CENTS WAS ACTUALLY UPLIFTED ON A LOW GROCERY SHARE BASIS.
AND, AND THAT'S WHY WE JUST EFFECTIVELY HAD BEEN USING THAT AS A, A PROXY FOR THAT NUMBER.
I WILL, WE CAN ROLL INTO YOUR NEXT REPORT, THAT HOW WE CAN DO IT.
SO MOVING TO, UH, I GUESS THE NEXT PRESENTATION HERE, TALK ABOUT THE, THE FIRM FUEL DEPLOYMENT.
OBVIOUSLY DAN SORT OF, UH, TEED OFF THE, THE CONVERSATION, UH, DISCUSSING MORE BROADLY AS SOME WHAT WAS GOING ON DURING THE WINTER STORM.
UH, I GUESS SIMILAR TO MY LAST PRESENTATION, THIS IS A, A PROTOCOL DRIVEN ONE, SO JUST WANTED TO SHARE WITH YOU ALL THE PROTOCOL REFERENCE.
I GUESS ONE THING TO POINT OUT IS THAT THE PRESENTATION I HAVE IS REALLY GONNA BE FOCUSED ON THIS FIRST BULLET HERE.
SO THIS IS A BULLET TALKING MORE SPECIFICALLY AROUND THE DEPLOYMENTS AND TRYING TO DO THAT PRESENTATION WITHIN 45 DAYS OF THE ACTUAL DEPLOYMENT, THERE IS AN ADDITIONAL REPORT THAT'S SPECIFICALLY FOCUSED ON THE SETTLEMENT ASSOCIATED WITH ANY RESTOCKING THAT WAS, UH, INSTRUCTED OR APPROVED.
UH, THAT'LL BE SOMETHING THAT WE WILL PROVIDE AFTER THE, UH, CONTRACT PERIOD IS OVER.
SO I DON'T HAVE ANY OF THOSE NUMBERS HERE.
I DO TALK A LITTLE BIT ABOUT SOME OF THE, THE RESTOCKING THOUGH IN GENERAL.
UH, YOU KNOW, DAN REALLY LAID OUT THE, THE TIMELINE HERE.
UH, SO I, I GUESS I WON'T SPEND AS MUCH TIME ON SOME OF THE DETAIL.
UH, AS WE WERE LEADING UP TO THIS, OF COURSE, WE WERE HEARING SOME INFORMATION FROM THE GENERATORS.
THERE WAS INFORMATION COMING IN FROM THE GAS DISTRIBUTORS, UH, TRYING TO FIGURE OUT, UH, WHAT MAY BE GOING ON AND WHAT LIMITATIONS THAT WE MAY SEE.
AND OF COURSE, THIS WAS SPECIFICALLY INCLUDING SOME INFORMATION ON WHETHER RESOURCES, SPECIFICALLY THE FIRM, FUEL SUPPLY SERVICE RESOURCES, THE FFF SSRS, UH, WOULD BE ABLE TO RUN WITHOUT UTILIZING RESERVE FUEL THAT WAS PROCURED AS PART OF THE FFF S PROGRAM.
SO DAN HAD TALKED ABOUT THE OPERATIONS CONDITIONS NOTICE, UH, THAT WAS ISSUED ON THE 16TH.
I GUESS GETTING A LITTLE BIT FURTHER INTO THE TIMELINE ON THE MORNING OF THE, UH, 21ST AT 10:00 AM IS WHEN WE ISSUED THE WATCH FOR THE EXTREME COLD WEATHER.
UH, AND AT NOON THAT DAY IS WHEN WE DID THE, UH, I GUESS OUR FIRST NOTICES, UH, ISSUING AND INSTRUCTING, UH, THE QSE TO PREPARE FOR POTENTIAL FIRM FUEL DEPLOYMENTS.
AND IT WAS LATER THAT EVENING AT SIX, UH, BETWEEN SIX AND SEVEN WHERE WE ACTUALLY ISSUED OUR FIRST DEPLOYMENT.
NOW THAT DEPLOYMENT TOOK OR DIDN'T TAKE EFFECT TILL NOON THE NEXT DAY, BUT THAT'S WHEN THAT FIRST INSTRUCTION, UH, WENT OUT.
SO THE, THE FIRST DEPLOYMENT STARTED AT NOON ON THE 22ND, AND THERE WAS SOME FORM OF DEPLOYMENT, AND I'LL TALK ABOUT THAT IN A LITTLE BIT ON THE NEXT COUPLE OF SLIDES GOING ON UNTIL, UNTIL AROUND NOON ON, UH, THE 25TH.
SO, JUST TO DO A SUMMARY BEFORE I SHARE, I GUESS THE SPECIFIC DETAILS, THERE WERE EIGHT RESOURCES THAT HAD EFFECTIVE DEPLOYMENTS, UH, BETWEEN THAT TIMEFRAME I MENTIONED AROUND NOON ON THE 22ND TO NOON ON THE 25TH.
AND YOU CAN KIND OF SEE HOW THAT VARIED, UH, ACROSS THE DIFFERENT OPERATING DAYS.
SO A, A LARGE MAJORITY OF THAT TOOK EFFECT RIGHT AWAY AS WE GOT INTO THE 22ND.
UM, THAT STAYED ON, UH, FOR THE 23RD THROUGH PART OF THE 24TH.
AND THEN FINALLY, UH, THERE WERE SOME RAINING, UH, COMMITMENTS THAT WE HAD OR INSTRUCTIONS THAT WE HAD GOING TO NOON ON THE 25TH.
NOW, IN TERMS OF THE, THE SPECIFIC RESOURCES BEING DEPLOYED, UM, THERE WAS OBVIOUSLY THE DISCUSSIONS I MENTIONED BEFORE.
SO, YOU KNOW, WAS THE RESOURCE EXPECTING SOME FUEL LIMITATIONS, UH, WOULD, UH, THE RESOURCE BE ABLE TO RUN WITHOUT UTILIZING THE FIRM FUEL? AND THEN AS THE DEPLOYMENTS ARE GOING ON, THERE WERE DISCUSSIONS AROUND, YOU KNOW, HOW MUCH OF THE FUEL THAT WAS RESERVED FOR FIRM FUEL, UH, WAS STILL AVAILABLE AS THOSE PROCUREMENTS WERE OCCURRING.
SO I GUESS LAYING OUT THE, THE DETAILS OF DEPLOYMENTS, UH, HERE'S SORT OF THE, THE LIST OF RESOURCES THAT WERE DEPLOYED THAT INCLUDES THE NOTIFICATION TIME.
YOU CAN SEE THE, THE FIRST ONE STARTS AT, UH, BETWEEN SIX AND SEVEN ON THE 21ST.
UH, AND THAT STARTED REALLY WITH NOON ON THE 22ND.
UH, AND THEN WE HAD DEPLOYMENTS EFFECTIVELY GOING, UH, UNTIL, UH, THE NOON ON THE 25TH.
UH, I GUESS GUESS ONE THING JUST TO NOTE OUT HERE IS, UH, YOU'LL SEE A COUPLE OF UNITS THAT WERE LISTED OUT TWICE IN HOW THE CURRENT LANGUAGE IS, UH,
[03:10:01]
WRITTEN, UH, WITHIN THE PROTOCOLS.THE DEPLOYMENT CAN LAST UP TO 48 HOURS.
UH, IN THE CASE OF THOSE LAST TWO UNITS, AND I MENTIONED SOME OF THESE DISCUSSIONS THAT WERE GOING ON, UH, THERE WAS SOME FIRM FUEL THAT WAS PROCURED STILL AVAILABLE.
AND SO THERE WAS A, AN ADDITIONAL DEPLOYMENT THAT WENT OUT FOR THOSE RESOURCES FOR A REMAINING 24 HOURS.
SO YOU'LL SEE AGAIN THAT YOU'LL AN ANOTHER DEPLOYMENT STARTING AT THE, ON THE 24TH AT NOON.
AND THAT GOING INTO NOON ON THE 25TH WHEN, WHEN THAT DEPLOYMENT ENDED.
YEAH, DAVE LOOKED LIKE THIS WAS SLIGHTLY LOWER THAN THE FULL FFF SS PROCUREMENT QUANTITY.
IS THERE A REASON WHY YOU JUST DIDN'T DEPLOY ALL OF IT? UH, I MEAN, I GUESS I'M PRESUMING, I GUESS I WAS NOT PART OF THESE CONVERSATIONS, BUT I THINK IT REALLY LINKS TO THE THREE BULLETS ON, ON THE BOTTOM HERE.
I GUESS THE, TO SOME DEGREE IT SOUNDED LIKE, OR MY TAKE WOULD BE THAT THE, NOT ALL THE RESOURCES NEEDED TO UTILIZE THAT FUEL TO CONTINUE RUNNING.
AND THEN ON THE NEXT SLIDE THAT YOU WERE ON, UM, IT'S KIND OF RELATED TO THE NOTIFICATION ISSUE, IS THESE UNITS, OBVIOUSLY NONE OF THEM APPEARED IN THE, THE TYPICAL RUCK COMMITMENT REPORTS, BECAUSE I ASSUME THEY'RE VDIS MM-HMM.
WHERE IS RESOURCES THAT ARE RUCKED ON THROUGH VDI WOULD EVENTUALLY SHOW UP IN THAT REPORT, OR ARE WE MAKING ANY PROGRESS ON THAT? SO I GUESS THESE, THESE ARE NOT TREATED AS RUCK VDI.
SO ALREADY TODAY WHEN WE DO, UH, R A GENERATOR THROUGH A VDI, THAT THAT IS POSTED, THERE IS NOT A POSTING HERE WHERE WE SHOW THE RESOURCE NAME LIKE WE DO FOR THAT PARTICULAR REPORTING.
YES, THERE IS A PUBLIC REPORT WITHIN THE PROTOCOL THAT'S SUPPOSED TO NOTIFY THE MARK PARTICIPANTS WHEN WE DEPLOY FIRM FUEL.
UM, AND TO BE HONEST, THAT THERE WAS JUST A, A COMPLIANCE ISSUE THAT WE HAD.
IN FACT, WE DID DO A MARKET NOTICE, I THINK IT WENT ON DECEMBER 30TH, UM, WHERE WE HAD AN ERROR IN THE IMPLEMENTATION WHERE THAT PUBLIC NOTICE OF WHEN WE WERE DOING THESE DEPLOYMENTS DIDN'T GO OUT, UH, THAT THAT WAS RESOLVED.
BUT, UH, BUT AT THE TIME WE DID, WE DID NOT FOLLOW THE, THE PROTOCOL.
SO THAT WE'LL GET THE SAME INFORMATION OUT IN THE DIFFERENT REPORT.
UM, WHEN THAT'S CORRECTED, OR NEXT TIME THIS OCCURS, I DID SEE A, A PUBLIC POSTING ON THE OPERATIONS MESSAGES.
BUT YEAH, SO THERE'S ESSENTIALLY, THERE WAS, THERE WAS THIS MESSAGE, UM, THAT WENT ON AT NOON ON THE 21ST WHERE WE SAID WE'RE ASKING QCS TO PREPARE.
THAT ACTUALLY WAS A PUBLIC MESSAGE THAT WENT OUT TO EVERYONE THAT WAS ON, UH, THE ERCOT WEBSITE.
AS PART OF THOSE PUBLIC MESSAGES THAT WE HAVE, THERE IS SUPPOSED TO BE AN ADDITIONAL NOTIFICATION THAT GOES OUT EACH TIME THERE'S A DEPLOYMENT.
IT DOESN'T TEND TO, TO SHARE THE RESOURCE NAME, BUT IT'S INTENDED TO TELL EVERYONE THAT WE'RE DEPLOYING FIRM FUEL.
AND I THINK IT, I THINK IT INCLUDES THE MEGAWATT QUANTITIES, BUT PERHAPS I NEED TO GO BACK AND, AND TAKE A LOOK AT THAT.
THAT WAS THE PROTOCOL THAT WE DID NOT CORRECTLY IMPLEMENT.
AND, AND AGAIN, I MENTIONED IT THAT IT'S ON ACTUALLY MY LAST SLIDE HERE.
UM, AND IN TERMS OF A SYSTEM CHANGE THAT WENT IN ON FACT ON, I BELIEVE IT WAS JANUARY 12TH.
SO WE GOT CANAN FOLLOWED BY CHRISTIAN AND THEN CARRIE, UM, IT MIGHT BE BEST FOR ME TO GO LAST.
UM, I, I DO HAVE SOME THINGS TO RESPOND TO BILL, BUT THERE MIGHT BE OTHER.
VERY WELL, CHRISTIAN, GO AHEAD.
YEAH, UM, THANKS DAVE FOR, FOR DOING THIS.
UM, AND FORGIVE ME CUZ I'M NO FIRM FUEL EXPERT, BUT BASED ON WHAT YOU SAID A WHILE AGO, SO FOR THESE UNITS, WAS THIS A SITUATION WHERE, BUT FOR THIS FIRM FUEL DEPLOYMENT, THEY WOULD'VE HAD, UH, RUNTIME ISSUES? THEY, THAT THEY WOULD, THEY WOULD'VE HAD BEEN ON OUTAGE? I'M I'M JUST CONFUSED ABOUT WHAT YOU SAID ABOUT, I MEAN, I GUESS MY UNDERSTANDING THAT THE, THE WAY WE WERE SELECTING OUR DEPLOYMENTS IS WE WERE SPECIFICALLY FOCUSED ON RESOURCES THAT WERE NOT ANTICIPATED TO BE ABLE TO RUN UNLESS THEY REVERTED OVER TO AN ALTERNATIVE FUEL OR, OR BROADLY UTILIZED WHAT WAS PROCURED AS PART OF THE FIRM FUEL SERVICE.
CHRISTIAN, THIS MIGHT HELP, UM, I THINK IT WAS TUESDAY OR WEDNESDAY, WEDNESDAY ATMOS ANNOUNCED THAT THERE WOULD, WOULD BE CURTAILMENTS IN, IN THE, IN THE NORTH, UH, ZONE IN PARTICULAR.
SO THAT TRIGGERED THE FIRST SUBSET, UM, OF THESE, AND THEN I, WE PROBABLY NEED TO WAIT A LITTLE BIT, BUT MY MEMORY IS THAT THERE WERE A COUPLE OF OTHER, UH, UH, LOCAL DELIVERY ISSUES THAT COMPLETES THE PICTURE STATEWIDE.
THERE WAS, UM, SUFFICIENT GAS FOR A LOT OF THE OTHER, UH, RESOURCES.
AND I GUESS FOR WORDSWORTH, MY UNDERSTANDING AT LEAST SOME OF THE CONVERSATIONS IS SOME
[03:15:01]
OF THE RESOURCES ALSO HAVE FUEL STORED ABOVE AND BEYOND WHAT WAS NECESSARILY REQUIRED FOR THE SERVICE AS WELL.SO THAT MAY HAVE BEEN SORT OF PART OF THE PICTURE IN THESE CONVERSATIONS WHERE EVEN IF THEY WERE HAD TO UTILIZE SOME OF THAT STORED FUEL IS NOT NECESSARILY FUEL THAT WAS PROCURED AS PART OF THE THE FIRM FUEL PROCESS.
SO DO WE EXPECT WE'RE GONNA GET MORE OF THAT DETAIL COMING OUT IN A FOLLOW UP REPORT? I MEAN, YOU SAID IT WAS MAYBE EARLY, BUT BACK TO KIND OF BILL'S QUESTION ABOUT WHY IT WAS SPECIFIC RESOURCES AND NOT THE ENTIRE, YOU KNOW, AWARDED LAW.
WE CAN, WE CAN CERTAINLY DIG INTO MORE AND SEE WHAT WE CAN SHARE.
IT MAY BROADLY FIT IN AS PART OF THE REPORTING THAT DAN WAS TALKING ABOUT.
AND AGAIN, I GUESS, UH, I KNOW THIS GOES BACK TO CARRIE'S QUESTION BEFORE I, I I DON'T HAVE AS MUCH DETAIL RIGHT NOW TO SHARE REGARDING THE, THE INFORMATION WE ARE GETTING FROM THE, THE GAS DISTRIBUTORS AND, AND, AND ALL THE FOLKS IN TERMS OF HOW LONG THIS WERE LASTING.
SO, UH, WE'LL HAVE TO COME BACK IN SOME FORM OR FASHION TO SHARE THAT WITH YOU ALL.
AS I RECALL, CHRISTIAN, THIS MAY BE HELPFUL, BUT AS I RECALL THE PROTOCOLS, THEY STIPULATE THAT THE, UH, GAS FIRED RESOURCE OR HAS TO NOTIFY ERCOT THAT THERE'S A PROBLEM BEFORE THEY ORDER THE SWITCHING.
SO IF YOU DID NOT HAVE A PROBLEM, I DON'T THINK THEY WOULD'VE ORDERED YOU TO SWITCH IN THAT REGARD.
SO, BUT CORRECT ME IF I'M WRONG, CANON OR DAVE.
SO YEAH, THAT, THAT'S, THAT'S ACCURATE.
AND I'LL LET DAN, I WAS JUST GONNA THE ANSWER THE QUESTION THAT, UH, KERRY ASKED OTHER EARLIER, WHICH IS THE, UH, OKAY, YOU MAY HAVE TO GET A LITTLE CLOSER TO THE MIC.
THE RESTRICTIONS WENT THROUGH NOON ON THE 27TH, SO, OKAY.
YEAH, I GUESS THAT'S WHAT, AND I DON'T KNOW WHAT THE FORUM IS, SO I'M GUESS I'M ASKING THE QUESTION OF WHEN ARE WE GOING, WHEN AND IN WHAT FORM ARE WE GONNA GET MORE DETAIL? BECAUSE CONTRARY TO, I DON'T KNOW, THE QUESTIONS ABOUT WHY DIDN'T WE DEPLOY MORE OF MY QUESTION IS WHY DID WE DEPLOY SO MUCH? AND LET'S RECALL THAT, YOU KNOW, EVERY, YOU KNOW, EVERY BIT OF OIL THAT'S BURNED DURING F F S S GETS RESTOCKED AT COST TO CONSUMERS.
SO, UM, IT FEELS LIKE THAT'S AN AFTER EVENT ANALYSIS WE NEED TO CONTINUE TO LOOK AT.
KENAN, YOU'RE NEXT IN THE QUEUE IF YOU WANT TO ANSWER ANY OTHERS.
YEAH, SO, UM, I, I WAS GONNA ACTUALLY HIGHLIGHT THE LAST POINT CARRIE MADE, WHICH IS, UM, WE ARE RESTOCKING, UH, THE, THE BURN FUEL, UM, SO, UH, THAT MATTERS TO, TO THE MARKET.
AND, UM, I, I JUST WANNA MAKE SURE I UNDERSTAND WHAT MIGHT BE COVERED IN THE, UH, COMPETITIVELY SENSITIVE INFORMATION AND THINGS LIKE THAT BEFORE WE RELEASE MORE DATA.
WE ARE ALSO, YOU KNOW, IF YOU WANT TO TELL US THE THINGS, YOU KNOW, COMPILE SOMETHING THAT IS A SET OF DATA THAT IS, IS USEFUL, UH, FOR YOU TO SEE, THAT MIGHT HELP US INSTEAD OF JUST GUESSING.
UM, AND I MEAN, I CAN WORK WITH CARRIE, UH, THAT THAT ONE'S EASY, BUT OTHER PEOPLE MIGHT HAVE ADDITIONAL INFORMATION, UH, THAT, THAT THEY WANT.
SO, UH, UH, I I THINK IT'S JUST A MATTER OF GETTING, MAKING SURE WE KNOW, UH, YOU KNOW WHAT, WHEN THE PROTOCOLS ALLOW US TO RELEASE SOME OF THE INFORMATION.
I, I GUESS ONE OF THE NEXT THING BEFORE I MOVE ON TO THE NEXT SLIDE, JUST TO, TO CLIFF WHAT YOU SAID THAT THAT IS CORRECT.
SO EFFECTIVELY THE EXPECTATION IS, IS THAT GENERATORS THAT ARE SEEING THESE ISSUES THAT WOULD REACH OUT TO THE OPERATORS TO LET THEM KNOW.
NOW, CERTAINLY, I, I MENTIONED WE WERE TALKING TO SOME OF THE, THE GAS COMPANIES AND ALL THAT AS WELL, SO THERE'S INFORMATION COMING THAT WAY, BUT, BUT CERTAINLY WE WOULD EXPECT THE FOLKS OPERATING THE GENERATORS PROBABLY HAVE THE, THE BEST INFORMATION IN TERMS OF WHAT LIMITATIONS THEY MIGHT BE, UH, EXPECTING.
SO THAT, THAT IS A, I THINK, A KEY PART OF, OF HOW WE'RE LOOKING TO GET THAT INFORMATION.
UH, SO I DID WANT TO TALK JUST A LITTLE BIT ABOUT, UM, SORT OF, I GUESS THE PRICING IMPACTS PRIMARILY, UH, OF WHAT WE SAW DURING THE FF SS DEPLOYMENT.
UH, AND SO I GUESS WHAT WE'RE LOOKING AT AT THE FIRST GRAPH HERE IS LOOKING AT THE, UH, PRIMARILY LOOKING AT THE O RDC RESERVES.
I ALSO DID, UH, PUT IN THE PHYSICAL RESPONSIVE CAPABILITY.
UM, BUT IF FOLKS REMEMBER WITHIN THE RULES THAT WERE PUT WITH PART OF, UH, MPR 1120, WE ALSO INCLUDED, UH, A CHANGE TO THE O RDC METHODOLOGY WHERE THE FF SSRS ARE EXCLUDED FROM THE O RDC RESERVE CALCULATIONS.
UH, WHAT WE'RE LOOKING AT ON THIS GRAPHIC IS THE ONLINE O RDC RESERVES, AND WHAT YOU CAN SEE IS, AND THEY'RE, THEY'RE FAIRLY SIMILAR, YOU'LL KIND OF SEE MAYBE A LITTLE BIT MORE INFORMATION ON THE NEXT SLIDE IS THE DOTTED LINE THAT'S SLIGHTLY HIGHER THAN THE SOLID BLUE LINE THAT EFFECTIVELY REPRESENTS WHAT WE WOULD'VE SEEN IN TERMS OF, UH, ONLINE OR RDC RESERVES IF WE DID NOT HAVE THAT EXCLUSION OF THE FFF S S RESOURCES.
AND THIS IS LOOKING AT THE, THE FULL FLOOR
[03:20:01]
OPERATING DAYS THAT WE SAW, UH, IN TERMS OF LOOKING AT THE ACTUAL PRICE ADDERS THEMSELVES FOR THE O R D C.ON THE TOP WE HAVE THE ONLINE ADDER, AND THE BOTTOM IS LOOKING AT THE OFFLINE ADDER.
UM, REALLY THE, WHERE THIS MADE THE MOST IMPACT WAS ON THE DAY WHERE WE SAW THE TIGHTEST CONDITIONS SORT OF LINKING BACK TO, UH, WHAT DAN SAID, AND DADDY EVEN HAD A SLIDE LOOKING AT THE PRICES.
UH, BUT YOU SEE THE, WHERE THE DELTA REALLY OCCURS IS IN BOTH IN THE MORNING AND THE AFTERNOON OF, OR EVENING.
I'D SAY THE, OF THE 23RD, AND I GUESS PARTICULARLY STANDING OUT IS THE, THE EVENING OF THE 23RD.
UH, SO I GUESS TECHNICALLY PRICES THEMSELVES WERE HIGHER DURING THE MORNING OF THE 23RD, BUT RDC WAS A SMALLER COMPONENT OF THE OVERALL PRICES THAT WE SAW.
SO I GUESS THE NEXT SLIDE, AND, AND CAN ALREADY SPOKE TO THIS, BUT JUST TO LET FOLKS KNOW, JUST BECAUSE OF THE TIMING OF THE DEPLOYMENT IN THE OBLIGATION PERIOD AND, AND SOME OF THE ONGOING EXPECTATION THAT WE COULD SEE, UH, CONTINUED COLD WEATHER, PARTICULARLY WHEN WE WERE HAVING SOME OF THESE CONVERSATIONS IN, UH, DECEMBER AND, AND PROBABLY TO SOME DEGREE IN EARLY JANUARY, WE DID, UH, EITHER GIVE INSTRUCTION OR GIVE APPROVAL FOR FA FOLKS TO RESTOCK THEIR, UH, FUEL RESERVES FOR FIRM FUEL.
AND AGAIN, I MENTIONED THERE'S THAT OTHER REPORT THAT WE'LL BRING AFTER THE OBLIGATION PERIOD IS OVER WHERE WE'LL TALK ABOUT THE, THE SPECIFIC SETTLEMENTS ASSOCIATED WITH THAT.
BUT BILL ALL HAVE THE QUESTION.
YEAH, THIS IS THE, I THINK THE MAIN QUESTION FOR US IS, UH, THE RESTOCKING, UM, YOU KNOW, IN TERMS OF THE FIRM FUEL, WE'VE ALREADY BOUGHT IT, RIGHT? SO THAT WAS KIND OF BEHIND THE QUESTION OF WHY NOT USE IT ALL.
UM, THE, THE ADDITIONAL COST COMES FROM THE RESTOCKING.
SO WHAT DO YOU LOOK AT WHEN YOU MAKE THAT DECISION? LIKE IF WE HAVE A DEPLOYMENT IN, AND WHAT DISCRETION DO YOU HAVE? IF WE HAVE A DEPLOYMENT IN THE END OF FEBRUARY OR EARLY MARCH, DOES ERCOT HAVE THE DISCRETION TO SAY, OKAY, WE BURNED, SAY HALF OF THE HALF OF THE STOCKS AND WE'RE NOT GONNA REFILL IT FOR THE REST OF THE SEASON, AND THEN THOSE WILL BE A WHOLE NEW CONTRACTING CYCLE FOR THE NEXT WINTER THAT WILL TAKE CARE OF IT.
BUT WHAT, WHAT DO YOU LOOK AT? WHAT DISCRETION DO YOU GUYS HAVE TO MAKE THAT CALL? RIGHT.
SO, AND KA WHEN I ADD TO THIS, I GUESS I'LL JUST START BY SIMPLY SAYING THERE IS A LOT OF DISCRETION, UH, THAT WAS PUT INTO THE PROTOCOL WHEN WE APPROVED IT, AND IT IS TO ALLOWS, YOU KNOW, SOME OF THOSE CONVERSATIONS TO OCCUR.
CERTAINLY THIS ONE WAS SO EARLY IN THE TIME PERIOD, IT, IT MADE A LOT OF SENSE, BUT THERE WAS A NUMBER OF CONVERSATIONS GOING ON WITHIN ERCOT THINKING ABOUT THAT QUESTION.
BUT, YOU KNOW, JUST TO USE THE MOST EXTREME EXAMPLES, IF WE HAD A COLD WEATHER EVENT ON MARCH 14TH, IT'S OBVIOUSLY NOT GONNA MAKE SENSE.
SO THAT'S WHY WE HAD WRITTEN THAT DISCRETION INTO THE PROTOCOL.
BUT, BUT KANA, WOULD YOU LIKE TO ADD SOMETHING TO THAT? YEAH, I MEAN, UH, FIRST OF ALL, DAVE'S, RIGHT,
SO, UH, WE HAVE A LOT OF DISCRETION AND, UM, THE LOGIC WAS, YOU KNOW, HOW MANY RISKY DAYS ARE THERE.
AND THEN THE OTHER, ONLY OTHER FACTOR I WOULD, UM, UH, SHARE WITH YOU IS THAT, YOU KNOW, I MEAN THIS IS, UH, ALSO A, UH, A PROJECT OR PROGRAM, UH, AUTHORIZED BY THE COMMISSION.
SO THAT'S ANOTHER AREA THAT WE WOULD CONSULT WITH AND MAKING THE, THE DECISION.
UM, SO, SO THAT, THAT'S HOW IT IS, UH, CURRENTLY STANDS.
UM, YOU KNOW, WE CAN TALK ABOUT, UH, OTHER, UH, CONTROLS OR, OR NOTICES OR THINGS THAT YOU MIGHT WANT TO SEE AS A PART OF THIS PROGRAM.
UM, I THINK YOU'RE GONNA FIND THAT THERE'S SOME TENSION BETWEEN, YOU KNOW, KEEPING COSTS LOW AND, AND, UH, YOU KNOW, HOW CONSERVATIVE YOU WANT TO, YOU WANT TO BE.
UM, ULTIMATELY, UH, I, I THINK THE COMMISSION AND, AND PROBABLY ERCOT LEADERSHIP HAVE BEEN DELEGATED A LOT OF THAT, UH, UH, RESPONSIBILITY IN ITS CURRENT FORM.
SO THAT, THAT'S KIND OF WHERE WE RESIDE WITH THAT.
ALRIGHT, AND I JUST HAD ONE MORE SLIDE TALKING ABOUT SOME, I GUESS, ISSUES AND LESSONS LEARNED.
SO I, I'VE ALREADY TALKED ABOUT THIS ISSUE.
UH, OBVIOUSLY WE DID NOT IMPLEMENT THE PROTOCOL THE WAY IT WAS INTENDED IN TERMS OF THIS PUBLIC NOTICE.
UH, SO WE CERTAINLY RECOGNIZED THAT AND, AND TRIED TO FIX IT AS QUICKLY AS POSSIBLE.
AND WE, AND WE DID GET THAT FIXED IN FOR JANUARY OR ON JANUARY 12TH, UM, UH, AND ALREADY THINKING ABOUT THIS NEXT ITERATION, THE FIRM FUEL, I KNOW THERE'S OBVIOUSLY DISCUSSION GOING ON AT THE, THE COMMISSION, THINGS LIKE THAT IN TERMS OF WHAT TO INCLUDE EVEN ON SORT OF SIDE OF THAT.
CERTAINLY RECOGNIZE THAT 1120 WAS DEVELOPED FAIRLY QUICKLY AND, AND THINKING ABOUT LANGUAGE IMPROVEMENTS WE WANNA MAKE JUST MORE GENERALLY THINGS THAT WE THINK COULD BE CLARIFIED, YOU KNOW, JUST ITEMS OF THAT NATURE.
UH, AND SO WE ACTUALLY HAD, HAD BEGUN DRAFTING SOME PROTOCOL LANGUAGE AND I GUESS SINCE NOW WE HAVE A DEPLOYMENT, WE EVEN HAVE A, A COUPLE OF EXTRA LESSONS LEARNED THAT WE'RE GONNA BE INCORPORATING, UH, INTO THAT DRAFT MPR R UH, I THINK THE HOPE IS TO TRY AND SHARE THAT WITH YOU ALL IN THE, AT THE NEXT PRS OR THE ONE RIGHT AFTER, UM, WITH REALLY THIS BEING KIND
[03:25:01]
OF A NO IMPACT, NOT LOOKING AT ELIGIBILITY, BUT JUST TRYING TO ADDRESS SOME OF THE, THESE CLEANUP ITEMS. UH, OF COURSE WE, WE MAY HAVE SOME MORE MPR LANGUAGE SEPARATE FROM THAT, THAT WE COULD TALK ABOUT SOME OF THE ELIGIBILITY.UH, ONE OF THEM IS REALLY JUST THIS PROCESS FOR APPROVING OR INSTRUCTING THE RESTOCKING OF FIRM FUEL.
FEEL LIKE THE RIGHT PEOPLE GOT INVOLVED IN MY UNDERSTANDING IN TERMS OF MAKING THAT DECISION.
BUT SORT OF UNDERSTANDING, YOU KNOW, WHO ARE THE QCS SUPPOSED TO REACH OUT, HOW DOES THAT CONVERSATION OCCUR? I DON'T THINK THE PROTOCOLS ARE VERY CLEAR, SO WE'RE LOOKING AT SOME IMPROVEMENTS TO THE LANGUAGE THERE.
UM, THE PROCESS FOR QCS PERFORMING TESTING, THE WAY IT WAS DEVELOPED UNDER 1120, UH, PRIMARILY BECAUSE OF THE TIMING IS THAT THE TESTING OCCURS AFTER THE WHOLE RFP PROCESS IS OVER.
THAT SEEMS A LITTLE BACKWARDS.
AND IDEALLY WE'D WANT FOLKS TO KNOW WHAT THEY'RE ELIGIBLE TO PROVIDE PRIOR TO OFFERING INTO THE RFP.
NOW THAT DIDN'T CREATE ANY CONCERNS, UH, BUT IT SEEMS LIKE IT COULD LAND US IN SOME AWKWARD POSITIONS.
SO WE'RE LOOKING TO, TO CHANGE THE TIMING OF HOW THAT OCCURS.
UM, JUST TO ALIGN THE PROTOCOL WITH WHAT WAS IN THE RFP, WANT TO ADD A REQUIREMENT FOR, UH, FFF SS OFFER DISCLOSURE REPORTING.
AND I THINK THIS ALREADY COME UP WITH, UH, SOME, UH, AN NPR SUBMITTED BY LCR A, BUT ADDING SOME MORE LANGUAGE IN THE PROTOCOLS REGARDING THE ALTERNATE RESOURCES THAT CAN BE USED FOR PROVIDING THE SERVICE.
I THINK SOME OF THOSE ITEMS HAVE BEEN CAPTURED, BUT THERE'S PROBABLY A COUPLE OF OTHER AREAS WITHIN THE NEW LANGUAGE THAT WAS ADDED WITH FIRM FUEL WHERE THE ALTERNATE RESOURCE REALLY ISN'T TALKED ABOUT SUFFICIENTLY.
SO WE'RE LOOKING TO SEE IF WE CAN, UH, ADDRESS SOME OF THOSE AND THERE AND THERE WE'LL PROBABLY FIND SOME OTHER ADMINISTRATIVE THINGS AS WE CONTINUE TO, TO WRAP UP THE LANGUAGE TO, TO SHARE WITH YOU ALL.
SO THAT IS THE LAST SLIDE I HAVE CLIFF FLIP.
AND I SEE NO QUESTIONS IN THE QUEUE EITHER IN THE ROOM OR, OR VIRTUALLY, SO, OKAY.
ANY OTHER QUESTIONS FOR DAVE? LAST CHANCE? ALL RIGHT, DAVE.
OKAY, WELL THAT WRAPS UP THE ERCOT REPORTS THAT LEAVES OTHER BUSINESS.
ANYBODY HAVE ANY OTHER BUSINESS THEY'D LIKE TO RAISE FOR TODAY'S TACK MEETING? AND I WILL NOT FORGET THE COMBO BALLOT THIS TIME, SO WE'LL MOVE ON TO THE
[16. Combo Ballot (Vote)]
COMBO BALLOT NOW.SO
SO WE GOT A MOTION FROM DAVID KEY, A SECOND FROM JEREMY CARPENTER TO APPROVE THE COMBO BALLOT.
UM, LET YOU GET THAT PULLED UP, COREY.
AND THERE ARE OUR ITEMS FROM THE COMBO BALLOT OR FOR CONSIDERATION AS PART OF THE COMBO BALLOT RATHER.
SO ANY QUESTIONS ON ANY OF THOSE? OKAY, COREY, TAKE IT AWAY.
AND APOLOGIES, I TOOK MYA OUT THE BALL.
UH, DID WE GET A MOTION IN A SECOND FOR THE COMBO BALLOT? WE'RE GOOD.
THANK YOU ALL FOR YOUR PATIENCE.
AND WE WILL BEGIN ON THE MOTION TO APPROVE THE COMBO BALLOT UP WITH CONSUMERS WITH MARK.
YES, THANK YOU BILL FOR GARRETT? YES, THANK YOU ERIC.
ON OUR CO-OPS, UH, KATIE FOR MIKE WEISS.
UNDER OUR INDEPENDENT GENERATORS, NED, FOR IAN.
UNDER OUR IPMS. JEREMY? YES, THANK YOU, REMI.
UNDER OUR IUS, UH, STACY FOR KEITH.
I'VE BEEN A LONG MEETING TODAY.
APPRECIATE YOUR TIME AND JOINING US HERE TODAY.
IT'S GREAT TO SEE SO MANY PEOPLE IN PERSON TODAY AS WELL.
SO, UH, DID WANT TO ADD THAT OUR NEXT MEETING WILL BE FEBRUARY 20TH,
[03:30:01]
WHICH WILL BE ON MONDAY.UM, AS ITERATED BEFORE AND AS WE JUST TALKED ABOUT A LITTLE BIT LAST MONTH, WE WOULD LIKE TO CHANGE THE CALENDAR TO COINCIDE WITH WHAT WAS PRESENTED UNDER OTHER BUSINESS, UH, IN DECEMBER.
SO I TALKED TO ANNE ABOUT THAT.
SO THAT PLACES MOST OF OUR MEETINGS ON TUESDAYS FOR THE REST OF THE YEAR, WITH THE EXCEPTION OF THE FEBRUARY 20TH MEETING.
AND I BELIEVE THE DECEMBER MEETING, IF I'M CORRECT.
SO, UM, SO BE ON THE LOOKOUT FOR THAT.
THAT'LL BE UPDATED ON THE ERCOT WEBSITE AS WELL.
APPRECIATE IT AGAIN, TECH AND UH, THE MEETING'S ADJOURNED.