* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.
          [00:00:03]
          I THINK YOU CAN GO AHEAD AND START WHENEVER YOU'RE READY, BOB. 
          GREAT. 
          OKAY. 
          IT'S LONELY UP HERE, BUT GOOD 
          [1. Call General Session to Order]
MORNING. 
          WELL, I GUESS IT'S GOOD AFTERNOON NOW. 
          UM, MEMBERS OF THE RELIABILITY AND MARKETS COMMITTEE AND GUESTS, THIS IS BOB FLEXON, COMMITTEE CHAIR. 
          WELCOME TO THE OCTOBER 16TH, 2023 RELIABILITY AND MARKETS COMMITTEE MEETING. 
          I HEREBY CALL THIS MEETING TO ORDER. 
          THIS MEETING IS BEING WEBCAST LIVE TO THE PUBLIC ON OUR CO'S WEBSITE. 
          AND I PRESUME WE DO NOT HAVE A QUORUM. 
          WE DO HAVE A QUORUM. 
          OH, WE DO. 
          OH, THE COMMISSION. 
          WE DO NOT. 
          YEAH. 
          SORRY. 
          WE HAVE A QUORUM OF THIS COMMITTEE. 
          OKAY. 
          BEFORE MOVING ON TO TODAY'S BUSINESS, I'D LIKE TO HIGHLIGHT THE COMMITTEE MEMBERS THAT THE ANTITRUST ADMONITION AND SECURITY MAP ARE INCLUDED WITH THE POST MEETING MATERIALS. 
          FIRST ORDER OF BUSINESS ON TODAY'S AGENDA IS ITEM NUMBER TWO. 
          NOTICE OF PUBLIC COMMENT, IF ANY. 
          TODAY'S MEETING AGENDA WAS POSTED PUBLICLY ON OCTOBER 9TH AND PROVIDED INSTRUCTIONS FOR THE PUBLIC FOR COMMENTING IN PERSON. 
          TO DATE, NO ONE HAS EXPRESSED AN INTEREST IN COMMENTING. 
          IS THAT CORRECT, JOHN? THAT'S CORRECT. 
          NEXT IS AGENDA ITEM 
          [3. August 30, 2023 General Session Meeting Minutes]
NUMBER THREE. 
          AUGUST 30TH, 2023. 
          GENERAL SESSION MEETING MINUTES. 
          THERE'S A DRAFT IN THE MEETING MATERIALS. 
          DOES ANYONE HAVE ANY COMMENTS ON, ON THE MINUTES OR WISH TO MAKE A MOTION? CARLOS MOVES SECOND. 
          JULIE. 
          SECONDS. 
          ALL IN FAVOR? AYE. 
          ANY OPPOSED OR ABSTENTIONS? THE MINUTES ARE PASSED. 
          AGENDA 
          [4. Recommendation regarding R&M Committee Charter]
ITEM NUMBER FOUR, RECOMMENDATION REGARDING R AND M COMMITTEE. 
          CHARTER IS A VOTING ITEM. 
          DURING THE COMMITTEE'S AUGUST MEETING, COMMENTS WERE INVITED REGARDING DRAFT REVISIONS TO THE COMMITTEE CHARTER, THAT LEGAL INCLUDED IN THE MEETING MATERIALS. 
          THE REVISIONS ARE ALSO IN TODAY'S MEETING MATERIALS AND PRIMARILY REMOVE PROVISIONS FOR INCORPORATION INTO A CHARTER FOR THE TECHNOLOGY AND SECURITY COMMITTEE, WHICH THE BOARD APPROVED THE FORMATION OF AT ITS MEETING ON AUG AUGUST 31ST, 2023. 
          THE REVISIONS ALSO PROPOSED TO CLARIFY DETAILS OF THE R AND M COMMITTEE'S, CONSIDERATION OF CERTAIN REVISION REQUESTS RECOMMENDED BY THE TECHNICAL ADVISORY COMMITTEE FOR BOARD APPROVAL. 
          JUST AS A HEADS UP, THERE MAY BE FURTHER UPDATES TO THIS LANGUAGE IN THE FUTURE AS WELL AS REVISIONS TO THE BOARD POLICY AND PROCEDURES AND PROTOCOL SECTION 21, BASED ON ONGOING DISCUSSIONS ABOUT THIS PROCESS SINCE THE AUGUST MEETING, ERCOT LEGAL RECEIVED NO FURTHER COMMENTS REGARDING THE CURRENT REVISIONS. 
          DOES ANYONE HAVE ANY COMMENTS OR WISH TO MAKE A MOTION? SO MOVED. 
          JULIE MOVES SECOND. 
          CARLOS SECONDS. 
          ALL IN FAVOR? AYE. 
          ANY OPPOSED OR ABSTENTIONS? THE CHARTER IS APPROVED. 
          THE PURPOSE OF AGENDA ITEM 
          [5. Notice of Annual Committee Self-Evaluation Questionnaire]
NUMBER FIVE, THE NOTICE OF ANNUAL COMMITTEE SELF-EVALUATION QUESTIONNAIRE IS TO DRAW THE COMMITTEE MEMBER'S ATTENTION TO THE 2023 ANNUAL COMMITTEE SELF-EVALUATION QUESTIONNAIRE. 
          THE CONTENTS AND FORMAT OF WHICH THE COMMITTEE REVIEWED DURING OUR MEETING ON APRIL 17TH, 2023. 
          ERCOT STAFF WILL ELECTRONICALLY ADMINISTER THE QUESTIONNAIRE TO COMMITTEE MEMBERS FOLLOWING TODAY'S MEETING AND THE COMMITTEE WILL REVIEW AND THE COMMITTEE WILL REVIEW RESULTS DURING THE MEETING SCHEDULED FOR DECEMBER 18TH, 2023 AT THE AUGUST BOARD MEETING, THE BOARD ALSO APPROVED CHANGES TO MEMBERSHIP OF COMMITTEES IN CONNECTION WITH THE FORMATION OF THE NEW T N S COMMITTEE. 
          FEEDBACK FROM THE FORMER R AND M COMMITTEE MEMBERS IS ENCOURAGED DURING THIS YEAR'S EVALUATION OF THE R AND M COMMITTEE. 
          WOULD ANYONE LIKE TO SHARE ANY FINAL FEEDBACK REGARDING THE CONTENT OF THE QUESTIONNAIRE? HEARING NONE WILL. 
          NEXT UP IS AGENDA 
          [6. Recommendations regarding Non-Unanimous and other Selected Revision Requests Recommended by TAC for Board Approval]
ITEM NUMBER SIX, RECOMMENDATION REGARDING NON UNANIMOUS AND OTHER SELECTED REVISION REQUESTS RECOMMENDED BY THE TECHNICAL ADVISORY COMMITTEE FOR BOARD APPROVAL. 
          THERE'S ONE REVISION REQUEST UNDER THIS ITEM N P R 1186 IMPROVEMENTS PRIOR TO THE R T C PLUS B PROJECT FOR BETTER E S R STATE OF CHARGE AWARENESS ACCOUNTING AND MONITORING. 
          IN AUGUST, THE BOARD REMANDED N P R 1186 TO TAC TO ADDRESS THE DE THE DEPLOYMENT ISSUE DISCUSSED DURING THE AUGUST 30TH COMMITTEE MEETING AND THE AUGUST 31ST BOARD MEETING, WHICH INCLUDED PRESENTATIONS ON BEHALF OF TAC ERCOT AND M LP TODAY, TAC CHAIR CLIFF LANG WILL PRESENT THE TAC REPORT AFTER WHICH ERCOT STAFF AND IAN WILL ADDRESS THE COMMITTEE. 
          SO, CLIFF, 
          [6.1 TAC Report regarding Non-Unanimous and Other Selected Revision Requests Recommended by TAC for Board Approval]
WE'LL START WITH YOU. 
          PLEASE PROCEED WITH TAX REPORT ON N P R R 1186. 
          ABSOLUTELY. 
          AND GOOD AFTERNOON, EVERYONE. 
          AFTERNOON. 
          SO, AS YOU ALREADY MENTIONED, UH, TAC DID, UH, RECONSIDER 11 N P R R 1186 BASED ON THE REMAND. 
          AND AS YOU NOTE NOTED, THIS WAS REMANDED SPECIFICALLY TO, UH, CONSIDER THE STRANDED ENERGY ISSUE 
          [00:05:01]
THAT WAS BROUGHT UP DURING THE LAST BOARD MEETING. 
          UH, SPECIFICALLY WHEN THAT OCCURS DURING SCARCITY EVENTS, THERE WERE FIVE SETS OF COMMENTS THAT WERE FILED THAT TAC CONSIDERED, INCLUDING THOSE THAT WERE FILED BY ERCOT AND ERCOT WILL BE DISCUSSING THOSE HERE IN JUST A LITTLE BIT. 
          SO I WON'T SPEND, UH, TIME DISCUSSING THOSE. 
          UH, AS PART OF THE DISCUSSION, TAC DID DISCUSS THE MERITS OF THE CHANGES, UM, PARTICULARLY IN, UH, IN LIGHT OF, OF THE, UH, PARTICULARLY IN LIGHT OF THE, THE FACT THAT THE, THE CHANGES WENT, UH, I THINK FURTHER THAN WE EXPECTED THEM TO GO IN THAT REGARD. 
          SO WE DID HAVE QUESTIONS REGARDING THE INTENT, UH, OF THOSE CHANGES, UH, SINCE THEY DID, UH, GO FURTHER THAN IT ACTUALLY EXPECTED. 
          AND, AND ACTUALLY WENT BEYOND JUST, UH, THE SCARCITY EVENTS. 
          WE SPENT A FAIR AMOUNT OF TIME ALSO DISCUSSING COMPLIANCE METRICS. 
          WE, UH, THOSE WERE INCLUDED IN THE COMMENTS TO THE N P R R, UH, THAT ERCOT INTENDS TO SEEK FROM THE BOARD. 
          AND I BELIEVE, UH, YOU'LL HEAR MORE ABOUT THAT HERE IN A LITTLE BIT BIT AS WELL. 
          UH, WE ASKED SOME ADDITIONAL QUESTIONS AS WELL REGARDING ERCOT COMMENTS THAT WERE IN THERE REGARDING FUTURE LIMITS TO AS PROVISION FROM E R S RESOURCES, UM, OR E S R RESOURCES RATHER, AND POTENTIAL INCREASES IN ANCILLARY SERVICES FOR FAILURE TO MAINTAIN STATE OF CHARGE. 
          UH, WE HAD AN ALMOST UNANIMOUS DECISION. 
          UH, WE DID HAVE ONE OPPOSING VOTE, UH, DID WANT TO SHARE THOSE WITH YOU. 
          UH, THAT THOSE REASONS INCLUDED, UH, A BELIEF THAT IT WAS UNNECESSARY TO HAVE THIS N P R R MOVE FORWARD. 
          UH, THERE'S ALREADY A PENALTY AND, AND SPECIFICALLY, UH, WHAT WAS NOTED IS THAT THERE ALREADY IS A PENALTY MECHANISM IN PLACE FOR THE, FOR FOLKS THAT DON'T PROVIDE THOSE ANCILLARY SERVICES. 
          UM, AND THIS, UH, OPPOSING VOTE FELT THAT, UH, THE PENALTY RISK REALLY NEEDED TO BE MANAGED BY THE Q S E AND TO BE DONE ACROSS ITS PORTFOLIO OF ASSETS. 
          UH, THE OPPOSING VOTE MEM UH, THE OPPOSING MEMBER ALSO INDICATED THAT THEY THOUGHT IT WAS DISCRIMIN, UH, DISCRIMINATORY AGAINST ONE ASSET TYPE, UM, IN, IN THE FACT THAT, UH, WE HAVE A NUMBER OF DIFFERENT, UH, PARAMETERS THAT ERCOT DOES NOT REQUEST FROM OTHER TYPES OF RESOURCES AT THIS POINT IN TIME. 
          THEY THOUGHT IT WAS DISCRIMINATORY TO ASK FOR THOSE TYPES OF PARAMETERS FROM A, FROM AN ENERGY STORAGE RESOURCE AS WELL. 
          AND THEN LASTLY, THOUGHT THAT THIS MIGHT BE A WASTE OF ERCOT RESOURCES, YOU KNOW, AS, AS AN INTERIM MEASURE, MAYBE THERE WAS A BETTER WAY TO DO THIS. 
          UM, THAT, UH, THE FACT THAT WE'VE GOT R T C PLUS B COMING UP ON THE HORIZON, THAT MAYBE THAT WAS A BETTER USE TO BE USING THE ERCOT RESOURCES TOWARDS IMPLEMENTING THAT AS OPPOSED TO IMPLEMENTING AN INTERIM MEASURE THERE. 
          SO AS YOU SEE HERE ON THE SCREEN, A SUMMARY OF THE N P R R AS AS NOTED EARLIER, WE DID, UH, ALMOST UNANIMOUS UNANIMOUSLY APPROVE THIS WITH JUST ONE OPPOSING VOTE. 
          UH, AND THAT'S TAX POSITION ON N P R R 1186. 
          SO, I STAND FOR QUESTIONS ON THIS. 
          QUESTIONS FOR CLIFF? I THINK WE'RE GOOD. 
          OKAY. 
          THANK YOU. 
          THANK YOU CLIFF. 
          DAN WOODFIN, DAN, YOU'RE GONNA PROVIDE ERCOT COMMENTS. 
          GOOD AFTERNOON. 
          UM, APPRECIATE CLOSE, UM, SYNOPSIS THERE. 
          UM, HE'S ALREADY COVERED THIS ONE, SO I'M GONNA SKIP THROUGH IT. 
          SO WHAT WE'RE PROPOSING, WHAT WE PROPOSED TO CHANGE AND WHAT TAC UH, ENDORSED IS THAT WE CHANGED THE, UM, STATED CHARGE REQUIREMENT THAT IS USED FOR, UM, ASSESSING WHAT'S THE, KIND OF THE SUFFICIENT STATE OF CHARGE TO PROVIDE THE SERVICE THAT WE'RE, UH, WE'RE BUYING FROM THEM, FROM THE BOTTOM GRAPH ON THIS SLIDE TO THE TOP GRAPH. 
          AND SO WHAT WE WERE ORIGINALLY PROPOSING THAT WE TALKED TO YOU ABOUT AT THE LAST MEETING WAS THAT TO PROVIDE E C R SS, FOR EXAMPLE, THEY WOULD HAVE TO HAVE, UM, TO SELL, UH, UH, 50 MEGAWATT, UH, OF E C R S. 
          THEY'D HAVE TO HAVE A HUNDRED MEGAWATT HOURS STATE CHARGE AT THE BEGINNING OF A AN HOUR AND COULD ONLY DEPLETE THAT DOWN TO 50 MEGAWATT HOURS BY THE END OF THE HOUR. 
          SO THEY'D HAVE ENOUGH, UH, TO, TO PRO TO PROVIDE THAT 50 MEGAWATTS OVER A TWO HOUR PERIOD. 
          AND SO WHAT WE'VE CH PROPOSED TO CHANGE TO IN ORDER TO SOLVE THIS, UH, UH, ISSUE THAT WE DISCUSSED LAST TIME ABOUT NOT BEING ABLE TO GET TO THE REST OF THAT ENERGY DURING SCARCITY CONDITIONS IS WHAT'S ON THE TOP THERE. 
          WHICH MEANS TO SELL 50 MEGAWATTS, THEY ONLY HAVE TO HAVE 50 MEGAWATT HOURS STATE OF CHARGE, AND THEN THEY CAN DEPLETE THAT DOWN TO ZERO BY THE END OF THE, UH, THAT OBLIGATION HOUR. 
          UM, AND THAT WOULD BE ACROSS THE BOARD. 
          UM, THE, UM, THE ISSUE I GUESS THAT WE HAVE WITH, WITH THAT, THAT IS ALONG, 
          [00:10:01]
ALONG WITH IT, IS THAT WE WOULD NEED TO, UM, MAKE SURE THAT WE'VE GOT ENOUGH TO COVER FUTURE HOURS. 
          SO THERE IS SOME RISK THAT ANY PROPOSED, UM, UH, SHORT DURATION RESOURCES THAT ARE BIDDING IN, IN MULTIPLE HOURS OR ARE, UM, IN MULTIPLE CONSECUTIVE HOURS OR ARE, UH, AND, AND THEY WIND UP GETTING DEPLOYED IN THE MIDDLE OF THAT TIME PERIOD, UH, THEY MIGHT NOT BE ABLE TO CHARGE BACK UP TO PROVIDE THE FUTURE, UH, FOR THE FUTURE TIME PERIOD AS WE THINK WE THINK TO, TO OFFSET THAT RISK. 
          AND WHAT WAS PROPOSED AND, AND, AND ENDORSED BY TAC IS THAT WE, UM, UH, LOOK AT A, UH, INCREASING THE FAILURE TO PROVIDE CHARGE. 
          WE, WE ALREADY, AS, AS WAS MENTIONED BY EVEN THE PERSON THAT VOTED AGAINST THIS ATTACK, WE ALREADY HAVE FAILURE TO, UH, FAILURE TO PROVIDE CHARGES. 
          UM, WHAT WE DON'T INCLUDE IS, AND, AND, AND I GUESS THOSE CHARGES ARE REALLY INTENDED TO LOOK AT, IT'S FAILURE TO BE ABLE TO PROVIDE OKAY, IS REALLY WHAT THEY'RE DOING. 
          AND SO WE WOULD NEED TO ADD AN ADDITIONAL PARAMETER, WHICH IS IN, UH, MAKING SURE THAT THEY'VE GOT THE ABILITY TO, TO PROVIDE IN TERMS OF MAINTAINING STATE OF CHARGE. 
          AND THAT'S JUST A TECHNICAL DIFFERENCE BETWEEN ESRS AND, AND OTHER KINDS OF RESOURCES. 
          AND SO WE WOULD JUST ADD THAT FEATURE THAT, THAT TRACKING OF THAT, UH, INTO THE, THE FAILURE TO PROVIDE, THAT'S ALREADY THERE FOR, FOR ALL OTHER RESOURCES JUST BECAUSE OF THE UNIQUE NA TECHNOLOGICAL NATURE. 
          AND SO, UH, AND THEN WE WOULD ALSO PROPOSE THAT THE BOARD, UH, ORDER US TO DO AN N P R R THAT SPECIFICALLY, UM, SETS UP HOW THAT WOULD BE ADDED. 
          AND THEN WE WOULD ALSO ASK THE BOARD TO ASK US TO, TO DO A, UM, UH, THAT THEY, WE WOULD BE, THEY WOULD BE DISQUALIFIED IF ON MULTIPLE OCCASIONS THEY COULDN'T PROVIDE THE SERVICE. 
          AND SO, AND, AND THAT WOULD BE APPLICABLE TO, UH, OTHER RESOURCES AS WELL. 
          AND SO IT WOULDN'T BE, UM, SPECIFIC TO ESRS. 
          AND SO WE, WE WOULD REQUEST AS KIND OF THE OTHER SIDE OF THIS, SO WE'RE LOOSENING SOME OF THE REQUIREMENTS TO ALLOW BATTERIES TO, UH, NOT ONLY, UM, NOT HAVE THAT ENERGY THAT'S, UH, THAT WE CAN'T GET TO DURING SCARCITY EVENTS, BUT CHANGE KIND OF HOW IT OPERATES, UH, ACROSS ALL HOURS. 
          BUT IN DOING THAT, WE NEED TO MAKE SURE THAT WE'RE MAINTAINING THE RELIABILITY OF THE SYSTEM AND PUTTING THESE FEATURES IN PLACE THAT THIS MONITORING IN PLACE SO THAT WE ENSURE THAT WE CAN MAINTAIN RELIABILITY. 
          AND THAT'S REALLY THE, THE, THE KEY TAKEAWAY OF THIS SLIDE IS WE'RE LOOKING FOR, AND IT'S IN YOUR PACKET THAT, THAT WE'RE LOOKING FOR, UH, UH, TO USE THIS, THIS BOARD PRIORITY N P R R PROCESS TO IMPLEMENT THAT. 
          WE'RE NOT PROPOSING ANY OTHER CHANGES AS PART OF THIS REMAND. 
          UM, THERE ARE SOME OTHER THINGS THAT CLIFF MENTIONED THAT WE, WE TALKED ABOUT AT TAC THAT WE MIGHT NEED TO PUT IN PLACE IF THIS, UH, INCREASING THE FAILURE TO PROVIDE, UH, PENALTIES AND, AND COMPLIANCE ISSUE, UH, MAKING SURE THAT IF THAT DOESN'T WORK, THERE MAY BE SOME OTHER THINGS THAT WE NEED TO DO, BUT WE WANTED TO CLARIFY. 
          WE'RE NOT ASKING FOR THAT AT THIS TIME. 
          UM, IT WOULD BE MORE OF IF WE SEE THAT THAT'S NOT WORKING CORRECTLY. 
          UM, AND SO WITH THAT, I'LL OOPS, OPEN TO ANY QUESTIONS. 
          SO, DAN, IS THERE A DIFFERENCE BETWEEN A SCARCITY PERIOD AND A NONS SCARCITY PERIOD IN TERMS OF STATE OF CHARGE REQUIREMENTS IN, IN, IN THE WAY WE'VE MODIFIED THIS? UH, AND WHAT'S IN THE VERSION THAT THAT'S BEFORE YOU THAT WAS ENDORSED BY TAC. 
          THERE'S NO, THERE'S NO DISTINCTION BETWEEN SCARCITY ISSUES AND SCARCITY INTERVALS AND NONS SCARCITY INTERVALS. 
          OTHER QUESTIONS FOR, FOR DAN? OKAY. 
          OKAY, THANKS DAN. 
          SO NOW I HAVE IAN, 
          [6.1.1 NPRR1186, Improvements Prior to the RTC+B Project for Better ESR State of Charge Awareness, Accounting, and Monitoring]
STEPHANIE, I SEE. 
          YEAH. 
          STEPHANIE, WELCOME BACK. 
          THANKS. 
          THANK YOU FOR YOUR TIME TODAY. 
          UM, IF YOU MIGHT REMEMBER ME FROM LAST TIME, I'M THE C O O AND ONE OF THE OWNERS OF OLIAN, STEPHANIE SMITH. 
          UM, I'M GONNA KEEP IT MUCH SHORTER TODAY, I PROMISE. 
          DON'T, DON'T WORRY. 
          UM, WHEN ERCOT FIRST FILED N P R 1186, THE STATED PURPOSE WAS TO INCREASE TELEMETRY TO IMPROVE OUR COST'S VISIBILITY. 
          IT HAS EVOLVED TO BE A RESTRICTION ON BATTERY OPERATIONS AND INCLUDES DISCRIMINATORY COMPLIANCE OBLIGATIONS THAT WE BELIEVE 
          [00:15:01]
WILL CREATE MANY UNINTENDED CONSEQUENCES, UNINTENDED CONSEQUENCES THAT WILL COST THE GRID RELIABILITY OFTEN WHEN IT IS NEEDED MOST. 
          AND THAT WILL COST THE STATE OF TEXAS FUTURE INVESTMENT IN THE DEVELOPMENT AND CONSTRUCTION OF BATTERIES, ESPECIALLY MULTI-HOUR BATTERIES. 
          WHILE WE APPRECIATE KOTS CORRECTION OF IN ITS COMMENTS OF SEPTEMBER 19TH, THE LIMITED CHANGES DO NOT SUFFICIENTLY ADDRESS THE RISKS AND THE DISCRIMINATORY NATURE OF THE PROTOCOL REVISIONS. 
          ERCOT STILL HAS NOT SHOWN ANY DATA AROUND ACTUAL FAILURES OF BATTERIES TO PROVIDE ANCILLARY SERVICES. 
          SO WE STILL DON'T EVEN KNOW THE REAL PROBLEM IN P R R 1186 IS PURPORTING TO SOLVE. 
          ERCOT CONSISTENTLY CLAIMS THAT BATTERIES ARE FAILING TO PROVIDE STATE OF CHARGE FOR THEIR ANCILLARY SERVICES OBLIGATIONS, BUT THIS IS MISLEADING TO ANYONE NOT STEEPED IN THE ISSUE. 
          THAT IS BECAUSE ONE, CURRENTLY THERE IS NO STATE OF CHARGE REQUIREMENT, SO BATTERIES CANNOT BE FAILING TO PROVIDE IT. 
          AND TWO, ERCOT HAS NOT PROVIDED ANY EVIDENCE THAT BATTERIES ARE FAILING MORE THAN ANY OTHER RESOURCE TYPE TO PROVIDE THEIR AWARDED AND DISPATCHED ANCILLARY SERVICES. 
          TO BE CLEAR, THIS N P R R IMPOSES DISCRIMINATORY TREATMENT ON ESRS THROUGH THE REVISIONS TO SECTION EIGHT OF THE PROTOCOLS. 
          MANY STAKEHOLDERS BELIEVE THAT DISCRIMINATORY TREATMENT WILL NOT OCCUR UNTIL ERCOT IMPLEMENTS FUTURE NRR TO MAKE THE COMPLIANCE REQUIREMENTS IN 1186 AUTOMATIC. 
          THIS IS NOT THE CASE. 
          IF 1186 IS PASSED, AS IS, ERCOT WILL HAVE THE AUTHORITY TO IMPOSE ADDITIONAL DISCRIMINATORY PENALTIES ON BATTERIES IMMEDIATELY. 
          ERCOT NEED NOT, NEED, NOT MODIFY ITS SYSTEMS TO DO SO. 
          ERCOT ALREADY HAS THE TOOLS TO ADDRESS FAILURES TO PROVIDE ANCILLARY SERVICES IN THE EVENT THOSE OCCUR. 
          DAN JUST MENTIONED THAT TO YOU, INCLUDING FINANCIAL PENALTIES AND DISQUALIFICATION FOR ALL RESOURCE TYPES. 
          THESE ARE ALL TECHNOLOGY NEUTRAL AND NON-DISCRIMINATORY SOLUTIONS THAT EXIST TODAY. 
          BUT IMPOSING ADDITIONAL PENALTIES ON BATTERIES FOR POTENTIALLY NOT PROVIDING, RATHER THAN ACTUALLY NOT PROVIDING ANCILLARY SERVICES IS DISCRIMINATORY ON ITS FACE. 
          BATTERIES ARE NOT ASKING FOR SPECIAL TREATMENT ONLY EQUAL ACCESS AND TREATMENT IN THE MARKET. 
          1186 IS HIGHLY DISCRIMINATORY. 
          ERCOT IS PROPOSING AN ADDITIONAL LAYER OF PENALTIES SPECIFICALLY FOR ESRS THAT MEET THE SAME QUALIFICATION, TO PROVIDE ANCILLARY SERVICES AS ALL OF THE RESOURCE TYPES, INCLUDING IN, IN THE FUTURE N PRRS, THAT ERCOT IS NOW REQUESTING AUTOMATIC FAILURE TO PROVIDE CHARGES EVEN IF THE E S R DOES NOT FAIL, BUT ACTUALLY PROVIDES ITS ANCILLARY SERVICE OBLIGATION. 
          THIS IS LIKE GETTING A TICKET FOR RUNNING A RED LIGHT BECAUSE YOU DRIVE A FORD AND DID NOT START BREAKING AT A CERTAIN DISTANCE BEFORE THE LIGHT, EVEN IF YOU DID NOT ACTUALLY RUN THE RED LIGHT. 
          BUT IF YOU DID THE SAME THING IN A SUBURBAN, YOU WOULDN'T RECEIVE THE TICKET. 
          TO PUT IT ANOTHER WAY, UNDER THE EXISTING PROTOCOLS, THE FORD AND THE SUBURBAN WILL BOTH GET A TICKET IF THEY RUN A RED LIGHT. 
          BUT UNDER 1186 ONLY THE FORD GETS AN ADDITIONAL TICKET FOR HOW IT BRAKED REGARDLESS OF WHETHER IT ACTUALLY RAN THE LIGHT. 
          I BELIEVE THERE'S A PERCEPTION THAT ERCOT CHANGE IN ITS SEPTEMBER 19TH COMMENTS FULLY ADDRESS THE ISSUES CREATED BY 1186. 
          THIS IS NOT THE CASE. 
          AND I'D LIKE TO SHOW ONE BRIEF EXAMPLE SHOWING ANOTHER UNINTENDED CONSEQUENCE THAT MY TEAM HAS RECENTLY DISCOVERED DURING THE SEPTEMBER 6TH EVENT. 
          MORE THAN 2.2 GIGAWATTS, NOT, IT WON'T, UH, ADVANCE. 
          OH, SORRY. 
          OKAY, THANKS. 
          UM, MORE THAN 2.2 GIGAWATTS OF STORAGE WAS DEPLOYED, WHICH YOU CAN SEE HERE IN THIS GRAPH. 
          A LOT OF THAT WAS THROUGH SOMETHING CALLED PRIMARY FREQUENT FREQUENCY RESPONSE OR P F R. 
          ALL GENERATION TYPES IN ERCOT PROVIDE THIS, AND IT IS UNCOMPENSATED FOR ALL TYPES OF GENERATION. 
          ERCOT CAN TAKE LARGE PERCENTAGES OF PF OF, OF NAMEPLATE CAPACITY AS THIS PRODUCT IN TIMES WHEN IT'S NEEDED TO KEEP THE GRID HEALTHY. 
          WE HAD SOME UNITS WHERE MORE THAN 40% OF NAMEPLATE CAPACITY WAS DEPLOYED AS P F R ON SEPTEMBER 6TH TO HALT THE FREQUENCY DROP THAT WOULD OTHERWISE HAVE PERSISTED. 
          YOU CAN SEE THE SPIKE AT THE BOTTOM TO MEET THAT DROP IN GRID FREQUENCY. 
          WITH THAT LEVEL OF P F R DEPLOYMENT. 
          IT IS VERY LIKELY THAT OUR UNITS WOULD HAVE RUN AFOUL OF 1186 STATE OF CHARGE OBLIGATIONS AND WOULD BE SUBJECT TO STATE OF CHARGE PENALTIES, WHICH ERCOT PROPOSES TO MAKE AUTOMATIC AND FUTURE NRR ERCOT ACTION OF TAKING P F R, WHICH IS NEEDED FOR GRID STABILITY WOULD CAUSE THIS NON-COMPLIANCE. 
          NOTE THAT IF 1186 AND FUTURE NRR ARE IMPLEMENTED, THIS LEVEL OF UNCERTAINTY AND COMPLIANCE PENALTIES WILL CERTAINLY LEAD TO MORE CONSERVATIVE BIDDING, WHICH WILL ULTIMATELY COST THE GRID 
          [00:20:01]
AND CONSUMERS NOT TO MENTION THE CHILLING EFFECT ON FURTHER INVESTMENT IN BATTERY DEVELOPMENT AND CONSTRUCTION IN ERCOT. 
          R T C PLUS B IS AT LEAST THREE YEARS AWAY. 
          WE KNOW FROM ERCOT MOST RECENT R FPS SEEKING THREE GIGAWATTS FROM DEFUNCT GENERATION RESOURCES AND LOAD RESOURCES THAT DID NOT PARTICIPATE IN THE MARKET LAST WINTER. 
          THAT WE NEED IMMEDIATE, THAT WE HAVE IMMEDIATE CONCERNS ABOUT THE ABILITY OF THE GRID TO PROVIDE FOR OUR NEEDS THIS WINTER. 
          WHILE SOME OF THOSE WINTER EVENTS WILL BE OF LONGER DURATION, ERCOT HAS NOTED CONCERN AROUND THE 8:00 AM PERIOD EACH MORNING, A SHORT PERIOD OF TIME THAT BATTERIES COULD ADDRESS, MUCH LIKE THEY COVERED THE EVENING PEAK DURING THE SUMMER. 
          STORAGE RESOURCES ARE HERE AND MORE ARE EXPECTED TO COME ONLINE OVER THE NEXT YEAR. 
          THEY CAN BE BUILT FROM START TO FINISH FASTER THAN ALMOST ANY OTHER RESOURCE. 
          LET'S FOCUS ON USING THEM RATHER THAN SLOWING DOWN THAT INVESTMENT IN THEIR CONTRIBUTION. 
          WHILE WE ALL CONTINUE TO DISAGREE OVER ITEMS LIKE 1186, AN ISSUE WHERE WE DON'T EVEN KNOW THE PROBLEM WE ARE TRYING TO SOLVE, ROME IS BURNING ERCOT ALMOST HAD A MASSIVE COLLAPSE ON SEPTEMBER 6TH, WHICH HAS YET TO BE FULLY UNDERSTOOD. 
          THE REAL PROBLEMS FACING US ARE SYSTEMIC AND BASED ON UNPRECEDENTED LOAD GROWTH, AGING INFRASTRUCTURE, EXTREME TEMPERATURES AND OUTDATED PROTOCOLS AND SYSTEMS, AS WELL AS ENERGY EXCHANGE. 
          WE, AGAIN, IMPLORE YOU TO REMAND 1186 AND REQUIRE ERCOT AND STAKEHOLDERS TO GENUINELY GET TOGETHER TO COLLABORATIVELY, COLLABORATIVELY IDENTIFY AND SOLVE WHATEVER PROBLEMS ERCOT NEEDS TO SOLVE IN A WAY THAT DOES NOT COST GRID RELIABILITY AND INVESTMENT IN MUCH NEEDED BATTERY INFRASTRUCTURE IN THE NEAR TERM, BOTH OF WHICH REALLY END UP COSTING CONSUMERS. 
          AT A MINIMUM, YOU SHOULD REJECT THE EXTRA COMPLIANCE PENALTIES, WHICH ARE THE CHANGES PROPOSED TO PROTOCOL SECTION EIGHT. 
          IF YOU FEEL THAT YOU MUST APPROVE THE REMAINDER OF 1186. 
          THIS WOULD ALLOW ERCOT TO IMPLEMENT THE SYSTEM CHANGES, BUT WOULD OTHERWISE, BUT WOULD NOT GIVE THEM THE AUTHORITY TO IMPOSE ADDITIONAL COMPLIANCE REQUIREMENTS BEYOND WHAT IS ALREADY AVAILABLE. 
          I'M HAPPY TO TAKE QUESTIONS. 
          QUESTIONS FOR STEPHANIE OR, OR ANY OF THE PRESENTERS, STEPHANIE? YES. 
          UM, I THINK YOUR POINT ABOUT LOOKING FORWARD TO THE FOUR HOUR BANTER, TECHNOLOGY'S IMPORTANT. 
          CAN YOU ELABORATE A LITTLE BIT MORE ON THAT POINT AND HOW 1186 MIGHT CONFLICT WITH THAT? UH, SURE. 
          UM, SO WHAT WHAT ERCOT HAS DONE IN ITS RECENT CHANGE IS MAKE EVERYTHING LOOKED AT ON A ONE HOUR BASIS AND IT REWARDS THAT. 
          SO I THINK THE, THE SORT OF, YOU KNOW, UH, BENEFIT TO, TO MAKING LONGER BATTERIES, WHICH I THINK WE ALL WANT IS REDUCED. 
          ALSO THE ADDITION OF COMPLIANCE MEASURES AND GENERALLY THE APPROACH TO REGULATION THAT MAKES, UM, IT A LITTLE MORE UNCERTAIN TO INVEST IN THIS MARKET WHEN YOU'RE SPENDING HUNDREDS OF MILLIONS TO BUILD THESE BATTERIES IS GOING TO HAVE A CHILLING EFFECT. 
          I KNOW I'M ONE OF THE ONES WHO MAKES DECISIONS ON INVESTMENT AT MY COMPANY, AND I'M CERTAINLY CONCERNED. 
          THANK YOU. 
          DID YOU HAVE A COMMENT, DAN? YES, YES, PLEASE. 
          SO THERE'S SO MANY THINGS WRONG WITH WHAT YOU'VE BEEN SAYING THAT I'M NOT SURE HOW TO ADDRESS ALL OF THEM, BUT ONE OF 'EM I'M GONNA ASK IS, IS, UM, I THINK, I THINK YOU HAVE A MISUNDERSTANDING OF WHAT RESERVES ARE AND WHY WE BUY ANCILLARY SERVICES. 
          IT'S NOT THAT WE ARE BUYING ANCILLARY SERVICES TO MAKE SURE THAT WE HAVE BRAKES ON THE FORD OR CHEVY. 
          AND SO IF YOU, UM, HAVE NO INTENTION OF STOPPING AT THE LIGHT, YOU DON'T REALLY CARE IF YOU DON'T HAVE BREAKS. 
          BUT IF WE NEED YOU, IF THE LIGHT CHANGES AND YOU HAVE TO STOP, YOU HAVE TO HAVE SOMETHING AVAILABLE TO DO THAT. 
          AND I THINK THAT'S THE, THE DISTINCTION IS THAT WE DON'T JUST LOOK AT, YOU LOOK AT WHETHER WE NEED TO NOT JUST LOOK AT WHETHER YOU HAVE, UM, WHETHER YOU, I THINK THAT YOUR LANGUAGE WAS WHEN YOU WERE SELECTED TO PROVIDE THE ANCILLARY SERVICE AND DISPATCHED TO PROVIDE IT. 
          THAT WOULD BE THE ONLY TIME YOU WOULD, UH, PROPOSE THAT WE, UH, JUDGE THAT. 
          BUT IN FACT, THE, WE, WE NEED TO BE LOOKING AT IT ALL THE TIME, NOT JUST WHEN YOU'RE DISPATCHED, BUT YOU HAVE TO HAVE THE CAPABILITY TO PROVIDE IT AT ALL TIMES THAT YOU'RE SELLING IT. 
          BECAUSE OTHERWISE, IF WE HAD TO USE IT AT THAT POINT IN TIME, WE DON'T KNOW IF YOU'VE GOT, YOU'VE GOT IT AVAILABLE OR NOT. 
          AND THAT'S THE, THAT'S, THAT'S A REALLY FUNDAMENTAL DISTINCTION THAT I THINK YOU'RE MISSING. 
          SO WE AGREE THAT YOU SHOULD HAVE THE ENERGY, UM, AND THE ABILITY TO PROVIDE THE SERVICES THAT YOU'VE SIGNED UP FOR. 
          I DON'T THINK THERE'S ANY DISAGREEMENT THERE. 
          THE DISAGREEMENT IS AROUND THE FACT THAT YOU ARE TRYING TO PENALIZE BATTERIES FOR POTENTIALLY NOT HAVING WHAT YOU DEEM TO BE THE CASE. 
          BATTERIES ARE VERY COMPLICATED TO OPERATE AND 
          [00:25:01]
IT SHOULD BE ON US TO MEET THAT OBLIGATION JUST LIKE IT IS ANY OTHER GENERATION TYPE. 
          INSTEAD OF THIS POTENTIAL, UM, PENALTY THAT YOU'RE PUTTING ON POTENTIAL FAILURE, WE ARE ABLE TO MANAGE ACROSS PORTFOLIOS JUST LIKE EVERY OTHER GENERATION. 
          BUT YOUR SYSTEM LIMITATIONS MEAN THAT WE ARE PENALIZED ON A PER UNIT BASIS UNDER 1186. 
          AND THAT IS JUST, IT'S DISCRIMINATORY AND I DON'T THINK IT'S GONNA GET YOU WHAT YOU NEED BECAUSE IT'S GONNA REALLY REDUCE PARTICIPATION BY BATTERIES. 
          BUT IF YOU, IF YOU UM, UM, OR POINTING TO A PARTICULAR RESOURCE, YES, WE'RE LOOKING AT IT ON A RESOURCE BY RESOURCE BASIS, YOU CAN MOVE THINGS IN YOUR PORTFOLIO IF YOU NEED TO IN ORDER TO MAINTAIN THAT YOU HAVE THE CAPABILITY OF PROVIDING THAT, THAT ANCILLARY SERVICE THAT YOU'RE SELLING. 
          UM, I THINK IF YOU HAVE AN ENTITY THAT HAS, UH, UM, A LIMITED NUMBER OF RESOURCES AND THEY'VE GOT THEM ALL IN DIFFERENT QSE SO THAT THEY DON'T HAVE THE ABILITY TO MOVE THEM AROUND, THEN I CAN SEE THAT YOU'D HAVE THAT PROBLEM. 
          AND I GUESS MY QUESTION FOR YOU IS, IS THAT Y'ALL'S SITUATION, IS THAT WHY THIS IS SUCH A PROBLEM? BECAUSE IT SHOULDN'T BE FOR ANYBODY ELSE. 
          YOU UNDER 1186 THE WAY IT'S WRITTEN, YOU CANNOT DO THAT. 
          YOU CANNOT MOVE YOUR OBLIGATION TO A DIFFERENT Q S E AND COVER IT AND NOT BE PENALIZED FOR STATE OF CHARGE TO THAT MEETING YOUR STATE OF CHARGE REQUIREMENT. 
          I, THAT'S, I DON'T BELIEVE THAT'S THE CASE. 
          I IBEL, I'M PRETTY SURE IT IS. 
          OH YEAH. 
          YOU CAN'T MOVE IT BETWEEN Q S E AND Q S E. 
          NO, YOU CAN'T MOVE IT BETWEEN UNITS. 
          YOU CAN MOVE IT BETWEEN RESOURCES WITHIN THE Q S E. 
          I DON'T BELIEVE THAT'S CORRECT. 
          NO, YOU CAN'T. 
          NO, THAT IS ABSOLUTELY YOU CAN, SORRY, BECAUSE OF THE SUB Q S E ISSUE. 
          WELL, THAT WAS THE CHOICE. 
          THAT'S YEAH, THAT'S THE CHOICE. 
          BUT THAT'S HOW THEY ALL OPERATE. 
          THAT'S THE CHOICE YOU MAKE ON HOW MANY, UH, UH, UH, HOW MANY DIFFERENT RESOURCES YOU PUT WITHIN A Q S E IF YOU'VE GOT A, IF YOU PUT ALL YOUR RESOURCES WITHIN A SINGLE SUB Q S E, THEN YOU'VE GOT THE ABILITY TO MOVE BETWEEN THEM. 
          I, I THOUGHT THAT THE LANGUAGE ACTUALLY LIMITED YOU FROM BEING ABLE TO MOVE BECAUSE WE ASKED THAT THIS BE MEASURED ON A QUEASY BASIS, JUST LIKE OTHER COMPLIANCE AND THAT IS NOT POSSIBLE UNDER 1186, WE WERE TOLD, THAT'S WHY WE KEEP TELLING YOU WE DON'T UNDERSTAND WHAT YOU'RE COMING FROM BECAUSE THAT, THAT'S NOT THE CASE. 
          OKAY. 
          I DON'T, UM, THAT'S NOT HOW MANY OF US ARE INTERPRETING IT. 
          SO MAYBE WE NEED A LANGUAGE CLARIFICATION. 
          YEAH, I THINK THAT'S SOMETHING OUTSIDE OF HERE YOU WANT TO CLARIFY. 
          YEAH. 
          DAN, A QUESTION FOR YOU, 'CAUSE BEFORE WE TALKED ABOUT IT THE LAST MEETING, THAT THE CONCERN WAS IF YOU HAVE A TWO HOUR COMMITMENT THAT YOU WANTED TO MAKE SURE AT THE TOP OF THE SECOND HOUR YOU, YOU HAD THE STATE OF CHARGE TO FULFILL THAT. 
          IS THAT NO LONGER UNDER THIS REVISION? IS THAT NO LONGER THE CASE? IT'S JUST LOOKING AT AN HOUR BY HOUR BASIS. 
          SO IF, IF, IF AN ENTITY WAS SELLING, IF A Q S E WAS SELLING, UH, TWO HOURS CONSECUTIVELY, THEN THEY WOULD HAVE TO HAVE 50 MEGAWATT HOURS AT THE TOP OF AND SELLING 50 MEGAWATTS. 
          THEY'D HAVE TO HAVE 50 MEGAWATT HOURS AT THE BEGINNING OF THIS HOUR. 
          THEY COULD DRAW IT DOWN TO ZERO. 
          AND THEN AT THE BEGINNING OF THE HOUR, SEPARATE, SEPARATE THING, AT THIS POINT, THEY'D HAVE TO HAVE 50 MEGAWATT HOURS AT THE TOP OF THIS HOUR AND DRAW IT BACK DOWN TO ZERO. 
          IT'S PROBABLY NOT FEASIBLE TO DO THAT WITH A SINGLE RESOURCE. 
          SO YOU'D HAVE TO MOVE TO A DIFFERENT, EITHER DON'T SELL TWO HOURS IN A ROW OR MOVE TO A DIFFERENT RESOURCE TO POINT TO FOR THE SECOND HOUR. 
          AND THEN WE ALSO WERE CONCERNED AT THAT THE LAST MEETING, THAT IT PROVIDED THE WRONG INCENTIVE TO BE CHARGING BATTERIES DURING A SCARCITY EVENT. 
          IS THAT ELIMINATED NOW UNDER THE WAY THIS REVISION? IT SHOULD BE. 
          IT SHOULD BE, YEAH. 
          SHOULD BE FINE. 
          IT DEFINITELY SOLVES THAT PROBLEM THAT WE REMANDED THAT WE TALKED ABOUT THAT YOU REMANDED. 
          SO YES, CARLOS, AGAIN, FOLLOWING UP ON THAT SAME POINT, THAT GIVES MORE FLEXIBILITY TO THE OPERATORS OF BATTERIES TO CHOOSE WHERE TO, UM, SUPPLY THE POWER, RIGHT? YES. 
          SO I THINK THAT'S THE END RESULT. 
          YEAH. 
          I AM NOT SURE I'M FOLLOWING HOW IT, IT ADDS FLEXIBILITY FOR US. 
          IF YOU COULD EX HELP ME UNDERSTAND, BECAUSE YOU CAN PROGRAM FOR DIFFERENT TIMEFRAMES. 
          YOU WERE STUCK FOR TWO HOURS, NOW YOU HAVE THE VERSATILITY OF CHARGING RECHARGING AS YOU GO. 
          YEAH, WE, SO THAT'S THE CURRENT SITUATION IS THAT WE'RE ABLE TO MANAGE OUR STATE OF CHARGE AND HOW WE BID. 
          SO IT'S GREAT THAT THAT CHANGE GOT MADE. 
          I'M, I'M NOT TAKING AWAY 
          [00:30:01]
FROM THAT CHANGE. 
          WHAT I'M FRUSTRATED BY IS WHY ONLY BATTERIES ARE BEING PENALIZED IN ADVANCE FOR POTENTIALLY FAILING RATHER THAN LIKE EVERY OTHER RESOURCE. 
          ONLY WHEN THEY ACTUALLY FAILED TO DELIVER. 
          IT'S, IT'S INCUMBENT ON US TO MANAGE OUR RESOURCE AND OUR OBLIGATIONS. 
          THIS IS LORI KOBOS. 
          I I JUST HAVE A KIND OF A CLARIFYING QUESTION, AND MAYBE THIS IS TO DAN AND FOLLOWED UP BY STEPHANIE. 
          SO DAN, DAN HAS SAID THAT, UM, IN ORDER TO, TO AVOID THIS, YOU, YOU DON'T SELL FOR TWO HOURS IN A ROW OR YOU MOVE YOUR OBLIGATION TO ANOTHER E S R IN YOUR PORTFOLIO. 
          MY QUESTION IS, YOU KNOW, IS, IS THESE BATTERIES ARE PROLIFERATING IN THE OP MARKET SPECIFICALLY LONG DURATION BATTERIES? IS THAT POSSIBLE RIGHT NOW TO, I MEAN, HOW BIG ARE THE PORTFOLIOS OUT THERE ON LONG DURATION, UM, BATTERIES TO WHERE THESE, YOU KNOW, UP AND COMING RESOURCES, LONG DURATION BATTERIES ARE, ARE ABLE TO HAVE THAT FLEXIBILITY? BECAUSE IF THEY DON'T HAVE A PORTFOLIO WITH ENOUGH LONG DURATION BATTERIES TO MOVE AROUND THE OBLIGATION, THEN THE OTHER OPTION IS TO JUST NOT BID IN THE TWO HOUR ANCILLARY SERVICE E C R S. 
          SO I'M, I'M JUST TRYING TO UNDERSTAND THE UNDERLYING INFORMATION THERE IS, IS, AM I OBSERVING THAT CORRECTLY? EITHER ONE OF YOU CAN GO FIRST. 
          YEAH. 
          SO A LONG DURATION BATTERY COULD SELL TWO HOURS IN A ROW. 
          AND I THINK THAT'S IN THE SLIDE PRESENTATION. 
          SO IF THEY'VE GOT A HUNDRED MEGAWATT HOURS SELLING 50 MEGAWATTS THIS HOUR AND 50 MEGAWATTS THIS HOUR AND THEY'VE GOT A HUNDRED MEGAWATT HOURS STATE OF CHARGE, THEY COULD SELL FOR TWO HOURS FROM THAT SINGLE LONG DURATION BATTERY BECAUSE BY THE END OF THE HOUR, EVEN IF THEY'VE GOT, EVEN IF THEY GOT DEPLOYED, THEY'D STILL HAVE 50 MEGAWATT HOURS IN THE BATTERY. 
          NO. 
          AND, AND THERE'D STILL BE NO STRANDED ENERGY. 
          OKAY. 
          THAT'S RIGHT. 
          SO WE WOULD MANAGE, BASED ON WHAT WE HAVE IN OUR PORTFOLIO, SO WE HAVE LONGER MULTI-HOUR BATTERIES, WE DO THAT. 
          WE CAN ALSO MOVE BETWEEN BATTERIES WITHIN THE SAME Q S E WITH SOME LIMITATIONS ON THE WAY THEY OPERATE. 
          UM, EVEN IF YOU ONLY HAVE THOUGH A SINGLE BATTERY TO Q S E, YOU COULD MAKE AN AGREEMENT WITH THE Q SS E TO BACKSTOP YOU WITH A DIFFERENT RESOURCE. 
          THAT WOULD BE POSSIBLE AS WELL. 
          BUT SO YOU, YOU KNOW, YOU WOULD SIZE YOUR, YOUR BID AND MOST PEOPLE ARE BIDDING MULTIPLE DIFFERENT PRODUCTS, YOU KNOW, DEPENDING ON HOW MUCH DURATION THEY HAVE IN THEIR BATTERY. 
          DOES THAT, DOES THAT HELP? YEAH, THAT, THAT'S HELPFUL. 
          I'M JUST TRY, I WAS TRYING TO UNDERSTAND DAN'S STATEMENT A LITTLE BIT MORE WITH SOME UNDERLYING INFORMATION. 
          UM, ULTIMATELY BECAUSE WHAT WE'RE TRYING TO DO HERE, 'CAUSE I THINK WE'VE STATED, IS WE'RE TRYING TO INCENT INVESTMENT IN LONG DURATION BATTERIES. 
          AND ONE WAY OF DOING THAT IS BY PROVIDING CLEAR SIGNALS TO OUR ANCILLARY SERVICE PRODUCTS THAT WE'VE CREATED WITH IN MIND TO ALLOW THOSE BATTERIES TO PARTICIPATE, WHETHER THAT'D BE AN E C R S OR ULTIMATELY A NONS SPIN. 
          SO I'M JUST TRYING TO UNDERSTAND THIS MORE FROM THAT PERSPECTIVE AS THEY ARE DISPATCHABLE RESOURCES AND DO PROVIDE A RELIABILITY BENEFIT, ESPECIALLY IN THE SUMMER WHEN WE HAVE THOSE SOLAR RAMP DOWNS AND THEY'RE GETTING STEEPER. 
          UM, YEAH, I'M NOT SURE WHAT I WOULD ADD. 
          UM, THEY, I THINK YOU WOULD JUST, YOU WOULD HAVE TO BID LIKE AS MUCH AS YOU PROVIDE OR MAYBE IF YOU'RE A ONE HOUR YOU'RE ONLY BIDDING REG OR, OR YOU'RE BIDDING 25 MEGAWATTS OF V C R S AND SOME RE YOU WOULD JUST HAVE TO, TO CHOOSE ACCORDINGLY. 
          UM, BUT I THINK MOST OF THE BATTERIES COMING ONLINE IN THE NEAR TERM OR MORE THAN ONE HOUR. 
          OKAY. 
          THANK YOU. 
          THANKS. 
          ANY FURTHER DISCUSSION? SO AT THIS POINT FOR THE COMMITTEE MEMBERS, UH, I WOULD NEED A MOTION TO APPROVE THIS THEN. 
          THE, THE LANGUAGE OF THE MOTION WOULD BE THAT THE COMMITTEE RECOMMENDS THAT THE BOARD RECOMMEND APPROVAL OF N P R R 1186 AS RECOMMENDED BY TAC AND RECOMMENDED TO THE BOARD RECOMMENDED THAT THE BOARD DIRECT ERCOT TO FILE ONE OR MORE NODAL PROTOCOL REVISION REQUESTS TO STRENGTHEN THE COMPLIANCE AND FINANCIAL PENALTIES TO MITIGATE THE RELIABILITY RISK FROM THE PROPOSED CHANGE TO N P R R 1186 AND TO DESIGNATE THESE AS BOARD PRIORITY REVISION REQUEST PURSUANT TO PROTOCOLS. 
          DO I GET A MOTION TO APPROVE THAT STATEMENT CARLOS APPROVES? SECOND. 
          SECOND. 
          AND I HAD A COMMENT, KEEP GOING. 
          WHEN, WHEN THE ERCOT STAFF COMES BACK WITH THE PRIORITY CHANGES, COULD YOU PLEASE ILLUSTRATE 
          [00:35:01]
TO US HOW IT'S NOT DISCRIMINATORY PER THE COMMENTS WE JUST HEARD? ABSOLUTELY. 
          THAT'LL BE PART OF THE DESIGN PARAMETER. 
          YEP. 
          APPRECIATE THAT. 
          SO WOULD THAT PROVISION JULIE, SECONDS? ALL IN FAVOR? AYE. 
          ANY OPPOSED OR ABSTENTIONS? NONE. 
          OKAY. 
          WE'LL CONSIDER THAT APPROVED TO RECOMMEND TO THE BOARD. 
          UM, GOOD DISCUSSION ALL AROUND THIS. 
          I THINK WE CAME OUT WITH A BETTER PRODUCT FROM WHAT WE HAD AT THE FIRST GO ROUND. 
          I APPRECIATE STEPHANIE'S COMMENTS AS WELL, AND IT WAS GOOD DISCUSSION ON THIS TOPIC. 
          UM, SO WHEN I'LL TAKE UP AGENDA 
          [7.1 System Planning and Weatherization Update]
ITEM SEVEN, THESE ARE THE COMMITTEE BRIEFS, UH, CHRISTY HOBBS' PRESENTATION OF THE SYSTEM PLANNING AND WEATHERIZATION UPDATE AGENDA ITEM 7.1. 
          AND THEN CHRISTY WILL ALSO PRESENT 7.1 0.1 UPDATE ON RELIABILITY STANDARD STUDY RESULTS. 
          ALL RIGHT, GOOD AFTERNOON. 
          UH, I WANNA JUMP IN, UM, FIRST TIME GIVING YOU THE, THE SYSTEM PLANNING AND WEATHERIZATION UPDATES. 
          SO I HAVE A FEW KEY ITEMS TO SHARE WITH YOU. 
          THE FIRST ONE IS I WANTED TO TAKE AN OPPORTUNITY AND TAKE A LOOK BACK AT THE WEATHERIZATION INSPECTIONS THAT WE DID THIS SUMMER. 
          UM, YOU MAY RECALL THAT THIS WAS THE FIRST SUMMER THAT WE HAD THE INSPECTION TEAM OUT, UM, CHECKING UNITS FOR THE SUMMER WEATHER, UH, VERSUS THE PREVIOUS TWO WINTERS. 
          WE COMPLETED 550, UH, GENERATION AND TRANSMISSION, UM, INSPECTIONS. 
          OVER THE MONTHS OF JUNE THROUGH SEPTEMBER. 
          ALMOST ALL OF THE FACILITIES WERE COMPLIANT WITH THE P U C REQUIREMENTS THAT WERE SET OUT IN THE P U C WEATHERIZATION RULES. 
          WE HAD 13, 11 GENERATION RESOURCES AND TWO TRANSMISSION FACILITIES WHERE THEY ACTUALLY HAD TO GO BACK AND HAD A A CURE PERIOD. 
          AND JUST TO GIVE YOU A LITTLE BIT OF A FLAVOR OF THE TYPES OF ISSUES THAT WE SAW, UM, THEY WERE, THEY WERE THINGS THAT WERE MAYBE MINOR, SO LIKE STAFFING PLANS, UM, COMPLETED TRAINING OR DOCUMENTATION OF THAT TRAINING, UM, OR REALLY CREATING A LIST OF HOT WEATHER CRITICAL COMPONENTS. 
          UM, AS YOU'RE PROBABLY AWARE, MOST OF THE UNITS, UH, IN TEXAS ARE USUALLY GEARED UP AND READY FOR SUMMER. 
          UM, THAT THAT'S WHAT, WHAT THEY'RE IN BUSINESS FOR. 
          UM, AND SO SOME OF THESE THINGS WERE JUST DOCUMENTATION THINGS. 
          UM, THEY WERE ALL ABLE TO, UH, WITHIN THE CURE PERIOD TIMEFRAME, UM, GO BACK AND GET THE INFORMATION THAT WE NEEDED. 
          A LITTLE BIT OF INFORMATION ON THE GENERATION INTERCONNECTION ACTIVITY QUEUE OVER THE LAST 60 DAYS. 
          AS YOU CAN SEE, THE BULK OVER 57% IS COMING FROM BATTERY ENERGY STORAGE. 
          SO THIS IS LOOKING AT THE APPLICATIONS IN THE QUEUE. 
          WHAT ARE THE NEW TYPES OF RESOURCES THAT WE SEE THAT ARE APPLYING TO ERCOT AND WANTING TO COME ON. 
          UM, JUST TO GIVE YOU A FLAVOR, WHAT DOES THAT 57%, UH, LOOK LIKE? IT'S ACTUALLY 78 UM, APPLICATIONS, AND THAT'S THE BULK BETWEEN BATTERIES AND SOLAR OF WHAT WE SEE ARE, ARE COMING TO THE GRID. 
          I WANTED TO GIVE YOU AN UPDATE ON WHERE WE ARE ON MOVING FORWARD WITH THE ECONOMIC TRANSMISSION PLANNING CRITERIA. 
          AS YOU MAY RECALL, UM, THE COMMISSION MADE SOME CHANGES TO THEIR RULE. 
          UM, BACK, UH, IN CONSULTATION WITH STAFF, WE ARE SUPPOSED TO COME FORWARD WITH A CONGESTION COST SAVINGS TEST FOR ECONOMICALLY DRIVEN PROJECTS. 
          WE HIRED A E THREE TO HELP US WITH COMING FORWARD ON WHAT TYPE OF STUDY AND SAVINGS TEST WE'D RECOMMEND E THREE COMPLETED THAT WORK. 
          UM, AND THEY'VE RECOMMENDED A SYSTEM-WIDE GROSS LOAD COST TEST AS THE BEST OPTION, UH, FOR HAVING THAT ECONOMIC TEST IN THE ERCOT REGION. 
          SO WHAT DOES THAT MEAN? WHAT WE WOULD HAVE IS A TEST WHERE YOU'D LOOK AT THE ENERGY COST CHARGE TO CONSUMERS BASED ON THE SUM OF THE ENERGY THAT THEY USE. 
          AND THAT WHAT WE WOULD COMPARE IS IF YOU BROUGHT A TRANSMISSION LINE, DO YOU ACTUALLY REDUCE THAT COST TO THE CONSUMER WITH THE GROSS LOAD COST TEST, WE'RE CURRENTLY WORKING, UH, WITH COMMISSION STAFF AND WITH THE I M M ON BRINGING FORWARD A RECOMMENDATION BASED OFF OF WHAT WE'VE SEEN FROM E THREE ON HOW WE MOVE THIS FORWARD. 
          AND THAT WOULD COME FORWARD IN THE, UH, FORM OF REVISION REQUEST. 
          THIS SLIDE, UH, IS A NEW SLIDE THAT YOU HAVEN'T SEEN BEFORE, AND WHAT WE'RE LOOKING AT IS REALLY WHAT, WHAT'S IN THE INTERCONNECTION QUEUE. 
          SO IN THE, IN THE FIRST COLUMN YOU SEE IT'S, IS THE YEAR, SO THE YEAR THAT THEY APPLIED, WHEN DID THEY COME TO ERCOT AND SAY THAT I WANNA BRING A GENERATION RESOURCE TO THE GRID. 
          AND WE'VE GOT THEN THE AMOUNT OF MEGAWATTS THAT APPLIED IN THAT YEAR. 
          SO AS YOU CAN SEE, OVER TIME, WE'VE REALLY SEEN AN INCREASE IN THE MEGAWATTS THAT ARE APPLYING AND WANT TO CONNECT TO THE GRID. 
          BACK IN 2014, IT WAS JUST OVER 4,000. 
          THIS YEAR, UM, WE'RE NOT EVEN THROUGH THE YEAR, WE'VE GOT ALMOST 93,000 MEGAWATTS THAT HAVE APPLIED TO BE IN THE QUEUE AND COME FORWARD. 
          THAT NEXT COLUMN SHOWS YOU HOW MANY MEGAWATTS 
          [00:40:01]
ACTUALLY COMMISSIONED. 
          NOW IT'S NOT THAT THEY NECESSARILY COMMISSIONED IN THAT YEAR, WE TRIED TO KEEP 'EM TOGETHER. 
          SO FOR EXAMPLE, UM, BACK IN, IN 2014, WE SAW 4,000 MEGAWATTS THAT APPLIED. 
          OUT OF THAT 4,000, WE EVENTUALLY SAW 3,700 THAT CAME TO THE GRID. 
          WHAT DOES THAT MEAN? THAT MEANS THERE WAS, YOU KNOW, A COUPLE OF HUNDRED THAT WERE SPECULATIVE THAT DIDN'T MOVE FORWARD. 
          AND AS YOU CAN SEE, WE HAD A VERY HIGH PRODUCTIVITY RATE IN THOSE EARLY YEARS ABOUT WHAT ACTUALLY CONVERTED AND CAME ONTO THE SYSTEM. 
          NOW WHAT WE'VE BEEN OBSERVING AS WE MOVE OVER TIME IS THAT WE HAVE LESS AND LESS THAT ARE ACTUALLY COMING TO PRODUCTION. 
          UM, AND I GUESS ONE THING TO HIGHLIGHT, UM, IT USUALLY TAKES ABOUT AT LEAST TWO YEARS FOR A LARGE GENERATION TO COME ON AT LEAST TWO YEARS FOR THEM ONCE THEY'VE APPLIED TO MAKE IT THROUGH THE PROCESS. 
          SO IN THESE LATER YEARS, YOU KNOW, YOU DEFINITELY SEE A LOWER PRODUCTIVITY RATE, BUT IT'S VERY UNLIKELY, UM, UNLESS THEY'RE A, A BATTERY THAT THEY'RE ABLE TO CONNECT TO THE, THE SYSTEM THAT QUICKLY. 
          UM, BUT AS YOU CAN SEE SOMETHING THAT APPLIED IN 2020, WE'RE SEEING VERY LOW PRODUCTIVITY OF THOSE ACTUALLY COMING TO FRUITION. 
          UM, AND COMING ONLINE ON THE SYSTEM. 
          CHRISTIE, LAURIE COVERS, WHAT DO YOU THINK'S DRIVING THAT REDUCTION? I THINK WE SEE A LOT OF SPECULATIVE LOAD, UH, OR EXCUSE ME, SPECULATIVE GENERATION THAT ARE APPLYING IN THE QUEUE AND THEN AND NOT MOVING FORWARD. 
          UM, I KNOW THAT'S ONE IDEA THAT WE'VE TOSSED AROUND IS DO WE NEED TO LOOK AT OUR INTERCONNECTION PROCESS AND THE FEES, UH, IN WHICH WE CHOOSE TO MAKE SURE, UM, ARE THERE THE PROPER INCENTIVES? DO WE HAVE THE PROPER WAITING TO MAKE SURE THAT WE'RE NOT JUST GETTING A LOT OF SPECULATIVE GENERATION, WE'VE ACTUALLY, YOU KNOW, THESE ARE THE PEOPLE THAT WE'RE SPENDING ERCOT RESOURCES AND T S P RESOURCES TO STUDY THAT. 
          WE MAKE SURE WE'RE DEVOTING THOSE TO FOLKS THAT ARE ACTUALLY COMING ONTO THE SYSTEM. 
          HAVE YOU HAD AN OPPORTUNITY TO ASSESS, AND I KNOW IT'S, I MEAN WE'RE NOT TALKING IN SPECIFIC RESOURCES. 
          IS REGULATORY UNCERTAINTY PERHAPS A DRIVER IN THIS SIGNIFICANT REDUCTION? UM, I GUESS THAT WOULD BE DEFINITELY PROBABLY ONE OF, ONE OF THE REASONS. 
          UM, I DON'T KNOW, WOODY, IF YOU HAVE ANY OTHER THOUGHTS ON, ON WHY WE'RE, WE'RE NOT SEEING THOSE COME TO FRUITION? YEAH. 
          WHEN WE DO HAVE A CHANCE TO TALK WITH INDIVIDUAL DEVELOPERS, THAT IS SOMETHING THAT COMES UP IS THE UNCERTAINTY, UH, REGULATORY UNCERTAINTY, WHAT CHRISTY, YOU ALSO HAVE THE, UM, MAYBE IT'S FOR THE FUTURE IF YOU DON'T HAVE ENOUGH, LIKE THE AVERAGE SIZE OF THE PROJECTS BY YEAR AS WELL. 
          'CAUSE I IMAGINE THAT'S DRAMATICALLY GOING DOWN. 
          WE CAN GET YOU THAT AS WELL. 
          A NUMBER OF PROJECTS IN THE AVERAGE SIZE I THINK WOULD TELL A STORY AS WELL. 
          SO WOODY, YOUR CHRISTIE, DO YOU THINK THAT THAT SAME UNCERTAINTY THAT APPLIES ACROSS RESOURCE TYPES, BATTERIES INCLUDED? 'CAUSE WHEN YOU GO BACK TO YOUR PIE CHART, THAT IS BY FAR THAT, AND SOLAR IS THE PREDOMINANT INTERCONNECTION APPLICANT THAT IS IN QUEUE RIGHT NOW. 
          UM, DO YOU, DO YOU SEE ANY TYPE OF DISTINCTION BETWEEN THE BEHAVIOR AND COMPLETION BETWEEN THOSE? I THINK MAYBE THE, UH, THE PROJECTS THAT REQUIRE THE MOST CAPITAL ARE THE ONES THAT ARE THE MOST DEAD SHY. 
          THE BIGGER THE INVESTMENT, THE MORE CERTAINTY IS NEEDED. 
          CHRISTINE, UH, IS THERE A CLOSED LOOP PROCESS HERE? FOR EXAMPLE, IF YOU APPLIED IN 2015 AND YOU NEVER CAME ONLINE WITH YOUR GENERATION RESOURCE BY 2019, IS YOUR APPLICATION REVOKED? IS THERE ANY CLOSURE? YES, THERE IS. 
          I MIGHT GET MY PHONE A FRIEND BACK THERE AND TO MAKE SURE I GET THE SPECIFICS ON IT, THERE IS A, UH, A PROCESS WHERE WE REMOVE 'EM FROM THE QUEUE. 
          I DON'T HAVE THE DETAILS FOR THAT, BUT WE DID PUT THAT IN A COUPLE YEARS AGO BECAUSE THINGS WERE JUST STACKING UP. 
          AND SO IF THERE WAS NO MOVEMENT AFTER A CERTAIN AMOUNT OF TIME, IT WAS TAKEN OUT. 
          WELL, I THINK YOU'VE UNCOVERED A REALLY, UH, GOOD BOTTLENECK IN OUR SYSTEM AND WE NEED BETTER PRODUCTIVITY OUTTA THE SCARCE RESOURCES WE HAVE AT ERCOT. 
          SO I LOOK FORWARD TO YOUR RECOMMENDATIONS AND FUTURE MEETINGS ON HOW TO SOLVE THIS, LIKE ABUSE OF THE SYSTEM, SO TO SPEAK. 
          THANK YOU. 
          SO I'D, I'D LIKE TO POINT OUT THAT, UM, THAT PRODUCTIVITY COLUMN IS NOT A PRODUCT OF ERCOT OR THE TSPS EVEN. 
          THERE'S THEIR STUDIES WITH THE DEVELOPERS. 
          SO I MEAN, THERE, THE INTERCONNECTION PROCESS GOES BACK AND FORTH BETWEEN, UH, SUBMISSION TO ERCOT AND THEN SUBMISSION TO T S P, AND THEN A DEVELOPER HAS TO TAKE A STEP FORWARD WITH PERMITS AND THINGS LIKE THAT. 
          [00:45:01]
SO THERE'S A MULTI-STEP PROCESS THERE. 
          AND, UH, WE HAVE TIME TIMELINES ON ALL OF OUR PRO, ALL OF OUR STEPS TSPS DO AS WELL. 
          AND SO THE, THE BACKLOG HERE IS WHEN YOU GET TO THESE STEPS WHERE A DEVELOPER HAS TO MAKE A STEP, UM, THERE ARE NO BACKLOGS HERE, AND YOU'LL HEAR ABOUT THOSE BACKLOGS IN A LOT OF OTHER ISOS WHERE THERE'S, IT'S A VERY COMPLICATED MULTI-STATE P C KIND OF OF PROBLEM, UM, THAT ISN'T THE SAME PROBLEM WE HAVE HERE. 
          AND SO WHEN WE COMPARE THE ERCOT INTERCONNECTIONS PROCESS WITH OTHER PLACES, THEY'RE A DIFFERENT SET OF PROBLEMS. AND I THINK THE PROBLEMS WE HAVE ARE JUST WITH THE DEVELOPERS HAVING THE, THE BACKING TO GO FORWARD, NOT WITH THE, THE STUDIES AND THINGS LIKE THAT. 
          WELL, I APPRECIATE THE IN INSIGHT AND SLOWLY UNDERSTANDING THE INTERCONNECTION PROBLEM, BUT THIS IS THIS, THIS IS THE KEY STEP TO GETTING NEW RESOURCES ON THE GRID. 
          I'D LIKE TO KEEP UNCOVERING WHAT CAN MAKE THIS PROCESS AS EFFECTIVE AS POSSIBLE. 
          ALL RIGHT. 
          UM, LARGE LOAD INTEGRATION OVERVIEW. 
          UH, THIS SLIDE IS INTENDED TO SHOW YOU THE APPLICATIONS THAT WE'VE SEEN FOR LARGE LOADS CONNECTING TO THE ERCOT SYSTEM. 
          UM, AND I THINK, YOU KNOW, ONE OF THE KEY TAKEAWAYS HERE IS SINCE JANUARY OF 2022, WE'VE SEEN, UM, ALMOST OVER 3000, JUST OVER 3000 THAT WERE APPROVED TO ENERGIZE. 
          WE'VE ACTUALLY SEEN JUST UNDER THAT, THAT ACTUALLY DID, UM, ENERGIZE, UH, IN FACT JUST ABOUT 2,400 OF THAT APPROVED. 
          3000 HAS ENERGIZED IN THE SYSTEM. 
          UM, BUT AS YOU CAN SEE, AS WE LOOK TO THOSE OUTER YEARS, UH, THE QUEUE JUST CONTINUES TO INCREASE. 
          AND ERCOT HAS ALREADY, UM, DONE STUDIES AND APPROVED ENERGIZED JUST UNDER 9,000 BEFORE THE END OF DECEMBER OF 2024. 
          UM, SO THEY'VE HAD THEIR PL PLANNING STUDIES REVIEWED AND APPROVED BY, AND THE TYPES OF LOAD THAT THAT'S MADE UP OF OUR DATA CENTERS, UH, CRYPTOCURRENCY AND ELECTRIC OIL FIELD ELECTRIFICATION. 
          CHRISTIE, IS YOUR DEFINITION OF LARGE LOAD, IS THAT 25 MEGAWATTS AND ABOVE, OR IS IT 75? 75. 
          75. 
          THANK YOU ALL. 
          ALL RIGHT. 
          SO SOME OF THE THINGS THAT WE'VE BEEN WORKING ON IN THE STAKEHOLDER PROCESS, UH, WE DO HAVE A SET OF REVISION REQUESTS THAT WE FILED IN THE PROCESS AND TO HELP THOSE CONTINUE MOVING FORWARD. 
          UM, WE'VE USED THE LARGE LOAD TASK FORCE. 
          WE'VE BROKEN OUT A SET OF ISSUES AND WE'VE PUT TIMELINES FOR STAKEHOLDERS TO BRING THEIR CONCERNS SO WE CAN WORK THROUGH COMMENTS AND ISSUES. 
          AND THESE ARE THE FIVE KEY AREAS THAT WE'RE FOCUSING ON. 
          UM, WE WANT TO BE ABLE TO, UM, IMPLEMENT A FORMAL LARGE LOAD INTERCONNECTION PROCESS, UM, SO THAT WE HELP PROVIDE THEM A WAY TO, TO CONNECT TO THE SYSTEM FASTER. 
          UH, WE WANT TO REQUIRE LOADS THAT ARE GREATER THAN 25 MEGAWATTS, UH, TO PROVIDE ADDITIONAL INFORMATION, ERCOT. 
          SO WE HAVE THAT INFORMATION, UH, THAT VISIBILITY AND MAYBE HOW THOSE THOSE LOADS, UM, REACT, UH, TO THE SYSTEM TO PRICE OR OTHER FACTORS. 
          UH, WE'VE HAD SEVERAL EVENTS. 
          I KNOW YOU'VE HEARD FROM DAN TALKING ABOUT, UM, WHERE WE'VE HAD LARGE LOAD THAT UNEXPECTEDLY, UM, DISCONNECTED FROM THE SYSTEM THROUGH LOW VOLTAGE EVENTS. 
          UM, AND THOSE CREATE FREQUENCY DISTURBANCES FOR THE GRID. 
          AND SO WE WANNA ESTABLISH A VOLTAGE RIDE THROUGH STANDARD FOR THOSE LARGE LOADS. 
          UH, THE FOURTH THING THAT WE'RE TRYING TO ACCOMPLISH WITH A SET OF REVISION REQUESTS IS THAT, UM, YOU KNOW, SOME OF THESE VERY LARGE LOADS CAN VARY THEIR OUTPUT, OR EXCUSE ME, THEIR CONSUMPTION, AND THAT CAN CREATE, UH, SWINGS ON THE, ON THE GRID. 
          AND SO WE WANNA ENCOURAGE THEM TO REGISTER AS CONTROLLABLE LOAD RESOURCES. 
          UM, AND THEN IF THEY ARE NOT A CONTROLLABLE LOAD RESOURCES, WE'D LIKE TO HAVE RESTRICTIONS ON HOW THEY CAN RAMP, UM, UP AND DOWN AND IMPACT THE SYSTEM. 
          UM, AND THEN THE LAST ONE IS THAT WE'VE SEEN, UM, YOU KNOW, AS RECENTLY AS THE SUMMER, AND I THINK YOU'LL, YOU'LL PROBABLY HEAR ABOUT SOME OF THOSE THINGS FROM DAN AND CANON AS THEY DO THEIR SUMMER RECAP. 
          UM, BUT WHERE THEY HAVE INCONSISTENT BEHAVIOR OF WHAT WE WOULD EXPECT, UM, DURING CERTAIN SYSTEM CONDITIONS. 
          AND SO WE'D LIKE TO HAVE A, A REGISTERED CURTAIL LOAD CATEGORY, UH, WHERE WE COULD CALL ON THEM TO CURTAIL, UM, PRIOR TO SHUTTING FIRM LOAD. 
          AND SO THESE ARE JUST SOME OF THE THINGS THAT WE'RE WORKING ON. 
          WE'VE GOT THOSE REVISION REQUESTS OUT WITH THE STAKEHOLDERS. 
          UH, WE'VE GOT A SERIES OF MEETINGS WHERE WE'RE GONNA TACKLE EACH OF THESE ISSUES, UH, WITH A GOAL OF BRINGING A SET OF REVISION REQUESTS BACK TO YOU EARLY NEXT YEAR. 
          SO THIS IS OUR FAREWELL AND THE SEASONAL RESOURCE ADEQUACY REPORT OF THE SARAH. 
          AND WE REPORTED TO YOU ON THIS SEVERAL, UH, TIMES OUR LAST FALL. 
          OUR LAST SEASONAL TYPE OF REPORT, 
          [00:50:01]
UH, WAS RELEASED EARLIER THIS FALL. 
          IT CAPTURES OCTOBER AND NOVEMBER. 
          UM, AND AS YOU BECOME ACCUSTOMED, I'M NOT GONNA GO THROUGH ALL OF THE NUMBERS, BUT YOU CAN SEE FOR OUR BASE AND MODERATE SCENARIOS, UH, WE EXPECT TO HAVE, UH, SUFFICIENT SUPPLY TO, TO MEET THE DEMANDS OF THE SYSTEM. 
          IT'S WHEN WE GET IN THOSE EXTREME TYPE SCENARIOS WHERE WE SEE POTENTIALLY HIGH LOAD, HIGH OUTAGES AND LOW WIND, UM, THAT WE WOULD BE INTO A CASE WHERE OUR RESOURCES THAT WE HAVE PLUS OUR EMERGENCY RESOURCES WOULD NOT BE ENOUGH, UH, TO MEET THAT DEMAND AND COULD CAUSE US TO BE IN EMERGENCY CONDITIONS. 
          UM, WE HAVE SINCE SHIFTED, UM, YOU'VE PROBABLY SEEN OUR FIRST MONTHLY OUTLOOK. 
          SO WE'VE SHIFTED TO MORE OF A MONTHLY OUTLOOK SO THAT WE CAN FOCUS ON THAT PARTICULAR MONTH OF THE SEASON. 
          UM, WHEN YOU LOOK AT THOSE LARGER SEASONS, AS WE DID IN THE SARAH, YOU COULD HAVE A LOT OF VARIATION BETWEEN THE MONTHS. 
          AND SO THIS ALLOWS US TO REALLY FOCUS ON THAT MONTH AS WELL AS IT ALLOWS US TO DO NOT JUST OUR DETERMINISTIC TYPE ANALYSIS, BUT TO LOOK AT SOME OF THE PROBABILISTIC ANALYSIS AS WELL AND HAVE A KIND OF A SNAPSHOT HERE JUST TO HIGHLIGHT SLIP IN THE WORK, UM, THAT THE TEAM HAS DONE IS TRYING TO BETTER COMMUNICATE WHAT THE RISKS ARE TO THE SYSTEM. 
          AND SO FOR THIS, OUR FIRST MAURA WAS RELEASED IN OCTOBER. 
          UM, GOING FORWARD, WE PLAN TO RELEASE THOSE ON THE FIRST, UH, WORKDAY OF THE MONTH AND IT'LL BE FOR TWO MONTHS IN ADVANCE. 
          SO FOR EXAMPLE, THE FIRST WORKING DAY IN NOVEMBER, UH, WE'LL BE RELEASING OUR MOURA FOR THE JANUARY TIMEFRAME. 
          WHAT WE TAKE A LOOK AT, UH, IS A, A SUBSET OF HOURS. 
          AND AS WE PRODUCE ADDITIONAL REPORTS, WE'RE GONNA TRY TO GET TO WHERE WE CAN PR SHOW THESE PROBABILITIES FOR ALL 24 HOURS. 
          UM, BUT WE LOOK AT THE PROBABILITY OF NOT HAVING ENOUGH CAPACITY AVAILABLE FOR OPERATING RESERVES. 
          AND SO, UM, ON THE FAR LEFT HERE, WE'RE LOOKING AT, YOU KNOW, NORMAL CONDITIONS. 
          SO AS YOU CAN SEE, FOR WELL OVER 90% FOR ALL OF THESE SCENARIOS, UM, YOU KNOW, WE EXPECT TO HAVE SUFFICIENT SUPPLY, UH, TO MEET DEMAND. 
          THE PROBABILITY OF GETTING INTO EMERGENCY CONDITIONS, WHETHER IT'S AT THE 2,500 RESERVE LEVEL OR THE 1500 RESERVE LEVEL, AS YOU CAN SEE, UM, OTHER THAN LIKE THE HOURS OF 8:00 AM THOSE, THAT IS FOR THE MONTH OF DECEMBER IS WHERE WE SEE OUR, OUR RISKIEST TIMEFRAME FOR ALL OF THE, THE MULTIPLE RUNS THAT WE DID, THE PROBABILITY OF HAVING, UM, THAT TYPE OF EMERGENCY SCENARIO. 
          SO WHAT WE ALSO DID IS TO ALWAYS TRY TO HELP PUT IT INTO PERSPECTIVE FOR EACH MONTH. 
          WE WILL PICK A TYPE OF SCENARIO THAT WE'VE EXPERIENCED IN THE PAST. 
          SO LOOKING AT THE MONTH OF DECEMBER, IT WAS VERY EASY TO LOOK BACK TO LAST YEAR TO WINTER STORM ELLIOT. 
          IT WAS A VERY RECENT, UM, SCENARIO THAT WE EXPERIENCED ON THE SYSTEM. 
          AND SO WHAT WE DID IS LOOKING AT, UM, KEEPING THE, THE LOAD EXPECTATIONS THAT WE SAW FOR LAST WINTER STORM ELLIOT, WITH THE INCREASES THAT WE'VE SEEN TO THE SYSTEM. 
          SO WE HAD TO INCREASE IT FOR THAT. 
          AND THEN WE TOOK OUTAGES THAT WERE COMPARABLE TO THAT SCENARIO. 
          WE, WE FIXED SOME OF THOSE PARAMETERS WHEN WE RAN OUR MODELS. 
          AND AS YOU CAN SEE, UM, LOOKING AT THE, THE 7:00 AM THE 8:00 AM HOURS, THOSE PROBABILITIES OF AN EMERGENCY ACTUALLY INCREASE. 
          AND SO FOR EXAMPLE, I'M LOOKING AT THE 8:00 AM LINE. 
          I KNOW IT'S HARD TO READ HERE ON THE SCREEN, BUT IF YOU HAVE IT IN FRONT OF YOU, THE PROBABILITY OF US GETTING INTO AN EMERGENCY, UM, ALERT FOR OUR ENDING 8:00 AM THAT PROBABILITY INCREASES TO JUST UNDER 18% IF WE HAD, UM, THE EXPECTED WITH THE LOAD GROWTH THAT WE'VE HAD, IF WE HAD THAT SAME TYPE OF WINTER STORM ELLIOT SCENARIO. 
          SO WE WILL TRY, UM, TO, AS WE COME FORWARD WITH THESE EACH MONTH, WE WILL INCLUDE A TYPE OF SCENARIO THAT WE'VE SEEN IN THE PAST JUST TO PUT THAT DIFFERENT, UH, RISK PERSPECTIVE TO BE ABLE TO COMMUNICATE TO THE READER WHAT WE'RE EXPECTING FOR THAT SEASON AND WHAT COULD HAPPEN IF WE SEE A SCENARIO THAT WE DID SIMILAR IN THE PAST. 
          UH, CHRISTIE, SO MAKE SURE I UNDERSTAND. 
          SO IF I THINK OF A WINTER STORM ELLIOT, THERE'S ALMOST A ONE IN FIVE CHANCE THAT WE WILL HAVE LESS THAN 2,500 MEGAWATTS RESERVE CAPACITY. 
          ME, I'M ROUNDING UP. 
          GOTCHA. 
          WE'RE SAYING. 
          YEAH, I THINK, UH, WOODY JUST CONFIRMED THAT. 
          YEAH, I MEAN IT'S UM, PRETTY HIGH. 
          I MEAN, UNCOMFORTABLY HIGH. 
          YES. 
          AND THAT IS LARGELY ATTRIBUTABLE TO THE FACT THAT SOLAR IS NOT GONNA HELP YOU OUT AS MUCH IN THE WINTER DURING THOSE PEAK HOURS AS IT DOES DURING THE SUMMER. 
          SO HOW DO WE MITIGATE THAT RISK OR MORE DISPATCH GENERATION, JUST THE ONE FIVE RISK? WELL, I MEAN, THERE'S SEVERAL WAYS. 
          IN THE LONGER TERM YOU WANNA GET MORE DISPATCHABLE GENERATION, MORE 
          [00:55:01]
BATTERIES WILL HELP. 
          UM, DEMAND RESPONSE. 
          THE, UH, CONTRACT FOR, FOR CAPACITY IS, IS ANOTHER AVENUE THAT YOU CAN TAKE TO, TO LOOK AT THIS. 
          SO THERE ARE THINGS THAT CAN, THAT CAN BE DONE IN THE SHORT TERM, BUT I THINK IN THE LONGER TERM, YOU'RE JUST GONNA HAVE TO MAINTAIN THAT BALANCE OF SOME DISPATCHABLE GENERATION WITH LOAD GROWTH. 
          WE'VE GOTTA HAVE THAT RIGHT LAST SLIDE IN THIS DECK. 
          UM, THIS IS A GROUP THAT I FEEL LIKE DOESN'T GET, UH, AS MUCH APPRECIATION AS THEY SHOULD. 
          THEY'RE, THEY'RE THE BACK PART OF THE BACKBONE OF OUR ORGANIZATION, THE NETWORK MODELING TEAM, AND ALL OF THE WORK THAT GOES INTO MAKING SURE WE HAVE THE PROPER MODELS TO RUN FOR NOT ONLY OUR PLANNING, BUT FOR OUR OPERATIONAL STUDIES AND ALL OF THE RESULTS THAT COME FROM THAT. 
          UM, THIS GROUP HAS, HAS BEEN BUSY WORKING, UM, AND WE'RE ACTUALLY GONNA BE HOSTING THE NORTH AMERICAN SIM OR COMMON INFRASTRUCTURE MODEL USERS GROUP, UH, THIS MONTH. 
          AND, YOU KNOW, ERCOT HAS REALLY BEEN KINDA ON THE CUTTING EDGE OF MAKING SURE THAT WE HAVE, WE'RE MOVING OVER TO THIS NODE, WE'RE MOVED OVER TO THE NODE BREAKER MODELS FOR PLANNING, UH, WHICH HELPS US TO GET BETTER INFORMATION INTO OUR PLANNING AND OPERATIONAL MODELS. 
          SO I WANTED TO, TO MAKE SURE WE, WE HIGHLIGHTED THE WORK THAT THIS TEAM HAS BEEN DOING, UM, 'CAUSE THEY'RE REALLY TAKING THE LEAD IN MOVING THAT EFFORT FORWARD FOR ALL GRID OPERATORS. 
          WITH THAT, I THINK I HAVE THE NEXT AGENDA ITEM, 
          [7.1.1 Update on Reliability Standard Study Results]
WHICH IS THE UPDATE ON THE RELIABILITY STANDARD, UH, RESULTS. 
          SO WE'VE BEEN WORKING CHRISTIE RIGHT BEFORE THAT. 
          ONE MORE QUESTION ON WEATHERIZATION. 
          ARE WE DOING ALL OF THE INSPECTIONS NOW INTERNALLY OR IS IT A MIX OF INTERNAL AND EXTERNAL? IT'S A MIX OF INTERNAL AND EXTERNAL. 
          UM, WE HAVE SET SOME GOALS TO TRY AND EXCEED WHAT THE P U C RULE REQUIREMENTS WERE. 
          SO AS WE GET THROUGH, WE WANNA MAKE SURE WE GET THROUGH, UM, THIS WILL BE OUR THIRD WINTER FOR THOSE INSPECTIONS. 
          AND WE'VE ALSO HAD A LOT OF NEW RESOURCES ADDED TO THE SYSTEM. 
          SO WE WILL BE USING SOME EXTERNAL RESOURCES AS WELL. 
          CHRISTIE, IN THE DECEMBER MODELING, WHAT AMOUNT OF WEATHERIZATION WAS ASSUMED FOR ON THE, ON THE MOURA REPORT? A MOURA REPORT? I WANNA SAY IS IT LIKE 85% EFFECTIVENESS? YEAH, SO IT'S 85% EFFECTIVENESS FOR WEATHER RELATED OUTAGES ON THERMAL UNITS. 
          OKAY, THANK YOU. 
          SO IT DOESN'T COUNT GAS SYSTEM OUTAGES, IT DOESN'T COUNT ICING ON TURBINES, IT DOESN'T COUNT SNOW ON, UH, SOLAR PANELS. 
          IT'S THE FROZEN INSTRUMENTATION TYPE OUTAGES. 
          WE ASSUME THE WEATHERIZATION WAS 85% EFFECTIVE. 
          ALL RIGHT. 
          A LOT OF GOOD WORK CONTINUES WITH THE RELIABILITY STANDARD. 
          UH, WE'VE BEEN WORKING, UH, HAND IN HAND, UH, WITH THE COMMISSION PROVIDING THEM CONTINUAL UPDATES. 
          WE'VE NOW ITERATED THROUGH AND PROVIDED THEM, UH, 48 DIFFERENT SCENARIOS WHERE WE LOOK AT THE FREQUENCY, MAGNITUDE AND DURATION AND THE PROBABILITY, UM, OF EXCEEDANCE IN THOSE TYPES OF SCENARIOS. 
          UH, WE, AS WE CONTINUE TO WORK WITH THEM, WE ACTUALLY HAD A STAKEHOLDER WORKSHOP THIS PAST FRIDAY WHERE WE WENT THROUGH, UH, WENT THROUGH ALL OF THE, THE MODEL DETERMINANTS, EXPLAIN WHAT WE'RE USING AND WHY WE'RE USING, HOW WE'RE USING THOSE, UM, FIELDED QUESTIONS FROM STAKEHOLDERS. 
          UH, WE GOT DIRECTION FROM NOT THE LAST OPEN MEETING, BUT THE OPEN MEETING BEFORE LAST TO RUN AN ADDITIONAL SET OF SCENARIOS WHERE WE, UM, CHANGE THE RESOURCE MIX TO HAVE MORE INVERTER BASED RESOURCES AS YOU COULD SEE FROM SOME OF THOSE SARAH, UH, TYPE AND MORO TYPE REPORTS THAT'S IN THE APPLICATION QUEUE. 
          THAT'S THE TYPES OF RESOURCES WE SEE COMING TO THE SYSTEM. 
          SO DOING SOME MODELING ON THAT. 
          UM, WE ARE TARGETING BEGINNING THE VALUE OF LOST LOAD STUDY. 
          UH, WE JUST, UH, FINALLY, UH, WERE ABLE TO COMPLETE CONTRACT NEGOTIATIONS WITH VENDORS AND SO WE'LL BE WORKING WITH BRATTLE AND, UH, LAWRENCE BERKELEY NATIONAL LABS AND DEVELOPING THOSE INSTRUMENTS WITH A GOAL OF GETTING THOSE OUT, THOSE SURVEYS OUT IN THE JANUARY TIMEFRAME SO WE CAN GET THAT INFORMATION FROM CONSUMERS ON, ON HOW THEY VALUE LOST LOAD AND HOW WE CAN TURN AROUND AND THEN INPUT THAT BACK INTO OUR STUDIES. 
          WE ALSO HAVE AN R F P THAT'S OUT, I THINK IT CLOSES THIS WEEK, UH, WHERE WE'RE LOOKING FOR A VENDOR TO WORK WITH US ON A COST OF INCH COST OF NEW ENTRY. 
          DOING THAT NEW STUDY, UH, TO GET THAT INFORMATION, UH, IF ALL GOES WELL ON THAT, WE SHOULD HAVE THEM ON BOARD IN THE, THE MONTH OF NOVEMBER, AND SO WE CAN MOVE FORWARD ON THAT WORK AS WELL. 
          SO A LOT OF GOOD PROGRESS, UM, ON THE RELIABILITY STANDARDS FRONT AND WE'LL, UH, CONTINUE ITERATING THROUGH WITH THE COMMISSION AND COMMISSION STAFF ON BRINGING THAT INFORMATION FORWARD TO HELP THEM NARROW THEIR DECISIONS DOWN THAT THEY'LL HAVE TO MAKE AS WE THEY OPEN UP THEIR RULEMAKING AND WE MOVE INTO NEXT YEAR. 
          [01:00:04]
ANY QUESTIONS? I THINK WE'RE ALL SET. 
          DAN, YOU'RE UP. 
          THANK YOU, CHRISTINE. 
          [7.2 System Operations Update]
NEXT UP IS DAN WOODFIN. 
          HE'LL PRESENT THE SYSTEM OPERATIONS UPDATE, WHICH IS AGENDA ITEMS 7.2. 
          ALL RIGHT. 
          HELLO AGAIN. 
          SO GOT THE STANDARD FOUR SLIDES IN HERE TO KINDA LOOK AT WHAT, WHAT'S GOING ON. 
          OBVIOUSLY WE HIT A NEW ALL TIME PEAK DEMAND BACK IN IN AUGUST. 
          UH, WE HIT ALMOST THAT HIGH IN SEPTEMBER. 
          UM, AND WE'RE GONNA TALK ABOUT THIS A LOT MORE IN THE FULL BOARD MEETING IN THE SUMMER RECAP TOMORROW. 
          UM, FORECAST PERFORMANCE HAS BEEN FROM A NET LOAD PERSPECTIVE HAS BEEN STAYING AT ABOUT THE SAME LEVEL IT HAS BEEN AT, SO IT'S WORKING WELL. 
          NO ISSUES THERE. 
          UH, FREQUENCY CONTROL ALSO HAS BEEN A STAYING AT ABOUT THE SAME LEVEL. 
          IT HAS BEEN AT, SO NO ISSUES THERE. 
          AND TRANSMISSION LIMIT CONTROL. 
          WE HAVEN'T HAD ANY I R L EXCEEDANCES SINCE, UH, BACK IN, UH, MARCH. 
          SO, UH, AND THAT ONE WAS NOT, UH, WAS RESOLVED IN PLENTY OF TIME, SO NO ISSUES THERE. 
          SO, UH, ANCILLARY SERVICES, UM, REGULATION STILL WORKING WELL. 
          YOU SEE A, A TALL BAR THERE FOR, UM, A REGULATION BEING, UH, RUNNING OUT, UH, IN KIND OF A EARLY MORNING HOUR AND LATE EVENING HOUR THAT LOOKS, LOOKS LIKE IT'S A TALL BAR, BUT IT'S REALLY, WE'RE NOT BUYING THAT MANY MEGAWATTS IN THOSE HOURS. 
          SO 50% OF LESS THAN A HUNDRED MEGAWATTS IS, IS NOT A LOT, DIDN'T CAUSE US ANY PROBLEM. 
          THE WAY THAT WORKS IS THAT, THAT THAT EXCEEDANCE WILL FILTER INTO THE ANCILLARY SERVICE QUANTITIES FOR NEXT YEAR, AND WE'LL ADJUST THE AMOUNTS THAT WE'RE BUYING IN THOSE HOURS AND BUY A LITTLE MORE, UH, IN THOSE HOURS FOR, FOR NEXT YEAR NONS SPEND. 
          UM, NO ISSUES THERE. 
          THERE'VE BEEN, UH, ALL OF THEM HAVE BEEN KIND OF, UH, THE, THE MOST OF THE NONS SPEND IS GETTING DEPLOYED THROUGH SELF DEPLOYMENT. 
          UH, AS YOU RECALL, NONS SPEND GETS DEPLOYED BEHIND A $75 OFFER CAP. 
          SO THAT'S, MOST OF IT HAS BEEN DEPLOYED FOR THAT FOR THE LIMITED NUMBER OF TIMES WE'VE DEPLOYED OFFLINE, NONS, SPIND, UH, IT'S PERFORMED WELL FOR E C R S. 
          UM, IT'S PERFORMED WELL IN OVER THE SUMMER. 
          UM, THERE'S WAS ONE TIME IN THE MONTH OF AUGUST AND THROUGH THE MIDDLE OF SEPTEMBER. 
          I GUESS I SHOULD ADD THIS ALL OF, BECAUSE OUR SUMMER SLIDES GO THROUGH THE MIDDLE OF SEPTEMBER. 
          THESE SLIDES, WE WENT AHEAD AND MOVED THEM TO WHERE THEY'RE GOING THROUGH THE MIDDLE OF SEPTEMBER ALSO. 
          UM, THERE WAS ONE TIME THAT WE DEPLOYED FOR FREQUENCY. 
          THE OTHER TIMES WE WERE RELEASING BECAUSE THERE WASN'T ENOUGH OVERALL SYSTEM CAPACITY TO, TO SERVE LOAD. 
          AND SO THAT, THAT WAS MOST OF THE TIMES THAT IT WAS RELEASED. 
          THAT WAS, THAT WAS WHY OVER THE COURSE OF THE SUMMER AND RESPONSIVE RESERVE, UH, WE HAD SEVERAL TIMES THAT WE ALSO RELEASED IT BECAUSE OF, UH, RUNNING OUTTA CAPACITY, AND WE'LL TALK MORE ABOUT THAT TOMORROW. 
          BUT THERE WAS, UM, THE ONE TIME THAT WHEN WE HAD A UNIT TRIP AND FREQUENCY WAS ALREADY LOW, THAT IT WAS DEPLOYED. 
          THE F F R WAS DEPLOYED ON SEPTEMBER 6TH. 
          I'LL TALK MORE ABOUT THAT IN A MINUTE. 
          UM, SO WE'VE GOT SEVERAL HOT TOPICS FOR YOU THIS MONTH. 
          UM, ONE IS KIND OF LOOKING AT THE FALL RESOURCE OUTAGES. 
          UH, THE SECOND ONE IS TALKING A LITTLE BIT ABOUT THE SOLAR ECLIPSE THAT WENT ON THIS PAST WEEKEND. 
          AND THEN FINALLY WANTED TO DO A, A LITTLE BIT OF A MORE OF A DEEP DIVE INTO THE E E A EVENT ON SEPTEMBER 6TH. 
          UM, GOT A LITTLE MORE INFORMATION FOR THE R AND M COMMITTEE THAN WHAT WE'LL HAVE FOR THE BOARD TOMORROW AS PART OF THE SUMMER RETROSPECTIVE. 
          SO FOR, UH, RESOURCE OUTAGES, AND THIS IS, THIS IS REALLY THE, THE, THE NON-RENEWABLE RESOURCE OUTAGES. 
          AS YOU RECALL, THERE WAS AN N P R R PASS THAT WHERE WE, WE DO SOME ANALYSIS AND CAP THE NUMBER OF MEGAWATTS THAT ARE OUT ON EVERY MAXIMUM THAT ARE OUT ON EVERY GIVEN DAY. 
          UH, AND YOU CAN SEE THAT THE AMOUNT THAT ARE BEING SCHEDULED, UH, AS OF WEEK AND A HALF OR SO AGO WHEN WE PULLED THIS SLIDE, IS, IS, IS BUMPING RIGHT UP AGAINST THAT LIMIT THROUGH THE MIDDLE OF NOVEMBER. 
          UH, BUT THERE'S STILL A LOT OF, UH, AVAILABILITY TO TAKE MORE OUTAGES TOWARD THE BACK END OF NOVEMBER. 
          AND SO, UM, Y YOU KNOW, THIS, THIS WAS SET UP AND WHEN WE SET IT UP, IT'S SET UP TO BE SELF-REGULATING. 
          I KNOW SOME OF THE QUESTIONS THAT WE'VE GOTTEN IS, WELL, ARE PEOPLE NOT ABLE TO TAKE THE OUTAGES THAT THEY'RE REQUESTING? UM, WELL, IT'S SET 
          [01:05:01]
UP TO BE SELF-REGULATING BECAUSE THE AMOUNT, MAXIMUM AMOUNT IS POSTED. 
          AND IF YOU, YOU CAN LOOK AT THAT. 
          IF YOU, IF YOU SEE THAT YOU'RE ALREADY OVER THE LIMIT FOR THAT TIME PERIOD, YOU'VE GOTTA GO FIND ANOTHER, UH, TIMEFRAME TO, TO TAKE YOUR OUTAGE. 
          BUT YOU CAN SEE FROM KIND OF THE BACK END OF NOVEMBER, THERE'S STILL LOTS OF CAPACITY THERE. 
          THAT OUTAGE WHERE OUTAGES COULD BE TAKEN, EXCUSE ME, UM, THE SOLAR ECLIPSE. 
          UM, SO IT REALLY WOUND UP BEING SOMEWHAT OF A NON-EVENT. 
          UM, THE, UH, MARKET PARTICIPANTS BROUGHT ON EXTRA GENERATION TO BE PREPARED FOR IT, TO THE TUNE THAT WE HAD ABOUT 27 GIGAWATTS OF ADDITIONAL CAPACITY ABOVE OUR ANCILLARY SERVICE PLUS LOAD, UH, GOING INTO THE EVENT. 
          UM, AND SO WE ACTUALLY HAD NEGATIVE PRICES DURING THAT, THAT TIME PERIOD BECAUSE WIND AND SOLAR GENERATION WAS CURTAILED, UH, AHEAD OF TIME. 
          BUT JUST BECAUSE THERE WAS ENOUGH GENERATION ONLINE THAT YOU HAD TO BACK DOWN SOMETHING TO MATCH LOAD. 
          AND WHAT IT, WHAT HAD FLEXIBILITY TO MOVE DOWN WAS THE WIND AND SOLAR. 
          SO WE WOUND UP WHERE WE COULD HAVE SEEN A, SAY A 12, UH, GIGAWATT RAMP OR SO OF, OF SOLAR. 
          WE ONLY SAW ABOUT FIVE GIGAWATTS OF DOWN RAMP OF, OF THE SOLAR DURING THAT TIMEFRAME. 
          UM, AND SO IT, BECAUSE WE WERE STARTING FROM A MUCH LOWER POINT AND WE GOT DOWN TO AS LOW AS, UH, LITTLE OVER LITTLE UNDER 1500 MEGAWATTS OF SOLAR, UH, THE CAPACITY THAT COULD HAVE BEEN THERE WAS MORE LIKE 1200. 
          SO YOU CAN SEE IT COULD HAVE BEEN BIGGER, BUT BECAUSE IT WAS CURTAILED, WE STARTED FROM A LOWER POINT AND DIDN'T HAVE AS MUCH TO MOVE DOWN. 
          AND SO IT REALLY WOUND UP BEING A, UH, UH, NOT, NOT A PROBLEM. 
          UH, AT THIS POINT, WE'LL, WE'LL CONTINUE TO DO MORE ANALYSIS OF THAT. 
          WE'VE ALREADY STARTED WORKING ON LESSONS LEARNED BECAUSE THERE IS A FULL SOLAR ECLIPSE THAT'S GONNA OCCUR NEXT YEAR, UH, IN APRIL. 
          AND SO WE'RE GONNA USE THE LESSONS LEARNED THAT WE GOT FROM THIS ABOUT THINGS LIKE RUNNING SC MORE OFTEN AND, UM, UH, MAYBE PUTTING OFFSETS IN TO MAKE SURE THAT WE'VE GOT ALL THE GENERATION MOVED UP FASTER. 
          WE'RE GONNA BE LOOKING AT THOSE KIND OF THINGS AND TO GET PREPARED FOR THAT APRIL EVENT. 
          OKAY. 
          THEN ON THE, YOU COMMENTED WELL, ABOUT THE GENERATION SIDE, WAS THERE ANY TRANSMISSION ISSUES? NO. 
          NO. 
          AS A RESULT OF THE PATH OF THE ECLIPSE? NOT, NOT, NOT REALLY. 
          WE DIDN'T SEE ANYTHING, NO. 
          OKAY. 
          THE, THE E E A EVENT, UH, ON SEPTEMBER 6TH. 
          UM, SO IN GENERAL, UH, UH, TEMPERATURES WERE, WERE PRETTY HIGH STILL IN THE FIRST PART OF SEPTEMBER, EXCUSE ME. 
          UM, 105 DEGREES IN DALLAS WAS LOW WIND EARLIER IN THE, IN THE AFTERNOON. 
          AND SO WE WOUND UP, HAD ALREADY DEPLOYED NONS SPIN AND D C R S BY BY 3:00 PM. 
          UM, AS THE SUN STARTED TO GO DOWN, THEN WE WERE REALLY JUST OUT OF CAPACITY IN NORTH CENTRAL AND WEST TEXAS. 
          SO AS THE SUN DROPPED OFF, WE DIDN'T HAVE AS MUCH GENERATION IN THAT AREA, THAT KIND OF BROAD NORTH AREA, UH, TO SERVE THE LOAD. 
          AND THE LOAD WAS STILL VERY HIGH. 
          OH, THANK YOU. 
          TECHNOLOGY SERVE, UH, HELPING OUT WITH OPERATIONS, RIGHT? THE, UM, AS THE, UM, WE STILL HAD A LITTLE BIT OF A, UH, CAPACITY AVAILABLE IN THE SOUTH, UH, BUT THE USE OF THAT, UH, CAPACITY IN THE SOUTH OVERLOADED A KEY TRANSMISSION CONSTRAINT THAT, THAT WAS PRETTY HIGH RISK, UM, OF, OF CAUSING PROBLEMS WHEN WE EXPORTED POWER FROM SOUTH TEXAS TO THE, THE BROAD NORTH AREA. 
          AND SO OUR OPERATORS LOOKED AT IT AND SAID, WE'VE GOTTA BALANCE THE RISK FROM THAT KIND OF HIGH RISK TRANSMISSION CONSTRAINT AGAINST THE RISK OF GOING INTO E E A. 
          AND THEY BEGIN TO MANUALLY CURTAIL SOME OF THE GENERATION IN THE SOUTH THAT, THAT OUR SECURITY CONSTRAINT ECONOMIC DISPATCH WAS TRYING TO USE BECAUSE IT WAS, WAS OUT. 
          AND, UM, SO THEY MADE THE RIGHT DECISION THERE, UM, AT ABOUT 7:00 PM OUR, WHILE OUR PHYSICAL RESPONSIVE CAPABILITY, SO THIS IS OUR AMOUNT OF CAPACITY RESERVES THAT ARE ONLINE AND SHOULD BE AVAILABLE TO BOOST UP FREQUENCY AUTOMATICALLY IF FREQUENCY STARTS TO DROP. 
          P R C WAS STILL, UH, BEING, UH, REPORTED AS BEING ABOUT 2000 MEGAWATTS. 
          BUT FREQUENCY STARTED TO DECLINE AS WE, AS WE MANUALLY MOVED DOWN THE GENERATION TO UNLOAD THE TRANSMISSION CONSTRAINT. 
          AND SO DURING THE SAME TIME PERIOD, WE HAD A, A LOSS OF A, AN 80 MEGAWATT GENERATOR, YOU SAW ON THE EARLIER PART OF THE SLIDES 
          [01:10:01]
THAT WE, UH, THAT WE DEPLOYED F F R AUTOMATICALLY AS A RESULT OF THAT. 
          AND SO WHEN FREQUENCY KEPT GOING DOWN, WE DECLARED EEA TWO, WE DEPLOYED THE, UH, LOAD RESOURCES THAT ARE, UH, THAT WE DEPLOY WHEN WE, WHEN WE GO INTO EEA TWO. 
          AND THEN WE ALSO AT THIS POINT STARTED LOOKING AT, WE HAD BEEN LOOKING FOR QUITE SOME TIME AT, AT SWITCHING ACTIONS THAT WE COULD DO TO TRY TO RESOLVE THE TRANSMISSION CONSTRAINT. 
          AND SO WE HADN'T COMPLETELY FINISHED, UH, LOOKING AT THAT, BUT WE SAID, LET'S GO AHEAD AND IMPLEMENT IT, EVEN THOUGH WE DON'T HAVE ALL THE AGREEMENT TO DO IT. 
          SO WE WENT AHEAD AND PUT IT, DID THE SWITCHING. 
          UH, AND THAT ALLOWED US TO THEN START TO ADD BACK SOME OF THE MANUALLY CONSTRAINED GENERATION, BRINGING MORE TO THE TABLE. 
          AND WE HAD MORE RESOURCES BOTH FROM LOAD RESOURCES AND ALSO FROM, UH, FROM THIS ADDING BACK MANUAL THAT WHAT HAD BEEN CURTAILED. 
          AND THAT ALLOWED US TO COME OUT OF THE E E A BY ABOUT 7 37. 
          AND SO A FEW OBSERVATIONS WHEN WE'VE GOT 2000 MEGAWATTS OF P R C FREQUENCY SHOULD NOT HAVE DROPPED IF THAT HAD BEEN A, A, A VALID NUMBER. 
          UH, BECAUSE WHAT HAPPENS IS ALL GENERATION, STEPHANIE ACTUALLY POINTED THIS OUT WHILE AGO, THAT ALL GENERATION THAT HAS HEADROOM SHOULD AUTOMATICALLY RESPOND TO FREQUENCY AND MOVE UP WHEN, UH, WHEN WHEN FREQUENCY STARTS TO DROP. 
          SO THAT, THAT BASICALLY, IF WE'D REALLY HAD 2000 MEGAWATTS OF HEADROOM, WE SHOULD NOT HAVE HAD THE FREQUENCY EVENT. 
          UH, THE CONTROL ROOM OPERATORS RECOGNIZED THAT THAT 2000 MEGAWATT NUMBER WAS, WAS SUSPICIOUS, AND WE, THEY COULDN'T TRUST IT BECAUSE ULTIMATELY FREQUENCY IS THE ULTIMATE TRUTH TELLER. 
          UM, AND SO THEY DECLARED THE EEA TWO AS A RESULT OF THAT SO THAT THEY COULD DEPLOY THE, THE LOAD RESOURCES. 
          UH, AND WE DID NOT IMPLEMENT ANY KIND OF CONTROLLED OUTAGES DURING THIS EVENT. 
          AND SO OUR CURRENT, CURRENTLY WHAT WE'RE DOING IS KIND OF A FOLLOW UP TO THIS, IS INVESTIGATING. 
          WE'VE, WE'VE SENT OUT RFIS TO ALL THE ENTITIES THAT WERE SHOWING, UH, THAT THEY HAD HEADROOM AVAILABLE TO FIND OUT WHY, WHAT, WHAT WAS GOING ON THERE. 
          SO WE CAN, WE CAN FIND OUT WHY WE WERE SHOWING WE HAD 2000 MEGAWATTS WHEN IN FACT WE, BECAUSE OF THE LOW FREQUENCY, WE OBVIOUSLY DIDN'T. 
          UM, AND THEN WE'RE ALSO WORKING ON, UH, MITIGATION, ADDITIONAL MITIGATIONS FOR THE, UH, TRANSMISSION CONSTRAINT. 
          THAT WAS A PROBLEM. 
          THERE'S ALREADY BEEN A, A, UH, PLANNED TRANSMISSION LINE THAT'S BEEN APPROVED BY THE BOARD, AND THAT WILL BE COMING, BUT IT'S GONNA BE, UH, FEW YEARS DOWN THE ROAD. 
          SO WE'RE LOOKING FOR MORE INTERIM SOLUTIONS, UH, TO TRY TO ELIMINATE THE, THE NEED TO, TO WHERE THIS WOULD BE A PROBLEM, UH, GOING FORWARD. 
          AND SO WITH THAT, I WILL, UH, ANSWER ANY QUESTIONS YOU MAY HAVE OR ANY ADDITIONAL QUESTIONS. 
          DAN, WHEN WILL ERCOT HAVE THIS FOLLOW-UP FORENSIC ANALYSIS COMPLETED ON THE SEPTEMBER 6TH EVENT? WE'RE ACTUALLY, UH, HAVE EVERYTHING COMPLETE EXCEPT THE PART THAT THAT'S WHERE WE'RE WAITING ON THE RFIS. 
          AND SO ONCE WE GET THAT COMPLETE, WE'LL HAVE KIND OF THE CONFIDENTIAL E C I I TYPE, UH, UH, REPORT AVAILABLE. 
          WILL THAT GET FILED AT THE COMMISSION OR HOW WILL THAT BE PROVIDED TO US? I DON'T KNOW THE ANSWER TO THAT, BUT WE'LL, WE'LL, WE'LL TRY TO GET IT TO YOU SOMEHOW. 
          OKAY. 
          THANK YOU. 
          THAT REPORT WILL HAVE CONFIDENTIAL INFORMATION IN IT. 
          SO DAN, HAS THIS HAPPENED ANYTIME IN THE RECENT PAST? TH THIS BEING THE SAME, UH, SCENARIO WHERE P R C IS FALSE OR INCORRECT? WE, UM, OR SUSPICIOUS WHATEVER LANGUAGE USED THE, THE OTHER TIME THAT I CAN THINK OF. 
          SO WE DO THINGS LIKE, UH, UNANNOUNCED UNIT TESTING TO MAKE SURE THAT UNITS CAN GO TO THE CAPACITY THAT, THAT THEY'RE ABLE TO GET TO. 
          UM, WE, WE THINK THERE WERE PROBABLY, UH, THREE DIFFERENT THINGS GOING ON. 
          MAYBE CONTROL SYSTEMS WEREN'T SET UP EXACTLY RIGHT ON SOME OF THOSE UNITS THAT WE WERE MANUALLY CONSTRAINING. 
          SO THEY CONTINUED TO GO DOWN, EVEN THOUGH FREQUENCY, UH, DECAY, UH, WE'VE LOOKED AT THAT SOME, SOME OF THE ISSUE WAS DUE TO BATTERIES THAT WERE STILL REPORTING US THAT THEY HAD CAPACITY AVAILABLE, BUT IN FACT, THEIR STATED CHARGE WAS DEPLETED. 
          AND SO, UH, THEY WERE, BUT THEY WERE STILL SHOWING US CAPACITY. 
          SO THAT WAS GOING INTO THE P R C CALCULATION. 
          UM, AND THEN OTHER MAYBE SOMETHING THAT WHERE UNITS JUST COULDN'T QUITE GET TO THE LEVEL THAT THEY THOUGHT THEY COULD GET TO IN TERMS OF THEIR OUTPUT. 
          AND SO WE'RE, WE'RE, WE'RE, WE'RE INVESTIGATING THAT. 
          UM, DIFFERENT ASPECTS OF THAT HAVE HAPPENED AT OTHER TIMES. 
          ONE OF THE, ONE OF THE KEY ONES WAS THAT BACK DURING URI, WE ACTUALLY HAD, UH, HIGHER P R C THAN WHAT, UM, UM, 
          [01:15:01]
SAME BASIC SITUATION. 
          AND WE FILED AN N P R R 10 85 TO MAKE IMPROVEMENTS TO THIS, BUT WE MAY NEED TO, TO FILE AN ADDITIONAL N P R BASED ON WHAT WE INVESTIGATE HERE TO SEE IF THERE ARE OTHER IMPROVEMENTS THAT WE NEED TO MAKE. 
          ANY OTHER QUESTIONS? OKAY. 
          THANKS DAN. 
          KENNAN, GELMAN HAS THE NEXT THREE AGENDA ITEMS, 7.3 
          [7.3 Commercial Markets Update]
COMMERCIAL MARKETS UPDATE, 7.3 0.1 REALTIME CO OPTIMIZATION UPDATE, AND 7.4, THE MARKET CREDIT UPDATE. 
          THANK YOU. 
          UM, SO I THINK, UH, UH, THE PURPOSE OF THIS IS TO UPDATE YOU ON SEVERAL ITEMS. UH, WE HAVE A STANDING A D E R UPDATE. 
          UH, I THINK, UH, I'LL, I'LL SPEND SOME MORE TIME ON THE SLIDES THERE. 
          BUT THE KIND OF KEY TAKEAWAY IS THAT, UH, THAT PROGRAM IS GROWING, UM, AND THE PARTICIPATION LEVEL OF COMPLEXITY IS GROWING, UH, AS WELL. 
          UM, I HAVE SOME, UH, SEVERAL SLIDES ON SUMMER PRICING OUTCOMES AND OTHER, OTHER DYNAMICS THAT ARE INVOLVED IN SUMMER PRICING AS, AS WELL. 
          AND THERE ARE NO VOTING ITEMS. UM, SO FIRST ON A DERS, UH, THE ERCOT WIDE ENERGY COMING FROM ADR IS UP TO 8.3, UH, MEGAWATTS. 
          UM, AND THEY'RE PROVIDING 2.7 MEGAWATTS OF NONS SPEND. 
          THIS WOULD BE, UH, UH, NOTICEABLE INCREASE, UM, RELATIVE TO WHAT I REPORTED, UH, TWO MONTHS AGO, BUT STILL A SMALL PORTION OF, UH, 80 GIGAWATT, UH, SYSTEM. 
          UM, I DO THINK THAT THERE ARE, UH, ENOUGH SUCCESSES THAT, UH, THE, THE, UH, THE GROUP THAT THE COMMISSION HAS STARTED IS STARTING TO ASK, WELL, WHAT ARE NEXT STEPS? AND, UH, THOSE TYPES OF ACTIVITIES. 
          SO WE PLAN TO ENGAGE THEM ON, ON THAT FRONT. 
          UM, THERE ARE, UH, A LOT OF A D R STILL APPLYING, BUT HAVE NOT BEEN ABLE TO SOLVE SOME OF THE, UH, NONS SPEND BASE POINT FOLLOWING REQUIREMENTS. 
          SO WE WOULD ALSO LIKE TO SEE THEM BE, UH, SUCCESSFUL IN, IN THIS PILOT. 
          SO DIFFERENT, UH, DIFFERENT PARTIES HAVE KIND OF SOLVED THE PROBLEM AT, AT DIFFERENT SPEEDS. 
          SO, UM, UH, I THINK THERE'S WORTHWHILE ENGAGEMENT ON THAT FRONT AS WELL. 
          UH, MR. CHAIRMAN KENAN, UH, JUST ON THIS, THIS IS, THIS IS A USEFUL POINT IN TIME TO HAVE A CHECK-IN ON THE A D R PILOT JUST BECAUSE OF THE, UH, THE CAPACITY R FP MM-HMM. 
           THAT ERCOT HAS NOW LAUNCHED. 
          DO YOU BELIEVE THAT SOME OF THE, UM, BECAUSE A LOT OF RESOURCES THAT ARE NOT CURRENTLY ABLE TO PARTICIPATE IN THE A D R PILOT IS EXACTLY AS YOU SAY, THEY CANNOT FOLLOW THE BASE POINTS. 
          IT'S A VERY STRICT REQUIREMENT. 
          DO YOU BELIEVE THAT, UM, SOME OF THOSE RESOURCES THAT COULD ULTIMATELY BE AGGREGATED AS A, AS A DEMAND RESPONSE TOOL, UM, BUT CANNOT FOLLOW BASE POINTS FOR DISPATCH AS AN ANCILLARY COULD NOW QUALIFY UNDER ERCOT CONCEPT OF THE, UH, CAPACITY R F P? I THINK THAT'S ABSOLUTELY FEASIBLE. 
          THE THING YOU WANT TO BE, THE FACTOR YOU WANT TO BE CAREFUL ABOUT IS IF THEY PASSIVELY RESPONDED DURING THE ANALYSIS THAT SHOWED US SHORT. 
          IF YOU ADD THEM INTO THIS, YOU'RE JUST MOVING THE RESPONSE PETER TO PLAY BALL. 
          YEAH. 
          OKAY. 
          SO WE WOULD WANT TO JUST BE, UH, CONFIRM THAT THEY'RE NEW, THAT THEY WERE UNABLE TO, YOU KNOW, RESPOND AT, AT THIS TI AT, AT THE TIMES THAT WE'VE SEEN IN THE PAST. 
          BUT, UM, IT, THE, IT'S GROWING SO FAST THAT THERE HAS TO BE SOME THAT WEREN'T AROUND, UM, DURING PREVIOUS TYPE CONDITIONS. 
          SO I BELIEVE THAT'S A ACCURATE OBSERVATION. 
          THE REASON I ASK IS, UH, GENERAC GENERATORS HAVEN'T BEEN ABLE TO FOLLOW BASE POINTS, UH, TO, TO DATE, BUT THEY DO OFFER A, UH, A DR CAPABILITY TO TURN THOSE RESIDENT OR THOSE PREMISES OFF. 
          SO I WAS JUST WONDERING IN THAT CONTEXT, IF THAT'S, IF THIS IS A BRIDGE TOWARD THAT POOL OF RESOURCES, I MEAN, TO ME, THOSE, THE ONES THAT DID NOT RESPOND, AGAIN, WOULD BE IDEAL CANDIDATES FOR, FOR THE PROGRAM. 
          THANKS. 
          [01:20:07]
UM, SO, AND, AND, AND WE'VE RAISED THIS ISSUE BEFORE, BUT, UM, PRICES IN AUGUST OF 2023 HAVE BEEN MUCH HIGHER THAN EVEN THE, UH, MONTH PREVIOUS. 
          BUT ALSO EVEN, UH, IF WE WENT BACK TO AUGUST OF 2022, WHICH WAS A VERY WARM TIME PERIOD, WE SAW MUCH HIGHER PRICES, UM, THIS AUGUST THAN, THAN WE HAVE SEEN IN THE PAST. 
          UM, AND, UH, THE ANALYSIS KIND OF SHOWS COMPARATIVELY HOW MUCH, UH, THAT INCREASE EXISTED. 
          IF YOU WERE TO LOOK AT SEPTEMBER, UH, YOU WOULD SEE AN INCREASE IN SEPTEMBER AS WELL. 
          UM, AND AS A CONSEQUENCE, PEAKER NET MARGIN IS AT THE HIGHEST POINT IT'S BEEN SINCE 2021. 
          AND, UM, I JUST WOULD WANNA HIGHLIGHT TO THE COMMITTEE THAT AT AROUND 315,000, THERE'S A CIRCUIT BREAKER THAT TRIGGERS, AND WE WOULD GO TO AN OFFER CAP THAT IS SIGNIFICANTLY LOWER THAN THE 5,000. 
          SO WE'RE IN, IN A REGION WHERE A COLD SNAP IN DECEMBER COULD TRIGGER THAT LOWER PRICE, UH, BEFORE THE YEAR IS OUT, THAT WOULD ONLY RESET WHEN THE NEXT YEAR STARTS. 
          SO, UM, THERE, I THINK THERE'S TWO KEY THINGS I WOULD WANT TO SHARE WITH YOU. 
          FIRST IS, UM, PEAKER NET MARGIN, UH, WAS SIGNIFICANT. 
          UM, AND IT ALSO HAPPENED IN AN ENVIRONMENT WHERE GAS PRICES WERE LOWER. 
          UM, ALSO THAT THERE IS THIS TRIGGER THAT I WOULD WANT JUST REFRESH EVERYBODY'S MEMORY ABOUT, UM, THAT, THAT WE'RE GETTING SLIGHTLY CLOSE TO OR CLOSER TO THAN WE HAVE IN THE PAST. 
          SO, KANAN, IF THAT, IF WE HIT THAT TRIGGER, IT SEEMS THAT THAT WOULD THEN PENALIZE SOME OF THE MARGINAL ASSETS THAT ARE IN THE MARKET BECAUSE OF THE OFFER CAP BEING REDUCED. 
          IS THAT, I ACTUALLY THINK ABOUT THAT. 
          SO THERE, THERE, THERE IS A RISK, UM, BUT IN THE RULE THAT WAS ALSO ADDRESSED IN THAT, UM, ESPECIALLY IF YOUR COST EXCEEDED THE, THE LOWER OFFER CAP, UM, BECAUSE OF FUEL INPUTS OR SOMETHING LIKE THAT, THERE IS A MECHANISM BY WHICH WE WOULD, UM, MAKE, UH, ENTITIES WHOLE TO RUNNING AT THAT TIME. 
          BUT BY AND LARGE, SO IT'S, IT'S, THE LOW CAP IS $2,000 BY AND LARGE, IF I WAS A 10 HEAT RATE UNIT, AND, UH, YOU KNOW, I I I OFF GAS PRICES WERE A HUNDRED, EVEN AT A THOUSAND, UH, THERE IS ROOM TO, UH, MAKE A MARGIN IN ADDITION TO THE MARGIN YOU'VE MADE IN THE YEAR SO FAR. 
          YEAH. 
          IT'S JUST THAT THE MARGINAL ASSETS DON'T RUN THAT OFTEN. 
          SO, UM, HOPEFULLY THEY DID RUN OVER THE SUMMER AT, AT THE HIGHER RESPECTABLE RETURNS. 
          UM, SO, UH, BUT, BUT THERE ARE, UH, ANYTIME YOU KIND OF CAP, UH, THE MARKET AT, AT A LOWER LEVEL, THERE ARE SOME, UH, CONSEQUENCES THAT HAVE TO BE ADDRESSED. 
          CAN, WE'RE NOT, ARE, I DON'T KNOW, FROM CHRISTIE'S PRESENTATION EARLIER WHERE WE'VE GOT ABOUT THREE TIMES THE AMOUNT OF MEGAWATTS IN THE QUEUE OVER THE LAST THREE YEARS, BUT WE'RE NOT SEEING THAT. 
          IT'S NOT, IT'S NOT PEAKERS THOUGH THAT, THAT THAT'S BY AND LARGE TRUE. 
          I THINK THERE ARE SOME PEAKERS BEING BUILT, BUT I WOULD PUT THAT IN A VERY, A MUCH MORE MINOR CATEGORY. 
          UM, SO I, I, I THINK THERE IS, UH, SOME OF THE, UH, UNCERTAINTY ABOUT WHAT THE MARKET LOOKS LIKE GOING FORWARD IS, HAS AN IMPACT ON, UH, INVESTMENT DECISIONS. 
          MY UNDERSTANDING ALSO IS THAT THE SPREAD ON THE FORWARDS IS, IS VERY LARGE, WHICH IS CREATING DIFFICULTIES IN TERMS OF CREATING A MATCH BETWEEN A WILLING BUYER AND SELLER THAT WOULD, UH, LEAD TO A LONG TERM CONTRACT THAT WOULD HELP A BUILD DECISION. 
          SO, UH, I, I DO THINK THERE ARE SOME OTHER FACTORS IN, IN OUR MARKET THAT HAVEN'T SETTLED OUT YET THAT, UH, THAT HA ARE HAVING AN IMPACT. 
          UH, ONE, ONE OTHER THING I WOULD JUST ADD IS I THINK THERE'S A LOT OF UNCERTAINTY OF HOW INDICATIVE 
          [01:25:01]
IS 2023 TO NEXT SUMMER OR, OR, OR THE SUMMER AFTER THAT. 
          UM, SO I THINK THOSE ARE ALSO, UH, FACTORS THAT INVESTORS, YEAH, I MEAN, YOU LOOK AT JUST THE LAST THREE YEARS WHEN YOU HAVE 230,000 MEGAWATTS IN THE QUEUE FOR, CALL IT A HUNDRED THOUSAND MEGAWATT MARKET, RIGHT? UM, THE, UH, O R D C CAPACITY, UM, HAS, UH, UH, LIKE I SAID BEFORE, THE RESERVES IN 2023, THE AMOUNT OF RESERVES THAT WE HAD WHEN WE CALCULATE O R D C ARE ACTUALLY, UH, HIGHER, UM, THAN THEY WERE IN 2022. 
          SO, YOU KNOW, WE'RE SEEING THESE HIGH PRICES, BUT THE RESERVES ON THE SYSTEM ARE ACTUALLY AT, AT A, AT A HIGHER LEVEL. 
          AND THIS HAS ACTUALLY BEEN IN THE PRESS AND, UH, BEEN DISCUSSED AND IT WILL CONTINUE TO BE DISCUSSED, BUT THAT DYNAMIC, UM, IS, UH, IS A INDICATOR THAT WE'RE NOT GETTING TO O R D C TYPE SCARCITY IN TERMS OF CREATING SOME OF THE PRICING EFFECTS THAT WE, WE SEE IN THE MARKET. 
          SO THEN THE QUESTION IS WHERE, WHAT, WHAT'S DRIVING THE PRICES? WHERE, WHERE IS THE PRICE FORMATION, UH, KIND OF COMING FROM? AND AGAIN, THIS IS A, THIS IS A SLIGHTLY DIFFERENT WAY, BUT IT'S COM IF YOU LOOK AT 2022 VERSUS 2023, YOU SEE THAT THE O R D C, THE ADDER AND THE, UH, UH, RELIABILITY DEPLOYMENT ADDER THAT, THAT WE DO, UH, DIDN'T CONTRIBUTE AS MUCH TO PRICE FORMATION AS IT DID IN 2022. 
          2023 WAS DIFFERENT, UM, FOR, FROM THAT STANDPOINT. 
          UM, AND ONE, UH, EXPLANATION OF THAT IS THAT WE'RE MUCH MORE DEPENDENT ON, UH, STORAGE RESOURCES OR LIMITED DURATION RESOURCES THAT ARE TRYING TO MANAGE A STATE OF CHARGE WITH AN OFFER. 
          SO, UM, THEY, THEY CAN'T NECESSARILY RUN FOR, UH, FOUR HOURS IN THE AFTERNOON AND FOUR HOURS AROUND NOON AND FOUR HOURS IN THE AFTERNOON. 
          SO THEY HAVE TO FIGURE OUT A WAY, UH, IN OUR MARKET TO MAKE SURE THEY'RE THERE FOR THE HIGHEST PRICED, UH, INTERVALS ON, ON, ON THE BACKSIDE. 
          AND RIGHT NOW, THE WAY WE DO THAT IS WE LET THEM, UH, PRICE THEIR ENERGY IN SUCH THAT THEY CAN, UH, MAKE SURE THAT THEY'RE THERE WHEN WE NEED THEM THE MOST. 
          AND I'M BRINGING THAT UP BECAUSE THAT HAS TWO, TWO IMPLICATIONS. 
          FIRST, YOU KNOW, WE TALKED ABOUT SCED HAVING A LOT LESS ENERGY TO ACCESS, BUT WHAT IT DID HAVE TO ACCESS WAS AT A MUCH HIGHER PRICE. 
          SO THAT LEADS TO HIGHER PRICE FORMATION, HIGHER COST TO THE MARKET IN 2023. 
          THIS IS NOT NEC NECESSARILY SOMETHING GOING WRONG. 
          IT'S A RECOGNITION OF THE DIFFERENT TYPES OF RESOURCES THAT WE'RE DEPENDENT ON, AND THEY'RE NEW, AND WE'RE JUST LEARNING HOW TO, UH, UH, MANAGE THEM. 
          UM, I WANNA, UH, UH, I'LL, I'LL BRING THIS UP AGAIN LATER, BUT, UH, I THINK WE ARE, UH, THAT WHEN, UH, WE PASSED SOME OF THE ENERGY STORAGE RESOURCE, UH, PARAMETERS AND THOSE TYPES OF THINGS, THERE WAS A REQUIREMENT THAT WE REVIEW THEM AT THE END OF THIS YEAR THAT IS GONNA BE TAKING PLACE. 
          UM, SO I JUST WANTED TO MAKE SURE PEOPLE UNDERSTOOD THAT WE'RE, WE'RE LOOKING AT THIS, UM, IT, AND THIS, UH, IMPACTS NOT JUST OVERALL SYSTEM PRICES, BUT CONGESTION MANAGEMENT AS WELL. 
          SO, UM, IF YOU HAVE A HIGH OFFER AND A LOW KIND, LOW-ISH, UH, SHIFT FACTOR IMPACT ON A CONSTRAINT, YOU'RE GONNA HIT THE SHADOW PRICE CAP AND SCS NOT GONNA DEPLOY YOU. 
          UM, AND WE DON'T NECESSARILY HAVE ALL OF THOSE RESOURCES AVAILABLE TO US TO MANAGE CONGESTION. 
          SO THAT MEANS THERE'S LESS ENERGY AVAILABLE TO SC UH, TO MANAGE. 
          SO, UH, TO KINDA LOOK AT THIS, UM, I ASKED MY TEAM TO RUN, DO A RUN. 
          THEY'RE DOING SEVERAL OTHER RUNS, BUT THE IDEA WAS THAT WE WOULD LOOK AND SAY, OKAY, LET'S SEE WHAT HAPPENS IF WE CAN CAP ALL THESE RESOURCES AT $150. 
          AND I'M BY NO MEANS SAYING THAT'S A REASONABLE CAP. 
          I'M JUST TRYING TO DEMONSTRATE HOW THINGS PLAY OUT. 
          IF YOU DO THAT, YOU REALLY WANT STORAGE RESOURCES TO BE ABLE TO OFFER IN AT THEIR OPPORTUNITY COST AND NOT SOME 
          [01:30:01]
SET DOLLAR AMOUNT. 
          UM, SO, UH, I, I WANT TO CAVEAT THAT BEFORE I PUT ON THE NEXT SLIDE. 
          UM, BUT, BUT IT IS, UH, INFORMATIVE TO HOW IT IMPACTS THE WAY THE REST OF THE MARKET RUNS. 
          SO THE FIRST THING IS, WITH THIS CAP, UM, SYSTEM COSTS DRAMATICALLY WENT DOWN. 
          UM, WE ARE DOING ADDITIONAL RUNS, THESE TAKE A A LONG TIME, BUT, UH, I JUST GOT THE RUN FOR A, IF I, IF WE CAPPED EVERYTHING AT A THOUSAND. 
          AND, UM, THE FIRST THREE DAYS THAT WE LOOKED AT LOOKED MOSTLY SIMILAR, BUT THAT LAST DAY, WHICH IS THE DAY DAN WAS POINTING OUT SEPTEMBER 6TH, UH, THE, THE PRICES CONVERGE ON THAT DAY WITH A, WITH A THOUSAND DOLLARS PRICE. 
          SO, UH, THERE, THERE IS, UM, GONNA BE SHORTAGE DAYS WHERE O R D C AND EVERYTHING ELSE TAKES OVER AND SETS THE PRICE, AND IT DOESN'T MAKE AS BIG A DIFFERENCE. 
          UM, SO, SO THAT'S, THAT'S ONE NOTABLE DIFFERENCE TO ME. 
          UM, THE OTHER THING WE WANTED TO LOOK AT IS, OKAY, WHAT HAPPENS TO CONGESTION MANAGEMENT IF WE WERE TO HAVE A LOWER SET OF PRICES? AND AS YOU CAN SEE HERE ON THREE OF THE FOUR DAYS, UM, THERE WAS SIGNIFICANT IMPROVEMENT IN CONGESTION MANAGEMENT. 
          AND EVEN ON, UH, IN, IN SEPTEMBER, THERE WAS A NOTICEABLE IMPROVEMENT, AGAIN, AT A THOUSAND DOLLARS THAT LOOKS, THE SEPTEMBER DATE LOOKS A A LOT SIMILAR, AND THERE'S NOT AS BIG A DIFFERENCE BECAUSE PRICES WERE SO HIGH AND THERE WAS SO MUCH SCARCITY ON THE SYSTEM THAT DAY. 
          UM, C KON DOES, DOES ALL THIS STILL WORK OUT IN TERMS OF YOUR MODEL OUTCOMES? ONCE THE, THE MINIMUM ADDERS GO INTO EFFECT, THAT DOESN'T CHANGE ANYTHING, DOES IT MINIMUM? SO THE ADDERS RIGHT NOW COME IN AFTER SCHUH, AND BECAUSE OF THAT, SCED IS ABLE TO ACCESS ANYTHING THAT WAS CAPPED FOR LOCAL MARKET POWER MITIGATION OR, OR OFFERED LOWER. 
          UM, SO FROM THAT STANDPOINT, THE, THE ANSWER'S YES, I WOULD MAKE A PITCH THAT IN UNDER REAL-TIME CO-OP OPTIMIZATION, THOSE PENALTY CURVES ARE GONNA LET SC ACCESS OR NOT ACCESS, UH, ENERGY. 
          AND IT'S, UH, IT'S REALLY IMPORTANT THAT WE GET THOSE RIGHT AND, AND WE LOOK AT THOSE, UH, CONSISTENTLY. 
          SO, AND, AND THAT'S GONNA BE, UM, A CHALLENGING, UH, THING, UH, QUESTION TO ANSWER WHAT THOSE DEMAND CURVES LOOK LIKE FOR THE DIFFERENT ANCILLARY SERVICES AND, AND, AND THINGS LIKE THAT. 
          SO, UH, THIS, THIS SLIDE SHOULDN'T BE REALLY A BIG SURPRISE, IS THAT, UM, WITH ALL THE SOLAR AND EVERYTHING THAT WE HAD ON THE SYSTEM, SUMMER SCARCITY PRICING SHIFTED TO THOSE EVENING HOURS WHERE WE WERE HAVING A RAMP DOWN, UH, AS A RESULT OF THE SUN SETTING, AND THE REST OF THE SYSTEM HAD TO RESPOND AND COVER LOAD, UH, AS LOAD SLOWLY RAMPED DOWN AS, AS THINGS COOLED OFF. 
          KEN, ON, ON THE ANALYSIS, UM, ON SYSTEM COST, DVIA CAPPED THE E S R ONE 50, OBVIOUSLY IT'S JUST ILLUSTRATIVE, BUT IS IS THE POINT HERE THAT THIS IS THE MARGINAL GENERATION AND BIDDEN IN AT, ITS AT ITS COST, IS WHAT'S DRIVING UP THE OVERALL SYSTEM COSTS? MAKE SURE I'M THINKING ABOUT IT THE RIGHT WAY. 
          I, I, WELL, FIRST OF ALL, YES, YOU ARE, YOU'RE THINKING ABOUT IT THE RIGHT WAY. 
          UM, I THINK THE OUTSTANDING QUESTION WOULD BE, IS THAT OPPORTUNITY COST, FOR EXAMPLE, UM, IS IT, UH, $4,900 ALL THE TIME, OR IS IT SOMETHING DIFFERENT? IT'S REALLY DIFFICULT TO CREATE A DYNAMIC KIND OF MANAGEMENT OF THAT, BUT THAT MIGHT BE THE TYPE OF THING THAT WE THINK ABOUT. 
          AND SOME DAYS THAT MIGHT BE EXACTLY SPOT ON AS THE OPPORTUNITY COSTS OR SOME HOURS OF A DAY, BUT AT OTHER TIMES, IT MAY, MAY NOT BE. 
          THE OTHER THING PLAYING OUT HERE IS THERE IS NO LOCAL MARKET POWER MITIGATION. 
          WE LEFT THAT OUT AGAIN. 
          UM, I THINK THAT WAS THE RIGHT THING TO DO AS AN INITIAL KICKOFF OF ABSORBING NEW RESOURCES, BUT WE REALLY NEED TO THINK ABOUT WHAT THAT THE CORRECT VALUES ARE FOR THAT AS WE TRY AND MANAGE CONGESTION AND SCARCITY ON THE SYSTEM GOING FORWARD. 
          MM-HMM. 
          . 
          BUT, UH, I, I, I, I DO WANNA EMPHASIZE, UH, FOR ME, AS I LOOK AT, I LOOKED AT VARIOUS DAYS AND 
          [01:35:01]
TIMES, AND SOME OF THESE OFFERS ARE SPOT ON RELATIVE TO THE TIME OF DAY, BUT THAT OFFER MIGHT CONTINUE INTO OTHER TIMES OF THE DAY, AND THAT MAY OR MAY NOT BE, UM, THE, THE RIGHT VALUE AT THAT TIME. 
          BUT, BUT WHAT, WHAT, WHAT WHAT YOU'RE HIGHLIGHTING IS THE EXACT, UM, UH, EXACT NUANCE THAT WE HAVE TO GET RIGHT. 
          YOU, UH, YOU KNOW, RESTRICT THAT TOO LOW, AND THEN YOU'RE DEPLOYING THESE THINGS, UH, UH, THESE RESOURCES AT A TIME WHERE YOU MIGHT REALLY WANT 'EM FOR LATER ON IN THE DAY. 
          UM, AUGUST ALSO SAW EXTREMELY HIGH PRICES FOR ANCILLARY SERVICES. 
          UM, THIS TO ME IS RELATIVELY STRAIGHTFORWARD. 
          THE OPPORTUNITY COST OF PROVIDING AN ANCILLARY SERVICE IS THE, WHAT YOU COULD GET IN THE ENERGY MARKET. 
          SO AS THE ENERGY PRICES WENT UP, UH, ANCILLARY SERVICES WENT UP. 
          IF YOU LOOK AT THIS, THE BIGGEST DRIVER OF THAT, THOSE COSTS WERE, UH, E C R S, THE ERCOT CONTINGENCY RESERVE SERVICE, THAT'S THIS, UH, PURPLE, UH, PART. 
          BUT, UH, IF YOU LOOK AT THIS ALL RESPONSIVE RESERVE AND, UM, NONS SPIN ALSO WENT UP IN TERMS OF COSTS. 
          UM, WE WERE INTERESTED IN KIND OF LOOKING AT HOW MUCH LIQUIDITY THERE WAS IN E C R S THROUGH THE SUMMER. 
          AND, UM, ESSENTIALLY AT THE TOP HERE, YOU HAVE DIFFERENT MONTHS AND HOW MUCH WAS, UH, YOU KNOW, UH, BEING OFFERED IN VERSUS KIND OF ACROSS WHAT, WHAT WE NEEDED TO PROCURE. 
          AND YOU CAN SEE EARLY ON WHEN WE FIRST LAUNCHED E C R S, UM, YOU KNOW, THE AMOUNT QUANTITY STAYED AT AROUND 4,000. 
          BUT AS MONTHS PROGRESSED, UH, PEOPLE FOUND O UH, OPPORTUNITY TO PROVIDE E C R SS AND, AND MOVED INTO THAT CATEGORY. 
          SO OUR, OUR THINKING IS EVEN AT 4,000, THAT AMOUNT IS LESS THAN THE TOTAL AMOUNT OF E C R SS WE WERE PROCURING. 
          SO THE E C R SS MARKET ON ITS OWN WAS RELATIVELY LIQUID, UH, IS, IS A CONCLUSION, BUT THAT WAS SOMETHING WE WANTED TO, TO LOOK AT AND MAKE SURE THE MARKET WASN'T, UH, HAVING TROUBLE RESPONDING TO WHERE THE HIGH PRICES WERE AND, AND, UH, THE, IT WAS KIND OF RESPONSIVE TO THE INCENTIVE SET FORTH. 
          NOW, UM, THIS IS THE ONE, PROBABLY POSITIVE SLIDE RELATIVE TO COSTS AND EVERYTHING, BUT, UH, AS ENERGY PRICES AND ANCILLARY SERVICE PRICES MOVED UP, OUR NEED TO RUCK DROP DRAMATICALLY BECAUSE EVERYBODY WAS SELF COMMITTING EITHER TO COVER OBLIGATIONS THAT THEY HAD TO SERVE LOAD OR TO, UH, UH, YOU KNOW, BASED ON THE ATTRACTION OF THE PRICES THAT WE SAW, UH, DURING THE SUMMER. 
          UM, AND THEN I ALSO JUST WANTED TO KIND OF, UH, AS I DO EVERY, UH, R AND M MEETING, JUST WANTED TO SHOW WHAT WE SAW ALSO WITH, UH, TOTAL POTENTIAL EXPOSURE, UH, AND, AND COLLATERAL CALLS. 
          UM, I'LL HAVE SOME MORE DETAIL AROUND THE COLLATERAL CALLS IN MY FINANCE, UH, UPDATE. 
          BUT, UM, AS YOU CAN SEE, AS PRICES WENT UP, THE, UH, EXPOSURE WENT UP. 
          UH, THAT, UH, TO ME MEANS, YOU KNOW, BY AND LARGE, WHAT WE'RE TRYING TO DO IS, IS WORKING. 
          IN OTHER WORDS, WE'RE TRYING TO, AS YOUR COSTS, UH, INCREASE AS YOU'RE KIND, UH, OUR NEED TO COLLECT MORE COLLATERAL IN THE INSTANCE OF A DEFAULT INCREASES THAT THE, THAT WE'RE PROCURING THAT. 
          NOW THAT DOESN'T MEAN THIS IS PERFECT, BUT, UM, WE'RE SEEING THIS RIGHT RESPONSE, THE RIGHT BEHAVIOR RELATIVE TO THE DESIGN. 
          AND, UH, THAT'S ALL I HAVE FOR THIS PRESENTATION. 
          I'M HOPE, HAPPY TO ANSWER ANY OTHER QUESTIONS YOU MIGHT HAVE. 
          OKAY. 
          THANKS, KENNAN. 
          SO NEXT, I THINK WE HAVE, CHAD'S GOING TO PRESENT ITEM 7.5, REVISION REQUEST STATUS UPDATE. 
          I THINK I HAVE, OH, DO YOU HAVE ANOTHER MORE? ANOTHER ONE? YES. 
          OH, SORRY. 
          I JUST DON'T KNOW HOW TO MOVE TO THE . 
          OH, 
          [01:40:01]
I SAW YOU LEAVING AND I THOUGHT, OH, YES. 
          THANK YOU. 
          UH, 
          [7.3.1 Real-Time Co-optimization]
I DO HAVE, I, I DID WANT TO GIVE YOU AN UPDATE ON REAL-TIME CO-OP OPTIMIZATION, UM, BY AND LARGE, THERE WE GO. 
          UH, BY AND LARGE, WE BELIEVE WE ARE ON TRACK. 
          UM, THE, UH, WE'VE ESTABLISHED A TASK FORCE THAT WE WILL WORK WITH IN CONJUNCTION WITH STAKEHOLDERS TO ADDRESS, UM, THE ISSUES AND PROTOCOL CHANGES THAT WE NEED TO ADD TO THE REAL-TIME CO-OP OPTIMIZATION SUITE. 
          UM, AND WE'LL BE DOING THAT, UH, THROUGH THE REST OF, UH, THIS YEAR. 
          AND WE ARE HOPING TO BRING YOU, UH, START BRINGING YOU R T C NPR R'S, THAT'S A LOT OF ACRONYMS, REALTIME CO OPTIMIZATION PROTOCOL REVISIONS, UH, THROUGH, THROUGH THE REST OF, UH, THIS YEAR AND INTO 2024. 
          SO YOU WILL SEE THAT ACTIVITY TAKING PLACE. 
          THERE ARE, UM, UH, SOME RESOURCE CHALLENGES, UH, AND THOSE TEND TO REVOLVE AROUND MAKING SURE WE GET THE D R R S. 
          IT'S BATCHABLE RELIABILITY RESERVE SERVICE DONE. 
          UM, THE INTERIM STATE OF CHARGE N P R R, WHICH IS, UH, 1186. 
          UM, SO WE WE'RE, THOSE ARE BEING MANAGED. 
          THEY, UH, WE, WE DON'T FEEL, UH, THAT IT'S AN UNMANAGEABLE CONSTRAINT, BUT THOSE ARE, UH, JUST FINDING TIME FOR EV ALL THE EXPERTS TO GET TOGETHER AND WORK TOGETHER IS, UH, IS ALWAYS SOMETHING THAT WE'RE TRYING TO MAKE SURE WE GET RIGHT. 
          UM, AND LIKE I SAID, UH, WE'RE EXCITED TO WORK WITH THE STAKEHOLDERS ON THIS AS WELL, BECAUSE THERE IS GONNA BE SOME REALLY IMPORTANT FEEDBACK, UH, THAT WE NEED FROM THEM IN TERMS OF HOW WE'RE SEEING REALTIME CO-OP OPTIMIZATION PLUS THE BATTERY INCORPORATION WORK. 
          OKAY. 
          [7.4 Market Credit Update]
AND THIS IS MY LAST ONE, I PROMISE. 
          UM, I DID WANT TO GIVE A MARKET CREDIT UPDATE. 
          UH, SO DID WE. 
          OKAY. 
          UM, THERE ARE, UH, SEVERAL, UH, NPRS THAT, UM, UH, ARE WORKING THEIR WAY THROUGH THE PROCESS. 
          WE ARE ASKING THE BOARD TO APPROVE, UM, TOMORROW, UH, N P R R 1184. 
          UM, AND THEN THE OTHER THING I WANTED TO HIGHLIGHT WAS N P R R 1112 NOW IS IN EFFECT THAT WAS REMOVING THE UNSECURED, UH, COLLATERAL, UH, REQUIREMENT THAT, AND THEN THERE WAS A GRACE PERIOD THAT EXPIRED, UH, OCTOBER ONE. 
          UM, SO THOSE ARE, UH, SOME OF THE KEY, UH, CREDIT NPRS, UM, TO BE TWO OF EVERYTHING. 
          UM, THE, UH, OTHER THINGS I, I WOULD LIKE TO HIGHLIGHT IS WE HAD TWO TRADE ONLY ENTITIES DEFAULT ON COLLATERAL REQUIREMENTS. 
          UH, OVER THE SUMMER. 
          ONE LOAD ENTITY WITH NO ACTIVE LOAD ALSO DEFAULTED. 
          UM, BUT THERE WAS NO MA MARKET TRANSITION OR MOVEMENT OF CUSTOMERS, UM, THAT BECAUSE THEY DID NOT HAVE ANY, ANY REMAINING CUSTOMERS, UM, EXPOSURE INCREASED, AS I POINTED OUT IN THE OTHER, UH, UH, OTHER PRESENTATION. 
          AND, UM, UH, THE OTHER THING IS THAT PEOPLE KEPT MORE COLLATERAL WITH US, UH, AS EVIDENCED BY THE, UH, DISCRETIONARY COLLATERAL THAT WE HELD. 
          AND REALLY, THOSE ARE THE HIGHLIGHTS. 
          I HAVE INDIVIDUAL SLIDES ON EACH OF THESE, SO I'LL GO THROUGH THEM PRETTY QUICKLY. 
          BUT PLEASE ASK ANY QUESTIONS IF YOU HAVE. 
          SO, UM, THERE'S A COUPLE OF OTHER, UH, CREDIT NPRS THAT I PROBABLY SHOULD HIGHLIGHT. 
          UM, THERE IS 1165, WHICH WAS, UH, AN ADDITIONAL ELEMENT TO UNSECURED COLLATERAL THAT THE BOARD PASSED IN AUGUST. 
          UH, AND IN P R R 1175, WHICH THE BOARD ALSO APPROVED, UH, IN AUGUST, AND THAT WILL BE IMPLEMENTED SHORTLY. 
          UM, IT HAS TO GO THROUGH THE P U C APPROVAL PROCESS, UH, AND THEN IT, IT WILL BE IMPLEMENTED. 
          [01:45:01]
UM, AND, AND AGAIN, UH, AS PART OF 1165 WHEN Y'ALL APPROVE THAT, THERE WERE ALSO SOME OTHER ADMINISTRATIVE CHANGES THAT, THAT WE WENT THROUGH AND, AND MADE CHANGES TO THOSE WILL ALSO BE IN EFFECT GOING FORWARD. 
          UM, THERE IS A PROPOSED NODAL PROTOCOL REVISION REQUEST, UM, THAT WANTS TO ADDRESS THE CREDIT QUALIFICATION REQUIREMENTS IN BANKS AND INSURANCE COMPANIES. 
          THIS IS NOT, UM, BEFORE THE BOARD NOW, BUT IT IS WORKING ITS WAY THROUGH. 
          UM, THEY, UH, ARE, ARE TRYING TO ADDRESS ISSUES LIKE, UH, LETTERS OF CREDIT, UH, FROM MARKET PARTICIPANTS TO ERCOT AND, UM, INSURANCE COMPANIES, HOW, HOW THEY WORK WITH ERCOT IN TERMS OF, UH, AS, AS WE DEPEND MORE AND MORE ON SECURED COLLATERAL, UH, HOW, HOW THE RULES WORK GOING FORWARD. 
          AND THAT CONCLUDES THE, UH, COLLATERAL FINANCE, UM, CREDIT PART OF MY PRESENTATION. 
          I THINK. 
          CHAD, YOU ARE NEXT NOW. 
          ALRIGHT, THANKS KENAN. 
          OKAY. 
          I'M GONNA TRY TO, DEPENDING, I DON'T, CAN YOU PULL UP THE SLIDES? I'M GONNA TRY TO DO IT FROM HERE 'CAUSE IT WON'T TAKE VERY LONG. 
          [7.5 Revision Request Status Update]
SO AS KAN INDICATED, THERE'S ONLY THREE REVISION REQUESTS FOR OCTOBER BOARD CONSIDERATION, AND THE COMMITTEE HAS ALREADY CONSIDERED N P R 1186, THAT'LL BE HEARD TOMORROW BY THE BOARD, THE OTHER TWO ON THE CONSENT AGENDA. 
          AND KAAN ALREADY TALKED ABOUT ONE OF THEM IN HIS MARKET UPDATE. 
          UM, ON THE KEY TAKEAWAYS ON SLIDE, GO UP TO THE TOP SLIDE RIGHT THERE, 77 REVISION REQUESTS THAT, THAT HAS CHANGED. 
          THE COMMISSION HAD AN OPEN MEETING ON THURSDAY AND APPROVED ALL THE ONES THAT THE COMMITTEE AND THE BOARD HAD CONSIDERED AT, AT ITS AUGUST MEETING. 
          SO THAT 77 REVISION REQUESTS IS NOW 58 REVISION REQUESTS IN THE PROCESS. 
          AND THE 12 NEW REVISION REQUESTS SINCE AUGUST BOARD HAS CHANGED TO 24 NEW REVISION REQUESTS HAVE BEEN SPONSORED. 
          UH, THE AGING REVISION REQUEST IS CORRECT DATA, THERE'S STILL FOUR ON THE AGING LIST AND ONE HAS BEEN MOVED OFF SINCE THE AUGUST BOARD MEETING AND ONE THAT'S BEEN ADDED. 
          THE ADDITIONAL INFORMATION IS INCLUDED ON THE NEXT THREE TO FOUR SLIDES. 
          AND THEN WE HAVE AN APPENDIX THAT GOES INTO FURTHER DETAIL ON ALL THE ACTIVITIES THIS YEAR. 
          ANY QUESTIONS OR COMMENTS FROM THE COMMITTEE MEMBERS? SO TOMORROW ON THE CONSENT AGENDA, THERE'LL BE TWO ITEMS THAT I'LL SPEAK TO. 
          ALL RIGHT, THANKS JAN. 
          KENAN, YOU'RE 
          [8. Future Agenda Items]
ON UP FOR THE, UH, PRESENTING THE NEXT AGENDA, NEXT FUTURE AGENDA ITEMS, WHICH IS AGENDA ITEM NUMBER EIGHT. 
          UM, I THINK THE MAIN THINGS, THERE WE GO. 
          UH, I, I THINK THE MAIN THINGS WE WANNA PREP YOU FOR AS FAR AS FUTURE, UH, AGENDA ITEMS ARE, UM, THERE WILL BE, UH, A, UH, UH, SLIGHTLY DIFFERENT ARRANGEMENT IN DECEMBER WHERE THE MEMBERS, UH, MEET. 
          SO THAT'LL BE PART OF THE FULL BOARD MEETING. 
          UM, BUT WE DO HAVE, UH, REVIEW AND, UH, ASSESS THE COMMITTEE CHARTER, UM, UNDERTAKE SELF-EVALUATION. 
          SO THOSE I, I PRESUME ARE UH, WILL BE SUPPORTED BY JOHN AND HIS TEAM AND HOW, HOW YOU WOULD LIKE TO MOVE THINGS, UH, FORWARD. 
          UM, WE DO EXPECT, UH, CHRISTIANO, I, I WOODY, I'M NOT SURE IF WE HAVE A TRANSMISSION RECOMMENDATION. 
          IT SEEMS LIKE WE DID. 
          UH, SO, SO IT LOOKS OKAY. 
          SO I, I MADE A MISTAKE THERE. 
          AND, UH, THERE IS NOT ANY TIER ONE TRANSMISSION RECOMMENDATIONS COMING BEFORE THE GROUP. 
          UM, WE MAY, WE MAY HAVE ONE LIKE NOT FOR SURE YET. 
          I BELIEVE WE WILL. 
          I THINK THE SYNCHRONOUS CONDENSERS WILL BE FORWARD AT THE NEXT MEETING. 
          WILL WE HAVE THOSE THEN BE CLOSE? OKAY. 
          POSSIBLY WE'LL HAVE THAT SYNCHRONOUS, SOME OF THE SYNCHRONOUS CONDENSER STUFF READY TO GO. 
          THANK YOU. 
          UM, AND THEN, UH, THE, YOU'LL HAVE OUR REGULAR REPORTS THAT, THAT WE PRESENT. 
          AND, UM, IF THERE ARE, UH, AS, AS OF RIGHT NOW, THERE'S NO EXPECTATION OF ANY PRICE CORRECTIONS OR ANYTHING LIKE THAT, UH, FOR, FOR THE NEXT BOARD. 
          AND, UM, UH, I THINK THERE IS A, A REVIEW OF, UH, OUR, OUR REGULAR 
          [01:50:01]
REVIEW OF CREDIT PRACTICE AS WELL WILL BE PART OF, UH, PART OF THE UPCOMING AGENDA ITEMS. AND I'M HAPPY TO ANSWER ANY QUESTIONS THE COMMITTEE MAY HAVE, UH, AROUND THAT. 
          I THINK THE MAIN THING WOULD BE THE ANCILLARY SERVICE METHODOLOGY UP FOR THE COMMITTEE, UH, AND THE BOARD'S CONSIDERATION IN DECEMBER. 
          OKAY. 
          THANK YOU KENAN. 
          SO THE FINAL AGENDA ITEM IS AGENDA ITEM NINE, OTHER BUSINESS. 
          IS THERE ANY OTHER BUSINESS ANY COMMITTEE MEMBER WISHES TO RAISE? HEARING NONE. 
          WE'RE AT THE END OF THE GENERAL SESSION AGENDA FOR EXECUTIVE SESSION TODAY. 
          THE ONLY ITEM ON THE AGENDA WOULD BE PRIOR MEETING MINUTES. 
          SO UNLESS THERE ARE ANY OBJECTIONS, I PROPOSE WE DEFER CONSIDERATION OF THOSE MEETING MINUTES UNTIL NEXT MEETING AND INSTEAD ADJOURN THE MEETING WITHOUT CONVENING EXECUTIVE SESSION. 
          ANY FURTHER DISCUSSION? MEETING ADJOURNED.
* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.