[00:00:02]
AND WE ARE GETTING READY TO START THE MAY 23RD TECH MEETING.
UH, JORDAN HAS SOME MEETING MANAGEMENT TIPS IN THE CHAT, BUT I WOULD JUST REPEAT THOSE REAL QUICKLY FOR YOU.
JUST REMEMBER THE CHAT FUNCTION, THAT IS WHAT WE'RE USING TO QUEUE FOR DISCUSSION AND MOTIONS.
PLEASE GIVE, UH, THE TIME FOR THE CHAIR TO RECOGNIZE YOU BEFORE YOU BEGIN SPEAKING.
AND THEN, UH, AS WE GO TO THE BALLOTING PROCESS AND APPROACH YOUR SEGMENT AS A VOTING MEMBER, PLEASE UNMUTE YOUR PHONE.
AND THEN AFTER YOU HAVE CAST YOUR VOTE, PLEASE REMEMBER TO MUTE.
THAT WILL HELP US BE A LITTLE MORE EFFICIENT WITH THE BALLOTING PROCESS.
AND THEN IF THE MEETING ENDS FOR ANY REASON, GIVE US JUST A FEW MINUTES.
WE SHOULD BE ABLE TO START THE WEBEX AGAIN.
AND THAT CLIFF, WE'RE READY TO GET STARTED THIS MORNING AND WE DO HAVE A QUORUM.
SUSIE, CAN YOU CONFIRM THAT YOU CAN HEAR ME? YES, I CAN HEAR YOU.
UH, GOOD MORNING, T MEMBERS AND GUESTS.
UH, IT'S, UH, MAY 23RD, AND THIS IS OUR MAY ITERATION OF OUR ATTACK MEETING.
UM, AS YOU RECALL, WE DID, UH, NOT HOLD AN APRIL TAC MEETING, SO GOT A LITTLE BIT MORE BUSINESS TO CONDUCT THIS MONTH AS A RESULT.
[1. Antitrust Admonition ]
SO WE'LL START FIRST OF ALL WITH THE ANTITRUST ADMONITION IN THE DISCLAIMER.UH, IF YOU TAKE A LOOK AT THOSE ON THE SCREEN, I WILL GO AHEAD AND ANNOUNCE WHO WE HAVE RIGHT NOW FOR PROXIES FOR TODAY'S TACK.
SO ON THE CONSUMER SIDE, UH, WE HAVE GARRETT KENT, WHO HAS PROVIDED HIS PROXY TO BILL SMITH.
ON THE INDEPENDENT GENERATOR SIDE, WE'VE GOT BOB HILTON, WHO'S PROVIDED HIS PROXY TO CAITLIN SMITH.
AND ON THE MUNI SIDE, ALICIA LOVING HAS GIVEN HER PROXY TO DAVID KEY.
OKAY, NOW THAT YOU HAVE BEEN ADMONISHED AND YOU KNOW WHO IS ON THE PHONE TODAY AND WHO'S TAKEN WHOSE PLACE,
[2. Approval of TAC Meeting Minutes (Possible Vote)]
WE'LL GO AHEAD AND ROLL THROUGH THE MEETING MINUTES.SO, UH, WE'VE GOT THREE DIFFERENT SETS OF MEETING MINUTES.
WE'VE GOT OUR REGULAR MEETING MINUTES FROM MARCH 21ST, 2023 MEETING, AND TWO SUBSEQUENT, UH, SETS OF MEETING MEETINGS FROM ADDITIONAL MEETINGS THAT WE HELD, UH, AT THE END OF MARCH AND EARLY PART OF APRIL THERE.
SUSIE, DO WE HAVE ANY COMMENTS, UH, OR EDITS THAT HAVE BEEN PROPOSED? NO.
UH, IF THERE'S NO QUESTIONS OR COMMENTS ON THE TRACK MEETING MINUTES, I WOULD PROPOSE THAT WE MOVE THAT TO THE COMBO BALLOT, UM, IF THERE'S NO OBJECTIONS.
[3. Meeting Updates]
HEARING NONE, WE WILL MOVE TO, UH, AGENDA ITEM NUMBER THREE, WHICH ARE THE MEETING UPDATES.WE'VE GOT, UH, THREE DIFFERENT SETS OF MEETINGS THERE.
WE'VE GOT THE MARCH 23RD, 2023 P CT MEETING, THE MAY 11TH, 2023 P C T MEETING, AND THE APRIL 17TH TO 18TH BOARD MEETINGS THERE.
UM, THAT BEING SAID, A LOT OF ACTIVITY OVER THE COURSE OF THE LAST COUPLE MONTHS, BUT DID WANNA NOTE THAT ALL OF THE REVISION REQUESTS THAT WERE RE RECOMMENDED FOR APPROVAL BY TAC AND THE BOARD WERE ULTIMATELY APPROVED BY THE PUBLIC UTILITY COMMISSION AT THEIR RESPECTIVE MEETINGS.
ANY COMMENTS OR QUESTIONS ON THAT SPECIFIC AGENDA ITEM? OKAY.
[4. Review of ERCOT Market Impact Statements/Opinions and IMM Opinions]
SEEING NONE, WE WILL MOVE ON TO AGENDA ITEM NUMBER FOUR, WHICH WAS, IS, UH, THE REVIEW OF ERCOT MARKET IMPACT STATEMENTS AND OPINIONS AND THE I M M OPINIONS.WE'LL START WITH ANN ON THE ERCOT MARKET IMPACT STATEMENTS, UM, AND I BELIEVE THERE MAY BE A COUPLE THEY MAY WANNA WITHHOLD AN OPINION ON.
SO, ANN, I'LL TURN IT OVER TO YOU.
UM, ERCOT IS IN SUPPORT, UH, REVISION REQUESTS THAT ARE HERE FOR TAC CONSIDERATION.
I WILL POINT OUT A COUPLE, UM, THAT WE HAVE MODIFIED OPINIONS ON, UM, NPR 1167 AND 1169.
THOSE TWO WERE BOTH IN SUPPORT OF THE ERCOT COMMENTS INSTEAD OF THE P R S VERSION.
AND WE CAN TALK ABOUT THOSE FURTHER WHEN WE GET INTO DISCUSSION OF THE NPRS, UM, FOR I M OPINIONS, I'LL LET CARRIE SPEAK TO THOSE IF SHE WANTS TO, BUT I KNOW THAT THEY HAVE NO OPINION ON SOME OF THESE.
UM, BUT THEY ARE IN SUPPORT OF V C M R 31, 11 66 AND 1169 AND 1167.
I BELIEVE THEY'RE IN SUPPORT OF THE P RS VERSION AND THEN 1177 AND 78.
UH, THEY MIGHT WANNA EXPLAIN THOSE, UM, AS THEY ARE MORE INVOLVED OPINIONS ON THOSE.
CARRIE, ARE YOU AVAILABLE TO TALK THROUGH YOUR OPINION? I'M HERE.
THIS IS, UM, I'LL TALK A LITTLE BIT ABOUT 1177.
UM, YOU KNOW, WE HAVE A LOT OF DISCUSSION ABOUT THIS AND WE, THERE IS A PO UH, YOU KNOW, WE'RE REALLY LOOKING AT THIS AS A TEMPORARY SOLUTION, UM, THE CONSTELLATION VERSION.
AND, UM, YOU KNOW, THERE'S A POSSIBILITY THAT PRICES COULD BE AFFECTED BY THIS.
IF, UH, THE QSC DOESN'T PROPERLY FOLLOW SOME OF THE LANGUAGE THAT'S IN THE
[00:05:01]
NPR, UM, IT DOESN'T REALLY PROVIDE FULL GUARDRAILS AND WE, YOU KNOW, ENCOURAGE STAKEHOLDERS TO WORK ON SOMETHING MORE PERMANENT.AND TO THAT END, WE'VE SEEN THE CONSUMER COMMENTS THAT WERE FILED AND WE SUPPORT THAT VERSION OF THE NPR.
WE SUPPORT THOSE COMMENTS, UM, ON 1178.
UM, WE'RE KIND OF ABSTAINING ON THE 75 OFFER FLOOR HERE BECAUSE I REALLY THINK THAT, UM, WE NEED TO SEE WHAT THE DEPLOYMENT SITUATION IS GONNA BE ONCE ECR R S IS IMPLEMENTED.
AND SO, UH, JUST WANNA POINT OUT THAT WE MIGHT NEED TO REVISIT THIS ONCE WE SEE HOW, UH, FREQUENTLY ECR R S IS DEPLOYED BEFORE NON SPEND.
AND YEAH, JUST ON 1167, WE, WE DO SUPPORT THE PRS VERSION THAT WAS APPROVED.
ALL RIGHT, CARRIE, AND THANK YOU BOTH.
UH, ANY COMMENTS OR QUESTIONS ON THE, UH, MARKET IMPACT STATEMENTS OR OPINIONS PROVIDED BY EITHER ERCOT OR THE I M M? OKAY,
[5. PRS Report (Vote)]
SEEING NONE, WE WILL CLOSE OUT THAT AGENDA ITEM AND MOVE ON TO AGENDA ITEM NUMBER FIVE, WHICH IS THE P R S REPORT.MARTHA HENSON FROM ENCORE WITH THE P R S UPDATE, THERE ARE A TOTAL OF NINE VOTING ITEMS COMING FROM P R S FOR TAX CONSIDERATION TODAY.
THE FIRST SEVEN HERE ON THIS SLIDE, WE'RE ALL UNOPPOSED AT P R S AND WE'RE ALL NO IMPACT.
SO THE FIRST ONE ON THE LIST IS 1161 THAT CAME FROM ERCOT.
IT'S BASICALLY SAYING THAT IRRS THAT ARE ONLINE BUT NOT PRODUCING REAL OR REACTIVE POWER ARE NOT REQUIRED TO PROVIDE VERBAL NOTIFICATIONS TO ERCOT REGARDING THEIR AVR STATUS CHANGES DURING THESE OPERATING CONDITIONS.
1163 BASICALLY DISCONTINUES THE PROCESS OF EVALUATING I D R METERS TO DETERMINE IF THEY ARE WEATHER SENSITIVE.
THERE'S ALSO A LOAD PRO PROFILE GUIDE REVISION REQUEST ASSOCIATED WITH THIS NPR R THAT IS STILL BEING PROCESSED AT RMS 1166 CHANGES THE PROTECTED INFORMATION STATUS OF DCTS SCHEDULE INFORMATION FROM EXPIRING 60 DAYS AFTER THE OPERATING DAY TO THE DATE THAT ERCOT FILES ITS MONTHLY DC TY REPORT WITH THE COMMISSION 1167 IS IMPLEMENTING SEVERAL IMPROVEMENTS TO THE FIRM FUELS SUPPLY SERVICE PROCESSES.
UM, THIS ONE I WOULD NOTE, UH, ERCOT FILED SOME COMMENTS ON 1167 AFTER P R S ON THE 16TH OF MAY FOR TAX CONSIDERATION.
TODAY, 1168 IS MAKING SOME CHANGES TO THE PROTOCOL LANGUAGE COVERING CONTINUOUS SERVICE AGREEMENTS.
1169 IS ANOTHER FIRM FUEL N P R R.
IT'S EXPANDING THE SERVICE TO INCLUDE NATURAL GAS RESOURCES WITH OWNED NATURAL GAS THAT'S STORED OFFSITE AND HAS FIRM TRANSPORTATION AND STORAGE AGREEMENTS ON THIS ONE.
SINCE P R S, THERE BEEN ADDITIONAL COMMENTS SUBMITTED BY CALPINE AND ALSO BY ERCOT, WHICH BOTH POSTED YESTERDAY.
AND THEN 1178 IS PROVIDING SOME CLARIFICATIONS AND UPDATES AROUND, UM, EXPECTATIONS FOR RESOURCES PROVIDING E C R S.
SO, IN SUMMARY ON THIS SLIDE SEVEN, NO IMPACT NPR, ALL UNOPPOSED AT P R S WITH COMMENTS FILED ON 1167 AND 1169 FOR TAC REVIEW TODAY.
LET'S, UM, LET'S SEE IF WE CAN DISPOSE OF A FEW OF THESE RIGHT NOW BEFORE WE MOVE ON.
UM, IF WE COULD, IF THERE'S NO OBJECTION TO IT, I THINK WHAT WE'D LIKE TO DO IS PLACE 1161 RECOMMEND APPROVAL AND PLACE THOSE ON THE COMBO BALLOT FOR 11 61, 11 66, 11 68, 11 78, AND WE WOULD GO AHEAD AND TABLE 1163 AS WE'RE WAITING FOR A LOW PROFILE GUIDE REVISION REQUEST TO CATCH UP.
SO, UH, THAT WOULD BE MY RECOMMENDATION.
IF THERE'S NO OBJECTIONS TO THAT, THEN WE'LL GO AHEAD AND, AND DO SO ANY OBJECTIONS TO THAT, UH, METHOD OF MOVING FORWARD.
SO, MARTHA, WHY DON'T WE GO AHEAD AND, UH, ROLL ALL THE WAY THROUGH YOUR PR S UPDATE AND THEN WE'LL GO AHEAD AND PICK UP THOSE THAT HAVE ADDITIONAL COMMENTS OR HAVE OPPOSING VOTES.
CLIFF, UH, COREY, CAN YOU GO TO THE NEXT SLIDE PLEASE? THANK YOU.
UM, SO THE LAST TWO NPRS HERE HAD OPPOSING VOTES AT P RS 1143 IS PERMITTING ERCOT TO ALLOW STORAGE RESOURCES TO CHARGE DURING
[00:10:01]
EEA THREE ON THE INITIAL LANGUAGE VOTE AT P R S IN APRIL.THERE WAS ONE OPPOSING VOTE ON THIS FROM THE COOPERATIVE SEGMENT AND ALSO EIGHT ABSTENTIONS.
AND THEN THIS MONTH WHEN THE IMPACT ANALYSIS WAS REVIEWED, THERE WERE FOUR ABSTENTIONS ON THAT VOTE.
TWO FROM THE CO-OP SEGMENT, ONE FROM THE GENERATOR SEGMENT, AND ONE FROM THE MUNI SEGMENT ON THIS ONE.
SINCE P R S ERCOT HAS FILED COMMENTS, THOSE WERE POSTED ON THE 19TH, UM, CHEWING UP IN THE LANGUAGE WITH BASELINE UPDATES TO THE PROTOCOLS.
AND THEN THERE'S ALSO BEEN A REVISED IMPACT ANALYSIS POSTED, WHICH CAME OUT YESTERDAY INDICATING THAT, UH, 1143 CAN TAKE EFFECT UPON P U C APPROVAL.
AND THEN THE LAST ONE HERE, 1177, WAS SPONSORED BY CONSTELLATION.
UM, IT'S BASICALLY LETTING GENERATION RESOURCES FILE EXCEPTIONAL FUEL COSTS THAT INCLUDE CONTRACT COSTS AND PIPELINE MANDATED COSTS, AND ENHANCES THE PROCESS FOR ERCOT AND I M M TO VERIFY THESE COSTS.
UM, P R S RECOMMENDED APPROVAL OF IT, UH, WITH ONE OPPOSING VOTE FROM THE CONSUMER SEGMENT.
AND THERE WERE THREE ABSTENTIONS, UH, ONE FROM RESIDENTIAL, SORRY, ONE FROM THE CONSUMER SEGMENT.
ONE FROM THE REP SEGMENT, ACTUALLY TWO FROM THE RE REP SEGMENT, SORRY.
UM, THIS ONE ALSO SINCE P R S HAS HAD AN IA POSTED FOR REVIEW, IT CAME OUT ON THE 16TH, IT'S NO IMPACT.
AND THEN LAST, AS CARRIE MENTIONED EARLIER, THERE WERE SOME CONSUMER COMMENTS POSTED YESTERDAY FOR TACK TO LOOK AT TODAY.
SO THAT COVERS ALL THE VOTING ITEMS, CLIFF.
SO, ALRIGHT, SO LET'S GO AHEAD AND, UH, WE'LL ROLL THROUGH THE ITEMS, UM, AS WERE LAID OUT.
WERE, WE'LL START WITH, UM, 11, UH, SORRY, HERE, WE'LL START WITH 1167 IF WE COULD, UM, AND GO AHEAD AND, AND DISCUSS THAT ONE FIRST.
SO WE DO HAVE THE MAY 16TH COMMENTS THAT, UH, MARTHA HAD PREVIOUSLY INDI, UH, INDICATED EXISTED.
SO LET'S SEE IF WE CAN GET SOMEONE FROM ERCOT, I BELIEVE DAVE MAGGIO, YOU'LL BE SPEAKING TO THAT.
UM, LET'S GO AHEAD AND TEE THAT UP FIRST.
SO, DAVE, YOU AVAILABLE? I AM.
CAN Y'ALL HEAR ME? CLIFF? YES, SIR.
AND I DO, SO WE, WE'VE GOT A COUPLE OF FOLKS ALREADY IN THE QUEUE.
UH, I GUESS I'LL, I'LL SPEAK QUICKLY TO OUR COMMENTS AND THEN WE CAN KICK OFF THE CONVERSATION ON IT.
UH, THE IN, IN TERMS OF THE CHANGES THAT WE'RE PROPOSING, THEY'RE REALLY ISOLATED TO, TO ONE SMALL COMPONENT.
UH, THERE'S TWO PARAGRAPHS IN IN SECTION 8.11216.
UH, WE HAD SUBMITTED SOME COMMENTS BACK IN, UH, THE, I THINK IT WAS IN THE LATTER PART OF APRIL, MAKING SOME CHANGES SPECIFICALLY TO, UH, THANK YOU THAT, THAT'S PERFECT.
UH, SPECIFIC TO SOME OF THE LANGUAGE AROUND, UH, DE-CERTIFICATION AND DISQUALIFICATION FOR RESOURCE PROVIDING, UH, FIRM FUEL, UH, MANY OF THOSE WERE ACCEPTED, UH, WITH ONE EXCEPTION THAT OCCURRED AS A CHANGES PART OF PRS.
AND THAT WAS TO, UH, ADD LANGUAGE THAT STATED THAT, UH, THE FAILURES HAD TO BE RELATED TO OR DUE TO A FUEL RELATED ISSUE.
SO IN OUR COMMENTS IN LATE APRIL, WE HAD STRUCK THAT SPECIFIC LANGUAGE.
AND THE REASON FOR THIS IS REALLY RECOGNIZING THAT, UH, SORT OF REGARDLESS OF THE ISSUE, THE FIRM FUEL SERVICE IS A, IS A HIGH RELIABILITY ISSUE.
AND THERE'S REALLY TWO COMPONENTS WHEN WE ARE ASKING FOLKS TO PROVIDE THIS SERVICE.
THERE IS A COMPONENT OF HAVING FUEL THAT'S RESERVED TO BE ABLE TO, UH, BE ABLE TO RESPOND IN THE CASE WHERE WE SEE A NATURAL GAS DISRUPTION.
AND OF COURSE, THERE'S THE NEED FOR, IN THE CASE OF BEING CALLED UPON THAT THOSE RESOURCES ARE ABLE TO RUN.
AND SO REALLY, WHETHER THAT'S FUEL RELATED OR NOT, IF WE'RE SEEING MULTIPLE CASES IN WHICH RESOURCES ARE UNABLE TO RUN THAT WARRANT SOME CONCERN ON OUR PART, AND WE WOULD LIKE TO GO THROUGH THE PROCESS OF SEEING SOME MITIGATING ACTION TAKEN BY THE Q C REPRESENTING THAT RESOURCE TO ENSURE THAT THEY WARRANT CONTINUE TO BE ABLE TO PROVIDE THE SERVICE AND, AND RECEIVE THE STANDBY PAYMENTS.
SO WE HAD STRUCK THE LANGUAGE THAT REQUIRED THAT FOR DISQUALIFICATION, THE ISSUE HAD DUE TO A FUEL RELATED ISSUE, UM, THAT WAS ADDED BACK BY PRS AND WE'VE AGAIN STRUCK IT.
SO THAT IS REALLY THE, THE CHANGES OR THE, OUR, OUR CHANGES TO THE LANGUAGE ARE ISOLATED REALLY TO THAT PARTICULAR SENTENCES.
UH, THREE A AND B ARE TALKING ABOUT, UH, DISQUALIFICATION, UH, AND THERE'S SOME RELATED LANGUAGE IN 17 A AND B, BUT IT IS REALLY THE SAME LANGUAGE.
SO, UM, WE COULD PROBABLY JUST, UH, WE COULD PROBABLY PICK ONE OR THE OTHER TO SPECIFICALLY LOOK AT AS WE CONTINUE THE CONVERSATION.
[00:15:01]
UH, BUT UH, THAT'S ALL I HAVE.I I, I KNOW AGAIN, WE ALREADY HAVE SOME FOLKS IN THE QUEUE.
SO CLIFF, I'LL TURN IT BACK TO THE GROUP AND HAPPY TO TAKE QUESTIONS.
SO WE'LL START WITH, UH, BOB WHITMEYER FOLLOWED BY BILL BARNES ARREST ME AND THEN, UH, EMILY.
UM, BILL, BILL BARNES MADE THE MOTION AND I SECONDED IT.
SO, UM, LET ME, LET ME KIND OF EXPLAIN THE, THE SITUATION HERE.
AND ERCOT IS NOT BEING UNREASONABLE BY, BY ANY S STRETCH OF THE IMAGINATION.
THE PROBLEM WE HAVE IS THERE ARE VERY LIMITED SET OF UNITS THAT CAN PROVIDE FIRM FUEL.
IT'S NOT A CASE OF IF WE DISQUALIFY THIS ONE, WE CAN GO GET A DIFFERENT ONE SOMEPLACE ELSE.
IF WE DISQUALIFY ONE, WE ARE TAKING THAT FUEL OUT OF THE MARKET, WE WON'T KNOW THEY HAVE FAILED UNTIL WE ACTUALLY GO TO DEPLOY THEM.
UM, I UNDERSTAND ERCOT NOT WANTING TO PAY IF THEY FAIL FOR A BOILER TUBE BLEAK OR WHATEVER, BUT IF IT CAUSES THEM NOT TO BID, UM, AND JUST SIT OUT AND NOT STOCK THAT FUEL, I THINK WE HAVE A BIGGER RELIABILITY PROBLEM THAN WE DO IF WE TAKE THE RISK THAT THEY MIGHT BREAK.
SO, SO THERE ARE RISKS ON BOTH SIDES OF THIS.
THERE IS A REASONABLE ANSWER ON BOTH SIDES OF THIS.
I THINK THE BOARD WOULD BENEFIT FROM UNDERSTANDING BOTH SIDES OF THIS AND, AND MAKING THE CALL AS TO WHETHER IT'S, IT'S BETTER TO ONLY PAY THEM IF THEY DON'T FAIL OR IF WE WANT MORE FUEL AVAILABLE IN THE EVENT WE NEEDED.
SO THAT, THAT'S WHY I SECONDED BILL'S MOTION.
I WANTED TO, UH, SPEAK TO THAT AS WELL SINCE I DID MAKE THE MOTION.
UM, AND I DO BELIEVE THAT IT'S VALUABLE FOR STAKEHOLDERS PER TO PROVIDE THEIR VIEW ON THIS AS WELL, THAT, UM, WOULD BE DIFFERENT FROM T'S PERSPECTIVE.
AND SIMILAR TO BOB, I, I DO UNDERSTAND ERCOT INTENT, UH, WITH STRIKING THIS LANGUAGE.
WHAT, BUT WE BELIEVE PRETTY STRONGLY THAT THE, THE PENALTIES THAT REMOVE THE PAYMENTS, SO THERE'S TWO PARTS TO THIS, UH, TO THIS PART, UM, OR THE ACTUAL PERFORMANCE PENALTIES THEMSELVES IS ONE, IS THE WHAT HAPPENS TO YOUR PAYMENTS, AND THEN THERE'S THE, THE DE-CERTIFICATION, UM, AND FAILURE TO QUALIFY.
SO BASICALLY YOU, YOU GET THE MONEY TAKEN AWAY AND THEN YOU GET KICKED OUT OF THE CLUB.
AND WE THINK THAT IS JUST OVERLY PUNITIVE.
UM, WE BELIEVE THAT, UM, IT WOULD BE THE, THE EXAMPLE THAT WAS USED IN PRS, WHICH I THOUGHT WAS A GOOD ONE THAT BOB MENTIONED, WAS LET'S SAY YOU HAVE A TUBE LEAK, UH, THAT'S COMPLETELY UNRELATED TO YOUR FIRM FUEL PRODUCT.
AND SO WE WOULD HAVE SPENT REAL DOLLARS TO ACQUIRE FIRM FUEL, UM, CAPABILITIES, WHETHER THAT BE, UH, GETTING YOUR, YOUR BACKUP DUAL FUEL DIESEL SYSTEM RUNNING AND, AND FILLED THE TANKS FILLED, OR WHETHER IT BE, UH, NATURAL GAS OFFSITE, UH, STORAGE CONTRACTS WITH FIRM TRANSPORT, THOSE COST REAL DOLLARS.
AND SO TO HAVE NOT ONLY A FINANCIAL PENALTY RELATED TO, UH, A FAILURE UNRELATED TO THAT, BUT ALSO DECERTIFICATION AND FAILURE TO QUALIFY, THAT JUST ADDS A ANOTHER LAYER THAT WE THINK IS OVERLY PUNITIVE.
AND THE MAIN CONCERN WE HAVE IS IT IS NOT CLEAR HOW YOU WOULD PROVE UP THAT YOU HAVE REMEDIED, UH, A FAILURE UNRELATED TO FIRM FUEL TO GET RE-CERTIFIED.
AGAIN, THAT PROCESS THAT'S IN THIS NPR LOOKS EXTREMELY LENGTHY AND CUMBERSOME AND VERY DIFFICULT, WHICH TO BOB'S POINT COULD DELAY, UM, CAPABILITIES OF RESOURCES THAT CAN PROVIDE THIS SERVICE.
SO WE THINK IT'S FAIR TO REMOVE THE PAYMENT ITSELF AND, AND ASSESS THOSE FINANCIAL PENALTIES THAT IS MORE THAN ENOUGH INCENTIVE FOR US TO MAKE SURE THAT WE HAVE OUR UNITS, UH, IN THE BEST SHAPE THAT WE CAN KICKING THEM OUT OF THE CLUB AND THEN MAKING IT VERY DIFFICULT TO GET BACK IN, I THINK IS JUST, IT'S OVERLY BURDENSOME, UM, TO PROVIDE THIS PRODUCT.
SO WE SUPPORT THE, UH, THE VERSION OF THIS, UM, THAT WAS APPROVED BY PRS AND I'D BE HAPPY TO MAKE THAT MOTION WHEN IT'S TIME.
UH, I HAVE A QUESTION FOR AIRCO.
UM, AS, UH, BILL AND BOB HAD SAID, I CAN SEE BOTH SIDES AND, UM, I SEE AIRCO WANTING TO GET, UH, THE FORM FUEL FROM US, UH, FROM A RESOURCE THAT IS, THAT THEY CAN COUNT ON, BUT THE, TO ME, THE SERVICE IS FOR THE FUEL, SO IT MAKES SENSE TO PAY FOR THAT FUEL.
[00:20:01]
AIRCO IS, IF THE INTENT IS TO ENSURE THAT THE RESOURCE THAT YOU ARE GET BUYING THE FARM FUEL FOR A SERVICE FROM IS AVAILABLE, THEN CAN YOU GET THAT BY INCREASING THE AVAILABILITY FACTOR OR GENERAL AVAILABILITY TO SOMETHING LIKE THIS IS BODILY.SO THE, IN THE 17 C YOU COULD SAY THEY MAINTAIN, UM, THE GENERAL AVAILABILITY MORE THAN THE 50% SOMETHING WHICH IS, WHICH ENSURES THAT THE RESOURCES GENERALLY AVAILABLE.
AND THEN MAYBE, UM, FOR FAILURES, GIVE TIME FOR QC TO, UH, PROVIDE THAT MITIGATION PLAN OR, UH, REER, UH, OR RETEST BEFORE IT GETS DISQUALIFIED.
SO THAT WOULD ENSURE THAT THE RESOURCES REALLY AVAILABLE AND IF SOMETHING HAPPENS, IT WILL BE, UH, ADDRESSED SOON.
WOULD THAT WORK FOR DAVE? ANY RESPONSE? YEAH, I WAS ACTUALLY, I ALSO SEE KAAN, KAAN, WOULD YOU LIKE TO RESPOND OR YOU, WOULD YOU HAVE SOMETHING ELSE YOU WANNA RESPOND TO OR SPEAK TO? UH, I, I WON'T WANT TO MAKE A MORE GENERAL RESPONSE, SO I'LL LET YOU ANSWER THIS QUESTION AND SURE.
I, I, I GUESS, UH, RASHMI ON THE, ON THE PARTICULAR PART AROUND AVAILABILITY, I, I DON'T THINK THAT, I DON'T THINK THAT HELPS OUR CONCERN AND, AND I WILL SAY I, I DO UNDERSTAND SOME OF THE TENSION THAT, UH, THAT, THAT BILL AND, AND BOB, BOB HAVE BROUGHT UP OF, UH, WE, WE OBVIOUSLY, AS WE ARE TRYING TO CAPTURE IN OUR COMMENTS HERE, WE, WE REALLY NEED THIS SERVICE AND THESE RESOURCES TO BE AVAILABLE IN THESE CONDITIONS.
BUT OF COURSE, WE'RE, WE ARE NOT TRYING TO MAKE IT SO STRICT SUCH THAT NO ONE WANTS TO PARTICIPATE, AND, AND THERE IS A TENSION THERE.
THE, THE CONCERN OF, AND WHY I DON'T THINK THAT JUST CHANGING THE AVAILABILITY FACTOR REALLY HELPS US, A AND B ARE SPEAKING TO, WE HAD DEPLOYMENTS AND THE RESOURCE WASN'T ABLE TO EFFECTIVELY STAY ON DURING THAT DEPLOYMENT.
THAT'S SORT OF REALLY INDEPENDENT IN MY MIND FROM, YOU KNOW, THEY COULD HAVE BEEN AVAILABLE 90% OF THE TIME OR 99% OF THE TIME, BUT IF WE NOW SEE DEPLOYMENTS DURING THE MORE RARE CONDITIONS FOR A SERVICE THAT ISN'T DEPLOYED VERY OFTEN, IF THEY'RE NOT ABLE TO RESPOND AND EFFECTIVELY BE ONLINE IN THOSE CONDITIONS, IT, IT DOESN'T REALLY NECESSARILY MATTER THAT THEY OTHERWISE HAD A HIGH AVAILABILITY FACTOR.
SO I GUESS SPECIFIC TO THAT, THAT IS TESTING FOR IT, RIGHT? AND SO IT HAS TO TEST TO QUALIFY TO PROVIDE THE SERVICE.
SO IT SHOULD BE ABLE TO PROVIDE THAT SERVICE, RIGHT? NOT IF IT'S PROVEN THROUGH A AND B THAT IT, WE ACTUALLY DEPLOYED AND THEY WEREN'T ABLE TO STAY ON.
AND THIS IS THE A AND B IS REFERRING TO ACTUAL DEPLOYMENTS.
YEAH, AND AS BILL SAID, IT COULD BE BECAUSE OF SOME OTHER REASON, NOT JUST TESTING, WHICH COULD BE COINCIDENCE, BUT YEAH.
AND IF THAT KIND OF THING HAPPENS, WOULD, UM, LIKE, UH, PROVIDING A MITIGATION PLAN OR RETESTING WORK BEFORE THIS? WELL, THEY, AND I GUESS REAL QUICK, CHRISTIAN, THEY, THEY WOULD NOT BE TESTING FOR THE, THERE WOULD NOT BE AN ISSUE DUE TO TESTING.
SO I DON'T, I, SO I DON'T REALLY SEE THAT BEING RELATED TO A AND B, UH, IN FACT, I, AND DAVITA CAN CORRECT ME, I'M WRONG, BUT I THINK THERE'S ACTUALLY REQUIREMENTS AROUND NOT PERFORMING TESTING DURING, DURING THESE WINTER WATCHES AND THINGS LIKE THAT ALREADY.
SO THE, THE FAILURES IN A AND B WENT OUT BE ASSOCIATED BECAUSE THE RESOURCE WAS DOING SOME SORT OF TESTING.
NOW, UH, YOU KNOW, TO YOUR QUESTION AROUND, IS THERE A WAY TO TIME IT SUCH THAT YOU GIVE THEM A CHANCE TO SORT OF MITIGATE THE ISSUE BEFORE DECERTIFY, YOU KNOW, MAYBE THERE'S, MAYBE THERE'S SOMETHING THERE.
UH, I, I GUESS JUST, JUST TESTING, I DON'T KNOW NECESSARILY FEEL SUFFICIENT.
I MEAN, THE, THE WAY THE TEST PERFORMED UNDER THIS SECTION IS YOU WERE ABLE TO RES TO PROVIDE MEGAWATTS FOR, FOR AN HOUR, JUST, YOU KNOW, WHAT WAS YOUR AVERAGE MEGAWATTS FOR AN HOUR PERIOD.
THAT DOESN'T SEEM TO COUNTERACT THE FACT THAT YOU WEREN'T ABLE TO PERFORM DURING ACTUAL DEPLOYMENTS.
NOW, IS THERE A WAY YOU COULD TALK ABOUT, UM, SOME SORT OF, UM, GO AND PROCESS TO GO THROUGH MITIGATION AND, AND SOME DOCUMENTATION THAT THE ISSUES HAVE BEEN RESOLVED PRIOR TO DE CERTIFICATION? MAYBE THERE'S SOME TIMING THERE,
[00:25:01]
BUT, UM, BUT I, I, I DON'T NECESSARILY KNOW THAT, UH, IF THAT TIMING WORK OUT VERY WELL.GOING BACK TO, FOR EXAMPLE, WHAT BILL SHARED.
IF, IF THAT DOES TAKE SOME TIME TO GET THE DOCUMENTATION TOGETHER, UM, I, I, I DON'T KNOW THAT THAT COULD BE EFFECTIVELY DONE PRIOR TO, WHILE WE WAIT FOR, UH, GOING THROUGH THAT DE-CERTIFICATION PROCESS PROCESS.
HE SAID HE WANTED TO RESPOND MORE GENERALLY.
I'M HAPPY TO GO AFTER HIM IF HE WANTS TO JUMP AHEAD.
KAAN, WOULD YOU LIKE TO JUMP AHEAD THEN? NO, I, I'LL WAIT.
UM, SIMILAR TO WHAT WE'VE HEARD BEFORE, I THINK, YOU KNOW, WE, WE ALL UNDERSTAND THIS IS ON A PRETTY FAST TRACK AND APPRECIATE THE DISCUSSIONS THAT WE'VE HAD AT P R S, UM, UNDERSTANDING THE NEED TO MOVE THIS FORWARD.
I THINK SOME OF THIS DIDN'T GET FULLY VETTED JUST DUE TO THE TIMING OF SOME OF THESE COMMENTS COMING IN.
UM, IF WE ARE GONNA, YOU KNOW, LOOK CLOSELY AT THE ERCOT COMMENTS THAT CAME OUT AFTER P R S APPROVAL, I, I WOULD WANNA BETTER UNDERSTAND SOME OF THE ISSUES WITH THE LANGUAGE.
UM, WE'VE TALKED ABOUT, YOU KNOW, THE, THE DIFFERENCE AND THE CONSEQUENCE BETWEEN CLAWBACK, WHICH I THINK EVERYONE WOULD SUPPORT FOR A RESOURCE THAT DOESN'T PERFORM AS OPPOSED TO DE-CERTIFICATION, WHICH IS A PRETTY SIGNIFICANT OUTCOME.
UM, AND, AND SOME OF THE LANGUAGE HERE, I THINK IS, UM, I, I HAVE SOME QUESTIONS ABOUT HOW IT WOULD BE INTERPRETED IN TERMS OF WHETHER A FAILED START FOR A UNIT THAT ACTUALLY DOES IN FACT, UM, COME ONLINE ON A SECOND TRY, IF THAT TRIGGERS THAT SECTION.
AND A, UM, AND, AND REALLY WHAT WE WERE KIND OF TALKING ABOUT WITH, UM, BOB AND BILL'S COMMENTS EARLIER AROUND, UM, YOU KNOW, THE CAUSES CERTAINLY UNDERSTAND ERCOT CONCERN AND WANNA MAKE SURE THAT WE HAVE PRUDENT OPERATORS PROVIDING THIS SERVICE.
IT'S A HIGH VALUE SERVICE, IT'S IMPORTANT, UM, TO THE RELIABILITY OF THE GRID.
UM, SO SOMETHING PERHAPS, UM, IF IT'S THE SAME ISSUE, RIGHT, BECAUSE WE'RE LOOKING AT TWO OR MORE FAILED DEPLOYMENTS DUE TO THE SAME ISSUE SHOWING THAT THEY'RE NOT RECONCILING THAT ISSUE, UM, THESE ARE SOME ISSUES THAT WE MIGHT HAVE BENEFITED FROM SOME FURTHER DISCUSSION ABOUT.
BUT AGAIN, UNDERSTAND THE TIMING HAS BEEN CHALLENGING TO GET EVERYONE, UM, UP TO SPEED, UH, GIVEN WHEN THESE COMMENTS CAME OUT.
BUT THOSE ARE JUST SOME OF THE CONCERNS I WOULD HAVE WITH THE ERCOT COMMENTS THAT I THINK, UM, IF WE APPROVE THE VERSION ON THE SCREEN TODAY, WE DON'T HAVE TO, UM, BELABOR THOSE POINTS.
BUT IT WOULD BE INTERESTING TO HEAR KIND OF WHAT ERCOT IS THINKING IN TERMS OF SOME OF THE SPECIFICS AROUND THOSE ISSUES, IF THEY WOULD BE OPEN TO ANY OF THAT, UM, REFINEMENT.
DAVE, DID YOU WANNA REPLY? YEAH, I, I, I, AGAIN, I'M CERTAINLY, I, I THINK, YOU KNOW, I THINK EMILY HIT ON SOME OF THE, THE POINTS THAT HAVE BEEN ON OUR MIND AND, AND, YOU KNOW, DO WE SEE, AGAIN, SOME OF THESE REPEAT ISSUES THAT ARE RESULTING IN THE RESOURCE NOT BEING AVAILABLE AND, AND IT'S, IT IS REALLY HARD TO DEFINE SOME OF THE NUANCE AS YOU KIND OF TALK ABOUT THIS DISQUALIFICATION AND THIS VERIFICATION PROCESSES.
SO, UM, YOU KNOW, THAT THAT'S ALWAYS THE TROUBLE WITH A LOT OF THESE METRICS IS, IS CAPTURING ALL THAT, THAT SPECIFIC TYPE OF NUANCE.
SO, UM, YOU KNOW, REGARDLESS OF OF WHICH DIRECTION THE, THE GROUP GOES TODAY, WE'LL, WE'LL OBVIOUSLY BE LOOKING TO CONTINUE TALKING ABOUT THIS, THIS SUBJECT AND, AND WE WILL KEEP LOOKING AT THIS, THIS PRODUCT MORE BROADLY, I THINK.
EMILY, ANYTHING ELSE? UH, YES, BUT WE, WE CAN GET PRETTY BOGGED DOWN IN THIS DISCUSSION, I'M AFRAID, SO I DON'T WANNA BELABOR THE POINT.
I UNDERSTAND THERE'S SOME WORK TO BE DONE IF WE GO THIS DIRECTION, I THINK.
CLIFF, CAN YOU CONFIRM? YOU CAN HEAR ME? YES, SIR.
UM, IN THINKING THROUGH THIS AND THINKING THROUGH THE DISCUSSION WE HAD AT P R S, I THINK BILL AND BOB DID AN EXCELLENT JOB, UM, JUST A MINUTE AGO DESCRIBING, UM, THE TWO SIDES OF THAT.
UM, AS I THINK ABOUT, UH, LUMINANCE'S FLEET THAT PROVIDES A SERVICE, UM, I DO HAVE CONCERNS WITH MOVING FORWARD WITH THE ERCOT LANGUAGE.
I DO THINK THE PRS LANGUAGE IS BETTER FOR MOVING FORWARD RIGHT NOW, AND MAYBE A, UM, UH, ADDITIONAL TIME, UH, THROUGH A NEW MPR R COULD BE USED, UM, FOR THE FOLLOWING, UM, ROUND OF FF SS TO COME UP WITH SOMETHING CLOSER TO THE ERCOT, UM, SOLUTION THAT WOULD ANSWER SOME OF THE QUESTIONS.
I THINK ALSO THE EMILY BROUGHT UP.
UM, SO IT JUST, I WOULD SUPPORT,
[00:30:01]
EXCUSE ME, I WOULD SUPPORT, UH, BILL'S WHEN BILL SAID HE WOULD MAKE THAT MOTION.I WOULD SUPPORT THAT FOR, UH, MOVING FORWARD TODAY.
UM, I APPRECIATE THE COMMENTS, UH, ESPECIALLY THOSE THAT HAVE BEEN, UH, EXPRESSED WITH REGARDS TO THE, UH, IN SUPPORT OF THE PR S UH, COMMENTS.
UM, BUT WE FEEL VERY STRONGLY THAT, UM, UH, RESOURCES, UH, NEED TO BE ABLE TO PER PERFORM WHEN NEEDED.
UH, AND, UH, WHILE WE ARE SYMPATHETIC, UH, TO, UH, UM, THE OTHER SIDE, I THINK WE WOULD, UH, SUPPORT, UH, MOVING FORWARD WITH THE ERCOT COMMENTS, I THINK BILL BARNES, UH, JUMPED IN FRONT OF ME, UH, IN TERMS OF MAKING A MOTION.
UH, BUT, UH, IF THAT ONE FAILS, I WOULD LIKE TO MAKE A MOTION TO SUPPORT ERCOT COMMENTS.
ERIC GOFF, UM, IT, I, I GUESS THE, THE QUESTION IS, UM, WHAT IS THE PURPOSE OF THE, THE SERVICE HERE? UM, IS IT TO BUY FUEL OR IS IT TO MAKE SURE THAT THE FUEL CAN BE BURNED WHEN OUR CAT NEEDS IT TO BE? AND I THINK THAT THE INTENTION, UM, WAS TO MAKE SURE THAT ERCOT HAS ADDITIONAL OPERATIONAL FLEXIBILITY, FLEXIBILITY AND NOT JUST TO BUY THE FUEL.
THAT SAID, YOU KNOW, LIKE BILL JUST SAID, YOU KNOW, WE UNDERSTAND THE COMPLEXITIES OF PROVIDING THE SERVICE AND THE DIFFICULTIES OF, YOU KNOW, MAKING SURE EVERYTHING WORKS.
BUT I THINK ER'S SUGGESTIONS HERE LINE UP WITH THE INTENTION OF THE PROGRAM.
AND, UM, YOU KNOW, MAYBE THE PROGRAM SHOULD INCLUDE SOME OF THE SUGGESTIONS THAT EMILY JUST MADE IN TERMS OF THE, UM, OUTCOME IF YOU FAILED TO PROVIDE THE SERVICE.
OR, YOU KNOW, PERHAPS IT SHOULD BE EXPLICIT THAT THE SERVICE FUNDS, YOU KNOW, THE FULL COST OF MAKING SURE THAT THE, UH, FUEL IS AVAILABLE TO BE BURNED.
UM, BUT I I, I DO THINK'S ON THE RIGHT TRACK HERE WITH THE ATTENTION AND, AND I SUPPORT THE COMMENTS.
UM, SO I, I DO UNDERSTAND, UH, THE POINTS THAT HAVE MA BEEN MADE BY THE PREVIOUS SPEAKERS, BUT I, I DO FUNDAMENTALLY DISAGREE WITH, UM, UH, I BELIEVE REMI SAID, UH, OR ASK THE QUESTION, IS THIS, UM, YOU KNOW, ABOUT THE FUTURE OR IS IT ABOUT, UH, YOU KNOW, PERFORMANCE? AND I MEAN, I WAS, I JUST WENT BACK AND REREAD SB THREE, AND IT'S ABOUT RELIABILITY AND PERFORMANCE.
SO TO ME, UM, EITHER FOR THE MARKET PRICING REASONS TO QUALIFY, SOMEBODY THAT HAS NOT PERFORMED, UM, LET'S SAY THEY HAVE NEVER, UH, THEY'VE BEEN DEPLOYED MULTIPLE TIMES PREVIOUSLY AND HAVE NEVER BEEN ABLE TO COME ONLINE, THERE, THERE HAS TO BE SOME WAY TO SAY, OKAY, THIS, YOU KNOW, MAYBE I'M ADDING MORE LIQUIDITY TO THE MARKET, BUT IT'S FALSE LIQUIDITY.
AND, UM, THERE, THERE HAS TO BE A WAY TO MEET THE REQUIREMENTS OF THE, THE LAW.
UM, AND IT CANNOT BE SIMPLY THAT THERE IS FUEL THERE, THERE HAS TO BE SOME KIND OF PERFORMANCE REQUIREMENT.
NOW, YOU KNOW, I I, WHEN WE WERE THINKING THROUGH THIS, UM, TWO DEPLOYMENTS AND FAILING TO DEPLOY TWICE SEEMS, UH, THAT THAT COULD COVER MULTIPLE YEARS.
SO TO ME, TO MOVE, UH, FORWARD AND KEEP QUALIFYING SOMEBODY THAT HAS NEVER BEEN ABLE TO PERFORM IS PROBLEMATIC, UM, AND IS NOT IN LINE WITH THE INTENTIONS OF THE PROGRAM AND IS, UH, NOT HELPFUL FOR RELIABILITY OF THE SYSTEM, WHICH IS THE END, END GOAL HERE.
SO, I, I, I FUNDAMENTALLY, UH, DISAGREE WITH, UH, A PERSPECTIVE.
AND I'M NOT SAYING THAT ANYBODY HAS THIS, THAT SIMPLY HAVING FUEL, UH, ON SITE IS SUFFICIENT
[00:35:01]
TO MEET THE LONG-TERM REQUIREMENTS OF THE GOAL.IT, THERE HAS TO BE A PERFORMANCE, UM, UH, REQUIREMENT BEYOND, UH, BEYOND JUST THE PAYMENT PART THERE.
WE CANNOT BE COUNTING RESOURCES THAT HAVE POTENTIALLY NEVER PERFORMED WHEN WE CALLED ON THEM.
HAPPY TO LISTEN TO EVERYBODY ELSE'S REPLY.
SO REST ME FIRST AND THEN FOLLOWED BY BILL.
UH, I JUST HAD A FOLLOW UP QUESTION ON HOW DO WE, UM, DO THE TESTING? WHY WOULD IT BE DIFFERENT FROM, UH, DEPLOYMENT? SHOULDN'T THE TESTING BE SIMILAR TO THE DEPLOYMENT? GO AHEAD, JOHN.
I, I CAN TRY AND REPLY ON ONE END, BUT I THINK PROBABLY, I, I PROBABLY NEED SOME HELP FROM OTHERS FROM ERCOT, BUT I MEAN, WE CAN NEVER IMITATE, UH, THE WEATHER CONDITIONS UNDER WHICH THE ACTUAL DEPLOYMENT IS GONNA HAPPEN FOR A TEST.
SO I THINK THAT'S ONE, ONE, UH, WAY THAT THE TEST DOESN'T COVER THE ACTUAL CONDITIONS OF THE DEPLOYMENT.
BUT IF, UH, ANYBODY ELSE FROM
I, I GUESS JUST TO PROVIDE A LITTLE BIT OF CLARITY, I, I THINK YOU'RE EXACTLY RIGHT.
THE TEST IS REALLY ABOUT CAN THE GENERATOR SHOW THAT THEY CAN OPERATE ON THE STORED FUEL AND, AND REALLY IT'S FOCUSED ON WHAT THEY'RE ABLE TO DO FOR, ON AVERAGE FOR AN HOUR.
SO, SO THAT'S THE, THAT'S THE TOTALITY OF THE TEST.
THERE'S, WHEN WE ACTUALLY, YOU KNOW, GET INTO THESE TYPES OF EVENTS, THERE OBVIOUSLY COULD BE A NUMBER OF OTHER CIRCUMSTANCES GOING ON, UH, THAT, THAT ARE, ARE MORE EXTREME OR SEVERE AS, AS KAAN WAS TALKING ABOUT.
SO THE, THE TEST IS UNFORTUNATELY, TO SOME DEGREE, VERY LIMITED RELATIVE TO, TO WHAT MAY ACTUALLY BE EXPERIENCED DURING ACTUAL DEPLOYMENT.
YEAH, I JUST WANNA MAKE SURE IT'S CLEAR.
SOME OF THIS DISCUSSIONS KIND OF CHARACTERIZING THIS IS, IF THIS IS REMOVED, UM, THERE ISN'T PERFORMANCE PENALTIES AND THERE ARE ALREADY SIGNIFICANT PERFORMANCE PENALTIES, UM, THAT ARE IN THE PROGRAM, DESPITE THE DECERTIFICATION AND QUALIFICATION CRITERIA.
THAT'S THE, FOR THE FINANCIAL PENALTIES TO ME, ARE THE ONES THAT ARE THE MOST, UM, ARE THE STRONGEST.
BECAUSE IF THERE IS A RESOURCE THAT HAS AN AN ISSUE UNRELATED TO FUEL, THEY WILL LOSE MONEY.
WE WILL HAVE SPENT MONEY ON SOME TYPE OF FIRM FUEL, SOME TYPE OF FIRM FUEL PRODUCT, EITHER, EITHER BACKUP DIESEL OR, UH, NATURAL GAS OFFSITE CONTRACTS.
THAT IS A VERY STRONG FINANCIAL INCENTIVE TO MAKE SURE THAT YOU ARE PERFORMING JUST LIKE IN THE CURRENT MARKET.
AND NOT ONLY THAT, AND, YOU KNOW, JUST LIKE WITH ANY OUTAGE, UM, THE GENERATOR IS NOT ABLE TO, UM, EARN ANY REVENUES.
SO THE ULTIMATE, THE ULTIMATE PERFORMANCE IS FAILURE TO BE ABLE TO PROVIDE ELECTRICITY DURING SCARCITY EVENTS.
SO YOU HAVE THAT ON TOP OF THIS, UM, GETTING THE COMPENSATION REMOVED.
THE ISSUES WITH THE DECERTIFICATION, THE QUALIFICA QUALIFICATION IS THE TIMING TO DEMONSTRATE TO ERCOT THAT THE NON-FUEL RELATED ISSUE WAS REMEDIED, WHICH COULD TAKE AN, SOME OF THE, SOME OF THE ISSUES THAT WE ARE THINKING THROUGH.
I DON'T KNOW HOW WE WOULD DEMONSTRATE IT TO, TO ERCOT.
SO AGAIN, IT'S, THE PROBLEM IS HOW DO YOU GET BACK IN THE PROGRAM? LIKE, LET'S JUST, LET'S CONTINUE TO TALK ABOUT THIS TUBIC EXAMPLE, WHICH, YOU KNOW, AT A GIVEN THERMAL PLANT PROBABLY HAS ABOUT 15 TO 20 MILES WORTH OF BOILER TUBES, AND THAT THAT METAL GETS HOT AND COLD OVER YEARS AND WILL WILL FRACTURE.
AND SO YOU SEND IN A WELDING CREW, YOU, YOU PUT IN A WORK ORDER THAT THAT CAN BE REPAIRED VERY QUICKLY, AND THEN YOU COULD BE BACK ONLINE AND RUNNING.
WELL, IF YOU GET DE-CERTIFIED, THEN I, I MEAN, ERCOT, YOU HAVE TO TELL ME, YOU'RE GONNA HAVE TO SEND OUT AN INSPECTOR, TAKE A LOOK.
YOU'RE PROBABLY OUT OF THE PROGRAM FOR THE REMAINDER OF THAT CONTRACT TERM.
AND THAT'S BACK TO BOB'S POINT.
WE HAVE JUST DEGRADED RELIABILITY IN THIS CASE.
SO, AND AGAIN, IT'S THE, THE CONCERN AS IS ACTUALLY GETTING DECERTIFIED OR REMOVED FROM THE PROGRAM AND THE TIMING TO, TO DEMONSTRATE AND GET BACK IN THE FINANCIAL PENALTIES THAT ARE ALREADY PART OF THIS PROGRAM
[00:40:01]
ARE MORE THAN ENOUGH TO MAKE SURE THAT WE ARE HAVING THESE RESOURCES, UH, PERFORMED.CUZ YOU'RE GONNA LOSE MARKET REVENUES, ENERGY REVENUES, AND THEN YOU'RE GONNA LOSE MONEY ON THE FIRM FUEL, UH, CAPABILITIES THAT YOU'VE ALREADY SPENT MONEY ON.
SO TO ME, THIS IS JUST HAMMER ON TOP OF HAMMER ON TOP OF HAMMER THAT THAT REALLY STARTS TO MAKE THIS PRODUCT LESS ATTRACTIVE, UM, AND COULD ENCOURAGE FOLKS TO NOT PARTICIPATE ANYMORE.
AND THAT'S WHAT WE DON'T WANT.
WE'LL GO TO DAVITA AND THEN WE'VE GOT CANAN, AND THEN I'D LIKE TO START WRAPPING UP THE CONVERSATION ON THIS ONE.
UM, POTENTIALLY MOVE TO A MOTION AT THAT POINT.
CAN Y'ALL CONFIRM THAT YOU CAN HEAR ME? SURE CAN.
I WANTED TO ADDRESS TWO POINTS THAT CAME UP IN THE CONVERSATION FIRST REGARDING THE TESTING.
UM, AS, AS POINTED OUT PREVIOUSLY, THE TESTING, IT'S FIRST 60 MINUTES AT THE MAXIMUM, UM, AWARDED LEVEL.
AND PART OF WHY THE, THE TESTING WAS DESIGNED IN THAT WAY IS BECAUSE WE RECOGNIZE THAT THERE IS A COST ASSOCIATED WITH, WITH CONDUCTING THAT TEST.
YOU'RE, YOU'RE BURNING YOUR RESERVE FUEL.
UM, AND SO WE WANTED TO MAKE IT A, A MEANINGFUL TEST TO SHOW THAT THE RESOURCE CAN RUN ON ITS RESERVE FUEL WITHOUT IT BEING ONEROUS.
AND THIS, THIS TEST APPLIES TO EVERYBODY WHO'S SEEKING TO QUALIFY FOR THE PROGRAM.
SO WE WANTED TO MAKE SURE THAT IT WAS A, A REASONABLE TEST.
UM, IN CONTRAST HERE, WHEN WE'RE TALKING ABOUT DE-CERTIFICATION, WE'RE TALKING ABOUT A PARTICULAR UNIT THAT HAS BEEN PAID TO PROVIDE THE SERVICE AND MORE THAN ONCE IT HAS BEEN DEPLOYED AND HAS FAILED TO COME ONLINE AND STAY ONLINE AND PROVIDE THE NEEDED GENERATION.
SO WE THOUGHT THAT A MORE MEANINGFUL REVIEW OF THAT RESOURCE AFTER IT'S FAILED MULTIPLE TIMES IS APPROPRIATE.
UM, ON THE, THE, THE POINT THAT'S BEEN MADE A FEW TIMES ABOUT THE, THE CLAWBACK OR WITHHOLDING OF THE HOURLY STANDBY FEES BEING, YOU KNOW, AN ADEQUATE INCENTIVE TO PERFORM.
I'M GLAD TO HEAR THAT
BUT I'LL ALSO NOTE THAT THE DIFFERENT TYPES OF, FOR SHORTHAND, I'M GONNA TALK ABOUT CLAWBACKS.
UM, THE DIFFERENT TYPES OF CLAWBACKS ARE DIFFERENT UNDER DIFFERENT SCENARIOS.
UM, FOR EXAMPLE, SOME OF THE NON-FUEL RELATED CLAWBACKS HAVE A CLAWBACK OF UP TO 15 DAYS.
SOME OF THE FUEL RELATED HAVE A CLAWBACK OF UP TO 90 DAYS.
IN ORDER TO HAVE EV UM, A RESOURCES, ALL OF THEIR HOURLY STANDBY FEES CLAWED BACK IN AN OBLIGATION PERIOD, THEY WOULD'VE HAD TO HAVE HAD MULTIPLE ISSUES ALREADY IN ORDER TO HAVE EVERYTHING CLAWED BACK.
AND SO YOU COULD HAVE A RESOURCE THAT IS DEPLOYED FOUR TIMES IN AN OBLIGATION PERIOD EVERY TIME THEY'RE, THEY'RE FAILING TO COME ONLINE FOR A NON-FIELD RELATED ISSUE.
IN THAT CASE, THEY'D, UM, HAVE 60 DAYS WORTH OF PAYMENTS CLAWED BACK.
BUT BECAUSE IT'S 120 WEEK ONE DAYS OF PAYMENTS IN TOTAL, LESS THAN HALF OF THEIR PAYMENTS WOULD BE CLAWED BACK.
SO WE'RE TRYING TO HAVE CLAWBACKS THAT ARE TAILORED TO THE SPECIFIC CIRCUMSTANCES, BUT ONCE A RESOURCE HAS MULTIPLE ISSUES PERFORMING, WE'D LIKE TO PRESS PAUSE, LET THEM REMEDIATE AND EXPLAIN WHAT THEY'VE DONE BEFORE THEY'RE ABLE TO CONTINUE PARTICIPATING IN THE PROGRAM AND CONTINUING TO GET PAID FOR A SERVICE THAT THEY AREN'T FULLY PROVIDING.
UM, THERE IS SO MUCH, UH, IN WHAT BILL SAID THAT I AGREE WITH.
THE ONE THING I, THAT, THAT IS, UH, I THINK PAINFULLY LACKING, UH, IN THERE IS THIS KIND OF ACCOUNTING AND SAYING, I HAVE THIS MUCH OF THIS, UH, SERVICE WHEN I KNOW THERE IS, UH, A PARTICULAR UNIT THAT MAYBE HAS NEVER BEEN ABLE TO COME ONLINE, UH, AND, AND PERFORM WHEN WE CALLED ON IT, LET'S TAKE, LET'S TAKE IT TO EXTREME.
AND IF I HAD 10 DEPLOYMENTS AND THE RESOURCE HAD NOT BEEN ABLE TO PERFORM 10 TIMES, I DON'T THINK WE SHOULD, UH, ALLOW THAT RESOURCE INTO THE PROGRAM.
SO THERE IS SOME PLACE THAT I BELIEVE AS STAKEHOLDERS WE, WE WOULD CONVERGE AND, AND SAY, THIS IS, THIS IS NOT SOMETHING I SHOULD BE COUNTING ON WHEN I CALL ON IT.
UM, SO I, I REALLY DO THINK THAT THERE HAS TO BE SOMETHING LIKE THIS OR, UM, TO, TO DAVITA'S POINT, WE HAVE TO GO BACK IN AND MAKE THE PENALTY, THE FINANCIAL PENALTIES ACTUALLY PUNITIVE.
UM, AND THAT WAS NOT A VERY COMFORTABLE,
[00:45:01]
UH, PLACE FOR US.SO, UM, I MEAN THAT I, I REALLY AM STRUGGLING WITH AN ABSOLUTE NO THAT I'M HEARING FROM SOME OF THE GENERATORS HERE.
THANKS KAAN, ERIC, AND THEN, UH, LIKE TO SEE IF WE CAN DRIVE TOWARDS A, TOWARDS A MOTION AT THAT POINT.
YEAH, I APPRECIATE THAT CLIFF.
AND, AND THAT'S WHAT I'M HOPING TO DO WITH THIS QUESTION, BUT IS A MIDDLE GROUND COMMAND TO SAY THAT YOU SHALL DECERTIFY FOR THE TRS REASONS AND MAY DECERTIFY FOR A NON-FUEL RELATED ISSUE? I, I'M, I'M NOT ABSOLUTELY SURE, UH, ABOUT THAT MODIFICATION.
UM, I, I TO PROBABLY THINK THROUGH THAT.
I, IT JUST SEEMS LIKE THE, WHAT I WOULD LIKE TO TRY TO ADDRESS TODAY, EVEN THOUGH I KNOW THAT WE WANT TO KEEP MOVING, UH, AND I APPRECIATE THIS IS MAYBE NOT POSSIBLE, IS GIVEN THAT, UM, THE ER BOARD HAS A TENDENCY TO SUPPORT THE
PO POINT TAKEN, ERIC, UH, I THINK THAT'S A, THAT'S A GOOD POINT.
SO I GUESS THE QUESTION IS, YOU KNOW, TO ERIC'S POINT RIGHT THERE IS IF THERE'S, IF WE THINK THAT THERE MAY BE A MIDDLE GROUND IN THAT PARTICULAR ARENA AND THAT WE WANNA DISCUSS AND MAYBE, UM, LOOK AT, I, I KNOW ERCOT WOULD NEED SOME TIME TO TAKE A LOOK AT THAT.
WE CAN CIRCLE BACK TO THIS SPECIFIC REVISION REQUEST, OR WE CAN GO AHEAD AND LOOK TO MOVE THIS ALONG AT THIS POINT IN TIME.
BUT IF, IF IT DOESN'T LOOK LIKE ERCOT IS WILLING TO SEED ON THAT PARTICULAR ISSUE, THEN YOU KNOW, WE PROBABLY JUST WANT TO GO AHEAD AND GET AN UP OR DOWN VOTE AT THIS POINT.
SO, UM, KENAN, DAVE, I KINDA LEAVE IT TO YOU IN THAT REGARD AS TO KIND OF THE DIRECTION WE MOVE AT THIS POINT.
YEAH, COULD, COULD WE HAVE, UM, MAYBE THREE TO FIVE MINUTES TO, TO JUST KIND OF TALK, TALK ABOUT THIS, UM, AND OKAY.
AND, UH, I THINK THAT WOULD HELP.
I'M JUST GONNA TRY AND SEE, CHECK WITH THE TEAM TO SEE IF WE CAN, UH, COME UP WITH SOMETHING THAT, THAT KIND OF WORKS, UH, AND ADDRESSES BOTH THE CONCERNS RAISED AND OUR CONCERNS.
UM, DO YOU HAVE ANY OBJECTION IF WE MOVE ON TO ANOTHER REVISION REQUEST? N NONE AT ALL.
SO WE'LL GO AHEAD AND PUT THIS ONE TO THE SIDE FOR RIGHT NOW.
UM, LET'S SEE IF WE CAN GO AHEAD AND PICK UP, HOLD ON JUST A SECOND HERE.
LET'S GO AHEAD AND PICK UP 1143 IF WE COULD RIGHT NOW, CUZ IT LOOKS LIKE A DIFFERENT SET OF ERCOT FOLKS INVOLVED WITH THIS PARTICULAR ONE.
SO ANYHOW, UM, I'M ACTUALLY GONNA PASS THE BATON OVER TO CAITLIN FOR THIS PARTICULAR ISSUE BECAUSE WE'VE GOT A POSITION THAT WE WOULD LIKE TO STATE FOR THAT.
SO, CAITLIN, ARE YOU ABLE TO PICK THIS UP? YEP.
CAN YOU CONFIRM YOU CAN HEAR ME? I SURE CAN.
SO I'M GONNA TAKE OVER SO THAT CLIFF CAN SPEAK ON THE NPR ABOUT BATTERIES.
UM, NIKA ARE, ARE WE GOING TO YOU ON THIS? I CAN CERTAINLY, UH, UH, EXPLAIN THE COMMENTS AS WE WERE WORKING THROUGH, UH, UH, THE, UH, LOOKING AT THE IA AND THE, UH, UH, BUSINESS CASE FOR 1143 THAT WAS APPROVED BY P R S, WE RECOGNIZED THAT IT REFERENCED N P R R THOUSAND AND TWO, AND LAST YEAR IN DECEMBER, UH, UH, WE HAD, UH, MADE, UH, WE HAD IMPLEMENTED THOSE SECTIONS OF NPR 1,002 THAT WERE RELATED TO, UH, BEHAVIOR THAT WE EXPECTED FROM ENERGY STORAGE RESOURCES DURING AN EMERGENCY CONDITIONS.
SO RECOGNIZING THAT WE, UH, IT, WAIT, IT, IT WAS THAT WE SAW THAT THERE WAS A NEED TO UPDATE BOTH THE IA AND THE BUSINESS CASE TO REMOVE REFERENCES FROM THOUSAND AND TWO.
SO THAT'S THE, UH, THAT'S, UH, THE, THE PRIMARY EDIT IN FRONT OF YOUR SCREENS, UH, IN, IN THE, UH, IN THE N
[00:50:01]
P R IS IN THE SECTION, UH, ITSELF.UH, SECTION SIX, WHERE WE GOT GET INTO EEA A LEVEL THREE DISCUSSION THERE AS WELL.
WE HAVE MADE RED LINE EDITS TO CATCH UP THE, UH, WE, WE MADE EDITS TO CATCH UP THE PROTOCOLS, UH, TO THE APPROVED LANGUAGE FROM P R S.
SO IF YOU SCROLL DOWN, UH, COREY, I THINK YOU CAN PROBABLY JUST GO EXACTLY HERE.
SO THIS, UH, PARAGRAPH THREE A NOW REFLECTS HOW NPR 1143 WOULD APPLY, UH, A POST APPROVAL.
AND THEN THE GRAY BOX, UH, COVERS ALL OF THE, UH, UH, BRINGS FORTH THE SAME EDITS, UH, THAT 1143 BROUGHT IN INTO THE POST 9 95 GRAY BOX LANGUAGE HERE.
IT ALSO TOUCHES UPON S O E SSS.
SO THAT'S, THAT'S GENERALLY IT.
WE'VE JUST MADE SURE THAT THE, THE APPROVED LANGUAGE IS CAUGHT UP ON THE, UH, WITH THE BASELINE, UH, CHANGES THAT HAVE HAPPENED SINCE THIS N P R R WAS FILED IN THE IA AS WELL.
UH, UH, UM, MARTHA MENTIONED IT A MINUTE AGO.
UH, NOW THAT 1,002 HAS BEEN IMPLEMENTED, UH, UH, THIS PARTICULAR N P R R CAN TAKE EFFECT UPON P U C T APPROVAL.
SO THAT'S THE CHANGE WE MADE, UH, UH, AS A PACKAGE TO THE SET OF COMMENTS, YOU SEE, UH, THAT CAME OUT, UH, EARLIER THIS WEEK OR, AND OR LATE, UH, LAST FRIDAY.
SO THIS WAS, UH, PASSED BY P RS THERE, THERE'S AN OPPOSING VOTE AND SOME ABSTENTIONS.
UM, AND THEN THANK YOU FOR WALKING THROUGH THESE COMMENTS THAT ERCOT FILED SINCE THEN WITH THE REVISED IA AS WELL.
SO I, I SEE WE HAVE A COUPLE OF THE QUEUE.
EARLY ON WHEN THIS NPR R R WAS FILED, UH, FLOYD TRE FILED COMMENTS ON BEHALF OF THE ERCOT STEEL MILLS.
THIS NPR R IS NOT, YOU KNOW, A FALL ON THE SWORD ISSUE FOR US, BUT WE FEEL STRONGLY THAT THE OPTICS OF CHARGING, ALLOWING CHARGING OF BATTERIES AND E E A LEVEL THREE WHEN YOU HAVE INVOLUNTARY LO SHED IS HORRENDOUS.
IF WE HAD LIKE ANOTHER WINTER STORM URI IN, IN, YOU KNOW, IT GOT OUT THAT WE WERE CHARGING BATTERIES IN OUR ARTICLES AND DALLAS MORNING NEWS AND HOUSTON CHRONICLE, I THINK THE, THE VERY, VERY NARROW CIRCUMSTANCES UNDER WHICH IT MIGHT BE BENEFICIAL TO DO THIS, I THINK ARE OUTWEIGHED BY THE, BY THE, UH, DETRIMENT FROM A PUBLIC, UH, UH, UH, PERSPECTIVE IN TERMS AND, UH, YOU KNOW, I'D HATE TO HAVE AN EVENT LIKE THIS, SO, YOU KNOW, THIS BECOME AN ISSUE.
AND THEN WE HAVE ANOTHER LEGISLATIVE SESSION FOCUSED ON ENERGY.
BUT, UH, IN ANY EVENT, UH, IF YOU ARE GONNA GO FORWARD WITH THIS, WE WOULD AT LEAST LIKE TO HAVE A COMMITMENT FROM ERCOT TO DEVELOP OPERATING ROOM PROCEDURES THAT ABSOLUTELY MINIMIZE THE CIRCUMSTANCES WHERE THIS WOULD BE USED.
WOULD YOU LIKE TO RESPOND TO THAT? YES, CERTAINLY.
UH, TO APPRECIATE THE FEEDBACK.
UH, I, I, I THINK IT IS OUR PERSPECTIVE, AS WE'VE MENTIONED IN THE PAST AS WELL, THAT HAVING CAPABILITY LIKE THIS, UH, DURING AN SCARCITY EVENT, UH, SHOULD HELP US, UH, SHOULD HELP US, UH, BUILD BACK RESERVES AND, UH, WE EVENTUALLY RECOVER FIRM LOAD SHED FASTER.
AND THAT'S REALLY HOW WE SEE THIS TOOL WORKING.
WE DID HAVE ERHART, UH, UH, UH, WE DID HAVE THE, THE ERHART COMMUNICATION TEAM ALSO STEP IN TO EXPLAIN THEIR AND, UH, THEIR PREPAREDNESS, UH, IN EXPLAINING, UH, WHEN, UH, WHEN ASKED, UH, UPON, UH, WHEN, UH, IF A TOOL LIKE THIS SHOULD BE AVAILABLE AND BE USED.
SO AT LEAST I, UH, THERE IS A CERTAIN, WE RECOGNIZE THE SENSITIVITY AND CERTAINLY WE ARE WILLING TO, UH, HELP TO MAKE SURE THAT OUR ACTIONS ARE EXPLAINED, UH, AND WHEN, IF WE WERE TO BE IN THAT SITUATION REGARDING PROCEDURES, CERTAINLY IT IS OUR GOAL TO, UH, UH, IF THIS LANGUAGE IS PASSED, WE WILL WORK ON DEVELOPING PROCEDURE, UH, ON
[00:55:01]
UPDATING OUR DESK PROCEDURES THAT WILL COVER CIRCUMSTANCES, UH, WHERE, UH, THAT, THAT WOULD BE, UH, THINGS THAT THE CONTROLLED ROOM WOULD LOOK AT, UH, WHEN MAKING A DECISION AROUND USING A TOOL LIKE THIS.THOSE PROCEDURES WILL BE POSTED WHEN UPDATED.
AND, UM, AND, AND CERTAINLY IF THERE IS ANY FEEDBACK, WE WILL BE HAPPY TO WORK WITH THE, WITH THE STAKEHOLDERS ON THAT AS, AS WELL.
UH, NEXT IN THE QUEUE IS CLIFF.
SO, MARK, UH, MENTIONED A LOT OF, OF OUR CONCERNS AS WELL.
UM, THE END OF THE DAY, WHEN IT BOILS DOWN TO IT, WHEN YOU HAVE FOLKS THAT ARE SITTING IN THE COLD AND POTENTIALLY FREEZING, ULTIMATELY WE HAVE TO BE ABLE TO ANSWER TO 'EM AND TELL 'EM WHY THEY WERE SITTING THERE IN THE COLD.
AND IF WE HAVE TO TELL 'EM THAT DOWN THE ROAD THERE WAS A BATTERY THAT WAS OPERATING, THAT WAS CHARGING, AND YET THEY WERE SITTING IN THE COLD, THAT'S A, THAT'S A HARD BRIDGE TO GAP.
IT'S A HARD BRIDGE TO, TO, TO GET ACROSS THERE.
AND SO FROM AN OPTICS PERSPECTIVE, I THINK THIS IS VERY BAD.
UM, FOR ERCOT, I THINK IT, IT'S VERY BAD FOR ANYBODY THAT SERVES LOAD IN THAT REGARD.
AND ULTIMATELY, UM, ANYTIME THAT YOU'VE GOT FIRM LOAD SHED OCCURRING ON THE SYSTEM, I THINK OUR PRIMARY FOCUS SHOULD BE ON GETTING THOSE CUSTOMERS, UH, BACK ON AND GETTING POWER BACK TO THEM SO THAT THEY AREN'T SITTING THERE IN THE COLD, SO THEY'RE NOT SITTING THERE FREEZING, SO THEIR PIPES AREN'T BURSTING.
AND SO THAT IS REALLY THE, THE, THE JU UH, KIND OF THE GIST OF WHERE WE'RE COMING FROM.
UM, I, I THINK THIS IS JUST BAD POLICY OVERALL AND, AND FRANKLY SHOULD PROBABLY BE REJECTED.
UM, I BELIEVE DAVID KEY IS NEXT.
DAVID, ARE YOU ON? UH, YES, I AM.
AND I BELIEVE I'M NOT DOUBLE MUTED.
UH, SO WE, WE AGREE WITH THE COMMENTS SO FAR.
UM, I DON'T THINK RE REALLY OPPOSED TO THE CONCEPT OF THE DIRECTION, I, I REALIZE THAT THERE ARE PROBABLY CERTAIN CIRCUMSTANCES WHERE A BATTERY, UM, PROVIDES BENEFITS, CAN RESTORE, UM, FIRM LOAD QUICKER.
UH, WE'VE HEARD DISCUSSIONS FROM ERCOT ON THAT.
SO I THINK THE TECHNICAL SIDE HAS DONE A LOT OF HOMEWORK AND WE'VE WORKED WITH, UM, TACK WE APPRECIATE ALL THE EFFORTS, UH, TO HELP US UNDERSTAND, YOU KNOW, HOW THESE THINGS WORK.
UM, WE ARE TROUBLED BY THE OPTICS OF THIS.
UM, AND IF ANYBODY IS PAYING ATTENTION, YOU KNOW, THE LEGISLATURE IS KEENLY AWARE OF THINGS THAT HAPPEN AND CUSTOMERS WILL NOT UNDERSTAND WHAT IS GOING ON UNLESS WE EFFECTIVELY COMMUNICATE WITH THEM.
UM, AND SO TO THAT POINT, WE'VE BEEN ASKING FOR, UM, NARRATIVES, COMMUNICATION, UH, TRANSCRIPTS, OR I MEAN, SORRY, UM, UM, PROMPTS, UM, SCRIPTS, YOU KNOW, THANKS TO HELP US UNDERSTAND WHAT THE MESSAGE IS GONNA BE TO CUSTOMERS IN ERCOT.
UH, BECAUSE AS EVERYBODY KNOWS, ERCOT DOESN'T HAVE ANY CUSTOMERS, ALL THE UTILITIES, ALL THE REPS HAVE THE CUSTOMERS, AND WE'RE THE ONES THAT ARE RESPONSIBLE FOR COMMUNICATING TO THEM.
SO IN ORDER FOR US TO BE ON THE SAME PAGE AND ALIGNED AND POSSIBLY EVEN HELP TO BETTER CRAFT THESE MESSAGES, WE FEEL THAT IT'S IMPORTANT TO KNOW WHAT THE MESSAGE IS GONNA BE.
UM, WE HAVEN'T, I HAVEN'T SEEN ANYTHING POSTED.
UM, IF IT'S OUT THERE SOMEWHERE, PLEASE LET ME KNOW.
UM, BUT THAT'S MY BIGGEST CONCERN, IS THIS IS AN OPTICS NIGHTMARE WAITING TO HAPPEN.
AND IF THIS GOES WRONG, WHICH SHOULD VERY LIKELY WILL, UM, GIVEN HISTORY, THEN WE'RE LOOKING AT ADDITIONAL LEGISLATION AROUND THIS.
AND I THINK, UM, WE WANT TO AVOID THAT BY, YOU KNOW, TAKING SOME RELATIVELY EASY ACTION OF JUST, UH, PUTTING TOGETHER SOME NARRATIVE AND MAKING SURE WE'RE ALL ON THE SAME PAGE.
SO, UM, THAT'S, THAT'S WHERE I'M COMING FROM AND THAT'S WHERE, THAT'S WHERE WE'RE STANDING.
UM, SO HAPPY TO ANSWER QUESTIONS OR, UH, YOUR FEEDBACK ERCOT ON THAT ONE.
UM, NOT, OR DOES SOMEBODY ELSE FROM ERCOT WANT TO RESPOND? I RECALL THAT THAT HAD BEEN A REQUEST AT THE WORKING GROUP LEVEL TO GET SORT OF THE COMMUNICATIONS NARRATIVE EXAMPLES.
IS THERE SOMEBODY FROM
[01:00:01]
UH, CHALLENGE, UH, TIED TO THIS PARTICULAR TOOL, UH, TIED TO THE USAGE OF A TOOL LIKE THIS.UH, SO CERTAINLY, AND TO THAT END, LIKE I MENTIONED, WE'VE HAD OUR COMMUNICATION STAFFS BRIEFED, OUR COMMUNICATION STAFFS UNDERSTAND WHAT THIS IS, AND IT IS OUR PERSPECTIVE.
LIKE I'VE SAID, UH, I MEAN, EVERY SITUATION, UH, IF THE TOOL LIKE THIS WERE TO BE USED IS DIFFERENT.
I DON'T WANT TO SET UP, UH, UH, UH, SET UP A SCRIPT TODAY THAT LOCKS OUR HANDS TO SOMETHING.
SO THERE'S A, A PORTION OF, UH, UH, UH, A PORTION OF THAT WHICH CERTAINLY PREVENTS US FROM POSTING ANYTHING THAT SAYS, HEY, THIS IS OUR MESSAGE.
THE MESSAGE DEPENDS ON THE SITUATION, BUT WE KNOW THAT IT IS THE BURDEN OF EXPLAINING HOW THIS WORKED IS ON US.
AS FAR AS THE USAGE OF A TOOL LIKE THIS IS CONCERNED, WE'VE SAID THAT, UH, TO US, UH, HAVING SOMETHING THAT OUR, WHEN WE ARE IN A SCARCITY SITUATION AND, UH, IN AN ACTIVE FIRM LOAD SHARED EVENT, IT IS CERTAINLY OUR PRIORITY AS WELL TO MAKE SURE THAT FIRM LOAD GETS RESTORED FIRST.
HOWEVER, IN THE PROCESS, WE DO THINK THAT A TOOL LIKE THIS MAY HELP US, UH, CHARGE UP SOME BATTERIES, BUILD UP RESERVES, AND HELP US RESTORE FARM LOAD THAT HAS BEEN SHED FASTER.
THAT'S ESSENTIALLY HOW WE ARE SEEING THIS WORK OUT.
AND, AND CERTAINLY WHEN WE, UH, UH, AS FAR AS I'VE MENTIONED, WHAT THINGS WE WILL LOOK AT, WHAT CONDITIONS WE MAY LOOK AT TO MAKE THE JUDGMENT, UH, WHETHER WE SHOULD USE A TOOL LIKE THIS, UH, WE, WE'LL TRY TO COVER SOME OF THOSE IN OUR PROCEDURES.
THEY WILL BE AVAILABLE TO YOU AND, AND, AND, UH, UH, IF, IF IT HELPS, CERTAINLY IN THOSE, UH, UH, WHEN WE ARE ON A HOTLINE CALL, TAKING AN ACTION LIKE THIS, WE CAN EVEN, UH, PUT THINK ABOUT PUTTING A, A CALL OUT SPECIFICALLY MAKING SURE, UH, THAT YOUR OPERATORS ARE AWARE WHEN WE, WHEN WE MAKE A DECISION TO THAT END.
UH, YEAH, I'D APPRECIATE THAT RESPONSE.
AND I THINK I, I'LL JUST PUSH BACK A LITTLE BIT RESPECTFULLY THAT WHILE THE BURDEN OF COMMUNICATION DOES FALL IN ER, ARCHIVED, IT ALSO FALLS ON UTILITIES.
AND, UM, MY GOAL IS TO BECOME ALLIANCE.
SO APPRECIATE THE, THE COMMITMENT TO WORK WITH US ON MESSAGING.
AND I DON'T KNOW THAT WE REALLY NEED A SCRIPT.
MAYBE WE JUST NEED A NARRATIVE OR SOME HELPFUL, UM, UM, MATERIALS THAT EXPLAIN AT THE CONSUMER LEVEL EXACTLY WHAT IS GOING ON IN THESE SITUATIONS.
AND THOSE WOULD BE VERY DIFFICULT TO CREATE DURING EMERGENCY.
UM, SO, YOU KNOW, EXPLAINING HOW, UH, BATTERIES CHARGING CAN INCREASE THE RATE OF FIRM LOAD, SHUTTER STORE, YOU KNOW, JUST HELP US TO HELP US HELP YOU MAKE THOSE, UH, DECISIONS AND THOSE COMMUNICATIONS BECAUSE WE THINK THERE'S A GOOD STORY TO TELL.
WE CAN EXPLAIN HOW THINGS ARE WORKING.
UH, BUT SO FAR, YOU KNOW, THE RADIO SILENCE HAS BEEN CONCERNING BECAUSE, UM, IT FEELS LIKE WE'RE JUST GONNA WAIT FOR THE EMERGENCY TO HAPPEN, AND THEN WE'LL START THINKING ABOUT HOW WE'RE GONNA MESSAGE.
AND, UH, BY THAT TIME, IT'S TOO LATE.
SO, APPRECIATE YOU, UM, COMMITTING TO WORKING WITH STAKEHOLDERS AND LOOK FORWARD TO ENGAGING IN THAT.
THIS IS JOHN RICH WITH NEXTERA.
UM, JUST WANTED TO OFFER, YOU KNOW, KIND OF A COUPLE COMMENTS.
UM, I, I UNDERSTAND PEOPLE'S CONCERNS ABOUT THE OPTICS.
UM, YOU KNOW, AND I THINK ERCOT IS FAMILIAR WITH BEING JUDGED IN 2020 HINDSIGHT.
UH, BUT I THINK AT THE END OF THE DAY, FAILING TO TAKE, YOU KNOW, FAILING TO GIVE ERCOT AS MANY RELIABILITY TOOLS AS THEY CAN HAVE IS PROBABLY A, YOU KNOW, A BIGGER RISK, RIGHT? THEN THE OPTICS, YOU KNOW, THE OPTICS COULD CUT EITHER WAY, RIGHT? PEOPLE ARE CONCERNED ABOUT THE OPTICS OF LOAD BEING SHED WHILE BATTERIES ARE CHARGING, RIGHT? YOU KNOW, THERE, THERE'S AN ALTERNATIVE SCENARIO WHERE FREQUENCY WAS HEALTHY FOR A WHILE AND BATTERIES WEREN'T CHARGED, AND THEN THERE'S A SUBSEQUENT EVENT WHERE BATTERIES WOULD'VE BEEN USEFUL AND MORE LOAD IS LOST, RIGHT? I THINK AT THE END OF THE DAY, THE GUIDING OBJECTIVE HERE SHOULD BE TO GIVE ERCOT THE, YOU KNOW, THE, THE, THE MOST NUMBER, THE, THE BROADEST NUMBER OF RELIABILITY TOOLS THAT THEY CAN HAVE.
AND THEN I HAVEN'T HEARD ERCOT SUGGEST IN ANY WAY THAT THEY WOULD DEFER BRINGING CUSTOMERS BACK ONLINE TO ALLOW CHARGING.
SO, AND I, AND I, I CAN'T IMAGINE THAT WOULD BE THE CASE.
SO AT THE END OF THE DAY, I THINK, YOU KNOW, WE ALL, WE ALL HAVE THE RISK OF, YOU KNOW, BEING JUDGED IN HINDSIGHT, BUT I THINK YOU HAVE THE, THE HIGH GROUND WHEN YOU'RE DOING THINGS FOR THE
[01:05:01]
SAKE OF RELIABILITY.UM, WE'RE, JOHN IS ON THIS AND COMPLETELY UNDERSTAND THE CONCERN ABOUT THE PERCEPTION EXPRESSED BY MR. SMITH AND, UM, MR. LANGY AND ALSO MR. KEY, AND THAT, THAT WILL BE A CHALLENGE FOR US TO MESSAGE THAT, UH, PROPERLY.
BUT JUST A, A FLAT RIGID PROHIBITION ON CHARGING FOR A GROWING AND SIGNIFICANT RESOURCE, UH, FOR OUR GRID.
I MEAN, IT'S LIKELY WE MAY ALREADY BE THERE.
BATTERIES ARE PROBABLY GONNA BE, YOU KNOW, ALMOST HALF OF OUR ANCILLARY SERVICE, UH, PROVIDERS SOON.
AND THEN SUBSTANTIAL AND GROWING PORTION OF OUR GENERATION FLEET.
AND SO JUST TO PUT A FLAT PROHIBITION ON SUSPENDING AND HAVING THEM JUST SIT THERE FOR THE DURATION OF AN EEA EVENT, WHICH EVERY EEA EVENT, PARTICULARLY LOAD SHED IS DIFFERENT.
AND, YOU KNOW, THERE ARE TIMES WHEN WE'RE GONNA GET UNITS BACK, FREQUENCY WILL RECOVER.
WE CAN HAVE THOSE BATTERIES CHARGED WHEN IT'S, WHEN IT'S SAFE AND CONVENIENT TO DO SO, SO THAT WE COULD USE THEM LATER ON IF THERE ARE OTHER ISSUES DURING A LOAD SHED EVENT.
AND I JUST, I THINK THAT'S A BETTER USE OF THESE RESOURCES THAN JUST HAVING THEM SET ON THE SIDELINES FOR THE DURATION OF AN EEA THREE EVENT.
UH, YEAH, AS CONSUMERS, UH, RESIDENTIAL CONSUMERS IN PARTICULAR, WE SOUGHT TO TABLE THIS NPR R FOR MONTHS AND MONTHS AND MONTHS AND MONTHS AND MONTHS OVER OF THE COMMUNICATIONS ISSUE.
AND, UH, THAT WAS BECAUSE I DIDN'T FEEL LIKE WE HAD HAD A GOOD ANSWER FROM ERCOT ABOUT THAT ISSUE, UM, UNTIL RECENTLY.
UM, SO THEY'VE, I THINK THEY'VE ADDRESSED THAT ISSUE.
IT'S BEEN RECEIVED ATTENTION TO THE HIGHEST LEVELS OF ERCOT ABOUT THE COMMUNICATIONS ISSUE.
AND SO I FEEL CONFIDENT THAT ERCOT WILL BE ABLE TO DEAL WITH THAT ISSUE IN, IN REAL TIME.
AND IN PARTICULAR, UH, ERCOT HAS STATED PRETTY BLUNTLY THAT IF WE LET BATTERIES, UH, CHARGE IN RESPONSE TO OBSTRUCTIONS FROM ERCOT, IT WILL SHORTEN, UM, THE NEED FOR LOAD SHED IN SOME CASES.
AND I THINK THAT'S A VERY CLEAR ANSWER TO COMMUNICATE TO PEOPLE.
I THINK THAT THE MANY MONTHS OF TABLING WAS PRODUCTIVE FOR THAT, UM, HONING OF THAT MESSAGE THAT WE ALL HAVE EXPRESSED CONCERNS ABOUT.
AND SO, YOU KNOW, FOR THAT REASON, WE SUPPORTED THIS FINALLY AT P R S AND WE'LL DO SO AGAIN TODAY.
BUT I, I, I JUST THINK THAT WE'VE MADE PROGRESS ON THE COMMUNICATIONS ISSUE AND, AND THAT'S WHY WE CHANGED FROM SUPPORTING TABLING TO, UH, APPROVING THE, THE NPR.
SO I, UH, CERTAINLY, UH, APPRECIATE THE, THE FEEDBACK AND THE COMMENTS AND UNDERSTAND THE, UH, THAT, THAT THIS IS HARD TO COMMUNICATE TO THE AVERAGE, UH, RATE PAYER.
UH, I WOULD LIKE TO REMIND EVERYONE THAT LATE LAST YEAR WE WENT TO, UM, STAKEHOLDERS AT THE WORKING GROUP LEVEL AND PRESENTED ANALYSIS THAT SHOWED HOW THIS, IF WE HAVE THIS TOOL, HOW THIS TOOL CAN HELP US TO RESTORE LOAD FASTER AND THE AT, AT THE END OF THE DAY, TO, I THINK CLIFF'S POINT THAT, THAT, THAT'S A BIG DEAL.
IF WE CAN RESTORE THAT LOAD FASTER, PEOPLE WILL NOT BE SITTING IN THE COLD AND IT MAY EVEN SAVE LIVES, RIGHT? SO FOR THAT REASON, WE THINK THAT THIS IS THE RIGHT THING TO DO AND WE WOULD LIKE TO MOVE FORWARD WITH THIS TOOL.
I SEE COLIN MARTIN IN THE QUEUE, AND THEN I THINK OUR QUEUE IS WRAPPED UP.
UH, SO WE'RE NOT OPPOSED TO THE NPR AND, AND I, I HAVE NO DOUBT THAT THAT BATTERIES CAN BE BENEFICIAL, UH, DURING E CONDITIONS IF THEY'RE, IF THEY'RE USED CORRECTLY AND OPTIMIZED.
UH, JUST THE, THE CONCERN THAT I'VE GOT IS, UH, IF WE'RE RELYING ON ECONOMICS AND, AND BIDS FOR HOW BATTERIES ARE BEHAVING, HOW THEY'RE CHARGING AND DISCHARGING DURING THE E A THREE, YOU KNOW, THAT MAY NOT, MAY NOT BE THE BEST APPROACH FROM A RELIABILITY STANDPOINT.
SO, UH, JUST ASKING THAT ARCHIVE, CONSIDER HOW BATTERIES CAN BEST BE USED DURING LOAD SHED AND, AND, AND CRAFT OR OPERATING PROCEDURES TO OPTIMIZE
[01:10:01]
THAT USE.UH, NOT JUST FROM A CAPACITY STANDPOINT, BUT TO, TO, TO MAXIMIZE THE, THE TRUE RELIABILITY BENEFIT DURING FRAGILE TIMES AND PROVIDING FREQUENCY RESPONSE AND, AND THOSE, YOU KNOW, THOSE HIGHER VALUE TYPE ITEMS, UH, AS OPPOSED TO JUST FOLLOWING, FOLLOWING PRACTICE THERE.
DID ANYBODY, UH, OR CUT WANNA RESPOND TO THAT? I, I KNOW THAT THE, THE COMMENTS AND THE, THE NPR R GO THROUGH SORT OF THE OPERATIONAL CHANGES, BUT IF YOU GUYS WOULD LIKE TO RESPOND RIGHT NOW, GO AHEAD.
UM, UH, THANK YOU FOR THAT FEEDBACK, COLIN.
UM, SO THE WAY THE, UH, LANGUAGE IS WRITTEN, UH, UH, CERTAINTY, UH, OUR PER TO US, UH, SCD, UH, USING SCD AS A TOOL TO, UH, TO DISPATCH SEEMS TO BE THE, UH, UH, UH, TO DECIDE IF A CHARGING BASE POINT, UH, CAN BE GIVEN, HELPS US, UH, HELPS US MAKE SURE WE, UH, WE TAKE ALL OF THE FACTORS AROUND RELIABILITY INTO CONSIDERATION, BE IT CONSTRAINTS, BE IT, UH, BE IT, UH, EVEN, UH, AVAILABILITY OF SUPPLY.
SO AT LEAST OUR PERSPECTIVE TODAY IS AS FAR AS, UH, GETTING THAT NON-ZERO BASE POINT IS CONCERNED.
IT COMING FROM MAKES THE MOST SENSE.
NOW IF WE NEED TO, IF WE SEE SOMETHING COMING ALONG AND IF WE NEED TO, UH, AND IF WE SEE THAT THAT CHARGING IS HURTING, UH, UH, IS, IS NOT HELP, IS NOT HELPING THE SITUATION, CERTAINLY THE LANGUAGE LETS THE CONTROL ROOM, UH, GO ISSUE A SUSPENSION INSTRUCTION IF NECESSARY USING A VERBAL DISPATCH.
SO, SO THERE IS, UH, THERE IS THAT SORT OF A SETUP ALREADY IN THE LANGUAGE AND, AND ABSOLUTELY.
WE'LL, WHEN WE ARE WRITING OUR PROCEDURES, WE'LL MAKE SURE THAT IT'S CLEAR TO THE, UH, TO THE OPERATORS AS WELL, UH, WHAT SORT OF CAPABILITY THEY HAVE, UH, AVAILABLE TO THEM SO THAT THEY CAN, UH, OPTIMIZE THE USE OF BATTERIES DURING A FRAGILE SITUATION LIKE AN E THREE.
UM, OH, I SEE BILL BARNS BACK IN THE QUEUE, I BELIEVE.
OR DO YOU THINK WE HAVE, WE HAVE PROPERLY VETTED AND DEBATED THIS ISSUE AND HEARD FROM BOTH SIDES.
UM, BUT I WOULD OFFER A MOTION TO SUPPORT ERCOT COMMENTS ON THIS IF, UH, THE TIME'S, RIGHT? YEP.
I, I WAS JUST GONNA ASK FOR THAT.
AND I SEE A SECOND, UH, FROM KEVIN HANSON AND THE QUEUE AND A REQUEST FOR A ROLL CALL VOTE.
I DON'T THINK THIS CAN GO ON THE COMBO BALLOT.
COREY, ANN, DO YOU HAVE EVERYTHING YOU NEED TO GO AHEAD WITH THIS? UH, YES MA'AM.
WE'VE GOT A MOTION AND A SECOND, WHICH I'VE GOT ON SCREEN FOR Y'ALL ON A STANDALONE BALLOT SEPARATE FROM THE COMBO.
AND THIS IS TO RECOMMEND APPROVAL OF 1143 WITH THE MAY 19TH ERCOT COMMENTS, WHICH NOTAH JUST WALKED THROUGH, AND THEN THE 5 22 REVISED IMPACT ANALYSIS, WHICH SHE ALSO WALKED THROUGH TO SHOW THAT IT'S NO IMPACT.
AND WE WILL BEGIN UP WITH THE CONSUMER SEGMENT WITH MARK.
NICK FARK, YOU WITH US? I'M HERE, BUT DOUBLE MUTED.
FAIR ENOUGH TO HAVE IT ALL OVER.
AND THEN BILL FOR GARRETT EPSTEIN.
ONTO OUR CO-OPS, MIKE, UH, ABSTAIN.
ONTO THE INDEPENDENT GENERATORS.
AND THEN CAITLIN FOR BOB? YES.
[01:15:01]
IPMS. JEREMY? YES, THANK YOU, REG.SETH CONCHING YOU WITH US? I WILL LOOP BACK FOR YOU, SETH, OR YOU CAN VOTE IN THE CHAT ABOUT OUR I REPS.
MOTION CARRIES 96% FOUR WITH, UH, 1% ONE OF NO AND SIX EXTENSIONS.
THANKS FOR CARRYING, CARRYING THE BATON ON THAT ONE, CAITLIN.
SO, UM, I'VE GOT WORD FROM KAAN THAT, UM, LOOKS LIKE MAYBE THEY HAVE A, A POSITION TO WORK FROM A PROPOSAL READY.
SO, UH, KAAN, I WANTED TO CIRCLE BACK TO YOU FIRST OF ALL ON THAT.
SO, UM, WE KIND OF WORKED THROUGH BOTH WHAT ERIC HAD SAID AND TRIED TO TAKE INTO, UH, CONSIDERATION, UH, ALL THE POINTS MADE BY, UH, VARIOUS PARTIES.
UM, AND I THINK, UH, I, I, I CAN'T MAKE A MOTION, BUT, UH, WE WOULD PROPOSE, UH, SOMETHING TO THE EFFECT THAT, UH, THERE BE A MOTION THAT MOVES THIS NPR R R FORWARD AS, UH, APPROVED BY P R S AND THAT TAC INSTRUCT US AND STAKEHOLDERS TO WORK ON, UH, THE DISQUALIFICATION ISSUE AND BRING BACK A SEPARATE NPR R.
IT LOOKS LIKE ERIC GOFF HAS GONE AHEAD AND MOVED FOR THAT.
UH, BRIAN SAMS, WE'VE GOT A SECOND FROM HIM.
UM, AND I WANT TO SEE IF I CAN CLEAN UP THE QUEUE HERE.
SO WE'VE GOT BILL BARNES IN THE QUEUE.
UH, I BELIEVE THAT'S IT RIGHT NOW.
I WAS GONNA, UH, EXPRESS MY GRATITUDE TO KAAN AND ERCOT STAFF FOR BEING FLEXIBLE ON THIS ONE AND WORKING WITH US, AND I WAS GONNA MAKE THE MOTION, BUT ERIC STOLE MY THUNDER.
UH, IAN, IAN POSITIVE WHETHER OR ASKED WHETHER WE CAN PUT THIS ON THE COMBO BALLOT, UM, I THINK WE'RE LANDING IN A GOOD PLACE HERE.
IF ANYONE OBJECTS TO PLACING THIS ON THE COMBO BALLOT.
UM, PLEASE STATE SO, HEY, CLIFF, THIS IS ANN BOUR.
I JUST WANNA CLARIFY THAT THE MOTION WILL BE TO, UM, APPROVE THE P R S VERSION, AND THEN THE TAC INSTRUCTION WILL JUST BE CAPTURED IN THE, UM, DISCUSSION IN THE REPORT AND NOT PART OF THE MOTION.
SO, AND, AND, AND I WOULD, I'M SORRY, I'M INTER INTERJECTING MYSELF.
UM, I DID CONFIRM I THOUGHT WITH DAVITA THAT WE DIDN'T NEED ANYTHING FROM OUR COMMENTS, BUT IT MIGHT BE WORTH A SECOND CHECK ON THAT.
THAT'S RIGHT, KENAN, OUR COMMENTS WERE LIMITED TO THE, THE FUEL RELATED ISSUE.
AND JUST TO RECAP, UH, WE TYPICALLY DO NOT CAPTURE, OR WE STOPPED CAPTURING DIRECTION TO ERCOT TO, OR ANY OF THE SUBCOMMITTEES TO DO SPECIFIC TASKS, UM, WHEN WE'RE APPROVING NPR R.
SO THAT BEING STATED, UM, WE WILL JUST BE MOVING TO APPROVE 1167 IS RECOMMENDED, AND ERCOT HAS THE DIRECTION FROM THE CHAIR TO PURSUE, UM, FURTHER DISCUSSIONS AND INVESTIGATION.
SO, UM, ERIC GOFF FOLLOWED BY BILL BARNES.
UM, JUST REAL BRIEFLY ON THE PROCEDURAL ISSUE, NOT TO BELABOR IT, BUT
[01:20:01]
I WOULD CONTINUE TO LIKE THE ABILITY TO INCLUDE COMPLEX LIKE WE USED TO DO AND WAS JUST SUGGESTED BY CANON.UM, MAYBE WHEN WE DO OUR PROCEDURAL REVIEW, ORT REVIEW, YOU KNOW, THE NEXT TIME WE CAN HAVE THAT BE AN ISSUE THAT WE CAN TRY TO ADDRESS TO SEE IF THERE'S A, A WAY THAT MARKET RULES FEELS COMFORTABLE ALLOWING THAT TO HAPPEN AGAIN.
UH, BILL? YEAH, CLIFF, UH, UH, SIMILAR TO ERIC, I, I AGREE WE CAN'T DIRECT ERCOT TO DO ANYTHING SPECIFICALLY, BUT I, I GUESS I WOULD SEE THIS AS ASSIGNMENT FOR US TO WORK WITH ERCOT ON, UH, ON THIS PARTICULAR ITEM.
SO EITHER ATTACK ASSIGNMENT OR SOMETHING THAT SHOWS THAT STAKEHOLDERS ARE, UH, COMMITTING TO WORK WITH ERCOT STAFF ON DEVELOPING THE SPECIFIC CRITERIA FOR DECERTIFICATION.
IF WE MOVE THIS TO OUR ACTION ITEMS, IS THAT ACCEPTABLE? SO THAT WE GOT IT CAPTURED? OKAY.
ANY OTHER DISCUSSION ON THIS PARTICULAR ITEM? ALL RIGHT.
I THINK WE LANDED IN A GOOD SPOT HERE AND, AND KAAN AND, AND FOLKS AT ERCOT APPRECIATE Y'ALL GOING BACK AND THINKING ABOUT THIS.
OKAY, MOVING ON TO THE NEXT REVISION REQUEST.
UM, LOOKS LIKE WE'VE GOT SOME CALPINE COMMENTS AND ERCOT COMMENTS, UH, BOTH THAT WERE FILED ON MAY 22ND.
SO, UM, GO AHEAD AND START WITH THE CALPINE COMMENTS.
SO BRIAN, I'LL LET YOU GO AHEAD AND EXPAND UPON THOSE, AND THEN WE'LL FOLLOW UP WITH THE
UM, FIRST, LET ME JUST SAY HOW MUCH I APPRECIATE THE REVISION REQUEST TEAM AND ERCOT STAFF ON THE NPR AND ITERATIONS THAT HAVE BEEN FILED IN AN IDEAL WORLD WOULD'VE BEEN ABLE TO, YOU KNOW, SEND THIS TO A WORKING GROUP AND WORK ON IT FOR A FIREMAN BECAUSE OF THE URGENCY REQUEST, THAT PROCESS WASN'T AVAILABLE TO US.
SO CALPINE HAS CONTINUED TO WORK WITH ERCOT STAFF, KINDER MORGAN, OTHER STAKEHOLDERS ON THIS REVISED DEFINITION OF FIRM FUEL SUPPLY SERVICE, QUALIFYING PIPELINE.
AND, UH, WHEN THE QUALIFYING PIPELINE DEFINITION WAS FIRST PUBLISHED, UH, BY THE COMMISSION, WE'D FLAGGED THAT, THAT IT WAS REALLY OVERLY RESTRICTIVE AND WOULD LIKELY RESULT IN NO AVAILABILITY FOR THE, UH, INTERSTATE PIPELINE NETWORK TO PARTICIPATE.
AND SO WE WERE TOLD TO WORK IT OUT AT ERCOT, AND THAT'S REALLY WHAT WE'VE ATTEMPTED TO DO HERE.
SO OUR ASK IS THAT TACK ENDORSE NPR 1169 WITH THE LATEST CALPINE COMMENTS THAT WERE FILED YESTERDAY TO ALLOW FURTHER CONSIDERATION BY THE ERCOT BOARD AND COMMISSIONED REGARDING THE PROPOSED QUALIFYING PIPELINE DEFINITION.
UH, I THINK I HAVE JOHN ARNOLD WITH KINDER MORGAN ONLINE FOR A FEW MORE MINUTES, AND HE MAY BE, UH, ABLE TO ANSWER SOME QUESTIONS, UM, THAT IF THERE ARE ANY FROM TACT.
BUT, YOU KNOW, WE, WE BELIEVE THAT THIS REVISED DEFINITION OF QUALIFYING PIPELINE ESTABLISHES A VERY ROBUST PERFORMANCE STANDARD WHILE BRINGING MORE COMPETITION TO THE PRODUCT, WHICH BENEFITS CONSUMERS.
AND I THINK THE NEED FOR THIS NPR IS ESPECIALLY APPARENT JUST GIVEN THE DISCUSSION WE HAD ON 1167 REGARDING THE DEARTH OF AVAILABLE CAPACITY AND THE PURPOSE OF THE FIRM FUEL PRODUCT TO PROVIDE ACOT WITH ADDITIONAL OPERATIONAL FLEXIBILITY.
SO LET ME JUST TALK QUICKLY ABOUT THE QUALIFYING PIPELINE DEFINITION.
UM, I THINK IT PROVIDES REALLY ROBUST STANDARDS FOR PARTICIPATION BY THE INTER INTRASTATE NETWORK.
AND IT DOES THIS REALLY IN, IN FOUR WAYS.
FIRST, IT ENSURES THAT THE PIPELINE CERTIFY THAT IT HAVE ENOUGH OPERATIONAL CAPACITY, INCLUDING SUFFICIENT PIPELINE PRESSURE TO BE ABLE TO CONTINUOUSLY PROVIDE SERVICE TO A GENERATION RESOURCE.
SECOND, IT ELIMINATES PIPELINES THAT HAVE HAD PREVIOUS CURTAILMENTS.
THE FIRST WAY IT DOES THIS IS THAT IT, IT SAYS THAT ANY, UH, PIPELINE THAT CURTAILED A GENERATION RESOURCE SINCE JANUARY 1ST, 2021, SO THAT INCLUDES URI, UH, WOULDN'T BE ELIGIBLE.
AND SECOND, IT LIMITS PARTICIPATION TO TRANSPORTATION ONLY PIPELINES.
AND THAT STANDARD REALLY IS IMPORTANT BECAUSE IT ELIMINATES THE TYPE OF DISTRIBUTION PIPELINES THAT SERVE BEHIND THE CITY GATES AND MAYBE HAVE HAD RECENT, UH, CURTAILMENT ISSUES.
UM, THE THIRD THING IS JUST BASED ON OUR OWN EXPERIENCE THAT MEETS THE STANDARD SET BY, BY YURI, UM, YOU KNOW, WE HAD THIS KIND OF SERVICE DURING URI AND IT PERFORMED.
UM, I MEAN, THE LAST THING IS THAT, YOU KNOW, ANY, ANY QUALIFYING PIPELINE HAS TO BE REGISTERED AS A CRITICAL NATURAL GAS FACILITY, WHICH ELIMINATES PARTICIPATION IN
[01:25:01]
S OR ANCILLARY SERVICE MARKETS WHERE A LOAD WOULD HAVE TO CURTAIL.AND SO WE FEEL LIKE THIS PROVIDES A, A REALLY, UH, FAIR, UM, STANDARD FOR, FOR PERFORMANCE AND, AND MEETS THE, THE PERFORMANCE STANDARD, UM, WORK RETIREMENT WOULDN'T OCCUR.
AND WITH THAT, I WILL STAND BY FOR QUESTIONS.
THERE IS NO ONE IN THE QUEUE RIGHT NOW, BRIAN.
SO I THINK WHAT WE'LL DO IS WE WILL SWING TO THE, UH, UH, ERCOT COMMENTS.
ACTUALLY, I'VE GOT ERIC GOFF IN THE QUEUE.
SO ERIC, UH, IF YOU WANNA GO AHEAD WHILE WE'RE GETTING THE FOR COMMENTS, I'LL WAIT FOR THE COMMENTS.
SO, DEVITO, ARE YOU GONNA BE TALKING TO THIS ONE? YES, SIR, I AM.
I'D LIKE TO START THE SAME WAY THAT, UM, BRIAN DID, WHICH IS TO THANK EVERYBODY FOR THEIR, THEIR INTEREST AND PARTICIPATION IN THIS NPR.
IT'S ACTUALLY BEEN A PRETTY LONG PROCESS, OR CUT.
FIRST PUBLISHED A DETAILED DRAFT FRAMEWORK THROUGH A MARKET NOTICE TO ALL MARKET PARTICIPANTS BACK IN NOVEMBER.
UM, WE REPUBLISHED A MARKET NOTICE IN EARLY DECEMBER AND HAD A WORKSHOP ON, ON THAT FRAMEWORK IN, IN MID-DECEMBER.
THEN, UM, WE BROUGHT A, A ISSUE THAT WE DEEMED TO, TO INVOLVE POLICY CALLS TO THE COMMISSION, AND WE WERE GRATEFUL TO, UM, GET SOME PRETTY THOROUGH CONVERSATION AND GUIDANCE FROM THEM OVER MULTIPLE OPEN MEETINGS IN JANUARY, FEBRUARY, AND MARCH.
UM, THAT WAS SPECIFICALLY ON AN ISSUE THAT IS, IS STILL PENDING AND, AND BEFORE TACT FOR THEIR CONSIDERATION, WHICH IS WHAT IS THE APPROPRIATE DEFINITION OF A QUALIFYING PIPELINE.
UM, HAVING A, A FIRM TRANSPORTATION AGREEMENT WITH A QUALIFYING PIPELINE IS ONE OF THE REQUIREMENTS FOR THE, THE NEW TYPE OF RESOURCE THAT WOULD QUALIFY UNDER PHASE TWO.
AND THOSE ARE RESOURCES THAT HAVE OWNED NATURAL GAS THAT IS STORED OFFSITE, AND THEY'D BE REQUIRED TO EITHER OWN OR HAVE FIRM AGREEMENTS FOR, UM, STORAGE SERVICE AND TRANSPORTATION BETWEEN THE STORAGE AND THE RESOURCE.
AS, AS BRIAN, UH, HOPEFULLY EXPLAINED THERE IS, THERE IS SOME DAYLIGHT BETWEEN THE DEFINITION THAT ERCOT PROPOSED IN, IN THE NPR R, WHICH IS BASED ON THE GUIDANCE THAT WE RECEIVED FROM THE COMMISSION, WHICH IS TO EXCLUDE THOSE INTRASTATE PIPELINES THAT HAVE CUSTOMERS THAT THEY SERVE THAT HAVE A HIGHER PRIORITY AGAINST CURTAILMENT UNDER THE RAILROAD COMMISSION'S, UH, CURTAILMENT RULE.
UM, AND CALPINE'S COMMENTS PERMIT SUCH RESOURCES TO, UM, STILL QUALIFY IF THEY MEET ADDITIONAL PROTECTIONS THAT CALCINE HAS, HAS SUGGESTED.
UM, AS WE EXPLAIN IN OUR COMMENTS, WE THINK THAT THERE IS SOME DEGREE OF ADDITIONAL RISK.
IT'S, IT'S DIFFICULT TO QUANTIFY, UM, AND IT'S GONNA VARY BY UTILITY AND, AND CIRCUMSTANCES IF THERE IS A FORCE MAJOR EVENT, UM, BUT, BUT, OR A CURTAILMENT EVENT.
UM, BUT CAUSE OF THAT DIFFERENCE, WE'RE GOING TO CONTINUE TO SUPPORT THE DEFINITION THAT WAS PROVIDED AND APPROVED BY THE COMMISSION.
UM, ONE OTHER THING THAT ERCOT DID IN OUR COMMENTS IS WE ALSO, UM, MADE WHAT WE CONSIDER A CLARIFICATION, UM, WHEN ADDRESSING, UH, WHAT NEEDS TO BE PRO, UM, WHEN A FORCE MAUR REPORT NEEDS TO BE PROVIDED, WHEN, WHEN A, A FORCE MAUR EVENT IS DECLARED.
WE HAD TALKED ABOUT, UM, A FAILURE TO DEPLOY, UM, IN ORDER TO MAKE IT CLEAR THAT A FAILURE TO DEPLOY ALSO INCLUDES.
IF YOU AREN'T DEPLOYED BECAUSE YOU ARE NOT AVAILABLE, THEN WE'D, WE'D LIKE THE SAME REPORT.
AND WITH THOSE EXPLANATIONS OF THE CHANGES WE'VE PROPOSED, I'M HAPPY TO TAKE ANY QUESTIONS.
UM, THANKS DAVITA, I APPRECIATE THAT.
UM, UM, THE LAST NPR INDICATED THAT, YOU KNOW, WE WERE SUPPORTING, UH, Y'S COMMENTS ON THAT BECAUSE WE UNDERSTOOD WHERE YOU'RE COMING FROM AND I APPRECIATE THAT Y'ALL WERE ABLE TO BE FLEXIBLE ON THAT TO MOVE FORWARD.
UH, HOWEVER, ON THIS ONE, I THINK THAT CALPINE HAS MANAGED TO MITIGATE MOST, IF NOT ALL, OF THE RISKS THAT ARE HERE, UM, AND WILL CONTINUE AS IF THEY BECOME A PROVIDER OF F F S S TO, UM, BEAR THE RISK OF NON-PERFORMANCE.
SO I, I THINK THIS IS A, AN ISSUE THAT WAS UNFORTUNATELY NOT, UH, ADDRESSED DURING THE COMMISSION DISCUSSION THAT YOU DISCUSSED, BUT IT SEEMS TO MEET THE, THE NEEDS OF THE PROGRAM AND, UM, THE, THE INTENT AND SPIRIT OF THAT.
AND SO I WOULD SUPPORT THIS AND WHATEVER IT COULD BE AT THE COMBO BALLOT.
[01:30:09]
SORRY GUYS.MY MUTES BEEN MISBEHAVING HERE, SO GOT BILL BARNES, FOLLOWED BY EMILY.
YEAH, WE WOULD SUPPORT PUTTING THIS ON THE COMBO BALLOT AS WELL.
JUST WANNA ACKNOWLEDGE THE, THE WORK BY DAVITA AND ERCOT STAFF AND ALPINE AND KINDER MORGAN.
I THINK THE, I'M GONNA REPEAT SOME OF THE COMMENTS I MADE LAST DISCUSSION AT P R S IS, I THINK THE COMMISSION THE DISCUSSION ON THIS TOPIC AT THE COMMISSION, UM, SINCE YOU JUST KIND OF RAN OUT OF TIME AND WHICH ALLOWED STAKEHOLDERS, UH, CALPINE KINDER MORGAN TO WORK ON A MORE PRECISE SOLUTION THAT ADDRESSES THE, THE CONCERNS THAT THE COMMISSION RIGHTLY BROUGHT UP.
I MEAN, WE, WE SHARE, UH, EVERYTHING THAT WAS DISCUSSED DURING THOSE, UM, DURING THOSE OPEN MEETINGS REGARDING THIS PRODUCT.
BUT GIVEN THE DEADLINES TO TRY TO GET THIS DONE, UM, GET SOMETHING APPROVED IN DIRECTION SO THAT WE HAVE, UH, THE NEXT ITERATION READY FOR AUGUST, UM, I JUST, I THINK THAT THAT KIND OF SPED THINGS UP, UM, IN TERMS OF THEIR DECISION.
SO I, I, I DO BELIEVE THAT THIS HAS ADDRESSED THOSE CONCERNS.
UM, WE'VE MET WITH COMMISSIONERS BEFORE AND, AND DISCUSSED THIS WITH THEM, AND I, I THINK THIS IS, UH, A ADDRESSES MANY OF THOSE SPECIFIC, UH, ISSUES AND CONCERNS THAT, THAT WE HEARD.
UM, I THINK IT'S A GOOD SOLUTION AND WE'LL, WE'LL BE SUPPORTING THIS HERE ON THIS VOTE AND IN DISCUSSIONS WITH COMMISSIONERS AS WELL.
CAUSE I THINK IT DOES MITIGATE A LOT OF THE CONCERNS, UM, THAT WE HAD.
UM, I, I APPRECIATE THAT PERSPECTIVE, BILL.
I GUESS I, I WOULD FEEL A LOT BETTER, YOU KNOW, IF, IF WE HAD MORE, UM, GUIDANCE FROM THE COMMISSION ON THIS.
UM, I DON'T KNOW IF IT'S A QUESTION OF THEM RUNNING OUT OF TIME OR IF, YOU KNOW, THESE ISSUES WEREN'T REALLY FULLY VETTED, UM, THROUGH THE PROCESS, BUT THERE WERE SEVERAL OPEN MEETINGS AND, UM, YOU KNOW, I, FOR ONE, CAN'T TELL, RIGHT, IF THIS FULLY ADDRESSES ALL THE CONCERNS THAT THE COMMISSIONERS RAISED ABOUT THE EXPANSION OF THE, UM, SERVICE TO THESE OTHER POTENTIAL QUALIFYING ENTITIES.
AND I MEAN, WE, WE CAN MAKE OUR BEST GUESS HERE.
AND I THINK CALPINE'S DONE A, YOU KNOW, A LOT OF GREAT WORK AND I APPRECIATE BRIAN WALKING THROUGH THE COMMENTS FOR US.
UM, BUT ERCOT SEEMS TO BE IN A DIFFERENT PLACE, AND I'M HAVING A HARD TIME KIND OF RECONCILING WHETHER THIS IS ENOUGH PROTECTION OR NOT.
UM, YEAH, IF ARCOT COULD SPEAK TO ANY CONVERSATIONS THEY MIGHT HAVE HAD OR ANY OF THE OTHER PARTIES THAT HAVE BEEN WORKING ON THIS, JUST TO GIVE US KIND OF BETTER INFORMATION AND CONTEXT, THAT WOULD BE HELPFUL.
BRIAN, DID YOU HAVE ANYTHING YOU WANTED TO SHARE IN RESPONSE TO WHAT EMILY STATED OR? YEAH, I MEAN, WE CERTAINLY HAVE, HAVE, UH, HAD CONVERSATIONS WITH THE COMMISSION AND LIKE I SAID AT THE LAYOUT, THE DIRECTION WAS TO WORK THIS OUT THROUGH ERCOT.
AND I THINK, YOU KNOW, TO BE REALLY RESPONSIVE TO EMILY, THAT THERE'S, UM, YOU KNOW, WHEN THIS GOES TO THE BOARD, THE COMMISSION TYPICALLY IS ALL THERE.
AND I FEEL LIKE IF THIS DEFINITION ISN'T, UM, DOESN'T MEET THEIR NEEDS, THE BOARD WILL KNOW.
AND WE'VE SEEN THE BOARD, UM, MAKE REVISIONS TO PRIOR, UM, NPRS THAT, THAT THEY BELIEVE ARE, UH, CONSISTENT WITH COMMISSION DIRECTION.
SO I, I FEEL LIKE THERE'S STILL VERY MUCH AN OPPORTUNITY FOR THAT, UH, EVEN WITH ADOPTION OF, OF THESE CALPINE COMMENTS.
SO IF I COULD JUST ASK A FOLLOW UP THEN, UH, IS IT YOUR VIEW THAT IF THE BOARD DOESN'T THINK THIS APPROPRIATELY MITIGATES THE RISK, THEY WOULD JUST REVERT TO THE ERCOT COMMENTS FILED YESTERDAY? UH, THAT'S WHAT I WOULD EXPECT.
I DON'T KNOW IF ANYONE FROM ERCOT CAN WEIGH IN ON THAT.
YOU KNOW, I, I HESITATE TO SAY WHAT THE BOARD WOULD DO.
I, I DO THINK THAT THROUGH THIS PROCESS WE'VE BEEN ABLE TO DEVELOP TWO, TWO VALID APPROACHES, UM, FROM WHICH THEY CAN CHOOSE.
AND, AND, UM, AS BRIAN POINTED OUT, COMMISSIONERS OFTEN, UH, ATTEND THE BOARD MEETINGS AND, AND ARE GREAT ABOUT SHARING THEIR VIEWS WHEN THEY VIEW IT'S APPROPRIATE TRUST THAT THEY WILL DO SO IF THEY THINK THAT'S THE RIGHT TIME TO DO IT.
YEAH, I THINK THIS GOES, THIS IS SOMETHING WE SHOULD REMEMBER WHEN WE TAKE UP THE PRIORITY REVISION REQUEST PROCESS.
I THINK IT'S A GOOD, UM, OPPORTUNITY FOR LESSONS LEARNED AS WE THINK ABOUT HOW TO ITERATE ON DIRECTIVES FROM THE
[01:35:01]
COMMISSION GOING FORWARD.UM, WE WOULD JUST LIKE TO ABSTAIN JUST DUE TO, UM, SOME OF THE POINTS THAT EMILY, UH, BROUGHT UP.
SO IT LOOKS LIKE WE WILL NOT BE ABLE TO DO THIS ON A COMBO BALLOT UNLESS YOU'RE WILLING TO ABSTAIN ON THE COMBO BALLOT.
UH, IAN, HOW, HOW WOULD YOU PREFER TO MOVE? I CAN DO THAT IF IT'S EASIER FOR TAC.
VERY WELL, OKAY, DAVITA, THANK YOU.
SO IF DOES CHOOSE TO MOVE FORWARD WITH THE CALPINE COMMENTS, WE WOULD REQUEST THAT YOU, UM, INCORPORATE THE CHANGES THAT WE MADE TO THE PROVISION REGARDING WHEN A A FORCE MA EVENT A REPORT IS REQUIRED.
WE THINK IT'S A CLARIFICATION, BUT IT'D BE BETTER TO HAVE, ITS EXPLICITLY MADE CLEAR IN THE PROTOCOLS THAT SUCH REPORT IS REQUIRED IF, IF YOUR FAILURE TO DEPLOY IS BECAUSE YOU WEREN'T AVAILABLE.
DITA, DO YOU HAVE LANGUAGE THAT YOU WOULD WANNA OFFER UP TO ADD TO THAT? IF TODAY YES.
I'M, I'VE GOT IT RIGHT HERE ON SCREEN.
IT'S, IT'S LITERALLY, IT'S, IT'S THE FOUR WORDS, LEAVING THE DEFINITION ALONE, LETTING THE CALPINE COMMENTS STAND IN TERMS OF THE DEFINITION UP IN 2.1, BUT THEN THE FOUR WORDS THAT DAVITA COMPANY CLARIFIED DOWN IN 8 1 1 216 WOULD, IF, IF THAT WOULD BE AMENABLE TO MAKE THESE AS DESKTOP EDITS, THIS WOULD LIFT THESE FOUR WORDS THAT MURCOTT PROPOSED IN OUR COMMENTS INTO THE CALPINE COMMENTS.
SO, OKAY, SO I'VE HEARD A, I I HAVE NO OTHER COMMENTS IN THE QUEUE, SO I'VE HEARD A REQUEST TO HAVE THE CALPINE COMMENTS PLACED INTO THE COMBO BALLOT.
UM, UNLESS SOMEONE WOULD LIKE TO MOVE OTHERWISE.
I'VE ALSO HAD A REQUEST FROM DEVI, GO AHEAD.
YEAH, I THINK DAVINA'S REQUEST FOR, UH, AMENDMENTS FROM TACT THAT DEATH OF BALLOTS IS REASONABLE.
UM, I'D LIKE TO HEAR FROM CALPINE TO MAKE SURE THAT THEY AGREE, BUT IT, IT SEEMS PRETTY STRAIGHTFORWARD.
BRIAN, WAS THAT A YES, BRIAN SAMS, BRIAN, WE CAN'T HEAR YOU.
ARE YOU THERE ARE DOUBLE MUTED OR RUNNING INTO SOME TECHNICAL DIFFICULTIES.
SO, DAMITA, THIS JUST IS CHANGING WHEN THE GENERATION RESOURCE HAS TO PROVIDE THE REPORT TO YOU, RIGHT? YES.
AND I, I'D SAY IT'S REALLY A CLARIFICATION THAT OKAY, IF, IF YOU WEREN'T DEPLOYING BECAUSE YOU WERE UNAVAILABLE THEN THAT THE REPORT IS STILL REQUIRED MM-HMM.
I, I JUST HAD A QUESTION TO CLARIFY INTENT, AND HOPEFULLY I CAN HELP ME, AND I DON'T THINK IT'S A BIG HOLD UP, BUT I WAS NOTICING THERE'S A SECTION I'M TRYING TO FIND, UM, IN THE DEFINITION I WAS TALKING ABOUT THE QUALIFYING PIPELINE.
IT SAYS THE PIPELINE OPERATED, BUT OPERATED BY AN ENTITY THAT PARTICIPATES IN OUR ARCHIVE LOAD PROGRAM.
IS THAT SECTION, UM, YEAH, IT'S IN THE DEFINITION JUST BEFORE FIRM GAS STORAGE.
YEAH, SO THAT PARAGRAPH RIGHT THERE, UM, IS THE INTENTION THAT THE EQUIPMENT, SO I'M GUESSING THAT THE INTENTION, OR I'M ASSUMING THAT THE INTENTION IS ANY OF THE EQUIPMENT CAN'T BE PART OF THE DEMAND RESPONSE PROGRAM, BUT IT SAYS, UM, THE PIPELINE OPERATED BY BY AN ENTITY THAT PARTICIPATES.
SO IF AN ENTITY IS PART OF A BIGGER DEMAND RESPONSE PROGRAM AND THEY HAVE OTHER, YOU KNOW, EQUIPMENT THAT DOESN'T IMPACT ANY OTHER PIPELINE EQUIPMENT, IS THAT GONNA BE SOMETHING THAT EXCLUDES THEM? IT'S, I'M JUST KIND OF CONFUSED ON, I THINK I UNDERSTAND THE INTENTION, BUT I'M NOT SURE THE WORDS GET THERE.
YEAH, THE INTENTION WAS THAT A PIPELINE WHO WAS IN OUR LOAD RESOURCE PROGRAM OR OUR E S PROGRAM OR ANY OTHER DEMAND RESPONSE PROGRAM WOULDN'T QUALIFY
[01:40:01]
TO BE A QUALIFYING PIPELINE.IF, IF THERE'S A BELIEF THAT THAT'S OVER BROAD, WE'RE, WE'RE HAPPY TO CONSIDER, UM, WAYS TO REFINE THAT.
BUT, BUT WE JUST WANTED TO MAKE SURE THAT THE PIPELINE WHO IS SERVING AN F F FS S RESOURCE ISN'T, UM, SIGNED UP TO, UM, HAVE THEIR ELECTRIC SERVICE CURTAILED
SO I, I AGREE WITH THAT DIRECTION.
UM, I'M JUST, UH, MAYBE I, MAYBE I CAN WORK WITH YOU OFFLINE.
IT SEEMS LIKE A, A MINOR CHANGE.
I WOULD HELP CLARIFY THAT, BUT, UM, I, I DON'T WANNA HOLD IT UP TODAY, BUT I DO THINK THAT WE COULD PROBABLY ADD SOME WORDS THAT, UM, WOULD ALLOW, I'LL THINK OF SOME CONGLOMERATE OUT THERE THAT OWNS A PIPELINE THAT OWNS A DATA STORAGE COMPANY, UM, SINCE THE ENTITY WOULD BE PART OF A E R S FOR THE DATA STORAGE COMPANY, UM, BUT NOT THE PIPELINE.
MAYBE THERE'S SOMEWHERE WE CAN WORK ON THAT TO, TO FIGURE THAT OUT.
I, I'D BE HAPPY TO TALK WITH YOU, DAVID.
ROY, DID YOU WANNA BRING UP YOUR COMMENTS THERE, OR ROY? TRUE.
SO ROY HAD OFFERED UP IN THE, UH, IN THE CHAT, SOME POTENTIAL EDITS THERE.
UH, LET'S GO AHEAD AND MOVE ON TO ERIC GOFF THEN.
UH, I THINK ROY'S, UM, PROPOSAL ADDRESSES DAVID'S ISSUE, UH, IN A DIRECT WAY.
I DON'T WANT TO MAKE TOO MANY CHANGES ON THE FLY THAT, YOU KNOW, MAKE PEOPLE UNCERTAIN ABOUT THE ROAD, BUT THAT'S SUBMISSION LIKE A PRETTY STRAIGHTFORWARD FIX.
SO I'D WELCOME ANY FEEDBACK, BUT I'D LIKE TO INCLUDE WHAT'S, UH, UM, HIGHLIGHTED ON THE SCREEN AS PART OF THE MOTION TO ADDRESS DAVID'S CONCERN.
DAVID KEY SAYS HE SUPPORTS THE CHANGE IN THE, IN THE CHAT, SO, OKAY, ROY, THANKS FOR OFFERING THAT UP.
SO WHAT I'M HEARING RIGHT NOW, AND I THINK WE MIGHT BE ABLE TO GET THERE, UM, FROM JOHN ARNOLD, BRIAN, SAM STATES THAT CALPINE WOULD AGREE TO INCLUDE THE ERCOT REVISION.
HIS INTERNET IS DOWN, SO, OKAY.
HENCE THE REASON WE'RE NOT HEARING FROM HIM.
SO, JOHN, APPRECIATE YOU CONVEYING THAT.
UH, THAT BEING SAID, I, I THINK I'M HEARING SOME CONSENSUS HERE AS IT PERTAINS TO, UH, MOVING FORWARD WITH THE CALPINE COMMENTS, UH, WITH OUR TACT DESKTOP EDITS.
UM, I THINK WE'RE, I'M NOT HEARING ANY OBJECTIONS RIGHT NOW TO PLACING THAT ON THE COMBO BALLOT, SO WE MAY NOT NEED A SEPARATE BALLOT, COREY, BUT I'VE GOT A COMMENT FROM MARSHA HOOK.
WITH RESPECT TO THE EDIT, TO THE LOAD RESOURCE LANGUAGE, COULD YOU PULL THAT BACK UP PLEASE? THANK YOU.
SO THE GOAL HERE WAS TO OPERATE AT A HIGHER LEVEL THAN JUST THE PIPELINE AND THE PURPOSE OF DRAFTING IT SO BROADLY SO THAT ERCOT DOESN'T HAVE TO GET INTO THE NUANCES OF WHAT EQUIPMENT SUPPORTS THE PIPELINE THAT'S GOING TO BE USED AS A QUALIFYING PIPELINE UNDER THE FFF SS PROGRAM.
AND SO THAT, THAT WAS THE INTENT OF DRAFTING IT SO BROADLY.
AND SO, FOR EXAMPLE, BY VIRTUE OF THIS EDIT, THE QUESTION IS, IT REALLY SHOULD BE ANY EQUIPMENT THAT'S AT A MINIMUM, IT SHOULD BE ANY EQUIPMENT THAT SUPPORTS THAT PIPELINE, RIGHT? SO COM IT YEAH.
DOES THAT MAKE SENSE? DOES THAT MAKE SENSE? GOOD POINT, MARSHA.
AND, AND JUST FOR PEOPLE THAT HAVEN'T BEEN FOLLOWING ALONG, COULD YOU STATE YOUR RELATION ERCOT JUST FOR THE ARGUMENT? SORRY.
YES, I'M OUTSIDE COUNSEL FOR ERCOT.
YEAH, I THINK THAT MAKES SENSE.
I, I'D BE HAPPY TO TAKE A SUGGESTION FROM YOU TO AMEND THE MOTION AND I WOULD CHANGE THE ON TO WITH RESPECT TO ANY EQUIPMENT.
I THINK THAT AT A MINIMUM THAT GETS TO ADDRESSING THAT.
IT, IT'S NOT JUST THE PIPELINE ITSELF, WHICH MAY ACTUALLY NOT NECESSARILY HAVE ANY EQUIPMENT AS A, AS A PIPELINE ITSELF, BUT RATHER ALL THE COMPRESSION STATIONS AND EVERYTHING.
YEAH, MARSHA, APPRECIATE THE CLARIFICATION AND, AND WELCOME TO TACK.
ANY OTHER COMMENTS OR QUESTIONS ON THE DESKTOP
[01:45:01]
EDITS THAT WERE MADE HERE OR, OR ELSEWHERE? OKAY.SEEING NONE, IF THERE'S NO OBJECTIONS, WE'LL GO AHEAD AND MOVE THIS, UH, VERSION WITH THE CALPINE COMMENTS AND THE TAC DESKTOP EDITS, UH, TO THE COMBO BALLOT.
ANY OBJECTIONS TO DOING SO? OKAY, SEEING NONE, WE WILL GO AHEAD AND PUT THAT ON THE COMBO BALLOT.
UH, WE'LL LET COREY CATCH UP WITH US THERE.
I DID WANNA POINT OUT THAT 1169, DUE TO ITS URGENT STATUS AND DISCUSSIONS WITH THE PUC STAFF, UM, AS IF IT'S APPROVED TODAY BY TAC OF COURSE, AND AT THE JUNE 20TH BOARD MEETING, IT'LL BE CONSIDERED AT THE JUNE 29TH P C MEETING WITH AN EFFECTIVE DATE OF JULY 1ST, JUST SO EVERYONE'S AWARE.
I DID WANNA POINT OUT THAT WE ARE RUNNING ALMOST AN HOUR BEHIND SCHEDULE RIGHT NOW.
SO I THINK WHAT I'D LIKE TO DO IS SET A TIME CERTAIN FOR THIS, FOR A DECISION ON THIS PARTICULAR REVISION REQUEST.
SO I THINK, UH, WE'LL GIVE IT TO TILL 1140, AT WHICH POINT IN TIME WE'LL GO AHEAD AND CALL THE QUESTION, UH, IF THERE'S A MOTION ON THE TABLE AND MOVE FORWARD FROM THERE.
SO, UH, TRY TO STAY, TRY TO GET OURSELVES BACK ON, ON TRACK HERE.
SO 1177, LOOKING AT THAT PARTICULAR REVISION REQUEST, UH, WE'VE GOT SOME COMMENTS FROM THE CONSUMERS ON THIS ONE.
UM, AND SO I THINK IF WE WANT TO GO AHEAD AND TEE THOSE UP.
UM, SO I, FIRST OF ALL, I WANNA APOLOGIZE THAT THESE COMMENTS CAME OUT YESTERDAY.
WE ARE IN DISCUSSION WITH, UM, MARK PARTICIPANTS AND T MEMBERS LAST WEEK ABOUT WHAT TO FILE THAT, UH, MIGHT GAIN SUPPORT, UH, FROM, UH, OUR FELLOW T MEMBERS, UH, HERE AND DECIDED TO MAKE A, A, A CHANGE IN DIRECTION TO, TO LIMIT THE SCOPE OF OUR COMMENTS TO JUST THE ISSUES THAT WERE RAISED BY CONSTELLATION IN AN ATTEMPT TO HAVE THE SORT OF MIDDLE GROUND AND COMPROMISE THAT WE, WE SAW IN THE LAST FEW MINUTES ON THE FIRM FUEL SUPPLY DISCUSSIONS.
UM, SO, UH, WHAT OUR COMMENTS DO ARE A FEW THINGS.
UH, FIRST, GIVEN THAT THIS WAS DESCRIBED AS A TEMPORARY SOLUTION, WE PROPOSED A SUNSET DATE, UM, YEARS INTO THE FUTURE, UH, THAT WE THINK IS MORE THAN REASONABLE IN ORDER TO REPLACE THIS WITH A, A MORE PERMANENT SOLUTION.
UM, SECOND, WE, UM, CREATED A DEFINITION FOR, UM, THIS PARTICULAR USE OF THE ERCOT FUNCTIONALITY THAT WAS ENABLED BY THE EXCEPTIONAL FUEL COST PROCESS.
WE, WE, WE THINK THAT KIND OF ON ITS FACE, UM, THE ROUTINE AND ONGOING USE OF A FUEL CONTRACT IS, YOU KNOW, BY, YOU KNOW, THE PLAIN MEANING OF THE WORDS NOT AN EXCEPTIONAL FUEL COST PROCESS THING.
AND SO WHILE WE DON'T OPPOSE USING THE SYSTEM FUNCTIONALITY THAT WAS ENABLED BY EXCEPTIONAL FUEL COSTS, WE JUST WANT TO CALL IT SOMETHING DIFFERENT BECAUSE WE THINK THAT THE EXCEPTIONAL FUEL COST, UH, UM, APPROACH ON ITS OWN HAS INTERACTIONS WITH OTHER THINGS THAT WERE IN OUR N P R.
SO WE JUST WANT TO KIND TO DRAW, UH, DEFINITIONAL LINE AROUND THIS PARTICULAR USE OF THE SYSTEM FUNCTIONALITY.
UM, AND WE THINK THAT'S IMPORTANT, UM, BECAUSE, UH, THOSE OTHER ISSUES, WHILE WE'RE NOT BEING ADDRESSED TODAY, UM, DO LEAD TO DOUBLE PAYMENT IN SOME CASES FOR THE SAME INSTANCES.
AND I THINK THAT THE I M M WOULD BE ABLE TO SPEAK TO THAT DOUBLE PAYMENT ISSUE IF ANYBODY HAS ANY QUESTIONS.
UM, THIRD, WE ADD, UH, TWO GUARDRAILS.
UM, ONE GUARDRAIL WOULD BE TO DIRECT ERCOT TO WORK ON SOME STANDARDIZED CONTRACT TERMS, UM, THAT GIVE, UM, STAKEHOLDERS AND OR COPY THE CONFIDENCE THAT, UM, THESE, THESE NEW ALLOWANCES USING CONTRACTS DON'T M MOVE, UM, YOU KNOW, FIXED COSTS INTO A VARIABLE COSTS CONTRACTUALLY OR THAT, UM, YOU KNOW, SOME WAY, UM, TAKE ADVANTAGE OF THE OPPORTUNITY TO, TO EXCEED WHAT OTHERWISE WOULD BE, YOU KNOW, THE MITIGATED PRICE IN SOME, YOU KNOW, UNINTENDED AND UNFORESEEN WAY.
UM, ERCOT HAS, BASED ON THEIR PRIOR, UH, DISCUSSION, REVIEWED THE CONSTELLATION CONTRACTS AND FEEL CONFIDENT ABOUT THOSE CONTRACTS, BUT
[01:50:01]
WE DON'T KNOW WHAT CONTRACTS WILL COME UP IN THE FUTURE.AND SO WE JUST WANT TO HAVE A GUARDRAIL WHERE ERCOT CAN SUGGEST CONTRACTUAL LANGUAGE THAT ISN'T REQUIRED TO BE USED BY THE GENERATOR AND THE SUPPLIER, BUT IF IT IS, WOULD OPERATE, YOU KNOW, MUCH LIKE A VMP DOES, WHERE THERE'S AN ASSURANCE THAT THAT LANGUAGE WOULD WORK.
UM, AND THEN FINALLY, WE HAVE A SUGGESTION THAT, UM, ERCOT HAS THE DISCRETION TO DISALLOW A QSE OR RESOURCE FROM USING THIS FUNCTIONALITY IN THE EVENT THAT ERCOT BELIEVES THAT THEY'VE SUBMITTED SOMETHING THAT EXCEEDS THEIR COSTS.
THAT COULD BE AN IT ISSUE, A FAT FINGER, UM, OR IT COULD BE AN ISSUE OF, UM, YOU KNOW, POTENTIAL, UM, YOU KNOW, MALFEASANCE.
AND, UM, WE'D LIKE THE ABILITY TO HAVE A CIRCUIT BREAKER THERE IN CASE SOMETHING DOES HAPPEN, UH, THERE.
AND THAT CIRCUIT BREAKER WE THINK IS VERY REASONABLE IN THE LANGUAGE.
WE SUGGEST THAT FOLLOWING THE RESOLUTION OF THE ISSUES THAT LED TO THE DISALLOWANCE, THE QSE OR RESOURCE COULD, UH, BEGIN TO USE THE FUNCTIONALITY AGAIN.
UM, SO IN, IN EACH ONE OF THESE ISSUES, WE TRIED TO MAKE IT SO IT, UM, IMPROVED THE PROCESS WITHOUT, UM, YOU KNOW, CREATING MUCH RISK FOR THE GENERATOR USING THIS, YOU KNOW, SO JUST TO REITERATE, FOR THE CONTRACTUAL LANGUAGE, IT WOULD BE AN OPTION TO USE THAT, UM, THAT WOULD HOPEFULLY BE ENCOURAGED BECAUSE, YOU KNOW, IT'D BE ACCEPTED.
AND IN THIS CASE, IT JUST GIVES OUR, AND THE SECOND ONE TO GIVE OUR KIND OF CIRCUIT BREAKING.
SO, UM, WE THINK OUR COMMENTS ARE IMMINENTLY REASONABLE, UM, AND I WOULD MOVE TO APPROVE THEM, UM, AND REMIND YOU THAT THE I IMM RECOMMENDS, UH, THIS NPR R R IF IT IS APPROVED TO USE, UH, THE CONSUMER COMMENTS, I COULD ANSWER ANY QUESTIONS.
UH, DO I HAVE A SECOND ON MY MOTION? I'M SORRY.
DO YOU HAVE A SECOND? OKAY, WE'VE GOT A SECOND FOR MARK DREFUS, SO WE'VE GOT A MOTION AND A SECOND.
ANDY, WE'RE STILL NOT HEARING YOU YET.
WHILE WE'RE WAITING ON ANDY'S, UH, MICROPHONE CONNECTION TO, UH, START WORKING THERE, DO WE HAVE ANY OTHER COMMENTS OR QUESTIONS THAT ANYONE WANTS TO WRITE? HEY, CLIFF, THIS IS YOU WITH OUR, CAN YOU HEAR ME? YEAH, GO AHEAD, IENA.
UM, I, I'M GONNA LET, LET, UH, CONSTELLATION ADDRESS SOME OF THE ISSUES, UH, THAT, UH, CONSUMERS HAVE RAISED FROM ERKART PERSPECTIVE.
I JUST WANNA SAY THAT I APPRECIATE THE CONSUMER'S COMMENTS.
I BELIEVE WE, WE LIKE, UH, ADDITIONAL RAILS AROUND THE NPR UNFORTUNATELY, UH, SINCE IT WAS, IT WAS SUBMITTED YESTERDAY.
IF TECH IS GOING TO ADAPT THE CONSUMER'S CHANGES, WE NEED MORE TIME TO REVIEW.
THERE ARE SOME, UH, SOME CHANGES THAT WE NEED CLARIFICATION AND, UH, I'M NOT SURE, I'M NOT SURE IT'S A GOOD IDEA TO, UH, BASICALLY APPROVE THE, UH, NPR 1177 WITH CONSUMER'S COMMENTS AT THIS POINT UNTIL WE HAVE MORE TIME TO REVIEW AND DISCUSS MAYBE WITH ERIC AND OTHERS.
ENNO, WE'VE GOT, UH, BILL BARNES.
YEAH, I WOULDN'T, I WOULD, SIMILAR TO WHAT ENNO JUST SAID, JUST, UH, HAVEN'T HAD A TIME TO REVIEW THIS IN DETAIL.
IT COULD BE SUPPORTIVE, UM, BUT I'D SUPPORT A TA, UH, MOTION TO TABLE IF THAT DOESN'T CAUSE TOO MUCH CONCERN BY THE PARTIES THAT WERE, HAVE BEEN INVOLVED IN THIS.
SO WE DON'T HAVE A MOTION TO TABLE.
IS THAT WHAT YOU'RE MOVING AT THIS POINT IN TIME? OR ARE YOU HOLDING OFF? I, I'D LIKE TO, I'D LIKE TO HEAR FROM ERIC AND ANDY.
ALL RIGHT, SO WE'VE GOT ERIC AND THE QUEUE, AND THEN WE'LL TRY ANDY AGAIN.
[01:55:01]
WE, WE SUPPORT, UM, THE FUEL COSTS BEING INCLUDED IN THE PRICE.I THINK THAT'S PREFERABLE TO RUCK.
UM, AND, UM, WE WOULD'VE PREFERRED TO DO THIS ALL AT ONCE.
WE, WE WOULD NOT OPPOSE A MOTION TO TABLE.
AND, UM, YOU KNOW, GIVEN THAT, UM, TO STAY ON A TIMEFRAME HERE, UH, AND GIVEN THE IMPORTANCE OF THIS, PLUS I THINK THE NEED IN GENERAL FOR SOME GUARDRAILS, I'D, I'D BE HAPPY TO, UM, IMPOSE ON ALL OF YOU MY FELLOW TECH MEMBERS A SPECIAL CALL T MEETING IF, IF WE NEED TO, TO STAY ON THE SAME TIMEFRAME AND ALSO MEET CLIFF'S 40 DEADLINE
UH, ANDY? HEY, CAN Y'ALL HEAR ME NOW? WE SURE CAN.
HEY, THANK YOU SO MUCH, UH, FOR GIVING ME THE OPPORTUNITY TO SPEAK ON THIS.
UM, IN ADDRESSING SOME OF THE COMMENTS, UH, I, I THINK WE WOULD HAVE SOME HEARTBURN WITH TABLING THIS.
UH, AS I SIT AT WW G WMS AND AS WELL AS PR S, YOU KNOW, WE WERE, UM, MITIGATED AND WERE UN ECONOMICALLY DISPATCHED AND SUFFERED UNRECOVERABLE LOSSES.
IT STILL EXISTS TODAY THAT THE CURRENT PROTOCOLS DO NOT HAVE A COST RECOVERY MECHANISM FOR, UH, MITIGATION LOSSES.
UM, IN ADDRESSING ERIC'S COMMENTS, I THINK WE WOULD BE AMENABLE TO THE SUNSET.
AS WE LAID OUT IN OUR COMMENTS.
UH, WE BELIEVE THAT IT IS A TEMPORARY SOLUTION.
UH, WE'RE TRYING TO LEVERAGE, UH, ALONGSIDE, UH, WORK WITH ERCOT THE EXISTING EXCEPTIONAL FUEL COST PROCESS AND MAKE ENHANCEMENTS SO THAT WE CAN AT LEAST REFLECT OUR COSTS, UH, CONTRACTUAL COSTS IN OUR ENERGY OFFER CURVES.
AND SO, UM, WE, WE'VE PREPARED DESKTOP EDITS TO CAPTURE THE SUNSET LANGUAGE SO THAT IT, UM, MOTIVATES STAKEHOLDERS TO WORK ON A LONGER TERM SOLUTION ALONGSIDE ERCOT.
UM, AND, AND SPEAKING WITH SOME OF THESE GUARDRAILS, I THINK THE FIRST ONE HERE TO COMPLETE AN ATTESTATION, THERE'S ALREADY EXISTING ATTESTATION LANGUAGE IN THE EXCEPTIONAL FUEL COST PROCESS THAT REQUIRES THE RESOURCE TO ATTEST THAT THEIR EXCEPTIONAL FIELD CALL SUBMISSION IS ACCURATE.
AND IF THAT ISN'T TRUE, THEN THAT WOULD BE A VIOLATION OF THE PROTOCOL.
UM, THE SECOND PROPOSED CHANGE TO PROHIBIT A RESOURCE FROM USING THIS QUEASY.
UM, THE, THAT ALSO IS ADDRESSED IN OUR LANGUAGE BECAUSE WE'VE EMBEDDED PROTOCOL LANGUAGE THAT SPECIFICALLY STATES THAT ANY RESOURCE THAT LEVERAGES THIS PROCESS IN THEIR ENERGY OFFER CURVE HAS TO ONLY BE THEIR INCREMENTAL HEAT RATE TIMES THEIR INCREMENTAL FUEL COSTS AND O AND M.
AND SO BY DEFINITION, YOU CAN ONLY REFLECT YOUR COST IN YOUR ENERGY OFFER CURVE BY LEVERAGING THIS PROCESS.
UH, THE THIRD POINT HERE ABOUT THE DEFINITION CHANGES, UN UNFORTUNATELY, I MEAN, WHEN WE'RE INTRODUCING WHAT LOOKS TO BE PRETTY SUBSTANTIAL DEFINITION CHANGES, UH, WE, WE JUST DON'T FEEL COMFORTABLE THAT WE'VE FLUSHED OUT ALL OF THE OTHER INTENDED CONSEQUENCES ASSOCIATED WITH THAT DEFINITION CHANGE.
I CAN CERTAINLY APPRECIATE WHAT ERIC'S TRYING TO ACCOMPLISH THERE.
UM, BUT WHAT I WILL SAY IS, AT LEAST FOR OUR NPR R IT'S BEEN VETTED BY ERCOT.
UM, THE IMM, UH, REQUIRES IN ORDER FOR THAT ISSUE TO OCCUR, IT REQUIRES THE RESOURCE TO ACTUALLY BREAK AND VIOLATE PROTOCOLS, WHICH IS A RISK IN AND OF ITSELF.
UM, WE'D CERTAINLY BE OPEN TO, UM, ANY PROPOSALS THAT MAY CLOSE THAT GAP.
BUT WHAT I'LL SAY IS WHAT EXISTS TODAY IS A PROCESS THAT WILL NOT ALLOW A RESOURCE TO RECOVER ITS COSTS.
UM, AND SO WE WOULD LOVE TO BE ABLE TO PUT A BANDAID ON THAT.
WE, WE HAVE A SUNSET PROVISION.
UM, WOULD LOVE TO WORK WITH STAKEHOLDERS ON LONG-TERM SOLUTIONS, WHICH ON OUR LIST INCLUDES COST RECOVERY FOR MITIGATION, KNOWING THAT THOSE ARE GOING TO BE SYSTEM CHANGES AND SYSTEM IMPACTS, UM, BUT WOULD LOVE TO WORK WITH STAKEHOLDERS ON WORKING ON A LONGER-TERM SOLUTION, BUT ALLOWING FOR THIS SHORT-TERM TEMPORARY FIX SO THAT WE CAN AT LEAST START TO REFLECT OUR COSTS AND, AND NOT HAVE THIS UNINTENDED RISK, UH, THAT CURRENTLY EXISTS IN THE PROTOCOLS.
ERIC? SO, UH, I, I APPRECIATE HEARING FROM ENO ABOUT WANTING MORE TIME TO REVIEW THIS, CONSIDER THE IMPACTS.
UM, AND, UM, THIS IS ON AN URGENT TIMELINE, WHICH HAS LED US TO HAVE A SHORTENED TIME TO COMMENT AND, UH, SEEK NEGOTIATION WITH OTHER STAKEHOLDERS.
AND THAT'S PART OF THE CONSEQUENCES OF, YOU KNOW, THIS TIMELINE.
[02:00:01]
UM, WE, UM, WOULD SUPPORT A MOTION TO TABLE, TO A SPECIAL CALL TACT MEETING TO KEEP THIS ON THE SAME TIMELINE, TO GET TO THE SAME RESOLUTION THAT ANDY IS REQUESTING.UM, I, I KNOW THAT'S AN IMPOSITION ON T MEMBERS, BUT I, I HOPE THAT THE CONSUMER REQUEST FOR, UM, THESE GUARDRAILS, UM, AND THE IM SUPPORTED THEM IS ENOUGH TO JUSTIFY THAT IMPOSITION ON, ON TACT FOR A SPECIAL CALL MEETING.
UM, AND SO, UM, I, I WOULD LOVE TO HEAR A DISCUSSION OF THAT.
AND, UH, BILL, IF YOU WOULD MAKE THAT YOUR MOTION, UM, I'D BE HAPPY TO SECOND YOUR MOTION TO TABLE OR SOMEONE ELSE.
I SEE BILL SAYS HE'S GOOD WITH THAT.
OKAY, SO WE'VE GOT BILL, THAT'S A MOTION TO TABLE, IS THAT CORRECT? YEAH, WITH THE MEETING WITH ADDITIONAL CONSTRUCTION.
JUST TO CLARIFY, OKAY, WE'VE GOT ENO NEXT, UH, YES.
UH, DOES IT HELP IF, UH, IF I GO THROUGH SOME OF THE, UH, CONCERNS THAT WE HAVE WITH, UH, ERIC'S COMMENTS OR NOT AT THIS TIME? YEAH, GO AHEAD.
YOU KNOW, IT'D BE GOOD, IT'D BE GOOD TO GO AHEAD AND PUT THOSE OUT THERE.
SO WE'RE LOOKING FOR POTENTIAL DATES ANYWAY, SO SURE, SURE.
SO THERE'S, UH, COUPLE THINGS, ERIC OR CONSUMERS ADD IT, THE FUEL CONTRACT COSTS, AND IN THE DEFINITION, AND IN THERE IT SAYS FUEL PRICE, THAT INCLUDES FORWARD FUEL CONTRACT COST.
THIS IS THE FIRST TIME WE, WE HEAR OF THE WORD FORWARD FUEL CONTRACT COST.
WE'RE NOT REALLY SURE WHAT THAT MEANS.
AND AS YOU CAN IMAGINE IT, WHEN PEOPLE SUBMIT COSTS, WE NEED TO BE A HUNDRED PERCENT SURE WE UNDERSTAND WHAT THAT MEANS, THE DEFINITION.
SO I, WE NEED MORE DISCUSSION ON THAT.
THEN IF YOU GO, IF YOU MOVE DOWN FURTHER, FURTHER, THE, UM, UH, AND I KNOW ERIC AND I DISCUSSED THIS IN THE PAST, AND I WAS HOPING THAT WE WILL HAVE A DISCUSSION WITH NPR 1172 TO, UM, AT, AT MARKET MEETINGS TO DISCUSS ROUTINE COSTS.
IN MY VIEW, THE COST THAT GENERATORS SUBMIT THROUGH, UH, EXCEPTIONAL FIELD COSTS ARE ROUTINE COSTS, BUT MAYBE ERIC HAS A DIFFERENT DEFINITION OF OR UNDERSTANDING OF WHERE ROUTINE COSTS ARE.
SO WE NEED MORE CLARIFICATION ON THAT.
UH, AND THEN, UH, THERE'S ANOTHER IN, IN, IN, ACTUALLY IN PARAGRAPH K, THAT'S WHERE I WAS TALKING ABOUT ROUTINE COSTS.
AND THEN THERE'S ALSO THE, UM, THE LAST, ON THE LAST SENTENCE, IT SAYS AN ACTUAL ATTESTATION, NO, UH, SAME PARAGRAPH.
K AN ACTUAL ATTESTATION OF FOR FUEL CONTRACT COSTS MUST STATE THAT THE COSTS ARE KNOWN AND ACTUAL FUEL COSTS.
THIS IS, UH, WE'RE NOT SURE WHAT ACTUAL FUEL COSTS ARE BECAUSE HOW WE DEFINE EXCEPTIONAL FUEL COSTS ARE EXPECTED COSTS, EXPECTED INCREMENTAL COSTS.
SO WHAT IS THE DIFFERENCE BETWEEN EXPECTED INCREMENTAL COSTS AND ACTUAL FIELD COSTS? I THINK THE AUTHOR OF THAT CHANGE PROBABLY HAD THAT IN MIND, BUT IS NOT CLEAR IN THE, IN THE CHANGES.
BUT, UH, AND THEN WE'RE TALKING ABOUT THE, UM, UH, THIS CONTRACT THAT CONSUMERS WANT ERIKA TO CREATE.
I KIND OF AGREE WITH ERIC THAT IT PROBABLY MAKES SENSE TO DEVELOP SOME GUIDELINES, BUT I THINK WE NEED ADDITIONAL CLARIFICATION EXACTLY HOW ERIKA SHOULD CREATE OR CAN CREATE SUCH A CONTRACT.
AND I, I'M THINKING THE, WHAT ERIC HAS IN MIND IS, IS BASICALLY SOME GUIDELINES ON WHAT COSTS CAN BE INCLUDED FOR THE PURPOSE OF SUBMITTING EXCEPTION FIELD COSTS AS OPPOSED TO CHANGING THE CONTRACT, THE SUPPLY CONTRACT FOR A GENERATOR, WHICH I DON'T THINK THAT'S THE CASE, IS WHAT COSTS CAN A GENERATOR INCLUDE TO ENSURE THAT WE EXCLUDE, UH, FOR EXAMPLE, FIXED COSTS.
THAT IN ITSELF, ALL THOSE CHANGES THAT I WENT THROUGH, UH, IS GONNA REQUIRE US TO, UM, TO HAVE MORE DISCUSSION.
AND, UH, IF TECH IS GOING TO MOVE FORWARD WITH THE APPROVAL OF 1177 WITH THE CONSUMER COMMENTS, THEN WE, WE NEED, WE NEED MORE TIME.
ON THE OTHER HAND, IF YOU ARE GONNA APPROVE OR TRY TO VOTE ON THE CONSTELLATION NPR, BESIDES THE, UM, WE DO HAVE ADDITIONAL CHANGES THAT MAY HELP PUT SOME GUARDRAILS, AND WE HAVE SOME TABLETOP EDITS THAT BASICALLY WHEN, UM, RIGHT NOW UNDER THE NPR CONSUMER OR
[02:05:01]
QSCS MUST SUBMIT TO OUR ACCOUNT, THEIR CONTRACT BEF WITHIN 10, 10 DAYS BEFORE SUBMITTING EXCEPTIONAL FUEL COSTS.THE CHANGES THAT WE ARE PROPOSING IS TO, UH, GIVE THE ERIKA THE AUTHORITY TO REJECT SOME OF THE COST COMPONENTS THAT ARE INCLUDED IN THE CO IN THE, UH, IN THE FIELD CONTRACT.
AND TO LET THE, THAT'S THE, THAT'S THE PARAGRAPH, AND TO LET THE, UH, THE QSC KNOWN THAT THEY SHOULD NOT INCLUDE SPECIFIC COSTS, FOR EXAMPLE, SOME FIXED COSTS OR COSTS THAT WE DEEM TO BE NOT ACCEPTABLE FOR THIS PURPOSE.
WE BELIEVE THAT THAT, UH, SECOND HALF OF PARAGRAPH O WILL PROVIDE SOME ADDITIONAL, UH, GUARDRAILS IF YOU ARE GOING TO APPROVE THE CONSTELLATION.
ENNO, WE'VE GOT MARK FOLLOWED BY RICHARD, FOLLOWED BY ANDY.
UH, CAN YOU HEAR ME CLIFF? SURE CAN MARK.
UM, SO AT WMS, THERE HAVE BEEN A, A NUMBER OF ISSUES THAT HAVE COME UP IN THE LAST MONTHS ABOUT DIFFERENT COMPONENTS OF ELIGIBLE FUEL COST, COST RECOVERY, ET CETERA.
AND SO CONSUMERS HAVE BEEN ASKING IN WMS FOR CONSIDERATION OF THE DEVELOPMENT OF A COMPREHENSIVE APPROACH.
THAT'S PART OF WHAT UNDERLIES OUR SUBMISSION OF NPR R 1172.
THAT IS, IS NOT ON AN URGENT TIMELINE.
SO I THINK ONE THING THAT COULD BE HELPFUL OUT OF THIS DISCUSSION IS DIRECTION FROM TAC TO WMS TO LOOK AT THIS AS A HOLISTIC ISSUE AND CONSIDER COMING BACK WITH A HOLISTIC SOLUTION, UM, THAT, THAT'S OUTSIDE OF THIS NPR R WHICH I, I GENERALLY SUPPORT.
UM, I, I THINK IS REALLY IMPORTANT THAT WE GET THIS COST RECOVERY ISSUE, RIGHT? BECAUSE WE WANT THESE RESOURCES THAT ARE BEING DEPLOYED TO FULLY RECOVER THEIR COSTS.
SO THEY'LL OPERATE IN THE MARKET AND THEY'LL CONTINUE TO BE IN SENTENCED FOR INVESTMENT.
CONSUMERS NEED THAT, BUT WE ALSO WANNA MAKE SURE THAT, UH, THE COSTS ARE CORRECT AND THAT THERE'S NO OTHER COST RECOVERY LEAKING IN.
SO IF YOU WOULD CONSIDER SOME DIRECTION TO WMS, I THINK THAT WOULD BE VERY HELPFUL IN THIS ISSUE.
I THINK THAT'S A FAIR ASK MARK.
SO ERIC, I THINK ERIC'S ON THE LINE, SO ERIC, IF Y'ALL WOULD TAKE THAT AS A, AS AN ACTION ITEM FROM TACK, THAT WOULD BE GREAT.
SO CLIFF, UM, I, I'M NOT, I'M NOT QUITE SURE WHAT TO DO HERE.
I WAS, I WAS REALLY, UH, PREPARED AND ENO'S COMMENTS, YOU KNOW, ONLY MADE ME FEEL STRONGER THAT, YOU KNOW, WE MIGHT TAKE NPR R UH, 1177 AND PERHAPS PUT A SUNSET DATE ON IT AND MOVE IT ON FORWARD ON THE URGENT TIMELINE RECOMMENDED BY PRS.
AND, AND NOW WE'VE GONE IN AN EFFECTIVELY ADDED A CONSIDERABLE AMOUNT OF ADDITIONAL LANGUAGE, UH, SOME OF WHICH ARE, DOESN'T EVEN KNOW WHAT THEY MEAN, WHAT MEANS, AND WE'RE STAGING UP, UH, UH, SOME OTHER DISCUSSIONS AND A SPECIAL MEETING.
AND, UM, IN MY MIND, WHAT I WISH WE COULD GET TO IS THE SITUATION WHERE WE MOVE 1177 ON FORWARD TODAY.
I REALIZE THAT MAY TAKE SOME TANKING AND SOME VOTES, UH, GETTING EVEN MORE DISRUPTIVE THAN THIS DISCUSSION ALREADY IS.
AND I THINK MARK BROUGHT UP, UH, NPR R 1172, WHICH IS DEALING WITH THIS SAME ISSUE, AND WE JUST SIMPLY LET 1172 RUN ITS COURSE AND IT WILL BE BACK HERE, UH, FOR US TO ADDRESS IN DUE TIME.
UM, 1172 DIDN'T GET URGENT STATUS, AND I DON'T KNOW WHY, BUT IT'S NOT HERE AND WE'RE, WE'RE TRYING TO SEEM, FEELS LIKE WE'RE TRYING TO SHOEHORN IT IN, UH, WHEN KS WANTED TO TALK ABOUT IT FURTHER.
SO, UM, I'M PROBABLY, I'M STILL STRUGGLING WITH WHETHER I'M GONNA VOTE AGAINST THE, THE MOTION THAT WE HAVE HERE OR, OR TABLING THIS ISSUE, UH, BECAUSE AS YOU CAN TELL, WHAT I REALLY WANT, UH, IS, IS BEING, UH, KINDA LOG JAMMED AT THIS STAGE.
[02:10:01]
SO, UM, I KNOW WE'VE GOT A FEW FOLKS IN THE QED SET A TIME CERTAIN AT 1140, UM, AT THE CHAIR'S DISCRETION.I'D LIKE TO GO AHEAD AND EXTEND THAT TO 1150 AT THIS POINT, AND THEN WE'LL CUT OFF CONVERSATION.
SO I'VE GOT ANDY FOLLOWED BY IAN.
GI, GIVEN THE THE SHORT TIME, I'LL, I'LL, I'LL TRY AND BE BRIEF.
UM, GIVEN WHERE ENO HAS ADDED THAT ADDITIONAL LANGUAGE, UM, I BELIEVE THAT SHOULD MITIGATE THE CONCERNS THAT THE IMM HAS.
UH, AGAIN, THE I M DOESN'T OPPOSE THIS NPR R THE ORIGINAL CONSOLATION NPR.
UM, AND SO WHAT I WOULD LIKE AND WHAT CONSOLATION CAN SUPPORT IS OUR NPR R WITH THE SUNSET LANGUAGE THAT THE CONSUMERS HAD PROVIDED, THE JANUARY 1ST, 2027, AND THE DESKTOP EDITS THAT ERCOT PROVIDED.
THAT SHOULD HELP WITH THE MITIGATION CONCERNS, AND WE WOULD LOVE TO SUPPORT THAT AND MOVE IT FORWARD.
I, I WILL NOTE THAT EVEN THAT LANGUAGE DOESN'T PROVIDE FOR A COST RECOVERY MECHANISM.
IF ERCOT DECIDES TO REMOVE THOSE COSTS FROM GENERATORS AND IT ENDS UP BEING A TRUE COST, UH, WE WOULD NOT BE ABLE TO RECOVER THAT.
I THINK WE'RE WILLING TO, UM, BE EXPOSED TO THAT RISK AT THIS TIME BECAUSE WE KNOW THAT THIS IS A TEMPORARY SOLUTION.
AND SO THAT MOTIVATES ALL STAKEHOLDERS TO, TO GET TO THE NEGOTIATING TABLE AND WORK ON A LONGER TERM SOLUTION.
AND, AND TO RICHARD'S POINT, I THINK 1172 AND SOME OF THOSE OTHER, UM, ISSUES THAT ERIC BROUGHT UP CAN ALL BE TALKED ABOUT AT, AT W M S IN A MORE HOLISTIC FASHION.
BUT, UM, WOULD LOVE TO, UH, HAVE A PROCESS FOR RESOURCES TO WRAP, REFLECT THEIR COSTS, UM, TODAY, AND THAT HASN'T EXISTED FOR THE IN CURRENT PROTOCOLS TODAY.
WE'VE GOT, UH, LOST TRACK OF WHERE WE'RE HERE.
SO WE'VE GOT ANDY FOLLOWED BY IAN, UH, AND THEN ERIC.
UM, ERIC, I AM GUESSING THAT YOU WOULD NOT TAKE THE SUGGESTED MOTION THAT ANDY JUST MADE AS FRIENDLY.
UM, I, I ACTUALLY WANNA TALK ABOUT IT.
I, I MIGHT, UM, I, I THINK, YOU KNOW, IS ATTEMPTING TO GET TO, OR NOT ATTEMPTING, BUT IS GETTING TO THE ESSENCE OF OUR, UM, SECOND GUARDRAIL.
AND WHILE I THINK THAT THERE'S, UM, ROOM FOR IMPROVEMENT HERE, UM, I, I DO THINK THAT HAVING A GUARDRAIL HERE IS IMPORTANT.
I'D LIKE SOME TIME TO CONFER WITH, UM, MY SEGMENT THOUGH.
UM, BUT IT, IT SEEMS LIKE WE'RE ON A POSSIBLE PATH HERE.
I, IN REGARDS TO THE POINT FROM RICHARD, UM, WHILE OUR INTENTION INITIALLY WAS TO BRING 1172 INTO THIS DISCUSSION, WE CHOSE NOT TO DO THAT.
AND, AND THE COMMENTS THAT ARE BEFORE US TODAY ARE SOLELY IN RESPONSE TO THE CANCELLATION AND P R R.
UM, SO WE, WE DO THINK WE'VE KEPT THOSE ISSUES SEPARATED, ALTHOUGH WE CONTINUE TO BELIEVE THEY'RE VERY MUCH RELATED.
UM, I, SO I'M, I'M OPEN TO THAT THIS YEAR, AND I, I JUST MIGHT WANT SOME TIME TO CONFER WITH MY SEGMENT.
UM, MR. CHAIR, IF IT PLEASES RICHARD ROSS, I WOULD, UM, ASK THAT ERIC CONSIDER THAT A FRIENDLY EMOTION, AND IF HE CONSIDERS IT HOSTILE, I WILL MAKE A MOTION TO AMEND THE MOTION WITH ANDY'S MOTION.
JUST FROM A ROBERTS RULES OF ORDER PERSPECTIVE, WE'VE GOT A MOTION TO TABLE AS THE MOST RECENT MOTION AT THIS POINT.
SO WE WOULD HAVE TO GET THE MOTION TO TABLE TO BE, UH, PULLED BEFORE, BEFORE WE COULD, UH, LOOK TO AMEND THE, THE ORIGINAL MOTION.
CAN WE HAVE CLARITY ON WHAT THE ACTUAL MOTION IS THAT WE ARE CONSIDERING IN REPLACEMENT OF THE MOTION TO TABLE? SO, ANDY, CAN YOU REPEAT, UM, YOUR CONCEPT? YEAH, THANKS BILL.
AND SO IN ADDITION TO, YOU KNOW, ALL OF THE PROPOSED CHANGES AND, AND CONSOLATION, UM, COMMENTS WHICH WE WENT OVER AT P R S AND W M S, WHAT WE'RE PROPOSING HERE IS TO INCLUDE THE SUNSET DATE THAT THE CONSUMER COMMENTS HAVE, WHICH IS AT JAN FIRST 20, 27, AND ALSO INCLUDE THE LANGUAGE BEFORE YOU IN COLUMN O WHERE, UH, RESOURCES SUBMITTING EXCEPTIONAL FUEL COSTS BASED ON PROJECTED INCREMENTAL FUEL PRICES ON THE CONTRACT.
UM, WELL ACTUALLY, CAN YOU SCROLL TO, UH, ENO'S LANGUAGE PLEASE.
SO, UM, WHAT WE'RE PROPOSING IS THIS
[02:15:01]
DESKTOP EDIT THAT ENO PROPOSED, WHICH IS ERCOT MAY AT ANY TIME NOTIFIED EASI OF ANY COST IDENTIFIED IN THE CONTRACT THAT IS INELIGIBLE FOR INCLUSION IN THE EXCEPTIONAL FUEL COST SUBMISSION.AND SO THE WAY THIS IS GONNA WORK IS 10 DAYS, 10 BUSINESS DAYS PRIOR TO A RESOURCE BEING ALLOWED TO USE THIS PROCESS.
ERCOT WILL HAVE THE CUAS CONTRACTS THAT GIVES ERCOT THE, UM, INFORMATION THEY NEED TO BE ABLE TO DETERMINE WHAT THE TRUE AND ACTUAL COSTS ARE AND WHAT'S A REASONABLE COST.
THIS ADDITIONAL LANGUAGE HERE WILL ALLOW ERCOT, UM, THAT ON THE DAY THAT THE QUEASY WILL MAKE THEIR E FFC SUBMISSION, IT'S A SINGLE POINT.
LET'S SAY, FOR EXAMPLE, IF IT'S A HUNDRED DOLLARS, ERCOT REALLY HAS AN, A GOOD UNDERSTANDING OF WHAT THE RANGE OF VALUE SHOULD BE.
AND SO IF ERCOT BELIEVES THAT TO BE OUTSIDE OF THE BOUNDS, THIS PROVISION HERE WILL ALLOW ERCOT TO CONTACT THE QUEASY AND INFORM THEM TO REMOVE THO THE INCLUSION OF THOSE COSTS IN THEIR ENERGY OFFER CURVES.
OTHERWISE, THAT'D BE A PROTOCOL VIOLATION.
AND I SAW EMAIL JUMP IN THE QUEUE.
I DON'T KNOW IF YOU WANTED TO ADD TO THAT CONCEPT.
UH, ANDY, IT'S NOT JUST THE TIME, THE FIRST TIME, UH, A QA SYSTEM IS THE CONTRACT, BUT ANYTIME AFTERWARDS AS WELL.
IN OTHER WORDS, LET'S SUPPOSE YOU SUBMIT A CONTRACT AND WE SAY, GREAT, ALL THE COSTS IN THE CONTRACT CAN BE INCLUDED.
BUT A MONTH LATER WE REALIZED, HEY, THERE'S, UH, THIS IS A COST WE HAVE, WE DIDN'T REALIZE SHOULD BE EXCLUDED.
AT THAT POINT, WE'LL NOTIFY YOU AND GOING FORWARD, YOU NEED TO EXCLUDE THAT COST AS WELL.
SO IT'S, IT'S JUST NOT, IT'S NOT JUST THE FIRST TIME, BUT ANYTIME WHILE YOU'RE SUBMITTING EXCEPTION OF FUEL COSTS, WE MAY, WE MAY CHOOSE BASED ON ADDITIONAL INFORMATION TO EXCLUDE ADDITIONAL COSTS THAT WE HAVE NOT SEEN IN THE PAST.
AND JUST TO BE CLEAR, THIS ONLY IMPACTS ENTITIES THAT ARE USING THIS EXCEPTIONAL FUEL COST PROCESS, RIGHT? PRECISELY.
UM, SO ENO, YOU EXPRESSED CONCERNS EARLIER THAT YOU CAN'T IMPLEMENT, YOU'RE NOT SURE YOU CAN IMPLEMENT PART OF WHAT'S PROPOSED HERE.
NOW, DO YOU FEEL COMFORTABLE THAT YOU CAN WITH THIS WE ARE COMFORTABLE.
WELL, WE ARE COM WE, WE, WE BELIEVE WE CAN IMPLEMENT, WE KNOW WE CAN IMPLEMENT THE NPR AS PROPOSED BY CONSTELLATION WITH THE, WITH THE COMMENTS, THE DESKTOP COMMENTS WE ADD IN RIGHT HERE? YES.
WE, UH, WE'RE NOT SURE WE CAN IMPLEMENT THE, UH, CONSUMERS CHANGES AT THIS TIME, BUT YOU'RE AMENDING IT TO, TO MAKE IT TO A, A, A PLACE WHERE YOU ARE COMFORTABLE WITH IT.
PART OF IT BECAUSE THEY, UH, BECAUSE ERIC COMMONS HAS OTHER CHANGES THAT WE NEED ADDITIONAL DISCUSSION.
SO WE STILL, SO IT'S ONE SET OF, THIS IS ONE SET OF GUARDRAILS, UH, BUILT THE CONSUMERS ADDED MORE GUARDRAILS THAT WE, WE LOVE TO DISCUSS WITH THEM, BUT WE NEED MORE TIME.
OKAY, SO WE STILL HAVE A PROBLEM THEN WE CAN'T MOVE THIS FORWARD.
CAUSE THERE'S PARTS THAT YOU ERCOT DOESN'T BELIEVE THEY CAN IMPLEMENT.
A, AGAIN, THE CONSUMER'S CHANGES ARE ALSO, I BELIEVE MO SOME OF THEM, IF NOT ALL OF 'EM, ARE ALSO ADDRESSED WITH NPR 1172.
SO WHETHER YOU TABLE THIS NPR AND ADDRESS TO ADDRESS ALL THE CONSUMER CHANGES, OR DO WE MAKE THE CHANGES WITH 1172? I JUST DON'T, I'M NOT SURE WHAT'S THE BEST OPTION.
OKAY, WELL, WHERE WE'RE AT, WE, WE SUPPORT THE SUNSET DATE AND GUARDRAILS ON THIS PROCESS PRIMARILY BECAUSE I JUST DON'T LIKE THIS CONCEPT.
I DON'T, I DON'T LIKE THIS MECHANISM.
IT'S, AND IT'S NOT ANYTHING THAT ANDY IS INTRODUCING, BUT THE FACT THAT, THAT YOU COULD SUBMIT SOMETHING TO ERCOT AND IMPACT THE PRICES FOR THE ENTIRE MARKET, AND THERE'S SOME DELAY IN VERIFYING WHETHER THAT'S LEGITIMATE.
I, I GET WHY WE WANT TO HAVE THE CRISIS REFLECT THE MOST RECENT AND ACCURATE COSTS.
I AGREE WITH THAT CONCEPT THAT THIS MECHANISM MAKES ME NERVOUS.
SO I SUPPORT THE GUARDRAILS IN THE, IN THE SUNSET DATE.
I'M WILLING TO WITHDRAW THE MOTION TO TABLE IF WE CAN FIND A COMPROMISE ON LANGUAGE THAT WE CAN MOVE FORWARD IN A WAY THAT ERCOT IS COMFORTABLE WITH.
AND I'M NOT HEARING THAT RIGHT NOW.
LET ME POINT THIS IN THE SAME DIRECTION AS, I DUNNO THAT WE'RE QUITE FULLY THIS JUST YET, UM, ON TERMS OF POSSIBLE DATES.
AND WE'VE GOT JUNE 5TH, JUNE 7TH AFTER WMS AND JUNE 8TH AFTER R O S AS POTENTIAL DATES OR WHATEVER.
SO MY SUGGESTION WOULD BE THAT WE TABLE THIS AT THIS POINT, LET THE PARTIES CONTINUE TO WORK ON IT, AND THEN WE HOLD A VIRTUAL T MEETING, UM, FOLLOW ON ONE OF THOSE THREE DATES THAT HAVE BEEN LAID OUT,
[02:20:01]
UM, AND THEN TAKE THIS UP AND HOPEFULLY WE CAN COME TO A RESOLUTION.JUST NOT SURE WE GET THERE TODAY AT THIS POINT.
SO, UM, I DO HAVE A FEW IN THE QUEUE.
LET ME GO AHEAD AND ROLL THROUGH THOSE REAL QUICK.
AND, AND, UH, STARTING WITH COREY, FOLLOWED BY ANDY.
AND THEN ERIC, I JUST WANTED TO CLARIFY FOR FOLKS FIRST, THANK YOU CLIFF, FOR PERFECTLY LAYING OUT PROCEDURALLY WHERE WE ARE, THAT THE MOTION TO TABLE IS THERE.
BUT BILL HAD POSED WHAT IS SANDY TALKING ABOUT IN TERMS OF WHAT WOULD A MOTION LOOK LIKE? I JUST WANTED TO PUT THAT ON SCREEN FOR FOLKS SO THEY COULD SEE.
WHAT WE'D BE TALKING ABOUT WOULD BE IF THE MOTION TO TABLE'S WITHDRAWN AND ERIC'S MOTION FOR THE CONSUMER COMMENTS WEREN'T THERE, YOU'D BE TALKING ABOUT THE PRS REPORT, WHICH IS JUST THE LANGUAGE FROM CONSTELLATION AND PRS AS REVISED BY TACT TO LIFT IN ENO'S COMMENTS TO THAT ONE PARAGRAPH, THE NO IMPACT IA, AND THEN A EFFECTIVE DATE OF RIGHT AFTER PUC APPROVAL TO TAKE EFFECT IMMEDIATELY.
AND THEN THE SUNSET DATE THAT FOLKS WOULD SAY, YOU KNOW, TAKE SEVEN, TAKE 1177 OUT EFFECTIVE JANUARY 1ST, 2027.
SO JUST SO FOLKS ARE TRYING TO WRAP THEIR HEAD AROUND, WHAT WOULD YOU BE VOTING ON, IF NOT FOR THE MOTION THE TABLE AND ERIC'S MOTION FOR THE CONSUMER COMMENTS? I JUST WANTED FOLKS TO KNOW WHAT THAT WOULD LOOK LIKE, BUT CLOSE.
WE'RE LOOKING AT MOTION TO TAPE RIGHT NOW.
ANDY? YEAH, THANK YOU, UM, COREY FOR LAYING THAT OUT.
BILL, I I WANTED TO ADD TO CLARITY AROUND THAT, UH, WHAT COREY LAID OUT IS EXACTLY WHAT, YOU KNOW, CONSTELLATION WOULD SUPPORT.
IT'S THE INCLUSION, IT'S THE PRS APPROVED VERSION WITH THE SUNSET DATE THAT THE CONSUMERS REQUESTED WITH ENO AND ERCOT GUARDRAIL LANGUAGE HERE THAT WOULD MITIGATE THE CONCERNS THAT THE I M M HAS PUT OUT.
I THINK YOU'RE ABSOLUTELY RIGHT.
UM, BILL, THERE, THERE CERTAINLY IS A CONCERN THAT, YOU KNOW, IF A RESOURCE ENTITY POTENTIALLY FAT FINGER SOMETHING THAT THEY COULD, YOU KNOW, IMPACT THE PRICES, THIS ERCOT GUARDRAIL SHOULD ALLEVIATE THAT CONCERN BECAUSE BECAUSE ERCOT UNDERSTANDS THE CONTRACTUAL COST OF ENTITIES THAT ARE LOOKING TO LEVERAGE THIS PROCESS, THEY SHOULD HAVE THE ABILITY TO FLAG ANY OF THOSE, UM, OUT OF WHAT WE'LL CALL OUT OF RANGE, UH, COSTS ASSOCIATED WITH THOSE CONTRACTS.
UM, WE, WE'D LOVE TO SUPPORT THIS MOVING FORWARD AND CLOSE THAT GAP.
I THINK THIS DOES PROVIDE THE PROTECTIONS AND GUARDRAILS THAT EVEN THE CONSUMER COMMENTS WE'RE LOOKING TO ACHIEVE BY GIVING ERCOT THE, THE DISCRETION TO BE ABLE TO IDENTIFY IN REAL TIME WHAT COSTS SHOULD AND SHOULD NOT BE INCLUDED IN ENERGY OFFER CURVES.
ALL RIGHT, ERIC, AND THEN ENNO AND THEN I'D LIKE TO GO AHEAD AND CURTAIL DISCUSSION AT THIS POINT.
UH, I THINK WE'RE VERY CLOSE TO ACCEPTING ERCOT S GUARDRAIL HERE.
UM, WE WOULD APPRECIATE SOME TIME TO, TO, TO LOOK AT IT SOME MORE IF TACK IS WILLING TO LET US HAVE A SPECIAL CALL TAC MEETING.
UM, ONE OF THE THINGS WE'D LIKE TO LOOK AT IN PARTICULAR IS WHETHER OR NOT WE CAN DEFINE THIS AS SOMETHING DIFFERENT THAN THE EXCEPTIONAL FUEL COST PROCESS.
UM, AND STILL USE THE EXACT SAME FUNCTIONALITY, UH, BUT CALL IT SOMETHING DIFFERENT, UM, BECAUSE IT IS DIFFERENT THAN WHAT THE EXCEPTIONAL FUEL COST PROCESS INITIALLY WAS CONCEIVED AS.
UH, THAT WOULDN'T CHANGE THE OUTCOME OF HOW THIS WOULD WORK, BUT IT WOULD, UM, JUST MAKE SURE THE PROTOCOLS WERE VERY CLEAR ABOUT WHAT IT IS AND WHAT IT ISN'T.
UM, SO WE'D LIKE TO HAVE SUPPORT FOR THE MOTION TO TABLE FOR A SPECIAL CALL T MEETING IF, IF TAC IS WILLING TO ALLOW THAT TO HAPPEN AND JUST PREVIEW AND INDICATE THAT WE THINK THAT WE ARE VERY CLOSE TO AGREEING WITH ER ACCOUNT'S PROPOSAL HERE.
ERIC, DO YOU HAVE ANYTHING TO ADD? WELL, I I JUST WANNA SAY THAT, UH, WE HAVE A LOT OF EXPERIENCE, UH, WITH EXCEPTIONAL FUEL COSTS OVER THE LAST SEVERAL YEARS.
AND ONE THING THAT WE LEARNED IS THAT MOST LIKELY THERE WILL BE MORE CHANGES TO THE PROTOCOLS.
UH, WE, WE HAVE NOT SEEN ALL THE FUEL CONTRACTS AND THERE MAY BE FUEL CONTRACTS OUT THERE THAT WILL REQUIRE SPECIAL CONSIDERATIONS.
SO ASSUMING YOU APPROVE THE CONSTELLATIONS NPR, THERE MAY BE ADDITIONAL CHANGES IN THE FUTURE COMING FROM ERCOT TO CLARIFY OR, OR MAKE CHANGES TO ENSURE THAT WE CAN IMPLEMENT, UM, AS AS EXPECTED.
SO I, I'M NOT GONNA, I'M NOT GONNA LET ASK YOU OR TO TABLE OR NOT TABLE IT, BUT, UH, THERE COULD BE OTHER CHANGES GOING IN THE FUTURE ONCE WE START SEEING, UH, ADDITIONAL CONTRACTS.
SO, OKAY, SO GUYS, THE MOTION ON THE TABLE, UM, IS TO ACTUALLY TABLE, UM, CONSIDERATION OF 1177.
I WOULD PROPOSE THAT WE GO AHEAD AND MOVE FORWARD WITH A VOTE ON THAT UNLESS WE CAN PUT IT ON THE COMBO BALLOT.
UM, AND THEN GO AHEAD AND SET ESPECIALLY CALLED T MEETING FOR THE MORNING OF JUNE 5TH.
[02:25:01]
CUZ I DO GET THE SENSE THAT WE ARE GETTING FAIRLY CLOSE, BUT I THINK THERE NEEDS TO BE A LITTLE BIT MORE TIME TO WORK THIS OUT.SO, UM, IS THERE ANY OBJECTION TO PLACING A MOTION TO TABLE ON THE, UH, COMBO BALLOT? OKAY, SEEING NONE, WE'LL GO AHEAD AND MOVE IT THERE.
SORRY, CLIFF, THIS IS COREY JUST FOR ROBERT'S RULES.
SO IT LOOKS LIKE BILL AND CHAT WAS OKAY WITH PULLING BACK HIS MOTION TO TABLE.
AND THEN IS ERIC ALSO WILLING TO PULL BACK HIS MOTION TO RECOMMEND APPROVAL AND THEN WE'LL WAIT FOR THE COMBO BALLOT MOTION OR, AND SECONDER TO DO THE OFFICIAL TABLING.
SO IS ERIC OKAY WITH THAT? GREAT POINT.
I, I THINK SO MY UNDERSTANDING IS THAT THE MOTION TO THE TABLE WAS FOR A SPECIAL CALL TAX MEETING, WHICH IS WHAT WE'RE VOTING ON.
BUT IF THAT'S NOT THE CASE, YOU KNOW, THAT'S WHAT I WOULD LIKE THE MOTION TO BE.
IN OTHER WORDS, I HAD A, A BASE MOTION, BUT IT WOULD, THAT MOTION WOULD BE TABLED BY BILL'S MOTION TO TABLE FOR A SPECIAL CALL TAX MEETING.
BILL'S MOTION TO TABLE WOULD BE A SEPARATE STANDALONE BALLOT THAT WE WOULD TAKE RIGHT NOW AS OPPOSED TO WAITING TO THE END AND GETTING A SINGLE MOTION OR, AND SECONDER TO MOVE TO APPROVE THE ENTIRE COMBO BALLOT, WHICH WOULD INCLUDE A MOTION TO TABLE 1177 FOR THE SPECIAL MEETING.
BUT BECAUSE WE ALREADY HAVE MOVERS AND SECONDERS, WE'VE, WE'VE HALTED PROGRESS UNTIL WE CAN DEAL WITH THE MOTIONS THAT ARE IN FRONT OF IT.
UH, UH, COREY, I'LL TAKE YOUR PROCEDURAL ADVICE.
I THINK WE GET TO THE SAME OUTCOME.
UM, I, I DON'T KNOW IF I WANNA DEBATE PROCEDURE AT 1156 GIVEN, UM, CLIFF'S PATIENCE FOR DISCUSSION THAT THAT WAS WHY I WAS HOPING YOU AND BILL WOULD BOTH JUST SAY YOU'LL PULL DOWN YOUR MOTIONS AND WE'LL PUT A MOTION TO A TABLE 1177 UNDER THE COMMON BALLOT.
BILL, IS THAT OKAY WITH YOU? SAME WITHDRAWN, DEFER TO COREY'S, UH, RECOMMENDATION.
OKAY, THAT BEING SAID, COREY, DOES THAT GET EVERYTHING SQUARED AWAY FROM A ROBERTS RULES OF ORDER PERSPECTIVE? YES.
THERE'S NO, THERE'S NO OFFICIAL MOTION IN FRONT OF THE GROUP RIGHT NOW, SO YOU'RE FREE TO MOVE ON.
SO THAT BEING SAID, THAT IS THE LAST PROVISION REQUEST WE HAVE UNDER THE P R S REPORT.
I DON'T KNOW IF MARTHA'S STILL ON.
DID YOU HAVE ANYTHING ELSE YOU NEEDED TO REPORT? THAT'S EVERYTHING, CLIFF.
APPRECIATE IT VERY MUCH AND THANKS AGAIN FOR THE GREAT DEBATE TODAY, GUYS.
UM, I THINK WE'VE DONE SOME GOOD WORK THIS MORNING.
[6. Other Binding Documents (Vote)]
MOVING ON TO THE NEXT ITEM OF BUSINESS.WE'VE GOT, UH, AGENDA ITEM NUMBER SIX, THE OTHER BINDING DOCUMENTS.
UM, WE'VE GOT O B D R R 0 4 5, UM, IN FRONT OF US TODAY.
UH, WE ARE STILL AWAITING R M S FEEDBACK AT THIS JUNCTURE.
SO I THINK THE SUGGESTED PATH AT THIS POINT IS TO TABLE THIS O B D R R, UM, UNTIL WE GET THE R M S FEEDBACK.
ANY OBJECTION TO PLACING THAT ON THE COMBO BALLOT? LOOKS LIKE ERIC'S MOVING, UH, RECOMMENDING THAT.
SO HEARING NO OBJECTION, WE'LL PLACE THAT ON THE COMBO BALLOT.
SO, UH, WE'LL GO AHEAD AND MOVE THROUGH OUR,
[7. RMS Report (Vote)]
UH, SUBCOMMITTEE REPORT.SO WE'LL START OUT WITH OUR R M S REPORT.
DEBBIE, YOU AVAILABLE? THANK YOU, CLIFF.
HERE WAS NOT A MAY RMS MEETING.
IT IS RETAIL MARKET GUIDE REVISION REQUEST 1 72.
IT IS PART OF THE TEXAS APP 5.0 AND IT'S SPECIFIC TO CONTINUOUS SERVICE AGREEMENTS.
UM, THOSE CHANGES INCLUDE UPDATING THE NAME, WHICH WILL ALLOW US TO NOT JUST ESTABLISH AND CHANGE, AND, I'M SORRY, ESTABLISH AND DELETE A CSA REQUEST, BUT WE'RE GONNA BE ABLE TO CHANGE IT.
ALSO, WE'RE ALSO ADDING THE NEW VERBIAGE TO THE R M G AND IT PROVIDES THE DETAILS FOR ACTUALLY, UM, MOVING THIS CHANGE FORWARD AND, AND, UH, BEING ABLE TO MODIFY THAT REQUEST.
WE'RE GOING TO BE WORKING THESE THROUGH THE MARKET TRACK SYSTEM, UM, IN BOTH THE I L U TERRITORIES AND THE M MOU TERRITORIES.
SO, UH, OBVIOUSLY SOME OF THE BENEFITS THAT WE'VE BEEN THINKING THROUGH AND BELIEVE ARE VERY, UM, STRONG EFFICIENCY FOR COMPLETING, UM, THE CHANGES.
WE'RE HAVING A LOT LESS MANUAL INTERVENTION, WHICH, UM, I THINK EQUATES TO, UH, BETTER ACCURACY.
AND THERE ARE GREAT LOGGING AND TRACKING CAPABILITIES IN MARKET TRACK, AND IT ALLOWS PEOPLE TO SEE WHAT'S IN THEIR QUEUE WHERE, UM, THINGS ARE.
SO, UM, WE WOULD LIKE TACK APPROVAL FOR RM G R R 1 72.
SO THAT BEING SAID, WE'VE GOT NO OTHER COMMENTS ON THIS PARTICULAR REVISION REQUEST.
SO ANY OBJECTION TO PLACING THAT ONE ON THE COMBO BALLOT? HEARING NONE, IT SHALL GO ON THE COMBO BALLOT.
ALL RIGHT, DEBBIE, I'VE GOT A COUPLE OF OTHER
[02:30:01]
ITEMS. UH, THE LUBBOCK POWER AND LIGHT TRANSITION TO RETAIL COMPETITION.UH, THE RETAIL TESTING IS IN, UM, THE CONTINGENCY PERIOD.
IT WILL CONCLUDE, IT'S EXPECTED TO CONCLUDE JUNE 23RD.
THERE ARE SOME, UH, I GUESS TRANSACTION, UH, ISSUED TYPE, UM, SCENARIOS THAT ARE BEING EXPLORED AND, UM, WE CONTINUE TO WORK THROUGH THAT.
UH, IN ADDITION, IF THIS EXTENDS BEYOND JUNE 23RD, I THINK WE'LL BE FINE.
UM, BECAUSE AS I WILL MENTION IN A MINUTE, UH, THE TRANSITION, THERE'S A TRANSITION DELAY THAT'S EXPECTED AND IT IS DUE TO THE, UM, FE APPROVAL OF TRANSFERRING THE REMAINDER OF THE 30%, UM, LOAD INTO ERCOT.
SO IF ANY OF YOU ATTENDED THE POC MEETING WHERE THIS WAS DISCUSSED, YOU ARE VERY AWARE OF THIS ISSUE.
UM, WE HAVE GONE INTO A LOT OF DISCUSSION AT THIS AT THE LUBBOCK RETAIL INTEGRATION TASK FORCE.
UM, IN ADDITION TO KEEPING AN EYE ON THAT, UH, L R I T F IS WORKING ON THE ORDER PROCESSING OF TRANSACTIONS.
UM, THERE'S GONNA BE A LOT OF, OF, UM, CONSIDERATION GIVEN TO THIS THAT SINCE THERE WILL BE KIND OF LIKE LOOKING AT THINGS BEFORE TRANSITION AND DURING TRANSITION AND AFTER TRANSITION, UM, THE RETAIL MARKET GUIDE MODIFICATION AS SOME OF THOSE HAVE COME THROUGH TO TECH, IT INCLUDES OPTIONS FOR A MUNICIPALITY OR ELECTRIC COOPERATIVE TO USE THE I O U PROCESSES INSTEAD OF MANDATING THEM TO USE, UM, THE PROCESSES THAT ARE CURRENTLY IN THE RETAIL MARKET GUIDE FOR THOSE.
AND, UM, THEY'RE ALSO MANAGING THE RETAIL TRANSITION TIMELY, THAT INCLUDES ALL OF THE ACTIVITIES NECESSARY TO MOVE INTO RETAIL COMPETITION.
AND THOSE NEED TO BE COMPLETED BEFORE THEY COME IN.
HOWEVER, WE HAVE DEVELOPED SOME CONTINGENCIES, EXCUSE ME, OUR UPCOMING MEETINGS THIS THURSDAY, MAY 25TH AT ONE 30 AND JUNE 6TH AFTER THE R M S MEETING AT 1:00 PM ALL RIGHT.
AND THEN LASTLY, I HAVE THE MONTHLY 10 AND PS PROGRESS, UM, WITH THEIR 3G REMEDIATION.
SO, UM, AS YOU CAN SEE, THE NUMBERS ARE GETTING QUITE LOW.
THEY'RE WORKING ON THESE AND, UM, A LOT OF THEM ARE DUE TO ACCESS ISSUES.
UM, SO WE'RE LOOKING FORWARD TO GETTING A, UH, CLEAR REPORT, UM, MAYBE EVEN POSSIBLY NEXT MONTH.
ARE THERE ANY QUESTIONS? ALL RIGHT, THANK YOU, DEBBIE.
ANY QUESTIONS FOR DEBBIE? ALL RIGHT, SOUNDS GOOD.
[8. ROS Report (Vote)]
ON TO THE OS REPORT.UM, BELIEVE CHASE IS UP FOR THAT.
HI, CLIFF, CAN YOU CONFIRM YOU CAN HEAR ME? SURE CAN CHASE.
THIS IS CHASE SMITH, UM, WITH SOUTHERN POWER COMPANY AND OS CHAIR.
UM, I HAVE TWO NOKS, UM, FOR TAX, UM, CONSIDERATION.
THEY'RE UP FOR A VOTE TODAY, AND I'LL GIVE A BRIEF UPDATE ON, UM, SOME RECENT ACTIONS RO OS HAS TAKEN AND, AND DISCUSSION ITEMS THAT WE'VE HAD.
FIRST UP IS NORE 2 46, WHICH IS RELATED TO NPR 1161.
UM, THIS NORE CLARIFIES THAT, UM, RENEWABLE RESOURCES THAT REMAIN SYNCHRONIZED TO THE ERCOT SYSTEM, BUT ARE NOT ABLE TO PROVIDE REACTIVE POWER WHEN NOT PROVIDING RE REAL POWER, UH, DO NOT HAVE TO NOTIFY ERCOT OTHER THAN VIA THE REALTIME TELEMETER STATUS OF THAT FACT.
UH, THIS, THIS, UM, NOVA WAS VOTED UNANIMOUSLY, UM, RECOMMENDED APPROVAL, UM, BY OS AND THERE IS NO EXPECTED COST OR PROJECT REQUIRED, UM, ASSOCIATED WITH THE NORE.
TWO, THREE, UM, IT, WHICH, UH, RELATES TO, UH, APR 1178.
EXPECTATIONS FOR RESOURCES PROVIDE ERCOT CONTINGENCY RESERVE SERVICE.
UM, THIS NOER ALIGNS THE NODAL OPERATING GUIDE LANGUAGE REGARDING ECR R S AND NONS SPIN WITH REVISIONS PROPOSED IN NPR 1178.
UM, AS WELL AS, UM, PREVIOUS PROTOCOL LANGUAGE THAT WAS APPROVED IN, UM, NPR 2 96 THAT KIND OF SET THE, UM, THE, THE TWO HOUR CAPABILITY REQUIREMENT FOR ECR R S AND THE FOUR HOUR CAPABILITY FOR NON SPIN.
UM, RO OS DID, UM, TAKE THIS UP EARLIER AT OUR, UH, MAY MEETING.
IT CAME ON AN URGENT STATUS, UM, IN ORDER FOR, UM, FOR US TO ALIGN THE PROTOCOL AND GUIDE LANGUAGE WITH EXPECTED PERFORMANCE OF ECR R S AS QUICKLY AS POSSIBLE.
UM, THERE IS NO EXPECTED COST OR PROJECT REQUIRED WITH THE NOUR AND ROS VOTED UNANIMOUSLY TO, UH, TO GRANT URGENT STATUS AND TO RECOMMEND APPROVAL OF NO 2 53.
[02:35:03]
CLIFF, I'M GONNA STOP THERE AND SEE IF ANYONE HAS ANY COMMENT QUESTIONS ON THIS, OR WOULD YOU LIKE ME TO GO THROUGH THE WHOLE PRESENTATION, UH, BEFORE WE'RE CIRCLING BACK TO THE VOTING ITEMS? YEAH, GO AHEAD AND RUN THROUGH THE WHOLE PRESENTATION CHASE.SO NEXT UP, UM, HERE'S JUST A LIST OF SOME OF THE RECENT ACTIONS ROS HAS TAKEN ON A FEW OF THE REVISION REQUESTS, UH, THAT WE HAVE, UM, BEEN CONSIDERING.
NONE OF THESE ARE UP FOR, UM, FOR A VOTE TODAY ON THE, THE NUMBERS AND FIGURES, BUT WE'LL, WE'LL BRING THAT UP WHEN, WHEN, UM, READY ONCE WE'VE HAD A CHANCE TO REVIEW THE IAS FOR THE, FOR THESE REVISION REQUESTS.
BUT, UM, JUST WANTED BIG PICTURE FOR TACT TO, TO SEE SOME OF THE, THE RECENT ACTIONS AND UPCOMING ITEMS THAT WILL BE COMING TO TACK FOR VOTING ITEMS ONCE WE'VE, UH, KIND OF FINALIZED AND GONE THROUGH ALL THE IAS FOR THESE VARIOUS REVISION REQUESTS.
SO, SO CLIFF, I WASN'T GONNA PLAN TO GO THROUGH THESE, BUT WE'LL HAVE MORE CHANCE TO, TO TALK INTO DETAIL ON THESE REVISION REQUESTS WHEN THEY'RE UP FOR A VOTE ATTACK.
UM, BUT HAPPY TO ANSWER ANY QUESTIONS IF ANYONE DOES HAVE ANY QUESTIONS.
UM, OKAY, NEXT, NEXT COUPLE SLIDES IS JUST A LIST OF ALL OF THE REVISION REQUESTS UNDER, UH, REVIEW AT ROS AND OR ITS WORKING GROUPS.
UM, JUST WANT TO IN ONE PLACE FOR FOR T THE CDS.
PLEASE THINK THAT THERE'S CONTINUED ONE LINE OF REVISION REQUESTS, UM, THAT ARE UNDER CONSIDERATION, AND I JUST WANTED TACK TO BE AWARE OF, UH, HAVE ONE PLACE TO LOOK TO SEE ALL THE ITEMS THAT ARE UNDER CONSIDERATION OF RO OS.
SO, UM, RECENTLY A COUPLE DISCUSSION ITEMS THAT ROS HAS TAKEN UP.
UM, PERK GAVE A, AN UPDATE, UM, RECENTLY THEY HAD A WORKSHOP IN EARLY APRIL, AND THEY GAVE AN UPDATE AT APRIL OS OF A, UH, UH, A RS PFR LIMIT STUDY THAT THEY COMMISSIONED AND, UM, HAD GE, UM, HIGHER G E TO HELP AND PERFORMANCE STUDY ON, YOU KNOW, ASSESSING THE POTENTIAL RISK OF ANY ONE RESOURCE HOLDING TOO MUCH, UH, PFR AND HAVING NON PERFORM, YOU KNOW, KNOW AT A GIVEN TIME AND HAVING NON-PERFORMANCE AND IF, UH, LIMITS WERE, WERE APPROPRIATE TO, UH, KIND OF HELP, UH, REDUCE THAT, REDUCE THAT RISK.
UM, SO GE DID RECOMMEND PLACING A LIMIT ON, UM, HOW MUCH ANY ONE RESOURCE COULD PROVIDE, UM, PPF R AND IT WAS A, A PERCENTAGE, AND ERCOT DID IT KIND OF FOLLOWED UP IN, JUST GIVEN THE COMPLEXITY OF DOING A PERCENTAGE AND, AND CHANGING INERTIA ON THE SYSTEM IMPACTS THE EXPECTED PERFORMANCE.
UM, AND, AND THE RISK THAT PFR NON-PERFORMANCE WOULD PRESENT, UM, MADE, MADE SOME CHANGES TO BASICALLY TRANSLATE IT TO A STATIC LIMIT, A MEGAWATT NUMBER LIMIT.
UM, AND THE KIND OF THE STRAW PROPOSAL RIGHT NOW IS TO PLACE TO ESTABLISH 157 MEGAWATT LIMIT ON THE MAXIMUM AMOUNT OF, UH, PFR THAT A SINGLE RESOURCE COULD PROVIDE.
UM, ERCOT HAS SAID THEY'RE, THEY'RE PLANNING TO WORK ON A REVISION REQUEST TO, UH, TO SUBMIT ON THIS CONCEPT, SO THAT THAT HAS NOT BEEN FILED YET.
BUT, UM, AND THE SECOND ITEM I WANTED TO BRING THE TAX ATTENTION, UM, RELATES TO NO, 2 45, UH, WHICH IS THE VERTE BASE RESOURCE RIDE THROUGH REQUIREMENTS.
UM, THIS IS A, A, A REVISION REQUEST THAT ERCOT HAS FILED THAT, UM, PROPOSES NEW, NEW, UM, FREQUENCY RIDE THROUGH IN VOLTAGE RIDE THROUGH REQUIREMENTS FOR INVERTER BASED RESOURCES.
UM, THERE'S BEEN A LOT OF DISCUSSION, I WOULD SAY, AT BOTH ROS AND SOME OF ITS WORK GROUPS AND TASK FORCE OVER THE PAST FEW MONTHS ON THE NOUR.
UM, AND THE UPDATE I WANNA PROVIDE TODAY IS THAT MULTIPLE STAKEHOLDERS, UM, YOU KNOW, DID FILE COMMENTS IN APRIL EXPRESSING SOME CONCERNS.
AND THEN AT THE, THE MAY SLATE OF MEETINGS, ERCOT, UM, HAS PRESENTED ON A POTENTIAL ALTERNATIVE ALTERNATIVE FRAMEWORK, UM, THAT IS CONSIDERING.
AND, UM, UM, AT THE, AT THE MAYO O WG MEETING, ERCOT SAID THEY WERE, THEY WERE WORKING ON PUTTING THAT INTO DRAFT COMMENTS.
SO, UM, THOSE STILL HAVE NOT BEEN FILED, BUT, UH, SOMETHING FOR STAKEHOLDERS TO BE AWARE OF AND BE ON THE LOOKOUT FOR IF NEW COMMENTS ARE FILED ON THE NORE, AND WE EXPECT FURTHER DISCUSSIONS THAT HAPPEN AT THE JUNE OR ARREST MEETING.
SO, CLIFF, THAT FINISHES MY, I THINK NEXT SLIDE IS JUST OUR, OUR NEXT MEETING IS, UH, JUNE 8TH, AND THAT FINISHES OUR OS REPORT.
HAPPY TO ANSWER ANY COMMENTS OR QUESTIONS IF THERE ARE ANY.
LOOKS LIKE WE HAVE A QUESTION FROM CLAYTON GREER.
YEAH, IT'S A LITTLE BIT OFF TOPIC, BUT, UM, THERE WERE SOME LARGE LOADS THAT TRIPPED, UH, THEY DIDN'T DO THE VOLTAGE RIDE THROUGH.
UM, ARE YOU GUYS TRACKING THAT AT ALL?
[02:40:03]
WHAT? THERE WAS AN EVENT, I BELIEVE IN, UM, LAST WINTER WHERE WE HAD SOME, WE HAD A UNIT TRIP, A GENERATION TRIP VOLTAGE, UH, DROPPED, AND THEN SOME, UM, I, I BELIEVE IT WAS BITCOIN MINING LOAD TRIPPED OFF SYMPATHETIC TO THAT.IS THAT BEING, YEAH, FOLLOWED UP AT THIS TIME? THE OSS FOCUSED AND DISCUSSION HAS BEEN ON NOVEMBER 2 45, WHICH IS, UM, YOU KNOW, SPECIFIC TO INVERTASE RESOURCES.
I I WOULD ASK THAT, YOU KNOW, DEFER TO SOMEBODY FROM ERCOT IF THEY HAVE AN ANSWER TO YOUR QUESTION ABOUT SPECIFICALLY FOR, FOR LOADS AND PERFORMANCE ON THAT TOPIC.
I I WAS JUST WONDERING IF THERE WERE GOING TO BE, THERE WAS GOING TO BE A STANDARD DEVELOPED SIMILAR TO THIS FOR THE LOAD SIDE, BUT, BUT MAYBE WE'RE A LITTLE BIT TOO EARLY IN THE GAME.
YEAH, THANKS FOR BRINGING THAT UP, CLAY.
AND THAT MIGHT BE SOMETHING TO BRING UP ON THE OS SIDE, UM, IF YOU HAPPEN TO VISIT THERE LATELY.
SO, UM, BUT YEAH, THAT, THAT'S PROBABLY A TOPIC WHILE WE'RE DISCUSSING.
YOU KNOW, WE, WE CAN BRING THAT UP AND, AND COORDINATE WITH OUR CO STAFF TO, UH, TO HAVE A DISCUSSION OS ABOUT THAT.
UH, CIRCLING BACK TO THE TWO VOTING ITEMS THAT WERE ON THE LIST.
SO WE'VE GOT, UH, NOGA 2 46, WHICH IS ON A REGULAR TIMEFRAME, AND WE'VE GOT NOGA 2 53, WHICH IS ON AN URGENT TIMEFRAME.
BOTH OF THESE ARE READY TO GO.
UM, IF THERE'S NO OBJECTION, WE'LL PLACE THOSE ON THE COMBO BALLOT AS WELL.
DID WANNA POINT OUT WITH NORE 2 53, SIMILAR TO, UH, NPR R 1169, THAT, UM, SINCE THIS IS ON AN URGENT TIMELINE AND, AND AFTER DISCUSSION WITH, UH, ERCOT DISCUSSION WITH P U C STAFF, IF IT'S APPROVED BYT, AND THEN AT THE JUNE 20TH BOARD MEETING, IT'LL BE CONSIDERED AT THE JUNE 29TH P U C MEETING WITH AN EFFECTIVE DATE OF JULY 1ST.
UH, SO ANYWAYS, THAT BEING SAID, IF THERE'S NO OBJECTIONS, WE'LL GO AHEAD AND PLACE THOSE ON THE COMBO BALLOT.
[9. WMS Report (Vote)]
ALL RIGHT, MOVING ON TO THE WMS REPORT.UH, CLIFF, CAN YOU CONFIRM THAT YOU CAN HEAR ME? YES, SIR.
I'M
WE HAVE A COUPLE OF ITEMS. WE'VE HAD TWO MEETINGS SINCE THE LAST TECH MEETING.
WE HAVE A COUPLE OF, UH, VOTING ITEMS FOR CONSIDERATION.
UH, I WAS, I HAVE A QUICK UPDATE ON REVISION REQUESTS AND, UH, SOME OF OUR, UH, WORKING GROUP LEADERSHIP UPDATE AND THEN SOME DISCUSSION ITEMS. THE, UH, VOTING ITEMS WE HAVE, UH, ONE IS OUR WMS GOALS FOR THIS YEAR.
UH, I KNOW IT'S A LITTLE BIT LATE IN THE YEAR, BUT, UH, WE'VE BEEN WORKING TO GET, UH, OUR GOALS, UH, WORKED OUT AND, AND, UM, AND WE ALSO HAVE A B C M R OH THREE ONE, UH, FOR APPROVAL, WHICH IS A CLARIFICATION RELATED TO VARIABLE COSTS AND FUEL LADDERS.
AS FAR AS THE GOALS, WE POSTED, UH, A RED LINE TO THE GOALS, UH, FROM, FROM 2022.
UH, THERE WERE, UH, THERE WAS A RED LINE POSTED TO THE MEETING PAGE.
UH, YOU'LL, YOU'LL NOTICE THAT THERE WERE QUITE EXTENSIVE CHANGES THIS YEAR.
WE, UH, JIM AND JIM LEE FROM CENTERPOINT AND I, UH, WORKED WITH WMS TO, UH, REVIEW OUR, OUR GOALS AND TRY TO STREAMLINE, UH, AND TO, UH, TO MAKE A FEW, UH, OTHER CHANGES.
UH, AND SO IF YOU LOOK AT THE RED LINE, THAT MIGHT SCARE YOU A LITTLE BIT, BUT I HOPE THAT IF YOU READ THE FINAL VERSION, UH, YOU'LL, YOU'LL FEEL LIKE IT, IT CAPTURES EVERYTHING THAT WE'RE, THAT WE'RE LOOKING INTO.
UH, ONE OTHER THING IS WE TOOK OUT THE, UH, CREDIT PART, UH, THAT'S NOW UNDER THE, THE CREDIT SUBGROUP.
UM, CLIFF, I DIDN'T KNOW IF YOU WANTED TO TAKE A VOTE ON THESE TWO ITEMS NOW, OR IF, IF YOU WANT ME TO CONTINUE AND THEN YOU CAN VOTE AT THE END.
LET'S GO AHEAD AND ROLL THROUGH YOUR ALL THE WAY.
WELL, OKAY, HE'S GOT IT UP HERE, SO LET'S JUST GO AHEAD AND TAKE A LOOK AT 'EM REAL QUICK SINCE COREY HAD 'EM PULLED UP ON THE SCREEN.
SO THESE WOULD BE THE MOTIONS.
UM, THAT BEING SAID, UNLESS THERE'S ANY COMMENTS OR QUESTIONS ON THE TWO MOTIONS AS COREY HAS PRESENTED ON THE SCREEN, THEN WE WILL, UH, GO AHEAD AND PLACE HIM ON THE COMBO BALLOT.
UM, DO HAVE A COMMENT FROM IAN HALEY, GO AHEAD.
THANKS, CLIFF, I NEED TO VOTE NO ON THE V C M R R.
LET'S GO AHEAD AND PULL THAT ONE OFF THE COM COMBO BALLOT, IF
[02:45:01]
YOU DON'T MIND, THEN COREY, AND WE CAN GO AHEAD AND PULL UP THAT BALLOT NOW, THEN GIMME JUST A SECOND TO PREP IT.UH, WHILE YOU'RE DOING THAT, WE'LL GO AHEAD AND SEE IF WE CAN CAPTURE A, UH, MOTION TO APPROVE AND A SECOND.
SO DO I HAVE A MOTION TO APPROVE AND A SECOND? GOT A MOTION FROM CHRIS HENDRICKS, WAS THE FIRST ONE IN.
ERIC, YOU WANNA BE MY SECOND? ALL RIGHT.
WILL CMR 31 AS RECOMMENDED BY WMS AND THEY MAY WMS REPORT.
I SHOULD NOT SEE IT ON MY SCREEN YET, COREY, BUT, UH, THERE WE GO.
CAN FIX MY DOUBLE MUTING, BUT I CAN'T FIX MY PAUSE SHARING.
NOW MOTION TO RECOMMEND APPROVAL.
WE WILL START UP WITH THE CONSUMERS, WITH MARK.
ONTO OUR CO-OPS, MIKE ABSTAIN.
AND OUR INDEPENDENT GENERATOR.
AND THEN CAITLIN FOR BOB ABSTAIN.
ONTO THE IPMS, JEREMY? YES, YES.
AND ONTO THE MUNIS, JOSE ABSTAIN.
THANK YOU, UH, DAVID FOR LISA ABSTAIN.
MOTION CARRIES TO OPPOSE INTENTIONS.
T MEMBERS, IF YOU WOULD, UM, ALSO, AS, AS WE, UH, PREPARE FOR OUR DISCUSSION WITH THE ERCOT BOARD, IF YOU CAN PROVIDE ANY SORT OF FEEDBACK THAT YOU MAY HAVE DIRECTLY TO, UH, CAITLIN AND ME PERTAINING TO NOSE AND ABSTENTIONS, THAT WOULD BE EXTREMELY HELPFUL THERE.
SO, UM, LOOKS LIKE I DO HAVE ERIC GOFF IN THE QUEUE.
UM, I WAS GONNA ASK WHAT YOU JUST ASKED FOR, BUT TO BE PROVIDED TO TACK IN THIS CASE, CUZ I HAVEN'T REALLY HEARD A CLEAR CASE AS TO WHY PEOPLE DON'T SUPPORT THAT.
UM, ONE EXCEPT FOR THE ONE PARTY THAT WAS PARTICULARLY INVOLVED IN, UH, A P U C DISPUTE.
AND SO I, I WOULD LIKE TO UNDERSTAND, UM, THE VOTES ON THAT ONE.
UM, IF PEOPLE ARE WILLING TO MAKE IT PUBLIC AND NOT JUST A CLIFF AND CAITLIN, THANKS, THAT WOULD BE GREAT.
I, I WOULD HAVE NO OBJECTION TO THAT.
SO FOR THE FOLKS THAT ARE WILLING AND ENABLE, OBVIOUSLY CAN'T COMPEL YOU TO, BUT IF YOU WOULD, THAT WOULD BE VERY HELPFUL, I THINK TO EVERYONE.
[02:50:01]
HEY, GOING BACK TO THE WMS PRESENTATION, I THINK, UH, VCM, I'M SORRY, THE 2023 WMS GOALS WILL GO AHEAD AND PLACE ON THE COMBO BOUND, UNLESS THERE'S ANY OPPOSITION TO THAT.AND, UH, ERIC, YOU CAN GO AHEAD AND PICK UP.
UM, SO I'LL QUICKLY, UH, REVIEW OUR, WE'VE HAD TWO MEETINGS APRIL 6TH, AND YOU CAN SEE SOME OF OUR HIGHLIGHTS.
UH, WE, IT'S WHERE WE APPROVED THE GOALS.
WE DISBANDED THE MARKET CREDIT WORKING GROUP BECAUSE THAT IS NOW PART OF THE, UH, CREDIT, UH, SUBGROUP AND, UH, MADE A REQUEST A TABLE.
NPR 1162, ENDORSED 1167 AND APPROVED, UH, V CMR 31.
AND, UM, THEN ON MAY 3RD, WE ENDORSED DANA SHOW WALTER TO LEAD OUR RESOURCE COST WORKING GROUP, WHICH WE'RE VERY EXCITED ABOUT TO HAVE THAT UP AND RUNNING AGAIN.
AND WE ENDORSE OP O B D 45 QUICKLY ON THE CURRENT STATUS OF OUR WORKING GROUPS.
AND I WANT TO FIRST APOLOGIZE, I, IT WAS POINTED OUT THAT I INADVERTENTLY LEFT MARKET CREDIT WORKING GROUP ON OUR PAGE, AND THEY ARE NO LONGER IN OUR, IN OUR PURVIEW ANYMORE.
BUT WANTED TO MENTION JUST AN UPDATE, UH, OF WHOSE LEADER LE IN LEADERSHIP, AND WE DO APPRECIATE EACH OF THESE.
UH, KEVIN HANSEN HAS MOVED TO CHAIR OF DEMAND SIDE WORKING GROUP, AND MARK SMITH WILL BE VICE CHAIR.
AND AS I MENTIONED, DANA SHOWALTER WILL BE CHAIR OF RESOURCE COST WORKING GROUP, AND THEY HAVE NOT, I LOOKED AT THE MEETING PAGE, THEY HAVE NOT MET SINCE I BELIEVE 2019, IF I'M NOT MISTAKEN.
SO, UM, VERY EXCITED TO HAVE THEM BACK AND THEIR FIRST MEETING IS TOMORROW.
SO ENCOURAGE EVERYONE TO ATTEND AND DISCUSS SOME OF THESE FIELD ISSUES, UH, THAT WERE DISCUSSED EARLIER.
UM, NEXT, SO WE DO HAVE THE FUEL ADDERS AND, AND I, I GUESS I'LL JUST SAY, I, I, I LISTENED TO THE DISCUSSION THIS MORNING.
I THOUGHT THAT WAS VERY HELPFUL.
WE HAVE OUR W M W G AND RC W G UH, DISCUSSING THESE ISSUES.
WE HAVE TALKED ABOUT HAVING A WORKSHOP AND, UH, I DID HEAR THE DIRECTION TO HAVE A HOLISTIC APPROACH, UH, ON COST RECOVERY.
AND SO WE WILL TAKE THAT DIRECTION AND, UH, WITH THE INPUT FROM THESE WORKING GROUPS AND THEIR DISCUSSIONS, WE WILL, UH, WE WILL LOOK TO, TO MOVE FORWARD ON THIS AT OUR NEXT MEETING.
IF THERE'S ANY OTHER DIRECTION Y'ALL WANT TO PROVIDE
NEXT, JUST QUICK UPDATE ON THE DIFFERENT, UH, REQUESTS THAT ARE TABLED.
UM, AND, UH, WE HAVE ASSIGNED 1146 TO THE CREDIT WORKING GROUP OR THE SUBGROUP AND 10 67 NEXT.
SO IN ADDITION TO THE GOALS, UH, JIM LEE HAS TAKEN A, A REALLY GOOD LEAD.
HE'S, HE'S LOOKED, UH, THROUGH OUR TECH ASSIGNMENTS.
I THINK WE HAD SEVERAL PAGES WHEN WE TOOK OVER LEADERSHIP OF WMS. THERE WERE SEVERAL PAGES OF T ASSIGNMENTS AND, AND OPEN ACTION ITEMS AND PARKING LOT ITEMS THAT WE WERE, WE HAD ON OUR LIST.
AND SO, GIVEN THE, THE UPCOMING WORKLOAD THAT WE ANTICIPATE FROM T AND FROM THE PUC AND LEGISLATURE, WE'RE TRYING TO STREAMLINE SOME OF OUR, UH, ONGOING ACTIVITIES.
AND ONE OF THE THINGS WE'VE LOOKED HARD IS AT THE, UH, T ASSIGNMENTS.
AND, UM, ONE OF THE THINGS WE'VE, WE'VE TALKED TO CLIFF AND CAITLIN ABOUT GETTING SOME UPDATES ON THESE TACK ASSIGNMENTS, AND, AND YOU CAN SEE A SUMMARY, UH, OF, OF AT LEAST FIVE HERE THAT, THAT WE'D LIKE TO TALK ABOUT FIRST.
AND, UH, SOME OF THESE ARE, ARE RATHER OLD.
YOU SEE, THE FIRST ONE WAS FROM 2020, UH, THE OTHERS ARE 2021.
AND THEN, UH, THE BOTTOM, UH, ASSIGNMENT, WE'D LIKE TO MOVE OVER TO THE CREDIT SUBGROUP.
UM, BUT, UH, JIM, I BELIEVE JIM IS ON THE LINE IF THERE ARE ANY QUESTIONS OR COMMENTS, AND I SEE THAT CARRIE HAS A COMMENT, UH, AND ERIC GO.
UM, BUT WE ARE, WE ARE OPEN TO ANY COMMENTS AND WE'LL TAKE ANY DIRECTION THAT, THAT TACK WOULD HAVE FOR US ON THESE ISSUES.
[02:55:01]
ONE, I AGREE THAT IT'S OUTDATED, BUT I'M NOT SURE THE ISSUE'S BEEN ENTIRELY RESOLVED.UM, AND I ALSO ANTICIPATE THAT AT SOME POINT IN THE NEXT SEVERAL YEARS, OUR CAP WILL WANT TO, UM, REDO THE FUNCTIONALITY IN TERMS OF THE BACK END OF THE DAY AHEAD MARKET.
UM, AND, AND SO I WOULD LIKE TO GET AHEAD OF THAT AS OPPOSED TO HOW WE HAD TO DEAL WITH THE EMS UPGRADE.
UM, AND SO I WONDER IF MAYBE WE CAN JUST GET A REPORT, UH, TO WMAS ABOUT, OR TOT MAYBE ABOUT ANY INTENTIONS ORCA MIGHT HAVE, UM, IN, IN REGARDS TO THAT, IF THAT'S ON THEIR HORIZON AT ALL.
UM, BUT I, I DO AGREE AT STABLE WE CAN REMOVE THIS, BUT I'D LIKE TO HAVE SOME WAY OF LOOKING AT DAN PERFORMANCE STILL GOING FORWARD SO WE DON'T GET, YOU KNOW, LEFT BEHIND AGAIN.
UM, I THINK IT'S FAIR TO REMOVE IT FROM WM S'S LIST.
CAN WE, CAN WE ASK DAVE, DO YOU MIND PROVIDING AN UPDATE ON THAT AT SOME POINT, CLIFF? YEAH, I'LL, I'LL TAKE THAT ACTION ITEM AND, AND WORK WITH, UH, MATT AND HIS TEAM TO, TO SEE HOW TO BEST, UH, ACCOMMODATE THAT.
YOU KNOW, CERTAINLY WE HAVE GENERALLY, UH, THE TECH REFRESHES, UH, AND THINGS LIKE THAT.
I THINK THAT'S WHAT ERIC MAY BE REFERRING TO WITH EMS, THAT THAT ACTUALLY GENERALLY MAY IMPROVE YEAH.
UH, IN PERFORMANCE AS OPPOSED TO TO HARM IT.
BUT OF COURSE, WE ARE ALSO, YOU KNOW, WHETHER OR NOT WE NEED TO MAKE OTHER CHANGES TO THE DAY AHEAD MARKET AS WELL.
BUT, UH, BUT ANYWAYS, I'LL BE HAPPY TO TAKE THAT, UH, ITEM AND, AND, AND WORK WITH THE ERCOT TEAM.
UH, I, I WONDER IF THE, IF WE PLAN IT WELL, IF THE TECH REFRESH CAN CREATE OPPORTUNITIES FOR ENHANCED FUNCTIONALITY AT THE SAME TIME RATHER THAN HAVING TO DELAY FUNCTIONALITY LIKE WE DID WITH THE EMS UPGRADE.
UH, THANK YOU FOR THAT, FOR CLARIFICATION.
AND IT LOOKS LIKE CARRIE PULLED HERSELF OUT OF THE QUEUE.
OKAY, THANK YOU VERY MUCH FOR THE FEEDBACK.
I THINK THE LAST SLIDE IS, UH, OUR NEXT MEETING, WHICH IS JUNE THE SEVENTH.
AND, UH, WE INVITE EVERYONE TO COME AND, UH, IF YOU HAVE ANY OTHER QUESTIONS, PLEASE LET ME KNOW.
OTHERWISE, UH, I'LL TURN IT BACK TO YOU, CLIFF.
ANY QUESTIONS FOR ERIC? ALL RIGHT, SEEING NONE, THANKS AGAIN.
ALL RIGHT, MOVING ON TO AGENDA ITEM NUMBER 10, THE CREDIT FINANCE SUBGROUP.
BRENDAN, YOU THERE? NO, CAN'T HEAR YOU.
UM, TELL YOU WHAT, IF, LET'S GO AHEAD AND CIRCLE BACK TO BRENDAN IF WE DON'T MIND, SO WE CAN START ROLLING THROUGH THE ERCOT REPORTS THEN IN THE MEANTIME.
SO, UH, BRENDAN, OH, HOLD ON ONE, JUST ONE SECOND.
BRENDAN, YOU THERE? NOPE, STILL NOT WORKING.
YOU MAY TRY TO DIAL IN BRENDAN, IF YOU DON'T MIND.
[11. ERCOT Reports]
ROLL THROUGH THE ERCOT REPORTS IN THE MEANTIME.SO, UH, MATT MARINAS, YOU'RE FIRST UP FOR THE E C R S MARKET READINESS REPORT.
AND COREY JUST ADVANCED NOTICE, I MAY ASK YOU TO CLICK ON A LINK TO, TO GO PULL UP THE UPDATED SLIDES.
UH, JUST A QUICK UPDATE ON ECR R S, HOW THE QUALIFICATION AND THE MILESTONES ARE PROGRESSING.
SO WHAT WE'VE HAD IS WE HAVE HAD A SERIES OF, UH, FIVE MEETINGS, SO FAR OF SEVEN MEETINGS TO GET TO GO LIVE AT THE BOTTOM OF THE SLIDE, WHICH IS JUNE 6TH THROUGH EIGHTH.
AGAIN, THE SYSTEM GOES LIVE ON THE EIGHTH, AND THEN THE FIRST FULL OPERATING DAY WILL BE ON JUNE 10TH.
UH, THE CURRENT ACTIVITY THERE NEAR THE BOTTOM YOU'LL SEE IS THE QUALIFICATIONS THAT ARE IN FLIGHT.
THESE ARE FOR THOSE QUEASY THAT INDICATED THEY WANT TO PROVIDE ECR R S AND REQUESTED QUALIFICATION.
AND IN PARALLEL TO THAT, ALL QUES TO MAKE SURE THEIR SYSTEMS DON'T BREAK WITH THE CUTOVER IS WE'VE BEEN TRACKING MOST SCORECARDS THAT ARE IN FLIGHT.
AND THAT SCORECARD, UNLIKE LAST TIME, UH, THE F F R A TRANSITION WAS NOT BACKWARD COMPATIBLE.
THESE SCORECARDS ARE NOT AS HIGH RISK, NOR IS THERE A FINISH LINE ON THEM.
THEY'RE JUST A FEEDBACK LOOP TO YOUR COMPANY TO LET YOU KNOW IF YOUR SYSTEMS HAVE DONE A SHAKEOUT IN THAT ENVIRONMENT, UM, TO HELP PRESERVE ANY CUT UP A RISK THAT YOUR COMPANY MAY HAVE.
UH, THIS IS THE ONE STOP SHOP FOR ALL THE DIFFERENT REFERENCES.
UH, THE BIGGEST REFERENCE, OR THE KEY REFERENCE REALLY IS THAT SECOND BULLET IS THE ECR R S OPERATIONS AND BUSINESS EXPLANATION WORKSHOP THAT HAS A TWO HOUR WORKSHOP LOADED WITH ARTIFACTS AND EXPLANATIONS OF HOW ECR R S WORKS.
[03:00:01]
HAVE.AND WE REMIND PEOPLE HOW TO SUBMIT AND DEMOTE, AND WE'LL JUST FLIP THROUGH THE BRIEFLY THE NEXT COUPLE SLIDES ON SCORECARDS.
BUT HERE'S WHERE WE'RE GONNA PIVOT.
COREY, CAN YOU CLICK THE LINK ON THE LEFT? THIS IS LIKE INCEPTION.
WE'RE GONNA GO FROM A PRESENTATION INTO A PRESENTATION, AND THIS IS WHAT WE JUST DID A COUPLE HOURS AGO WITH MARKET PARTICIPANTS.
AND YOUR FAST, IF YOU CAN GO DOWN TO THESE METRICS HAVE NOW BEEN UPDATED, SO OH WOW.
SO WHAT WE'VE BEEN TRACKING IS THIS IS YOUR CHANCE TO GO OUT AND LOOK AT THE SLIDES AND SEE HOW YOUR COMPANY IS PERFORMING.
SO AGAIN, THE IDEA IS IF ONE OF YOUR MANY, IF YOU HAVE MORE THAN ONE QUEASY, IF YOU HAVE SUB QUEASY, YOU CAN SUBMIT FOR YOUR COMPANY AND THAT WILL SATISFY ALL OF YOUR OTHER COMPANIES.
ADDITIONALLY, IF YOU SUBMIT FOR ONE WEEK, YOU'VE SATISFIED FOR ALL WEEK.
SO THIS IS JUST A FEEDBACK LOOP FOR THE PREVIOUS SLIDE WITH AS OFFERS.
THIS IS NOW THE CURRENT OPERATING PLAN WHERE THERE'S OVER 200 COMPANIES THAT DO THIS NEXT SLIDE.
AND THEN THE LAST ONE IS THE ASL ARRANGEMENT.
THIS IS THE ONE THAT'S A LITTLE LAGGING, UH, THAT DOES MAKE ME A LITTLE NERVOUS IN THE NEXT SLIDE.
AND IT SHOWS THAT QUITE A FEW COMPANIES HAVE NOT DONE THIS PART.
SO WHAT WE'VE DONE IS IN JANUARY, BECAUSE THAT'S KIND OF THE 60 DAY DISCLOSURE WINDOW, IS WHERE WE WENT BACK AND SNAPPED THE WHO USUALLY SUBMITS SELF ARRANGEMENTS.
AND THESE ARE THOSE COMPANIES, AND WE ASKED THEM TO ALSO SUBMIT SELF ARRANGEMENTS, UH, TO MAKE SURE.
SO WE'LL PROBABLY BE WORKING WITH CLIENT SERVICES JUST BECAUSE THERE'S MORE RED THAN GREEN ON THIS, BUT IT'S NOT A HIGH RISK ITEM.
AGAIN, OUR SYSTEMS ARE BACKWARD COMPATIBLE AND WE BELIEVE IT WILL BE OKAY.
UH, AND COREY, WE CAN JUST FINISH OUT IN THIS SLIDE DECK.
IT'S THE SAME THE REST OF THE WAY THROUGH AS THE TAX DECK.
UM, WE'VE BEEN UPDATING, UH, REMINDING PEOPLE HOW TO REQUEST THEIR TELEMETRY CHANGES ON THAT SLIDE.
UH, WE DID AN EXPLANATION THIS MORNING OF THE GROUPINGS FOR HOW R RS AND E C R S WORK.
NEXT SLIDE, UH, COMMUNICATION AND CUT OVER.
WE'VE BEEN USING THE CLIENT SERVICES DESK.
UH, CLIENT SERVICES IS A ONE STOP SHOP FOR, UM, HOW TO GET YOUR QUESTIONS INTO ERCOT TO HAVE THE DIFFERENT TEAMS ANSWER THOSE THEMES.
SO WE'VE HAD ABOUT A ONE DAY TURNAROUND ON MOST OF THOSE QUESTIONS.
UH, I WILL SAY VOICEOVER FOR CUTOVER.
WE'LL PROBABLY HAVE A DEDICATED, UH, MAILBOX SET UP FOR SEVEN BY 24 COVERAGE IN PARALLEL TO THE HELP DESKS, JUST TO MAKE SURE PEOPLE CAN, UM, HIT US WITH THEIR INFORMATION, UH, THEIR QUESTIONS.
IF YOUR COMPANY'S LIKE, WHAT DID YOU LEARN ABOUT E C R S TODAY, THIS IS THE ONE TO SCREENSHOT AND TAKE BACK.
THIS IS HOW TO RUN THE GAME PLAN IN YOUR SHOP.
SO I, I WILL TAKE MORE TIME THAN USUAL.
I'LL JUST SPEND A MINUTE ON THIS.
SO ON JUNE 8TH, WE'RE GONNA PUT OUR SYSTEMS IN.
OUR NEW SYSTEMS IN THAT ARE ECR R S ENABLED ON JUNE 8TH, BETWEEN THREE 30 AND 4:00 PM AT THAT POINT, MARKET PARTICIPANTS DON'T NEED TO TAKE ANY IMMEDIATE ACTION FOLLOWING THE UPGRADE.
UNLIKE LAST YEAR, THERE IS A BIT OF A CANCELING AND RESUBMITTING OF THINGS.
EVERYTHING THAT YOU SUBMITTED WILL REMAIN ACTIVE AFTER THE UPGRADE.
ECR R S FUNCTIONALITY IS AVAILABLE, BUT REMINDING PEOPLE NOT TO USE IT FOR OPERATING DAY JUNE 8TH OR NINTH, YOU SHOULD ONLY BE SUBMITTING FOR JUNE 10TH.
SO WE ROLLED THE CLOCK FORWARD ON JUNE 9TH OVERNIGHT.
IT'S WHERE A TELEMETRY FOR 10 85 KICKS IN.
NOW THE DAY HEAD MARKET ACTIVITIES ARE WHERE GONNA KICK IN, AND THAT IS OUR FIRST DAY HEAD MARKET.
THAT WILL INCLUDE ECR S SO AS OBLIGATIONS AS PLAN, ALL OF THOSE THINGS WILL BE NORMAL FOR THE DAY HEAD TO REPRESENT ECR R S VALUES.
AND THAT'S JUST A WALK DOWN ON THE DAY HEAD MARKET SEQUENCE WITH THE PLAN, PUBLISHES THE QUEASY, SUBMIT SELF ARRANGEMENTS AND OFFERS.
THE DAY AHEAD AWARDS ARE PUBLISHED FOR THE NEXT DAY.
AND AFTER DAM IS COMPLETE, THEN QUEASY UPDATE THEIR CUP WITH ECR RS VALUES.
UH, WE'VE RUN D R AND A TRUCK WILL INCLUDE ECR R S GOING FORWARD.
AND THEN JUNE 10TH IS THE FIRST NORMAL DAY.
SO THAT'S THE THURSDAY, FRIDAY, SATURDAY SEQUENCE.
AND AGAIN, THAT'S, WE HAD MOVED THAT OUT BECAUSE WE DIDN'T WANT TO HAPPEN OVER MEMORIAL DAY, WHICH IS ORIGINALLY THIS WEEKEND.
I THINK THAT'S, THAT'S THE LAST OF EVENT.
UH, YOUR COMPANIES HAVE BEEN INVOLVED.
WE'VE HAD PROBABLY 50 TO 75 PARTICIPANTS IN EACH OF THESE CALLS SO FAR, AND WE WILL HAVE CALLS THROUGH JUNE 6TH.
SO THAT I'LL TAKE ANY QUESTIONS.
ANY QUESTIONS FOR MATT ON E C R S? ALL RIGHT, SEEING NONE, MATT, I JUST WANTED TO SAY Y'ALL HAVE DONE A PHENOMENAL JOB IN TRYING TO KEEP EVERYONE UP TO SPEED ON THIS AND TRYING TO USHER US THROUGH, UH, WHAT WE HOPE TO BE A, UH, VERY SEAMLESS TRANSITION TO THIS NEW ANCILLARY SERVICE.
ALL RIGHT, MATT, YOUR NEXT UP FOR THE, UH, RTC UPDATE.
AND THIS IS JUST REAL QUICK, AND THIS IS BRENDA.
[03:05:02]
YEP.SO WE JUST HAVE THE SINGLE SLIDE HERE FOR REALTIME CO OPTIMIZATION.
SO, UH, NOT MUCH HAS CHANGED ON THIS SLIDE.
UH, WHAT WE WANTED TO BRING FORWARD WAS REALTIME CO OPTIMIZATION HAS BEEN ON HOLD SINCE MID 2021.
WE'VE HAD IT IN THE BUDGET FILINGS AS A LONG ITEM FOR A RESTART IN JULY OF THIS YEAR.
ERCOT LEADERSHIP REVISITED THE RELIABILITY BENEFITS OF REALTIME CO-OP OPTIMIZATION AND THE FUTURE OPERATIONAL CHALLENGES.
AND THAT THIS IS THE TOOL THAT WE NEED, UM, TO CONTINUE TO STRATEGICALLY MOVE FORWARD IN KEEPING UP WITH, UH, THE EVOLVING GRID.
SO THE PATH TO RESTART IS WHERE WE'RE AT.
WE'RE GETTING CLOSE TO THE END, SO I CAN'T GIVE YOU UPDATED NUMBERS, BUT THE SCOPE, UM, IS WHAT'S BELOW HERE IS NPRS 1007 THROUGH 13, WHICH IS RTC, AND THERE'S SOME OBDS AND OTHER, UH, OBDS AND OTHER THINGS AROUND THAT.
UM, I'M SORRY, I SHOULD SAY NO OPERATING GUIDE REVISIONS.
THEN THERE'S THE SINGLE MODEL, WHICH IS NPR 10 14, AND THEN ERCOT IS BRINGING A STATE OF CHARGE NPR R UH, TO STAKEHOLDERS IN JUNE.
WE TALKED A LITTLE BIT AT IT, UM, ABOUT IT AT LAST PACK, WHICH WAS THE STATE OF CHARGE IS GONNA BE IMPORTANT FOR ERCOT TO UNDERSTAND HOW TO MODEL THAT IN SKID IN ROCK, WHETHER TO USE TELEMETRY OR CUP FOR FUTURE HOURS OF STATE OF CHARGE FOR SCARED.
IS IT ALL DISPATCHABLE IN FIVE MINUTES OR OVER A 30 MINUTE WINDOW? WHAT'S THE, WHAT KIND OF, YOU KNOW, ACCOUNTING FOR MODELING SHOULD WE TAKE INTO OUR TOOLS? UM, AND THE IDEA IS THAT NICA IS GONNA HELP FRAME THAT UP IN JUNE.
AND THEN, UM, WHAT WE'VE BEEN WORKING A LOT ON IS ASSESSING THE DELIVERY RISKS, COSTS AND RESOURCING FOR THIS.
AND SO AT THIS POINT, ERCOT IS POSITIONING ITSELF TO BEGIN ON JULY 1ST, AND WE'LL BE GOING TO PROVIDE AN UPDATE, UH, TO THE BOARD ON JUNE 20TH ON THE PROSPECTIVE BUDGET, UH, SCHEDULE AND RISKS WITH RESTARTING ON JULY 1ST, SO THAT I'LL OPEN IT UP FOR ANY QUESTIONS.
ALL RIGHT, THANKS VERY MUCH, MATT.
THANKS AGAIN FOR KEEPING US POSTED.
ANY COMMENTS OR QUESTIONS FOR MATT ON REALTIME CO-OPT OPTIMIZATION? GO AHEAD, SETH.
YEAH, DO WE HAVE A GENERAL IMPLEMENTATION TARGET FOR REALTIME CO-OPT OPTIMIZATION? WELL, THE ORIGINAL WAS THREE AND A HALF YEARS, AND IT'S STILL IN THAT SAME REALM.
ANY OTHER COMMENTS OR QUESTIONS FOR MATT? UH, COMMENT FROM CAITLIN.
MATT, I WAS WONDERING, UM, IF WE COULD GET MORE INFORMATION ON THAT STATE OF CHARGE AND PR R OR IF NICA WOULD BE BRINGING THAT TO A WORKING GROUP OR SOMETHING.
D DO YOU GUYS HAVE ANY IDEA OF WHERE YOU'LL BE PREVIEWING THAT IF NIKAS STILL ON, SHE CAN GRAB THE WORKSHOP THAT SHE'S CONSIDERING IN JUNE? OKAY.
MAYBE I, I, I'LL QUICKLY CHIME IN.
KATELIN WHAT, HOPING I WILL WORK WITH THE STAKEHOLDER SERVICES TEAM, BUT HOPING WHAT WE WILL, WILL LIKE DO IS SET UP A DEDICATED WORKSHOP, UH, WHEREIN WE CAN TALK, UH, WE CAN BRING A PREVIEW OF THE NPR R R TALK ABOUT WHAT WE ARE THINKING, GET YOUR, UH, EARLY FEEDBACK AT THAT POINT.
RIGHT NOW, AT LEAST AT MY END, WHAT DATE SEEMED TO BE WORKED WAS IN THAT LAST WEEK OF JUNE.
BUT AS SOON AS I HAVE A, UH, FORMAL CONFIRMATION FROM STAKEHOLDER SERVICES, WE WILL GET A MARKET NOTICE OUT AND THEN CLOSER TO THE, UH, A DATE, WE WILL POST AGENDA WITH THE MATERIALS AS WELL.
SO THROUGH THAT, YOU SHOULD START SEEING PREVIEWS OF, UH, WHAT WE ARE LOOKING TO DO.
SO THAT WOULD BE A WORKSHOP AT THE END OF JUNE.
LOOKS LIKE, UH, DAVID KEY, UH, NO COMMENTS OTHER THAN WHAT I PUT IN THE CHAPTER TO SUPPORT THE IDEA OF, UH, HAVING CONCEPTUAL DISCUSSIONS, EVEN IF THE NPR R LANGUAGE IS NOT FULLY READY, I'D LIKE TO HEAR, YOU KNOW, WHAT
IS THE GOAL OF THE STATE OF CHARGE IS, IS THIS GOING TO BE LIKE A, UM, YOU'RE GONNA PUT GUARDRAILS ON IT SO YOU CAN ENSURE ANCILLARY SERVICE DELIVERABILITY, OR IS ARE YOU GONNA ALLOW SAVE CHARGE BIDDING? I'M JUST CURIOUS, UH,
[03:10:01]
EXACTLY WHAT YOU'RE ENVISIONING.YEAH, I THINK WE CAN SPEND A LOT MORE TIME TALKING ABOUT IT AT THE WORKSHOPS THAT BROADLY IT IS, UH, GOING THROUGH HOW WE WILL, AT LEAST FROM AN RTC PERSPECTIVE, HOW WE WOULD MODEL STATE OF CHARGE IN OUR STUDIES LIKE R SO THAT THEY, IT HAS A BETTER AWARENESS OF ACCOUNTING ON OF, UH, OF THESE ENERGY STORAGE RESOURCES, CAPABILITIES, AND ITS STUDIES AND ITS ASSESSMENT ESSENTIALLY.
UH, CERTAINLY IT ALSO FOR THE, UH, PRIOR TO RTC, IT ALSO DOES COME WITH, UH, UH, UH, HA UH, COME WITH CLARIFICATION AROUND, UH, OUR MONITORING ABILITIES FOR, UH, STATE OF CHARGE, UH, OUR EXPECTATIONS AROUND HOW MUCH WE EXPECT TO BE RETAINED FOR A YES THAT IS BEING CARRIED.
UH, TH UH, AT LEAST ON THE, UH, CURRENT, UH, UH, SYSTEMS, WE HAD STARTED THAT DISCUSSION LATE LAST YEAR.
SO THIS WILL BE BUILDING, UH, ON TOP OF THAT A LITTLE BIT MORE HOLISTICALLY.
WE DO WANT TO TRY AND SEE IF, UH, AT LEAST THE, UH, UH, UH, WE CAN ACCOUNT FOR WHEN THE BATTERIES ARE OPERATING CLOSER TO THEIR S O C LIMITS AND ADD DISPATCH IN OUR FIVE MINUTE OUT DISPATCH.
UH, SO, SO, SO THAT'S, UH, PROBABLY A VERY BROAD LEVEL, UH, UH, UH, LOOK OF WHAT WE ARE PLANNING TO DO WITH THE STATE OF CHARGE.
ANY OTHER COMMENTS OR QUESTIONS? ALL RIGHT, SEEING NONE, MATT, APPRECIATE IT VERY MUCH.
THANK YOU, CLE, THANK YOU TACK.
UM, WE ARE GOOD TO GO AHEAD AND QUEUE UP THE NEXT ITEM, WHICH IS REVIEW OF POTENTIAL DAM PRICE CORRECTIONS.
UM, WE'VE GOT ANOTHER MATT, MATT YOUNG, THAT'LL BE SPEAKING TO THOSE.
UM, AND MATT, BEFORE YOU GET STARTED, UM, I'VE GOT A HARD STOP AT 1245, SO I'M GONNA BE PASSING THE BATON OFF TO CAITLIN FOR THE REMAINDER OF THE MEETING.
SO I APPRECIATE, UH, APPRECIATE Y'ALL WORKING WITH US TODAY.
UH, YEAH, MATT FROM ERCOT, I'M GONNA BE GOING OVER THE, UH, AS CLIFF MENTIONED, THE REVIEW OF THE EDM PRICE CORRECTIONS RESULTING FROM THE INCLUSION OF CLRS, UH, ASSOCIATED WITH CONTROLLABLE RESOURCES, UH, IN LOAD ZONE PRICING, AND SO ON, WHAT ON MARCH 9TH, UH, ERCOT DISCOVERED THAT THE MARKET MANAGEMENT SYSTEM WAS INCLUDING, UH, THE CLRS AND LOAD ZONE PRICE CALCULATIONS FOR BOTH DAM AND REAL TIME.
UM, THE, UH, MARKET, MARKET NOTICE WAS ISSUED ON THAT SAME DAY, NOTIFYING THE MARKET, AND, UH, ITS INTENT TO SEEK POTENTIAL PRICE CORRECTION FROM THE BOARD, UH, FOR ANY OPERATING DAY THAT MET CRITERIA.
UM, THE PROTOCOL SECTIONS, UH, 6, 6 1 2, 6 6 1 4 REQUIRE FOR THE REALTIME MARKET, THAT LOAD ZONE PRICES EXCLUDE CLRS ASSOCIATED WITH ESRS.
UM, AND THIS ALL THIS, UH, THIS, UH, MODELING ERROR ALSO RESULTED IN THE DAM, UH, LOAD DISTRIBUTION FACTORS, UH, BEING AFFECTED AS WELL.
AND I'D LIKE TO JUST GO OVER A QUICK EXAMPLE OF HOW LOAD ZONE LMP ARE CALCULATED FOR ANYBODY WHO JUST DOESN'T KNOW.
AND SO THE LOAD ZONE LMP IS CALCULATED, UH, WITH A LOAD WEIGHTED, UH, AVERAGE.
AND SO IN THIS EXAMPLE, THE, UH, UH, HYPOTHETICAL LOAD ZONE NORTH, UH, HAS A TOTAL LOAD OF 30 MEGAWATTS ACROSS THREE BUSES.
AND IF WE JUST DO A LOAD WEIGHTED AVERAGE FOR THOSE BUSES AND THEN ADD IT UP, WE'LL HAVE A, A PRICE OF, UH, LMP OF 1667.
AND SO, IF, UH, ELECTRICAL BUS THREE HAD BEEN MAPPED TO A C L R THAT'S ASSOCIATED WITH AN ENERGY STORAGE RESOURCE, THEN WE WOULD EXCLUDE THAT FROM THE CALCULATION, WHICH WOULD RESULT IN A TOTAL LOAD OF 20 MEGAWATTS, WHICH WOULD, UH, THEN CHANGE THAT LMP FOR THAT LOAD ZONE TWO 17, UH, AND 50 CENTS.
UM, ONCE ERCOT DETERMINED THE ERROR, UH, WELL, I'M SORRY, UH, ERCOT DETERMINED THE ERROR WAS, UH, RELATED TO IN, IN, UH, THE METHOD IN WHICH M M S MAPS ELECTRICAL BUSES TO, UM, THE, UH, CONTROLLABILITY RESOURCES THAT ARE ASSOCIATED WITH, UH, ESRS.
MMS RELIES ON A SET OF TABLES FROM THE NETWORK MODEL MANAGEMENT SYSTEM TO DETERMINE THIS.
AND, UH, THOSE TABLES WERE GOING THROUGH A CHANGE.
[03:15:01]
SO THE, UH, THE PROCESS, THE, THAT, THAT DID THIS MAPPING, UH, WASN'T, UH, UPDATED TO CATCH THAT.AND SO ONCE ERCOT IDENTIFIED THIS, AND, UH, ERCOT IMPLEMENTED A FIX ON MARCH 8TH THAT RESOLVED THIS ISSUE, UH, IT TOOK EFFECT ON MARCH 8TH, UH, FOR REALTIME AND THEN FOR DAM ON MARCH 9TH.
THE, UH, POTENTIAL IMPACTED DAYS FOR THE REALTIME MARKET WERE FEBRUARY 8TH THROUGH MARCH 7TH.
AND THE, UH, POTENTIAL IMPACT OF THE DAM WAS FROM FEBRUARY 9TH TO MARCH 8TH.
UPON COMPLETION OF THE INVESTIGATION, ANOTHER NOTICE WAS SENT OUT WITH, UH, MORE DETAILS ABOUT THAT IMPACT ANALYSIS.
AND SINCE, UM, THIS WAS IDENTIFIED, ERCOT HAS IMPLEMENTED ADDITIONAL MODEL VALIDATION STEPS TO ASSURE THIS DOESN'T HAPPEN IN THE FUTURE.
UM, I'LL QUICKLY GO OVER THE REALTIME MARKET IMPACT ANALYSIS, UH, TO BEGIN WITH, SINCE THERE WEREN'T ACTUALLY ANY DAYS THAT WERE, UM, THAT, THAT MET CRITERIA AND THE CRITERIA THAT NEEDED TO BE MET WAS FOR THE ABSOLUTE VALUE IMPACT, ANY SINGLE COUNTERPARTY MEETING, ONE OF THE FOLLOWING TWO CRITERIA, WHICH IS EITHER 2%, UH, OR GREATER THAN, OH, I'M SORRY, 2% AND GREATER THAN 20,000 OR 20 20% AND GREATER THAN 2000.
UH, OUT OF ALL THE OPERATING DAYS THAT WE LOOKED AT FOR THE REALTIME MARKET, THERE WERE FOUR DAYS THAT, UH, HAD AN ABSOLUTE DOLLAR IMPACT OVER 2000.
UH, BUT NONE OF THE PERCENT IMPACTS WERE ABOVE 2000 FOR THOSE DAYS.
UH, FOR THE DAY AHEAD IMPACT ANALYSIS, WE IDENTIFIED 16 OPERATING DAYS THAT DID MEET CRITERIA, UH, FOR, UH, SEEKING BOARD APPROVAL FOR PRICE CORRECTION.
UM, THIS TABLE HERE SHOWS, UH, THE OPERATING DAYS THAT WE IDENTIFIED, AS WELL AS HOW MANY COUNTERPARTIES, UH, MET CRITERIA FOR THE TWO DIFFERENT, UM, CRITERIA.
AND THIS SLIDE HERE, UH, THIS SHOWS THE ABSOLUTE VALUE IMPACT TO THE HIGHEST, UH, COUNTERPARTY THAT MET CRITERIA, UM, FOR EACH GIVEN OPERATING DAY, AS WELL AS, UH, THE PERCENTAGE, THE HIGHEST PERCENTAGE IMPACT, UH, FOR THOSE DAYS AS WELL.
THE, UM, THE F I'M SORRY, THE MAXIMUM PERCENTAGE CRITERIA ONE, UH, THAT'S THE HIGHEST PERCENT FOR ANY, UH, COUNTERPARTY THAT HAD AN IMPACT OF MORE THAN 20,000.
AND THEN THE CRITERIA TWO WOULD BE THE, ANYTHING, ANY CP THAT MET, UH, ABSOLUTE VALUE IMPACT OF GREATER THAN 2000.
AND, UH, FINALLY, THIS SLIDE HERE SHOWS THE, UH, THE, UH, TOTAL CHANGE IN, UH, CHARGES DUE TO ERCOT.
AND SO A, UH, NEGATIVE AMOUNT FOR THAT DAY WOULD, UH, SHOW A INCREASED PAYMENT TO MARKET PARTICIPANTS IN A POSITIVE AMOUNT, WHICH SHOW, UH, AN INCREASED CHARGE, AND THEN THE, UH, PERCENT OF CHANGE FOR THAT DAY FOR CHARGES.
SO THE NEXT STEPS, UH, ERCOT SEEKS TO APPROVE, UH, SEEKS AN APPROVAL OF CORRECTION FOR DAM PRICES, UM, UH, AT THE RE RELIABILITY AND MARKET COMMITTEE ON JUNE 19TH, AS WELL AS THE BOARD MEETING ON JUNE 20TH, 2023.
ANY QUESTIONS? I DON'T SEE ANY QUESTIONS.
I BELIEVE WE HAVE ONE MORE
UM, I'LL BE GIVING THE FIRM FUEL SUPPLY SERVICE SETTLEMENT REPORT, AND THIS REPORT IS IN RESPONSE TO PROTOCOL SECTION 3 14 5, UH, PARAGRAPH 10 ON AN ANNUAL BASIS.
AFTER THE FFF S S SEASON, ERCOT IS REQUIRED TO PROVIDE THE REPORT THAT SEPARATELY, UH, DESCRIBES THE TOTAL AMOUNT FOR THE FUEL REPLACEMENT COSTS, AS WELL AS A, A SEPARATE AMOUNT FOR THE HOURLY.
AND THE REPORTS IN RESPONSE TO SECTION 3 14 5, PARAGRAPH EIGHT, WHICH DESCRIBES THE DETAILS OF THE ACTUAL F F S S DEPLOYMENT WERE PROVIDED TO TACK IN ON JANUARY 24TH AND FEBRUARY 20.
[03:20:01]
OF, UH, BACKGROUND ON THE ACTUAL F F S S PROCUREMENT.UH, THE OBLIGATION PERIOD WAS FROM NOVEMBER 15TH, 2022 THROUGH MARCH 15TH, 2023 19.
GENERATION RESOURCES WERE AWARDED AS PRIMARY FFF SSRS.
THE CLEARING PRICE WAS AT $6 AND 19 CENTS PER MEGAWATT PER HOUR.
UH, A LITTLE UNDER 3000 MEGAWATTS OF CAPACITY WAS PROCURED, AND THE TOTAL COST OF PROCUREMENT WAS APPROXIMATELY 52.84 MILLION.
SO, THE DETAILS ABOUT THE SETTLEMENT, THE STANDBY FEE PAID IS 52.23 MILLION AND RELATED TO THE FUEL REPLACEMENT COSTS, THE FIRST WATCH WAS $209,000.
AND UNDER THE SECOND WATCH, IT'S 4.6 MILLION.
THE ESTIMATED STANDBY FEE THAT WE WILL BE CALLING BACK IS GONNA BE APPROXIMATELY 25.7 MILLION, WHICH BRINGS THE TOTAL PAYMENT FOR THE FIRM FUEL SUPPLY SERVICE AT $31.3 MILLION.
SO, UM, IF YOU NOTICE THAT THE STANDBY FEE, UH, IN THAT FIRST LINE AT 52.2 MILLION IS A LITTLE BIT LESS THAN THE PROCUREMENT THAT WAS LISTED ON THE PREVIOUS SLIDE, AND THAT'S DUE JUST TO THE AVAILABILITY FACTOR OF SOME RESOURCES WEREN'T AVAILABLE MORE THAN 90%, SO THEIR STANDBY FEE WAS FLAWED BACK.
UM, TO COME BACK A LITTLE BIT TO REFLECT THAT IN REGARDS TO THE FUEL REPLACEMENT COSTS, THE FIRST WATCH, THOSE, UH, THAT $209,000 HAS ALREADY BEEN SETTLED.
AND UNDER THE SECOND WATCH, 4.38 MILLION WILL BE SETTLED ON THE JULY 31ST INVOICE.
AND THE REMAINING 176,000 WILL BE SETTLED ON THE AUGUST 1ST INVOICE.
AND FOR THE CLAWBACKS, ALL OF THOSE CALLBACKS WILL, WILL BE REFLECTED ON THE TRUEUP STATEMENTS FOR ALL OPERATING DAYS THAT, UH, ARE IN THE OBLIGATION PERIOD.
AND SETTLEMENT FOR THOSE CLAWBACKS BEGAN, UH, MAY 15TH, AND THEY WILL END ON SEPTEMBER 11TH.
WHO, UH, NOW FOR THE REASON FOR THE CLAWBACK PER PROTOCOL SECTION 8 1 11 216 UNDER PARAGRAPH FIVE, IF THE F F S S R DOES NOT REFLECT THAT IT'S AVAILABLE THROUGH ITS AVAILABILITY PLAN FOR HOURS IN WHICH ERCOT ISSUED A WATCH, THEN ERCOT WILL CLAW BACK 90 DAYS OF THE STANDBY FEE THAT WAS PAID, UNLESS THE F F S S R SUCCESSFULLY DEPLOYED FOR THE ENTIRE AWARD OBLIGATION AND EXHAUSTED THEIR EMISSIONS HOURS PER THE RF UNDER PARAGRAPH NINE.
IF THE F F S S R FAILS TO COME ONLINE OR STAY ONLINE DURING THE DEPLOYMENT DUE TO A NON-FUEL RELATED ISSUE, THEN ERCOT WILL CLAW BACK, UH, 15 DAYS AT THE STANDBY FEE.
SO OF THAT, UH, TOTAL CLAWBACK AMOUNT, EIGHT RESOURCES RECEIVED THOSE FALLBACK CHARGES.
SEVEN OF THEM WERE RELATED TO PARAGRAPH FIVE, AND ONE OF THEM WAS RELATED TO PARAGRAPH NINE, AND THAT IS THE CONCLUSION OF MY PRESENTATION.
AND I STILL DON'T SEE A QUEUE.
[10. Credit Finance Sub Group (CFSG) Report (Vote)]
UM, I BELIEVE THAT TAKES US TO THE END OF OUR REPORT.I BELIEVE BRENDAN IS ONLINE NOW.
SO WE WERE GONNA CIRCLE BACK TO THE CREDIT FINANCE SUBGROUP REPORT.
BRENDAN, ARE YOU READY? UH, YES.
HELLO? CAN YOU HEAR ME? YES, WE CAN HEAR YOU.
I WANT YOU TO HAVE PROBLEMS AT THIS MEETING.
UH, BUT THIS IS FROM OUR, THIS UPDATES FROM OUR 21 APRIL MEETING.
WE DID HAVE ONE ON 17 MAY THAT, UH, I'LL PROVIDE A FEW UPDATES THAT AREN'T ON THESE SLIDES.
UM, WE REVIEWED FIVE NPRS FOR THE CREDIT IMPACT.
UH, WE, WE HAD A VOTE ON 1165 AT OUR MAY 17TH MEETING.
UH, ERCOT PROVIDED AN UPDATE ON CHANGING THEIR COLLATERAL FORMS. ERCOT ALSO PROPOSED AN NPR R THAT'S NOW PUBLISHED ON BACKGROUND CHECKS.
AND, UM, ME MEMBERSHIP HAD A QUESTION ABOUT, UM, INTEREST CALCULATION ON COLLATERAL HELD AND OUR REGULAR CREDIT EXPOSURE UPDATES.
I'LL JUST LET YOU LOOK AT THESE QUICKLY.
UM, THESE WERE ALL CONSIDERED, UH, OPERATIONAL WITHOUT CREDIT IMPLICATIONS.
NO, I'LL WAIT UNTIL YOU ENTER YOUR PRESENTATION.
UM, SO THIS IS, UH, NPR STRENGTHENS, UH, MARKET ENTRY ELIGIBILITY AND QUALIFICATIONS FOR REQUIREMENTS FOR COUNTERPARTIES QCS, CR ACCOUNT HOLDERS.
[03:25:01]
MINIMUM CAPITALIZATION REQUIREMENTS, REQUIRES ALL COUNTERPARTIES TO POST INDEPENDENT AMOUNTS.UH, REMUS REMOVES REFERENCES TO GUARANTORS, UH, CLARIFYING REQUIREMENT FOR FINANCIAL STATEMENTS, AND, UH, IT'S LOOKING AT I F R S AND RETIRING THE INTERNATIONAL ACCOUNTING STANDARDS.
SO, GOING FORWARD FOR OUR PARTIES, UH, SEEKING TO PARTICIPATE IN ALL OUR CAR MARKETS OF INDEPENDENT AMOUNT, UH, TO PART IN ALL EXCEPT FOR CR IS 200,000.
UH, AND WE DID HAVE A VOTE ON THIS MAY 17TH.
I'M NOT SURE IF THIS NEEDS TO GO TO THE COMBO BALLOT OR NOT.
UH, IT DID PASS, UM, SEVEN TO ONE WITH TWO ABSTENTIONS.
UH, SO, UM, IF YOU WANNA CONSIDER THAT, UM, UH, NEXT SLIDE PLEASE.
UH, ERCOT IS INTERNALLY CHANGING ITS COLLATERAL FORMS, UH, AND, AND AS WITH 1165, UM, BACK IN DECEMBER, I THINK THEY GOT RID OF THE, UH, UNSECURED CREDIT, WHICH HAD A MAXIMUM OF $50 MILLION UNDER 1112.
SO THEY'RE, UH, UPDATING THEIR THIRD PARTY GUARANTEES, UM, AND, UH, GETTING RID OF THE, UH, UNSECURED CREDIT AND, UH, SATISFYING A FINANCIAL STATEMENT REQUIREMENT.
UM, ERCOT IS PROPOSING TO ELIMINATE THE GUARANTEE AGREEMENTS, UH, LATER EITHER THE EFFECTIVE NPR 1165 OR OCTOBER 1ST, 2023.
UM, SO YES, I THINK WE'RE, WE'RE LOOKING AT, UH, VOTING ON 1165 TODAY.
UH, ERCOT IS ALSO PUBLISHED A NPR 1175, UH, ON MARKET ENTRY QUAL FINANCIAL QUALIFICATIONS AND CONTINUED PARTICIPATION REQUIREMENTS.
SO, UH, LONG STORY SHORT, TH THIS WAS FROM A PREVIOUS NPR ON, UM, BACKGROUND CHECKS STEMMING FROM THE GREEN HAT, UM, INCIDENT IN PJM.
AND SPECIFICALLY WHAT THIS ONE'S TRYING TO DO IS TO, UH, CREATE A BACKGROUND CHECK PROCESS.
SO PART OF THE REVIEW OF CURRENT AND PROSPECTIVE COUNTERPARTY REVIEW, CURRENT AND PROSPECTIVE COUNTERPARTIES, WHETHER THEY MIGHT PROPOSE AN UNREASONABLE FINANCIAL RISK TO ERCOT, UH, AUTHORIZES TO SUSPEND THE QUEASY OR ACCOUNT HOLDER IF THEY ARE AN UNREASONABLE FINANCIAL RISK, AND TERMINATE THE REGISTRATION, UH, IF IT'S DEEMED AN UNREASONABLE FINANCIAL, UH, RISK.
UM, SO WE'RE STILL DISCUSSING THIS.
IT, IT HAS COALESCED, UH, INTO AN NPR THAT, UH, ERCOT, UH, PROMULGATED.
UM, AND WE WILL CONTINUE TO DISCUSS THIS.
UH, MARK HALLER FROM TENASKA, UH, BROUGHT UP AN INTERESTING POINT.
YOU KNOW, NOW WE'RE, UH, IN A DIFFERENT INTEREST RATE ENVIRONMENT, UH, POSTING SUBSTANTIAL AMOUNTS TO ERCOT.
UH, SO I, I BELIEVE THE PREVIOUS ARRANGEMENT WAS FOR ERCOT TO PAY ANNUALLY, AND NOW IT'S MOVING TO MONTHLY.
UH, IT REMOVED AND, UH, CHANGE THE AVERAGE CASH BALANCES TO COLLATERAL HELD AT, UM, AT, AT, UH, CLOSE OF BUSINESS DAILY.
UM, SO WE'RE CONTINUING TO DISCUSS THAT, UH, UH, COLLATERAL INTEREST PIECE.
UH, THERE'S NOTHING MUCH TO REPORT AS FAR AS THE MONTHLY HIGHLIGHTS FROM MONTH TO MONTH.
AGAIN, THIS IS FEBRUARY TO MARCH.
UM, THE TPE DECREASED FROM 1.22 BILLION TO ONE.
UH, THIS IS JUST MARCH, MARCH PEAK EXPOSURE, ROLLING OFF, UH, THE DISCUSSIONARY COLLATERAL.
WE'LL SEE THAT NEXT, UH, NEXT SLIDE, PLEASE.
UH, WELL, WE'LL, WE'LL SEE THAT IN A SECOND.
UM, THIS JUST SHOWS THE, UH, HOW THE COLLATERAL PLAYS COLLATERAL, UH, IS RELATIVE TO THE, UH, POTENTIAL EXPOSURE.
UM, THE MAX IS THE BLACK LINE AND THE, UH, YOU CAN SEE MOST OF THE COLLATERAL HELD IS, UH, LETTERS OF CREDIT, UM, ON CASH WITH A FEW, UH, UNSECURED GUARANTEES, WHICH ARE, WILL BE GOING AWAY SHORTLY.
UM, ALL THAT UNSECURED CREDIT WILL BE GOING AWAY SHORTLY.
UM, AND THERE'S SOME SURETY BONDS.
[03:30:01]
COLLATERAL THAT, UH, WE REVIEW ROUTINELY.THE BLUE LINE SORT OF, UH, REFLECTS WHAT IS POSTED ABOVE, UM, ANY REQUIREMENTS, UH, CR R LOCKS POTENTIAL EXPOSURE AND, UH, DAM EXPOSURE.
BUT THAT EXPOSURE IS, UH, THAT, THAT DELTA, YOU KNOW, ALLOWS PARTICIPATION TO THE DAY AHEAD MARKET.
UH, SO IT LOOKS LIKE WE GOT, UH, ERIC AND SETH C**K.
UM, I THINK WE THINK WE REFERRED, UM, AT P RS SOME ITEMS TO WMSS THAT WERE CREDIT ISSUES FROM MARKETING CREDIT WORKING GROUP.
AND SO I WONDER IF WE CAN JUST ASK, UM, FOR THE TECH LEADERSHIP AND PRS LEADERSHIP TO KIND OF MAYBE ADMINISTRATIVELY REFER THOSE OVER TO THIS NEW GROUP.
UM, THAT THERE, I THINK THERE'S SOME THINGS THAT ARE IN LIMBO ON THE WMS AGENDA ITEMS. UM, AND I DON'T KNOW IF WE NEED TO GET INTO THE DETAILS HERE, BUT I, I JUST HOPE THAT THE LEADERSHIP OF THOSE TWO GROUPS CAN, UM, CORRECT THE RECORD WITHOUT NEEDING TO TAKE VOTES.
HAPPY TO TAKE VOTES IF WE NEED TO, BUT IT SEEMS UNNECESSARY.
I, I, I DON'T THINK ANYBODY WANTS US TO LOSE OUR UNSECURED CREDIT
I KNOW THERE HAVE BEEN SOME QUESTIONS ON HOW THINGS GET REFERRED TO, TO THIS NEW GROUP AND BACK.
UM, AND SO WE CAN WORK WITH PRS LEADERSHIP ON THAT.
AND I JUST WANTED TO POINT TO COREY'S NOTE.
UM, AND, AND THE CHAT BOX, JUST FOR CLARITY, UM, THE, THE NPR R THAT BRENDAN REFERENCED 1165 IS TABLED.
AND SO THE, THE TASK FOR, OH, FOR THE CREDIT FINANCE GROUP WAS TO GIVE FEEDBACK TO PRS.
WE ARE NOT TAKING A VOTE ON THAT.
UH, TODAY AT TECH, THE, THE ONLY VOTING ITEMS FROM THIS GROUP AT TECH TODAY, I BELIEVE ARE THE, THE LEADERSHIP AND THE MEMBERSHIP.
AND I BELIEVE THOSE ARE ON THE, THE BALLOT.
IS THAT ALL CORRECT, COREY? YOU GOT IT.
I WAS RESPONDING TO, UM, AN, IM FROM SOMEONE PRIVATELY ASKING WHERE THE CALLBACK CHARGES WILL BE, UH, SHOWN ON THE STATEMENTS.
ARE THERE ANY OTHER, UH, QUESTIONS OR COMMENTS FOR BRENDAN? ALL RIGHT.
DO WE HAVE BRENDA? HEY CAITLIN, THIS IS ANN.
DO WE HAVE ANY, UH, CF SG MEMBERSHIP TO APPROVE? I DIDN'T SEE.
UM, WE HAVE LEADERSHIP FOR TODAY.
I HAVE APPROVAL OF MEMBERSHIP STILL ON MY LIST.
UM, BRENDAN, DID WE HAVE A, A LIST OF NEW MEMBERS FROM THE, THE CF SG? I HAVE TWO MEMBERS THAT SENT ME STUFF HERE.
LET ME JUST PUT THEM IN THE QUEUE REAL QUICK.
UM, THANKS ANNE FOR REMINDING ME.
BRENDAN, IS IT POSSIBLE WE COULD GET THE, THE COMPANY ASSOCIATIONS? OH, THEY'RE, UH, YEAH, IT'S DUKE.
THEY'RE, YEAH, THEY'RE BOTH FROM DUKE.
AND THE WAY THIS IS WORKING IS WE'RE JUST GOING TO, I THINK AT, AT EACH TECH MEETING, KIND OF APPROVE THE ONGOING UPDATED MEMBERSHIP IF THERE ARE ADDED MEMBERS IN THE INTERIM.
AND TODAY, I BELIEVE WE HAVE TO APPROVE LEADERSHIP AS WELL.
COREY, DO WE NEED TO DO ANYTHING ELSE TO GET THIS ONE WITH COMBO BALLOT? I JUST WANTED TO CLARIFY, ARE THERE TWO MEMBERS FROM DUKE? I THOUGHT EACH COMPANY COULD ONLY ASSIGN ONE MEMBER AS A VOTING MEMBER.
[03:35:04]
YEAH.THEY WERE BOTH FROM, LET ME JUST LOOK HERE.
UH, YES, THEY'RE BOTH FROM DUKE ENERGY RENEWABLES.
SO I GUESS, I THINK WE'LL HAVE TO FIGURE THAT OUT AND BRING IT BACK FOR A VOTE.
CUZ I BELIEVE THE CMS CHARTER SAYS THAT WE CAN ONLY ASSIGN ONE.
EACH COMPANY CAN ONLY HAVE ONE.
AND THEN I CLARIFY FOR LEADERSHIP.
IS THAT CORRECT? YES, THAT IS TRUE.
AND I'LL, I'LL GRAB THAT FROM THE COVER PAGE AND DROP THAT INTO THE COMBO BALLOT TO MAKE IT A LITTLE MORE CLEAR.
I WAS WONDERING IF WE COULD MAYBE JUST SEE THAT ON THE COMBO BALLOT RIGHT NOW.
SO FOR CLARITY, WE WON'T BE TAKING A VOTE ON MEMBERSHIP TODAY.
WE'LL, WE'LL HAVE TO SEND THAT BACK TO THE GROUP.
UM, AS, AS I BELIEVE WE BELIEVE THE CHARTER SAYS ONE PERSON PER COMPANY, AND WE WILL BE VOTING ON LEADERSHIP AND HOPEFULLY COREY CAN PULL THAT UP FOR US.
AND SO THAT'S WHAT THAT WOULD LOOK LIKE.
IF THERE ARE NO ISSUES WITH THAT, I THINK WE CAN GO AHEAD AND CONTINUE.
[12. Other Business]
ARE ONTO OTHER BUSINESS, ANNE.UM, SO THIS IS, WE'RE GONNA DISCUSS INCORPORATION OF OBDS INTO THE PROTOCOLS AND GUIDES.
WE DISCUSSED THIS AT P RS EARLIER THIS MONTH, BUT WANTED TO BRING IT TO T VISIBILITY.
UM, THE NPR AND GUIDE REVISIONS THAT INCORPORATE PC APPROVAL WILL BE EFFECTIVE JUNE 1ST.
UM, P C APPROVAL WILL ALSO BE REQUIRED OF THE OBD SINCE THEY ARE BITING DOCUMENTS.
UM, SO WE'RE WORKING ON AN EFFORT TO INCORPORATE THE OBDS INTO EITHER THE PROTOCOLS OR GUIDES.
RIGHT NOW WE'RE WORKING INTERNALLY TO KIND OF SCRUB THAT LIST AND SEE WHAT REALLY NEEDS TO BE ON THAT LIST.
AND WE'LL TAKE ANY RE RECOMMENDATIONS OR SUGGESTIONS TO P R S AND THEN WE'LL START FILING REVISION REQUESTS TO GET THEM INCORPORATED INTO THEIR APPROPRIATE PLACES.
SO STAKEHOLDERS WILL STILL SEE THESE AS REVISION REQUESTS AS THEY GO THROUGH THE PROCESS, AND THEY CAN FILE COMMENTS, UM, THROUGH THE REGULAR PROCESS.
ANY QUESTIONS, ERIC? YEAH, I, AS I TOLD YOU AT PRS, I DEFINITELY SUPPORT THIS PROCESS.
UM, I JUST WONDER IF IT'D BE HELPFUL TO GET A PREVIEW OF INTENTIONS BEFORE YOU FILE THE REVISION REQUEST IN CASE THERE'S, YOU KNOW, DISAGREEMENT OR CONFUSION.
SO LIKE, IF, IF YOU WERE TO LIKE, HAVE A SPREADSHEET TO SAY THAT THIS OB D R OR THIS GUIDE OR THIS GUIDE SECTION IS APPROPRIATE FOR THE PROTOCOLS OR MAYBE APPROPRIATE FOR DELETION AND PEOPLE CAN TALK IT THROUGH IN ADVANCE.
I DON'T WANNA CREATE WORK FOR THE SAKE OF CREATING WORK, BUT GIVEN THIS THE MAGNET OF THIS, THIS, UH, PROJECT, I MIGHT SAVE SOME TIME.
I, I DEFER TO YOU IF YOU THINK IT WOULD BE IT WOULD OR NOT, BUT YEAH, WE'LL DEFINITELY TAKE THAT INTO CONSIDERATION.
I THINK WE WERE GONNA, YOU KNOW, SOME OF 'EM ARE PRETTY OBVIOUS, BUT YEAH, IF WE, IF WE WANNA TAKE A SCRUB LIST OR SOMETHING LIKE THAT TO P RS, WE CAN, I THINK WE TOLD PRS WOULD WE DO THAT LAST TIME? OKAY.
I DON'T SEE ANYONE ELSE IN THE QUEUE
[13. Combo Ballot (Vote)]
WITH THAT, I THINK WE CAN, UH, TAKE A MOTION AND SECOND ON THE COMBO BALLOT.WOULD ANYONE LIKE TO MAKE THE MOTION FOR THE COMBO BALLOT? I SEE IT FROM BRIAN.
SAM, DO WE HAVE A SECOND? DAVID KEY THE COURT.
WE HAVE A MOTION FROM BRIAN SANDS AND A SECOND FROM DAVID KEY.
SO ON THE MOTION TO APPROVE THE COMBO BALLOT, WE WILL START UP WITH CONSUMERS, WITH MARK.
[03:40:01]
CHRISTIAN? YES.AND THEN AS CLIFF WAS EXITING THE PARTY, HE TAGGED MIKE AS HIS PROXY.
ONTO OUR INDEPENDENT GENERATORS.
UH, YES, AND ALSO JUST APOLOGIES TO TACK FOR DROPPING SERVICE EARLIER, UM, TODAY.
STILL WITH US? IRA STILL? YES.
AND JUST, UH, A PROGRAMMING NOTE, WE WILL HAVE THAT ADDITIONAL WORKSHOP ON NPR 1177 THAT WAS REQUESTED WITH THE TABLE.
WE ARE TENTATIVELY PLANNING FOR JUNE 5TH.
UM, BUT WE WILL SEND OUT A MARKET NOTICE AND IT WILL BE SOMETIME THAT WEEK, IF NOT JUNE 5TH.
WHAT, IS THIS A WORKSHOP OR IS THIS A MEETING? IT'S A MEETINGS.
UM, WELL IF NOBODY HAS ANY MORE QUESTIONS OR COMMENTS, WE CAN GO AHEAD AND ADJOURN AND LOOK FOR THAT MARKET NOTICE FOR THE SUPPLEMENTAL MEETING WHERE WE WILL NEED TO TAKE A VOTE ON 1177, UH, HOPEFULLY JUNE 5TH.