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[1. Call General Session to Order]
MORNING.UH, MEMBERS OF THE ERCOT BOARD OF DIRECTORS AND GUESTS.
UH, I'M PAUL FOSTER ERCOT, BOARD CHAIR.
WELCOME TO THE FEBRUARY 27TH, 2024 BOARD OF DIRECTORS MEETING.
I HEREBY CALL THIS MEETING TO ORDER.
THIS MEETING IS BEING WEBCAST LIVE TO THE PUBLIC ON ERCOT WEBSITE.
BEFORE WE BEGIN, I'D LIKE TO WELCOME NEW P-C-P-U-C CHAIR THOMAS GLEASON TO HIS FIRST ERCOT BOARD MEETING.
HE WAS SWORN IN AS CHAIR ON JANUARY 24TH, AND AT THAT TIME ALSO BECAME AN EX-OFFICIAL MEMBER OF THE ERCOT BOARD ON BEHALF OF THE BOARD.
WELCOME AND WE LOOK FORWARD TO WORKING WITH YOU.
ALSO WANTED TO THANK COMMISSIONER KATHLEEN JACKSON FOR HER SERVICE ON THE ERCOT BOARD FROM JUNE 23 UNTIL THOMAS'S APPOINTMENT.
ALSO EFFECTIVE JANUARY 1ST, 2024.
A SECOND PUC COMMISSIONER TO THE ERCOT BOARD WAS ADDED AS AN EX-OFFICIO, NON-VOTING MEMBER ON A ROTATING ONE YEAR TERM.
COMMISSIONER LORI COBOS HAS BEEN DESIGNATED TO SERVE IN THAT ROLE, UH, FOR 2024.
LORI PREVIOUSLY SERVED ON THE BOARD DURING HER TENURE AS PUBLIC COUNSEL, SO WELCOME BACK AND WE LOOK FORWARD TO WORKING WITH YOU AS WELL.
UH, NOW I'D LIKE TO ASK IF PUC CHAIR GLEASON WOULD LIKE TO CALL AN OPEN MEETING OF THE PUBLIC UTILITY COMMISSION OF TEXAS TO ORDER THANK YOU CHAIRMAN FOSTER.
THIS MEETING OF THE PUBLIC UTILITY COMMISSION OF TEXAS WILL COME TO ORDER TO CONSIDER MATTERS THAT HAVE BEEN DULY POSTED WITH THE SECRETARY OF STATE FOR FEBRUARY 27TH, 2024.
AND I WOULD NOTE THAT COMMISSIONERS JACKSON AND COBOS ARE IN THE ROOM.
AND COMMISSIONER GLO FELTY IS VIEWING THIS MEETING ON WEBEX AND AVAILABLE VIA PHONE.
UH, BEFORE WE GET STARTED, I'D LIKE TO HIGHLIGHT THAT THE ANTITRUST ADMONITION AND SECURITY MAP ARE INCLUDED WITH POSTED MEETING MATERIALS.
THE FIRST ORDER OF BUSINESS ON TODAY'S AGENDA IS ITEM TWO.
NOTICE OF PUBLIC COMMENT, IF ANY.
TODAY'S MEETING AGENDA WAS POSTED PUBLICLY ON FEBRUARY 20TH AND PROVIDED INSTRUCTIONS FOR THE PUBLIC FOR COMMENTING IN PERSON.
TO DATE, NO ONE HAS EXPRESSED INTEREST IN COMMENTING.
IS THAT STILL THE CASE? THAT IS CORRECT, CHAIR.
[3. Confirmation of Technical Advisory Committee (TAC) Chair and Vice Chair for 2024]
MOVING ON TO AGENDA THREE.CONFIRMATION OF TECHNICAL ADVISORY COMMITTEE CHAIR, UH, AND VICE CHAIR FOR 2024, WHICH IS REQUIRED OF THE BOARD, UH, PURSUANT TO THE BYLAWS AT ITS FEBRUARY 14TH, 2024, MEETING THE TAC REPRESENTATIVES ELECTED KAITLYN SMITH OF JUPITER POWER LLC AND COLIN MARTIN FROM ENCORE ELECTRIC DELIVERY COMPANY, LLC AS CHAIR AND VICE CHAIR OF TAC, RESPECTIVELY FOR THE 2024 YEAR.
UNLESS THERE'S ANY DISCUSSION, I'LL ENTERTAIN A MOTION TO CONFIRM THEIR ELECTION.
ANY OPPOSED? THAT MOTION PASSES.
UM, LOOK FORWARD TO WORKING WITH YOU.
[4. Consent Agenda]
NEXT IS AGENDA ITEM FOUR, CONSENT AGENDA.I WILL TURN IT OVER TO CHAD TO PROVIDE THE BUDGET IMPACTS OF THE REVISION REQUESTS.
CHAIRMAN, THERE ARE 18 REVISION REQUESTS ON THE CONSENT AGENDA.
NONE OF THEM HAVE ANY ERCOT STAFFING IMPACTS.
THREE OF THE REVISION REQUESTS HAVE A ERCOT BUDGET IMPACT TOTALING AN AGGREGATE RANGE BETWEEN 540,000 TO 760,000.
THE LARGEST BUDGET IMPACT IS ASSOCIATED WITH NPR 1213 WITH AN ESTIMATED RANGE BETWEEN 350,400 50,000.
AND I'M HAPPY TO ANSWER ANY QUESTIONS REGARDING THOSE 18 REVISION REQUESTS.
ANY QUESTIONS OR COMMENTS? UM, WITH THAT, DOES ANY BOARD MEMBER WISH TO DISCUSS OR REMOVE ANY ITEM FROM THE CONSENT AGENDA? HEARING NONE, I'LL ENTERTAIN A MOTION TO APPROVE THE CONSENT AGENDA AS PRESENTED.
ANY OPPOSED THAT? MOTION PASSES.
[5. December 19, 2023 General Session Meeting Minutes]
AGENDA ITEM FIVE.UH, GENERAL SESSION MEETING MINUTES.
THERE'S A DRAFT IN THE MEETING MATERIALS.
DOES ANYONE HAVE ANY COMMENTS OR WISH TO MAKE A MOTION? I MOVE APPROACH MR. CHAIRMAN.
ALL IN FAVOR? ALRIGHT, ANY OPPOSED? THAT PASSES AGENDA ITEM
[6. CEO Update]
SIX IS THE CEO UPDATE AND LOOKS LIKE PABLO'S UP AND READY TO GO.[00:05:03]
THANK YOU CHAIR, FOSTER, AND, UH, WELCOME EVERYBODY TO THE UH, FEBRUARY ERCOT BOARD MEETING.IT'S A PLEASURE TO BE HERE WITH YOU TODAY.
TODAY, UH, I'M GONNA DISCUSS A FEW ITEMS THAT, UM, HAVE BEEN, UH, UH, AREAS OF FOCUS FOR US SINCE OUR LAST TIME TOGETHER.
WANT TO QUICKLY GIVE SOME PERSPECTIVES ON, UH, WINTER STORM HEATHER, THAT WE EXPERIENCED, UH, DURING THE MIDDLE PART OF JANUARY AND HOW THE ERCOT GRID PERFORMED DURING THAT PERIOD OF TIME AND GIVE SOME CONTEXT OF THAT STORM TALK.
A I WANNA DISCUSS SOME AREAS AROUND OUR SHORT AND LONG-TERM PLANNING THAT'S GOING ON, INCLUDING HOW WE'RE LOOKING AT A NEW RELIABILITY PLAN FOR THE PERMIAN BASIN IN RESPONSE TO HOUSE BILL 50 66 AND LOOKING AT SOME OF THE OPPORTUNITIES TO IMPROVE THE RELIABILITY AND STABILITY OF INVERTER BASED RESOURCES ON THE ERCOT GRID.
AND THEN WANT TO, UH, FINISH UP WITH SOME, UH, NEW COMMUNICATIONS TOOLS THAT ARE NOW AVAILABLE AND VISIBLE ON THE, UH, ERCOT WEBSITE.
WE CONTINUE TO MAKE PROGRESS IN ADVANCING THE INFORMATION THAT WE'RE SHARING WITH THE GENERAL PUBLIC ABOUT THE OPERATIONS OF ERCOT.
AND WITH EACH PASSING QUARTER, WE SEEK TO TRY TO CONTINUE TO ADD TO THAT ROSTER OF INFORMATION.
AND SO I'M GONNA SHARE A COUPLE OF NEW, UH, VIEWS AND DASHBOARDS THAT WE HAVE AVAILABLE FOR, UH, FOR CONSUMERS TO LOOK AT.
I'D LIKE TO START FIRST WITH, UM, A QUICK DISCUSSION ON OUR ERCOT WINTERS, THE WINTER STORM HEATHER, THAT WE HAD, UH, ON JANUARY 16TH AND 17TH, UH, AROUND MARTIN LUTHER KING DAY THIS YEAR.
THIS, UH, THIS SLIDE YOU MAY HAVE SEEN IN THE R AND M COMMITTEE, UH, MEETING YESTERDAY.
THIS WAS A COMPARATIVE, UH, SLIDE ON WINTER STORM HEATHER, COMPARED TO OTHER STORMS THAT WE HAVE EXPERIENCED IN TEXAS OVER THE LAST, UH, 15 YEARS OR SO.
AS YOU CAN SEE HERE, WINTER STORM HEATHER WAS ONE OF THE, UH, COLDER TEMPERATURE STORMS THAT WE'VE HAD.
UM, ELLIOT WAS A LITTLE BIT COLDER, ABOUT TWO DEGREES COLDER, WHICH IS THE STORM THAT WE HAD BACK IN DECEMBER OF 2023, BUT, UH, ONLY A COUPLE DEGREES, BUT THE DURATION OF THIS STORM, UH, WAS LONGER THAN WINTER STORM.
UH, ELLIOT, IF YOU RECALL, ELLIOT CAME THROUGH VERY QUICKLY, UH, THE, ON THE 23RD AND WAS EFFECTIVELY MOVING OUT OF THE SYSTEM, UH, ON THE 23RD AND 24TH AND MOVING OUT OF THE SYSTEM BY CHRISTMAS.
AND WE HAD, UH, WINTER STORM HEATHER HERE FOR A FEW DAYS THAT, UH, MONDAY, TUESDAY, WEDNESDAY, WE HAD PRETTY COLD EXTREME TEMPERATURES ACROSS, ACROSS THE SYSTEM.
DURING THAT STORM, WE SET FIVE NEW ALL TIME WINTER PEAKS, INCLUDING SIX JANUARY, UH, PEAK DEMAND RECORDS, AND WE ENDED UP AT THE PEAK 78,314 MEGAWATTS IN THE SEVEN TO 8:00 AM HOUR ON JANUARY 16TH, WHICH EXCEEDED THE PRIOR WINTER RECORD OF 74,000 THAT WAS SET DURING WINTER STORM ELLIOT.
SO PRETTY SIGNIFICANT INCREASE OVER THAT PERIOD OF TIME.
WHAT REALLY WAS, UH, YOU KNOW, STRONG IN TERMS OF OUR CAPABILITIES WAS FIRST GREAT COLLABORATION, COORDINATION, AND PLANNING ACROSS THE INDUSTRY A WEEK IN ADVANCE OF THIS STORM COMING IN, THERE WERE EXTENSIVE CONVERSATIONS AND DIALOGUE HAPPENING ACROSS MARKET PARTICIPANTS WITH THE CONTROL ROOM AT ERCOT AND THE VARIOUS OPERATORS WITH TURK, THE REPRESENTATIVES FROM THE GAS INDUSTRY, THE ELECTRIC INDUSTRY, THE, UH, TEXAS DEPARTMENT OF EMERGENCY MANAGEMENT, THE PUBLIC UTILITY COMMISSION, ALL COORDINATING AND COMMUNICATING THE PREPARATIONS AND THE READINESS THAT WAS GETTING, THAT WAS HAPPENING IN ADVANCE OF THIS KNOWN STORM THAT WAS COMING THROUGH THAT WAS DIFFERENT THAN IN PRIOR STORMS. THAT PLANNING AND PREPARATION WAS FAR MORE EXTENSIVE AND MUCH EARLIER THAN I'VE EXPERIENCED, AND I THINK WE'VE EXPERIENCED IN PRIOR STORMS. AND IT WAS VERY EFFECTIVE IN MAKING SURE THAT EVERYBODY KNEW WHERE EVERYBODY'S EXPECTATIONS WERE AND WERE AS READY AS THEY COULD BE FOR THE DELIVERY AND EXECUTION DURING THAT PERIOD OF TIME.
WE ALSO SAW INCREDIBLY STRONG PERFORMANCE FROM THE THERMAL FLEET.
UH, VERY, YOU KNOW, THE, THE LEVEL OF FORCED OUTAGES DURING THE PERIOD OF THE STORM WERE, UH, RIGHT ALONG THE LINES OF WHAT WOULD BE EXPECTED DURING THAT TIME OF YEAR AND SIGNIFICANTLY IMPROVED OVER THE PERFORMANCE WE SAW DURING WINTER STORM ELLIOT.
I'D ALSO GIVE ATTRIBUTION TO THE PERFORMANCE OF THE CONSERVATION CALLS THAT WE MADE DURING YESTERDAY'S R AND M MEETING.
DAN WOODFIN SHARED A SLIDE THAT SHOWED THE IMPACT OF THAT CONSERVATION CALL DURING THE PEAK PERIODS OF WINTER STORM HEATHER, AND IT WAS VERY SIGNIFICANT IN THE ORDER OF GIGAWATTS OF IMPACT THAT, UH, THAT, I'M SORRY, MEGAWATTS OF IMPACT THAT HAD VERY SIGNIFICANT, UH, UH, BENEFIT TO THE GRID AND, AND HELPED TO MAINTAIN THE RELIABILITY DURING THAT PERIOD OF TIME.
UM, SO WE ARE, WE ARE LOOKING AT THAT AND LOOKING TO LEARN FROM WHAT WE CAN GAIN OUT OF POTENTIAL NEW CONSERVATION PRODUCTS AND DEMAND RESPONSE PRODUCTS.
IT'S SOMETHING THAT I THINK IS A UNIQUE OPPORTUNITY.
IT'S ONE OF THE, I THINK OF AS THE THREE LEGS OF THE STOOL OF RELIABILITY IN ERCOT.
YOU'VE GOT YOUR POWER GENERATION, YOU'VE GOT YOUR TRANSMISSION SYSTEM, AND YOU'VE GOT YOUR DEMAND RESPONSE CAPABILITIES.
AND I THINK THAT THAT CONSERVATION IS, UH, BECOMING A REALLY VISIBLE AND IMPORTANT PART DURING
[00:10:01]
THESE EXTREME WEATHER EVENTS.WE ALSO SAW AN INTERESTING DYNAMIC IN SOLAR DURING THAT, THAT EVENT WHERE WE HAD VERY STRONG SOLAR GENERATION DURING THE DAYS, UH, OF EACH OF THESE WEATHER EVENTS.
AND IN FACT, WE, UH, SET AN ALL TIME SOLAR GENERATION PEAK ON JANUARY 16TH OF OVER 14,837 MEGAWATTS AT THAT TIME, WHICH, WHEN YOU THINK ABOUT THAT, UH, IS INCREDIBLE AND IT HAS SINCE BEEN SURPASSED SEVERAL TIMES OVER THE WINTER SINCE THEN.
SO WE CONTINUE TO SEE STRONG SOLAR PERFORMANCE BEING A VERY CRITICAL PART OF THE, UH, OF THE RESOURCE MIX.
WIND FLUCTUATED THROUGHOUT THE EVENT FROM A LOW OF ABOUT 1900 MEGAWATTS TO A PEAK OF ABOUT 24,400.
UH, THE LOWEST PERIODS WERE DURING THE, UH, PEAK PERIODS IN THE MORNING ON, ON MONDAY AND TUESDAY MORNING, WHICH IS WHEN WE HAD THE TIGHTEST CONDITIONS ON THE GRID AND MADE OUR CONSERVATION CALLS.
AND THEN OVER THE THREE BIGGEST PEAKS DURING WINTER STORM, HEATHER, WE SAW STRONG BATTERY PERFORMANCE PRO PROVIDING ABOUT 1.5% OF THE TOTAL ENERGY NEEDS.
AND THAT'S IMPORTANT BECAUSE WE, WHAT WE CAN SEE IN THE CHARTS IS THAT DURING THE PEAK PERIODS WHEN WE NEED THE ENERGY, WE SEE THE PERFORMANCE AND THE, AND THE EXECUTION OF THE BATTERIES DURING THAT TIME.
AND AS THEY ARE A GROWING RESOURCE ON THE GRID, THAT'S GONNA CONTINUE TO BE A GROWING COMPONENT OF THE, UM, OF THE RESOURCE MIX DURING THESE TIMES OF NEED.
SO THAT'S, UH, IT'S GREAT TO SEE THE CAPACITY THAT'S AVAILABLE WHEN WE NEED THEM AND, AND THE EXECUTION AT THAT TIME.
COMMUNICATIONS THAT WE HAD DURING WINTER STORM HEATHER WERE, UM, WERE REALLY CONTI CONTINUING TO SHOW THE PROGRESS AND THE ENGAGEMENT OF STAKEHOLDERS AND CONSUMERS.
UH, WE SAW OVER 1.2 MILLION VIEWS ON OUR WEBSITE DURING THIS EVENT.
WE WERE ABLE TO GAIN ABOUT 10,000 NEW FOLLOWERS ON OUR SOCIAL MEDIA PLATFORMS DURING THIS TIME.
AND WE ALSO GAINED ABOUT 10,000 NEW SUBSCRIBERS TO THE TEXAS ADVANCED NOTIFICATION SYSTEM, THE TEXANS COMMUNICATION SYSTEM THAT WE ROLLED OUT LAST SUMMER.
WE DID ISSUE AN ERCOT WEATHER WATCH FROM THE PERIODS OF JANUARY 15TH TO 17TH, AND WE MOVED IT UP THEN TO THE 14TH AS THE STORM MOVED IN FASTER.
AND WE AT IS, WE ISSUED TWO CONSERVATION APPEALS, ONE FOR THE MORNING OF THE 15TH AND ANOTHER FOR THE MORNING OF THE 16TH.
THAT HELPED US SIGNIFICANTLY GET THROUGH THOSE PEAK DEMAND PERIODS.
NOW, SHIFTING GEARS A LITTLE BIT, ONE OF THE IMPORTANT TOPICS THAT COMES UP, UM, ON A REGULAR BASIS, AND I WANTED TO SPEND JUST A LITTLE BIT OF TIME ON BECAUSE IT'S AN IMPORTANT QUESTION ABOUT, UH, THE FUTURE OF THE GRID.
UH, AND IF THERE ARE POTENTIALLY RELIABILITY AND RESILIENCY BENEFITS TO FURTHER INTERCONNECTING THE ERCOT GRID TO OTHER GRIDS OUTSIDE OF ERCOT.
AND UNFORTUNATELY, WHEN WE HAVE THESE CONVERSATIONS, A LOT OF TIMES ECONOMICS ARE NOT INCLUDED IN THE CORE ELEMENTS OF THE CONVERSATION.
THEY REALLY ARE AN IMPORTANT PART OF IT.
IT'S NOT JUST THE RELIABILITY QUESTION, IT'S REALLY A QUESTION AS TO WHETHER IT WOULD BE THE MOST ECONOMIC WAY TO IMPROVE RELIABILITY AND RESILIENCY BY INTERCONNECTING THE GRID TO OTHER GRIDS.
OR WOULD THE DOLLARS SPENT BE BETTER SERVED AND GIVE US BETTER RELIABILITY IF WE WERE TO INVEST INSIDE OF TEXAS IN ADDITIONAL TRANSMISSION AND OTHER RESOURCES TO HELP WITH RELIABILITY AND RESILIENCY.
THAT'S REALLY THE FUNDAMENTAL QUESTION.
IT'S NOT REALLY, WE'RE NOT DEBATING THAT THERE COULD BE RELIABILITY OR RESILIENCY BENEFITS BY HAVING INTERCONNECTIONS.
THE QUESTION IS, IS IT THE BEST WAY TO SPEND THE DOLLARS TO GET THEM? AND THERE'S A FEW THINGS THAT I THINK ARE IMPORTANT TO CONSIDER WHEN WE HAVE THIS CONVERSATION.
UH, FIRST OFF, THE ACTUAL COST OF THE TRANSMISSION COSTS.
SO IN ADDITION TO THE COST OF ACTUALLY BUILDING DC TIES, IF WE'RE TALKING ABOUT A A DC TYPE CONNECTION, THERE'S SIGNIFICANT ADDITIONAL TRANSMISSION INFRASTRUCTURE THAT WOULD HAVE TO BE DEVELOPED ON BOTH SIDES OF THOSE DC TIES IN ORDER TO BE ABLE TO FULLY LEVERAGE AND IMPORT THE ENERGY ACROSS THEM.
AN ANALOGY THAT I'VE THOUGHT ABOUT IS IT'S KIND OF LIKE BUILDING A RUNWAY.
IF YOU WERE GONNA BUILD JUST A RUNWAY IN THE MIDDLE OF, OF SOMEPLACE TO BE ABLE TO LAND AND, AND TAKE OFF FROM, IT DOESN'T DO YOU A LOT OF GOOD UNLESS YOU ALSO INVEST IN THE INFRASTRUCTURE TO SUPPORT THE PLANES THAT ARE GONNA BE COMING IN AND OUT OF THERE, THE TERMINALS, THE FUEL SUPPLY, THE MECHANIC CAPABILITIES, THE HANGERS AND THE, AND WHAT'S NEEDED TO STORE AND MANAGE THAT INFRASTRUCTURE.
JUST BUILDING A RUNWAY ALONE IN THE MIDDLE OF A FIELD DOESN'T GIVE YOU THE FULL BENEFIT THAT YOU'RE EXPECTING FROM HAVING FLIGHTS BEING ABLE TO COME IN AND OUT OF THERE.
AND A DC TIE SIMILARLY NEEDS TO HAVE INFRASTRUCTURE BUILT AROUND IT TO BE ABLE TO BE FULLY LEVERAGED TO ITS HIGHEST BENEFIT.
SO THAT'S SOMETHING THAT HAS TO BE CONSIDERED.
THERE ARE, THERE ARE ADDITIONAL COSTS OTHER THAN JUST THE DC TIES THAT HAVE TO BE INVESTED IN.
THEN YOU REALLY NEED TO THINK ABOUT THE ECONOMIC COST OVERALL AND THE ECONOMIC COST OF HAVING THOSE TIES AND WHAT IT MEANS TO PRICING BETWEEN ERCOT AND THE OTHER REGIONS THAT IT'S CONNECTED TO.
SO DURING PERIODS OF TIME WHEN PRICING IS HIGH IN ERCOT AND LOWER IN AREAS OUTSIDE, THERE IS THE POTENTIAL THAT YOU COULD SEE BENEFIT IN LOWERING THE COST TO
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RESIDENTS INSIDE OF ERCOT IN THAT CIRCUMSTANCE.AND THEN THE FLIP IS ALSO TRUE, WHERE WHEN THERE ARE PERIODS OF TIME WHEN PRICING IS HIGHER OUTSIDE AND BUT LOWER INSIDE OF ERCOT, THAT YOU COULD SEE A RAISING, UH, OF THE PRICING INSIDE OF ERCOT AS THE PRICE ARBITRAGE IS NORMALIZED THROUGH THESE DC TIES.
SO THAT, THAT HAS TO BE CONSIDERED.
AND SO WHEN YOU THINK ABOUT THAT, YOU REALLY NEED TO MODEL YOU ECONOMIC IMPACTS OF HOW THAT WOULD HAPPEN BETWEEN REGIONS WHEN IT'S INTERCONNECTED.
IN ORDER TO REALLY FULLY UNDERSTAND THE, THE COST BENEFIT OR THE COST IMPACT ON THE ERCOT MARKET, THOSE MODELS DON'T EXIST TODAY.
THOSE MODELS HAVE TO BE DEVELOPED.
THEY'RE BASED ON ALL MANY VARIETIES OF ECONOMIC AND OPERATIONAL BEHAVIORS AND THOSE THAT HAVE TO BE DEVELOPED AND REALLY ASSESSED TO UNDERSTAND THE TRUE ECONOMIC IMPACT INSIDE OF ERCOT AND OUTSIDE OF ERCOT.
IN ADDITION TO THAT, THE QUESTION OF RELIABILITY.
THERE'S, THERE'S NO DOUBT THAT IF THERE WAS AN OPPORTUNITY WHERE THERE WAS AMPLE SUPPLY OUTSIDE OF ERCOT AT A TIME WHEN ERCOT NEEDED IT, THAT IT COULD PROVIDE A RELIABILITY BENEFIT.
BUT THE REALITY IS THAT WHEN THESE DC TIES ARE NEEDED, THE MOST, OFTENTIMES WEATHER EVENTS, PEAK WEATHER EVENTS ARE AFFECTING AREAS ADJACENT TO TEXAS AS WELL.
WHEN WE HAVE STORMS IN THE SUMMER, WHEN WE HAVE STORMS IN THE WINTER, OFTENTIMES THE REGIONS AROUND THE TEXAS REGION, THE ERCOT MARKET ARE EXPERIENCING SIMILAR WEATHER AND CONDITIONS.
THOSE ARE GENERALLY THE PERIODS OF TIME WHEN WE TALK ABOUT THE RELIABILITY BENEFIT OF HAVING MORE INTERCONNECTIONS.
SO WHILE THERE MAY BE TIMES WHEN THERE COULD BE AN OPPORTUNITY TO TRANSFER POWER IN DURING THOSE PEAK PERIODS, THOSE PERIODS ARE LIKELY THE PERIODS OF TIME WHEN THERE WOULD BE LESS AVAILABLE SUPPLY TO MOVE ACROSS THOSE LINES BECAUSE OF CONCURRENT, UH, HAPPENSTANCE OF WEATHER EVENTS THAT ARE GOING ON IN BOTH REGIONS.
SO THEN AGAIN, THAT HAS TO AFFECT THE ECONOMIC MODEL BECAUSE IF IT'S NOT AVAILABLE DURING THOSE PERIODS OF TIME, IS THE INVESTMENT WORTH IT FOR THE, FOR THE LIMITED OR THE, OR THE AMOUNT OF TIME THAT IT ACTUALLY IS AVAILABLE TO TRANSFER POWER? IT'S AN IMPORTANT QUESTION TO CONSIDER.
AND THEN REALLY LASTLY, AND VERY IMPORTANTLY ARE THE MARKET IMPLICATIONS OF FURTHER INTERCONNECTING THE, UH, THE, THE THE ERCOT SYSTEM.
SO IF YOU THINK ABOUT THAT, DC TIES COULD HAVE THE EFFECT OF CHILLING NEW GENERATION INVESTMENT INSIDE OF THE ERCOT REGION, BECAUSE WITH MORE POWER AVAILABLE TO COME IN DURING REGULAR PERIODS OF TIME THROUGHOUT THE COURSE OF A YEAR, THE ECONOMIC IMPACT INSIDE OF ERCOT COULD HAVE AN EFFECT OF MAKING IT LESS ECONOMICALLY ADVANTAGEOUS TO BUILD POWER PLANTS INSIDE OF ERCOT.
YOU COULD SEE SCENARIOS WHERE IT WOULD MAKE MORE ECONOMIC SENSE TO BUILD THEM RIGHT OUTSIDE OF ERCOT, POTENTIALLY BENEFITING FROM SOME OF THE CAPACITY MARKET REVENUES THAT WOULD BE AVAILABLE IN THE SP SPP MARKET OR IN THE MISO MARKET, AND THEN SELLING THAT POWER BACK INTO ERCOT WHEN ERCOT PRICING IS HIGH.
SO YOU HAVE TO THINK ABOUT HOW IT COULD ALSO AFFECT THE MARKET AND THE MARKET BEHAVIORS WHEN YOU'RE CONSIDERING INTERCONNECTING THE ERCOT REGION TO OTHER REGIONS.
SO THERE'S A LOT OF REALLY IMPORTANT CONSIDERATIONS, AND IT IS AN IMPORTANT QUESTION.
IT'S SOMETHING THAT SHOULD BE TALKED ABOUT AND SHOULD BE EVALUATED, BUT NOT JUST THROUGH THE SIMPLE LENS OF IT WOULD ADD RELIABILITY ONLY.
WE REALLY NEED TO LOOK AT THE TRUE COST OF IT, THE ECONOMIC IMPACTS TO THE MARKET, THE ECONOMIC IMPACTS TO THE DECISION MAKING AROUND GENERATION AND HOW GENERATION WOULD DEVELOP.
AND THOSE ARE IMPORTANT ISSUES THAT SHOULD BE WORKED THROUGH THE PUBLIC UTILITY COMMISSION.
IT HAS INITIATED PROCEEDINGS TO CONSIDER ISSUES THAT ARE RELATED TO INTERCONNECTIONS, TO OTHER REGIONS AND OUTSIDE OF ERCOT, AND WE ARE PARTICIPATING IN THOSE PROCEEDINGS WITH THE PUBLIC UTILITY COMMISSION.
IT'S ALSO IMPORTANT TO NOTE THAT'S NOT OFTEN BROUGHT UP WHEN WE TALK ABOUT THIS, THAT WE, WE HAVE ABOUT 3,500 MEGAWATTS OF GENERATING FACILITIES THAT ARE SWITCHABLE BETWEEN ERCOT AND OTHER REGIONS.
SO WE ACTUALLY, BEYOND THE 1200 MEGAWATTS OF DC TIES THAT WE HAVE IN PLACE TODAY, WE HAVE 3,500 MEGAWATTS OF ACTUAL GENERATOR CAPACITY THAT CAN FLEX IN AND OUT OF ERCOT DEPENDING ON WHERE THE NEED AND THE OPPORTUNITY AND THE ECONOMICS ARE FOR THOSE RESOURCES.
SO WE ARE ACTUALLY MORE INTERCONNECTED IN MANY WAYS THAN, THAN IS ACKNOWLEDGED.
AND WHEN WE TALK ABOUT THIS ISSUE, I'LL PAUSE THERE IF THERE'S ANY QUESTIONS ON, ON THIS SUBJECT BEFORE MOVING FORWARD.
THEN LOOKING AT, UM, AGAIN, OUR RELIABILITY PLANNING, I WANNA TALK A LITTLE BIT ABOUT INVERTER BASED RESOURCES.
SO INVERTER BASED RESOURCES, THOSE ARE GEN OR GENERATION RESOURCES THAT ARE CONNECTED TO THE GRID THROUGH POWER ELECTRONIC INTERFACES THAT ARE CALLED INVERTERS.
INSTEAD OF ELECTROMAGNETIC INTERFACES THAT CONNECT TRADITIONAL OR CONVENTIONAL THERMAL GENERATORS.
VIRTUALLY ALL WIND, SOLAR AND BATTERIES ARE CONNECTED TO THE ERCOT GRID USING, UH, INVERTERS.
AND TODAY, THESE INVERTER BASED RESOURCES ARE MAKING UP A VERY SIGNIFICANT PORTION OF THE ERCOT UH, RESOURCES, GENERATION
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RESOURCES TODAY.THEY COMPRISE ABOUT 43% OF THE CAPACITY AVAILABLE TO THE ERCOT GRID, AND THAT IS FORECASTED TO GROW SIGNIFICANTLY MOVING FORWARD.
AS WE'VE TALKED ABOUT, WHEN WE LOOK AT THE INTERCONNECTION QUEUE FOR ERCOT, WE HAVE ABOUT 325,000 MEGAWATTS OF STATED INTEREST OF GENERATION COMING ONTO THE GRID.
ABOUT 275,000 MEGAWATTS OF THAT IS SOLAR AND BATTERIES, AND THEN YOU ADD ANOTHER 35,000 TAKING IT UP TO 310 THAT GETS, THAT ADDS WIND TO IT.
SO 310 OUT OF THE 325,000 ARE INVERTER BASED RESOURCES THAT ARE INTERESTED IN CONTINUING TO CONNECT TO THE GRID.
SO WE'RE WORKING THROUGH AN OPERATING GUIDE REVISION REQUEST TODAY WITH THE MARKET CALLED NOER 2 45, WHICH IS A PROPOSED SET OF RULE CHANGES TO EXISTING AND TO NEW INVERTER BASED RESOURCES THAT WOULD ADDRESS THE POTENTIAL FOR RIDE THROUGH CAPABILITIES OF THOSE RESOURCES.
SO WHAT RIDE THROUGH CAPABILITIES ARE, THAT'S A RESOURCE'S ABILITY TO CONTINUE TO PRODUCE POWER AND TO SUPPORT VOLTAGE WHEN A DISTURBANCE HAPPENS ON THE GRID.
AND A DISTURBANCE COULD BE ANYTHING LIKE A, A LIGHTNING STRIKE HITTING A TRANSMISSION LINE.
THE CHANGES IN NO 2 45 WOULD IMPOSE REQUIREMENTS OF GENERATION ODORS ON OWNERS ON THEIR EXISTING INVERTER BASED RESOURCES, AS WELL AS ESTABLISH NEW RIDE FEE PERFORMANCE REQUIREMENTS THAT ARE CONSISTENT WITH THE NEW IEEE 2,800 STANDARD.
AND THOSE WOULD BE FOR NEW INVERTER BASED RESOURCES CONNECTING TO THE ERCOT SYSTEM IN FUTURE YEARS.
RIGHT NOW, NOBU 2 45 IS STILL WITH TAC AND BEING WORKED THROUGH CONSTRUCTIVELY WITH A LOT OF DIALOGUE AND HAS BEEN ONGOING FOR, FOR, FOR QUITE A PERIOD OF TIME OVER A YEAR.
THE ISSUE AROUND THE FAILURE TO RIDE THROUGH UNDER NORMAL CIRCUMSTANCES IS THE RISK IS THAT THERE COULD BE AN UNDER FREQUENCY LOAD SHED THAT WOULD OCCUR IF INVERTEBRATE RESOURCES WERE TO TRIP OFFLINE AND NOT BE ABLE TO RIDE THROUGH A DISTURBANCE OF WHAT I I NOTED.
AND WHAT THAT COULD DO IS IT COULD LEAD TO A CASCADING OF ADDITIONAL GENERATION AND LOAD LOSS, WHICH COULD RESULT IN A SYSTEM BLACKOUT.
WE'VE HAD TWO SIGNIFICANT LACK OF RIDE THROUGH EVENTS AND NUMEROUS SMALLER EVENTS ALREADY ON THE ERCOT SYSTEM, WHICH HAVE PROMPTED FEDERAL INVESTIGATIONS INTO THE DRIVERS AND THE RISKS ASSOCIATED WITH THESE KINDS OF EVENTS.
SO IF RIDE THROUGH FAILURES AND THE STANDARDS ARE NOT ADDRESSED WITH MORE AND MORE INVERTER BASED RESOURCES CONNECTING TO THE GRID, THE RISKS OF A MAJOR LOSS OF LOAD EVENT CONTINUE TO RISE AS MORE POWER IS BEING SERVED BY THESE TYPES OF RESOURCES.
SO ADDRESSING THE ISSUES THAT ARE IN NOGO 2 45 WILL ADEQUATELY MINIMIZE RIDE THROUGH FAILURE EVENTS TO A MANAGEABLE LEVEL AND TO HELP PREVENT SUCH EVENTS FROM OCCURRING ON THE ERCOT SYSTEM.
AS WE TRANSITION TO A LARGELY IBR DOMINATED RESOURCE MIX, THE GOAL IN THIS WORK THAT WE'RE DOING WITH TAC IS TO TRY TO FIND THE RIGHT BALANCE BETWEEN RISK MITIGATION AND THE ECONOMIC COST AND IMPACT OF ACHIEVING THAT RISK MITIGATION.
IT'S IMPORTANT THAT WE FIND THAT RIGHT BALANCE, IT HAS TO WORK FOR THE GENERATORS THAT ARE SUPPORTING AND OPERATING THESE RESOURCES, AND IT HAS TO WORK FOR DRIVING THE RELIABILITY AND THE RESILIENCY THAT'S NEEDED THROUGH THE CHANGES IN THESE NEW STANDARDS.
I'LL PAUSE IF THERE'S QUESTIONS.
YES, CARLOS? UM, DOES THAT INCLUDE BLACKSTAR, UH, TYPE CAPABILITY INERTIA BUILDING CAPABILITY? SO TODAY, AND I'LL ASK FOR A LITTLE HELP FROM, UH, THE, FROM THE AUDIENCE HERE WITH DAN THAT IF, UH, SO MOST OF OUR BLACKSTAR RESOURCES TODAY, I BELIEVE ARE CONVENTIONAL RESOURCES, UH, VERSUS INVERTER BASED RESOURCES.
HOWEVER, THAT IS SOMETHING THAT IS, YOU KNOW, COULD POTENTIALLY INCLUDE BLACKSTAR RESOURCES THAT, UH, LIKE BATTERIES COULD POTENTIALLY PLAY A ROLE IN THAT, IN, IN THE FUTURE.
BUT I DON'T BELIEVE THEY DO TODAY.
DAN, COULD YOU JUMP IN AND AND HELP WITH THAT? NO, I THINK THAT'S RIGHT.
AND WE ALSO HAVE A, A, UM, INITIATIVE GOING ON WHERE WE'RE TRYING TO WORK THROUGH WHAT SHOULD THE RULES BE THAT WILL ENCOURAGE GRID FORMING INVERTERS, WHICH I THINK IS WHAT YOU'RE REFERRING TO AND HOW THAT WILL BE PUT IN PLACE.
AND OUR INTENT IS TO GET SOME RULES AROUND THAT PUT IN PLACE BY THE END OF THE YEAR.
PAOLA, COULD YOU ADDRESS JUST BRIEFLY THE, UM, TIMING DIFFERENCES BETWEEN WHAT WE HAVE GOING ON IN THIS ENERGY R AND THE FEDERAL LEVEL REVIEW OF THIS ISSUE? YEAH, SO THIS INITIATIVE, THIS ISSUE HAS, UM, COME UP WITH NERC AND NERC IS STARTING THE PROCESS OF WORKING A THROUGH A RULEMAKING TO ADDRESS REQUIREMENTS FOR ALL INVERTER BASED RESOURCES UNDER THEIR PURVIEW.
TYPICALLY, THE TIMELINE FOR A NERC RULEMAKING, IT TENDS TO BE LONGER THAN THE TIMELINE WE EXPERIENCE INSIDE OF TEXAS.
I WOULD EXPECT THAT WE WOULD BE ABLE TO GET TO A REASONABLE SET OF STANDARDS, UH, IN THE NORE 2 45 PROCESS, POTENTIALLY A YEAR OR MORE AHEAD OF WHEN WOULD BE COMING THROUGH ON THE NERC SIDE.
AND THEN ONCE THE NERC STANDARD COMES IN, AS HAS HAPPENED BEFORE, LIKE WITH THE WINTER STANDARDS, WE'LL EVALUATE THE DIFFERENCES.
[00:25:01]
WE ALWAYS COMPLY WITH THE NERC STANDARDS, BUT IN MANY CASES, THE TEXAS STANDARDS ALREADY ARE STRUCTURED IN SUCH A WAY THAT THEY MEET THOSE COMPLIANCE EXPECTATIONS.IN REGARDS TO, WE HAVE RESOURCES THAT ARE ALREADY ONLINE AND THEN WE HAVE THOSE THAT ARE COMING INTO THE SYSTEM, IS THE MAJOR PUSHBACK, THOSE THAT ARE CURRENTLY ALREADY IN THE SYSTEM OR FROM ALL OF THE RESOURCES? THE, THE ECONOMIC IMPACT IS ON BOTH SIDES.
SO THERE'S ECONOMIC IMPACTS IN DOING RETROFITS TO EXISTING FACILITIES THAT ARE OF OLDER.
IT IS MORE EXPENSIVE AND MORE DIFFICULT WITH OLDER GENERATION INVERTER BASED RESOURCES THAN WITH CURRENT ONES.
AND, UH, BUT THERE IS AN ECONOMIC COST ALSO TO FUTURE ONES AS WELL, BECAUSE TODAY, IF INVERTERS ARE NOT BEING DESIGNED OR BUILT WITH THAT RIGHT THROUGH CAPABILITY, THERE WOULD BE INCREMENTAL COST TO MANUFACTURE AND DESIGN THEM IN SUCH A WAY THAT IT WOULD HAVE THAT.
SO THERE'S REALLY CONSIDERATIONS I THINK, FOR EXISTING RESOURCES.
THERE'S ONES FOR PROJECTS THAT HAVE ALREADY BEEN PLANNED AND COMMITTED AND PERHAPS ARE, ARE GONNA BE LEVERAGING TECHNOLOGY THAT MAY NOT FULLY MEET THE EXPECTATIONS THAT WE'RE TRYING TO WORK THROUGH IN NO 2 45.
AND THEN THERE'S THE FUTURE, FUTURE, WHICH ARE AS NEW ONES ARE MANUFACTURED AND DESIGNED, MAKING SURE THAT THEY INCLUDE THESE STANDARDS INTO THE FUTURE.
AND SO I, I WANNA ACKNOWLEDGE THAT THERE'S ECONOMIC IMPACTS ACROSS ALL FACETS OF THAT, AND WE'RE WORKING THROUGH THAT AND, AND TRYING TO UNDERSTAND WHAT'S REASONABLE WITH THE GENERATOR COMMUNITY SO THAT THE STANDARD THAT WE SET DOESN'T IMPOSE AN UNREASONABLE EXPECTATION.
OKAY, THANK YOU FOR THE, FOR THE QUESTIONS TO, UH, SHIFT GEARS A LITTLE BIT.
UM, HOUSE BILL 50 66 WAS PASSED DURING THE LAST LEGISLATIVE SESSION.
IT IS A, UH, PIECE OF LEGISLATION THAT FOCUSES ON THREE KEY THINGS ADDRESSING EXTENDING TRANSMISSION INTO SERVICE AREAS WHERE MINERAL RESOURCES HAVE BEEN FOUND.
ALSO, IT ADDRESS INCREASES AVAIL, INCREASING AVAILABLE TRANSMISSION CAPACITY TO MEET FORECASTED LOAD IN THE SYSTEM.
SO HISTORICALLY, WE HAVE TYPICALLY ONLY PLANNED, UH, WITH, WITH COMMITTED LOADS IN THE SYSTEM, BUT THIS REQUIRES US TO LOOK AT THE EXPECTATION OF FORECASTED AND PROBABLE LOADS THAT ARE GONNA BE COMING INTO, UH, THE ERCOT REGION AND INCLUDING THAT IN OUR PLANNING STUDIES.
AND THEN IN ADDITION TO PROVIDE AVAILABLE INFRASTRUCTURE THAT REDUCES THE INTERCONNECTION TIMES IN AREAS THAT DON'T HAVE GOOD ACCESS TO, UH, TO TRANSMISSION SERVICE TODAY, WHAT THE CHART SHOWS HERE IS TWO STUDIES THAT HAVE TAKEN PLACE, UH, RECENTLY, ONE ON THE LEFT TOOK PLACE LAST YEAR AND WAS LOOKING AT A 2029 VIEW OF LOAD GROWTH IN THE PERMIAN REGION.
AND THE ONE ON THE RIGHT IS REALLY A, A STUDY THAT WAS PERFORMED MUCH MORE RECENTLY THIS YEAR LOOKING AT THAT SAME REGION.
WHAT YOU CAN SEE HERE, THE KEY DIFFERENCE I'M DRAWING ON THE CHART IS THE NON-OIL AND GAS LOAD BETWEEN THOSE TWO STUDIES, THE SIGNIFICANT INCREASE THAT HAS TAKEN PLACE, UH, IN TERMS OF THE FORECAST OF EXPECTED GROWTH IN THESE, IN THE PERMIAN AREA, AND THIS IS ALL DIFFERENT TYPES OF LOAD, COULD BE DATA CENTERS, IT COULD BE OTHER MANUFACTURING FACILITIES, PROCESSING COULD BE HYDROGEN, IT COULD BE ANY VARIETY OF LARGE LOADS, INDUSTRIAL LOADS THAT ARE PROPOSED TO COME INTO THIS AREA BEYOND OIL AND GAS AND EXPLORATION RELATED LOAD.
THIS, UM, WE HAVE BEEN MEETING ON A WEEKLY BASIS LEADING UP TO THIS POINT WITH TRANSMISSION SERVICE PROVIDERS TO, TO GET THE DATA INTO A FORMAT SO THAT WE CAN DO THESE STUDIES.
AND AS YOU CAN TELL, A 40, THIS IS ABOUT A 44 40 5% INCREASE BETWEEN THESE TWO STUDIES.
IT'S A VERY SIGNIFICANT INCREASE IN THIS REGION.
TO PUT IT INTO CONTEXT, UM, THE TOTAL NON COINCIDENT PEAK LOAD FOR THE COAST WEATHER ZONE, WHICH INCLUDES HOUSTON, UM, IS ABOUT 29.8 GIGAWATTS WHEN THAT WAS MODELED FOR THE 2029 YEAR.
SO 29.8 AND THE TOTAL NON COINCIDENT PEAK LOAD FOR THE NORTH CENTRAL WEATHER ZONE MODELED FOR THAT SAME PERIOD, WHICH THAT INCLUDES DALLAS, WAS 32.5 GIGAWATTS.
SO TO GIVE YOU PER THAT, THIS, THIS LOAD IS GETTING UP THERE WITH ONE OF, WITH THE LARGEST CORE REGIONS IN THE, IN THE ERCOT MARKET AND IN TEXAS.
AND WHAT WE'RE SEEING IS THAT THE, IN THE PERMIAN BASIN OIL AND GAS LOAD IS ALSO SHIFTING TO THE DELAWARE BASIN, WHERE RIGHT NOW THERE'S VERY SPARSE TRANSMISSION FACILITIES.
AND IN ADDITION, ONE OF THE CONSIDERATIONS AS WE'RE WORKING THROUGH THIS PLANNING IS THE FACT THAT THERE IS VERY, UH, LIMITED CONVENTIONAL GENERATION, UH, COMPARED TO THE COAST AND TO THE NORTH CENTRAL ZONE.
SO THE TRANSMISSION PLANNING HAS TO ASSUME A LEVEL OF GENER OF GENERATION SUPPORT IN ORDER TO SERVE THESE LOADS.
AND SO THAT'S AN ADDED COMPLEXITY IN PUTTING TOGETHER THESE RELIABILITY MODELS.
FROM A TIMING PERSPECTIVE, WE'LL BE WORKING ON THIS THROUGHOUT THE FIRST HALF OF THIS YEAR, PUTTING THESE STUDIES TOGETHER AND THEN WORKING ON, UM, ON HAVING A LONG-TERM PLAN THAT MEETS ALL THE RELIABILITY NEEDS IN THE PERMIAN BASIN, UH, USING THESE CRITERIA.
SO I'LL PAUSE THERE IF THERE'S ANY QUESTIONS ON THIS.
HOW ABOUT DO, DO WE HAVE ADEQUATE VISIBILITY INTO THE GENERATION IN THIS AREA? LIKE WHAT,
[00:30:01]
WHAT IS BEING PLANNED, WHAT'S BEING DISCUSSED AND HOW, HOW DO WE GET THAT INFORMATION? THAT IS ONE OF THE COMPLEXITIES OF THE, AND I'LL AND WOODY OR, OR DAN I'LL TEE YOU UP FOR PERSPECTIVE ON THIS AS WELL, BUT THE, UM, WHAT WE SEE ON THE INTERCONNECTION QUEUE WOULDN'T NECESSARILY TODAY SUPPORT THE LEVEL OF GROWTH THAT WE'RE SEEING IN THESE REGIONS.UH, AND TYPICALLY, YOU KNOW, BASED ON THE, THE RATIOS I JUST TALKED ABOUT, UM, WE'RE NOT SEEING YET THE COMMITMENTS OR THE EXPECTATIONS OF LOAD OF GENERATION DEVELOPMENT TO MEET THAT LOAD DURING THAT TIME PERIOD.
HOWEVER, THAT BEING SAID, AS THESE PLANS FIRM UP AND AS THE PROJECTS INITIATE TO START TO DELIVER ON THIS ELECTRIFICATION TRANSITION THAT'S HAPPENING AND THE DEVELOPMENT OF THESE TYPE OF INDUSTRIAL LOADS, THAT'S TYPICALLY WHEN YOU WOULD SEE SOME HAND IN HAND DEVELOPMENT OF GENERATION AND CONTRACTS POTENTIALLY TO EVOLVE AROUND THAT.
BUT RIGHT NOW, THE, THE VISIBILITY ISN'T VERY CLEAR ON WHERE THAT WOULD BE.
AND SO WE HAVE TO MAKE ASSUMPTIONS IN OUR MODELS TO WHAT, WHAT WOULD BE REASONABLE LOCATIONS FOR GENERATION TO SHOW UP IN ORDER TO SOLVE THESE RELIABILITY STUDIES.
WHAT DO Y'ALL OFFER IF YOU HAVE ANOTHER PERSPECTIVE TO, TO ADD TO THAT? YEAH, THAT'S, THAT'S A KEY PIECE OF TRANSMISSION PLANNING IS KNOWING WHAT THE GENERATION IS.
TRANSMISSION IS MEANT TO CONNECT GENERATION TO LOAD, AND IF WE DON'T HAVE THE LOCATION OF THE NEW GENERATION, THAT MAKES TRANSMISSION PLANNING A LOT MORE DIFFICULT.
SO MOVING FORWARD, UM, A COUPLE OF THE NEW DASHBOARDS THAT I'VE NOTED EARLIER.
SO WE'VE GOT ONE THAT IS, UH, WE'VE GOT A, A NEW SET OF GRID CONDITIONS THAT ARE ON THE GRID CONDITION LEVEL DASHBOARD THAT WE HAVE.
UH, IT'S GOT, IT'S NOW GONNA REFLECT SEVEN DIFFERENT GRID CONDITIONS.
WE PREVIOUSLY HAD FIVE, UH, IT INCLUDES THE, THE ERCOT WEATHER WATCH AND THE VOLUNTARY CONSERVATION NOTICE AND THE CONSERVATION APPEAL THAT WAS INTRODUCED AS PART OF THE ROLLOUT OF THE TEXANS, UH, THE ADVANCED NOTIFICATION SYSTEM.
THE CONSERVATION APPEAL IS A NEW COLOR THAT WE'RE GONNA HAVE ON THE GRID NOW.
IT'S GONNA SHOW UP AS AN ORANGE LEVEL GRID.
AND THEN ENERGY EMERGENCY LEVEL ONE, UH, IS GONNA BE THE SAME COLOR, THE RED AS IT WAS AS, UH, ENERGY EMERGENCY LEVEL TWO IS.
SO THOSE ARE THE SHIFTS THAT, UH, THAT OCCURRED.
YOU CAN GO TO THIS NEW PART OF OUR DASHBOARD BY CLICKING ON THE ARROW ON THE TOP RIGHT CORNER OF THE GRID CONDITIONS DASHBOARD FROM THE ERCOT.COM HOMEPAGE.
AND THEN IN ADDITION, WE HAVE ROLLED OUT A NEW DASHBOARD THAT SHOWS THE LEVEL OF GENERATION OUTAGES.
SO THIS IS A GRAPHICAL REPRESENTATION OF PLANNED AND FORCED GENERATION OUTAGES IN THE ERCOT SYSTEM.
YOU CAN GET TO IT FROM THE GRID AND MARKET CONDITIONS PAGE ON OUR WEBSITE.
AND IT PROVIDES MEGAWATT VALUES OF BOTH PLANNED AND FORCED GENERATIONS THAT ARE CURRENTLY TAKING PLACE AS WELL AS THOSE THAT OCCURRED DURING THE PRIOR SIX DAYS.
AND THESE QUANTITIES DO INCLUDE BOTH FULL OUTAGES AS WELL AS PARTIAL REDUCTIONS IN GENERATION CAPABILITY THAT MEET REPORTING REQUIREMENTS.
AND THE VALUES THAT YOU SEE IN THE MEGAWATTS HERE, UH, REDUCTIONS ARE RELATIVE TO THAT GENERATOR'S MAXIMUM SEASONAL CAPACITY.
THAT WOULD BE THE WAY TO LOOK AT IT.
SO IF YOU SAW FIVE GIGAWATTS OF OUTAGES, IT WOULD BE AGAINST WHAT IT WOULD BE EXPECTED FOR THAT SEASONAL PERFORMANCE AT THAT TIME OF THE YEAR.
SO SHIFTING GEARS, I WANTED TO, UH, CALL OUT A VERY, UH, SIGNIFICANT RECOGNITION WITHIN OUR ORGANIZATION.
PENWAY DU HAS BEEN, UH, NAMED AN IEE FELLOW.
UM, HE IS THE SUPERVISOR OF ECONOMIC ANALYSIS AND LONG-TERM PLANNING STUDIES AND WAS SELECTED INTO THE IEE FELLOWSHIP CLASS OF 2024.
HE HAS BEEN ACKNOWLEDGED FOR HIS TREMENDOUS WORK IN LOAD RESOURCE INTEGRATION AND IN SMART GRID PLANNING.
THE IEE UH, INSTITUTE, IT'S THE INSTITUTE OF ELECTRICAL AND ELECTRONICS ENGINEERS, IS THE WORLD'S LARGEST TECHNICAL PROFOR PROFESSIONAL ORGANIZATION THAT IS DEDICATED TO ADVANCING TECHNOLOGY.
AND THEIR ACCLAIMED FELLOW PROGRAM RECOGNIZES MEMBERS WITH EXTRAORDINARY ACCOMPLISHMENTS.
SO I JUST WANTED TO CALL OUT AND CONGRATULATE PENWAY FOR THIS DISTINCT AND SIGNIFICANT HONOR, AND AS I ALWAYS LIKE TO DO, AND I CONCLUDE MY REMARKS AS TO PROVIDE THANK YOUS TO, UM, THOSE THAT HAVE REALLY STEPPED UP AND, AND, AND MADE SIGNIFICANT CONTRIBUTIONS.
AND FIRST OFF, I, I WANNA THANK ALL EMPLOYEES THAT, AGAIN, LEANED IN WHEN WE HAD ANOTHER WINTER STORM EVENT IN THE PREPARATIONS, THE PLANNING, THE EXECUTION, THE LONG DAYS AND NIGHTS IN THE OFFICE THROUGHOUT TO MAKE SURE THAT EVERYTHING AND EVERYBODY WAS SUPPORTED IN THE WAY THAT THEY NEED IT TO BE SUPPORTED.
I WANNA THANK THE PUBLIC UTILITY COMMISSION, TEXAS DEPARTMENT OF EMERGENCY MANAGEMENT, THE RAILROAD COMMISSION TURK, ALL OF THEM WHO AND ALL THE EMPLOYEES WHO WERE INVOLVED IN THE SUPPORT DURING THE, UH, WINTER STORM HEATHER.
AND IN ADDITION, I WANTED TO CALL OUT THAT, UM, THIS BUILDING THAT WE ARE IN, THE ERCOT NEW MET E HEADQUARTERS AND ITS ARCHITECT URBAN FOUNDRY, WERE JUDGED AS WINNERS OF THE DESIGN EXCELLENCE AWARD BY THE INTERNATIONAL INTERIOR DESIGN ASSOCIATION.
[00:35:01]
CATEGORY WERE JUDGED ON THE SUCCESS BY WHICH THE PROJECT MET THEIR INDIVIDUAL REQUIREMENTS, THE ORIGINALITY OF THE DESIGN SOLUTION AND THE SUCCESSFUL INTEGRATION OF INTERIOR FINISHES AND FURNISHINGS, AND THE ABILITY TO REINFORCE OF THE, THE CONCEPT OF THAT DESIGN INTENT.THERE WERE MANY CONTRIBUTORS TO THE SUCCESS OF THIS PROJECT, INCLUDING THE GREAT ARCHITECTS AT URBAN FOUNDRY, OUR EXTERNAL PARTNERS AT CBRE AND RAN CONSTRUCTION WHO EXECUTED THIS VISION AND TO WORK VERY CLOSELY WITH THE ERCOT TEAM TO ENSURE THE QUALITY OF THE FINAL PRODUCT.
THIS EFFORT WAS LED BY BETTY DAY'S FACILITIES DEPARTMENT, AND THE SUCCESS OF THE PROJECT INCLUDED MULTIPLE TEAM EFFORTS, WHICH INCLUDED LEGAL, FINANCE, PROCUREMENT, IT, INTERNAL AUDIT, AND I'D LIKE TO CALL OUT BRAND RIDELL, SEAN TAYLOR, JIMMY RAMIREZ, BRIAN HANLEY, JASON CHAMBERS, AND BARBARA KRAMER, WHO LED THEIR GROUP'S EFFORTS THAT WERE ALL SUCCESSFUL TO THE CONSTRUCTION AND COMPLETION OF THIS BUILDING AND EVENTUALLY TO THE AWARD THAT IT RECEIVED.
AND THEN IN MY TRADITION OF ALWAYS TRYING TO SAVE THE BEST FOR LAST, I WANTED TO RECOGNIZE AND ACKNOWLEDGE A DEAR FRIEND AND COLLEAGUE WHO IS GOING TO BE RETIRING FROM ERCOT HERE SHORTLY.
IT IS, UH, IT CANAN A GALMAN AND IT IS VERY DIFFICULT TO SUM UP IN A SLIDE THE INCREDIBLE ACCOMPLISHMENTS THAT BOTH KENAN INDIVIDUALLY AND HIS TEAM HAVE ACHIEVED IN HIS AROUND EIGHT YEARS HERE AT ERCOT, MORE THAN 15 YEARS IN THE ERCOT MARKET.
ON THIS SLIDE IS JUST AN EXAMPLE OF, UH, MANY OF THE IMPORTANT INITIATIVES THAT KENAN HAS HELPED TO ADVANCE AT ERCOT, BUT IN MANY WAYS HIS IMPACT WAS FELT MUCH DEEPER THAN JUSTIN.
THROUGHOUT THESE INITIATIVES, HE HAS DONE AN INCREDIBLE JOB OF DEVELOPING TALENT IN THIS ORGANIZATION TO THE DEGREE THAT YOU COULD REALLY CONSIDER HIS ORGANIZATION A TALENT FACTORY FOR THE INDUSTRY.
AS MANY OF THE MARKET PARTICIPANTS AND SOME OF THEM IN THIS ROOM HAVE POACHED SOME OF THE BEST TALENT AWAY FROM CANON'S TEAMS OVER THE YEARS BECAUSE OF THAT INCREDIBLE QUALITY AND TALENT.
AND IN ADDITION FOR ALL THESE ITEMS LISTED, NOT ONLY WERE THE MECHANICS OF THE DEVELOPMENT AND THE, THE ELEGANCE OF THE SOLUTIONS, UH, ATTRIBUTABLE TO TO, TO CANON'S LEADERSHIP, BUT HIS ABILITY TO BRING CONSENSUS TOGETHER IN THESE CONVERSATIONS WAS SOMETHING THAT WAS REALLY REMARKABLE.
HONESTLY, THE MOST DIFFICULT THING ABOUT WORKING WITH KAN IS PRONOUNCING HIS NAME CORRECTLY BECAUSE THERE IS NOTHING DIFFICULT ABOUT WORKING WITH KAN.
AND WE'LL MISS HIM HERE AND WISH HIM THE BEST IN THE FUTURE.
THAT CONCLUDES MY REMARKS FOR TODAY.
IF THERE'S ANY QUESTIONS ON ANY OF THE MATERIAL, I'D WELCOME THEM.
OTHERWISE WE'LL MOVE ON TO OUR NEXT AGENDA ITEM.
ANY QUESTIONS OR COMMENTS? THANK YOU.
[7. Adjunct Membership Application of Enerwise Global Technologies, LLC d/b/a Cpower]
NEXT AGENDA.ITEM SEVEN IS A VOTING ITEM, ADJUNCT MEMBERSHIP APPLICATION OF ENTERPRISE GLOBAL TECHNOLOGIES, LLC, UH, DBAC, POWER FOR MEMBERSHIP YEAR 2024.
AND CHAD'S GONNA SHED SOME LIGHT ON THAT.
THIS IS A VOTING ITEM AND YOU HAVE A BOARD DECISION TEMPLATE IN YOUR MATERIALS.
THE BYLAWS REQUIRE BOARD APPROVAL IF THE ENTITY DOES NOT MEET THE DEFINITIONS OR REQUIREMENTS TO JOIN AS A CORPORATE OR ASSOCIATE MEMBER.
UH, AS A REMINDER, ADJUNCT MEMBERS ARE LIMITED TO VOTING AT MEETINGS OF THE PROTOCOL REVISION SUBCOMMITTEE.
IN THIS CASE, C POWER CURRENTLY DOES NOT MEET THE DEFINITION OF ANY SEGMENT AS SET FORTH IN THE BYLAWS, BUT IS AN ACTIVE MARKET PARTICIPANT AND WOULD QUALIFY FOR MEMBERSHIP IN THE INDEPENDENT POWER MARKET SEGMENT, EXCEPT FOR THE AFFILIATE THAT IT HAS WITH THE TRANSMISSION AND DISTRIBUTION ENTITY CROSS TEXAS TRANSMISSION LLC, WHICH MAKES ITS INELIGIBLE UNDER THE BYLAWS TO BE THAT INDEPENDENT POWER MARKETER SEGMENT.
SO FOR THOSE REASONS, WE'VE LOOKED AT THE, THE INFORMATION ERCOT LEGAL RECOMMENDS THE BOARD APPROVE C POWER'S ADJUNCT MEMBERSHIP APPLICATION FOR 2024.
AND I'M HAPPY TO ANSWER ANY QUESTIONS.
JOHN, DO I HAVE A SECOND, PEGGY, OR, UH, ALL IN FAVOR? AYE.
[8. TAC Report]
I'D LIKE TO INVITE KAITLYN SMITH, CHAIR OF THE TECH TECHNICAL ADVISORY COMMITTEE TO PRESENT AGENDA ITEM EIGHT, THE TAC REPORT.UM, AND THAT WAS A, A VERY LOVELY SLIDE TO KENAN.
UH, I'VE KNOWN HIM, I THINK MY ENTIRE CAREER IN THIS INDUSTRY.
HE'S A GREAT FRIEND AND, AND MENTOR, AND I KNOW THE, THE STAKEHOLDERS WILL MISS HIM IN THIS ROLE A LOT.
[00:40:01]
ADVISORY COMMITTEE.THANKS FOR THE OPPORTUNITY TO PRESENT AND THANK YOU FOR THE CONFIRMATION OF TECH LEADERSHIP EARLIER.
I AM HONORED TO BE IN THIS ROLE AFTER SERVING AS VICE CHAIR LAST YEAR.
UH, COLIN MARTIN, WHO IS IN THIS ROOM ON THAT SIDE FROM ENCORE, WAS ELECTED TO BE THE 2024 VICE CHAIR.
HE, HE IS REALLY GREAT, UM, AND HE'S GONNA BRING A LOT OF VALUE AND EXPERIENCE AND KNOWLEDGE TO TAX.
SO I'M EXCITED TO HAVE HIM ON BOARD THIS YEAR.
SO AS WE DO AT EVERY BOARD MEETING, WE WILL PRESENT A SUMMARY OF THE TAC MEETINGS THAT HAVE OCCURRED SINCE THE LAST BOARD MEETING.
WE DID MEET ON JANUARY 24TH AND FEBRUARY 14TH.
WE VOTED UNANIMOUSLY TO RECOMMEND APPROVAL OF 18 REVISION REQUESTS.
WE VERY UNCHARACTERISTICALLY HAVE, UH, NO REVISION REQUESTS WITH OPPOSING VOTES.
SO THAT IS WHY WE WERE NOT AT R AND M YESTERDAY.
SO HERE IS THE SLIDE WITH THE 18 REVISION REQUESTS THAT WERE ALL UNOPPOSED THAT WE DID RECOMMEND FOR APPROVAL.
SO, UH, WE ALSO DID CONFIRM, UH, THE 2024 TAX SUBCOMMITTEE AND SUBGROUP LEADERSHIP.
UM, I WAS GOING TO RUN THROUGH THESE QUICKLY.
SO FOR PRSI DID WANNA NOTE HERE WE HAVE A OUTGOING CHAIR, MARTHA HENSON FROM ENCORE.
SHE DID THIS ROLE, I THINK FOR SEVEN YEARS AND, AND REALLY SERVED STAKEHOLDERS.
UM, GOT A NUMBER OF NPR THROUGH THE, WE HAD A RESOURCE DEFINITION TASK FORCE, RTC, AND NUMEROUS PRIORITY AND URGENT NPRS AFTER YURI.
SO I JUST WANNA ACKNOWLEDGE, UH, ALL HER HARD WORK AND DEDICATION THERE.
UM, THOSE ARE REALLY BIG SHOES TO FILL, BUT WE HAVE GREAT LEADERSHIP FOR PRS THIS YEAR AS WELL.
WE HAVE DIANA COLEMAN FROM CPS AND ANDY WYNN FROM CONSTELLATION.
UM, FOR RMS WE HAVE JOHN SCHATZ FROM LUMINATE, AND THE VICE CHAIR IS DEBBIE MCKEEVER FROM ENCORE.
RETURNING, UH, FROM BEING CHAIR LAST YEAR FOR ROSS, WE HAVE KATIE RICH FROM LUMINATE, UH, WHO WAS VICE CHAIR LAST YEAR, AS WELL AS ALEX MILLER FROM EDF RENEWABLES FOR THE WHOLESALE MARKET SUBCOMMITTEE.
WE HAVE A RETURNING GROUP, UH, ERIC BLAKEY FROM PER ALICE AND JIM LEE FROM CENTERPOINT.
AND THEN THE CREDIT FINANCE SUBGROUP IS, UH, A RETURNING LEADERSHIP GROUP AS WELL.
IT'S BRENDAN SEGER FROM AUSTIN ENERGY AND LORETTO MARTIN FROM RELIANT.
SO FOR OUR MEETING HIGHLIGHTS, UM, AT THE JANUARY MEETING, WE DID UNANIMOUSLY ENDORSE THE TNMP TO PECOS COUNTY TRANSMISSION IMPROVEMENT PROJECT.
UH, WE ENDORSED OPTION ONE AS RECOMMENDED BY ERCOT AT THE JANUARY TAC.
WE ALSO DISCUSSED THE ANNUAL TAC SUBCOMMITTEE, STRUCTURAL AND PROCEDURAL REVIEW.
UH, WE WERE DOING THIS YEARLY JUST KIND OF LOOKING AT ALL THE SUBCOMMITTEES AND WORKING GROUPS AND MAKING SURE THEY WERE RUNNING EFFICIENTLY AND, AND STILL NECESSARY.
UM, WE DID AGREE THAT IT WOULD BE MORE EFFICIENT AND ALSO MORE MEANINGFUL IF WE DID THIS EVERY OTHER YEAR INSTEAD OF YEARLY.
AND SO WE ARE RECOMMENDING THAT THIS ANNUAL REVIEW BE MOVED TO AN EVERY OTHER YEAR SCHEDULE.
AND SO WE WOULD DO IT IN 2025.
UM, ON THE FEBRUARY TECH MEETING, WE VOTED UNANIMOUSLY TO APPROVE THE 2024 TECH GOALS.
AND THEN THE KIND OF ONGOING THEME OF THIS YEAR, I BELIEVE WILL BE THE ATTACK REVIEW OF ANCILLARY SERVICES METHODOLOGY.
WE HAVE A COUPLE THINGS RUNNING IN PARALLEL, AND SO ON THE FEBRUARY TECH MEETING AND IN JANUARY AS WELL, I BELIEVE WE DISCUSSED THE REVIEW OF ANCILLARY SERVICES METHODOLOGY.
SO WE WILL REVISIT THAT 2024 ANCILLARY SERVICE METHODOLOGY ACCORDING TO THE BOARD RECOMMENDATION IN APRIL.
AND THEN WE WILL BEGIN REVIEW OF THE 2025 ANCILLARY SERVICES METHODOLOGY THAT THAT WILL GO TO THE COMMISSION THIS YEAR.
SO WE'LL BEGIN THAT REVIEW IN JUNE IN ORDER TO GET ALL OUR INPUT IN.
AND HERE IS, UH, THE, THE LIST OF THE 2024 GOALS ON THESE, THESE TWO SLIDES.
AND UNLESS THERE ARE ANY OTHER QUESTIONS OR ANY QUESTIONS, THANK YOU, CAITLYN.
ANY QUESTIONS, COMMENTS? THANK YOU VERY MUCH.
[9. Finance and Audit (F&A) Committee Report]
RIGHT.NEXT WE HAVE THE COMMITTEE REPORTS.
UH, FIRST BILL WILL PRESENT AGENDA ITEM NINE, FINANCE AND AUDIT COMMITTEE REPORT, WHICH HAS THREE ASSOCIATED VOTING ITEMS. BILL, PERHAPS WE CAN TAKE ALL THREE ITEMS UP AS ONE MOTION AND VOTE WHEN YOU'RE DONE.
OKAY, THANK YOU, MR. CHAIRMAN.
UH, LET ME START WITH THE VOTING ITEMS FIRST.
UH, THE COMMITTEE MEMBERS VOTED TO RECOMMEND BOARD APPROVAL OF THREE ITEMS, UH, WHICH ARE 9.1, 9.2, AND 9.3 ON THE AGENDA.
UH, THE FIRST ONE, 9.1 HAS TO DO WITH, UH, THE COMMITTEE CHARTER, THE FINANCE AUDIT
[00:45:01]
COMMITTEE CHARTER.WE HAD SOME MINOR CHANGES THAT WE PROPOSED, UH, TO UPDATE THE CHARTER FOR EFFICIENCY.
UH, THE SECOND ONE IN 9.2 IS A FINANCIAL CORPORATE STANDARD.
WE HAD MINOR REVISIONS, UH, TO UPDATE OFFICER TITLES AND TO MAKE OTHER MINOR UPDATES.
UH, THIRDLY, THE INVESTMENT CORPORATE STANDARD, WHICH IS AGENDA ITEM 9.3.
WE HAD, UH, MINOR REVISIONS TO UPDATE OUR CURRENT OFFICER TITLES IN THE ORGANIZATION.
SO ON BEHALF OF THE FINANCE AND AUDIT COMMITTEE, I MOVE APPROVAL OF THESE THREE ITEMS AS AMENDED AND APPROVED DURING THE F AND A COMMITTEE MEETING.
OKAY, BOB, UH, ALL IN FAVOR? AYE.
AND FOR BOARD AWARENESS, UH, WE DISCUSSED IT.
WE TOOK ONE VOTE THAT DOESN'T REQUIRE BOARD ACTION, BUT WHI OF WHICH THE, UH, BOARD MEMBERS SHOULD BE AWARE, AND THAT IS TO APPROVE THE INTERNAL AUDIT DEPARTMENT CHARTER.
UH, THIS IS A REQUIRED PERIODIC REVIEW.
UH, WE HAD NO CHANGES TO THE CHARTER, SO IT WAS APPROVED AS IT EXISTED BEFORE.
OTHER DISCUSSIONS FOR BOARD AWARENESS.
UM, THE, UH, COMMITTEE RECEIVED ITS REGULAR REPORTS, INCLUDING THE 2023 FINANCIAL SUMMARY, UH, AND THE UNAUDITED RESULTS SHOW ERCO 2023 REVENUES NET OF EXPENDITURES TO BE APPROXIMATELY $94 MILLION FAVORABLE TO BUDGET.
THE PRIMARY DRIVER OF OF THAT, OF COURSE, IS BASED ON THE DISCUSSIONS WE'VE HAD REGARDING, UH, MUCH HIGHER THAN ANTICIP THAN FORECAST INTEREST INCOME.
UH, WE ALSO HAD, UH, A VARIANCE DUE TO MARKED TO MARKET, UM, UH, ADJUSTMENTS FOR TREASURY BOND INVESTMENTS.
THOSE WILL NEVER BE REALIZED BECAUSE WE HOLD THEIR INVESTMENTS TO MATURITY.
UH, WE DISCUSSED EARLY 2024 PROJECTIONS AND FAVORABLE VARIANCES ARE ALSO SHOWN IN THAT REGARD.
UH, SO THE, THE BOTTOM LINE IS A SYSTEM ADMIN FEE AS IT'S SET CURRENTLY IS EXPECTED TO BE, UH, APPROPRIATE.
UM, INTEREST INCOME, AGAIN, CONTINUES TO EXCEED OUR ORIGINAL PROJECTIONS.
AND AS THE BOARD HAS DISCUSSED IN THE PAST, THE, THE, UH, FINANCE TEAM AT ERCOT HAS BEEN WORKING HARD TO TRY TO LOCK IN INTEREST RATES TO MEET ITS FORECASTED CASH OBLIGATIONS, UH, FROM THE CRR FUNDS.
UH, AND AS A RESULT OF THAT, HAS PRETTY WELL LOCKED IN THE INTEREST INCOME FORECAST FOR 2024 MOVING FORWARD.
UH, WE DISCUSSED OUR INVESTMENT COMPLIANCE.
ERCOT IS IN, IN COMPLIANCE WITH ALL INVESTMENT REQUIREMENTS AND THE, AS I SAID, THE LONGER TERM INVESTMENT, UM, UH, PROTOCOLS ARE LOCKING IN INTEREST, UH, INCOME FOR 2024 AND BEYOND.
DEBT COMPLIANCE ARE CUTS IN COMPLIANCE WITH ALL DEBT REQUIREMENTS, INCLUDING SECURITIZATION AND THE SERIES M AND N BONDS AND ERCOT STAFF RE REVIEWED THE HIGH LEVEL TIMELINE OF SECURITIZATION, UH, RES WITH RESPECT TO, UH, REFINANCING THE SERIES M BONDS, UH, STAFF AND THE OUTSIDE, UH, COUNSEL AND ADVISOR ARE RECOMMENDING REFINANCING THE BONDS BEFORE JANUARY 31ST, 2025.
WE'LL DISCUSS THAT, UH, FURTHER DETAIL LATER IN THE MEETING.
UH, AND THE F AND A COMMITTEE WILL WILL BE, UH, CONTINUING TAKE THE LEAD ON THIS IN TERMS OF FUTURE, UH, COMMITTEE MEETING DATES AND A AGENDA ITEMS. UH, ONE ITEM THAT I'D HIGHLIGHT FOR THE MEETING THAT WILL BE HELD IN APRIL IS IT WILL MEET WITH OUR EXTERNAL AUDITORS AND VOTE TO ACCEPT THE 2023 AUDIT AND MANAGE STATEMENTS.
AND THAT CONCLUDES BY REPORT, MR. CHAIRMAN.
[10. Human Resources and Governance (HR&G) Committee Report]
HIGG WILL PRESENT AGENDA ITEM 10, THE HR AND G COMMITTEE REPORT, WHICH HAS FIVE ASSOCIATED VOTING ITEMS. AND, UH, SAME HERE.WE WOULD, UH, WE WILL PROBABLY TAKE ALL FIVE UP AS ONE ITEM, ONE VOTE.
UH, AS YOU MENTIONED, THE, THE COMMITTEE TOOK UP FIVE VOTING ITEMS, ITEMS 10.1 AND 10 THROUGH 10.5 ON THE AGENDA.
THE FIRST IS, UH, RECOMMENDATIONS REGARDING THE COMMITTEE CHARTERS TO MINOR MODIFICATIONS TO THE CHARTER, INCLUDING, UH, FOR EFFICIENCIES, PULLING OUTTA THAT CHARTER, THE REVIEW OF THE AUDIT TO THE 401K SAVINGS PLAN, BECAUSE THAT IS COVERED BY THE F AND A COMMITTEE.
UH, THE SECOND ITEM IS, UH, ADMINISTRATIVE, UH, ANNUAL ANNUAL ITEMS THAT WE TAKE UP EVERY YEAR.
THE RECOMMENDATIONS REGARDING THE ELECTION RATIFICATION OF OFFICERS, UH, FOR ERCOT AND THE SPECIAL PURPOSE ENTITIES.
SO THEY, THE COMMITTEE VOTED TO APPROVE THE RECOMMENDATION TO ELECTION OF ERCOT, CEO AND RATIFICATION OF THE OFFICERS, AND WE ALSO VOTED TO RATIFY THE OFFICERS.
THE OF THE TWO, UH, SECURITIZATION RELATED SPES, UH, THE TEXAS ELECTRIC MARKET STABILIZATION FUNDING, MLLC, AND THE TEXAS ELECTRIC MARKET STABILIZATION FUNDING IN LLC.
UH, THIRD, WE, UH, THE, UH, ERCOT 2025 BOARD MEETING
[00:50:01]
AGENDA AND THE ANNUAL MEETING SCHEDULE AND, AND A DATE CHANGE FOR THE ANNUAL MEETING OF THE MEMBERS.SO WE'VE, UH, RECOMMENDED TO APPROVE THE, UH, UH, 2025, UH, ERCOT MEETINGS IS SET FORTH IN THE, UH, MATERIALS.
AND WE HAVE A, A SLIGHT DATE CHANGE FOR THE ANNUAL MEETING OF THE MEMBERS FROM DECEMBER 3RD, 2024 TO DECEMBER 2ND, 2020, 24.
SO WITH THAT, I MOVE TO RECOMMEND APPROVAL ON BEHALF OF THE HR AND G COMMITTEE OF, OF THESE FIVE ITEMS. SECOND.
ALL IN FAVOR? ANY OPPOSED? THAT PASSES.
AND JUST TO BRIEF THE BOARD, WE DID TALK ABOUT A FEW OTHER ITEMS THAT ARE NOT VOTING ITEMS. FIRST, UH, ADAM MARTINEZ PRESENTED THE 2024 OBJECTIVES AND KEY, UH, RESULTS FOR ERCOT.
UH, THE, THERE'S THREE MAIN OBJECTIVES THAT BUILD ON THE 20 20 24, 20 28 STRATEGIC PLAN.
AND THOSE ARE, UH, AT A HIGH LEVEL INDUSTRY LEADERSHIP.
UH, TWO IS ENHANCING THE REGION'S ECONOMIC COMPETITIVENESS.
AND THIRD IS ADVANCING ERCOT AS AN INDUSTRY LEADING EXPERT AND AS AN EMPLOYER OF CHOICE.
UH, SO WE REVIEWED THOSE AND DISCUSSED THOSE OBJECTIVES.
SECOND, WE ALSO REVIEWED THE FORM ETHICS AGREEMENT FOR DIRECTORS AND EMPLOYEES, AND WE DO NOT HAVE RECOMMENDED CHANGES TO THAT.
UH, THIRD, UH, WE DISCUSSED WITH CHAD SEALEY PRESENTING THE BOARD POLICIES AND PROCEDURES HE PRESENTED TO THE COMMITTEE, PROPOSED AMENDMENTS TO THE PROCEDURES, INCLUDING SOME MINOR, UH, CLARIFICATIONS, AND, UH, SOME CLARITY ABOUT, UH, THE, THE, THE PROPOSAL MINUTES TO THE, THE, THE REVISION REQUEST, UH, UH, PROCESS.
AND THOSE WILL BE PRESENTED TO TAC IN MARCH FOR FEEDBACK.
WE THINK THESE ARE MORE CLARIFICATIONS ON THE PROCESS, BUT WE DO, UH, UH, WELCOME TO HEAR WHAT TECH HAS TO SAY THOSE ABOUT THOSE PROPOSED AMENDMENTS, WHICH WILL BE COME BACK TO THE BOARD IN APRIL.
[11. Reliability and Markets (R&M) Committee Report]
BOB FLEXON WILL PRESENT AGENDA ITEM 11 R AND M COMMITTEE REPORT, WHICH HAS FOUR ASSOCIATED VOTING ITEMS AND, UH, GREAT.UH, THE FIRST VOTING ITEM RESULTS FROM THE ANNUAL REVIEW OF THE MARKET CREDIT RISK CORPORATE STANDARD ERCOT STAFF RECOMMENDED THAT WE STRIKE THE REFERENCES TO THE BOARD'S FORMER CREDIT WORK GROUP, WHICH WAS A BOARD SUBGROUP THAT NO LONGER EXISTS.
THAT WAS 11.1, 11.2 IN JANUARY.
THE PC REMANDED NPRR 1186 TO THE BOARD WITH SUGGESTIONS TO REMOVE LANGUAGE THAT WOULD'VE REQUIRED EACH QUALIFIED SCHEDULING ENTITY THAT RELIES ON ENERGY STORAGE RESOURCES TO PROVIDE ANCILLARY SERVICE TO, TO ENSURE THAT THE RESOURCE MAINTAINS SUFFICIENT STATE OF CHARGE TO FULFILL EACH ANCILLARY SERVICE THAT IT PROVIDES.
THE BOARD IS DIRECTED ERCOT STAFF TO FILE A REVISION REQUEST WITH RELATED PENALTIES FOR NON-COMPLIANCE.
THAT REVISION REQUEST NPRR 1209 BOARD PRIORITY STATE OF CHARGE ANCILLARY SERVICE FAILED QUANTITY ALLOCATIONS UNDER NPRR 1149 IS PENDING AT THE PROTOCOL REVISION SUBCOMMITTEE.
SO 11.3 IS THE TEXAS NEW MEXICO POWER TIER ONE PICOS COUNTY TECH TRANSMISSION PROJECT.
COMPLETED THE RPG REVIEW AND WAS ASSESSED BY ERCOT STAFF AND RECEIVED UNANIMOUS ENDORSEMENT BY TAC.
THAT OPTION ONE MEETS THE RELIABILITY REQUIREMENTS FOR THE ERCOT SYSTEM AND WOULD ADDRESS THERMAL OVERLOADS AND VOLTAGE VIOLATIONS IN THE REEVES AND WARD COUNTIES IN THE FAR WEST WEATHER ZONE.
ERCOT STAFF ALSO RECOMMENDED, UH, DESIGNATING THE PROJECT IS CRITICAL TO THE RELIABILITY WHICH ACCELERATES THE ADMINISTRATIVE TIMELINE.
THE LAST ONE IS 11.4, WHICH ERCOT STAFF RECOMMENDS TO CLOSE PHASE ONE OF THE AGGREGATE DISTRIBUTED ENERGY RESOURCE PILOT PROJECT AND MOVE TO PHASE TWO TO FURTHER EVALUATE PARTICIPATION OF THE A ADRS IN THE ERCOT WHOLESALE MARKET AS DESCRIBED IN THE PHASE TWO GOVERNING DOCUMENT INCLUDED IN THE MEETING MATERIALS.
SO THOSE FOUR, UH, PROPOSALS, I UH, MOTION THAT THEY BE APPROVED BY THE BOARD.
ALRIGHT, SO THAT'S A MOTION BY BOB.
ANY OPPOSED? SO OTHER HIGH PROFILE PROJECTS THAT WE SP UH, SPOKE ABOUT ON THE SYSTEM PLANNING AND WEATHERIZATION UPDATE TALKED ABOUT THE RELIABILITY STANDARD, THE VALUE OF LOSS LOAD COST OF NEW ENTRY STUDIES, ALL OF WHICH ARE EXPECTED TO BE COMPLETED IN THE THIRD QUARTER OF 2024.
[00:55:02]
FOR THE REALTIME COOP.CO-OP OPTIMIZATION PLUS BATTERY PROGRAM IS BEGINNING ITS SOFTWARE DEVELOPMENT, THE RTC PLUS B TASK FORCE IS MEETING MONTHLY.
TO ADDRESS, UH, VARIOUS IMPLEMENTATION DETAILS ON OTHER DISCUSSIONS, WE HAD THE IMM PRESENT THEIR MARKET REPORT.
THE SYSTEM'S OPERATION BRIEF INCLUDED AN UPDATE ON THE PROGRESS OF VARIOUS ANCILLARY SERVICE INITIATIVES, INCLUDING CHANGES TO THE ERCOT CONTINGENCY RESERVE, SER SERVICE OR ECRS CHANGES TO THE ANCILLARY SERVICES METHODOLOGY AND A JOINT STUDY FOR THE LEGISLATURE BY THE P-U-C-T-I-M-M AND ERCOT.
ADDITIONAL TOPICS IN THE UPDATE INCLUDED PREPARATIONS TO USE AVAILABLE TOOLS TO BALANCE THE ERCOT SYSTEM DURING A TOTAL SOLAR ECLIPSE, WHICH IS ON MONDAY, APRIL 8TH, 2024, AND REVIEW THE PERFORMANCE OF ERCOT OPERATIONS DURING THE WINTER STORM, HEATHER, WHICH OCCURRED JANUARY 13TH TO 17TH OF 2024.
THE COMMERCIAL OPERATIONS BRIEF INCLUDED MARKET PERFORMANCE DURING WINTER STORM HEATHER, AND AN UPDATE ON POTENTIAL PRICE CORRECTION FROM OPERATING DAYS IN JANUARY FOR CONSIDERATION DURING THE APRIL MEETINGS OF THE R AND M MEETING, UH, AND BOARD.
SO WITH THAT, THAT CONCLUDES MY REPORT.
[12. Technology and Security (T&S) Committee Report]
NEXT JOHN SWENSON WILL PRESENT AGENDA ITEM 12, THE TNS COMMITTEE REPORT, AND I THINK HE DOES NOT HAVE ANY VOTING ITEMS. THANK YOU, PAUL.YEAH, THERE ARE NO ITEMS FOR A VOTE.
THIS IS ALL FOR BOARD AWARENESS.
UM, STAFF PRESENTED THE FOLLOWING BRIEFS TO THE COMMITTEE, A PROJECTS AND TECHNOLOGY UPDATE.
UM, WE RECEIVED A PROJECT UPDATE FROM JP AND HE REVIEWED THE BUDGET FOR THE ROUGHLY 60 ACTIVE PROJECTS.
AND THE COMMITTEE MEMBERS DISCUSSED SOME ADDITIONAL DETAILS THAT THEY'D LIKE TO SEE INCLUDED IN FUTURE REPORTS.
UM, WE ALSO GOT AN UPDATE FROM VENKAT ANI, UH, REGARDING THE UPCOMING ERCOT INNOVATION SUMMIT, UH, WHICH HAS BEEN QUICKLY FILLED UP DUE TO DEMAND AND MAY REQUIRE A LARGER VENUE.
UM, THIS LOOKS LIKE IT'S GOTTEN A GREAT RECEPTION FROM THE AUDIENCE AND WE'VE GOT OVER 250 PEOPLE NOW WANTING TO ATTEND, UH, WHICH EXCEEDS THE CAPACITY OF THIS ROOM.
SO WE'RE HAVING TO FIGURE OUT HOW TO MAKE IT BOTH VIRTUAL AND IN PERSON.
UM, FOLLOWING ON WHAT BOB SAID, UH, EVERY MEETING WE LOOK AT, UH, REALTIME CO OPTIMIZATION AND THE IMPLEMENTATION PLAN.
UM, WE'RE STILL IN THE PLANNING PHASE OF THIS, SO THE, THE MAJORITY OF THE EFFORTS EXPENDED SO FAR IS SORT OF AROUND THE PROJECT INITIATION PROJECT PLANNING.
UM, BUT WE'LL CONTINUE TO GET UPDATES AS WE GO THROUGH AND LOOK AT THE VARIOUS MILESTONES.
UH, I WOULD JUST HIGHLIGHT FOR THE, TO THE BOARD THAT THE LONG POLE IN THE TENT HERE, IT LOOKS LIKE IT'S LIKELY GOING TO BE ON THE PART OF THE MEMBERS 'CAUSE IT WILL REQUIRE CHANGES TO THEIR SOFTWARE TO RESPOND WHEN WE SEND THEM NEW SIGNALS, UH, TO CO OPTIMIZE THE NETWORK.
SO THAT'S SOMETHING THAT WE'RE WORKING ON NOW WITH TAC AND WITH OTHERS TO MAKE SURE THAT THEY'RE AWARE OF THE IMPLICATIONS.
AND THEN THE LAST UPDATE WAS ON SECURITY WITH BETTY AND SHE PROVIDED AN UPDATE ON THE FBI INFRA REGARD MEETING THAT WAS HOSTED HERE ON FEBRUARY 7TH.
AND THAT CONCLUDES MY REMARKS.
[13. 2023 Internal Revenue Service Form 990 Questionnaire]
SEAN TAYLOR WILL PRESENT AGENDA ITEM 13, UH, ON THE, UH, IRS FORM NINE 90 QUESTIONNAIRE.YES, THIS IS YOUR ANNUAL REMINDER FROM ME THAT TAX DAY IS RAPIDLY APPROACHING ERCOT BEHALF.
THAT MEANS THAT WE ARE IN PROCESS OF PREPARING OUR 2023 FORM NINE 90 INFORMATIONAL TAX RETURN.
IT'S A REMINDER THAT WE'LL BECOME A PUBLICLY AVAILABLE DOCUMENT.
IT CONTAINS A HIGH LEVEL OF DETAIL OF ERCOT OPERATIONS AND GOVERNANCE.
IN ORDER TO MAKE SURE THAT WE GATHER ALL THE INFORMATION WE NEED TO COMPLETE THAT ACCURATELY, WE WILL BE DISTRIBUTING A QUESTIONNAIRE TO EVERYONE WHO IS A BOARD MEMBER IN 2023.
WE ASK THAT YOU COMPLETE THAT AND RETURN IT TO US PRIOR TO OUR NEXT BOARD MEETING IN APRIL.
IF YOU HAVE ANY QUESTIONS, PLEASE FEEL FREE TO CONTACT JOHN LEVINE OR MYSELF.
UM, THE LAST ITEM BEFORE WE MOVE INTO EXECUTIVE SESSION IS AGENDA ITEM 14, OTHER BUSINESS.
WOULD ANY BOARD MEMBER LIKE TO RAISE ANY OTHER BUSINESS? OKAY.
[Convene Executive Session]
THIS TIME, THE BOARD WILL ADJOURN GENERAL SESSION AND CONVENE AN EXECUTIVE SESSION.THERE ARE THREE VOTING ITEMS BEING DISCUSSED IN EXECUTIVE SESSION.
SO GENERAL SESSION WILL RECONVENE AFTER THE CONCLUSION OF EXECUTIVE SESSION.
GENERAL SESSION IS NOW RECESS AND THE
[01:00:01]
WEBCAST WILL BE CONCLUDED.UM, WE'LL TAKE A FIVE MINUTE BREAK BEFORE CONVENING AN EXECUTIVE SESSION.
UH, CHAIRMAN GLEASON, THIS MEETING OF THE PUBLIC UTILITY COMMISSION OF TEXAS STANDS IN RECESS.
[Reconvene General Session]
GOOD AFTERNOON.THIS IS PAUL FOSTER ERCOT, BOARD CHAIR.
THE GENERAL SESSION OF THIS MEETING IS NOW RECONVENED.
BEFORE WE MOVE ON TO OUR BUSINESS, I'D LIKE TO ASK PUC CHAIR THOMAS GLEASON IF HE WOULD LIKE TO RECONVENE THE PUC OPEN MEETING.
[15. Vote on Matters from Executive Session]
HAVE THREE VOTING ITEMS FROM EXECUTIVE SESSION.I WILL ENTERTAIN A MOTION TO APPROVE THE THREE MISMANAGEMENT MATTERS DISCUSSED DURING EXECUTIVE SESSION UNDER AGENDA ITEMS ES 2.1, S TWO, 1.1, AND ES 2.22.
MR. CHAIRMAN, I MOVE APPROVAL OF THE RISK MANAGEMENT AND CONTRACT ITEMS DISCUSSED DURING EXECUTIVE SESSION.
THIS MEETING OF ERCO BOARD OF DIRECTORS IS NOW ADJOURNED.