[00:00:03]
GOOD MORNING, THIS IS SUSIE CLIFTON WITH ERCOT.
IF ANYBODY ON THE WEBEX COULD CONFIRM, YOU CAN HEAR ME OKAY.
IF WE COULD GET EVERYBODY IN THE ROOM SEATED PLEASES, UH, WE ARE READY TO GET STARTED.
IF WE CAN GET EVERYBODY IN THE ROOM TO GET TO THEIR SEATS, PLEASE.
PROBABLY LIKE A CUTOFF BOARD, CONVENTION MEETING,
JUST REAL QUICKLY BEFORE WE GET STARTED, AND I KNOW JORDAN ALREADY HAS THIS INFORMATION IN THE CHAT, IT'S, BUT, UM, FOR THOSE ARE YOU, UM, IN THE MEETING ROOM, YOU HAVE TWO OPTIONS.
WHEN IT COMES TO, UH, MAKING A MOTION OR FOR DISCUSSION, YOU CAN HOLD UP YOUR CARD AND JORDAN WILL ENTER YOU INTO THE CHAT, OR YOU CAN JUST USE THE CHAT FUNCTIONALITY, UH, YOURSELF.
THOSE OF YOU ON THE WEBEX, PLEASE, UH, ENTER YOUR INFORMATION INTO THE CHAT, UH, YOUR NAME AND, UH, JORDAN WILL KEEP TRACK OF WHO'S NEXT.
WE DO HAVE EVERYBODY SEATED IN HERE.
UM, AS WE APPROACH THE BALLOTING PROCESS, PLEASE MAKE SURE IF YOU ARE ON THE WEBEX TO UNMUTE YOURSELF AND THEN MUTE YOURSELF AFTER YOU'VE CAST YOUR VOTE.
THAT WILL HELP US BE A LITTLE MORE EFFICIENT WITH THAT BALLOT.
AND THEN, UM, IF YOU ARE IN THE MEETING ROOM, PLEASE MAKE SURE YOU SIGN IN IN THE BACK OF THE ROOM, WHETHER YOU ARE A CONSULTANT OR CO STAFF, UH, SEATED REPS OR, UH, JUST MARKET PARTICIPANTS ATTENDING.
AND THEN FINALLY, IF YOU, UH, IF THE WEBEX ENDS FOR ANY REASON, PLEASE GIVE US JUST A FEW MINUTES AND YOU SHOULD BE ABLE TO LOG BACK IN WITH THE SAME MEETING DETAILS.
AND WITH THAT CLIFF, WE ARE READY TO GET STARTED, AND WE DO HAVE A QUORUM.
UM, APPRECI EVERY, APPRECIATE EVERYONE BEING HERE TODAY.
I KNOW TODAY'S PRESIDENT'S DAY.
WE'VE GOT A NUMBER OF FOLKS THAT ARE OFF.
WE'VE GOT, UH, HOLIDAYS FOR SCHOOLS, AND THEREFORE WE'VE GOT SOME FOLKS THAT ARE MISSING AS IT RELATES TO THAT.
BUT, UM, WE DO HAVE ERCOT MARKET SUMMIT COMING UP THE NEXT FEW DAYS.
AND SO, UM, IN TERMS OF A WINDOW TO HOLD TACK, THIS WAS, UH, THE WINDOW WAS PRETTY NARROW.
SO, UH, DEFINITELY APPRECIATE EVERYONE BEING HERE TODAY.
[1. Antitrust Admonition]
START WITH ITEM NUMBER ONE, WHICH IS THE ANTITRUST ADMONITION.YOU SHOULD SEE THAT UP THERE ON THE SCREEN.
UH, WHILE YOU'RE READING THROUGH THAT, DID WANT TO POINT OUT THAT WE DO HAVE ONE PROXY.
UH, BILL SMITH HAS PROVIDED HIS PROXY TO GARRETT KENT.
UH, WE DO HAVE A COUPLE OF ALTERNATE REPS.
BRIAN SAMS HAS, UH, INDICATED THAT BRETT BIRKHEAD WOULD BE HIS ALTERNATE REP, AND DIANA COLEMAN IS HERE ON BEHALF OF DAVID KEY FOR CPS.
THAT'S IT, UH, FOR THE ANTITRUST ADMONITION.
[2. Approval of TAC Meeting Minutes (Vote)]
GO TO AGENDA ITEM NUMBER TWO, WHICH IS APPROVAL OF THE TAC MEETING MINUTES.UH, WE DO HAVE THE JANUARY 24TH, 2023 MEETING MINUTES THAT ARE COMPLETED.
SUSIE, DO WE HAVE ANY COMMENTS? NO COMMENTS THERE.
UH, ANY COMMENTS AS IT PERTAINS TO, TO THOSE MEETING MINUTES? AND IF THERE ARE NONE, WE WILL MOVE IT TO THE COMBO BALLOT LOOKING AROUND THE ROOM.
ALRIGHT, WE WILL MOVE ON TO AGENDA
[3. Meeting Updates]
ITEM NUMBER THREE, WHICH ARE THE MEETING UPDATES.UH, THE P C DID MEET ON A NUMBER OF TIMES SINCE WE'VE LAST MET.
UH, THE ONES THAT I DID WANT TO NOTE WERE THE JANUARY 26TH, UH, 2023 P U C T MEETING WHERE THE REVISION REQUESTS THAT WERE APPROVED BY THE ERCOT BOARD IN DECEMBER WERE ADOPTED BY THE PUBLIC UTILITY COMMISSION ON FEBRUARY 16TH.
WE ALSO HAD A MEETING OF THE PUBLIC UTILITY COMMISSION WHERE THE ADMINISTRATIVE REVISION REQUESTS WERE ADOPTED AS WELL.
UM, NOW THAT BEING SAID, I DID WANT TO NOTE THAT THERE ARE A NUMBER OF THINGS THAT HAVE BEEN DISCUSSED AT THE PUC THAT WILL ULTIMATELY END UP HERE FOR OUR DISCUSSION, ICLU, INCLUDING THE VAL VALUE OF LOSS LOAD, UM, RELIABILITY METRIC, UM, AND A BRIDGE MECHANISM AND DISCUSSION ON ALL OF THOSE.
UH, TACK WILL DEFINITELY HAVE SOME WORK TO DO ON THOSE PARTICULAR ITEMS. I WANTED TO ASK KAAN IF HE HAD ANYTHING HE WANTED TO ADD ON THAT AT THIS POINT IN TIME, OR DEFER THAT CONVERSATION LATER.
UM, I DO TH I DO HAVE AN UPDATE ON, UM, KIND OF WHAT WE PLAN WITH THE BRIDGE SOLUTION REQUEST FROM THE COMMISSION.
SO I'M HAPPY TO KIND OF TALK THROUGH THAT NOW.
UM, OR I CAN WAIT UNTIL OTHER BUSINESS, UH, YOUR, YOUR PREFERENCE, WE'LL PICK UP THE BRIDGE SOLUTION A LITTLE LATER.
ANYBODY HAVE ANY QUESTIONS FOR CANAN ON, ON ANYTHING ELSE THAT THE COMMISSION'S TEED UP FOR US? OKAY.
OH, DO YOU WANT TO END GOLD? GO AHEAD, EMILY.
I, YOU KNOW, CAN BRING THIS UP LATER TOO IF NOW IT'S NOT THE RIGHT TIME.
[00:05:01]
JOLLY WITH L C R A.UH, THERE WAS ALSO DISCUSSION AROUND THE NEXT PHASE OF FIRM FUEL, AND I DON'T RECALL WHETHER THAT'S SOMETHING TOO THAT IS, UM, WE GOT THE, THE FUEL SURVEYS RIGHT, UM, AS CHAD INDICATED TO THE COMMISSIONERS, UM, ANY OTHER ITEMS THAT WE NEED TO DISCUSS AROUND THAT FOR NEXT STEPS IN TERMS OF OUR COMPLEMENTATION? SO, UM, UH, OUR TAKEAWAY IS THAT THERE'S STILL SOME, UH, SEMINAL ISSUES AROUND PHASE TWO THAT THE COMMISSION NEEDS TO THINK ABOUT.
UM, AND WE DID NOT SEE ANYTHING COME OUT AS A HOMEWORK ASSIGNMENT TO TAKE TO THE STAKEHOLDERS, BUT I MEAN, IF YOU'RE SEEING SOMETHING DIFFERENT, UH, I'M HAPPY TO KIND OF TAKE THAT BACK AND DISCUSS IT, UH, INTERNALLY.
UM, BUT, BUT OUR, UM, UH, I THINK AS FAR AS PHASE TWO GOES, WE'RE STILL WAITING FOR THE COMMISSION TO WEIGH IN.
AND THEY FEEL, UH, MY SENSE IS THAT THEY FEEL LIKE SOME OF THE SURVEY RESULTS WILL HELP THEM MAKE DECISIONS.
SO I THINK IT'S GONNA BE KINDA SURVEY RESULTS, THEN FEEDBACK FROM THEM, THEN US WORKING WITH Y'ALL ON, UH, ANOTHER, UH, NPR R UH, TO MOVE THE BALL FORWARD.
UH, BOB HILTON, YOU'RE IN THE QUEUE.
CAN YOU GET, YOU HEAR ME? YES, SIR.
WANTED TO MAKE SURE IT'S THE FIRST TIME I TALKED.
UM, ONE THING I THINK WE NEED TO THINK ABOUT ON, ON THESE PARTICULAR ITEMS THAT POSSIBLY WHATEVER, UH, THE PHASE TWO DESIGN BRINGS UP, IS CONSIDER WHETHER WE WANNA PUT THESE IN THE NORMAL STAKEHOLDER COMMITTEES OR IF WE SHOULD SET UP TASK FORCES TO SPECIFICALLY DO THESE ON A ONE-OFF SO WE DON'T INTERFERE WITH THE OTHER BUSINESS WE HAVE GOING ONGOING IN THE COMMITTEES.
SO I THINK WE NEED TO SERIOUSLY CONSIDER THAT POINT WELL TAKEN AND START THINKING ABOUT IT NOW.
I THINK POINT WELL TAKEN, I, I THINK THAT'S CERTAINLY SOMETHING THAT WE SHOULD ENTERTAIN AS WE'RE MOVING FORWARD.
SO WE'VE DONE SIMILAR WITH REAL-TIME CO-OPT OPTIMIZATION AND SO FORTH.
SO I THINK WE'VE GOT THE PRESIDENT SET.
UH, WE'VE ALSO GOT, UM, YOU KNOW, AN OPPORTUNITY HERE TO MAKE SURE THAT WE'RE LOOKING AT IT HOLISTICALLY.
SO I THINK THE FACT THAT TAC HAS THE OPPORTUNITY TO MANAGE THAT, I THINK IS A REALLY GOOD IDEA.
HEY, ANYTHING ELSE UNDER AGENDA ITEM NUMBER THREE? Q IS EMPTY.
[4. 2023 TAC Goals and Strategic Initiatives (Vote)]
ITEM NUMBER FOUR, THE TAC GOALS AND STRATEGIC INITIATIVES.UH, WE'LL GO AHEAD AND TEE UP, UH, START WITH THE GOALS FIRST, IF YOU DON'T MIND, COREY.
UM, SO WE DID BRING THESE FORTH LAST MONTH FOR FOLKS TO START, UH, CONTEMPLATING, UM, HOPING TO ADOPT THESE TODAY.
WE DID GET A FEW COMMENTS ON THESE.
UH, I BELIEVE MARK DREYFUS PROVIDED COMMENTS.
I BELIEVE WE HAD ONE OTHER SET OF COMMENTS AS WELL, UM, THAT WERE DOWN, UH, YEAH, FURTHER DOWN.
SO LET, LET'S GO BACK TO AGENDA, OR I'M SORRY, TACK ITEM OR GOAL NUMBER THREE RATHER.
UM, I THINK THIS ONE, I BELIEVE CAME FROM ROY TRU.
UM, AND THIS ONE IS REALLY A CARRYOVER FROM WHAT WE HAD SEEN OR WHAT WE HAD, UH, ACTUALLY INSERTED LAST TIME.
UM, BUT THAT BEING SAID, IT LOOKS LIKE THE 88TH LEGISLATURE IS ALSO TAKING ON SOME ADDITIONAL MARKET DESIGN, UH, CONCERNS HERE.
AND SO WE MAY SEE SOME ADDITIONAL, UH, BILLS THAT ORIGINATE FROM THE 88TH LEGISLATURE THAT WE MAY WANT TO CONSIDER AS WELL.
SO WE STRUCK 87TH LEG, UH, SESSION IN THERE AND PUT THE LATEST SESSION IN THERE INSTEAD.
SO I THINK THAT'S A REASONABLE ASK.
UM, IF WE CAN GO AHEAD AND SCROLL DOWN TO THE BOTTOM.
WE'VE GOT TWO ADDITIONAL HERE.
UM, SO THAT BEING SAID, UH, AGENDA, KEEP SAYING AGENDA.
SO GOAL NUMBER 18, UH, REVIEW MARKET DESIGN CHANGES AND RELIABILITY ENHANCEMENTS IMPLEMENTED FOLLOWING WINTER STORM URI AND THE SUBSEQUENT LEGISLATIVE AND REGULATORY REQUIREMENTS AT EACH MEETING OF THE T IN 2023 INVITES ERCOT STAFF TO PRESENT FOR A COMMITTEE EDUCATION REVIEW AND DISCUSSION, ONE ADOPTED ELEMENT, INCLUDING ITEMS SUCH AS FIRM FUEL SERVICE, NPR R 1105, NPR, R 1108, E R S O R D C, ET CETERA.
SO MARK IS THE AUTHOR OF THIS EDITION, SO I'M GONNA DEFER TO MARK ON THIS.
I, I JUST THOUGHT THAT GIVEN THE LARGE NUMBER OF CHANGES AND MOVING PARTS THAT WE'VE HAD SINCE THE STORM, UM, AND I, AND I KNOW THESE THINGS ARE OFTEN DISCUSSED DOWN IN THE COMMITTEES AND TASK FORCES, BUT AS, AS THE GROUP THAT IS SUPPOSED TO PROVIDE THE BOARD AND THE COMMISSION TECHNICAL AND POLICY ADVICE, I THOUGHT IT WOULD JUST BE GOOD IF WE HAD THE OPPORTUNITY FOR EDUCATION AND DISCUSSION ON, ON THE MANY DIFFERENT INITIATIVES THAT HAVE OCCURRED SINCE THE STORM.
[00:10:01]
MUCH LIKE WE'RE GONNA HAVE TODAY ON THE FIRM FUEL SERVICE.UH, JUST SEEM LIKE A PART OF OUR BASIC FUNCTION TO, UH, GET SMARTER AND BE ABLE TO PROVIDE INPUT.
UM, DIANA, ARE YOU WANTING TO SPEAK TO THIS ONE SPECIFICALLY? RIGHT.
SO MARK, WE HAD A QUESTION ON 18.
WE'RE JUST WONDERING WHAT THE GOAL WOULD BE.
WOULD IT BE MARKET PERFORMANCE OR WOULD IT BE RELIABILITY IMPROVEMENT, OR IS, IS THERE SOME SORT OF GOAL? AND THEN JUST ALSO, WOULD THIS ALIGN WITH NUMBER TWO THAT WE JUST TALKED ABOUT EARLIER? AND IF IT DOES, WOULD, SHOULD, WOULD THIS BE MOVED UP A LITTLE BIT TO MAKE THOSE KIND OF COMBINED? I DIDN'T KNOW.
WELL, I, I THINK THAT, UM, RELIABILITY MARKET ARE BOTH PART OF OUR PORTFOLIO.
UM, I I ALSO THINK THAT, UH, AN IMPORTANT PART OF, OF OUR PERSPECTIVE SHOULD BE INTEGRATION AND HOW THESE THINGS FIT TOGETHER AND IF THEY ALL WORK TOGETHER.
I MEAN, WE ALL KNOW THAT WE'RE OPERATING IN A DIFFERENT MARKET WITH, WITH CONSERVATIVE OPERATIONS AND, AND THINGS ARE DIFFERENT THAN THE, THE WAY WE'VE THOUGHT ABOUT THEM IN THE PAST.
SO AS WE'VE ADDED ALL THESE LAYERS OF RELIABILITY AND MARKET, UH, RESPONSIBILITIES, DOES EVERYTHING WORK TOGETHER? AND, AND THAT'S KIND OF WHAT I WAS THINKING AND JUST SPEAKING TO THE LIST THAT I INCLUDED THERE, THAT WAS NOT DISPOSITIVE.
THOSE WERE THE THINGS THAT JUST POPPED OUTTA MY HEAD WHEN I WAS DRAFTING THIS.
ACTUALLY, DIANE TOOK CARE OF ME.
SO I LOOKED AT 18 AS BEING LARGELY AN EDUCATION OPPORTUNITY FOR US.
I LOOK AT ITEM TWO AS BEING MORE SO, UM, IMPLEMENTATION ASPECT OF IT.
AND SO I THINK THE TWO DO WORK HAND IN HAND.
I, I HAVE NO OBJECTION TO ADDING THIS ONE, UM, AND LOOKING FOR ANY FEEDBACK OTHERWISE ON IT.
UM, LOOKING AROUND THE ROOM, I SEE NONE AT THIS POINT.
SO, OKAY, WE'LL MOVE FORWARD WITH ADDING THIS TO OUR GOALS FOR THIS YEAR.
GOAL NUMBER 19, SUPPORT ERCOT IDENTIFICATION, DEVELOPMENT AND IMPLEMENTATION OF BRIDGING SOLUTIONS IF NECESSARY IN ADVANCE OF LONGER TERM MARKET DESIGN MODIFICATIONS.
THIS WAS BROUGHT TO US BY CPS.
I'LL DEFER TO DIANA IF YOU WANT TO ADDRESS ANYTHING ADDITIONAL.
THIS IS JUST, UH, PART OF THE DIRECTIVES THAT THE COMMISSION GAVE US AS WELL, AND JUST MAKING SURE WE CAPTURE THIS.
AND, UM, SINCE TACK IS, UH, CHARGED WITH, UM, STREAMLINING THIS, WE JUST FELT IT MIGHT BE A GOOD IDEA TO CAPTURE THIS AND THE GOALS AS WELL.
THAT WAY IF ANYBODY HAD ANY QUESTIONS ON WHAT WE WERE WORKING ON, THIS MIGHT BE A GOOD ONE TO ADD AS WELL.
I THINK WE, ANY THOUGHTS OR OPPOSITION TO ADDING THIS TO OUR GOALS AS WELL? SO, OKAY, I, I GUESS I'LL, I'LL COMMENT QUICKLY.
I MEAN, 18 IS, UH, IS, IS, UH, AN ASSIGNMENT TOCO STAFF, FOR LACK OF A BETTER WAY TO DESCRIBE IT.
IS THAT YOUR GOAL, UH, IS THAT, I MEAN, I THINK YOU SHOULD FOCUS ON THE ISSUES THAT YOU WANT TO TALK ABOUT AND WE CAN FIGURE OUT HOW WE ARE GONNA TRY AND SUPPORT THAT.
BUT IS, I GUESS, IS IT THE TACT GOALS TO CREATE ADDITIONAL ASSIGNMENTS TO, FOR ERCOT STAFF? WELL, I, I THINK THE GOAL IS TO GET SMART.
AND, UH, ERCOT HAS THE INFORMATION THAT WE NEED AS A TECHNICAL ADVISORY GROUP TO GET SMART.
SO IF YOU LOOK AT TODAY'S, UH, FIRM FUEL SUPPLY SERVICE PRESENTATION, I, I DON'T HAVE ANY OF THAT INFORMATION AND I CAN'T, I CAN'T THINK THROUGH THE PROGRAM AND EVALUATE THE PROGRAM WITHOUT THE INFORMATION THAT WAS PROVIDED BY ERCOT.
SO IT'S NOT INTENDED AS A BURDEN ON ERCOT, BUT AS A WAY FOR US TO WORK TOGETHER ON SOME OF THESE THINGS.
I MEAN, IF, IF WE LOOK AT NPR R 1108, I THINK EVERYBODY RECOGNIZES THERE WAS SOME TENSION BETWEEN THE ERCOT STAFF AND THE STAKEHOLDERS ABOUT THAT.
GIVEN THE SCHEDULE, WE ARE FORCED TO DRIVE THROUGH TO PASS THAT, THAT WAS UNFORTUNATE.
I THINK WE COULD HAVE DONE A REALLY GOOD JOB OF WORKING THAT OUT IF WE HAD NOT BEEN UNDER TIME PRESSURE.
SO NOW WE HAVE THE OPPORTUNITY TO WORK TOGETHER, UH, THE WAY WE SHOULD ERCOT AND THE STAKEHOLDERS TO LOOK THROUGH THESE THINGS, UNDERSTAND THEM, FULLY, EVALUATE THEM, SEE IF ANY TWEAKS NEED TO BE MADE.
SO I, I'M REALLY NOT INTENDING TO CREATE A BURDEN ON YOU GUYS.
I KNOW HOW MUCH IS, IS ON YOUR PLATE.
I, I, I MEAN, IT'S EXTRAORDINARY, BUT I DO THINK WE NEED TO, TO JOINTLY HAVE SOME THOUGHTFUL
[00:15:01]
EVALUATION OF HOW WE'RE DOING ON ALL THESE MARKET CHANGES.OR, UH, UM, SO FIRST OF ALL, I, I TEND TO AGREE WITH EVERYTHING YOU SAID.
UM, AND I WANT TO, UH, SUPPORT, UH, DISCUSSION AND EDUCATION ON ALL THE LISTED ISSUES.
AND THERE'S PROBABLY A WHOLE BUNCH MORE, UM, THAT I WOULD PUT IN ON THAT LIST IF I GET TO LOOK BACK AT THE YEAR.
UM, AND THE THINGS THAT I'M GONNA NEED TO INTERACT WITH, UH, TACK ON MY, MY QUESTION MORE IS, SHOULDN'T SHOULDN'T THE GOALS BE MORE FOCUSED ON WHAT YOU WANNA, UH, YOU KNOW, THE, THE TOPICS THAT, THAT YOU WANNA WORK ON AND NOT IN A GOAL SET AN ASSIGNMENT TO ERCOT STAFF OR, UH, THAT IT'S, IT'S THAT PART THAT I'M JUST WONDERING HOW THAT FITS IN TO A GOAL.
AND I'M SLIGHTLY WORRIED IT MIGHT BE MISINTERPRET IT.
WELL, I, I GUESS WE COULD HAVE THE FIRST PART, THE FIRST SENTENCE BE THE GOAL, AND THE SECOND SENTENCE BE A PARENT PARENTHETICAL THAT SAYS, THIS MAY INVOLVE INVITING ERCOT STAFF.
UM, CUZ THE FIRST PART IS THE GOAL, BUT A, AS I SAID, WE CAN'T DO THIS UNLESS WE WORK AS A TEAM TO DO THIS.
A AGAIN, I, I AGREE WITH YOU A HUNDRED PERCENT.
UM, I THINK WE WILL ON THE ERCOT SIDE FAIL IF WE DON'T, UH, INTERACT WITH YOU ON, ON THESE TOPICS AND OTHERS JUST TRYING TO NAVIGATE THE, UH, CIRCUMSTANCES THAT EXIST CURRENTLY.
IT'S MORE OF A QUESTION THAN ANY KIND OF DEMAND, MIKE WISE.
WAIT, I THINK ABOUT THIS CANON AND I, I, I SUPPORT THIS, UH, THIS ENDEAVOR AS WELL, BUT THE WAY I THINK ABOUT IT IS THIS IS SORT OF THE PLACE THAT WE CAN HAVE AND SHOULD HAVE, UH, THE OFFICIAL, UH, STAKEHOLDER DIALOGUE ON THESE IMPORTANT ISSUES.
AND I, I AGREE THAT, UH, INVOLVING AND INCLUDING ERCOT STAFF IS IMPORTANT ON MANY OF THESE ISSUES.
AND I AGREE WITH YOU THAT YOU COULD ADD TO THESE ISSUES AS WELL, BUT IT'S IN THE, IN THE LIGHT OF WHERE WE ARE RIGHT NOW.
I'M THINKING THAT HIGHLIGHTING THIS IS REALLY, UH, COULD BE IMPORTANT THAT WE HAVE THIS OFFICIAL DIALOGUE HERE AT, AT THE T RICHARD ROSS AND KENAN.
I DON'T THINK THEIR INTENT HERE IS TO JUST MAKE WORK FOR THE SAKE OF MAKING WORK, BUT MY QUESTION FOR YOU WOULD BE, WHAT DO WE DO TO AVOID GETTING TO JULY OF THIS YEAR AND NOT HAVING DONE ANYTHING ON THIS? AND THEN WE COME BACK AND HAVE THIS EXACT SAME CONVERSATION OF, YOU KNOW, WHAT DID WE MEAN BY THIS? I, SO I, I THINK THAT'S A FAIR QUESTION.
UM, I MEAN, UH, AGAIN, WHEN I WAS THINKING OF TACT GOALS, IT JUST SEEMS LIKE, UH, YOU, UH, HIGHLIGHT THE THINGS THAT ARE OF IMPORT TO YOU.
UM, SO TO ME IT'S THE, IT'S THE SUBJECT MATTER THAT'S OF IMPORT.
IF YOU WANT A GOAL THAT IS WORK MORE CLOSELY WITH ERCOT STAFF OR SOMETHING LIKE THAT, I WOULD MAKE THAT A SEPARATE, SEPARATE GOAL.
IF YOU WANT TO, UH, HAVE A GOAL THAT CREATES AN ASSIGNMENT TO ERCOT STAFF, THAT'S ALSO FINE.
UM, JUST SHARING WITH YOU THAT THIS COMES ACROSS SOMEWHERE BETWEEN A GOAL AND A ERCOT STAFF ASSIGNMENT, AND I'M TRYING TO NAVIGATE WHAT, WHAT, WHAT IS UP HERE, BOB HILTON.
I, YOU KNOW, I, I THINK THAT IT'S OKAY TO LEAVE OUT THE INVITE ERCOT STAFF OUT OF THE GOAL, UH, BECAUSE I THINK THAT'S IMPLICIT IN WHAT WE'RE GONNA BE DOING.
WHAT I THINK WE DO NEED TO ADD IS SOMETHING ALONG THE LINE THAT SAYS KIND OF WHY WE'RE DOING IT.
SUCH AS, AND I'M JUST THROWING SOME WORDS OUT HERE, YOU CAN COME UP WITH BETTER, YOU KNOW, THAT WE'RE REVIEWING THE MARKET DESIGN CHANGES AND RELIABILITY HAM, YOU KNOW, ENHANCEMENTS IMPLEMENTED FOLLOWING WINTER STORM URI, AND I GOT SOMETHING UP THERE AND I CAN'T READ IT OVER IT.
UH, AND SUBSEQUENT LEGISLATION, REGULATORY REQUIREMENTS TO ENSURE, YOU KNOW, UH, CONSISTENCY AT HOLISTIC MARKET DESIGN, SOMETHING TO MAKE SURE THAT WE'RE, THAT THE GOAL HERE IS TO ENSURE THAT THEY'RE BEING IMPLEMENTED AND THERE AREN'T
[00:20:01]
ANY CONFLICTS BETWEEN THE TWO.AND THAT, THAT WE'RE NOT CREATING ANY UNINTENDED CONSEQUENCES.
THAT'S THE TWO THINGS I THINK WE SHOULD BE LOOKING FOR IN AS A GOAL TO DO THAT.
AND I THINK THAT THAT WOULD, UH, BE CLEAR ON WHAT WE'RE TRYING TO DO.
AND I'M OKAY WITH LEAVING THAT.
I MEAN, LEAVING OUT THE, YOU LEAVE OUT THE ERCOT STAFF, YOU, YOU KNOW, INVITE ERCOT STAFF, BUT YOU COULD SAY AT EACH MEETING TACK, UH, YOU KNOW, UH, NEEDS TO REVIEW, YOU KNOW, NEEDS TO EDUCATE, REVIEW, AND DISCUSS ONE ADOPTED ELEMENT, INCLUDING STUFF ITEMS, YOU COULD LEAVE THAT IN THERE.
THAT'S OKAY, UH, IF WE REALLY WANNA DO IT EVERY MEETING.
UH, BUT THAT WAS JUST MY THOUGHTS ON THIS ONE.
YEAH, I WANTED TO GO BACK TO KIND OF THE QUESTION OF OUR GOAL HERE, MARK.
IS IT TO, I, I LIKE THE LANGUAGE, BOB JUST SAID THE ENSURE CONSISTENCY OF HOLISTIC MARKET DESIGN, BUT IT IS, IT KIND OF, YOU KNOW, IF THERE'S IMPROVEMENTS THAT NEED TO BE MADE BECAUSE I, I THINK A LOT OF THINGS WERE, WE, WE WERE IN A HURRY TO, TO FIX THINGS AFTER YURI.
AND SO IS THIS KIND OF, YOU KNOW, GET SMARTER AS THESE THINGS CONTINUE TO COME UP AND, AND MAKE ANY IMPROVEMENTS.
I, I THINK WHAT WE'RE TRYING TO AVOID IS IT SEEMING LIKE RANDOM HOMEWORK ASSIGNMENTS, YOU KNOW, LIKE THIS MONTH COME BRING THIS RANDOM TOPIC BACK.
BUT IS IT KIND OF A, AS WE'RE TRYING TO, THERE'S A GOOD POINT TO, YOU KNOW, REEVALUATE FIRM FUEL OR SOMETHING LIKE THAT.
THAT'S WHEN WE WANT THE EDUCATION AND THE GOAL IS TO MAKE IT BETTER IF THERE'S AN OPPORTUNITY TO MAKE IT BETTER.
I MEAN, I DON'T WANT, AND I DON'T THINK ANYBODY WANTS RANDOM HOMEWORK ASSIGNMENTS FOR ERCOT, YOU HAVE TOO MUCH IMPORTANT STUFF ON YOUR PLATE THAT NEEDS TO GET DONE FOR EVERYBODY.
UM, BUT WE'VE DONE SO MUCH, AND IN MY HEAD, I DON'T UNDERSTAND HOW IT ALL FITS TOGETHER AND HOW IT ALL PROVIDES BENEFIT TO, TO THE GRID AND TO THE CONSUMERS THAT I REPRESENT.
SO I'D JUST LIKE TO HAVE AT THIS TECHNICAL AND POLICY ADVISORY LEVEL, DEEPER UNDERSTANDING SO WE CAN HAVE DISCUSSION AND, AND MAYBE MAKE SOME RECOMMENDATIONS ABOUT HOW THINGS ARE WORKING OR WHAT NEEDS TO BE TWEAKED.
YEAH, SO, UH, IF, CAN I INTERJECT MYSELF OUT OF ORDER? UH, I'M, I APOLOGIZE.
UM, I MEAN, I'M HAPPY TO MORE BROADLY COMMIT TO HA WORKING WITH TAC LEADERSHIP AND HAVING LIKE A EDUCATIONAL ISSUE TO PRESENT ON AT EV AT EVERY TAC MEETING.
UM, I THINK THAT'S GOOD FOR ERCOT STAFF.
I THINK IT'S GOOD FOR STAKEHOLDERS, UM, TO DO THAT.
UM, AND THEY CAN WORK WITH Y'ALL ON WHAT THOSE TOPICS ARE.
UH, I THINK THAT WILL ALSO HELP US MOVE THROUGH SOME OF THE GEARS MORE EFFECTIVELY AS WE TRY AND WE'RE GONNA HAVE SOME TIGHT DEADLINES.
SO I, I THINK I'M GONNA HAVE SOME PERTINENT TOPIC EVERY T MEETING EITHER THAT WE WANT TO TRY AND GET AHEAD OF OR, UH, YOU KNOW, FOLLOW UP ON OR SOMETHING LIKE THAT.
SO I, I, I TOTALLY UNDERSTAND THE NEED AND I DON'T EVEN MIND THAT BEING LIKE A SEPARATE GOAL OR SOMETHING LIKE THAT.
I JUST WAS STRUGGLING WITH THE DYNAMIC OF THESE PARTICULAR ISSUES AND, AND HOW THAT ALL FITS IN.
SO I DIDN'T MEAN TO IMPLY ANY LACK OF VALUE, BOTH ON THE ERCOT END OR ON THE STAKEHOLDER END.
IT JUST, I WAS STRUGGLING WITH IT JUST AS A, AS GOAL LANGUAGE.
SO I THINK WE NEED TO ACCOMPLISH WHAT YOU HAVE UP HERE.
TELL, TELL ME HOW TO DO IT AND, AND WE'LL, WE'LL START WORKING ON THAT.
I THINK THERE'S SOME SYNERGIES THERE THAT CAN BE REALIZED AS WELL AND, AND PERFECTLY HAPPY TO WORK WITH YOU CANAN ON THAT.
SO IF YOU LOOK AT FIRM FUEL SERVICE, FOR EXAMPLE, THERE'S A REQUIREMENT TO PROVIDE AN ANNUAL REPORT TO TAC.
AND SO I THINK THAT'S A, A, YOU KNOW, A NATURAL, UH, POINT FOR ERCOT TO COME SPEAK WITH US ON THAT PARTICULAR ISSUE, 11 0 5, 11 0 8, YOU KNOW, NOW THAT THOSE HAVE BEEN IN PLACE OR, YOU KNOW, SINCE THEY'VE BEEN PASSED FOR A WHILE.
UM, E S O R D C, THERE MAY BE SOME NATURAL OPPORTUNITIES IN THERE AS WE'RE DOING OUR ROUTINE COURSE OF ANALYSIS THAT WE CAN, UM, MAYBE COUPLE THOSE UP AND PROVIDE THAT ADDITIONAL EDUCATION SESSION BECAUSE THEY, I THINK IT IS HELPFUL, UM, FROM A STAKEHOLDER PERSPECTIVE TO BE ABLE TO SEE THESE INDIVIDUAL ELEMENTS, UM, AND, AND DIVE INTO THEM ON A FAIRLY REGULAR BASIS BECAUSE THERE IS, THERE ARE ELEMENTS THAT STAKEHOLDERS DON'T NECESSARILY SEE THAT ERCOT IS PRIVY TO.
AND I THINK THERE'S CERTAINLY SOME BENEFIT OF, OF HAVING THAT EDUCATION CUZ NOT ONLY DOES IT HELP INFORM STAKEHOLDERS IN TERMS OF HELPING THEM MAKE BETTER DECISIONS HERE, BUT
[00:25:01]
IT HELPS US DEVELOP A BETTER WORK PRODUCT THAT IT ULTIMATELY GETS PASSED ON TO THE BOARD.IT, IT HELPS ERCOT STAFF ALSO.
UH, BOB HILTON, YOU'RE BACK IN THE QUEUE.
HEY, CANON, SOMETHING THAT, THAT, UH, I WAS THINKING ABOUT IS, I BELIEVE FROM TALKING TO BOB FLEX AND, UH, AND YOUR, YOUR INTERACTION WITH THE, UH, RELIABILITY AND, UH, MARKETS GROUP THAT HE HAS, THAT THEY KIND OF WANTED SOME TOPIC THAT YOU GUYS WOULD GO THROUGH ON A, YOU KNOW, ON A ONGOING BASIS.
AND MAYBE THIS COULD HELP FORM SOME OF THOSE INTERACTIONS WITH THE BOARD AND THE RMA, UH, RM AT THE R AND M BY HITTING THE SAME TOPIC, TOPIC ATTACK.
YOU'VE ALREADY GOT IT READY FOR THE BOARD.
THAT WAS JUST A THOUGHT THAT, YOU KNOW, I THOUGHT THEY WANTED ALSO.
NO, I, I ABSOLUTELY THINK THAT THERE'S SOME SYNERGIES THERE.
UM, ON 18 IS HOLISTIC SPELLED WITH A W DO WE NEED TO, HEY, CAN WE SPELL DAYS? I ACTUALLY DON'T KNOW, BUT I, I USUALLY TRUST COREY, BUT, UM, AND THE 19, EITHER SPELLING IS CORRECT, SO WE COULD CHOOSE OH, EITHER IS CORRECT.
WELL THEN I'M FINE WITH THE, THE W UM, ON 19, UM, LOOKING AT THIS LANGUAGE ON THE BIG SCREEN, I'M, I'M TRYING TO FIGURE OUT WHAT, IF NECESSARY MODIFIES RIGHT? UM, IS IT WHETHER THE, UM, ASSISTANCE FROM TAC IS, IS NECESSARY OR WHETHER THE BRIDGING SOLUTIONS ARE NECESSARY.
IF IT'S THE LADDER, I'M CONCERNED THAT THAT'S NOT QUITE RIGHT BECAUSE THE COMMISSION HAS ALREADY ORDERED THAT, SO I THINK IT WAS THE LATTER MORE SO, SO, ALL RIGHT.
COULD WE DELETE THAT THEN WE'RE OKAY WITH THAT? OKAY, THANKS.
AND JUST TO NOTE, UH, HOLISTIC WITHOUT THE W IS CONSISTENT WITH OTHER DOCUMENTS WE'VE GOT WITHIN OUR CUT, SO ANYHOW, SO WE'RE GOOD.
ANY OTHER DISCUSSION OR COMMENT ON 18 OR 19 IN PARTICULAR, OR THE GOALS IN GENERAL? OKAY.
SEEING NONE, IF THERE'S NO COMMENTS, WE'LL GO AHEAD AND ADD THIS VERSION TO THE, UH, COMBO BALLOT AND THEN WE WILL MOVE ON TO THE STRATEGIC INITIATIVES.
SO HAD A COUPLE OF DIFFERENT DISCUSSION POINTS I WANTED TO MAKE ON THIS IN PARTICULAR.
UM, AND, AND I, I DON'T WANT TO TEE THIS UP AND MAKE IT A PIT, MAKE, MAKE IT A POINT OF ARGUMENT NECESSARILY, BUT I GUESS THE FIRST POINT IS, IS DO WE REALLY NEED OUR STRATEGIC INITIATIVES? AND I KNOW THAT'S KIND OF A BOLD QUESTION, BUT WE REALLY LAY OUT A LOT OF THIS IN THE CONTEXT OF OUR GOALS.
SO WE DON'T HAVE AN OBLIGATION TO ADOPT STRATEGIC INITIATIVES.
AND SO WE CERTAINLY HAVE THE OPPORTUNITY IF WE OPT NOT TO, TO GO AHEAD AND, AND JUST DO AWAY WITH THE ADOPTION OF STRATEGIC INITIATIVES FOR TAC.
IF WE DO WANT TO CONTINUE WITH THESE, THAT'S PERFECTLY OKAY.
THIS IS NOT A HUGE POINT OF CONTENTION FOR ME, BUT I DID WANT TO RAISE THAT.
UM, I WOULD OPT TO NOTE THAT IF WE DO OPT TO CONTINUE WITH FIRST, HEY, I JUST, I, I'M NOT CALLING FOR NO REASON.
IT'S JUST SOMEBODY, SOMEBODY NEEDS TO MUTE THEIR, MUTE THEIR LINE.
IF WE DO OPT TO MOVE FORWARD WITH THESE, THERE'S A COUPLE OF ITEMS THAT HAVEN'T BEEN DISCUSSED IN A WHILE THAT I THINK WE MIGHT WANT TO CONSIDER WHETHER WE WANT TO KEEP THEM ON HERE, PARTICULARLY SWITCHABLE GENERATION, UH, WHICH IS THE THIRD BULLET POINT, AND THE LAST ONE ON THE GOOD CAUSE EXCEPTION RULES.
I THINK THEY'RE BOTH VERY, UM, IMPORTANT ISSUES TO DISCUSS, BUT WHETHER OR NOT WE WANNA MAKE THEM A STRATEGIC INITIATIVE FOR THIS YEAR IS, IS A, A QUESTION, AT LEAST IN MY MIND.
UM, AND WHETHER WE WANTED, UH, ON THE FOURTH BULLET POINT, WHETHER WE WANT TO DIVORCE DISTRIBUTED ENERGY RESOURCES FROM ENERGY STORAGE RESOURCES AND MAKE THOSE TWO SEPARATE BULLET POINTS.
UM, SO I ENVO INVITE, UM, FEEDBACK ON, ON ANY OF THOSE IF WE WOULD.
SO, BOB HILTON, YOU'RE IN THE QUEUE.
YEAH, I THINK I, I THINK THAT IDEA IS FINE.
I, THE REASON WE REALLY ADOPTED THESE TO THE BEST OF MY RECOLLECTION WAS JUST TO KIND OF SHOW PEOPLE WHAT THE MAIN PROJECTS WE WERE WORKING ON, BUT WE DO HAVE THE TAC ACTION ITEMS LIST AND AS LONG AS WE'VE GOT THESE CLEARLY INDICATED THERE, THEN I DON'T DISAGREE THAT THIS, UH, IS OKAY TO NOT HAVE.
[00:30:01]
COULD GO EITHER WAY ON THIS.OKAY, SO I HEAR A VOICE FROM BOB SAYING WE CAN JUST GO AHEAD AND, UH, ELIMINATE THIS.
I KNOW I'VE HAD SOME DISCUSSIONS WITH CAITLIN AND ERCOT STAFF.
I THINK THEY'RE FINE WITH ELIMINATING IT.
SO IS THERE ANY OBJECTION TO JUST ELIMINATING OUR STRATEGIC INITIATIVES AT THIS POINT? I'M SEEING NONE.
I'M SEEING OTHER MOTIONS THAT PROBABLY DON'T NEED TO BE REITERATED, BUT ANYHOW, SO
DO WE NEED A MOTION ON THAT? OKAY.
[5. Review of ERCOT Market Impact Statements/Opinions and IMM Opinions]
TO AGENDA ITEM NUMBER FIVE, ERCOT MARKET IMPACT STATEMENTS AND OPINIONS AND THE IMM UH, OPINIONS.UM, YEAH, ERCOT IS IN SUPPORT OF ALL OF THE REVISION REQUESTS THAT ARE BEING CONSIDERED ATTACK TODAY, AND WE HAD POSTED THE MARKET IMPACT STATEMENTS AS WELL.
UM, AND THE I M M LET US KNOW THAT THEY DO NOT HAVE AN OPINION ON ANY OF THE RE REVISER REQUESTS THAT ARE BEING CONSIDERED HERE.
ANY COMMENTS OR QUESTIONS? OKAY, SEEING NONE, WE WILL MOVE ON TO THE PRS
[6. PRS Report (Vote)]
REPORT.MARTHA MOUSE OR DOWN ON THE KEYBOARD? SHOULD HEY, DOWN.
MARTHA HENSON FROM ENCORE WITH THE PRS UPDATE.
UH, I HAVE THREE VOTING ITEMS FOR TAX CONSIDERATION TODAY.
ACTUALLY, ALL THREE OF THESE WERE UNOPPOSED AND ALL WERE SPONSORED BY ERCOT.
THE FIRST 1, 11 57, ADDS THE PUCS APPROVAL TO THE REVISION REQUEST PROCESS DESCRIBED IN THE PROTOCOLS, AND ALSO DESCRIBES SOME ADDITIONAL ELEMENTS THAT WOULD BE INCLUDED IN THE T REPORT SUCH AS THE IMM AND ERCOT OPINIONS ON THEIR REVISION 1158 ADDRESSES WEATHERIZATION INSPECTION FEES.
UM, SO I THINK IN 2021 THERE WAS AN NPR R THAT SET UP THIS WEATHERIZATION INSPECTION FEE PROCESS.
AND AT THAT TIME THERE WAS A SUNSET DATE ATTACHED TO IT, UM, TO ALLOW FOR CHANGES IN THE METHODOLOGY OF THESE ASSESSMENTS.
THE SUNSET DATE WAS ACTUALLY EXTENDED ONCE ALREADY IN 2022, BUT THIS NPR WOULD ACTUALLY ELIMINATE IT COMPLETELY.
UM, BASICALLY RETAINING THE, THE ORIGINAL PROCESS FOR ESTABLISHING HOW THOSE FEES WOULD BE ASSESSED.
THE NPR ALSO CHANGES THE INVOICING PROCESS FROM, UH, QUARTERLY TO SEMI-ANNUALLY.
AND THEN LAST HERE, 1159 IS ADDING, EXCUSE ME, RETAIL MARKET GUIDE REFERENCES INTO THE PROTOCOLS, UM, TO ADDRESS CERTAIN RETAIL TRANSACTIONS AND PROCESSES THAT MUNIS AND CO-OPS WHO HAVE OPTED INTO COMPETITION WOULD BE SUBJECT TO.
UH, MOST OF THE DETAILS OF THIS ARE ACTUALLY DESCRIBED IN THE RM G R R, UM, UNDER THE RMS UPDATE, WHICH IS NEXT ON THE AGENDA.
AND CLIFF, ALL THREE OF THESE WERE NO IMPACT.
UM, THAT BEING SAID, NPR R 1157, THERE ARE SOME ASSOCIATED GUIDE REVISIONS THAT ARE GONNA BE, UM, COMING ALONG.
AND SO I THINK WHAT WE'D LIKE TO DO IS GO AHEAD AND TABLE 1157, WAIT FOR THOSE ASSOCIATED GUIDE REVISIONS TO CATCH UP, BELIEVE AL SUBMIT URGENT STATUS ONCE THOSE HAVE CAUGHT UP, AND WE'LL PASS THOSE ALONG SUCH AS THEY'RE SUCH THAT THEY'RE IMPLEMENTABLE BY JUNE 1ST.
UM, THE OTHER TWO IN 1158 AND 1159 ARE READY TO GO.
SO IF THERE'S NO OBJECTION TO THAT PATH FORWARD FOR 1157 AND THEN MOVING 1158 AND 1159 FORWARD, THEN WE'LL GO AHEAD AND PLACE THOSE ON THE COMBO BALLOT.
ANY QUESTIONS, COMMENTS OR CONCERNS? ALL RIGHT, THAT'S WHAT WE'LL DO.
[7. RMS Report (Vote)]
THE NEXT AGENDA ITEM, WHICH IS THE R M S REPORT.APOLOGIZE FOR NOT BEING THERE IN PERSON.
LOOK FORWARD TO SEEING EVERYBODY NEXT MONTH.
THIS IS A QUICK UPDATE OF OUR VOTING ITEMS THAT WE HAD FROM OUR LAST MEETING.
WE APPROVED OUR WORKING GROUP AND TASKFORCE LEADERSHIP AND OUR GOALS, AND WE TOOK A LOOK AT THOSE AND WE BELIEVE THAT THEY ARE, UM, IN ALIGNMENT WITH WHAT THE, THE WORK THAT WE HAVE FOR 2023 AND SOME OF THE INITIATIVES THAT HAVE BEEN GOING ON LONGER TERM.
UM, WE DID MODIFY THOSE TO INCLUDE LUBBOCK POWER AND LIGHTS ENTRY INTO RETAIL COMPETITION, WHICH IS A BIG ACTIVITY GOING ON UNDER RMS RIGHT NOW.
UM, THERE WAS A TEXAS SET CHANGE CONTROL THAT, UH, IS ACTUALLY NEEDED BEFORE TEXAS 5.0.
SO IT WAS NOTED AS URGENT AND WE NEEDED IT IN PLACE
[00:35:01]
PRIOR TO LUBBOCK'S, UM, ENTRY INTO RETAIL MARKET COMPETITION.AND, UM, THEN WE HAVE, UH, BACK TO ONE OF THE COMMENTS, MARK JUST MADE THE IMPACT ANALYSIS, UH, FOR RM G R R 1 71, WHICH WAS INDEED NO IMPACTS.
AND, UM, I JUST WANTED TO NOTE THAT THAT RM, G R R AND THE ASSOCIATED NPR R 1159, THOSE ARE REALLY IMPORTANT AND THEY ARE LAYING SOME OF THE GROUNDWORK FOR WHAT WE WILL NEED WHEN LUBBOCK COMES INTO COMPETITION WITH RELATED TO, UM, PARTICULARLY THE POLAR METHODOLOGY AND, AND THE TEXAS TRANSACTIONS AND THE CONTINUOUS SERVICE AGREEMENT, WHICH, UM, IS KIND OF A BIG MODIFICATION FOR LUBBOCK, GIVEN THAT CURRENTLY THE MANAGEMENT COMPANY BETWEEN TENANTS IN A, UM, LIKE AN APARTMENT COMPLEX DEALS DIRECTLY WITH, UM, LUBBOCK.
SO IN THE FUTURE THEY'LL BE DEALING WITH THE COMPETITIVE RETAILERS, OR AT LEAST THAT'S THE CURRENT PLAN.
THIS IS A, UM, LOOK AT OUR 2023 WORKING GROUP AND TASKFORCE LEADERSHIP.
WE HAVE THE, UM, LUBBOCK RETAIL INTEGRATION TASKFORCE, THREE CO-CHAIRS COMING BACK.
WE HAVE THE PROFILING WORKING GROUP CHAIR, ST P IN PLACE.
WE HAVE A NEW VICE-CHAIR, UH, STEVEN PULLER WITH VISTRA, AND THIS IS STEVEN'S FIRST TIME TO BE, UH, IN RETAIL LEADERSHIP.
WE HAVE THE, UM, THREE RM TTF CO-CHAIRS COMING BACK AND, UM, FOR TEXAS F WE ALSO HAVE THE SAME LEADERSHIP.
AND FOR TEXAS DATA TRANSPORT WORKING GROUP, WE HAVE SHERRY WEEKEN, UH, WITH VITRA.
AND, UM, SHE HAS A NEW VICE CHAIR, WHICH IS MONICA JONES WITH CENTER POINT OH.
I DO HAVE, UM, A CORRECTION TOO, THE RETAIL MARKET TRAINING TASK FORCE.
WE HAVE MELINDA ERNEST WITH A E P, AND THIS IS HER FIRST TIME IN LEADERSHIP.
SO WE HAVE THREE NEW FOLKS AND, UM, WE'RE REALLY EXCITED ABOUT THAT.
I'M WANNA SHARE THE KNOWLEDGE.
OKAY, THESE ARE SOME OF THE ACTIVITIES THAT WE'RE WORKING ON, AND, UM, I'VE CONDENSED A LOT OF DETAIL.
THE LUBBOCK RETAIL IMPLEMENTATION TASK FORCE.
THEY'RE REALLY WORKING HARD TO DEFINE THE LUBBOCK MARKET TESTING PLAN AND EXACTLY HOW THAT IS GOING TO BE EXECUTED IN COMPLETION AND WHAT WE CONSIDER SUCCESSFUL CRITERIA.
UH, IN ADDITION, THEY'RE HEAVY INTO WORK ON MANAGING THE ACTIVITIES LIST AND KEEPING EVERYTHING IN CHECK WITH THE INTEGRATION TIMELINE.
PWG IS WORKING TO MINIMIZE THE ANNUAL VALIDATION ACTIVITIES AND ELIMINATE WEATHER SENSITIVITY.
THE ANNUAL LOW FILE, UH, I'M SORRY, ANNUAL PROFILE VALIDATION ACTIVITIES.
WHAT WE'RE LOOKING AT IS JUST SEEING WHAT WE CAN DO TO REDUCE THE AMOUNT OF EFFORT, BUT STILL, UM, PROTECT, UH, ALL OF THE DATA THAT NEEDS TO BE PROVIDED.
AND FOR ELIMINATING WEATHER SENSITIVITY.
WE WOULD, UM, ELIMINATE THAT GOING FORWARD AND IT WOULD NOT BE A RETAIL PROCESS IN THE FUTURE IF IT, IF THAT COMES TO FRUITION.
THE RETAIL MARKET TRAINING TASK FORCE, WE'VE BEEN BUSY.
WE'VE HAD THREE INSTRUCTOR LED TRAINING CLASSES, UM, WELL ATTENDED, UH, FOR TD TMS, THEY'VE DONE A DETAILED ANALYSIS MARKET TRACK ISSUE TYPES IN PARTICULAR, THE ADVERT GAIN.
AND, UM, THE INADVERTENT COUNTS ARE GIVEN BY REP, BUT NOT THE NAME OF THE REP, JUST A REP NUMBER.
AND THOSE ARE AVAILABLE, BUT SOME OF THE INADVERTENT COUNTS HAVE NOT DECREASED EVEN THOUGH THAT ANALYSIS HAS BEEN PROVIDED OR AVAILABLE TO THE REP FOR A LONG TIME LIKE YOURS.
AND, UM, WHAT THIS GROUP IS TRYING TO DO, THEY'RE TRYING TO WORK WITH ERCOT AND MAYBE, UM, CLIENT RELATIONS TO REACH OUT TO SOME OF THE REPS AND JUST TELL THEM THAT DATA'S AVAILABLE, JUST SO THEY KNOW BECAUSE, UM, THERE'S, THERE'S A REASON WHY SOME OF THOSE ARE, ARE SO HIGH OVER, UM, OVER OVER YEARS.
SO WE JUST REALLY WANNA DO WHAT WE CAN TO TRY AND MAKE AN IMPACT AND REDUCE THE NUMBER OF INADVERTENT GAIN AND TEXAS SET FOR 5.0.
UH, WHAT WE DID IS WE LOOKED AT CHANGING THE DATE AND, UM, MOVING IT TO A LATER IMPLEMENTATION TIME.
SO IT LOOKS LIKE THAT'S GONNA HAPPEN.
UH, IT WOULD JUST GO IN LATER IN 2024 INSTEAD OF MID 24.
AND THEY'RE ALSO LOOKING AT THE GETTING PROCESSES AND THEY'RE ALSO WORKING ON THE LUBBOCK TESTING, UH, TRYING TO DEFINE EXACT CRITERIA AND WHAT WOULD BE THE, UH, BEST USE OF THE MARKET PARTICIPANTS, THOSE THAT, THOSE CRS THAT ARE SIGNING UP TO TEST VOLUNTARILY.
SO WE ARE WORKING ON, ON A LOT.
THERE'S A LOT OF EFFORT GOING INTO THAT, THAT LUBBOCK TESTING BLIGHT.
ALL RIGHT, AND AS USUAL, WE HAVE TEXAS NEW MEXICO POWER COMPANY.
[00:40:01]
3G REMEDIATION COUNTS, AND UM, AS YOU CAN SEE, THEY HAVE MADE, UM, A LOT OF IMPROVEMENT OVER THE LAST, UM, COUPLE OF MONTHS.THESE ARE THE ACTUAL, UM, NUMBERS THAT WERE PROVIDED ON FRIDAY FROM ANDREA COUCH.
AND JUST TO SUMMARIZE, THEY'VE GOT, UH, 185,795 THAT HAVE BEEN DEPLOYED.
THOSE THAT ARE, THAT ARE NOT BEING CHANGED OUT PRETTY MUCH ARE DUE TO DENIAL OF ACCESS, AND WE TALKED ABOUT THIS LAST MONTH, BUT THEY HAVE, UM, SOME REALLY, I WOULD SAY, EXTREME CASES WHERE IT'S BEEN REALLY DIFFICULT TO EITHER GET TO THE METER OR THAT THE CUSTOMER DOES NOT WANT THEM, UM, OUT ON THEIR PROPERTY.
SO THEY'RE WORKING ON, THEY HAD TALKED ABOUT WORKING WITH THE AUTHORITIES, AND AS YOU CAN SEE, THEY'RE, UM, STARTING TO ASSESS A DENIAL OF ACCESS FEE.
SO WE WILL, UM, WE'LL HAVE TO SEE WHAT GOES ON, BUT IF THEY CAN'T MAKE A LOT OF PROGRESS, I THINK THAT YOU COULD BE LOOKING AT THESE REPORTS FOR A WHILE.
UM, THERE'S, UH, A CONCERN ABOUT THE NUMBER OF ESTIMATED METER READS IN THE 8 67 0 3.
THOSE ARE USAGE TRANSACTIONS AND, UM, SOME OF THOSE ESTIMATE ESTIMATES HAVE BEEN GOING ON FOR QUITE SOME TIME.
SO, UH, ANDREA DOES ATTEND RMS, UM, REMOTELY, AND SHE DOES PROVIDE US WITH A GOOD UPDATE, AND SHE HAS, UH, REALLY STRESSED THAT THEY'RE DOING EVERYTHING THEY CAN TO POSSIBLY GET THESE CHANGED OUT AS QUICKLY AS POSSIBLE, AND SHE'LL BE ATTENDING OUR NEXT MEETING.
THIS WAS A REPORT PROVIDED BY CARL AND, UM, IT'S, IT'S REALLY A GOOD PRESENTATION.
THERE'S A LOT OF DATA AND YOU REALLY HAVE TO GET SOMEONE TO, TO, I GUESS, INTERPRET, DECIPHER THE DATA FOR YOU AND, UM, HELP YOU UNDERSTAND, WE DID HAVE A LOT OF, UM, DISCUSSION AROUND WHAT THESE NUMBERS ACTUALLY MEANT AND HOW TO GET MORE COMPANIES, UM, TO RESPOND TO THE SURVEY.
UM, I DO RECOMMEND THAT IF THIS IS SOMETHING YOU'RE INTERESTED IN, TO TAKE A LOOK AT THE PRESENTATION, I THINK CARL HAS BEEN, UM, PROVIDING THIS, UH, INFORMATION TO OTHER SUBCOMMITTEES AS WELL.
I'M JUST, I'M JUST NOT EXACTLY SURE.
I SEE WE HAVE SOMEONE IN THE CHAT.
HEY, DEBBIE, THIS IS ACTUALLY A QUESTION I THINK FOR CANAN IS, I KNOW CARL DID HIS PRESENTATION AT RMS AND THEN I THINK, UM, DSW G SOME OTHER COMMITTEE SOMEWHERE.
I WAS WONDERING IF THE NEXT STOP ON CARL'S WORLD TOUR WOULD BE WMS ON MARCH 1ST SO THAT WE CAN, UM, DISCUSS THIS.
IT'S GREAT INFORMATION, ALWAYS IS.
CARL DOES A GREAT JOB AND, UH, I'D LOVE TO BE ABLE TO TALK MORE ABOUT IT AT WMS IF THAT'S THE PLAN.
SO, UH, NORMALLY THAT IS THE PLAN.
UM, I WILL DOUBLE CHECK AND, UH, MAKE SURE HE GETS ON THE WMS AGENDA.
I'LL BE LOOKING FOR THE CONCERT T-SHIRTS TOO.
DEBBIE, YOU, UH, IMPLIED THAT NOT ALL THE REPS RESPONDED TO THE SURVEY.
I, IS THAT WHAT YOU MEANT? UM, I BELIEVE THAT THEY'RE, I I THINK THAT'S ALWAYS THE CASE.
WE DON'T HAVE A HUNDRED PERCENT RESPONSE.
I THINK IT'S A PUC RULE REQUIREMENT THAT RETAILERS RESPOND TO THAT.
UM, YOU KNOW WHAT, LET ME ASK, DO YOU WANT ME TO GET WITH CARL OFFLINE AND GET BACK WITH YOU? YEAH, WE CAN COME UP.
IS W MESS OKAY, IF I CAN JUMP IN HERE? SURE.
I THINK, UM, THE PROTOCOLS REQUIRE REPS TO RESPOND IF THEY HAVE PRICE RESPONSIVE PROGRAMS. IF THEY DO NOT, THEY DON'T HAVE TO RESPOND.
AND I THINK CARL'S STATISTICS ARE TELLING US WHAT REPS HAVE PRICE RESPONSIVE PROGRAMS AND WHAT, AND ONES THAT DO NOT.
MAYBE WE CAN CLARIFY THAT IT, BUT I, I AGREE WITH YOU.
IF THAT'S NOT HAPPENING, IF THERE ARE REPS THAT ACTUALLY HAVE RETAIL DR PRODUCTS THAT ARE IGNORING THE SURVEY, THEN THAT IS A PROTOCOL VIOLATION AT THE, I THINK IT'S A PROTOCOL IN POTENTIALLY A RULE VIOLATION, BUT IT, IT, IT, IT'D BE GOOD TO, TO FIGURE THAT OUT AND KNOW WITH CERTAINTY WHETHER OR NOT THE NON-RESPONSE IS NON-RESPONSIVENESS OR A LACK OF A PROGRAM.
HOLD ON JUST A SECOND, DEBBIE.
SO, SO, UH, I MEAN, I, I THINK IT WOULD BE WORTHWHILE BRINGING THAT ISSUE UP AT WMS. OKAY.
[00:45:01]
UM, MY UNDERSTANDING IS CONSISTENT WITH, UH, WHAT BILL DESCRIBED.OUR UN UNDERLYING ASSUMPTION IS THAT REPS ARE COMPLYING IF THEY HAVE A PROGRAM.
UM, I DON'T, THE, I MEAN, IT'S, IT'S, REMEMBER IT'S PASSIVE RIGHT RESPONSE, RIGHT? SO IT'S VERY DIFFICULT TO, TO SOMEHOW, UH, IF, IF SOMEBODY DOESN'T WANT TO COMPLY, RIGHT.
UH, TO FIGURE THAT OUT, IT MIGHT BE WORTH CLARIFYING THE REQUIREMENT IF THAT'S THE CASE, TO SAY THAT AT MINIMUM YOU'RE REQUIRED TO RESPOND TO SAY THAT YOU HAVE NO PROGRAM.
AND THAT WAY WE WOULD KNOW WITH CERTAINTY WHETHER PEOPLE ARE JUST NOT RESPONDING OR DON'T HAVE A PROGRAM.
I MEAN, THAT, THAT IS NOT THE LANGUAGE IN THE PROTOCOLS.
BUT MAYBE TO THE EXTENT THAT IT, IT MIGHT BE WORTH CONSIDERING REVISING THAT, THAT LANGUAGE OF THE PROTOCOLS JUST TO, TO KNOW WHETHER OR NOT WE'D BE HAVING NON-RESPONSIVENESS OR NOT.
IT'S SOMETHING TO THINK ABOUT WITH WMS. OKAY.
UM, I'LL JUST TELL YOU THAT GETTING WHAT WE HAVE THROUGH WAS QUITE AN, A ADVENTURE AND A CHALLENGE.
UH, AND I DON'T KNOW IF WELL LET, LET'S TALK ABOUT IT AT WMS AND SOUNDS GREAT TO ME.
WE'LL SEE IF WE WANT TO GO DOWN, OPEN UP THAT, UH, CHALLENGING ADVENTURE AGAIN, I LIKE ADVENTURES COMMAND
KEVIN HAS, I LIKE TELLING YOU, SO I MET, I MISSED THE PRESENTATION FROM CARL AT RMS. I'M JUST CURIOUS IF THE LARGE FLEXIBLE LOADS IMPACT IS ALSO BAKED INTO HIS ANALYSIS OR NOT, OR IF IT'S SEPARATE.
UM, I DO BELIEVE THAT WE TALKED ABOUT LARGE FLEXIBLE LOAD.
I DO NOT, UH, REMEMBER ANY DETAILS OF THE CONVERSATION.
UM, WE CAN, UH, TALK ABOUT THAT AT WM MASTER.
I CAN REACH OUT TO CARL AHEAD OF TIME AND TELL HIM WE WOULD LIKE TO HAVE THAT DISCUSSION DURING THE UPDATE IF YOU LIKE.
CAUSE I'M BEEN CURIOUS IN TERMS OF, YOU KNOW, I KNOW I BELIEVE EVAN NEAL'S BEEN DOING A LOT OF WORK ON LOOKING AT THE OPERATION OF LARGE FOX EXPLODES.
MAYBE THEY HAVE A POWWOW BEFOREHAND TO MAKE SURE WE GOT OVERLAPPING ON.
I WILL CERTAINLY TAKE CARE OF THAT.
REACH OUT TO CARL AND, UM, TELL HIM 'EM WHAT WE'RE TALKING ABOUT AND WHAT WILL COME UP ON THE FIRST, UM, AT WMS. ALL RIGHT, DEBBIE.
UM, OUR NEXT MEETING IS GONNA BE MARCH 7TH, AND THAT AFTERNOON WE WILL HAVE THE LUBBOCK, UH, TASK FORCE MEETING.
AND SO WE HOPE YOU GUYS CAN JOIN US EITHER IN PERSON OR VIRTUALLY.
UM, WE HAVE, WE ALWAYS HAVE A GOOD DISCUSSION ON EACH ONE OF OUR TOPICS AND, UM, WE DO MAKE PROGRESS.
DEBBIE, YOU HAD GOALS FOR US TO APPROVE AT THIS MEETING AS WELL, CORRECT? YES.
IF YOU CAN PULL THOSE UP REAL QUICK.
WELL, WE TOOK A LOOK AT THESE AND WE DID NOT MAKE, UM, SIGNIFICANT MODIFICATIONS.
AND ON THE PIECE FOR LUBBOCK, IF YOU COULD LOOK AT GOAL NUMBER FOUR AND, UM, SEE HOW THAT WAS, THAT WAS CHANGED.
WE ADDED THAT JUST TO MAKE SURE THAT, THAT WE HAD, UM, NOT MISSED IT AND WE THOUGHT THAT WAS THE BEST PLACE FOR THAT.
UM, WE CONSIDERED A SEPARATE, UM, SPECIFIC GOAL DEDICATED TO LUBBOCK, BUT WE REALLY FELT LIKE IT WAS, UM, THAT TO JUST INCLUDED THERE AND THAT IT WAS VERY ACCURATE TO INCLUDE IT THERE.
THESE ARE, UH, THE SAME GOALS THAT WE HAVE.
UH, USUALLY EVERY YEAR WE DO, UM, REFRESH THEM, UH, AS YOU CAN SEE, LIKE THE UPDATES THAT WE JUST TALKED ABOUT ON ANNUAL LOAD PROFILING ASSIGNMENTS, UH, NUMBER 11 AND WEATHER SENSITIVITY.
WELL, IF WE, UM, GO AHEAD AND STOP WEATHER SENSITIVITY PROCESS REPORTING FOR IN 2023, THEN THAT WOULD BE SOMETHING THAT WE TAKE OUT NEXT YEAR.
BUT WE WOULD LEAVE MONITOR RETAIL LOAD, YOU KNOW, PROFILING VALIDATION STATUS.
SO THOSE ARE, UM, THESE ARE, WE BELIEVE THEY'RE ACCURATE AND, UM, THAT THEY ARE, UH, IN THE SCOPE OF, OF RETAIL MARKET SUBCOMMITTEE.
UM, BUT WE WELCOME TAX GUIDANCE AND FEEDBACK.
ANY QUESTIONS FOR DEBBIE ON THE GOALS? OKAY, SEEING NONE, WE WILL, UNLESS THERE'S ANY OBJECTION, WE'LL PLACE R M G R R 1 71 AND APPROVAL OF THE 2023
[00:50:01]
RMS GOALS ON THE COMBO BALLOT.ANY OBJECTIONS? UH, ROY, UH, IT DID HAVE A POINT.
SO WITH THE ELIMINATION OF STRATEGIC INITIATIVES AT TACT, THEY SHOULD BE REMOVED FROM THE R M S GOALS.
UH, WHAT ITEM WAS THAT? THANK YOU.
YEAH, WE'LL GO AHEAD AND STRIKE THAT.
SO WITH THAT MODIFICATION, UH, SEEING NO OBJECTIONS TO THAT, WE'LL GO AHEAD AND PLACE THAT ON THE RMS CALLS.
GO AHEAD AND PLACE ALL THAT ON THE COMBO BALLOT AND WE WILL MOVE ON TO THE
[8. ROS Report]
RO OS REPORT.I WAS JUST WAITING FOR COREY TO PULL THAT UP FOR US.
SO YOU CAN GO TO THE NEXT SLIDE, PLEASE.
SO THERE ARE NO VOTING ITEMS FOR, FOR TAX TODAY FROM ROSS, AND YOU CAN MOVE ON TO THE NEXT SLIDE.
DID WANT TO GIVE YOU AN UPDATE ON SOME OF OUR RECENT ACTIONS.
UM, NO, 2 45, UM, WAS TABLED AND REFERRED TO SEVERAL DIFFERENT, UM, WORKING GROUPS.
I SUSPECT THAT THIS ONE'S GONNA BE SOMETHING THAT, UH, GETS A LOT OF INPUT.
UM, AND, AND THEN WE HAVE SOME, UM, OPENINGS FOR SOME VICE CHAIR ROLES, SEVERAL WORKING GROUPS.
SO IF ANYONE'S INTERESTED IN SERVING IN THOSE ROLES, UH, PLEASE REACH OUT TO CHASE OR MYSELF OR, UM, WHOEVER'S LEADING THOSE, THOSE WORKING GROUPS.
AND THEN ON THE TSAT MODEL UPDATES, IT'S BEEN KIND OF A STANDING UPDATE, BUT IT LOOKS LIKE WE'RE ACTUALLY MAKING SOME GOOD PROGRESS ON THIS.
APPROXIMATELY 89% OF THE IBR HAVE, UM, ACCEPTED TSAT MODELS AT THIS POINT.
AND FROM THERE WE CAN MOVE ON TO THE NEXT SLIDE.
SO THIS IS JUST OUR, UM, SORT OF STANDING LISTS OR REVISION REQUESTS THAT ARE AT ALL OF OUR WORKING GROUPS RIGHT NOW.
AND THEN YOU CAN MOVE ON TO THE NEXT SLIDE.
SO WMS AND ROSS HELD A JOINT WORKSHOP ON FEBRUARY 6TH.
UM, WE HAD FOLKS FROM VISTAS STUCK TCEQ AND ERCOT TALK ABOUT POTENTIAL COSTS RESULTING FROM THE RETIREMENT OF CERTAIN UNITS ACROSS THE STATE.
UM, ACCOUNTING FOR THE VALUE OF CREDITS AND RELIABILITY CONCERNS FROM A PLANNING PERSPECTIVE.
AND THERE ARE SEVERAL ITEMS THAT I NOTED THAT NEED TO BE ADDRESSED.
AND SO WE'RE STILL TALKING ABOUT THAT AMONGST WMS AND ROSS LEADERSHIP AND ERCOT STAFF.
SO LOOK FOR US TO BE BRINGING SOME SORT OF REPORT AT A FUTURE TAC MEETING.
UM, AND WITH THAT, I WILL MENTION THAT OUR NEXT MEETING IS MARCH 2ND.
ANY QUESTIONS FOR KATIE? OKAY.
[9. WMS Report]
ON TO THE W M S REPORT.ERIC BLAKEY WITH PER ELECTRIC CO-OP HERE WITH THE WMS REPORT.
A FEW THINGS, UH, BEFORE I GET STARTED, THE DISCUSSION YOU JUST HAD ON ERIC, REAL QUICK, IS YOUR MIC ON OR IT IS SCREEN? YEAH.
IS THAT BETTER? THAT'S BETTER, YEAH.
UH, JUST TO, JUST TO SAY ON THE, THE, UH, AGENDA ITEM, WE WILL ADD THAT, UH, DR.
WE'RE HAVING A PLANNING MEETING TODAY, SO, UM, VERY TIMELY.
UM, I WILL ENCOURAGE YOU TO REVIEW THE PRESENTATION THAT CARL HAD.
THERE'S SOME RECOMMENDATIONS, UH, FOR A WINTER REPORT AND SOME OTHER CHANGES.
SO WHEN WE TALK ABOUT CHANGES TO THE O B D R, YOU MIGHT WANT TO CONSIDER SOME OF THESE OTHER CHANGES AS WELL.
BUT, UH, TO MY REPORT, WE HAD A, UH, MEETING ON FEBRUARY 6TH.
IT WAS DELAYED A FEW DAYS BECAUSE OF THE WINTER STORM, AND WE HAD IT, UH, ONLINE SO THAT WE COULD, UH, GET SOME ITEMS OUT, UH, FOR CONSIDERATION.
UH, WE DO NOT HAVE ANY VOTING ITEMS TODAY, UH, BUT I'LL GIVE A REPORT ON TABLED REVISION REQUESTS, UH, UPDATE ON THE REPORTS FROM ERCOT ON OPERATION AND MARKET ITEMS, UH, SOME OTHER WMS DISCUSSIONS AND, AND THE WORKSHOP THAT KATIE MENTIONED.
SO THESE ARE THE ITEMS WE HAVE TABLED.
THE, THE ONE I'LL I'LL HIGHLIGHT IS NPR 1145.
WE DID, UH, ENDORSED THAT WITH ERCOT COMMENTS AND ON, UH, THE V C M R R 0 3 3, WE HAD A REALLY GOOD DISCUSSION, UH, ABOUT THOSE FUEL COST ADDERS.
AND, UH, ULTIMATELY I BELIEVE LUMINANT IS,
[00:55:01]
UH, WORKING ON SOME COMMENTS THAT WILL BE BRINGING FORWARD AS FAR AS THE OPERATION AND MARKET ITEMS. UM, AND THEN MY REPORT, YOU CAN HAVE QUICK LINKS TO ALL OF THESE, UH, BUT WE HAD A REPORT FROM, UH, ERCOT ON THE ANNUAL UPDATE TO THE CONGESTION REVENUE RIGHTS ACTIVITY CALENDAR.UH, WMS IS RESPONSIBLE FOR REVIEWING AND APPROVING THIS CALENDAR, AND, AND, UH, WE DID APPROVE THAT THE, UH, 2022 Q4 SETTLEMENT STABILITY REPORT WAS PRESENTED BY ERCOT.
UH, THE 2022 Q4 UNREGISTERED DG REPORT WAS PRESENTED, SHOWED 1,972 MEGAWATTS OF DG.
UH, AS OF Q4 2022, THIS IS A CHANGE OF 182.9.
SINCE THE Q3 REPORT, WE HAD A ANALYSIS, UH, IDENTIFYING THE HOURS OF HIGHEST RELIABILITY RISK.
THERE HAD BEEN SOME QUESTIONS IN JANUARY AND ERCOT, UH, BROUGHT UP, UH, AN UPDATE AND A REPORT ON THAT.
AND WE HAD A CONTINGENCY RESERVE SERVICE READINESS, UH, UPDATE BY MATT MIK.
I BELIEVE HE'S GIVING A, AN UPDATE TO TACK ON THAT ISSUE TODAY.
WHAT DID THAT DO? I THINK I PUSHED A BUTTON.
SOMETIMES THE ONCE IT, ONCE IT THINKS YOUR MOUSE IS OVER HERE, IT WANTS TO LET YOU WORK OVER HERE, SO JUST GET THE MOUSE OVER HERE, CLICK ONCE AND NOW YOU'RE, NOW YOU'RE IN.
UH, AGAIN, KATIE MENTIONED THE, THE WORKSHOP WE HAD ON CASPER ALLOWANCES.
I THOUGHT THAT WAS REALLY GOOD AND REALLY APPRECIATED ALL THAT HAD PRESENTATIONS FOR VISTRA, UH, DOING WHAT THEY DID TO, TO EDUCATE ON THE, ON THE ISSUES THAT ARE COMING FORWARD.
UH, WE HAD TCEQ INVOLVEMENT AND I THOUGHT THAT WAS VERY HELPFUL, UM, ERCOT AND ST AND WE JUST REALLY APPRECIATED THE, THE DISCUSSION AND, AND IDENTIFYING THE ISSUES THAT WE'RE GONNA NEED TO ADDRESS POTENTIALLY GOING FORWARD.
WE, UH, WINTER STORM ELLIOT, YOU MAY RECALL THE LAST TAG MEETING.
THERE WAS A LOT OF DISCUSSION AND ABOUT, UH, TACK SHOULD LOOK INTO THIS AND, AND CERTAIN COMMENTS WERE MADE.
I DON'T KNOW THAT TACK EVER OFFICIALLY GOT AN ASSIGNMENT.
I THINK, UH, WE WERE LOOKING TO CALVIN TO PERFORM SOME FORECAST ANALYSIS, SOME OF THE RFIS TO BE, UH, FINALIZED AND REVIEWED.
SO, UH, WMS HAS NOT ACTUALLY TAKEN ANY ACTION YET ON THIS, BUT WE ARE, WE STAND READY TO DO WHATEVER TAC WOULD LIKE FOR US TO DO.
UH, AND THEN JUST BRIEFLY, THE MARKET CREDIT WORKING GROUP, UH, WE'RE GONNA HAVE A REPORT ON THAT.
WE DID DISCUSS, UM, THEIR, THEIR, UH, UH, EXISTENCE GOING FORWARD.
SO, UH, WITH THAT, I WILL BE HAPPY TO ENTERTAIN ANY QUESTIONS YOU MIGHT HAVE.
ANY QUESTIONS FOR ERIC? ALL RIGHT, NO QUESTIONS.
[10. Market Credit Working Group (MCWG) Report (Possible Vote)]
UP, AS ERIC ALLUDED TO, IS A DISCUSSION AND A PRESENTATION FROM LORETTA AS IT PERTAINS TO THE MARKET CREDIT WORKING GROUP AND THE FORMATION OF A NEW, UH, ENTITY TO, TO, UH, REPLACE THE CREDIT WORKING GROUP.SO OF COURSE THE CREDIT WORKING GROUP HAS BEEN DECOMMISSIONED.
UM, LAST MONTH AT THE MARKET CREDIT WORKING GROUP, WE, WE DISCUSSED WHAT WE'RE GONNA DO.
WE'RE WANT TO CALL OURSELVES THE FINANCE CREDIT GROUP OR SOMETHING TO THAT EFFECT, JUST TO DISTINGUISH FROM THE PREVIOUS GROUPS THAT HAVE BEEN IN, UM, BEEN ACTIVE IN THE MARKET.
THE KEY QUESTION OR NOT IS TO WHETHER WE ARE A VOTING BODY.
THE MARKET PARTICIPANTS BELIEVE THAT IT'S NECESSARY TO HAVE EQUAL VOTING ALONG THE GROUPS BY MARKET SEGMENTS IN ORDER TO HAVE A, A FAIR VOTING STRUCTURE SO THAT THERE'S NO SINGLE MARKET OR SINGLE GROUP TRYING TO PROMOTE THEIR INTERESTS.
UM, MARKET PARTICIPANT PARTICIPANTS FROM AUSTIN ENERGY, DC ENERGY, ENERGY, TENASKA, L C R A AND OTHERS ARE WORKING ON A NEW CHARTER.
AND WE WANNA PRESENT IT AT THE, UH, MARCH 15TH MARKET CREDIT WORKING GROUP AND HAVE IT READY TO GO AND VOTE ON THAT.
ERCOT HAS SAID THAT THEY SUPPORT THE GROUP WITHOUT A VOTING STRUCTURE.
AND THEN JUST REPORTING DIRECTLY TO TAC THERE'S CONCERNS ABOUT MAINTAINING A
[01:00:01]
QUORUM.PREVIOUSLY, THE CREDIT WORKING GROUP QUORUM WAS ESTABLISHED AT ONE MARKET PARTICIPANT FOR FOUR OF THE, OF THE GROUPS.
IF THAT WE HAD THAT, WE HAD A QUORUM AND WE'D LIKE TO KEEP IT AT THAT LEVEL.
SO IF WE HAVE FOUR DIFFERENT MARKET PARTICIPANTS FROM FOUR DIFFERENT SEGMENTS, WE HAVE A QUORUM.
UM, BUT ERCOT HAD CONCERN ABOUT MAINTAINING THE QUORUM AND THE HIRED RECORD KEEPING THRESHOLDS AND OTHER ADMINISTRATIVE REQUIREMENTS FOR A VOTING BODY.
ERCOT STAFF NOTED THAT THE DECISION IS UP TO THE GROUP AND SAYS THAT THEY WILL HELP US DO WHAT NEEDS TO BE DONE TO ESTABLISH THE NEW GROUP OR COMMITTEE.
DO WE WANT TO DISCUSS THAT NOW OR AT THE END? WE CAN TEE THAT UP AT THE END, IF YOU DON'T MIND, LORETTA.
WE REVIEWED THREE NPRS AND ALL OF THEM WERE OPERATIONAL, SO THERE WAS NO ISSUES WITH US HAVING TO CONSIDER ANYTHING NEW FOR CREDIT IMPLICATIONS.
THERE WAS ONE THAT ABOUT THE, THE NEW 1156, ABOUT THE PRIORITY REVISION REQUEST PROCESS.
AND WE WANNA MAKE SURE THAT ANYTHING THAT GOES THROUGH THAT PROCESS DOES COME THROUGH CREDIT GROUP TO MAKE SURE THAT WE MAKE THAT EVERYTHING IS AS IT NEEDS TO BE FOR CREDIT.
UM, WE ALSO DISCUSSED A N G PROPOSED CHANGE TO A CREDIT CALC N PROPOSAL CHANGE TO THE, UM, FORD ADJUSTMENT FACTORS TO SEE.
WE WANTED ERCOT TO ANA ANALYZE IT TO SEE IF THERE WAS ANYTHING THAT WE COULD TWEAK THERE TO MAKE IT A LITTLE BIT BETTER.
AND, UM, ERCOT PRESENTED THE, THE ANALYSIS THEY HAD DONE ON THE EXISTING TPE FORMULA, AND ERCOT DOES NOT SUPPORT THE PROPOSED CHANGES BECAUSE IT LOWERS THE COLLATERAL CUSHION THAT IS THERE AND THEY DON'T WANNA MAKE THE CHANGE.
SO, AND THEN THE, THE PRESENTATION HIGHLIGHTED CERTAIN HISTORICAL INSTANCES WHERE INVOICE EXPOSURE EXCEEDED COLLATERAL OBLIGATIONS.
SO WE AS A GROUP AND ERCOT ARE GOING TO LOOK AT THOSE INSTANCES AND MAKE SURE THAT THE CREDIT CALCULATIONS ARE ACTING AND BEHAVING LIKE THEY SHOULD BE SO THAT THERE'S NOT AN EXPOSURE GAP IN THE COLLATERAL.
UM, WE REVISITED NPR 1146, UM, DC TIE TRANSITIONING IMPORT INTO ERCOT AND WHETHER OR NOT THE UNBUILD REALTIME AMOUNT IS, IS BEING CALCULATED.
UM, PROPOSED THE PROPOSAL WANTED TO REMOVE THE UNBUILD REALTIME AMOUNT FROM THE MAX FUNCTION, AND ERCOT DOES NOT SUPPORT MAKING THIS CHANGE, ERCOT SUPPORTS MAINTAINING THE EXISTING METHODOLOGY, BUT WE WILL CONTINUE TO REVIEW IF THERE'S WAYS WE CAN TWEAK TO GET THAT ACTIVITY IN.
UM, YEAH, WE'VE DISCUSSED THAT.
I DID WANNA SPEND A MINUTE ON NR G'S PROPOSED CHANGE, JUST SO FOR THE BENEFIT OF ATTACK MEMBERS, WHY THAT WAS PROPOSED AND WHAT WE NOTICED, UH, MANY, MANY MOONS AGO WHEN WE IMPLEMENTED NPR R 800, WHICH ESTABLISHED, UM, I STILL BELIEVE I'M ONE OF THE MORE INNOVATIVE, UM, CREDIT EXPOSURE CALCULATIONS IN ORGANIZED POWER MARKETS, WHICH UTILIZES FORWARD PRICES, WHICH ARE THE MOST INDICATIVE, UH, REFLECTION OF WHERE FUTURE MARKET RISK IS.
WHEN WE DID THAT, UM, WHICH CALCULATE, WHICH CREATED THE FORWARD ADJUSTMENT FACTOR, THERE WAS A LOT OF DEBATE BACK AT THE TIME AS TO WHAT THE FORWARD ADJUSTMENT FACTOR SHOULD APPLY TO, WHETHER IT'S YOUR ACTUAL INVOICE EXPOSURE OR IF IT'S THE, WHAT'S CALLED THE LOOK BACK AMOUNT, WHICH IS, UH, THE HIGHEST ACTUAL INVOICE EXPOSURE AS, AS EXPRESSED THROUGH THE RT, L E, WHICH I'M NOT GONNA GET INTO THE, THE WEEDS OF THE CREDIT METHODOLOGY.
UM, THE LOOKBACK TAKES THE HIGHEST INVOICE EXPOSURE EXPRESSED TO THE E UH, R T L E FOR THE LAST 40 DAYS.
AND WHAT THIS PROPOSAL, UM, IS SUGGESTING IS WE TAKE A, A LOOK AT IS WHETHER THAT'S APPROPRIATE OR NOT, MEANING YOU WOULD BE APPLYING FORWARD PRICES ADJUSTMENT TO FORD BASED ON FORD PRICES TO ACTUAL INVOICE EXPOSURE THAT MAY BE 40 DAYS OLD.
AND WHAT WE'RE ALWAYS SEEKING TO ACHIEVE THROUGH THE CREDIT EXPOSURE METHODOLOGY IS AN ACCURATE REPRESENTATION OF MARKET RISK.
AND IN THAT CASE, YOU COULD, THERE ARE, IS THE POTENTIAL FOR YOU TO BE APPLYING FORWARD PRICES TO AN ACTUAL EXPOSURE THAT IS NO LONGER, UM, REFLECTIVE OF MARKET CONDITIONS AT THAT POINT.
SO THAT'S WHY WE'RE TAKING A CLOSE LOOK AT THIS.
WE APPRECIATE, UM, ST CHEERS TEAM DIGGING IN, PROVIDING ANALYSIS, UH, WHICH I THINK WE'RE GONNA CONTINUE TO LOOK AT AT THE NEXT CREDIT WORKING GROUP MEETING.
[01:05:01]
OF CONTINUOUS IMPROVEMENT IN TERMS OF ACCURACY OF THE CREDIT EXPOSURE METHODOLOGY, BUT ALSO BALANCING ERCOT APPROPRIATE VIEW THAT THERE NEEDS TO BE A LEVEL OF CONSERVATISM IN THERE.I JUST WANTED TO SET THAT, LAY THAT OUT FOR FOLKS TO THINK ABOUT OVER THE NEXT FEW MONTHS AS WE TALK ABOUT THIS.
ERIC, ACCURATE CREDIT IS A ALWAYS A GOOD THING AND I THINK THAT MAKES SENSE TO CONSIDER.
UM, I'M, UM, NOT INDIFFERENT TO ERCOT POINT THAT THE GOAL IS TO BE CONSERVATIVE, BUT ACCURATE.
AND I, I DON'T KNOW THAT WE'VE, UM, TAKEN A FRESH LOOK AT, UM, GENERATOR NETTING, UH, SINCE WINTER STORM URI.
UM, AND SO IF WE'RE GONNA KIND OF RAISE AND LOWER IT, THAT MIGHT BE SOMETHING THAT COULD BE, YOU KNOW, PART OF A, A BIGGER PACKAGE OF CHANGES.
UM, SO, UM, I JUST WANTED TO PUT THAT ON THE TABLE AS SOMETHING TO CONSIDER.
I MEAN THE, THIS PROPOSAL REALLY KIND OF BRINGS UP, UM, THE ELEMENT OF THE EXPOSURE CALCULATIONS THAT WE'VE DEBATED FOR A LONG TIME.
IT'S A LOOK BACK, RIGHT? WHAT'S THE APPROPRIATENESS OF HANGING ON TO SOMETHING THAT WAS POTENTIALLY IN THE SUMMER WHEN WE'RE NOW IN THE FALL? AND THE, JUST THE, THE MARKET RISK DOESN'T, ISN'T REPRESENTATIVE OF THAT, BUT THAT WE AGREED TO KEEP THAT COMPONENT IN THE METHODOLOGY TO MAKE SURE THAT WE ARE LEANING CONSERVATIVE IN TERMS OF COLLATERAL REQUIREMENTS.
UM, AND I'M NOT SAYING REMOVE THE LOOK BACK COMPONENT.
I'M SAYING IF WE'RE GOING TO USE A FORD ADJUSTMENT FACTOR THAT TODAY, IS IT APPROPRIATE TO ALSO APPLY IT TO INVOICE EXPOSURES FROM A MONTH AND A HALF AGO? BUT I MEAN, IT'S BEEN A GOOD DEBATE SO FAR.
UH, WE APPRECIATE AIRCRAFT'S PARTICIPATION, UM, AND THE ANALYSIS THEY DO FOR US.
BUT JUST WANTED A COMMITTEE TALK TO UNDERSTAND WHERE THIS WAS COMING FROM AND WHAT WE'RE LOOKING AT.
YEAH, THE QUESTION IS LIKE, WHAT IS THE, IF YOU'RE USING A FORD PRICE, WHAT IS THE QUANTITY THAT YOU SHOULD BE USING FOR THAT FORD PRICE? YEAH, EXACTLY.
THE OTHER THING I WANTED TO BRING UP BASED ON THAT IS WHEN WE WERE LOOKING AT THE ANALYSIS THAT ERCOT PREPARED, WE WANTED ERCOT TO DOUBLE CHECK HOW THEY'RE PRESENTING THE ANALYSIS TO THE CREDIT WORKING GROUP AND THAT WE'RE GETTING, UM, ACCURATE TIMING OF EVERYTHING ON THE GRAPHS AND MAKING SURE THAT WE'RE, CUZ SOME OF THE WAYS IT LOOKS, WE'VE GOT A LITTLE BIT OF A POSSIBLE INVOICE EXPOSURE BEFORE CREDIT ESCALATES TO COVER THAT.
AND WE WANNA MAKE SURE THAT THE CREDIT CALCULATIONS ARE DOING AND, AND ACTING LIKE THEY SHOULD BE.
SO WE WILL BE DIGGING INTO THAT NO MATTER WHAT WE'RE CALLED
AND THEN THE OVERALL CREDIT REVIEW IS MARKET WIDE.
TOTAL POTENTIAL EXPOSURE INCREASED FROM 1.44 BILLION IN DECEMBER TO 1.6 BILLION IN JANUARY, 2023.
T P E EX, UH, INCREASED MAINLY DUE TO THE HIGHER REALTIME ANDEA AHEAD SETTLEMENT POINT PRICES IN LATE DECEMBER, 2022.
AND THAT FACTORED INTO THE REALTIME LIABILITY EXPOSURE IN JANUARY 23.
DISCRETIONARY COLLATERAL IS DEFINED AS THE SECURED COLLATERAL THAT IS POSTED IN EXCESS OF T P E C R R LOCKED ACL AND DAM EXPOSURE.
AND THE AVERAGE DISCRETIONARY COLLATERAL DECREASED FROM 3.78 BILLION IN DECEMBER TO 3.38 BILLION IN JANUARY.
AND IT'S BASICALLY DUE TO, UH, A DECREASE IN SECURED COLLATERAL.
AND, UM, ERCOT SAID THERE WAS NO UNUSUAL COLLATERAL CALL ACTIVITY DURING THE PERIOD.
SO, UM, KEVIN, IS IT PERTAINING TO THIS LAST SLIDE OR PERTAINING TO THE CREATION OF THE NEW SUBGROUP? IT, IT'S MORE GENERAL COMMENT OF CLEARLY THE COMMISSION IS GOING THROUGH, FIGURING OUT IN TERMS OF PHASE TWO, WHAT WE'RE GOING WITH IN TERMS OF MARKET STRUCTURE.
THERE'S A LOT OF PROPOSALS ON THE TABLE, THERE'S ONE ADOPTED RIGHT NOW.
AT WHAT POINT DO WE NEED TO START LOOKING AT THE CREDIT IMPACTS OF THESE DIFFERENT PROPOSALS? I THINK THAT'S A FAIR QUESTION.
KAAN, DID YOU WANT TO ADDRESS OR SO ARE, UH, LEMME MAKE SURE I UNDERSTAND THE QUESTION.
ARE YOU ASKING THESE NEW PROPOSALS CREDIT IMPACTS? YEAH, I'M JUST SAYING FOR INSTANCE, YOU KNOW, LET'S, YOU KNOW, WE'LL JUST, WE'LL TAKE THE, YOU KNOW, E THREE REPORT AND THE MAGICAL $5.7 BILLION FOR THAT MARKET THERE, AND I'M SURE THERE'S GONNA BE CREDIT IMPLICATIONS
[01:10:01]
AROUND THAT.AND SO AGAIN, WHETHER THAT'S FINALLY DECIDED TO BE IMPLEMENTED OR NOT, THE ISSUE IS THERE'S GONNA BE CREDIT IMPLICATIONS TO THE MARKET ASSOCIATED WITH IT.
SO I, I MEAN, WE'RE LOOKING AT THOSE.
I WOULD RECOMMEND THAT STAKEHOLDERS, UM, MAKE SURE WHEN THEY FILE COMMENTS ON VARIOUS MARKET DESIGNS REFLECT THEIR, UM, THEIR PERSPECTIVE ON, ON CREDIT.
I THINK, UM, I, I THINK THERE IS A CHALLENGE THERE, THERE ARE ELEMENTS THAT MAY REDUCE CERTAIN COLLATERAL CALCULATIONS, BUT THERE'LL BE NEED TO BE A NEW COLLATERAL, UH, REQUIREMENT, UH, ASSOCIATED WITH AT LEAST SOME OF THE, THE PROPOSALS.
SO, UM, I THINK THAT'S AN ONGOING PROCESS.
UH, UH, I MEAN, IF, IF IT'S, IF YOU'RE LOOKING FOR A CALCULATION FROM ERCOT CURRENTLY, I THINK IT'S A LITTLE EARLY.
I DO THINK THAT IS SOMETHING WE NEED TO SHARE WITH STAKEHOLDERS, UH, AT SOME POINT IN THE FUTURE.
SO I'M NOT SURE I GAVE YOU YOU A GREAT ANSWER, BUT ARE WE DEFERRING IMPLEMENTATION DISCUSSION LIKE THAT UNTIL THE LEGISLATURE WEIGHS IN? ISN'T THAT WHERE WE'VE LEFT IT AT THE PFC? I, I, I WOULD SAY WE'RE DEFERRING THAT KIND OF IMPLEMENTATION DISCUSSION UNTIL WE KNOW THE DETAILS AROUND WHAT WILL BE, UH, DOING MORE SPECIFICALLY.
UM, SO, AND I'LL JUST GIVE YOU, UH, ONE EXAMPLE TO MAYBE HELP AT LEAST COLOR THAT.
SO, UH, IF WE WERE TO KIND OF CREATE SEASONAL PCM CURVES AND SETTLE THINGS SEASONALLY, THAT MIGHT CREATE A DIFFERENT COLLATERAL REQUIREMENT THAN ANNUALLY.
UM, SO THERE'S THAT, THAT'S JUST ONE EXAMPLE, BUT, UM, EVEN SOME OF THESE BRIDGE SOLUTIONS MAY REQUIRE SOME CHANGE IN COLLATERAL REQUIREMENTS.
SO I, I WOULD SAY SOME OF THEM MIGHT NEED TO BE ELEVATED TO THE GROUP SOONER RATHER THAN LATER.
AND OTHER ONES, UH, PROBABLY NEED TO, UH, WAIT FOR THE COMMISSION TO WEIGH IN ON, ON THE POLICY SIDE BEFORE WE, YOU KNOW, RUN OFF AND, AND START TRYING TO COLLATERALIZE SOMETHING.
SO, UH, ROY, I SEE YOU'VE GOT A COMMENT IN THE QUEUE.
I'M GONNA HOLD, HOLD THAT COMMENT BACK FOR JUST A SECOND.
UM, SO I WANTED TO TAKE A, A FEW STEPS BACK AND TALK ABOUT, UM, THE FORMATION OF THE FINANCE CREDIT GROUP AS, UH, LORETTA TEED UP.
AND SO, UH, WE'VE HAD SOME DISCUSSIONS WITH ERCOT ON THIS AND, AND I THINK THEY MAY HAVE ANOTHER IDEA THAT MAY BE WORKABLE HERE, BUT WE WANTED TO TEE THAT UP AND, UM, GIVE ANNE AN OPPORTUNITY TO SPEAK TO IT REAL QUICK AND THEN, UM, WE CAN, WE CAN MAKE SOME CUT POINTS IF WE WANT TO AT THE END.
UH, BUT IN ESSENCE, I THINK, UH, WE'VE GOT SOME MORE IDEAS TO FLOAT AND TO DISCUSS IT MARKET CREDIT WORKING GROUP, UM, IN THE COMING MONTHS.
YEAH, SO WE'VE DISCUSSED WITH LORETTO AND TECH LEADERSHIP ABOUT HOW TO MOVE THIS FORWARD.
I THINK THE CONSENSUS IS THAT THEY DO WANT IT TO BE A VOTING BODY.
UM, MAYBE ONE OF THE EASIEST PATHS FORWARD IS TO LET THEIR CREDIT WORK GROUP KEEP THEIR STRUCTURE OF HOW THEY HAVE IT RIGHT NOW IS SO MINIMAL CHANGES TO THEIR PROCEDURES, THEIR CHARTER, UM, ALLOW THEM TO CONTINUE VOTING.
UM, MAYBE NOT ELEVATE IT TO A SUBCOMMITTEE, BUT MORE OF A ELEVATED WORKING GROUP.
UM, YOU COULD CALL IT LIKE A SUBGROUP OR SOMETHING LIKE THAT,
UM, BUT IT WOULD REDUCE THE ADMINISTRATIVE BURDEN ON ERCOT ON THE MARKET OF HAVING TO MAKE IT A SUBCOMMITTEE.
UM, AND THEN DOWN THE LINE, IF WE DO DECIDE THAT IT SHOULD BE A SUB SUBCOMMITTEE, WE CAN ALWAYS MAKE THOSE CHANGES.
THEN I WOULD POINT OUT IF WE DO GO DOWN THIS ROAD IN, IN CALLING IT A, A HIGH CLASS GROUP OF SOME TYPE, UM, WE DO HAVE THE OPPORTUNITY TO REVIEW THAT AS WE GET INTO OUR TAC STRUCTURE AND PROCEDURAL REVIEW, UH, TOWARDS THE MIDDLE OF THE LATTER PART OF THE YEAR.
SO I JUST WANTED TO POINT THAT OUT AS WELL.
UH, ROY, I'LL START IT OFF WITH YOU.
UH, I WAS JUST TRYING TO UNDERSTAND WHAT THE CONCERN WAS, UH, WITH REACHING A QUORUM.
UM, YOU KNOW, IF WE'RE UTILIZING THE VOTING STRUCTURE THAT WE HAVE IN OTHER, UH, VOTING BODIES IN OUR COT, UH, I'M NOT SURE I UNDERSTAND THE CONCERN ABOUT, UH, UH, GAINING A QUORUM.
YOU KNOW, IF YOU CAN DO REMOTE, UH, VOTING AND EVERYTHING, I, I'M NOT SURE I UNDERSTAND, YOU KNOW, WHAT THE CONCERN IS.
ANY OTHER COMMENTS, QUESTIONS, RESPONSES,
[01:15:01]
DIRECTION? I'M GETTING A THUMBS UP FROM, FROM ERIC.GIVEN THAT I THINK WE'VE GOT ENOUGH INFORMATION HERE, LORETTA, I THINK, DO YOU HAVE ENOUGH OR YOU, THERE YOU ARE.
GOT ENOUGH TO WORK OFF OF HERE.
SO WE'VE GOT SOME DIRECTION FOR MARKET CREDIT WORKING GROUP TO CONTINUE TO WORK WITH THERE.
UM, SO WE'LL GO AHEAD AND, AND HAVE THEM CONTINUE TO WORK WITH IT AND HOPEFULLY WE CAN HAVE, UH, SOMETHING BACK IN FRONT OF US IN MARCH THAT WE CAN, UH, ULTIMATELY ADOPT AND VOTE ON.
SO, ALL RIGHT, THAT CLOSES OUT.
AGENDA ITEM NUMBER 10, WE WILL MOVE ON TO
[11. ERCOT Reports]
THE ERCOT REPORTS UNDER AGENDA ITEM NUMBER 11.SO, UH, RICHARD, YOU'RE FIRST UP WITH THE, UH, SYSTEM ADMIN FEE.
THIS IS RICHARD SHIELD CONTROLLER FOR ERCOT.
UM, EVERY YEAR WE, WE TRY TO MEET WITH TAC AHEAD OF THE FIRST FINANCE AND A COMMITTEE MEETING.
UH, DURING OUR 20 16 20 17 BUDGET PROCESS, MARKET PARTICIPANTS ASKED US TO GIVE THEM MORE ADVANCED NOTICE OF FUTURE ASSISTANT ADMINISTRATION FEE RATE INCREASES.
UH, WE COMMITTED TO DOING THAT AT THE FIRST FINANCE AND AUDIT COMMITTEE MEETING OF THE CALENDAR YEAR, UH, TO FORECAST THAT AFTER THEIR FOLLOWING YEAR.
WE WANTED TO LET EVERYONE KNOW WE DO CURRENTLY ANTICIPATE A SYSTEM ADMINISTRATION FEE RATE INCREASE IN 2024.
WE'LL GIVE THIS PRESENTATION AGAIN AT THE FEBRUARY 27TH FINANCE AND AUDIT COMMITTEE MEETING, AND THEN Y'ALL WILL HAVE THE FIRST, FIRST VIEW AT THE APRIL 17TH FINANCE AND AUDIT COMMITTEE MEETING OF THE ACTUAL AMOUNT THAT WE'RE PROPOSING.
UH, GOT A QUESTION FROM EMILY.
UM, IF I COULD CLARIFY THE REQUEST, UM, ON THE ADVANCED NOTICE, I BELIEVE WE'RE LOOKING MORE, NOT JUST THE TIMING, BUT ALSO THE MAGNITUDE.
UM, SO APPRECIATE THAT THAT'S STILL COMING TOGETHER, BUT, UH, TELLING OUR, OUR FOLKS, YOU KNOW, BACK AT OUR SHOPS THAT THERE'S GONNA BE AN INCREASE IN NOT BEING ABLE TO GIVE THEM MORE DETAIL IS A LITTLE BIT CHALLENGING.
WE'LL HAVE THAT READY AT THE APRIL MEETING.
SO I KIND OF TAILED OFF THERE.
SO WE'RE GONNA GET, THE MAGNITUDE IS GONNA BE DISCUSSED AT WHAT MEETING? THAT'LL BE THE APRIL 17TH FINANCE AND AUDIT COMMITTEE MEETING.
ANY TYPE OF PREVIEW TODAY FOR US? LIKE IS IT A FEW CENTS OR PERCENTAGE, SMALL PERCENTAGE, OR ARE WE, IS IT LOOKING LIKE A MUCH BIGGER MAGNITUDE THAT'S STILL UNDER DEVELOPMENT AND WE'RE, WE'RE HAPPY TO TALK ABOUT THAT MORE AT THE APRIL 17TH MEETING.
SO I'M HEARING WE NEED TO WAIT UNTIL THE APRIL 17TH F AND A MEETING, IS THAT RIGHT,
OH, THANK YOU VERY MUCH, RICHARD, THIS CLIFF? YES, SIR.
I JUST WANTED TO ASK, I BELIEVE IT WAS THE AUGUST BOARD MEETING.
YOU WERE TELEGRAPH AND I, I MAY BE WRONG ON THE TIMING, BUT I THOUGHT THERE WAS A PRESENTATION THAT WAS TELEGRAPHING WHAT THE RATE MAY NEED TO BE IN A FUTURE, UH, IN A FUTURE, UH, BUDGET CYCLE.
AND, AND IF I'M MISREMEMBERING, TELL ME I'M WRONG, BUT DO YOU REMEMBER WHAT THAT MAY BE? IF I'M CORRECT? UH, YOU'RE CORRECT.
THERE WAS AN AMOUNT TELEGRAPHED AT THAT MEETING.
UM, WE'RE NOT ANTICIPATING, I HESITATE TO COMMENT ON MAGNITUDE PUBLICLY BEFORE IT DISCOVERED, UH, DISCUSSED THIS WITH THE BOARD.
SO, BUT YES, THERE WAS AN AMOUNT MENTIONED IN THE AUGUST BOARD MEETING MATERIALS.
OKAY, ANY OTHER QUESTIONS FOR RICHARD? OKAY, THANKS RICHARD.
NEXT TWO ITEMS ARE MATS TO, TO ADDRESS.
FIRST ONE'S E C R S MARKET READINESS.
ALL RIGHT, THANK YOU ALL GOOD MORNING.
WE TALKED ABOUT WMS, WE'VE TALKED ABOUT T WG, WE'VE TALKED TO A LOT OF PEOPLE.
WE HAVEN'T TALKED TO YOU GUYS MUCH ABOUT IT.
WE TALKED A LITTLE BIT LAST MONTH ABOUT IT, BUT WE WANTED TO GIVE YOU A RUNWAY TO WHAT IT LOOKS LIKE TO GET TO THE JUNE GO LIVE.
AND SO WE DID HAVE THE INTERFACE CHANGES, LESSON LEARNED FROM F F R A ALWAYS PUBLISHES WAY AHEAD OF AN IMPLEMENTATION.
FEBRUARY, MARCH RIGHT NOW IS THE DRUM BEAT OF MAKING THE STAKEHOLDERS AWARE OF OUR TESTING, HOW THINGS ARE PROGRESSING.
AND SO WE'RE DOING THE REGULAR UPDATES AND THEN WHAT APRIL MAY LOOKS LIKE, THAT'S GONNA BE THE RAMP IN, THAT'S GONNA BE THINGS LIKE, UH, THE WEEKLY MARKET CALLS.
THAT'S GONNA BE THE WORKSHOP TO GET THINGS GOING.
WE'RE JUST BEING IN THAT WORKSHOP OFF AS EARLY AS POSSIBLE.
SO WE'D REALLY LIKE THAT TO BE THE FIRST WEEK OF APRIL.
AND THAT IS THE, YOU KNOW, THE NIKA STANDING UP SAYING HOW IT WORKS IS, UH, STEVE KRE SAYING IF YOU ARE A UFR, HOW IT WORK, IT'S THE, THE, UM, DIFFERENT BUSINESS GROUPS AS WELL AS THE IT GROUPS.
AT THAT POINT, WE'LL OPEN UP THE MARKET OPERATIONS TEST ENVIRONMENT SO PEOPLE CAN START SUBMITTING AND THEN WE'LL TRANSITION WEEKLY CALLS LIKE WE DID LAST TIME.
WHAT'S A LITTLE BIT DIFFERENT ABOUT THIS TIME IS THE QUALIFICATION
[01:20:01]
PROCESS.I DO WANNA TALK ABOUT THAT ON THE NEXT SLIDE, BUT BEFORE I DO, JUST A REMINDER, UM, THE, WE HAD MOVED THIS OFF MEMORIAL DAY.
THE REASON WAS IS BECAUSE WHEN YOU LAUNCH SOMETHING ON A THURSDAY, THE FIRST DAY HEAD MARKET WOULD BE ON A FRIDAY, WHICH MAKES THE FIRST OPERATING DAY WITH E C R S ON SATURDAY.
SO THAT WOULD BE SATURDAY, JUNE 10TH.
SO IN TERMS OF THE REFERENCES, IF YOUR SHOP SAYING, WHERE DO I EVEN START? UH, THE ECR R S INTERFACE CHANGES, THOSE ARE THE SPECS.
UH, IF THE PEOPLE ARE SAYING, HEY, I CAN'T WAIT TO HEAR WHAT THIS IS, NPR 8 63 IS HUGE, WHERE CAN I START? THE OPERATIONS BUSINESS EXPLANATION THAT NICA GAVE AT THE WM WG LAST, UH, JULY WAS VERY HELPFUL.
AND THAT'S ABOUT 30 SLIDES IN DETAILS OF NOT ONLY THE TRIGGERING EVENTS, BUT ALSO HOW IT WOULD, UH, MECHANICALLY OPERATE.
SO IN TERMS OF THE QUALIFICATION PRINCIPLES, THIS IS THE NEW STUFF.
UH, WE DON'T HAVE THE CLEAR LINE OF SIGHT TO THIS YET.
ERCOT WILL BE FLEXIBLE IN HOW WE GET TO GOING.
IT'S A RISK EXERCISE, RIGHT? IF WE TRY TO GET EVERYTHING TESTED AND PERFECT FOR GO LIVE, YOU END UP IN A PLACE WHERE THERE'S NOT ENOUGH TIME, NOT ENOUGH PEOPLE, AND NO, UM, NO FLEXIBILITY.
AND SO WHAT WE'RE LOOKING AT IS, UM, STEP ONE WOULD BE REACHING OUT TO THE CUAS THROUGH CLIENT SERVICES WITH A, UM, YOU KNOW, ESSENTIALLY A DECLARATION OF WHAT RESOURCES DO YOU PLAN TO, UH, QUALIFY.
THAT BECOMES OUR TARGET LIST TO SAY HER CUTTS JOB IS TO REACH OUT TO Y'ALL AND WORK AS QUICKLY AS WE CAN TO GET THOSE DONE.
BUT RECOGNIZING, UM, THAT WOULD BE THE APRIL MAY TIMEFRAME.
SO WHAT WE WANT TO DO IS COME BACK NEXT MONTH AND SAY, WHAT DOES THAT LOOK LIKE? UH, SO THE WAY WE'RE LOOKING AT THIS APPROACH IS THAT WE WOULD LIKE TO LEVERAGE EXISTING QUALIFICATION INTO PROVISIONAL QUALIFICATION.
SO FOR EXAMPLE, AND I'M NOT SAYING THIS IS THE PLAN, THIS IS WHAT WE'RE TALKING ABOUT.
IF YOU ARE A, UM, GENERATOR THAT'S QUALIFIED FOR RESPONSIVE RESERVE, THE SIGNALING AND THE DISPATCH, THAT IS ALMOST IDENTICAL TO HOW ECR R S WOULD BE.
AND SO WHETHER OR NOT THOSE UNITS WOULD BE ONES THAT WE COULD GIVE THE PROVISIONAL QUALIFICATION FOR, UH, THE NEXT PIECE WOULD BE IS AN OPEN LOOP TELEMETRY TEST.
AGAIN, ECR R S IS DEPLOYED THROUGH S SKID.
SO WE COULD DO A TEST WHERE, UH, YOU KNOW, OUR TELEMETRY FOLKS COULD SEND A SIGNAL WITH A, A SCHEDULE, YOU UPDATE YOUR TELEMETRY, IT MAKES IT AVAILABLE TO SKID, BUT WE DON'T ACTUALLY RUN THAT.
WE PULL BACK THE BASE POINT BEFORE IT GOES.
AND THE LAST ONE IS WHETHER OR NOT CONSIDERING IF ONE RESOURCE FULLY QUALIFIES WHETHER OR NOT TO PROVIDE PROVISIONAL QUALIFICATION FOR THE REST OF THE FLEET.
SO IF YOU'VE PROVEN IT FROM A SYSTEMS PERSPECTIVE, YOU CAN DO IT ON ONE, ASSUMING THAT YOU CAN DO IT ON OTHER.
AND SO THE IDEA WOULD BE IS THAT SIX YEAR, 90 DAY PROVISIONAL QUALIFICATION IS WE WOULD WATCH OVER TIME HOW PEOPLE ARE OFFERING IN IF AND WHAT'S DISPATCHED AND WHAT'S IT LOOK LIKE ON THE OTHER SIDE OF GO LIVE TO QUALIFY EVERYONE OUT SO THAT WE'RE IN A STEADY STATE.
BUT THIS IS KIND OF A TRANSITIONAL PLAN.
SO THAT'S WHERE I WANT TO END.
SO ANY QUESTIONS? I SEE A COUPLE CARDS UP.
EMILY'S FIRST FOLLOWED BY IAN.
THIS IS, UM, ALWAYS SO HELPFUL.
UH, WANNA MAKE SURE I'M TRACKING ON THE, UH, REQUEST THAT'S GONNA COME OUT IN APRIL.
SO LOOK FOR THAT FROM OUR CLIENT REP TO OUR AR AUTHORIZED REPRESENTATIVE.
THANK, AND WE'LL PROBABLY DO A MARKET NOTICE TO MAKE EVERYONE AWARE THAT IT'S HAPPENING.
COULD YOU TALK A LITTLE BIT MORE ABOUT CONSIDERING IF ONE RESOURCES SUCCESSFULLY QUALIFIED, ALLOWING PROVISIONAL QUALIFICATION? I'M HAVING A HARD SIR.
CAN YOU TALK A LITTLE BIT ABOUT THE LAST POINT FOR, UM, PROVISIONAL QUALIFICATION? IF ONE RESOURCE IS QUALIFIED, AGAIN, WE'RE LOOKING AT WITH MORE THAN ONE.
WHAT'S IT, HOW SHOULD I SAY IT? IF IT'S A SIMILARLY SITUATED RESOURCE, SO PRO, IF IT'S A RE RESOURCE THAT PROVIDES ANCILLARY SERVICE RS YEP.
AND YOU CAN ESTABLISH AND SHOW THAT THAT ONE CAN FOLLOW TELEMETRY, UPDATE AND DISPATCH, WE WILL CONSIDER, AGAIN, LOOKING AT SIMILAR SITUATED RESOURCES OKAY.
SO IF ONE OF MY COMBINED CYCLES CAN DO IT, YOU'LL SAY THE REST OF MY COMBINED CYCLES CAN DO IT IF IT HAS SIM, SIMILAR QUALIFICATIONS, BUT IT WON'T EXTEND TO SAY, A STEAMER OR A CT.
AND WE'RE WORKING WITH NIT, THAT'S WHY WE DON'T HAVE THE PLAN YET.
WE'RE TRYING TO WORK CLOSELY TO MAKE SURE WHAT'S THE, WHAT'S THE BALANCE OF RISK.
SO WE DON'T WANT TO JUST KEEP RUBBER STAMPING EVERYBODY AND HOPE FOR THE BEST.
WE REALLY WOULD LIKE TO USE SOME LOGIC TO THAT, BUT PERFECT.
I THINK WE'RE REALLY GONNA FOCUS BACK ON WHAT YOU'RE ALREADY LEVERAGED TO DO AND HOW YOU PERFORM IN THOSE AREAS.
UH, SO LAST YEAR, NIKAS, UM, PRESENTED ON THE PROCEDURE FOR DEPLOYMENT MM-HMM.
[01:25:01]
THE WORKSHOP, WE WOULD WANT TO HAVE THAT, YOU KNOW, ESSENTIALLY A WHITE PAPER OUT TO SHOW OR THE SLIDES TO SHOW THE MECHANICS OF IT.ARE YOU LOOKING FOR A SPECIFIC PROCEDURE? SO TYPICALLY THE DEPLOYMENT STUFF FOR ALL OF THE ANCILLARY SERVICE EITHER ARE IN PROTOCOLS OR, UH, OTHER DOCUMENT, OTHER BINDING DOCUMENT.
THERE IS NOTHING LIKE THAT FOR ECR R S RIGHT NOW.
AND THE MARKET NEEDS THAT TO UNDERSTAND HOW TO PRICE THOSE.
SO MEMORIALIZE SOME SORT OF METHODOLOGY TO HELP IT BE DISPATCHED THE TRIGGERING TRIGGERING MECHANISMS, DEPLOYMENT PROCEDURES.
ADD TO THAT, I THINK THERE WAS A CALL OUT FOR IT IN EIGHT SIXTY THREE FOR A PROCEDURE TO BE DEVELOPED.
AND I MAY BE MISREMEMBERING, BUT YOU KNOW, TO RASHMI'S POINT, WE, WE PROBABLY WANNA DEVELOP THAT SOONER THAN LATER IF IT'S DOESN'T ALREADY EXIST.
ALL RIGHT, KEVIN? YEAH, JUST A QUICK QUESTION, QUESTION ON THAT ITEM THREE THERE.
IN TERMS OF THE ONE RESOURCES QUALIFIES, IS THAT GONNA BE FOR INDIVIDUAL QUIZZES OR IS IT GONNA BE TECHNOLOGY WIDE? SO FOR INSTANCE, IF THIS TECHNOLOGY WORK, IT'S QUIZZES.
SO CERTAINLY WE WANT THE QUEASY TO HAVE QUALIFIED AND SHOWN AT LEAST ONE ECR R S TYPE QUALIFICATION.
AND WHETHER OR NOT THEN THERE'S THE OTHERS IN THEIR FLEET THAT THEY'RE QUALIFIED IN SIMILAR SERVICES THAT COULD ROLL UP.
ANY OTHER QUESTIONS FOR MATT ON E C R S? ALL RIGHT, SEEING NONE, MATT, WE'RE GOOD WITH THAT ONE.
ONTO THE NEXT TOPIC, WHICH IS THE RTC UPDATE.
ALL YOURS AGAIN, YOU TRUST ME? NO.
MORNING, MATT, MATT, MARINIS,
SO AGAIN, REAL TIME CO-OPT OPTIMIZATION THAT'S NPRS 1007 THROUGH 1013, UH, WAS A, UH, PROJECT THAT WE HAD A PROGRAM REALLY THAT'S PART OF A PASSPORT THING THAT HAS GONE RTC IS A CONCEPT, UH, THAT'S BEEN ON HOLD SINCE MID 2021.
UH, SO WHILE ON HOLD, IT'S BEEN TRACKED IN OUR BUDGETARY FILINGS AS A LINE ITEM.
SO IF YOU WERE TO LOOK AT THE BUDGETS THAT WE LOOK TO THREE YEARS OUT, YOU KNOW, THERE'S BIG THINGS LIKE DC FIVE REALTIME COOPTATION IS ONE OF THOSE BIG THINGS THAT HAS THAT $50 MILLION BURN OVER OUR MULTI-YEAR PERIOD.
SO IT'S BEEN MODELED IN OUR BUDGETS.
AND THEN IN LATE 2022, THAT'S WHAT I SHARED LAST TIME, WAS THAT THE LEADERSHIP, ERCOT LEADERSHIP MET AND LOOKED AT THE CHANGING FLEET, WHAT'S GOING ON IN TERMS OF THE MARKET AND THE FUNCTIONAL, UM, THE OPERATIONAL CHALLENGES AND WHAT'S, WHAT ARE THE RIGHT TOOLS TO HAVE IN THE BOX FOR ADDRESSING THIS AND DETERMINED THAT REALTIME CO-OP OPTIMIZATION IS SOMETHING TO LOOK AT MORE CLOSELY.
I, IT'S, WHEN WE LOOK AT BATTERIES, THEY'RE LIMITED DURATION.
WHEN WE LOOK AT HOW FAST THINGS ARE MOVING, THE IDEA OF ERCOT BEING ABLE TO SECURE EVERY FIVE MINUTES OF ANCILLARY SERVICES WITH THE ENERGY IS A PLA THERE'S A LOT OF ARGUMENTS FOR, UM, THAT RELIABILITY BENEFIT.
SO THE PATH TO POTENTIALLY RESTART, SO AGAIN, WE'RE LOOKING RIGHT NOW IS AT THE SCOPE WE'RE WORKING WITH, UH, DAVE MAGGIO EXTENDED TEAMS ON THAT.
AND SO IT'S DEFINITELY NPR 1007 THROUGH 1013.
IT'S DEFINITELY THE SINGLE MODEL, THE NPR 10 14.
AND THEN WE'RE LOOKING AT HOW TO MODEL SOME OF THE STATE OF CHARGE TYPE THINGS.
THE BATTERY ENERGY TASK FORCE CAME UP SHORT ON STATE OF CHARGE.
SO KEN RAGSDALE, SOME OTHER FOLKS ARE WORKING ON IN SIGN MORTY ARE WORKING ON WHAT DOES IT LOOK LIKE FOR STATE OF CHARGE AS WE'RE CALCULATING LIMITS INSTEAD TO MAKE SURE CAN THE STATE OF CHARGE HOLD FOR THAT LONG OR INTERVALS AFTER.
WHEN WE LOOK AT RELIABILITY UNIT COMMITMENT, IF THE OPERATOR'S RUNNING THE STUDY, WHAT DO WE DO WITH THE STATE OF CHARGE? WHAT'S THE BEST WAY TO MODEL THAT? SO THOSE ARE CONCEPTS THAT WE'RE VETTING INTERNALLY.
THOSE ARE ULTIMATELY TO NPRS THAT COULD BE RUN THROUGH THE PROCESS THIS YEAR AS WE RUN THROUGH REQUIREMENTS.
BUT THAT'S WHERE WE SEE AS BEING KIND OF THE ONE TWO THREES OF WHAT THE SCOPE OF RTC IS.
UH, WE OBVIOUSLY WANT TO KEEP IT AS SMALL AS WE CAN.
THE BIGGER IT GETS, THE MORE COMPLICATED IT GETS.
WE'D LIKE TO, UM, GET OUR LEGS UNDER US.
WE ALSO HAVE BUSINESS REQUIREMENTS ALREADY IN PLACE FOR PARTS OF THIS.
AND SO WE, WE WOULD LIKE TO START REALTIME CO-OP OPTIMIZATION WITH A RUNNING START.
SO THE IDEA IS THIS IS WHAT WE'RE DOING TO GET TO THAT POINT.
AND SO WE ARE EVALUATING ANY GAPS IN PROTOCOLS OVER THE LAST TWO YEARS.
UH, WE'RE REFRESHING THE IMPACT ANALYSIS NOT TO NECESSARILY PUBLISH ANOTHER IMPACT ANALYSIS, BUT WHAT WAS THE ESTIMATE IN TODAY'S DOLLARS FOR OUR VENDORS, FOR HARDWARE, FOR SOFT, FOR PEOPLE, UH, AND TO COME BACK AND WHETHER OR NOT THERE'S EFFICIENCIES THAT WE HAVE RIGHT NOW, AND THEN ASSESS THE RISK.
WE'RE GONNA MEASURE IT, BUT THEN WE'RE GONNA HOLD IT UP AGAINST WHAT THE LEGISLATURE'S LOOKING AT, WHAT THE COMMISSION IS LOOKING AT, WHAT ALL THE OTHER PORTFOLIO PIECES AND CAN ERCOT GET OVER THIS.
SO THAT'S OUR GOAL IS TO TAKE TO THE BOARD OF DIRECTORS A POSSIBLE PLAN FOR WHAT THAT MIGHT LOOK LIKE AND WHAT THE RISKS ARE OF BEING ABLE TO IMPLEMENT.
SO THIS IS REALLY AN EXERCISE RIGHT NOW OVER THE NEXT THREE AND A HALF TO FOUR MONTHS, IS TO, UM, PLAN FOR WHAT IT WOULD LOOK LIKE TO EXECUTE ON THIS, HOW BIG IS IT, HOW DOES IT FIT WITH THE OTHER PARTS, AND WHAT ARE THE RISKS BEHIND THAT? AND GETTING IT IN FRONT OF THE BOARD FOR THEIR CONSIDERATION BY JUNE 20TH.
[01:30:02]
SO THAT'S THE PLAN, JUST THE SLIDE.SO ANY QUESTIONS? ALL RIGHT, MATT, STARTING WITH KEVIN HANSEN, FOLLOWED BY ERIC GOFF.
WHAT IS BEST GUESS RIGHT NOW FOR GOLIVE DATE? BECAUSE AGAIN, WE'RE TALKING TWO YEARS AFTER INITIAL START BEING HOLD FOR TWO YEARS.
AT THAT POINT, WE'RE LIKE 2026 OR NOW WE 2028.
WE'RE LOOKING SOONER THAN THAT.
I WANNA SAY THIS VERY CAREFULLY.
THE LAST TIME WE MEASURED IT, IT WAS THREE AND A HALF YEARS.
THAT'S NOT RIGHT NOW, THAT'S THE IMPACT ANALYSIS FROM 2020 THAT WE PUBLISHED.
THAT THREE AND A HALF YEARS IS THE BEST PROXY.
AND SO IF YOU WERE TO SAY, LET'S START THAT ON JULY 1ST, 2023, THAT WOULD HAVE YOU COMING IN ON THE END OF 2026 ONLY BECAUSE OF THE OLD IA.
AND THAT'S A PROXY MEASUREMENT FOR NOW.
THAT'S EXACTLY WHAT WE'RE TRYING TO SHARPEN INTO, SO THAT WHEN WE COME OUT IN JUNE, IT WOULD NOT BE A SWAG LIKE THAT.
IT WOULD BE A MUCH SHARPER VIEW OF WHAT WE THINK NOW.
ALL RIGHT, MATT, UH, YOU DID A GOOD JOB OF GETTING UP SOME ADDITIONAL CARDS.
ERIC GOFF, FOLLOWED BY EMILY JOLLY AND RUSH ME.
UM, DOES THE CRITICAL FUNCTIONALITY BULLET NEED TO BE RESOLVED BEFORE THE JUNE 20TH BOARD MEETING, OR IS THAT NOT RELATED? YES, WE ARE WORKING IN, YES, WE WOULD HAVE THAT DONE.
WE'D BE WORKING WITH THE STAKEHOLDERS ON THE CONCEPT THAT WE'VE DEVELOPED TO GET INTO THE NPR PROCESS.
WE KNOW WE CANNOT HAVE AN APPROVED NPR BY THAT BOARD.
SO THAT WAS ONE OF MY QUESTIONS.
UM, WHEN WE ARE LOOKING, UH, SO MAYBE JUST A, A BROADER THAN JUST THE CRITICAL FUNCTIONALITY, UM, CAN YOU WALK THROUGH WHAT TOUCHPOINTS WITH STAKEHOLDERS, UM, BETWEEN NOW AND JUNE 20TH? IS IT JUST GONNA BE THE REGULAR UPDATES TOT YES.
WILL THERE BE ANY POLICY LEVEL DISCUSSIONS WITHIN ANY ERCOT STAKEHOLDER GROUPS RELATING TO ANY OF THOSE THINGS? UM, NOT PLANNED AT THIS POINT.
THE STATE OF CHARGE MAY BE SOMETHING THAT IS, WE DEVELOP CONCEPTS TO SHARE THOSE CONCEPTS, SO WE'RE NOT SURPRISING PEOPLE.
BUT, UM, DOES THAT KINDA GET TO THE QUESTION WHERE, WHAT'S THE P WHEN YOU SAY POLICY QUESTION, CAN YOU GIMME AN EXAMPLE? UM, I MEAN, BOTH THE IMPLICATIONS FOR RUCK.
UM, I THINK THERE'S SOME OTHER UPDATES IN TERMS OF LOOKING AT THE CURRENT ANCILLARY SERVICES AND ANY MARKET DESIGN TOUCHPOINTS, UM, DECISION POINTS THAT THE COMMISSION THAT INTERSECT WITH, YOU KNOW, WHAT IS NOW A PRETTY STALE SET OF RTC.
UM, YOU KNOW, PROTOCOLS, PRINCIPLES, WHAT, WHAT DO WE CALL THEM? KEY PRINCIPLES, KEY KEY IDEAS, EMOTIONS, KEY PRINCIP, KEY PRINCIPLES, RIGHT? YEAH, YEAH.
UM, OTHER THINGS THAT NEED TO REFRESH JUST GENERALLY, BUT REALLY JUST GONNA KEEP US UPDATED ON, ON HOW THE, WHAT BUDGET AND IMPLEMENTATION TIMELINE PRIMARILY.
I THINK THE BIGGEST FRUIT OF THIS EFFORT WILL BE THE UPDATED COSTS, SCHEDULE AND RISKS.
UM, SO WHEN I SAY THE STATE OF CHARGE TYPE FUNCTIONALITY, THAT IS SUCH A, UH, A SMALL PIECE OF THE PICTURE IN SOME WAYS BECAUSE WE'RE JUST TALKING ABOUT HOW TO MODEL IT IN OUR OPTIMIZATION, NOT COME UP WITH NEW BILLING DETERMINANTS AND ALL THAT STUFF.
IT'S JUST TO HOW DO WE MAKE SURE THE STATE OF CHARGE IS ACTUALLY THERE, THAT WE CAN LEVERAGE WHAT'S ALREADY HERE IN OUR SYSTEMS. AND A LOT OF THAT FUNCTIONALITY MAY BE BUILT IN AS WE GO OVER THE NEXT FEW YEARS.
SO ALMOST KIND OF PLAYING THE CURVE AS TO WHERE DO WE THINK IT'LL BE BY THE TIME WE GET THERE.
SO WE'RE JUST MAKING SURE THE DESIGN FITS WITH WHAT WE THINK WE NEED TO HAVE BY THAT POINT.
SO, UM, YEAH, SO WE'RE NOT LOOKING AT A SHIFT BIG SHIFTS IN POLICY AS MUCH AS SHARPENING THE DESIGN TO INCLUDE BATTERY.
SO RTC IS A FAIRLY BASIC IMPLEMENTATION.
TAKE YOUR ANCILLARY SERVICES, RUN 'EM EVERY FIVE MINUTES.
WHEN THEY'RE DEPLETED, THEY DEPLETE AND MOVE AROUND, YOU KEEP HITTING 'EM AGAIN.
SO THAT PRINCIPLE IS 500 PAGES.
SO WE CAN MOVE WAY DOWN THAT ROAD OF ALL THAT COMPLEXITY AND BE WORKING ON THESE DETAILS THAT ARE ON THE FRINGES OF IT DURING THE REST OF THE YEAR TO GET 'EM TIED UP IN PROTOCOLS AND THEN BAKED IN AS PART OF IT.
AND SO ALL OF THAT ANALYSIS, FOR EXAMPLE, WILL ASSUME THAT SINGLE MODEL IS IN PLACE, WILL A SINGLE MODEL, WHAT THAT THE SINGLE MODEL WILL BE IN PLACE? WELL, THIS WILL IMPLEMENT SINGLE MODEL.
SO SINGLE MODEL BY ITSELF TO IMPLEMENT ON EXISTING SYSTEMS RIGHT NOW WOULD BE TWO TO THREE YEARS BY ITSELF.
SO WE LOOKED AT WHAT WOULD IT TAKE TO DO SINGLE MODEL, AND THEN YOU ADD RTC ON TOP OF THAT.
SO IT'S ALREADY SUCH A MULTIMILLION DOLLAR EFFORT, IT'S PUT THE TWO TOGETHER AND GET TO WHERE THE END GAME IS, WHICH IS SINGLE DEVICE OPTIMIZED EVERY FIVE MINUTES.
THANKS FOR THAT CLARIFICATION ON TOP OF RTC FOR THE REST OF THE FLEET.
I THINK KAAN WANTED TO INSERT A COMMENT.
YEAH, I, I JUST WANTED TO, UM, UH, SO, SO MATT COVERED ACTUALLY MOST OF THE THINGS I WAS GONNA SAY, BUT, UM, IN TERMS OF THE BASE, UH, RTC CASE, THE THINGS, THE, REALLY, THE MAIN THING THAT WE HAVE TO REFRESH ARE THE PENALTY PENALTY CURVES, BECAUSE THEY NEED TO ALIGN WITH O R D C.
[01:35:01]
BUT THE VAST MAJORITY OF THE THINGS THAT HAVE ALREADY BEEN APPROVED BY TAC AND THE BOARD ALL ALL STILL STAND.UM, AND THEN THERE IS THIS ADDITIONAL, UH, STATE OF CHARGE ITEM THAT WE'D LIKE TO ADD TO THE PROJECT.
SO, UM, SURPRISINGLY IT'S, IT'S, IT'S NOT THAT STALE.
UH, IT, EVERYTHING PRETTY MUCH FITS IN AND OPERATES AS, AS EXPECTED AND DESIGNED RELATIVE TO EMS M S THAT, UH, HAPPENED IN, IN THE PAST.
SO I, I THINK THAT'S, UH, THAT, THAT PART DOES NOT LOOK LIKE A HEAVY LIFT.
THE HEAVY LIFT IS THE, STILL THE IMPLEMENTATION PART OF THIS IN TERMS OF TURNING PROTOCOLS INTO REQUIREMENTS AND THEN SYSTEM CHANGES.
SO, SO AGAIN, UM, UH, AND I THINK E THREE BROUGHT THIS UP ON MULTIPLE OCCASIONS, BUT EVERYTHING THEY STUDIED WAS WITH RTC IN IT.
UM, RTC WILL WORK, UM, IN CONJUNCTION, AND, UM, LIKE I SAID, THERE, THERE, THERE'LL BE SOME MINOR CHANGES AROUND THE PENALTY CURVES, BUT THERE IS NOTHING OUT THERE THAT IS CONTEMPLATING, UH, AT THIS POINT, A HUGE CHANGE IN, IN RTC.
SO, UH, BUT I, I MEAN, I SAY THAT AND THEN SOMETHING'S GONNA COME UP, OF COURSE THEN, UH, BUT, AND I'LL HOLD THAT AGAINST YOU, BUT, BUT WE, UH, I MEAN IN TERMS OF WHAT WE KNOW, AND I'LL LET MATT ELABORATE ON THIS, THAT IT, IT, IT SEEMS TO FIT WITH, WITH, WITH EVERYTHING THAT WE'RE DOING, AND THAT'S THE WAY E THREE MODELED IT.
ANYTHING TO ADD, MATT? OKAY, PRESTON? YEAH, UH, I THINK ALL OF THOSE QUESTIONS COVERED MOST OF WHAT I WANTED TO ASK, JUST TO CLARIFY THAT THIS PROTOCOL UPDATED WOULD BE ALMOST SIMILAR TO WHAT IT WAS BEFORE BECAUSE RTC AND, UH, SINGLE MODEL IS TOGETHER NOW.
SO IT IS JUST UPDATING THE PROTOCOL TO REFRESH THE PREVIOUS PROTOCOL CHANGES THAT HAPPENED IN BETWEEN THAT, IS IT.
RIGHT? AND YOU ARE GETTING THOSE DONE BEFORE THE JUNE 20TH APPROVED THE, THAT'S APPROVED OR IT IS, I I'M NOT GONNA BIND US TO THAT PROTOCOLS.
IT, IT'S REALLY GETTING TO THIS ESTIMATE.
SO IT, IT, BECAUSE PROTOCOL, UM, IT'S 550 PAGES OF PROTOCOLS IF WE TRY TO GET IT PERFECT.
SO WE'D RATHER GO SLOWER AND GET IT RIGHT.
YEAH, YOU PROBABLY JUST NEED TO REFRESH IT TO SEE IF ANYTHING HAS CHANGED BASED ON YOUR SCHEDULE.
AND THE DEMAND CURVE AND STUFF COULD BE DISCUSSED LATER AS WELL.
IT'S, IT'S PARAMETER, RIGHT? SURE.
AND SO REALLY THE IDEA IS FOR THIS TEAM TO HAVE IDENTIFIED ALL THAT BY JULY AND THEN BE RELEASING NPRS TO THEN WORK THROUGH THE REST OF THE YEAR TO GET THE, UM, MARKET STAKEHOLDER INPUT ON ENSURING THEY'RE ALL ACCURATE.
AND IF THERE ARE THINGS THAT COME UP DURING THE EVALUATION, UH, OR DURING THE EVALUATION, THEN IF THOSE ARE SUBSTANTIAL CHANGES OR THINGS THAT NEED POLICY, THEN IT WILL BE BROUGHT BACK HERE FOR DEBATE AND DISCUSSION.
NOT JUST, SO THIS IS, THIS IS THAT WEIRD QUIET POINT.
ERCOT JUST NEEDS SOME SPACE TO WORK WHAT WE HAD ON THE BOOKS ALREADY TO STAND THOSE REQUIREMENTS BACK UP AND IDENTIFY WHAT'S NEXT TO WORK AS A LARGER PROGRAM TO GET TO THE END POINT.
SO THIS IS THE GETTING IT BACK UP AND RUNNING.
EMILY, ARE YOU BACK IN THE QUEUE OR IS THAT OKAY? NO PROBLEM.
UNLIKE THE PROTOCOLS, RIGHT? SO, OKAY,
UH, NEXT ON THE LIST, WE'VE GOT, UH, FIRM FUEL SERVICE POST-DEPLOYMENT REPORT FOR JANUARY AND FEBRUARY, 2023.
SO RYAN, OH, GOOD MORNING EVERYONE.
I'M THE NEW MANAGER MARKET DESIGN HERE AT ERCOT.
I'M VERY HAPPY TO BE ABLE TO SPEAK TO YOU ABOUT THE SECOND FIRM FUEL SUPPLY SERVICE DEPLOYMENT THAT HAS OCCURRED THIS SEASON.
SO THIS PRESENTATION, I HOPE TO COVER THREE MAIN THINGS.
FIRST, I'LL PROVIDE AN OVERVIEW OF THE EVENTS LEADING UP TO THE DECISION TO DEPLOY FIRM FUEL.
ALSO SPEAK A LITTLE BIT ABOUT THE DEPLOYMENTS THEMSELVES, PROVIDING SOME SUMMARY DETAILS AS WELL AS SOME LESSONS LEARNED.
[01:40:01]
TAKE QUESTIONS AT ANY TIME.IF, UH, I CAN'T ANSWER THEM OR SOME OF THE EXPERTS IN THE ROOM CAN'T, I CERTAINLY AM HAPPY TO TAKE THAT BACK AND BRING AN ANSWER TO THIS COMMITTEE.
SO IN TERMS OF, UH, JUST A BIT OF BACKGROUND ON THE REPORTING REQUIREMENTS RELATED TO FIRM FUEL.
SO, UH, AFTER A FIRM FUEL DEPLOYMENT TAKES PLACE, ERCOT OBLIGED TO PROVIDE A REPORT TO TACK WITHIN 45 DAYS, UM, PROVIDING SOME DETAILS RELATED TO THE, TO THE DEPLOYMENT, INCLUDING THE RESOURCES AND THE REASON FOR THE DEPLOYMENT.
UH, AT THE END OF THE SEASON, THERE ARE ALSO SOME, UH, ADDITIONAL REPORTING THAT ERCOT WILL BE PROVIDING TO TACK.
AND THIS IS REALLY RELATED TO FIRM FUEL SUPPLY, UH, REPLACEMENT COSTS, AS WELL AS, UH, SOME OF THE FEE PAYMENTS, UH, THAT OCCURRED THROUGHOUT THAT SEASON.
SO THIS SLIDE IS REALLY JUST TAKING EVERYONE THROUGH A BIT OF A, A TIMELINE IN SOME OF THE HIGH LEVEL EVENTS, UH, RELATED TO THIS DEPLOYMENT.
SO, AS NOTED HERE, LEADING UP TO THE FREEZING, UH, PARTICIP, UH, PRECIPITATION THAT STARTED ON JAN 30TH, WE DID START RECEIVING INFORMATION ABOUT SUPPLY, UH, GAS SUPPLY RESTRICTIONS AND PROBLEMS AT SOME INDIVIDUAL PLANTS.
UH, THERE WAS A WATCH ISSUED AT NINE 30 ON THE MORNING OF THE 30TH, AND THEN LATER THAT AFTERNOON, THERE WAS A DECISION MADE TO, UH, DEPLOY FIRM FUEL FOR THOSE RESOURCES TO START, UH, AT THE BEGINNING OF THE NEXT DAY.
AND I'M ALSO HAPPY TO NOTE THAT THERE WAS A PUBLIC NOTIFICATION OF THIS FACT, UH, LAST TIME, UH, WE HAD FAILED TO ISSUE THIS.
SO I'M HAPPY TO NOTE THAT THAT FIX WAS PART OF THIS, AND IT INVOLVED, UH, MULTIPLE RESOURCES OVER MULTIPLE DAYS.
AND THAT DEPLOYMENT LASTED UNTIL THE EVENING OF FEBRUARY 2ND, AFTER WHICH POINT, UM, THESE, THE LAST FIRM FUEL DEPLOYMENTS ENDED, AND THE FOLLOWING MORNING, THE WATCH AND THE PUBLIC NOTICE WERE CANCELED.
SO THE NEXT COUPLE OF SLIDES WILL JUST PROVIDE A LITTLE BIT MORE DETAIL AROUND THE FIRM FUEL DEPLOYMENTS THEMSELVES.
SO THIS DID INVOLVE, UH, FOUR RESOURCES.
UH, THE BULK OF THE DEPLOYMENT REALLY WAS RELATED TO THE FIRST TWO OPERATING DAYS, ALTHOUGH THERE WAS A SUB SUBSEQUENT, UH, DEPLOYMENT OF RESOURCES ON FEBRUARY 2ND.
UM, THE SPECIFIC PERIOD OF DEPLOYMENT VARIED ACROSS THE DIFFERENT RESOURCES, AND I'LL GET TO THAT A A LITTLE BIT MORE IN THE NEXT SLIDE.
UM, AND REALLY THE DECISION A, AROUND WHICH RESOURCES TO DEPLOY AND WHEN IS A FUNCTION OF THE DISCUSSION THAT ERCOT HAS AND THE INFORMATION FROM THE QCS.
SO THIS INCLUDES THINGS LIKE, UM, WAS THE RESOURCE, UH, EXPECTING ANY POTENTIAL FUEL LIMITATIONS, UH, COULD THEY RUN WITHOUT UTILIZING THE RESERVE FUEL? UM, AS WELL AS, UH, INFORMATION AND DISCUSSIONS ON AVAILABLE AMOUNTS OF RESERVE FUEL THAT WERE PROCURED THROUGH THE PROGRAM.
THIS NEXT SLIDE PROVIDES, UH, A LITTLE BIT MORE AROUND THE ACTUAL DEPLOYMENTS, WHICH RESOURCES WERE DEPLOYED, UH, HOW LONG THE START AND END DATE, AND THE REASONS FOR THESE DEPLOYMENTS.
AND JUST A NOTE HERE THAT THESE, UH, ARE ISSUED THROUGH, UH, VDIS AND IN SOME CASES MULTIPLE VDIS OCCURRING OVER MULTIPLE OPERATING DAYS.
AND SO THIS SLIDE JUST PROVIDES A LITTLE BIT OF A MARKET OVERVIEW OF THE SITUATION, UH, DURING THE FIRM FUEL DEPLOYMENTS.
SO JUST, UH, A COUPLE OF NOTES HERE THAT, UM, THE HSL OF FIRM FUEL RESOURCES DEPLOYED FOR FFS ARE ACTUALLY EXCLUDED FROM THE ONLINE O R D C RESERVES.
UM, BUT YOU CAN SEE THAT WE DO HAVE, UH, AN ILLUSTRATIVE CHART THAT WOULD DEMONSTRATE WHAT IT WOULD HAVE BEEN WITHOUT THOSE RESOURCES EXCLUDED, UM, AS, AS, UM, IN ADDITION TO THE, UH, PHYSICAL RESPONSIVE CAPABILITY FOR DURING THE, THE TIME OF THE DEPLOYMENT.
AND JUST TO NOTE HERE, THAT REAL TIME ONLINE AND OFFLINE PRICE ADDERS WERE AND REMAINED AT ZERO FOR THE DURATION OF THE DEPLOYMENT.
SO IN TERMS OF OBSERVATIONS AND NEXT STEPS, I'M HAPPY TO REPORT THAT THE NOTIFICATION ABOUT THE FIRM FUEL DEPLOYMENT WAS ISSUED TO THE PUBLIC.
SO IT'S, UH, NICE TO SEE THAT THAT FIX WAS IMPLEMENTED.
UH, ERCOT STAFF ARE, ARE STILL EVALUATING THE PERFORMANCE OF THE RESOURCES DURING THIS DEPLOYMENT, AND ULTIMATELY THAT WILL, UM, FOLLOW THROUGH TO THE SETTLEMENTS.
UM, GIVEN THE RELATIVELY EARLY PERIOD WITHIN THE SEASON WITHIN WHICH THESE DEPLOYMENTS, UH, OCCURRED.
[01:45:01]
QSC FOR THE F F S S R RESOURCES THAT WERE DEPLOYED, UM, WERE GIVEN, UH, INSTRUCTION OR APPROVAL TO RESTOCK FUEL RESERVES FOR F F S S.AND AS NOTED EARLIER, A REPORT WILL BE, WILL BE PROVIDED ON THESE, UH, FIRM FUEL REPLACEMENT COSTS AFTER THE END OF THE OBLIGATION AS REQUIRED BY THE PROTOCOL.
UM, BUT OTHER THAN THIS, THERE WERE NO, UH, SORT OF ADDITIONAL TAKEAWAYS OTHER THAN THOSE THAT WERE IDENTIFIED, UH, BY DAVE MAGGIO, UH, LAST MONTH RELATED TO THIS, UH, INITIAL DEPLOYMENT.
SHE WAS SUCCESSFUL AND FAILED.
SO THOSE ARE ALL THE POINTS I HAD ON THE, THE PRESENTATION, BUT I'M HAPPY TO TAKE ANY QUESTIONS.
GOT A COUPLE OF QUESTIONS LINING UP.
SO WE'VE GOT EMILY FOLLOWED BY MARK.
THAT'S, UH, A REALLY HELPFUL UPDATE.
UM, YOU'VE MENTIONED IT A COUPLE TIMES THAT WE DID GET THE, UM, PUBLIC NOTICE OUT THIS TIME ON THE FS SR DEPLOYMENT.
UM, WHAT IS THE FORMAT OF THAT AND, AND WHERE IS IT ARCHIVED? I'VE GOTTEN SOME QUESTIONS, SO I'LL HAVE TO PULL UP THE EXACT WEBSITE, BUT IT'S, IT'S ONE OF THE PUBLIC NOTIFICATION PAGES THAT JUST GOES OUT TO ALL MARKET PARTICIPANTS, BUT I CAN CERTAINLY PROVIDE THE, THE EXACT LINK SHOWING WHERE THOSE MESSAGES WERE DISPLAYED AFTER THIS MEETING.
YEAH, IF YOU COULD UPDATE THE PRESENTATION WITH THAT.
I ACTUALLY CAN'T FIND ANY EVIDENCE OF IT.
IT'S NOT IN THE MARKET NOTICE ARCHIVE, SO I MUST BE LOOKING IN THE WRONG PLACE.
I, I THINK IT'S THAT, UM, NOTICE THAT WE SEND THE QCS WHERE, UM, THAT IT'S AUTOMATICALLY GENERATED.
CAN, CAN SOMEBODY ELSE CONFIRM THAT FOR ME FROM ERCOT? IS IT, AND I GET THOSE TOO, AND I CAN'T FIND THEM THERE EITHER.
WHAT I CAN TELL YOU THAT WE DID SEE IT COME IN THROUGH OUR XML SYSTEM.
SO I THINK THAT WOULD MEAN THAT IT'S PROBABLY PUBLISHED TO THE OPERATIONS MESSAGES WEBSITE ON ERCOT, BUT I CAN'T CONFIRM THAT.
YEAH, IF IT'S HELPFUL, IT IS POSTED AS PART OF THE OPERATIONS MESSAGES.
UM, SO, SO THAT, IT'S THE, IF YOU GO TO THE MARKET PARTICIPATION COMMUNICATIONS, THERE'S THE OPERATIONS MESSAGES SECTION.
AND IN TERMS OF FORMAT, EMILY, WE EFFECTIVELY FOLLOWED, UH, THE EXACT, UH, I GUESS FORMULA OR, OR I GUESS VIEW THAT WE DO FOR NONS SPIN.
SO, UH, WHEN WE, WE HAVE A PUBLIC MESSAGE FOR NONS SPIN DEPLOYMENTS, AND WE TYPICALLY FOLLOW THAT EXACT SAME FORMAT FOR THE F F S F.
SO I GET YOU, YEAH, IF WE COULD JUST UPDATE THE PRESENTATION WITH THAT INFORMATION.
AND I'LL ALSO PUT THE, UH, UH, JUST A, A LINK TO THE PAGE IN, IN THE CHAT HERE IN A MOMENT.
UH, DID, DAVE, YOU HEARD THAT WE NEED TO UPDATE THE PRESENTATION TO INCLUDE THAT AS WELL IN, IN THIS PRESENTATION? YEAH, IF WE CAN UPDATE THAT AND REPOST IT FOR THOSE THAT HAVE INTEREST.
YEAH, THERE, THERE'S THAT REQUEST.
AND THAT, I THINK WE CAN DO THAT IS THE ANSWER.
UM, MY QUESTION IS ABOUT THE SPECIFIC INFORMATION AND DECISION PROCESS LEADING TO MAKING A DECISION TO TRIGGER THE DEPLOYMENT.
YOU SAID THAT, UM, YOU MAKE THE DECISION BASED ON INFORMATION YOU'VE RECEIVED FROM THE CUIS AND YOU HAD INFORMATION ABOUT, UH, FUEL AVAILABILITY.
SO CAN YOU WALK US THROUGH KIND OF THE SPECIFIC INFORMATION YOU HAD AND HOW YOU PROCESSED THAT INFORMATION TO COME TO THE DECISION TO DEPLOY THE RESOURCES? SURE.
WELL, I CAN SORT OF SPEAK AT A HIGH LEVEL ABOUT THE INFORMATION THAT WAS AVAILABLE, UM, BUT I MIGHT HAVE TO, UH, YIELD THE FLOOR TO, UM, TO, TO KAAN OVER THERE.
BUT, UM, WE, THERE WERE, THERE WERE SOME INFORMATION THAT I, I DID SEE RELATED TO, UM, GAS SUPPLY RESTRICTIONS AND SOME ISSUES AT INDIVIDUAL PLANTS.
UH, BUT BEYOND THAT, I DON'T REALLY HAVE, UH, ADDITIONAL DETAIL AROUND THE, HOW THE DECISION WAS ACTUALLY MADE.
SO MAYBE I'LL DEFER TO CANAN IF WHO WANTS TO ADD ANYTHING? GO AHEAD, CANAN.
UM, SO, UH, IN, I BELIEVE BOTH OF THESE INSTANCES, UH, THE GAS, UH, SUPPLIER FOR THE AREA ACTUALLY ANNOUNCED A CURTAILMENT, UH, THAT, UH, THE, IN, IN ADVANCE OF THE, UH, COLD WEATHER EVENT, WHICH INFORMS US THAT POWER PLANTS WILL NOT BE, UH, SERVED AS PART OF THAT CURTAILMENT.
SO I, THAT ENDS UP BEING KIND OF STEP ONE TO TRIGGER, UM,
[01:50:01]
UH, THAT WE WILL POTENTIALLY NEED TO TAKE ACTION.SO THEN IT BECOMES A MATTER OF NEEDING THE RESOURCES, UH, TO RUN.
UH, AND AT THAT POINT, OPERATIONS WOULD WORK WITH THE INDIVIDUAL UNIT OWNER TO GET THAT UNIT ONLINE AND THEN HAVE IT RAMP UP TO WHERE IT NEEDS THROUGH NEEDS TO THROUGH A V D I.
AND DAVE MIGHT WANNA SUPPLEMENT MY ANSWER.
SO IS, IS THAT PROCESS DOCUMENTED? ARE YOU GUYS WORKING OFF OF A KIND OF A DEVELOPING, UH, DECISION PROCESS? UH, I THINK THAT THE PART PARTS I MENTIONED, UH, ARE, UH, DOCUMENTED.
I THINK THERE IS GAPS IN THAT THAT WE'RE STILL WORKING ON TO CLOSE.
UH, FOR EXAMPLE, THE FACT THAT WE NEED TO SEND OUT THE NOTICE IS DOCUMENTED.
UM, BUT I THINK FOLKS HAVE, UH, ASKED FOR ADDITIONAL INFORMATION THAT I BELIEVE WE NEED TO ACCOMMODATE AND WE'LL WORK ON SUPPLEMENTING WHAT WE SHARE WITH THE MARKET.
DAVE, DID YOU WANNA ADD ANYTHING TO WHAT I SAID? NO, I DON'T HAVE ANYTHING TO ADD.
BILL BARNES, SIMILAR LINE OF QUESTIONING IS BOTH EMILY AND MARK.
UM, ONE ON THE NOTIFICATIONS, THE ONLY THING WE SAW THAT WAS PUBLIC, WHICH WAS IN THE OPERATIONS MESSAGE, UM, WAS ON JANUARY 30TH THAT SAID F S S R SHOULD PREPARE FOR POTENTIAL FF SS DEPLOYMENT.
WE DIDN'T SEE AN ACTUAL DEPLOYMENT MESSAGE.
UM, AND I, WHEN, WHEN THERE'S A DEPLOYMENT THAT'S ISSUED, ARE THE SPECIFIC RESOURCES IDENTIFIED IN THE DEPLOYMENT MESSAGE, AND IF SO, AT LEAST WE, WE, I THINK THERE'S SOME CLEANUP WORK THERE ON THE ACTUAL NOTIFICATION WHEN IT'S DEPLOYED.
THERE'S THE, HEY, GET READY, WHICH IS ALL WE SAW.
AND THEN THERE WAS OBVIOUSLY A, NOW YOU'RE GONNA BE DEPLOYED.
SOME OF YOU WE WOULD LIKE TO SEE THAT MESSAGE AS WELL.
YEAH, I'M SORRY, I, I JUST WANTED TO CORRECT MYSELF.
UH, EARLIER I SAID OPERATIONS MESSAGES THERE, IT'S ACTUALLY A LINK CALLED PUBLIC NOTICES.
AND, UH, I'M GUESSING YOU'RE IN THE ROOM.
UH, BUT I DID PUT THE SPECIFIC LINK IN THE CHAT AS WELL AS COPIED AND PASTED ONE OF THE MESSAGES.
IT DOESN'T LIST THE SPECIFIC RESOURCE NAME.
WE DO OF COURSE, REPORT THAT IN THIS PRESENTATION, BUT IT SAYS FOR EACH EFFECTIVELY INDIVIDUAL DEPLOYMENT, IT SAYS THE MEGAWATT QUANTITY AND THE INITIATION TIME OF THE DEPLOYMENT.
BUT IT, DOES IT LIST EACH RESOURCE OR NO? OKAY.
NO, THE, THE RESOURCE NAME IS NOT INCLUDED.
I WILL LOOK AT THE PUBLIC NOTICES REPOSITORY THEN.
SO JUST, JUST TO FOLLOW UP, BILL, I THINK, UM, THE EXACT SET OF RESOURCES BECOMES SOMEWHAT TRANSITORY, UM, UH, OR HAS THE POTENTIAL TO BE SO, UM, AS FOLKS HAVE GAS SUPPLY OR DO NOT HAVE, UH, GAS SUPPLY ON INDIVIDUAL PIPELINES.
SO, UM, WE'D LIKE TO BRING YOU SOME KIND OF PRESENTATION ON, ON WHAT WE CAN COMMUNICATE AND WHAT WE CAN'T.
I UNDERSTAND WHY YOUR INTEREST, NOT SURE IF I CAN GET EXACTLY PARTICULAR ON EVERY UNIT NEAR, NEAR REAL TIME.
UH, SO WE'LL NEED TO HAVE SOME BACK AND FORTH ON THAT.
SO I DO SEE DAVE, I SEE THE VDI INSTRUCTIONS, UM, FOR F S S, IS THERE A REASON WHY WE HAVE SOME ON THE PUBLIC NOTICES AND SOME ON THE OPERATIONS MESSAGES, IT MIGHT BE BETTER TO BE CONSISTENT LIKE THE, HEY GET READY AND HEY, YOU'RE DEPLOYED AT THE SAME PLACE.
AND THEN, UH, I GUESS THE, FOR, FOR, I GUESS THE, THE GET READY COMPONENT, UH, IS, IS ON BOTH, UH, I THINK IN TERMS OF THE, THE USE SPECIFICALLY OF THE PUBLIC NOTICES SITE IS, WAS AGAIN, BASED ON HOW WE HAVE HISTORICALLY DONE THE NON SPIN DEPLOYMENT.
SO THAT, THAT IS WHAT I GUESS OKAY.
THE PATTERN THAT WE WERE FOLLOWING.
AND THEN ON THE SIMILAR TO MARK'S QUESTION, I MEAN, OBVIOUSLY WE WANT YOU GUYS TO UTILIZE THIS SERVICE, UM, WHEN THERE IS LEGITIMATE FUEL SUPPLY RISK, BUT IT'S ALSO NOT CLEAR WHAT CURTAILMENT
[01:55:01]
NOTICES YOU GUYS ARE SEEING THAT IS PROMPTING THE DEPLOYMENT.AND YOU KNOW, FROM OUR PERSPECTIVE, WHY WE CARE IS CUZ THERE'S A COST TO RESTOCKING THE FUEL AND THERE ARE A WHOLE SLEW OF DIFFERENT GAS CURTAILMENT NOTICES THAT WE CAN RECEIVE LEVEL ONE, LEVEL TWO, LEVEL THREE, LEVEL FOUR, AND THEN FORCE MAJEURE PROBABLY MORE THAN THAT TO BE HONEST WITH YOU.
BUT IF WE'RE DEPLOYING BASED ON LIKE A LEVEL ONE OR LEVEL TWO, THOSE ARE PRETTY LIKE A, JUST A NO SHORT RFO IS LIKE ROUTINE.
ALL IT SAYS IS DON'T GO SHORT THE PIPE, DON'T USE MORE GAS THAN WHAT YOU NOMINATED IF YOU'RE DEPLOYING FIRM FUEL BASED ON THAT NOTICE, I, I WOULD PROBABLY ARGUE THAT'S NOT NECESSARY.
UM, AND JUST WE HAVEN'T, TO MARK'S POINT, WE HAVEN'T SEEN THE DETAILS ON WHAT YOU'RE LOOKING AT WHEN YOU ISSUED THE DEPLOYMENT.
SO I THINK THAT'S A GOOD DISCUSSION TO HAVE.
WE JUST WANNA MAKE SURE THAT THE WE'RE, WE'RE SPENDING THE MONEY WISELY.
SO, UH, WE, WE PROBABLY NEED TO HAVE SOME BACK AND FORTH ON, ON THAT, BUT, UM, I MEAN, BROADLY WE USE THE FACT, I, I THINK THERE'S TWO DRIVERS.
THE FIRST IS THE FACT THAT THE GAS PROVIDERS WILL SAY WE ARE ONLY GONNA BE SERVING RETAIL AND CANNOT SERVE BEYOND THE RETAIL LOAD.
AND THERE ARE ANNOUNCEMENTS TO THAT EFFECT.
THERE COULD BE A LOCAL ISSUE AND WE NEED THE PLANT THAT COULD ALSO, UH, TRIGGER, UH, UH, SOME ACTION.
SO I MEAN, LET, LET'S TALK ABOUT THAT AND, AND TRY AND GET YOU WHAT YOU NEED WITHOUT COMPROMISING, UH, WHAT MIGHT BE, YOU KNOW, YEAH.
AND I'M NOT SAYING YOU GUYS DID ANYTHING WRONG, I WOULD JUST LIKE TO EXPLAIN WHAT YOU GUYS SAW THAT PROMPTED THE DEPLOYMENT AND I DON'T KNOW IF WE BRING THAT BACK TO THE NEXT T OR WMS, BUT, UM, I THINK IT'D BE A HEALTHY, UH, DISCUSSION TO HAVE TO MAKE SURE WE'RE UTILIZING THE SERVICE APPROPRIATELY.
I, I, I THINK, UH, DIDN'T MEAN TO, I, I, I THINK YOUR REQUEST IS FAIR AND WE'D LIKE TO ENGAGE YOU ON IT.
I, THAT WOULD BE MY, THE MAIN POINT I WOULD LIKE TO MAKE SURE YOU TAKE AWAY.
THERE MAY JUST BE SOME PLACES THAT AS WE TALK THROUGH IT, YOU WANT TO GO THAT ARE, ARE, ARE NOT WORKABLE FOR US, BUT I THINK ENGAGING WITH THE STAKEHOLDERS ON THIS ISSUE IS REALLY IMPORTANT.
EMILY FOLLOWED BY ARREST ME AND THEN KEVIN.
UM, YEAH, WANT TO REITERATE WHAT BILL SAID? WE AGREE THIS IS AN IMPORTANT SERVICE AND WE APPRECIATE THE INFORMATION THAT YOU BROUGHT TO TACT TODAY.
UM, AND, AND THANK YOU BILL AND DAVE BOTH FOR BETTER ARTICULATING THE PROBLEM I WAS HAVING IN TRACKING DOWN THE INFORMATION THAT SEEMED TO BE IN MULTIPLE PLACES.
UM, SO I WOULD SECOND BILL'S REQUEST THAT THAT ALL BE, UM, MAYBE CENTRALIZED GOING FORWARD AND THE SAME REPOSITORY.
UM, AND THEN IN TERMS OF THE RESTOCKING ISSUE, UM, IS I READ THE PROTOCOLS.
I'M NOT SEEING A REQUIREMENT OF A NOTICE TO THE PUBLIC WHEN ERCOT ORDERS RESTOCKING.
UM, SO I'M NOT GONNA SUGGEST THAT THAT'S SOMETHING THAT Y'ALL ARE REQUIRED TO DO TODAY, BUT WOULD BE CURIOUS IF THERE IS A PLAN TO COMMUNICATE THAT PUBLICLY OR IF MAYBE THAT'S A PROTOCOLS CHANGE WE NEED TO SUPPORT AS A, I THINK WE NEED TO DISCUSS THAT ISSUE.
UM, AND I THINK THAT IS ONE OF THE AREAS FROM MY PERSPECTIVE THAT, UM, PROBABLY NEEDS, NEEDS MORE DISCUSSION.
THERE ISN'T A REQUIREMENT IN THE PROTOCOLS CURRENTLY.
UM, SO I I THINK THERE'S SOME WORK TO BE DONE ON THAT FRONT, ON THE RESTOCKING FRONT.
SO, I MEAN, I THINK YOUR QUESTIONS ARE FAIR.
UH, I'D LIKE TO FIGURE OUT A GOOD WAY TO, TO COMMUNICATE THAT AS WELL.
UM, THE SHORT STORY IS THAT AFTER BOTH EVENTS, UH, IN DECEMBER AND THEN IN, UH, THIS ONE, UH, WE HAVE INSTRUCTED THE RESOURCES TO RESTOCK.
SO I, I DO WANT TO MAKE SURE THAT, UH, RYAN SAID THAT, BUT I JUST WANT TO REITERATE IT.
REMI, UM, THANKS FOR THE INFORMATION.
UH, AND UH, I HAVE SIMILAR CONCERNS LIKE BILL, SO THANK YOU FOR, UH, OFFERING TO BRING THAT INFORMATION.
UM, I HAVE A CLARIFYING QUESTION.
SO IF A GENERATION THAT IS PROVIDING THE FFS, IT, IT MAY BE ALREADY COVERED IN THE PROTOCOL AND I DON'T KNOW, BUT UM, IF THAT RESOURCE HAS, UH, NON FIRM, UH, GAS AND THAT IS CURTAILED, WILL FFS BE DEPLOYED FROM THAT RESOURCE? IF THEY ASK THAT THEY HAVE GAS PROBLEMS? I'M GONNA, UH, I'M GONNA ANSWER
[02:00:01]
THAT AND THEN SEE IF DAVE NEEDS TO ADD ANYTHING ON.UM, OKAY, BUT CURRENTLY THERE IS NO REQUIREMENT FOR RESOURCES TO HAVE FIRM GAS.
UM, SO THAT IS NOT A, IN THE PROTOCOLS THERE'S NO DISQUALIFYING UH, RATIONALE.
IF YOU DON'T HAVE FIRM GAS AND YOU GET CURTAILED, YOU'RE JUST NOT AVAILABLE.
AND IF YOU HAVE THIS PRODUCT, WE CAN, IF, IF WE MEET THE, THE NEEDS, WE COULD DEPLOY THE, THE RESOURCE SO THAT THAT'S OUR CURRENT, CURRENT STANDING PHASE TWO MAY CHANGE SOME OF THOSE THINGS.
THERE'S A LOT OF BACK AND FORTH AND DYNAMICS GOING ON.
UM, DAVE, DO YOU WANT TO ADD ANYTHING TO THAT? NO, I THINK YOU CAPTURED IT.
YEAH, I WAS THINKING OF ANY INCEN POWERS INCENTIVE FROM THAT PERSPECTIVE WHEN LIKE, SO AT THIS POINT, EVEN IF THE RESOURCE HAS NO FIRM FUEL AND THE NON-FARM FUEL GETS CURTAILED, THE RESOURCE CAN REQUEST THAT FFS BE DEPLOYED ON THAT RESOURCE AND THE RESOURCE CAN OPERATE AND THEN LOADS WILL RE REPLACE THE GAS.
SO I, I WOULD SAY IT DIFFERENTLY.
I'M NOT SURE, UH, I MEAN, I'LL LET YOU DISCERN IF, IF IT, SO IF THERE IS INSUFFICIENT GAS, THE RESOURCE CAN CHOOSE ON ITS OWN.
IF IT HAS, UH, AN ALTERNATIVE, ALTERNATIVE FUEL TO, TO RUN, IT HAS TO KEEP THE FIRM FUEL SUPPLY STEADY.
IT WOULD INFORM ERCOT THAT IT DOES NOT HAVE, YOU KNOW, A STEADY NORMAL FUEL SUPPLY AND ONLY IF NEEDED WOULD ERCOT INSTRUCT IT AS PART OF FF SS TO RUN.
SO THAT DOES NOT HAPPEN AUTOMATICALLY.
IT NEEDS TO HAPPEN BASED ON, UH, A VIEWED SET OF EVENTS.
SO ERCOT MIGHT DECIDE THAT SYSTEM-WIDE IT IS NOT NEEDED THAT RESOURCE AND NOT ALLOW IT TO USE THE FS? CORRECT? IT, IT, IT'S ACTUALLY I WOULD SAY MORE STRINGENT THAN THAT.
SO YOU WOULD TELL ME YOU CAN'T RUN AND THEN I WOULD ULTIMATELY DECIDE IF YOU NEED TO RUN ON THE FFF S SS PROGRAM.
KEVIN HANSON? YEAH, I JUST WANT A LITTLE BIT CLARITY IN TERMS OF, UH, LOOKING AT THE PUBLIC NOTICES THERE, THERE'S MULTIPLE ENTRIES OF, UH, DEPLOYMENT OF ZERO MEGAWATTS.
I'M JUST BEING TRYING TO GET CLARITY.
DOES THIS MEAN MOVED FROM BEING NON FIRM CONTRACTED GAS TO USING THE FFS SERVICE AT THAT TIME? THAT'S A GOOD QUESTION.
THAT, THAT IS THE, THAT IS THE FORMAT OF RECALL, KEVIN.
SO IF YOU ACTUALLY LOOK AT THE INITIAL DEPLOYMENT, YOU'LL, YOU'LL ACTUALLY SEE, AND I'LL GO BACK AND LOOK AT THE TIMING HERE, BUT THE INITIAL DEPLOYMENTS HAVE A POSITIVE MEGAWATT AND THEN THERE WAS A, A PROCESS FOR ESSENTIALLY THE END OF THAT DEPLOYMENT.
YOU'LL SEE A ZERO MEGAWATT THAT'S EFFECTIVELY A RECALL I OF THE SERVICE.
CAUSE I'M LOOKING ON THE, UH, 31ST THERE AT NOT FIVE 50.
ONE AT 5 57 41 SECONDS THERE, I GUESS.
UM, ZERO MEGAWATTS AND THEN YOU GOT IT SIX TWENTY NINE, A HUNDRED SIXTY MEGAWATTS.
SO I JUST WANNA MAKE SURE I UNDERSTAND IT'S WITH THE SAME LANGUAGE.
I GUESS THE DISTINCTION THERE FOR THE MO IS, AND WE MENTIONED THIS, I I THINK ON THE SLIDE WHERE, UH, RYAN TALKED ABOUT THE DEPLOYMENT, THE MANNER IN WHICH WE ISSUED DDI I IS TO DO A INDIVIDUAL VDI FOR EACH OPERATING DAY.
SO YOU'LL SEE A CLOSE OR AN ENDING OF THE DEPLOYMENT FOR EACH OPERATING DAY AND THEN A NEW VDI FOR THE NEXT DAY.
SO THE, THE ONE FOR EXAMPLE THAT YOU WERE TALKING ABOUT THAT WENT OUT CLOSER TO SIX 30 ON JANUARY 31ST WAS A CONTINUED DEPLOYMENT FOR FEBRUARY 1ST.
FIRST IS THE 6:00 PM ON 31ST WAS THE CANCEL YOU'RE SAYING? NO.
SO RIGHT BEFORE, WELL, I GUESS RIGHT BEFORE 6:00 PM YOU SEE THE END OF THE DEPLOYMENT FOR THE 31ST, AND THEN YOU SEE A DEPLOYMENT RIGHT AFTER THAT FOR THIS, FOR FEBRUARY 1ST.
I I DID HAVE A COUPLE OF QUESTIONS MYSELF AND RYAN, I'M GLAD YOU QUEUED UP THIS SLIDE RIGHT HERE.
[02:05:01]
RESOURCES RIGHT HERE, I, I DON'T WANT TO SAY IS, IS CHRONIC BASED ON TWO SEPARATE EVENTS, BUT THIS BASKET OF RESOURCES HAS BEEN DEPLOYED IN BOTH EVENTS AS FAR AS THAT'S CONCERNED.SO QUESTION IS, ARE WE FINDING THAT THE 48 HOUR DURATION IS IN TERMS OF, UH, DEPLOYMENT TIME, UH, STIPULATED FOR F S S, ARE WE FINDING THAT THAT'S ADEQUATE OR DO WE NEED A LONGER TIME PERIOD FOR FUTURE FS CONTRACTING? SO, UM, THE 48 HOUR TIME PERIOD SEEMS TO BE EXTREMELY HELPFUL, BUT IF YOU TOOK AN EXTREME URI LIGHT CASE, UH, SOMETHING IN THE 70 PLUS HOURS IS, UM, MORE APPLICABLE IN THAT INSTANCE.
IN OTHER WORDS, THE 40 HOURS WOULD'VE LIKELY BEEN EXHAUSTED, UH, DURING, DURING URI.
UM, THAT IS SOMETHING I THINK WE NEED TO KEEP WORKING THROUGH, UH, FOR THIS PROGRAM.
UM, THOSE WERE KIND OF, UH, SEMINAL QUESTIONS ASKED OF THE COMMISSION.
THE, THE FEEDBACK WE GOT DROVE THE PROGRAM.
I WOULD SAY WE NEED TO CONTINUE DISCUSSION DISCUSSIONS ON THAT FRONT AND SHOULD NOT CLOSE THE DOOR ON, ON THOSE TYPES OF THINGS.
UM, I THINK, UH, THE, THERE'S DYNAMICS ON BOTH SIDES THAT, THAT ARE WORTH TALKING ABOUT THERE.
AND THEN MY NEXT QUESTION, UM, AND IT MAY BE TOO EARLY TO TO, TO DISCUSS THIS.
WE MAY HAVE TO WAIT FOR THE SEASONAL REPORT WHEN IT COMES OUT, BUT AS IT PERTAINS TO THE, UH, REFUELING COSTS, THE RECOVERY OF THOSE, DO WE KNOW, ARE THEY MOSTLY BEING RECOVERED THROUGH THE MARKET, UH, THROUGH PRICE, UH, THROUGH PRICES THAT THE GENERATORS ARE RECEIVING? OR ARE WE HAVING TO UPLIFT THOSE COSTS? I, I DON'T, I HAVE A GENERAL ANSWER TO THIS.
UM, I DON'T KNOW IF YOU HAVE MORE, SOMETHING MORE SPECIFIC.
SO, UH, A VAST MAJORITY OF IT IS BEING, UM, RECOVERED THROUGH THE REVENUE, THE EXCESS, EXCESS REVENUE IS IN A FAIR WORD, BUT THE, THERE'S A CLAW BACK RELATIVE TO THE REVENUE EARNED IN THE MARKET.
THERE IS STILL, I BELIEVE, A SMALL UPLIFT CHARGE THAT WILL RESULT FROM, UH, FROM THESE TWO DEPLOYMENTS.
BUT THE VAST MAJORITY IS, AS I RECALL, IS, UM, THIS, I WORRY ABOUT CALLING IT A CLAW ACT.
I'VE BEEN CORRECTED ON THAT, BUT I DON'T KNOW WHAT THE BETTER TERM IS, BUT THERE, THERE IS A, UH, A, UH, UH, BALANCING OUT OF, OF, OF THOSE REVENUES, UH, RELATIVE TO THE COSTS.
SO, ALL RIGHT, BILL BARNES, WHEN WE DEPLOY FFF SS RESOURCES, UM, ARE WE ALWAYS DIRECTING THEM TO BURN THE ALTERNATIVE FUEL? LIKE LET'S SAY, THIS GOES BACK TO MY INITIAL QUESTION, IS A LEVEL TWO QU WHAT DOESN'T MEAN YOU CAN'T GET GAS? OR ARE YOU SEEING SITUATIONS WHERE THERE IS LITERALLY NO GAS SUPPLY AVAILABLE FOR THESE RESOURCES, WHICH I DON'T THINK HAPPENED, BUT MAYBE THAT'S THE CASE.
SO LEADS ME TO THE QUESTION OF WHAT HAPPENS IF I'M A F F SS RESOURCE AND I NOMINATED GAS FOR THE NEXT DAY, I BOUGHT GAS FOR THE NEXT DAY, AND THEN I GET A DEPLOYMENT INSTRUCTION FROM ERCOT TO START BURNING DIESEL.
SO, UH, MY UNDERSTANDING IS, UM, WHEN WE HAVE ORDERED THIS, AND I'M HAPPY TO GO BACK AND, AND DOUBLE CHECK THIS BECAUSE I'M GOING OFF A MEMORY HERE.
THE RESOURCES COULD NOT RUN ON THEIR, UH, NORMAL FUEL SUPPLY.
UM, AND I'M NOT AWARE OF, AND, AND IT COULD BE THINGS LIKE, UH, PRESSURE, UH, AND, AND OTHER THINGS MIGHT HAVE GONE IN THERE, BUT, UH, THEY WERE UNABLE TO RUN ON THE, UM, GAS.
IAN, BILL, I CAN TELL YOU ONE OF THOSE TWO RESOURCES, UM, IN COLD WATER EVENTS IS COMPLETELY CURTAILED FROM THEIR GAS SUPPLIER.
ANY OTHER COMMENTS OR QUESTIONS FOR RYAN? OKAY, SEE YOU.
THANKS FOR THE, OH, I'M SORRY.
ARE WE LOOKING AT BOTH INTRASTATE AND INTERSTATE PIPELINE SITUATIONS? WE'RE EVALUATING THE SITUATION AT THE TIME.
UH, SO, SO THE SHORT ANSWER I THINK IS YES, BUT YOU SHOULD PROBABLY LISTEN TO THE COMMISSION DISCUSSION AROUND THAT ISSUE, UH, AT THE LAST OPEN MEETING.
YEAH, BECAUSE TO ME, UH, I THINK THERE'S
[02:10:01]
STILL SOME UNCERTAINTY ABOUT WHAT, WHAT ULTIMATELY IS GONNA BE THERE, BECAUSE I'M JUST THINKING THE, UH, NON-TEXT, UH, DEMAND IS GONNA BE THE HUGE PIPE IN THE FUTURE, EVEN MORE SO, I MEAN, SOME SITUATION WE'RE SEEING.SO I, I, I THINK THERE'S A MYRIAD OF ISSUES WITH WRAPPED IN THE QUESTION THAT YOU ASKED, INCLUDING VISIBILITY AND, UH, YOU KNOW, WHAT, WHAT CAN HAPPEN WITH, WITH THE PIPELINES, AND I THINK THE COMMISSION'S KIND OF WRESTLING WITH THAT WHOLE, UH, THOSE, THE, THOSE ISSUES, UM, AND TRYING TO FIGURE OUT, UH, THE BEST PATH FORWARD.
ANY OTHER QUESTIONS FOR RYAN? OKAY.
OKAY, THAT'S THE LAST OF THE ERCOT REPORTS.
[12. Other Business]
BUSINESS NOW, JUST, UH, WANTED TO GIVE KENAN A FEW MINUTES TO TALK ABOUT THE BRIDGE SOLUTIONS AND AN UPDATE THAT HE MAY HAVE THERE FOR US.YEAH, THIS HAS BEEN A LOT OF TALKING BY ME TODAY, AND IT'S NOT AS MUCH FUN AS WHEN I GET TO SIT AND BE QUIET.
BUT, UM, I, I, I DO THINK THIS, UH, WHAT I'D LIKE TO SHARE WITH YOU IS REALLY IMPORTANT.
UM, THE COMMISSION HAS ASKED THAT THE, OUR BOARD OF DIRECTORS, UH, MAKE A RECOMMENDATION OR, OR ENDORSE A RECOMMENDATION ON BRIDGE SOLUTIONS AT THEIR APRIL MEETING.
UH, THE COMMISSION WILL THEN, UH, CONSIDER THAT AND, YOU KNOW, OTHER FACTORS.
UM, BUT THEY'RE INTERESTED IN PROVIDING A BRIDGE.
UM, IF YOU'VE LISTENED TO THE LEGISLATIVE DISCUSSIONS ON THIS TOPIC, THERE IS ALSO INTEREST THERE ON, ON THIS.
SO, UM, OUR PROPOSED PROCESS IS WE'RE TRYING TO FINALIZE SOME GENERAL INITIAL THOUGHTS THAT WE WILL PROVIDE TO THE BOARD AT THEIR NEXT MEETING SO THAT AT, AT R AND M, THAT IS NEXT MONDAY, THE 27TH.
UM, WE WILL, UH, UH, THEN TAKE THAT AS A INITIAL SET OF THOUGHTS AND SCHEDULE STAKEHOLDER WORKSHOPS TO SOLICIT FEEDBACK AND CRITIQUE ON WHAT WE HAVE THAT WOULD INCLUDE IDEAS THAT WE HAVE NOT CONSIDERED OR MAY HAVE, UH, OVERLOOKED.
SO WE WOULD VERY MUCH LIKE TO HEAR FROM INTERESTED STAKEHOLDERS ON, UH, WHAT WE HAVE OUT THERE.
IT IS PRETTY BROAD, BUT THAT DOESN'T MEAN WE DIDN'T MISS SOMETHING, UM, THAT, THAT WE NEED TO CONSIDER.
UM, THERE ARE, UH, I, UH, I THINK THERE WILL, WILL, OUR GOAL IS TO HAVE PROS AND CONS FOR EACH, UH, ITEM.
UM, I THINK IT HAS TO LIVE WITHIN THE KIND OF CONSTRUCT OF DELIVERING SOMETHING PROBABLY IN THE NEXT 12 MONTHS IS ON THE LONG END OF THIS, NOT, NOT THE, NOT THE SHORT END.
UM, UH, SO WITH THAT IN MIND, UM, YOU KNOW, AS SOON AS WE KIND OF FINALIZE THIS DOCUMENT AND GET IT OUT, MY NEXT STEP IS TO START, UH, SCHEDULING WORKSHOPS.
AND I'M LOOKING, I'M THINKING A MINIMUM, MINIMUM OF TWO.
UH, AND, UH, HAVE ENOUGH SPACE BETWEEN THOSE TO, UH, A HAVE PEOPLE PROVIDE WRITTEN COMMENTS IF THEY WOULD LIKE AND BE, HAVE A KIND OF A REPLY COMMENT OR I'VE CHANGED MY MIND, OR I LIKE THIS IDEA TYPE, TYPE OF, UH, UH, ABILITY.
AND, UM, OUR GOAL IS TO, UH, INCORPORATE THOSE AND THEN MAKE A RECOMMENDATION TO THE BOARD AS INSTRUCTED BY THE COMMISSION.
THIS, WHAT I'VE JUST LAID OUT, THE BOARD HAS NOT YET APPROVED.
UM, SO IT IS, UH, MY EXPECTATION AND I MIGHT HAVE TO PIVOT ON WHAT I JUST SAID, UH, DEPENDING ON THE FEEDBACK THAT, THAT I GET.
SO I, I JUST WANNA PUT THAT, UH, CAVEAT OUT THERE.
UM, BUT, UH, THAT IS THE EXPECTATION, UH, IN IN OUR CURRENT, UH, UH, DIRECTION THAT WE'RE TAKING.
UH, WE WON'T, WE DON'T WANT TO TAKE THE BOARD BY SURPRISE IN APRIL.
SO WE'LL, YOU KNOW, AT LEAST SET SOME FOUNDATION FOR THE DISCUSSION AND THEN, UM, HOPEFULLY
[02:15:01]
BE ABLE TO TEE UP A VOTE FOR THEM, UM, IN APRIL.ANY QUESTIONS FOR KAAN? ALL RIGHT.
UH, THE ONLY THING I WANTED TO TEE UP OTHER, OTHER, UNDER OTHER BUSINESS, AND I HAD DISCUSSION WITH KAAN AND, AND DAN EARLIER.
UH, I KNOW WE HAD DISCUSSION LAST MONTH AS IT PERTAINED TO ELLIOT IN DECEMBER, AND SOME OF THE FINDINGS THAT WE'RE HOPING TO, UH, HEAR FROM, FROM, UM, YOU KNOW, ADDITIONAL ANALYSIS THAT ARCOS DONE MAY BE PERTAINING TO THE RFIS THAT WERE ISSUED AND SO FORTH.
AND SO I'M HOPING THAT WE GET ADDITIONAL FEEDBACK, UH, NEXT MONTH.
AND IN ADDITION TO MAYBE GETTING SOME ADDITIONAL INFORMATION FROM CALVIN BASED ON SOME OF THE ANALYSIS THEY'VE DONE ON THE FORECASTING SIDE AS WELL.
SO WE HOPE TO HAVE A, A FAIRLY COMPREHENSIVE UPDATE ON THAT NEXT MONTH.
YES, JU I JUST WANNA CONFIRM THAT, UM, UH, I TALKED TO CLIFF, THERE WAS SOME SCHEDULING CHALLENGES AND SOME OTHER THI AND, AND LACK OF COMPLETE INFORMATION ON SOME OF THE I ITEMS NAMED, MOST NOTABLY, THE RFPS ARE STILL BEING WORKED ON.
SO, UM, WE WILL WORK ON COMPILING THAT AND GIVING THE PRESENTATION TO TACK AT THE APRIL TAC MEETING.
NEXT MIGHT BE A MORE ACCURATE MARCH 21ST.
ANY OTHER BUSINESS ANYONE WANTS TO RAISE? OKAY.
[13. Combo Ballot (Vote)]
THE COMBO BALLOT.SO COREY'S GOT A RATHER SHORT LIST FOR US TODAY, SO, ALL RIGHT, SO YOU SEE THE DIFFERENT ITEMS THAT WILL BE INCLUDED ON THE COMBO BALLOT.
LOOKING FOR A MOTION MOTION FROM KEVIN, LOOKING FOR A SECOND TO APPROVE THE COMBO BALLOT.
GOT A SECOND FROM MIKE WEIS? YES, SIR.
ALL RIGHT, COREY, IT'S ALL YOURS.
WE WILL BEGIN UP WITH THE CONSUMER SEGMENT WITH MARK.
YES, THANK YOU GARRETT FOR BILL.
ONTO OUR INDEPENDENT GENERATORS.
THANK YOU BRETT FOR BRIAN SAMS. YES, THANK YOU, CAITLIN.
ON OUR IPMS. JEREMY? YES, THANK YOU, RASHMI.
DON'T BELIEVE SETH JOINED US, BUT CORRECT ME IF I'M WRONG, SETH.
AND I LOST YOU AS WELL, JENNIFER.
OKAY, WELL THAT'S THE LAST ITEM ON OUR AGENDA TODAY.
WANTED TO NOTE THAT OUR NEXT MEETING IS MARCH 21ST.
AGAIN, APPRECIATE EVERYONE COMING IN AND JOINING US TODAY ON A, ON A STATE AND FEDERAL HOLIDAY.
SO, UH, ANYHOW, ENJOY THE REST OF YOUR DAY AND WE'LL SEE YOU NEXT MONTH.