[00:00:04]
[1. Antitrust Admonition]
ANTITRUST ADMONITION IS ON THE SCREEN TO AVOID RAISING CONCERNS ABOUT ANTITRUST LIABILITY.PARTICIPANTS IN ERCOT ACTIVITIES SHOULD REFRAIN FROM PROPOSING ANY ACTION OR MEASURE THAT WOULD EXCEED OR COTS AUTHORITY UNDER FEDERAL OR STATE LAW.
AND THERE IS MORE INFORMATION ON THE ERCOT WEBSITE.
THIS IS OUR NOVEMBER REGULAR TECH MEETING.
UM, BUT I THINK GIVEN OUR AGENDA AND, UH, GIVEN THAT ERIC GOFF IS NOT HERE TODAY, I THINK WE'LL BE ABLE TO FINISH, UH, IN A TIMELY FASHION.
UM, I HAVE A 4:00 PM I, I DEBATED WHETHER I SHOULD MAKE THAT JOKE OR NOT.
SO THANK YOU FOR THE RESPONSE.
SO IF WE'RE GOING, COLIN WILL TAKE OVER.
UM, BUT I, I THINK SINCE WE DID THE, THE LATE START, WE'LL BREAK MAYBE FOR 10 MINUTES AND DO A WORKING LUNCH.
I WILL PUT CALLIE'S EMAIL ADDRESS IN THE CHAT IF YOU ARE, ARE NOT ON THE LUNCH LIST.
UH, PLEASE REACH OUT TO HER FOR ALT REPS AND PROXIES.
UM, IN THE RESIDENTIAL, IN THE CONSUMER SEGMENT, RESIDENTIAL CONSUMER, UM, ERIC GOFF HAS GIVEN HIS PROXY TO NAVA IN THE CO-OP SEGMENT.
UH, BLAKE HOLT HAS GIVEN HIS ALT REP TO EMILY JOLLY.
IT SAYS AT 1130, BUT I SEE THAT EMILY JOLLY IS, IS HERE.
UM, WE, THE FIRST ORDER OF BUSINESS I WANT TO GET TO IS, IT'S OUR LAST TAC MEETING OF THE YEAR.
UH, COLIN IS NOT RETURNING TO TAC NEXT YEAR, SO I WANTED TO SAY THANK YOU TO HIM.
UH, I REALLY HAVE ENJOYED WORKING WITH YOU.
UH, WE DIDN'T KNOW EACH OTHER MUCH BEFORE WE DID LEADERSHIP TOGETHER.
WE HAVE A LOT MORE SIMILARITIES THAN I EXPECTED, UH, PARTICULARLY COMPETITIVENESS, MAYBE SOME STUBBORNNESS.
AND I, I LEARNED A LOT FROM COLIN.
HE, HE BROUGHT AN EXPANSIVE, KIND OF WIDE RANGE OF KNOWLEDGE TO TECH LEADERSHIP, NOT JUST THE ENGINEERING SIDE.
HE KNOWS A LOT ABOUT THE, THE MARKET SIDE AND THE, THE SYSTEMS AND EVERYTHING.
AND I THINK HAVING HIM HERE TO ADD HIS PERSPECTIVE HAS, HAS BEEN VERY VALUABLE.
UNFORTUNATELY, HE'S GONNA STEP BACK FOR A BIT TO, TO WORK TO FOCUS ON THE TRANSMISSION WORK.
SO THIS MONTH'S COOKIES ARE TRANSMISSION COOKIES IN, IN HONOR OF COLIN.
THEY ALSO HAVE A TIKTOK JOKE THAT I'M HOPING HIS TEENAGE DAUGHTERS WILL EXPLAIN TO HIM.
SO, UH, PLEASE ENJOY THE, THE TRANSMISSION COOKIES AS I'M CALLING THEM.
AND, AND PLEASE, UH, THANK COLIN FOR HIS LEADERSHIP CLAP.
YOU WANT ME MAKE A SPEECH? YEAH, I'VE GOTTA WAIT TILL THE MEMBERS MEETING FOR MY SPEECH NOW.
UM, I'VE NEVER BEEN HONORED BY PERSONALIZED COOKIES AND I WILL NEED TO CONSULT WITH MY TEENAGE DAUGHTERS FOR THE, THE TIKTOK INTERPRETATION.
UM, APPRECIATE EVERYBODY'S CONFIDENCE IN BEING ABLE TO BE SEATED TO THIS IN THE TABLE.
UM, IT'S BEEN A, BEEN A GREAT YEAR.
LEARNED A LOT, REALLY ENJOYED WORKING WITH YOU, CAITLYN.
UM, WE ARE SIMILAR IN MANY WAYS.
I WON'T BE COMPLETELY STEPPING AWAY, BUT I'LL STILL BE AROUND, UH, A BIT, BUT JUST NOT AS MUCH AS, AS I AM RIGHT NOW.
SO, ANYWAYS, I REALLY APPRECIATE IT.
I'LL, I'LL REMIND YOU, I'LL KEEP JOKING ON PEOPLE, BUT CLIFF TOLD US HE WOULD BE RETURNING A LOT OF TIMES AND WE'VE YET TO SEE HIM.
SO I, I HOPE YOU DO A BETTER JOB OF THAT.
UM, FOR THE, THE SECOND ORDER OF BUSINESS.
UH, RICHARD, DO WE HAVE A NOVEMBER THEME? UH, YES, WE DO IT.
SO I WANT PEOPLE TO THINK BROADLY.
UH, THANKSGIVING, UH, IS THAT THEME.
AND SO YOU, YOU HAVE THE, A WIDE OPEN VARIETY OF THINGS FROM THE GRATITUDE ITSELF, UH, AND YOUR GRATITUDE FOR ERIC NOT BEING HERE TODAY, UM, UH, TO, UH, FOOD ITEMS AND, AND FOLKS NOT CUTTING IN LINE, WAITING THEIR TURN, UH, TO GET TO THE DESSERT TABLE, UH, AS WELL AS, YOU KNOW, UH, PILGRIM'S, NATIVE AMERICANS, BOATS, SAILING SHIPS, YOU KNOW, ET CETERA.
SO, WORKER, SO YOU'RE NOT GONNA BE A TURKEY TODAY, YOU NO, EXACTLY.
[2. Stakeholder Process and Communication Discussion]
FIRST SERIOUS ITEM OF BUSINESS IS CONTINUING OUR STAKEHOLDER PROCESS AND COMMUNICATIONS DISCUSSION.I THINK WE ARE GOING TO TAKE, UH, AGENDA ITEMS TWO AND THREE, I BELIEVE UP, UP TOGETHER THE, THE PROCESS AND COMMUNICATION DISCUSSION AND THE ER ERCOT BOARD STAKEHOLDER ENGAGEMENT UPDATE.
WE HAVE IMPLEMENTED A NUMBER OF PRACTICES TO INCREASE OUR STAKEHOLDER COMMUNICATIONS WITH THE PUC AND THE BOARD, INCLUDING
[00:05:01]
HA HAVING COMMISSIONED STAFF AT THE, THE TABLE.WE HAVE BARKSDALE HERE FOR, I THINK, THE, THE THIRD TIME.
UM, ERCOT HAS ADDED SOME INFORMATION FOR REVISION REQUESTS WITH OPPOSING VOTES.
WE HAVE ADDED MUCH MORE SUBSTANTIVE INFORMATION TO, TO OUR TECH REPORTS, UM, TO R AND M AND TO THE BOARD.
WE STARTED SOME TECH LEADERSHIP BRIEFINGS WITH, WITH R AND M LEADERSHIP.
AND SO THOSE HAVE BEEN REALLY GOOD THINGS, UH, REGARDING STAKEHOLDER PROCESS REFORM.
WE HAD A THOUGHTFUL DISCUSSION IN SEPTEMBER.
I, I THINK THERE'S A NUMBER OF ITEMS THAT WE DISCUSSED IT COULD BE WORTH PURSUING.
UM, AND WE DO HAVE THE ERCOT BOARD CHAIRMAN BILL FLORES HERE TODAY TO BE PART OF THIS DISCUSSION AND, AND THE BOARD STAKEHOLDER ENGAGEMENT DISCUSSION.
BILL, WOULD YOU LIKE TO SAY A FEW WORDS OR JUST HAVE US CARRY ON WITH DISCUSSION? SURE.
UH, WORK WITH YOU TO IMPROVE THE PROTOCOL PROCESS FROM INITIATION, UH, THROUGH TAC THROUGH THE BOARD, THROUGH THE PUC THROUGH TO IMPLEMENTATION.
SO WE'RE GONNA BE WORKING WITH YOU.
I MEAN, YOU'VE ALREADY DONE SOME OF THIS, YOU'VE STARTED ON IT YOURSELVES, AND WE'RE GONNA, UH, BE PART OF THAT.
WE APPRECIATE BARKSDALE BEING HERE AS WELL, UH, TO PARTICIPATE, TO HAVE A CLOSER INTERFACE BETWEEN WHAT YOU DO AND THE PUCS ULTIMATE, UH, POLICY MAKING AUTHORITY MOVING FORWARD.
SO I JUST WANTED TO SHARE THAT I'M GONNA SPEND MOST OF MY TIME LISTENING TODAY.
UM, IF THERE'S ANY EVER A TIME THAT YOU NEED TO REACH OUT TO ME, I'M ACCESSIBLE.
UM, THE FOLKS AT ERCOT WILL SHARE MY MOBILE NUMBER WITH YOU, UH, IF THAT'S, UH, HELPFUL TO YOU.
BUT AGAIN, WE'RE GONNA TRY TO BE MORE ENGAGED WITH YOU, UH, SO THAT WE HAVE A SMOOTHER, UH, BETTER FUNCTIONING PROCESS AND A BOARD THAT, QUITE FRANKLY, A BOARD THAT IS, UH, IT REALLY UNDERSTANDS WHAT, WHAT YOUR PART IS IN TERMS OF THE OPERATION OF THE TEXAS GRID.
SO THANKS AGAIN, CAITLIN, AND I LOOK FORWARD TO LISTENING.
AND I WISH I, I'VE GOT ALL KINDS OF COOL THINGS I COULD SAY ABOUT ERIC, BUT I'LL KEEP MY MOUTH CLOSE NOW.
SO DO WE, IS THERE ANY DISCUSSION WE WANT TO HAVE NOW OR DO WE WANNA SEE THE ENGAGEMENT PRESENTATION? WHY DON'T WE GO AHEAD WITH THAT PRESENTATION? ANN, OR, OR REBECCA? CORY, ARE YOU OKAY RUNNING THE DECK? YEAH, THANK YOU.
I KNOW BILL GAVE A PRETTY GOOD UPDATE ON THE BOARD'S APPRECIATION FOR THE STAKEHOLDER ENGAGEMENT SESSIONS WE'VE HAD THIS YEAR, AND THAT IS SOMETHING WE'RE BUILDING OFF ON 2025.
I DON'T UNDERSTAND THE LOGIC OF LIKE, WELL BUDGET ONCE WE GET THIS BIG THING PAID OFF.
I DON'T HAVE MONEY TO BUDGET RIGHT NOW.
SO, UM, WE'RE GONNA START THAT AGAIN IN 2025.
I APPRECIATE EVERYBODY WHO'S DONE THAT.
WE HAVE THE LAST GROUP OF COMPANIES THAT ARE MEETING BEFORE THE DECEMBER BOARD FOR 2025.
UM, THE GOAL IS TO HAVE, UM, TAC PRIORITIZE NEW MEMBERS WHO MAY BE MEMBERS OF TAC AFTER ELECTIONS, AND THEN WORK THROUGH SOME OF THE SUBCOMMITTEES AND SEE IF THERE'S COMPANIES THAT WEREN'T COVERED IN TAC THAT PROVIDE THAT OPPORTUNITY.
AND THEN WE'RE LOOKING AT EXPANDING, UM, THIS INITIATIVE IN 2025 FOR ADDITIONAL OPPORTUNITIES FOR STARTING WITH TAC LEADERSHIP TO PROVIDE, UM, BRIEFINGS TO THE BOARD AND RM LEADERSHIP.
SO FOR 2025, UM, THE GOAL HAS REALLY, THE COMPANIES THAT HAVE GONE A LOT OF TIMES HAVE BEEN SPENT ON JUST GETTING TO KNOW YOU AND MEET AND GREETS.
WE'RE GOING TO REALLY HOPE TO STRENGTHEN DISCUSSION TOWARDS STRATEGIC OBJECTIVES AND CORE POLICY ISSUES.
SO I THINK THAT KIND OF OPENS UP,
[00:10:01]
UM, EXPECTATIONS ON THESE MEETINGS AND THEN KIND OF FACILITATE THAT.UM, JUST FOR PUBLIC AWARENESS, WE DO PROVIDE A PACKET OF ALL THE INFORMATION PROVIDED WITH BOARD MATERIALS IN ADVANCE OF THE MEETINGS.
SO WE ARE REQUIRING THE BIOS, THE FACT SHEETS, THE PRESENTATIONS, THOSE ARE ALL REQUIRED MATERIALS IN ADVANCE SO WE CAN, YOU KNOW, BEST UTILIZE THAT TIME AND HAVE EVERYBODY PREPARED TO WALK IN THE ROOM.
SO STARTING WITH T WE'RE GONNA BE SENDING A PARTICIPATION SURVEY NEXT MONTH.
SO, UM, AFFIRMING INTEREST, AGAIN, WE'RE GONNA TRY TO PRIORITIZE COMPANIES THAT HAVE NOT HAD THIS OPPORTUNITY YET AND TRY TO SCHEDULE EVERYONE FOR JANUARY BECAUSE WE'RE EXPANDING THE SCOPE.
WE ARE GONNA LOOK FOR THE IN-PERSON, BUT ALSO VIRTUAL FORMS THROUGH THE YEAR.
SO, UM, IF IN-PERSON VERSUS VIRTUAL, THERE'S MORE PEOPLE YOU CAN GET IN FOR THAT MEETING, THAT'LL BE AN OPTION ON THE SURVEY AS WELL.
UM, DOES ANYBODY HAVE FEEDBACK THEY'D LIKE TO SHARE? I KNOW BILL'S HERE AS WELL FOR THESE SESSIONS OR, UM, THINGS YOU THINK ARE CAUGHT TO DO A BETTER JOB OF FACILITATING THESE OPPORTUNITIES FOR THE YEAR.
OKAY, I SEE NABA, I THINK SHE CAN FINISH FIRST.
SO WE'RE GOING TO THE KIND OF NEXT PHASE OF THE SLIDE.
SO IF THERE'S SOMETHING ABOUT SPECIFICALLY THE, THE ENGAGEMENT SESSIONS WE PO UH, HOSTED IN 2024 AND MOVING TO 2025, THIS WOULD BE THE, THE PLACE.
AND I SEE BILL'S CARD UP AS WELL.
YEAH, SO, SO GO AHEAD NOW, BUT I THINK SHE, SHE IS FINISHED.
THANK YOU REBECCA, FOR THIS, UM, EXPLANATION.
SO ONE THING I DIDN'T UNDERSTAND, UH, FOR THIS BOARD STAKEHOLDER ENGAGEMENT, I KNOW IT IS, UM, IT'S A GREAT TOPIC, BUT, UH, I DIDN'T UNDERSTAND THE PROCESS.
WHERE DOES THE REQUEST COMING FROM? SHOULD THE STAKEHOLDER NEED TO, UH, REQUEST FOR THIS MEETING OR IS COMING FROM THE BOARD OR IT'S COMING FROM THE
SO THE GOAL IS REALLY TO HAVE OPPORTUNITIES FOR SPECIFICALLY THE INDEPENDENT DIRECTORS.
I KNOW THAT'S, UM, WE'VE INCLUDED SOME OF THE OTHERS DURING DIFFERENT CYCLES TO HAVE AN OPPORTUNITY TO MEET WITH COMPANIES, UNDERSTAND WHAT'S IMPORTANT TO THEM, AND REALLY START A BROADER DIALOGUE WITH THE INDEPENDENT DIRECTORS.
SO ONE SUPPLEMENT QUESTION ON THAT.
SO IF, IF I NEED TO SPEAK, UH, OR SET UP A MEETING WITH A BOARD, A BOARD MEMBERS, SO WHO I NEED TO SEND THE EMAIL, SO I DIDN'T SEE THE WHOLE THOSE DETAILS IN, IN YOUR, UH, PAGE.
THESE ARE THE FACILITATED SESSIONS SPECIFICALLY FOR THE TIME AND BEFORE THE GENERAL SESSION OF THE BOARD MEETINGS.
SO I MEAN, WE ARE REQUESTING THAT CONTACT INFORMATION AND BIO INFORMATION, THOSE ARE INCLUDED IN THE PACKET.
SO BOARD DIRECTORS HAVE COMMUNICATION INFORMATION FOR THE COMPANIES THEY MEET WITH.
AND IF, I MEAN, IF YOU HAVE A REQUEST FOR A SPECIFIC BOARD MEMBER, YOU CAN ALWAYS SEND IT TO MYSELF OR, OR CO AND WE CAN HELP FACILITATE TO THE EXTENT THERE'S A MEETING OPPORTUNITY.
SO IN 2024, SO HOW MANY, I THINK THERE ARE SEVEN GROUP IN THE TECH, RIGHT? SO HOW MANY TECH MEMBERS GET CHANCE TO SPEAK WITH A BOARD MEMBERS? DO YOU HAVE ANY NUMBER? SO THE GOAL THIS YEAR, AND WE SHOULD MEET IT AFTER THE FINAL SET OF SESSIONS, WAS ALL OF THE MEMBER COMPANIES.
I KNOW THE CONSUMER SEGMENTS WERE WORKING ON OPPORTUNITY BECAUSE, UM, THERE IS A BOARD SEAT AFFILIATED WITH THAT, WITH THE PUBLIC COUNCIL THAT I KNOW IS OPEN RIGHT NOW.
BUT WE WILL BE MOVING THROUGH ALL OF THE TAC MEMBERS AFTER THE DECEMBER WAR.
SO, UH, JUST OUR PERSPECTIVE, WE REALLY APPRECIATED THE OPPORTUNITY TO MEET WITH BOARD MEMBERS.
UM, IT'S GOOD TO HEAR THAT WE'RE EXPANDING KIND OF BEYOND THE, THE BETA PHASE.
I KNOW THE, THE FIRST ITERATION OF THIS PROCESS WAS SOMETHING WE WERE JUST TRYING TO TEST OUT.
UH, WE OBVIOUSLY WOULD GREATLY APPRECIATE, UM, MORE TIME WITH MORE BOARD MEMBERS, UM, BUT UNDERSTAND THAT, UH, THERE'S TIME CONSTRAINTS THERE ON, ON BOTH SIDES.
UH, SO I APPRECIATE THE STRUCTURE AS WELL.
[00:15:01]
A MORE KIND OF FORMAL AGENDA, UM, ON COMPANY BACKGROUND BIOS, THINGS LIKE THAT.UH, I GUESS WE WOULD JUST, OUR FEEDBACK IS WE WOULD APPRECIATE MORE OPPORTUNITIES.
PLEASE THINK THAT AS CAN BE EFFICIENTLY DONE.
UH, AND I'M GONNA REPEAT A COMMENT THAT I MADE PRIOR IS A LOT OF TIMES THERE ARE VERY SPECIFIC ISSUES THAT COME UP THAT ARE PROBABLY OUTSIDE OF THE, UH, BOARD MEETING, UM, UH, ENGAGEMENT PROCESS.
AND WE JUST WANNA MAKE SURE IT'S CLEAR.
I'M GLAD CHAIR FLORES IS HERE.
AS THE BOARD MEMBERS KNOW, THEY CAN REACH OUT TO STAKEHOLDERS TO ASK QUESTIONS ON PARTICULAR ISSUES, PARTICULARLY IF WE HAD FILED COMMENTS, WE WOULD LOVE TO BE ABLE TO, UM, SIT DOWN AND, UH, MEET WITH BOARD MEMBERS IF THEY HAVE DIRECT QUESTIONS FOR STAKEHOLDERS THAT ARE INVOLVED IN PARTICULAR ISSUES.
AND I THINK THAT'S A REALLY GOOD TRANSITION TO THE NEXT SLIDE, IS LOOKING TOWARDS EXPANDING THIS, UM, TO 2025.
I THINK ONE OF THE, UM, ONE OF THE DISCUSSION POINTS FROM THE STAKEHOLDER PROCESS IMPROVEMENT DISCUSSIONS HAS REALLY BEEN THAT STAKEHOLDERS AND TAC WANT THE OPPORTUNITY TO ADDRESS THEIR ISSUES AT THE BOARD LEVEL DIRECT AND NOT HAVE ERCOT KIND OF REPRESENT ISSUES.
AND SO WE'RE WORKING WITH TAC LEADERSHIP.
I KNOW CAITLYN AND COLIN HAD A BRIEFING WITH BOB BEFORE THE LAST BRIEFING, UM, BEFORE THE LAST BOARD MEETINGS AS R AND M CHAIR, BUT WORKING TO HAVE REGULARLY SCHEDULED BRIEFING, UM, OPPORTUNITIES WITH THE BOARD CHAIR AND VICE CHAIR AND R AND M COMMITTEE CHAIR.
AND SO I THINK PART OF THAT WILL BE IDENTIFYING ADDITIONAL STAKEHOLDERS.
IT COULD BE SUBCOMMITTEE LEADERSHIP, IF IT'S AN ISSUE IN FRONT OF A SPECIFIC SUBCOMMITTEE.
IT COULD BE MARKET SEPARATE REPRESENTATION IF A SPECIFIC ISSUE THAT CERTAIN COMPANIES OR CERTAIN SEGMENTS FEEL STRONGLY ABOUT, BUT IDENTIFYING OTHER PEOPLE TO BRING IN THIS, UM, THOSE BRIEFINGS WILL ADD VALUE OR ADDITIONAL PERSPECTIVES ON HIGH IMPACT PROJECTS AND REVISION REQUESTS.
SO THAT IS SOMETHING THAT WE'RE WORKING WITH TAC LEADERSHIP TO FACILITATE FOR NEXT YEAR AND TO HAVE THOSE SESSIONS AND BRING IN OTHER VOICES AS NEEDED.
SO WE HAVE OUR SESSION PLANNED FOR, UH, DECEMBER.
SO WE DIDN'T HAVE IT, UH, YET, BUT WE WANTED TO, UH, THANK, UM, YOU GUYS FOR ARRANGING IT FOR THE, OR
THAT'S SOME ONE OF THE THINGS THAT WE REQUESTED.
UH, BEING A MULTINATIONAL COMPANY, HAVING EXECUTIVES OUT OF COUNTRY, IT HELPS TO HAVE, UH, THAT VIRTUAL PRESENCE AND, UH, SUPPORT HAVING THESE KIND OF, UH, MEETINGS GOING FORWARD.
AND I, I, THE LAST PART OF THIS, AGAIN, THE GOAL IS KIND OF PROVIDE OPPORTUNITIES, NOT JUST WHEN THINGS ARE IN FRONT OF THE BOARD, BUT AS THEY'RE DEVELOPING AND WE'VE SEEN THINGS SHIFT AND EVOLVE.
UM, YOU'LL SEE THIS WITH CHANGES TO PRESENTATIONS, UM, FROM THE ERCOT AND WORKING WITH TECH LEADERSHIP, UM, TO KIND OF START TEEING THOSE UP EARLIER IN THE PROCESS AND TALK ABOUT THE BIG PROJECTS AND TIMELINES AND EXPECTATIONS, UM, SPECIFICALLY AT R AND M, BUT STARTING THAT DISCUSSION EARLIER SO THERE'S A MORE INFORMED, UM, PROCESS AND HAVE THOSE, AGAIN, OPPORTUNITIES FOR STAKEHOLDERS, BUT REALLY GET THE BOARD THINKING ABOUT THESE THINGS FROM THE FRONT END AND UNDERSTANDING, UM, THE PIECES OF THE PUZZLE AND WHAT'S HAPPENING.
SO WE'RE WORKING WITH, UM, COMMITTEE LEADERSHIP AT THE BOARD LEVEL AND TAC TO FIGURE OUT, UM, WHAT THAT LOOKS LIKE FOR MATERIALS, HOW WE FOCUS COMMUNICATIONS ON THAT KEY BACKGROUND INFORMATION.
UM, I KNOW OUR CAUSE PRESENTATIONS REALLY FOCUS ON KEY TAKEAWAYS AND DECISION POINTS, BUT, BUT REALLY HIGHLIGHT THOSE ON BOTH SIDES.
SO AGAIN, THE, THE BIG PICTURE IS WE'RE CONTINUING TO WORK ON FORUMS TO HAVE STAKEHOLDER AND BOARD ENGAGEMENT AND GET THEM PERSPECTIVE ON HIGH IMPACT PROJECTS, UM, AT THE BOARD AND AS THEY DEVELOP THROUGH THE PROCESS.
WE HAVE, UH, NED AND THEN EMILY.
NED, ARE YOU ON THE PHONE? I AM.
WELL, UM, FIRST OF ALL, I WANTED TO SAY THANK YOU, REBECCA, FOR, FOR PRESENTING THIS.
THIS IS, UH, THIS IS GOOD INFORMATION AND, AND, AND WANTED TO WELCOME BILL, WHICH, WHICH WAS THERE IN PERSON TO SAY IT.
BUT, UM, I, I THINK IT'S, IT'S GREAT THAT YOU'RE, THAT YOU'RE THERE AT TECH AND, UH, WE'RE CERTAINLY WELCOME THE ADDITIONAL ENGAGEMENT THAT, THAT Y'ALL ARE ROLLING OUT.
I THOUGHT BILL BARNES PUT, UM, YOU BE HAD SOME REALLY GOOD THOUGHTS AND SO WANTED TO ECHO THAT.
AND, UM, JUST THANK YOU FOR STARTING THIS PROCESS.
I THOUGHT WE HAD SOME REALLY GOOD CONVERSATIONS WHEN WE HAD OUR ENGAGEMENT SESSIONS AND, UH, CERTAINLY LOOK FORWARD TO WAYS TO EXPAND AND, AND IMPROVE ON THOSE, UH, FOR, FOR THE BOARD'S BENEFIT.
UM, I WANNA ECHO ALL THE COMMENTS YOU'VE HEARD.
[00:20:01]
REALLY VALUABLE.WE APPRECIATED THE TIME, UM, AND THE OPPORTUNITY TO BRING FORWARD SOME OF THE ISSUES.
IT, IT WORKED OUT, I THINK, IN OUR FAVOR WITH, YOU KNOW, SOME OF THE ISSUES THAT LCRA WAS FOCUSED ON IN THE STAKEHOLDER PROCESS AT THE MOMENT ALIGNED PRETTY WELL WITH THE TIMING OF OUR MEETINGS.
UM, REBECCA, YOU ALLUDED TO A PROCESS WHERE THAT MAY NOT ALWAYS BE THE CASE.
AND SO HAVING THESE OTHER AVENUES TO COMMUNICATE STAKEHOLDER FEEDBACK TO THE BOARD ON ISSUES, UH, IN FRONT OF ERCOT, WE'RE VERY SUPPORTIVE.
UM, ONE THING I WANT TO THINK ABOUT AND BETTER UNDERSTAND AND ENGAGE WITH ERCOT STAFF ON IS CONSIDERING HOW THE FRAMEWORK THAT THAT'S BEING DEVELOPED FOR EVALUATING, UM, REVISION REQUESTS AND IMPACTS FROM, FROM ERCOT PERSPECTIVE IS INTEGRATED INTO THIS PROCESS THAT Y'ALL ARE LOOKING AT.
UM, WE APPRECIATE Y'ALL TAKING ON THAT, THAT INITIATIVE.
I KNOW YOU'VE PRESENTED ON IT NOW A NUMBER OF TIMES, UM, AND WE JUST WANT TO MAKE SURE THAT THAT FEEDBACK, UM, BACK AND FORTH IS, IS THOUGHT ABOUT AS WE'RE MOVING FORWARD AND FORMALIZING THAT EVALUATION OF PRIORITY REVISION REQUESTS THAT ARE CAUGHT.
IF WE COULD MAKE THAT REQUEST AND FOLLOW UP.
ANY OTHER COMMENTS, QUESTIONS? OKAY.
AGAIN, I THINK YOU'LL GET A SURVEY AS, UM, THE NEW SLATE OF TALK AS SOON AS WE HAVE THAT.
WE'LL GET A SURVEY IN DECEMBER AND THEN WE'LL BE WORKING WITH, UM, EXISTING TALK LEADERSHIP AND THEN TALK LEADERSHIP FOR 2025 ON STARTING THIS, UM, BRIEFING OPPORTUNITY AND GETTING, YOU KNOW, OTHER COMPANIES AND TEEING UP WHAT THAT AGENDA SHOULD BE FOR STARTING WITH THE FEBRUARY BOARD.
LET'S, UM, SO LET'S MAYBE REVISIT THAT NEXT YEAR AS, AS WE CONTINUE DIALOGUE WITH THE BOARD.
I THINK THAT THEY WILL HAVE SOME IDEAS AS BILL ALLUDED TO, UM, TO, TO GET TO KNOW STAKEHOLDERS BETTER AND, AND ON THE REVISION REQUEST PROCESS AND, AND WE'LL CONTINUE THAT EXPANDED ENGAGEMENT.
[3. Approval of TAC Meeting Minutes (Vote)]
ARE ON TO THE MEETING MINUTES.I AM NOT AWARE OF ANY COMMENTS OR EDITS.
SUSIE, ARE YOU AWARE OF ANYTHING? NO.
SO I WOULD PROPOSE THAT WE PUT APPROVAL OF THE OCTOBER 38TH MEETING MINUTES ON THE COMBO BALLOT UNLESS ANYBODY OBJECTS.
OKAY, COREY, LET'S ADD THAT TO THE COMBO.
UM, SO NOW WE'RE ONTO REVISION REQUEST
[4. Review of Revision Request Summary/ERCOT Market Impact Statement/Opinions]
SUMMARIES OR CO MARKET IMPACT STATEMENTS AND IMM OPINIONS.I WILL TURN IT OVER TO ANN AND THE IMM.
SO WE HAVE 15 REVISION REQUESTS ON THE PACKAGE AGENDA THIS MONTH.
UM, I'LL POINT OUT THE ONES THAT WITH IMPACTS ARE NPR 1239 WITH A 50 TO A HUNDRED K IMPACT 1240 WITH A 40 TO 60 K IMPACT.
AND THEN 1247 HAS A 360 TO FOUR 40 KO AND M.
THAT'S TO ACCOMMODATE FOR TWO FTES THAT, UM, HAVE BEEN INCLUDED IN THE BUDGET ALREADY FOR REASONS FOR REVISION.
WE HAVE FOUR THAT FALL IN THAT REGULATORY CATEGORY, AND THEN 11 ARE OF THE GENERAL SYSTEM PROCESS AND IMPROVEMENTS.
AND ERCOT DOES SUPPORT ALL OF THE REVISION REQUESTS ON THIS AGENDA.
UM, AND THEY HAVE PROVIDED POSITIVE MARKET IMPACT STATEMENTS FOR ALL OF THEM.
FOR THE CREDIT FINANCE SUBGROUP REVIEW, THEY DID NOT FIND ANY CREDIT IMPACTS FOR ANY OF THE NRR.
AND THEN FOR IMM, UM, I THINK MOST ARE NO OPINION EXCEPT FOR 1247.
THEY DO SUPPORT NPR 1180 AND THE ASSOCIATED PGR 1 0 7, THEY CONDITIONALLY SUPPORT.
AND THEN, UH, 1190, THEY DID HAVE A NO OPINION ON THIS, BUT THEY HAVE CHANGED HIS SUPPORT 1190 AND I'LL LET JEFF EXPAND ON ANYTHING HE WANTS TO.
UH, THIS IS JEFF MCDONALD, DIRECTOR OF IMM.
SO I'M HAPPY TO, UH, COVER, I, I THINK THE ONE THAT'S PROBABLY MOST INTERESTING IS THE BIGGER 1 0 7 NPR 1180.
UM, SO I'LL, I'LL COVER THAT LAST BECAUSE THE OTHER TWO ARE FAIRLY SHORT.
UM, YOU KNOW, REGARDING, LET'S SEE, IT'S, UH, NPR 1190, UH, THE OVERRIDE LIMIT PROVISION.
SO WE FELT THAT, UM, THAT IT WAS, UH, FAIR IN A SENSE TO, TO PROVIDE THIS PROVISION IN ORDER TO AVOID HAVING, UM, ENTITIES, UH, OPERATE AT A LOSS, UH, BECAUSE OF A REDUCTION THAT, UH, THAT THEY WEREN'T NECESSARILY RESPONSIBLE FOR.
SO IN CONCEPT, WE SUPPORTED IT.
UM, OUR POSITION DIDN'T GO MUCH, UH, BEYOND THAT REGARDING, UM, NPRR 1247
[00:25:01]
INCORPORATION OF CONGESTION COST SAVINGS TESTS IN ECONOMIC EVALUATION TRANSMISSION PROJECTS.SO, UH, WE DO FEEL THAT MORE INFORMATION IS BETTER WHEN EVALUATING, UH, WHETHER OR NOT THERE'S MERIT IN, UH, BUILDING ADDITIONAL TRANSMISSION AND FELT THAT, UH, IN INCORPORATING CONGESTION COST SAVINGS, YOU KNOW, WITH THE PROVISION THAT, THAT THE ULTIMATE BENEFIT COST ANALYSIS IS SENSIBLE, DOESN'T DOUBLE COUNT, UM, BENEFITS IN ANY WAY, UH, DUE TO THE ADDITION OF THIS, UH, THIS CONSIDERATION.
BUT WE, WE FELT THAT MORE INFORMATION'S BETTER IN MAKING THESE TYPES OF HIGH DOLLAR VALUE DECISIONS.
UH, AND SPEAKING TO, UH, PIGGER 1 0 7 NPR 1180, SO THIS, SO WE DO CONDITIONALLY SUPPORT AND, AND, AND I THINK IT MAKES SENSE JUST CONCEPTUALLY THAT YOU WOULD WANT TO INCLUDE FORECASTED LOAD IN PLANNING ANALYSIS, UM, ESPECIALLY GIVEN THE, THE EFFORT AND DOLLAR VALUE THAT RESULT FROM CONCLUSIONS FROM THE PLANNING ANALYSIS.
ONE OF THE THINGS, AND, AND THE REASON WE PROVIDED CONDITIONAL SUPPORT HERE WAS WE, WE BECAME CONCERNED AT SOME POINT REGARDING SOME OF THE DISCUSSIONS WE'VE HAD ABOUT THE, THE ABILITY OF ERCOT TO DO WITH THE FORECAST DATA THAT THEY RECEIVED FROM THE TRANSMISSION ENTITIES, UH, AS THEY SEE FIT IN A REASONABLE WAY, SO THAT, THAT, SO THE DATA THAT THEY RECEIVE IS REASONABLE, GOES THROUGH A PROCESS OF SCRUTINY AND IS ENTERED INTO THEIR PLANNING ANALYSIS IN A WAY THAT HELPS THAT ANALYSIS PRODUCE THE MOST ACCURATE SET OF RESULTS AND RECOMMENDATIONS.
SO, SO WE DO IN CONCEPT FEEL THAT IT IS NOT JUST ADVANTAGEOUS BUT NECESSARY TO INCLUDE FORECASTED LOAD IN YOUR PLANNING ANALYSIS.
BUT AGAIN, YOU KNOW, BASED ON CONVERSATIONS THAT WE'VE HAD WITH OTHERS AND OUR READING, THANK YOU.
AND OUR, OUR READING OF BOTH THE PIGGER AND THE NO PER IT, IT SEEMS THAT ERCOT DOES HAVE, IT'S NOT LIMITED IN HOW IT EASES THAT DATA, BUT WE JUST WANTED TO MAKE SURE THAT IT WAS CLEAR THAT THAT ERCOT SHOULD BE ABLE TO APPLY DISCRETION AND, AND HOW IT USES THAT DATA AND ITS PLANNING ANALYSIS SO THAT IT RESULTS IN THE MOST ACCURATE OUTCOME.
ANY QUESTIONS OR COMMENTS HERE? ALL RIGHT.
[5. PRS Report (Possible Vote)]
TO THE PRS REPORT.WE DO NEED TO WAIVE NOTICE ON THESE REVISION REQUESTS.
BECAUSE PRS WAS LAST WEEK, I AM TOLD IT WOULD BE CLEANEST TO DO THE WAIVE NOTICE BEFORE WE DISCUSS, BECAUSE BEFORE WE CAN TAKE A, A SUBSTANTIVE VOTE, WE WOULD NEED TO, TO WAIVE NOTICE.
SO WE WOULD BE DOING SORT OF A MINI COMBO BALLOT RIGHT NOW TO WAIVE NOTICE ON NPRR 1239 NPR 1240 NPR 1246 NPR 1247, AND NPRR 1254.
IS THAT A MOTION? BOB HILTON AND A SECOND FROM DAVID KEY.
ANY ISSUES OR DISCUSSION ON THAT? ALL RIGHT, TAKE IT AWAY, COREY.
MOTION TO WAIVE OF NOTICE ON THOSE FIVE NPR R WE'LL START UP WITH THE CONSUMERS AND NAVA FOR ERIC.
ERIC SCHUBERT? YES, THANK YOU, SIR.
AND EMILY FOR BLAKE? YES, THANK YOU.
ONTO OUR INDEPENDENT JANITORS.
EATING A TRANSMISSION COOKIE
AND MATT, LET US KNOW HE WOULDN'T BE WITH US TODAY ONTO OUR IRES BILL.
AND OUR IOUS, KEITH, KEITH, NICK, YOU WITH US?
[00:30:02]
HE IS ON THE, I CAN TAKE YOU IN CHAT IF YOU'RE HAVING AUDIO ISSUES.ONTO OUR MUNI IS RUSSELL, I GOT YOUR YES.
MOTION CARRIES UNANIMOUSLY, YOU'VE OFFICIALLY WAIVED NOTICE ON ALL FIVE OF THOSE.
SO THOSE ARE ALL AVAILABLE FOR WHATEVER SUBSEQUENT MOTIONS Y'ALL LIKE TO MAKE.
COREY, DO YOU WANNA GET STARTED, DIANA? SO WE, UM, WHY DON'T WE, WE'VE DONE THIS A FEW TIMES.
WHY DON'T WE PAUSE AFTER THE FIRST SLIDE AND SEE IF WE CAN DO SOMETHING WITH THE UNPOSED REVISION REQUEST BEFORE WE GET TO THE MORE CONTENTIOUS ONE.
DIANA COLEMAN WITH CPS ENERGY.
WE HAVE FIVE PROPOSED RECOMMENDATIONS FOR TAX CONSIDERATION THIS MORNING.
WE HAVE TWO THAT ARE UNOPPOSED AND HAVE NO IMPACT.
SO THE FIRST ONE, UH, COMES TO US FROM ERCOT.
THIS IS ADDING LANGUAGE THAT'S ASSOCIATED WITH ENERGY STORAGE RESOURCES IN THE APPROPRIATE PLACES THROUGHOUT THE PROTOCOLS THAT ARE ALIGNING PROVISIONS AND REQUIREMENTS FOR THESE TYPES OF RESOURCES THAT ARE ALREADY FOR GENERATION RESOURCES AND CONTROL.
AND THEN THE SECOND 1, 12 54, ARE ALSO COMING TO US FROM ERCOT.
THIS IS REQUIRING RESOURCE ENTITIES TO SUBMIT THE INITIAL RESOURCE REGISTRATION DATA FOR A GENERATOR INTERCONNECTION OR MODIFICATION PROJECT FOUR MONTHS PRIOR TO TARGET INCLUSION.
AND THEN WE HAVE TWO THAT ARE CLOSELY RELATED AND ALSO HAVE A JOINT PRIORITY AND RANK THAT WE SEE THERE ON THE SCREEN.
1239 AND 1240 ARE MOVING SOME OF THE REPORTS THAT WERE PREVIOUSLY ON THE MARKET INFORMATION SYSTEM IN THE SECURED PORTION THAT REQUIRES THE DIGITAL CERTIFICATES TO BE AVAILABLE ON THE PUBLIC PART OF THE ERCOT WEBPAGE, 1239.
THIS WILL NOT CONNECT, CONTAIN ANY OF THE E-C-E-I-I INFORMATION.
AND 1240 IS SPECIFIC TO THE TRANSMISSION PLANNING INFORMATION.
BOTH OF THESE HAVE A PROJECT, UH, PRIORITY OF 2025 AND A RANK OF 45 40, UH, FOR 1239.
ON SEPTEMBER 12TH, WE VOTED UNANIMOUSLY TO APPROVE AS SUBMITTED.
AND THEN ON NOVEMBER 14TH, WE'VE UNANIMOUSLY ENDORSED AND FORWARDED THE OCTOBER 17TH PRS REPORT AND THE OCTOBER 29TH IA ON 1240.
WE VOTED UNANIMOUSLY ON SEPTEMBER 12TH FOR THE LANGUAGE.
AND THEN ON NOVEMBER 14TH, WE FORWARDED THE OCTOBER 17TH PRS REPORT IN THE OCTOBER 29TH IA.
SO HOW ARE WE FEELING ABOUT THE UNOPPOSED ONES? CAN WE ADD THESE TO THE COMBO BALLOT, BOB HILTON? YEAH, JUST TO QUICKLY ON THE MODELING DEADLINE FOR INITIAL SUBMISSION, THIS DOESN'T HAVE ANY IMPACT, SO IT CAN BE IMPLEMENTED UPON, UH, PUC APPROVAL.
UH, THE ONLY QUESTION I HAVE IS, ARE WE SURE THAT THAT IS NOT GOING TO INTERFERE WITH ANY OF THE PIPELINE STUFF THAT'S IN RIGHT NOW BY THROWING THIS IN? UH, PROBABLY.
WAS THIS GONNA BE JANUARY, FEBRUARY AT LATEST, KEITH, DO YOU KNOW THE NEXT, THE NEXT NETWORK MODEL DATE AFTER THAT? UM, I, I DON'T KNOW OFF THE TOP OF MY HEAD, BUT I CAN FIND OUT.
OKAY, NOW THAT'S, THAT'S MY ONLY QUESTION.
I JUST WANNA MAKE SURE THAT SOMEBODY DOESN'T GET SURPRISED AND IF IT'S LIKE THREE WEEKS BEFORE YOU, OR, OR A PERIOD OF TIME BEFORE THAT NETWORK MODEL THAT THIS CHANGE KNOCKS 'EM OUT OF SOMETHING THAT THEY HAD BEEN PLANNING FOR.
SO, I, I, I DON'T THINK WE HAVE ANY, BUT I JUST WANNA MAKE SURE THAT, THAT EVERYONE OUT THERE HAS THE OPPORTUNITY TO THINK ABOUT THAT.
AND I'VE SAID THIS MORE THAN JUST HERE.
DO YOU NEED FEED? IS THERE SOMEONE FROM OUR WHO WANTS TO ANSWER BOB'S QUESTION OR BOB, DO YOU NEED FEEDBACK ON THIS? NO, I'M JUST, I'M OKAY.
I JUST WANNA WANT TO LET EV GET EVERYBODY ON NOTICE.
IF YOU'VE GOT AN ISSUE WE NEED TO UNDERSTOOD.
UM, ARE WE FINE TO PUT THESE ON THE COMBO BALLOT THEN? SO IT WOULD BE RECOMMEND APPROVAL OF NPR 1239 AS RECOMMENDED BY PRS AND THE 1114 PRS REPORT.
RECOMMEND APPROVAL OF NPR 1240 AS RECOMMENDED BY PRS IN THE 1114 PRS REPORT.
RECOMMEND APPROVAL OF NPR 1246 AS RECOMMENDED BY PRS
[00:35:01]
IN THE NOVEMBER PRS REPORT AND RECOMMEND APPROVAL OF NPRR 1254 AS RECOMMENDED BY PRS IN THE 1114 PRS REPORT.ANY ANY FURTHER QUESTIONS OR COMMENTS THERE? ALL RIGHT, COREY, WE CAN ADD THOSE TO THE COMBO BALLOT.
AND DIANA, YOU CAN TAKE US TO THE NEXT SLIDE.
1247 ALSO COMES TO US FROM ERCOT.
THIS IS INCORPORATING THE CONSUMER ENERGY COST REDUCTION TEST AS THE COST SAVINGS TEST IN ECONOMIC PROJECT EVALUATION TO ADDRESS RECENT AMENDMENTS BY THE PUBLIC UTILITY COMMISSION.
WE HAVE HAD SEVERAL, UH, WORKING GROUP CONVERSATIONS AND DISCUSSIONS AND A SPECIAL WORKING GROUP ON THIS ISSUE.
ON NOVEMBER 14TH, WE VOTED TO GRANT URGENT STATUS AND RECOMMENDED APPROVAL AS AMENDED BY THE NOVEMBER 11TH, OR CAUGHT COMMENTS.
THERE WERE TWO OPPOSING VOTES AND FOUR ABSTENTIONS.
A LOT OF THE CONVERSATION CAN FALL INTO TWO BUCKETS.
ONE WAS THE REFERENCE OF THE TWO WHITE PAPERS THAT ARE INCLUDED OR BASED OFF OF THIS CONGESTION TEST EVALUATION, WHETHER OR NOT THOSE NEEDED TO BE INCLUDED IN THE PROTOCOLS.
AND THE SECOND BUCKET OF CONVERSATION WAS THE EXPEDIENCY WITH WHICH WE NEED TO GET THIS PROTOCOL REVISION REQUEST APPROVED.
OKAY, SO AFTER PRS, WE DID HAVE COMMENTS FROM LUMINATE FILED AND VISTRA AND
IS IS SOMEBODY FROM LUMINATE ON TO DISCUSS THOSE COMMENTS? CAITLIN, I CAN, I CAN, YEAH, GO.
ALRIGHT, WELL, UM, THANKS FOR FOR TEEING THIS UP, KAITLYN.
SO I, I THINK THERE'S, UM, THERE'VE BEEN A LOT OF, YOU KNOW, IMPORTANT QUESTIONS RAISED IN THE REALLY, IN, ESPECIALLY IN THE LAST, UH, YOU KNOW, MONTH AND A HALF ON, ON THIS, THIS, UM, NPRR, WHICH, YOU KNOW, STAKEHOLDERS HAVE BEEN, I THINK WORKING PRETTY DILIGENTLY ON, UM, YOU KNOW, SINCE IT WAS FILED IN, IN LATE AUGUST.
AND, UM, YOU KNOW, WE RECOGNIZE THAT, UM, WELL WE, WE'VE IDENTIFIED THAT THERE ARE SOME, SOME THINGS THAT DIDN'T MAKE SENSE TO US, LIKE, UH, IN THE ACTUAL WHITE PAPER PARAMETERS ITSELF.
UH, FOR INSTANCE, THE, UH, YOU, THE, THE DISCOUNT FACTOR USED TO FOR THE NET PRESENT VALUE SETTING THAT AT SAY A 2% RATE SEEMS LIKE TO US LIKE THAT IS, UH, FIRST OF ALL JUST UNDERVALUING THE, IN THE EXPERIENCED AND, AND ANTICIPATED RATE OF INFLATION IN GENERAL AS WELL AS THE, UH, THE TIME, THE TIME VALUE MONEY, AND THE OPPORTUNITY COST OF, UM, OF MONEY.
SO THAT'S, UH, THAT'S ONE ELEMENT.
ANOTHER IS, IS FRANKLY JUST THE WAY THAT THE CHOSEN TEST IS DESIGNED.
WE, YOU KNOW, WE READ IN THE E THREE REPORT THAT THERE WAS RECOGNITION THAT THE GROSS, UH, THE GROSS COST TEST IS, UM, IS NOT ACCOUNTING FOR THE COST OF CONGESTION AND HEDGING OF CONGESTION THAT IS, UH, REFUNDED THE LOWS.
AND SO WE THINK BASIC DECISIONS ON THAT IS, UM, IS PROBABLY DISCOUNTING A SIGNIFICANT, UH, A SIGNIFICANT VALUE THAT, THAT ACCRUES THE LOADS.
AND SO, UM, YOU KNOW, RECOGNIZING THAT THERE IS AN INTEREST IN MOVING THIS FORWARD QUICKLY, UM, YOU KNOW, OUR, OUR SECOND SET OF COMMENTS THAT YOU'VE GOT UP, UM, FROM, UH, JUST LAST FRIDAY, WHAT THAT, WHAT THAT IS PROPOSING IS A PATH FORWARD, WHICH IS, YOU KNOW, WE, WE KNOW THAT, UH, THE MAJORITY OF CONGESTION COSTS DO GET REFUNDED.
AND SO THE, UM, I'M SORRY, I SHOULD SAY REALLOCATED.
AND SO IN ORDER TO HELP IT MOVE FORWARD, BUT MAYBE I, WHAT I WOULD SUSPECT WOULD, UH, TURN OUT TO BE JUST KEEPING A, YOU KNOW, UH, A LOT OF INTEREST IN, IN COMING BACK TO, UM, TO SHARPEN THE PENCIL ON THIS, WE WOULD PROPOSE PUTTING IN A 0.25 MULTIPLIER TO THE CALCULATED CONGESTION COST SAVINGS.
AND THAT'S A, YOU KNOW, THAT'S A, A ROUGH APPROXIMATION, UH, OF, YOU KNOW, HOW WE, WHEN WE LOOKED AT THE, UH, THE CR REVENUE FROM, UH, LAST YEAR RELATIVE TO THE CONGESTION VALUE.
SO, UM, I CAN, I CAN PAUSE THERE IF, IF FOLKS HAVE QUESTIONS, BUT, UM, YOU KNOW, WE THINK THIS IS A, THIS IS A GOOD, MAYBE A GOOD COMPROMISE.
IF THERE'S A NEED TO MOVE FORWARD ON SOMETHING TODAY, WE CERTAINLY WOULD ALSO SUPPORT TABLING AND GIVING STAKEHOLDERS, UH, YOU KNOW, JUST A LITTLE MORE TIME TO, UH, TO, TO WORK THROUGH THIS, SHARPEN THE PENCIL
[00:40:01]
AND MAKE SURE THAT WE GET THIS RIGHT, UM, BEFORE SENDING UP TO THE BOARD.BILL BARNES? YEAH, WE FILED COMMENTS ON THIS AND, UH, ABSTAINED AT PRS.
SO I WANTED TO EXPLAIN OUR CONCERNS AND PERSPECTIVE ON THIS.
A LOT OF ACTIVITY LAST MONTH AT THE PLANNING WORKING GROUP IN ROSS, UM, THE TRANSPARENCY ISSUES, UH, DIANE EXPLAINED ERCOT PARTIALLY ADDRESSED SOME OF THAT WITH ACCEPTANCE OF SOME OF OUR COMMENTS THAT INCLUDE MORE TRANSPARENCY ON THE MODELING INPUTS.
UM, AND ALSO WE FELT THAT THERE NEEDED TO BE MORE DETAIL IN THE ACTUAL PROTOCOL LANGUAGE ON HOW THE METHODOLOGY WORKS.
ERCOT ALSO INCORPORATED OR INCORPORATED SOME OF THOSE COMMENTS AS WELL, THAT WHICH WE APPRECIATE.
OUR REMAINING CONCERNS LIE WITH THE FACT THAT, UM, WHEN THE CONGESTION COST SAVINGS TEST WAS PASSED AND THE 87TH LEGISLATURE AND THE STUDIES DONE BY BRITTLE, WE WERE REALLY WORKING UNDER A COMPLETELY DIFFERENT SET OF ASSUMPTIONS THAN WE HAVE TODAY.
AND THAT REALLY SPEAKS TO THE LARGE LOAD GROWTH.
AND SO THE CONCERNS THAT WE HAVE IS PART OF THE PROCESS OF DEVELOPING THE PLANNING MODELS TO CONDUCT THE CONGESTION COST SAVINGS TEST ITSELF, HAVING A VERY LARGE SUPPLY AND DEMAND GAP IN THE LATER YEARS OF THE MODEL.
THE WAY THAT THAT WILL BE ADDRESSED AS SUGGESTED BY ERCOT STAFF, IS THEY WILL PLACE FICTITIOUS GENERATION SOMEWHERE IN THE PLANNING MODEL.
WE DON'T KNOW HOW THAT PROCESS WORKS YET.
WE DON'T KNOW WHERE THE PLACEMENT OF THAT FICTITIOUS GENERATION WILL OCCUR THAT WILL UNDOUBTEDLY CREATE CONGESTION PATTERNS THAT WILL IMPACT THE OUTCOME OF THIS TEST.
'CAUSE WE DON'T KNOW HOW THAT'S GONNA WORK YET.
UM, SO THAT'S WHY WE ABSTAINED.
WE STILL HAVE SOME DISCOMFORT WITH, UM, PASSING SOMETHING WITHOUT KNOWING HOW ALL THE PIECES WORK.
UM, BUT ERCOT HAS ACKNOWLEDGED THAT THEY WANT TO GET THIS PIECE IN PLACE AND WORK ON THE, UM, PROCESS FOR, UM, LOCATING GENERATION TO GET THE MODEL TO SOLVE ANY SEPARATE, UH, PLANNING GUIDE, REVISION REQUEST AND DISCUSSION, WHICH WE'LL BE PARTICIPATING IN.
SO FOR THAT REASON, WE ARE ABSTAINING ON THIS.
UM, I JUST WANNA SAY THAT I AGREE WITH RA AND I THINK JUST AS SORT OF, UH, A FACTUAL MATTER BECAUSE ALL CONGESTION RENTS ARE RETURNED TO LOAD THROUGH THE CR AUCTION PROCEEDS.
UH, YOU'RE, YOU'RE IN A SITUATION WHERE YOU'RE BUILDING TRANSMISSION, UH, TO LOWER A COST THAT WOULD GO TO LOAD ANYWAY.
SO IT'S, IT'S REALLY A BAD DEAL FOR CONSUMERS TO NOT INCLUDE, UH, WHAT, WHAT VISTA IS HAVING HERE.
IN FACT, I THINK VISTA'S RUNNING, PUTTING THE NEEDLE TOO FAR BACK ON A COMPROMISE INTO A COMPROMISE POSITION, I THINK IT SHOULD ACTUALLY BE MORE LIKE 0.75 OR A MUCH HIGHER ADDER.
UM, I DON'T THINK THIS BENEFITS CONSUMERS AT ALL.
AND, UH, JUST IN THEORY, I MEAN, YOU'RE ALSO FRONT RUNNING GENERATION PRICE SIGNALS BY BUILDING, UH, TRANS, UH, TRANSMISSION FOR CONGESTION.
AND YOU'RE BASICALLY GETTING IN FRONT OF THE, THE MARKET SIGNALS FOR, FOR GENERATORS TO BE ABLE TO CITE AND DO EFFICIENT THINGS.
AND YOU'RE DOING THAT AND PUTTING THINGS INTO RATE BASE INSTEAD OF ALLOWING, UH, YOUR MARKET TO WORK.
ERIC SCHUBERT, UM, I'D LIKE TO RESPECTIVELY DISAGREE WITH BOTH SETH AND NED ON, ON THE CONGESTION ISSUE.
UM, JUST BECAUSE YOU HAVE CONGESTION REVENUE RIGHTS THAT CAN COVER SHORT TERM CONGESTION DOESN'T MEAN THERE ISN'T A PROBLEM.
OKAY? IF YOU TALK ABOUT IMPORT CONSTRAINTS SUCH AS INTO HOUSTON, OR IN THE PAST IN DALLAS, YOU HAVE A SITUATION WHERE CONGESTION NOW IS INDICATIVE OF FUTURE CONGESTION AND TIGHTNESS, RIGHT? SO YOU HAVE A SITUATION WHERE YOU NEED TO BE PROACTIVE IN BUILDING OUT TRANSMISSION, AND IT GOES BEYOND JUST COST, OKAY? THE BASIS OF RETAIL CHOICE IN THIS STATE IN ERCOT IS HAVING THE WIDEST RANGE OF POSSIBILITIES OF BUYING POWER FROM DIFFERENT RETAILERS FROM DIFFERENT SOURCES.
THE MORE CONGESTION YOU HAVE, THE MORE YOU LIMIT AND YOU ARTIFICIALLY RAISE THE VALUE OF RESOURCES WITHIN THE LOAD POCKET.
AND I THINK IS TO FACILITATE THE BENEFITS OF RETAIL CHOICE LONG TERM, YOU NEED TO BE PROACTIVE IN BUILDING OUT TRANSMISSION.
SO IT'S NOT A MATTER OF WHETHER YOU CAN HEDGE OR NOT.
SECONDLY, IF YOU START SEEING CONGESTION HERE, IT'S GONNA START POPPING UP IN THE FORWARDS, OKAY? SO IT DOES IMPACT CONSUMERS.
'CAUSE IF WE'RE OUT SHOPPING AROUND, ALL OF A SUDDEN PRICES ARE HIGHER 'CAUSE OUR CHOICES ARE MORE LIMITED.
SO WE ARE DEFINITELY IN FAVOR OF MAKING SURE THAT THERE IS PLENTY OF TRANSMISSION PROACTIVELY, AND WE ARE WILLING TO PAY MORE IN TRANSMISSION COSTS
[00:45:01]
TO FACILITATE OUR CHOICES IN THE MARKET.THE PERSON IS ERIC SHOULD RELIANT, UH, CHEMICAL COMPANY, THE PERSON IN THE LOAD POCKET IS, BUT YOU'RE RAISING THE COST FOR THE PEOPLE ON THE OTHER SIDE, THE CONSTRAINT.
SO, I MEAN, OKAY, SETH, WE'VE BEEN UNDER A DEAL FOR THE LAST 25 YEARS WHERE IT IS UNDERSTOOD THAT OVER TIME SOME CONSTRAINTS GONNA POP OUT THROUGHOUT THE SYSTEM.
WHEN NOLE WAS FIRST, UH, APPROVED, THERE WAS, UH, AN ORDER FROM THE COMMISSION TO ALSO EXPAND THE TRANSMISSION THROUGHPUT INTO THE DALLAS FORT WORTH AREA.
BECAUSE OF THE PRICING, WE'VE SEEN IMPORT CONSTRAINTS INTO HOUSTON AREA WHERE DEALING WITH ISSUES IN THE PERMIAN.
SO YOU HAVE TO LOOK OVER THE PURE OVER DECADES AND SAY, YES, IN THIS PARTICULAR SITUATION, SOME CONSUMERS BENEFIT AND SOME DON'T.
BUT OVERALL, IF YOU'RE, IF YOU'RE PROACTIVE AND AGGRESSIVE IN BUILDING TRANSMISSION TO SUPPORT RETAIL CHOICE, EVERYONE BENEFITS OVER THE LONG TERM.
UH, BRIAN SAMS, UH, CALPINE WOULD SUPPORT, UH, TABLING OR, UH, UH, WE WERE A NO AT ROSS CONTINUE TO BE A NO ON THIS VERSION OF, OF THE NPRR.
UH, REALLY FOR THE, THE REASONS THAT THE WHITE PAPERS JUST AREN'T COMPLETE.
UH, WE HAVE CONCERNS THAT, UM, THIS PROCESS MIGHT ALLOW FOR DOUBLE COUNTING OF BENEFITS.
UH, FOR EXAMPLE, WE'RE SEEING, YOU KNOW, BIG PROJECTS IN THE PERMIAN THAT, THAT, UH, UH, ARE PROBABLY RELIABILITY PROJECTS OR ARE THEY ARE RELIABILITY PROJECTS TO, UH, AND SOME OF THE BENEFITS WOULD BE TO REDUCE THE, UH, GTCS, BUT THEN THOSE SAME BENEFITS ARE ACCOUNTED, UH, POTENTIALLY COUNTED FOR SOME OF THE ECONOMIC PROJECTS THAT WE SEE OUT THERE.
AND SO THERE'S JUST NOT, UM, GOOD PROCESS TO ENSURE THAT YOU'RE NOT DOUBLE COUNTING BENEFITS.
AND, UH, SETH, I WANTED TO SAY I APPRECIATE YOUR COMMENTS AND I I DID WANT TO, UH, CLARIFY JUST IN CASE, UH, OTHERS HAD READ IT.
THE, THE 0.25 MULTIPLIER WOULD EFFECTIVELY BE THE SAME AS I, I THINK YOU SAID 75%, UM, REDUCTION.
SO I THINK THAT WOULD GET TO THE SAME POINT, SETH.
SO I THINK WE'RE, WE ARE ACTUALLY TRYING TO HIT THAT, THAT RIGHT DOWN THE MIDDLE, UM, AS YOU, UH, AS YOU SUGGESTED.
AND, UM, I DID ALSO, YOU KNOW, ERIC, I I APPRECIATE YOUR, YOUR COMMENTS AND FEEDBACK AND I, I WANT TO, YOU KNOW, BUT I WANTED TO SAY THAT THIS IS NOT NECESSARILY A, UM, INTENDED BY ANY MEANS TO BE, YOU KNOW, ANTI TRANSMISSION.
REALLY, IT'S TRYING TO FIND THE RIGHT BALANCE FOR WHERE CONSUMER COSTS LIE, WHERE YOU'RE ESSENTIALLY TRADING OFF A, CALL IT A SOFT COST.
IT'S A COST THAT CAN BE HEDGED IN, IN THE POWER MARKETS, UM, VERSUS A HARD COST THAT CANNOT BE HEDGED AND IS, YOU KNOW, IT, IT'S THERE FOR A LONG TIME IN, IN TRANSMISSION AND, YOU KNOW, WE NEED TRANSMISSION TO GET GOODS TO MARKET AND TO SERVE CUSTOMERS.
AND SO, YOU KNOW, GETTING THE RIGHT AMOUNT OF, UH, OF THAT BUILT IN THE SYSTEM IS, IS IMPORTANT TO ALL OF US, AND IT HELPS THE GRID STAFF, BUT, UM, WE'RE, WHAT WE'RE TRYING TO FIND HERE IS A, A, A REASONABLE BALANCE THAT, THAT KEEPS THOSE TWO, UM, AT AN EFFICIENT TRADE OFF POINT.
OKAY, WE HAVE EMILY AND THEN MARK BRUCE, AND THEN AFTER THAT LET'S, UH, I KNOW PR HERE TO TALK ABOUT OR CO COMMENTS, SO LET'S TAKE THOSE TWO AND THEN GO TO THE, THE ERCOT COMMENTS.
UM, APPRECIATE THE DISCUSSION.
AND THIS IS SOMETHING OBVIOUSLY A A LOT OF FOLKS HAVE RAISED A LOT OF IMPORTANT POINTS ON.
UM, AND WE APPRECIATE THE COMMITMENT FROM ERCOT AND OTHERS TO CONTINUE TO EVALUATE THIS AND PROVIDE MORE DETAIL AND TRANSPARENCY.
UM, I, I DO HAVE CONCERNS THOUGH WITH, UM, PERHAPS LOOSE ASSOCIATIONS THAT AREN'T NECESSARILY BACKED UP WITH EXAMPLES ABOUT HOW MAYBE A PERCEPTION OF WHAT'S HAPPENING IN ONE AREA COULD RESULT IN ADDITIONAL COST.
AND SO, SPECIFICALLY BRIAN, I'M REFERRING TO YOUR COMMENT, UM, THERE ARE CERTAINLY, UM, CHALLENGES WITH THE PERMIAN AND THE PERMIAN PLAN THAT ERCOT HAS PUT FORWARD THAT I THINK NEED, YOU KNOW, TO BE LOOKED AT SCRUTINIZED.
WHAT I'M NOT AWARE OF IS ANY, AS YOU REFERRED TO DOUBLE COUNTING OF BENEFIT ASSOCIATED WITH THAT PLAN, IF YOU COULD PROVIDE ANY SPECIFIC EXAMPLES THAT WOULD BE HELPFUL FOR US TO UNDERSTAND THAT CRITIQUE.
UM, I THINK THERE'S A, A LONE STAR PROJECT THAT WOULD, UH, CLAIMS TO REDUCE, UH, WEST TECH'S GTC AS A BENEFIT.
AND, UH, THE PERMIAN PLAN, POTENTIAL
[00:50:01]
7 65, UH, UH, PROJECT ALSO CLAIMS TO REDUCE, UH, THE, THE GTC OR ELIMINATE THE GTC.SO THAT'S THE SAME BENEFIT THAT WOULD BE COUNTED TWICE.
AND IF I COULD JUST CLARIFY, THE, THE LONE STAR PROPOSAL IS NOT PART OF ERCOT PERMIAN PLAN AND HAS NOT BEEN ENDORSED BY ERCOT OR THE PUCI, I AGREE WITH YOUR COMMENT THERE, BUT MY POINT IS THAT THERE'S NOT LIKE A VALUATION OF FUTURE TRANSMISSION BUILDS THAT WOULD BE DONE FOR RELIABILITY, BUT WOULD ALSO, UH, CLAIM THE SAME BENEFIT.
SO ALL OF THIS BRINGS ME TO MY POINT AND I'LL SPEED UP.
UM, I, I THINK YOU'RE RAISING IMPORTANT POINTS, AND I THINK PROJECTS WHEN THEY'RE BROUGHT TO RPG, UM, LIKE THE LONE STAR PROJECT THAT'S CURRENTLY PENDING AT RPG, NEED TO BE EVALUATED ON THOSE CRITERIA AND NEED TO MEET THE CRITERIA.
UM, WE'RE VERY SUPPORTIVE OF, OF ERCOT AND STAKEHOLDERS ENGAGING IN THAT REVIEW TO ENSURE THAT THERE IS, UM, CONSISTENT APPLICATION OF AND, AND, AND MEETING OF THE TESTS FOR ANY PROJECTS THAT MOVE FORWARD.
SO APPRECIATE YOUR COMMENTS ON THAT.
UM, WHAT I DO THINK THAT WE ALL NEED TO UNDERSTAND IS, IS HOW THAT PROCESS WILL PLAY OUT.
AND SO FOR ONE-OFF PROJECTS THAT ARE FILED AT THE COMMISSION, LIKE THE LONE STAR PROJECT, THAT CIRCUMVENTED RP REVIEW, THAT, THAT TAKES AWAY THE OPPORTUNITY FOR STAKEHOLDERS TO MAKE THOSE EVALUATIONS.
SO WE'RE PLEASED TO SEE THAT BACK AT ERCOT.
UM, WITH REGARD TO, YOU KNOW, PROJECTS IN THE PERMIAN PLAN, I THINK ERCOT HAS BEEN VERY TRANSPARENT AND THE REPORT AND, AND THE STUDIES THAT HAVE BEEN FILED ON THAT, I THINK DON'T NECESSARILY BEAR OUT THE SAME CRITIQUE THAT YOU'VE RAISED.
SO I DO, I DO SEE A DISTINCTION AND WANT TO POINT THAT OUT, BUT THESE DISCUSSIONS ARE IMPORTANT TO MAKE SURE THAT WE ALL UNDERSTAND THE CRITERIA THAT ARE BEING APPLIED, UH, AND THE MORE THAT ERCOT CAN PROVIDE ON THAT GOING FORWARD AS THEY'VE COMMITTED TO DO, I THINK WE'LL ENHANCE THAT DISCUSSION.
SO WE APPRECIATE YOUR COMMENTS.
AND I WASN'T SAYING SPEED IT UP.
YOU KNOW, I, I THINK THE AUDIENCE IS JOIN, ENJOYING THE BACK AND FORTH WE'RE HAVING, BUT I WANNA MAKE SURE WE, WE GET TO THE PEOPLE IN, IN THE QUEUE TOO.
UH, LET'S GO TO, TO MARK BRUCE, AND THEN BOB, I DIDN'T SEE YOUR CARDS, SO WE'LL TAKE YOU BEFORE WE GET TO ERCOT COMMENTS TOO.
AND SO MARK BRUCE ON BEHALF OF PATTERN ENERGY, WHO IS ONE OF THE JOINT COMMENTERS ON THIS NPRR, THROUGH ITS DISCUSSION PROCESS AND A COUPLE OF THINGS, UM, THANKS TO, UH, ERCOT FOR THE COMPROMISE THAT THEY MADE TO AMEND THE INTRO, UM, LANGUAGE, THE REVISION REASON FOR REVISION TO SORT OF PUT SOME PLACEHOLDERS DOWN FOR WHERE THIS ADDITIONAL METHODOLOGY DOCUMENTATION, UM, WILL BE LOCATED.
I THINK THAT'S JUST GENERALLY HELPFUL, ALTHOUGH WE CERTAINLY WOULD'VE PREFERRED, UM, MORE LANGUAGE IN THE PROTOCOL LANGUAGE ITSELF.
UM, OR PERHAPS, YOU KNOW, FURTHER DOWN INTO THE PLANNING GUIDE, UM, WE WE'RE STILL CONCERNED ABOUT AN OVERALL LACK OF TRANSPARENCY, EVEN WITH THE WHITE PAPERS THAT WE HAVE.
I THINK TO ECHO SOME OF THE POINTS RAISED BY, UH, BILL BARNES AND RELIANT, UM, I WOULD JUST SAY TO TO LUMINANCE POINTS, UM, I THINK LUMINANCE COMMENTS ARE WELL TAKEN.
THEY OFFER SOME INTERESTING FOOD FOR THOUGHT, AND IT DOES GO TO THE POINT THAT, YOU KNOW, MY CLIENT HAS SAID ALONG THE WAY HERE THAT THERE'S BEEN A REAL RUSH.
I MEAN, AFTER A COUPLE, LITERALLY A COUPLE OF YEARS OF, UM, LET'S JUST SAY LOW LEVEL OF ACTIVITY ON THIS, THEN TO SORT OF DROP IT AND PUSH IT, UM, IT LEAVES US WITHOUT THE TIME TO HAVE THE CONVERSATIONS WE NEED.
UM, I'M INTERESTED IN HEARING THE DISCUSSION ABOUT LUMINANT'S COMMENTS, BUT LUMINANT DIDN'T REALLY OFFER ANY, YOU KNOW, SUPPORTING DATA, ANY CALCULATIONS AROUND THAT.
I THINK WE JUST NEED MORE TIME TO VET THAT.
UM, I KNOW, CAITLIN, THAT YOU'RE GOING TO, UH, URGE THIS BODY TO MAKE A DECISION TODAY.
I KNOW THERE'S BEEN SOME PRESSURE FROM ABOVE TO DELIVER SOMETHING TO THE BOARD ON THIS AT THEIR NEXT MEETING.
AND I GUESS, UM, YOU KNOW, HAVING DONE MY BEST THROUGH THE PROCESS, MY CLIENT'S BEEN ENGAGED FROM THE GET GO, UM, FROM ITS FIRST SHOWING AS A DRAFT BEFORE IT WAS EVEN FILED.
UM, WE'VE BEEN TRYING TO UNDERSTAND AND, AND PERFECT THIS VERY IMPORTANT REVISION REQUEST.
UM, BUT TO THE EXTENT THAT TAC DOES FEEL OBLIGATED TO MOVE ALONG WHAT THEY HAVE, UM, I WOULD JUST HOPE THEY WOULD DO SO WITHOUT THE LUMINANT, UH, AMENDMENTS.
UM, AND THAT, UM, YOU KNOW, I WOULD PLEDGE ALONG WITH MANY OF THE OTHER PROPOSED AMENDMENTS OF
[00:55:01]
MY OWN, OF, OF MY CLIENTS AND THE JOINT COMMENTERS THAT GOT LEFT TO THE SIDE, UM, THAT WE WOULD TAKE ALL THIS UP IN A SUBSEQUENT PLANNING GUIDE, REVISION REQUEST, AND, UH, ATTEMPT TO FURTHER PERFECT THIS PROCESS DOWNSTREAM.UM, I CERTAINLY DON'T WANT TO PREDETERMINE THE, THE VOTE, BUT YOU KNOW, THE COMMISSION STAFF IS HERE.
I, I'LL LET THEM SPEAK IF THEY WANT TO.
WE WERE SORT OF SETTING UP A, A ROUTE SO THAT WE COULD HAVE THIS APPROVED BY THE BOARD BY THE END OF THE YEAR.
YOU KNOW, UNFORTUNATELY THE WAY THE CALENDAR IS, THIS IS OUR LAST TAC MEETING OF THE YEAR.
UM, SO WE REMINDED PEOPLE OF THE, THE TIMELINE THAT COULD GET THINGS DONE BY THIS YEAR, BUT, BUT CERTAINLY NOT GOING TO DICTATE, YOU KNOW, IF PEOPLE NEED MORE TIME, I'M, I'M NOT GONNA DICTATE WHAT THE, THE VOTE IS OR THE OUTCOME OF THE VOTE.
ALL RIGHT, BOB? YEAH, JUST REAL QUICKLY, YEAH, THIS ISN'T PERFECT, BUT I, I THINK WE DO NEED TO LOOK AT MOVING SOMETHING ON.
UM, THIS DOES, THIS ISN'T THE END OF THE ROAD.
THIS IS THE BEGINNING, AND I THINK THERE'S A LOT OF THINGS THAT WE WILL BE DOING MOVING FORWARD, UH, TO TRY TO TRY TO PERFECT THIS AND GET IT BETTER AND BETTER AS WE GO FORWARD.
SO I THINK WE DO NEED TO MOVE SOMETHING TODAY.
NOW, I DO HAVE A QUESTION FOR, UH, FOR NED ON YOUR PROPOSAL FOR THE, UH, THE HAIRCUT.
BASICALLY WHAT YOU'RE TALKING ABOUT THERE IS, WERE YOU PLANNING ON THAT? SORRY, THOUGHT I MUTED THAT.
UH, ARE YOU PLANNING ON THAT JUST BEING HARD CODED IN THERE AND THAT'S GONNA BE THERE FOR UNTIL WE GET A NEW, UH, A NEW REVISION THROUGH TO CHANGE THAT PARTICULAR PIECE? OR WERE YOU LOOKING AT THAT TO BE SOME SUNSET DATE TO, WHILE WE CAN TRY TO FIGURE OUT THE REST OF THE PROCESS THAT WOULD NO LONGER NEED THAT, UH, WHAT WERE YOUR THOUGHTS ON, ON THAT PIECE? I, I CAN RESPOND IN THE QUEUE OR I CAN GO NOW.
PLEASE GO AHEAD AND RESPOND, NED.
UH, SO BOB, I THINK THAT'S A, THAT'S A GOOD QUESTION AND, AND YOU KNOW, MARK, THE COMMENTS YOU MADE I THINK ARE, ARE ALSO WELL TAKEN.
UM, YOU KNOW, THE WAY WE THINK ABOUT THIS IS, IT IS A, A WAY TO HAVE, YOU KNOW, AVOID, UH, YOU KNOW, A DO NO HARM APPROACH WHERE, YOU KNOW, WE, WE KNOW THAT WE'RE NOT GOING TO, YOU KNOW, ERR ON THE SIDE OF ADDING ADDITIONAL COSTS FOR THAT, YOU KNOW, CANNOT BE HEDGED BY CONSUMERS IN THE, UH, IN THE NEAR TERM.
BUT I THINK THERE'S PROBABLY RECOGNITION THAT, YOU KNOW, A HARDCODED HAIRCUT IS NOT THE IDEAL AND WE SHOULD, I THINK I'M HEARING FROM EVERYBODY THAT WE WOULD ALL LIKE TO HAVE MORE TIME TO LOOK AT THIS.
AND SO THAT'S WHY WE THINK OF THIS AS A COMPROMISE, IS IT GIVES US A PATH FORWARD THAT GETS SOMETHING TO THE BOARD BY THE END OF THE YEAR.
BUT WE FULLY RECOGNIZE THERE'S A LOT OF FOLKS THAT PROBABLY ARE, ARE NOT GOING TO BE SATISFIED WITH A HARD CODED 0.25 MULTIPLIER.
AND SO THAT SHOULD HELP TO KEEP EVERYONE BACK AT THE TABLE AND COMING BACK TO LOOK AT IT AND, AND, YOU KNOW, HOPEFULLY COME, COME FORWARD WITH A REPLACEMENT DOWN THE LINE THAT, THAT HAS HAD THE BENEFIT OF ADDITIONAL DISCUSSION.
DID THAT ANSWER YOUR QUESTION, BOB? ALL RIGHT, BARKSDALE.
UM, I GUESS JUST TO MAKE SURE IT'S CLEAR, UM, WHAT COMMISSION STAFF'S POINT OF VIEW IS ON, ON, UH, THE TIMING OF TAX DECISION ON 1247.
UM, YOU KNOW, WHEN I MADE COMMENTS BACK IN SEPTEMBER, UM, FROM OUR PERCEPTION THERE HAD BEEN, UM, A LOG JAM OF ACTIVITY, UM, WHICH I UNDERSTAND WAS RELATED TO THE TIMING OF THE RELEASE OF THE WHITE PAPER.
AND SO STAFF IS VERY THANKFUL TO ERCOT STAFF FOR MOVING THAT FORWARD AND THANKFUL TO THE STAKEHOLDERS FOR, UM, TAKING UP THE DEBATE DILIGENTLY, UM, UPON THE RELEASE OF THAT WHITE PAPER.
AND THESE CONVERSATIONS HAVE BEEN HELPFUL TO FLESH OUT THE PROS AND THE CONS OF, OF MOVING SOMETHING FORWARD.
UM, CAITLIN SAID IT VERY ASTUTELY OF A COUPLE MINUTES AGO.
I DON'T, I DON'T THINK STAFF IS WANTING TO PREDETERMINE AN OUTCOME TODAY.
UM, BUT YOU KNOW, WE NOTE THAT THIS IS THE IMPLEMENTATION OF LEGISLATION AND IMPLEMENTATION OF A COMMISSION RULE.
UM, AND, UM, HAVING BEEN PART OF THE STAKEHOLDER PROCESS OFF AND ON FOR A LONG TIME, I KNOW SOMETIMES WE CAN GET HUNG UP ON LETTING PERFECT BE THE ENEMY OF THE GOOD.
AND WE KNOW THIS IS THE 1,247 REVISION TO THE NODAL PROTOCOLS.
WE ALWAYS HAVE THE OPPORTUNITY TO GO BACK AND GET IT A LITTLE BIT MORE
[01:00:01]
PERFECT NEXT TIME.SO, UM, IF TAX DECISION TODAY IS TO TABLE IT AND CONTINUE TO WORK THROUGH THE ISSUES, THEN THAT'S THE DECISION OF THIS BODY.
UM, AND, UM, YOU KNOW, I THINK STAFF WOULD URGE YOU TO TRY TO FIND RESOLUTION AS QUICKLY AS POSSIBLE.
UM, THE LEGISLATURE COMES INTO TOWN IN 60 SHORT DAYS.
SO I SAID I WOULD TAKE ER'S COMMENTS, SO LET'S DO THAT AND THEN WE'LL GO BACK, BACK TO THE QUEUE.
SO I, I, I, YOU KNOW, I HEAR THE COMMENTS.
SO ONE THING I WANTED TO GO BACK IS, YOU KNOW, THIS, THIS PROCESS HAS BEEN GOING ON FOR MORE THAN A YEAR AND A HALF OR MORE.
UM, BACK IN 2023 WHEN WE HIRED E THREE TO WORK ON THIS RECOMMENDATION, THEY CAME UP WITH THE RECOMMENDATION AND WE HAD MULTIPLE DISCUSSIONS, STAKEHOLDERS DISCUSSIONS, DISCUSS THESE ISSUES.
AS YOU MAY NOTE, UM, SOME OF THE ISSUES RAISED HERE RELATED TO WHETHER TO CON FOR PARTIAL HEDGING OF THE COST BY LOAD CUSTOMERS, THOSE ISSUES WERE DISCUSSED.
AND EVEN IN THE REPORT, IF YOU COULD LOOK AT SECTION FOUR POINT, UH, 4.2 0.4, THERE IS A LENGTHY DISCUSSION OR THE PROS AND CONS OF INCLUDING SUCH, UM, DISCOUNT FACTORS AND OTHERS.
SO BASED ON THE RECOMMENDATION, UH, THE CURRENT RECOMMENDATION FROM E THREE, THERE ARE A NUMBER OF THINGS THAT WAS HIGHLIGHTED, ESPECIALLY RELATED TO THIS ISSUE.
UM, ERCOT TRIED TO CAPTURE THOSE THINGS IN OUR COMMENTS.
UH, THOSE ARE PRETTY MUCH WHAT WAS STATED IN THE E THREE RECOMMENDATION OR THE REPORT.
THE, THE FUNDAMENTAL ISSUE HERE IS WHAT, WHEN WE LOOKED AT THIS ISSUE IS E THREE RECOMMENDED THAT WE DO NOT HAVE SUFFICIENT DATA AT THIS POINT TO ISOLATE THOSE CRR PAYMENTS THAT OCCUR FOR THE LOAD CUSTOMERS ONLY.
SO THAT, THAT WAS THE, THE, YOU KNOW, BOTTLENECK RIGHT NOW.
AND, AND IF YOU LOOK AT THE REPORT, THE REPORT CLEARLY IDENTIFIES THIS AS AN ISSUE AND RECOMMENDS THAT IT'LL BE USEFUL FOR THE ERCOT AND THE STAKEHOLDERS TO REVIEW THIS AVAILABLE DATA OVER THE, YOU KNOW, SEVERAL COURSE OF SEVERAL, UH, NEXT FEW, UM, YEARS, AND THEN COME UP WITH THE RECOMMENDATION SUCH THAT, YOU KNOW, WE COULD DECIDE TO INCLUDE OR, UH, FURTHER MAKE FURTHER ADJUSTMENTS TO INCLUDE ANY DISCOUNT FACTOR OR POTENTIALLY MODIFY THIS.
SO BASED, BASED ON THAT RECOMMENDATION, UH, E THREE RECOMMENDED AT THIS POINT, UM, THEY THINK THE SYSTEMWIDE CROSS LOAD TEST AS THE BEST OPTION THAT WOULD FEED THE RULES AND STRUCTURES OF THE CURRENT ER CUT MARKET.
SO, I, I, WITH THAT, I'M GONNA STOP.
AND, UH, ALSO, UH, JUST, JUST THE PROCESS WISE, I UNDERSTAND THIS IS, WE ARE TRYING TO GET THIS CONGESTION COST METRIC DONE, BUT AS I, AS I SAID, WE HAVE HAD SEVERAL DISCUSSIONS IN THE STAKEHOLDERS PROCESS.
I KNOW THE TIMING OF THE, YOU KNOW, WHITE PAPER, WHICH WAS ADDED AT THE END, BUT YOU KNOW, THESE ARE ALL THE THINGS THAT HAS BEEN DISCUSSED THROUGH THE STAKEHOLDERS.
E THREE HAD SEVERAL PRESENTATIONS DISCUSSIONS, SO SUBSEQUENT, ONE THING THAT IS NOT HIGHLIGHTED IN THE PROCESS IS AFTER THE, AFTER E THREE MADE THE RECOMMENDATION, ERCOT HAS TO WORK ON HIS TOOLS AND CAPABILITIES TO MAKE SURE WE COULD IMPLEMENT THIS, UH, NEW CONGESTION COST TEST.
SO THAT WAS, ERCOT WAS WORKING ON THAT TO MAKE SURE WE HAD THE TOOLS AND CAPABILITIES TO IMPLEMENT THIS BEFORE WE COULD SUBMIT THIS REVISION REQUEST.
SO I HAVE, I HAVE A QUESTION FOR IMM.
CAN YOU, CAN YOU ELABORATE A LITTLE BIT, UH, IN DETAIL, UH, WHY YOU SUPPORT, UH, THINGS LIKE THAT? WELL, TO BE, TO BE CLEAR, WE SUPPORTED IN CONCEPT, UH, THE IDEA OF HAVING MORE INFORMATION IN THE, IN THE TRANSMISSION ASSESSMENT PROCESS.
SO THROUGH THESE CONVERSATIONS AND CHATTING WITH, UM, ONE OF MY COLLEAGUES, YOU KNOW, I THINK SHOULD THIS OTHER DETAILS HAVE COME TO OUR ATTENTION DURING THIS CONVERSATION, SHOULD THIS GET, UH, REMANDED BACK TO A, TO A WORKING GROUP OR A SUBCOMMITTEE, WE WOULD GET INVOLVED AND DO A MORE IN-DEPTH ASSESSMENT.
OUR SUPPORT OF IT WAS BASED ON THE PRINCIPLE OF GENERALLY SPEAKING, MORE INFORMATION, UH, IS BETTER THAN LESS INFORMATION IN YOUR ASSESSMENT PROCESS.
SO YOU DIDN'T HAVE A FULL, FULL, FULL INFORMATION RIGHT NOW,
[01:05:02]
NOT BASED ON SOME OF THE CONVERSATION THAT'S TAKEN PLACE TODAY.ALL RIGHT, RICHARD? YEAH, CAITLIN, UM, I MEAN, I'M, WE'RE READY.
I, I'M READY FOR US TO TAKE A STEP FORWARD.
WE HAVE BEEN AS, AS PERDU SAID, TALKING ABOUT THIS REVISION REQUEST FOR QUITE SOME TIME.
UH, WE DO NEED TO GET SOMETHING ON THE BOOKS, UH, RELATED TO COMPLYING AND, AND MEETING THE NEEDS THAT WE WERE GIVEN BY THE LEGISLATURE.
UM, I HAVE SEVERAL COMMENTS THAT I WOULD LOVE TO MAKE BACK TO SOME OF THE THINGS THAT HAVE BEEN SAID TODAY.
BUT RATHER THAN EXTENDING THE DAY DEBATE, I'M GONNA HOLD THOSE THINGS BACK AND, AND, AND EAGERLY, UH, BE PREPARED FOR A FOLLOW ON DISCUSSION AS WE, AS WE HAVE SUBSEQUENT REVISIONS, TO TRY TO ADDRESS SOME OF THESE AREAS OF CONCERN.
BUT I DON'T THINK IT'S APPROPRIATE, UH, GIVEN THE TIME WE HAVE TO GET SOMETHING DONE IN THE TIME PERIOD, WE NEED TO GET IT DONE, UH, TO DIVE INTO THOSE THINGS TODAY.
I THINK THIS IS A SUBSTANTIAL STEP IN THE RIGHT DIRECTION.
I KNOW THAT WE FELT LIKE WE SHOULD HAVE GONE EVEN FARTHER THAN IS EXPRESSED HERE, BUT WE HAVE BEEN VERY SUPPORTIVE OF WHAT OUR CUTS BROUGHT FORWARD, UM, BECAUSE WE THINK IT'S A SUBSTANTIAL STEP IN THE RIGHT DIRECTION BEYOND WHAT WE'VE BEEN DOING HISTORICALLY.
AND SO WE'RE EAGER TO MOVE FORWARD AND WHEN, IF YOU NEED A MOTION AND WHEN YOU'RE READY FOR IT, I WILL BE PREPARED TO MAKE THAT FOR YOU.
YOU KNOW, I'LL QUOTE BARKSDALE QUOTING MYSELF, WE WE'RE NOT GONNA PREDETERMINE, SO I, I'M HAPPY FOR YOU TO MAKE WHATEVER MOTION YOU WOULD LIKE TO MAKE WHEN YOU'D LIKE TO MAKE IT.
UM, I, I WOULD, I WOULD, I WOULD, AS ERCOT HAS SUGGESTED, MOVE TO APPROVE AS RECOMMENDED.
UM, ARE THERE ANY OTHER COMMENT? I MEAN, I KNOW THAT I, I THINK ALL THE COMMENT THAT GOT MADE OR THE REVISIONS THAT WERE MADE NECESSARY TO INCORPORATE THE RIGHT PAPER MADE IT INTO THE RECOMMENDATION REPORT.
SO MY MOTION IS THAT WE APPROVE AS RECOMMENDED, UM, BY PRS.
IS, IS THERE A SECOND TO RICHARD'S MOTION? OKAY.
LET'S, WE CAN FINISH TAKING THE, THE QUEUE THOUGH.
UM, SO WE WILL GO TO BILL BARNES.
YEAH, I JUST MAINLY WANTED TO ASK, UH, ERCOT, WHEN DO YOU THINK WE'RE GONNA START TO DISCUSS SOME OF THESE LARGE LOAD ISSUES THAT ARE IMPACTING THESE PROCESSES? THE 6.9, UH, WHERE WE CITE, WHERE WE DETERMINE WHERE WE PLACE GENERATION.
I, I THINK SOME OF OUR CONCERNS IS THAT WE START TO APPROVE TRANSMISSION PROJECTS THROUGH THIS ADOPTED POLICY, BUT WE DON'T HAVE A FULL CLEAR PICTURE ON HOW THAT WORKS.
SO I APPRECIATE, UH, T'S THOUGHTS ON WHERE AND WHEN YOU PLAN TO START, UH, TEEING THESE DISCUSSIONS UP FOR STAKEHOLDERS.
UH, THIS IS, AGAIN, UH, WE ARE THIS, AS I, AS I MENTIONED IN THE, IN THE, IN THIS PREVIOUS DISCUSSIONS AT ROSS AND OTHER PLACES, THIS ISSUE OF, YOU KNOW, WHERE WE DON'T HAVE SUFFICIENT GENERATORS TO MODEL IN THE FUTURE, THIS IS NOT JUST LIMITED TO THIS CONGESTION COST TEST.
THIS IS A BROADER ISSUE IN PLANNING, WHICH WE HAVE MADE SOME ASSUMPTIONS MOVING INTO THIS YEAR BECAUSE OF ALL THIS, YOU KNOW, SIGNIFICANT INCREASE IN LOAD.
SO WE ARE WORKING ON ADDRESSING THIS, UH, REVISITING THE SECTION PLAN SECTION OF THE PLANNING AT 6.9, WHERE IT CLEARLY LAYS OUT WHAT ARE THE, YOU KNOW, CURRENT, UH, RULES TO INCLUDE ADDITIONAL GENERATION IN THE CASE.
SO, UH, WE ARE WORKING, UM, ON A PIG, WHICH IS, YOU KNOW, IT'S STILL INTERNAL TO OUR COT, BUT I ANTICIPATE TO HAVE THOSE BROUGHT TO THE STAKEHOLDERS SOMETIME EARLY NEXT YEAR.
I WOULD SAY LIKE JANUARY TIMEFRAME.
AND IT'LL GO THROUGH THE NORMAL STAKEHOLDER PROCESS.
WE WILL BRING TO PLWG FOR DISCUSSIONS, AND THEN SUBSEQUENTLY IT'LL GO TO THE OTHER STAKEHOLDERS GROUP.
AND I'LL BE MORE THAN HAPPY TO BRING IT TO ANY OTHER, YOU KNOW, WE, WE, WE WILL TRY TO BRING THAT, UH, P OR CONCEPT BEFORE WE FILE THE P.
SO WE COULD JUST GIVE A, YOU KNOW, PREVIEW OF WHAT, WHAT WE ARE PLANNING TO FILE.
AND, UM, YOU KNOW, I, YOU KNOW, RICHARD, I, I, I, I RECOGNIZE THAT, YOU KNOW, I THINK YOUR MOTION IS BASED ON THE FACT THAT THERE'S BEEN SOME ACTIVITY THAT HAS BEEN GOING ON, YOU KNOW, ON THIS FOR, FOR SOME TIME.
BUT REALISTICALLY, YOU KNOW, THE, THE ACTUAL
[01:10:01]
PROPOSAL HAS JUST HIT, YOU KNOW, JUST HIT US IN THE LAST THREE MONTHS.AND SO, UH, I'VE HEARD FROM A LOT OF FOLKS AND, AND EVEN INCLUDING SOME FOLKS THAT PROBABLY DON'T AGREE WITH LUMINANT ON, UH, YOU KNOW, THE SUBSTANCE OF WHAT WE'VE PUT OUT THERE THAT, YOU KNOW, THEY, THERE STILL NEEDS TO BE SOME ADDITIONAL DISCUSSION TO GET THIS RIGHT.
AND, YOU KNOW, WHILE I, I COULD SUPPORT LUMINANCE COMMENTS, I WOULD BE WILLING TO ENDORSE THOSE AS A WAY TO MOVE FORWARD.
I, I CANNOT VOTE IN FAVOR OF MOVING THE PRS REPORT FORWARD.
UM, SO I, I WOULD LIKE TO RECOGNIZE WHAT I'VE HEARD FROM A LOT OF MY COLLEAGUES TODAY, WHICH IS, YOU KNOW, WE CAN PROBABLY STILL MAKE SOME PROGRESS AND HAVE, YOU KNOW, AND, AND MAKE SOME FURTHER PERFECTIONS TO THIS IN RELATIVELY SHORT ORDER, RECOGNIZING THAT THERE IS SIGNIFICANT INTEREST IN, IN SEEING PROGRESS.
AND, YOU KNOW, I, I GO SO FAR AS TO SAY, SHOOT, TO HAVE SOMETHING BACK TO THE
SO REALLY, WE'VE, WE'VE ONLY, UH, YOU KNOW, WE'VE ONLY MISSED TWO MONTHS.
AND WITH THAT IN MIND, I WOULD ACTUALLY LIKE TO OFFER A MOTION TO TABLE.
IS THERE A SECOND TO LUMINANCE? MOTION TO TABLE.
FROM BRIAN SAMS. ALL RIGHT, COREY, SO WE TAKE UP THE MOTION TO TABLE FIRST.
IF THE MOTION TO TABLE FAILS, WE'LL GO BACK TO RICHARD'S MOTION TO RECOMMEND APPROVAL AS SENT BY PRS.
I DON'T SEE ANY FURTHER COMMENTS.
I JUST WANTED TO ASK NED JUST TO, HE MAY HAVE JUST SAID IT, I JUST MISSED WHAT IS HE HOPING TO GET ACCOMPLISHED? IS THERE, IS THERE A, IS THERE, UM, SOME KIND OF PRODUCT THAT, THAT WE WOULD HAVE BEFORE THE NEXT MEETING? SO, ERIC, I THINK THAT THERE'S PROBABLY A COUPLE TRACKS ON THAT.
ONE IS, YOU KNOW, GETTING SOME ADDITIONAL, UH, DETAIL FROM THE WHITE PAPER POTENTIALLY INTO THE, INTO THE REVISION REQUEST, BECAUSE WE DON'T HAVE A WHITE PAPER REVISION REQUEST PROCESS.
AND CLEARLY THE, YOU KNOW, THE, THE DETAILS OF THAT WHITE PAPER, UH, ARE IMPORTANT AND HAVE REAL WORLD CONSEQUENCES THAT STAKEHOLDERS ARE, UH, VERY COGNIZANT OF.
I THINK ANOTHER TRACK IS, UH, YOU KNOW, LOOKING FURTHER AT THIS, UH, AT THE, THE GROSS LOAD REDUCTION, SEEING IF THERE'S A WAY TO FIND AN INTERIM VALUE THAT IS PERHAPS MORE ACCEPTABLE TO STAKEHOLDERS THAN THE 0.25% MULTIPLIER THAT ILLUMINATE PUT TOGETHER.
AND I'LL BE THE FIRST TO ADMIT IT WAS A, IT WAS A QUICK RESPONSE.
'CAUSE WE'RE TRYING TO RESPOND ON A, YOU KNOW, A, A FAST TRACK PROPOSAL.
BUT WE'D BE HAPPY TO, TO PUT SOME MORE, UH, SHARPEN THE PENCIL ON THAT AND, UH, HAVE A MORE ROBUST DISCUSSION AND SEE IF THERE'S A MORE APPROPRIATE WAY TO, UH, ADDRESS THE, THE, THE SHORTCOMINGS OF THE GROSS LOAD COST TEST THAT, UM, YOU KNOW, E THREE'S REPORT HIGHLIGHTED AND, AND
SO I, I THINK THAT WOULD BE THE, THE INTENT IS TO AT LEAST HIT THOSE TWO ITEMS. OKAY.
DOES THAT ANSWER YOUR QUESTION, ERIC? ALL RIGHT.
SO, COREY, THIS IS THE MOTION TO TABLE NPR 1247.
ALRIGHT, ON THE MOTION TO TABLE 1247, WE WILL START UP WITH THE CONSUMERS WITH NAVA FOR ERIC? YES.
MIKE? NO, THANK YOU EMILY FOR BLAKE.
ONTO OUR INDEPENDENT GENERATORS.
THANK SIR, SIR NED? THAT WOULD BE, YES.
[01:15:05]
NO.CAN YOU HEAR ME? OH, I, I CAN HEAR YOU NOW.
I GOT YOUR, NO, THANK YOU, JAY.
MOTION TO TABLE FAILS 40%, FOUR 60% AGAINST ONE ABSTENTION.
SO THAT WILL TAKE US BACK TO RICHARD AND JOSE'S MOTION.
WE'LL, WE'LL GIVE YOU 30 SECONDS.
AND JUST LIKE THAT, WE'RE BACK TO RICHARD'S MOTION TO RECOMMEND APPROVAL OF 1247 AS RECOMMENDED BY PRS AND LAST WEEK'S PRS REPORT.
YEAH, THEY'RE READY TO HIT IT.
ON THIS MOTION WE WILL START BACK UP WITH THE CONSUMERS WITH NAVA.
FOR ERIC, CAN YOU CALL MY NAME AT THE VERY END? SURE.
ONTO OUR INDEPENDENT GENERATORS.
NED, RESPECTFULLY NO THANK YOU.
KEITH GOT YOUR YES IN CHAT, KEITH.
AND ALICIA? YES, RESPECTFULLY.
MOTION CARRIES 89% FOR THREE NOS AND ONE ABSTENTION.
CA CAITLIN, CAN I HAVE A MOMENT? SURE.
SO, YOU KNOW, JUST SO WE KNOW, WE REMEMBER WE'RE ALL SITTING AROUND THE ADULT TABLE AND COLLABORATING SO WELL, UM, I'VE BEEN REMISS BECAUSE MUCH EARLIER IN THIS YEAR, I HAD, I HAD MADE, UH, MY MIND THAT I NEEDED TO AWARD ONE OF OUR MEMBERS, UH, A RICHARD ROSS GOLD STAR.
UM, AND IT WAS FOR BEING A TAC MEMBER MACHINE.
AND I DO WANNA APOLOGIZE TO HIM THAT IT IS WRINKLED, AND I PROMISE IT IS NOT WRINKLED BECAUSE I WADDED IT UP WHEN YOU WERE MAKING COMMENTS TODAY.
UM, BUT, UH, I DO WANT TO RECOGNIZE, UH, NED, UH, BECAUSE IF Y'ALL WILL REMEMBER HE WAS READING COMMENTS UP UNTIL TWO O'CLOCK IN THE MORNING THAT I THINK ERIC HAD SUBMITTED ON ANOTHER TOUGH SUBJECT WE WERE DEALING WITH.
AND SO, NED, IN SPITE OF OUR DISAGREEMENT, I REALLY DO APPRECIATE EVERYTHING YOU DO FOR THE DISCUSSION.
'CAUSE I THINK IT'S IMPORTANT WE HAVE A GOOD COLLABORATIVE DISCUSSION.
AND SO I HAVE YOUR, UH, RICHARD BROS GOLD STAR, AS WELL AS THE CERTIFICATE OF AUTHENTICITY.
AND IT DOES COME IN TIME FOR YOU TO PUT THIS IN YOUR PERFORMANCE APPRAISAL FOR THIS YEAR, I HOPE.
MUCH APPRECIATED, RICHARD, AND, UH, APPRECIATE YOUR COLLABORATION.
DO, DO YOU HAVE A SPEECH PREPARED, NED, EVEN WHEN WE DISAGREE, IT'S IMPORTANT THAT WE, UH, WE HAVE A GOOD DISCUSSION.
OKAY, WELL, WE WILL KEEP MOVING.
WE, DIANE, DIANA, WE FINISHED WITH YOUR REPORT.
JUST LAST POINT, THERE WAS SOME CONVERSATION AT THE END OF PRS IF WE NEEDED TO HAVE A
[01:20:01]
DECEMBER MEETING.AND WE WILL HAVE A DECEMBER MEETING FOR PRS, IF THAT WILL BE REMOTE OR IN PERSON.
WE HAVEN'T DECIDED YET, BUT JUST TO LET FOLKS KNOW, WE WILL HAVE A PRS MEETING IN DECEMBER.
SO I'M BEING TOLD LUNCH IS HERE.
DO WE WANNA TAKE A 10 MINUTE BREAK AND GO GET IT AND COME BACK? OKAY, LET'S, LET'S DO THAT.
SO LET'S, LET'S JUST COME BACK AT, AT 1230 BECAUSE WE, WE STARTED LATE AND THEN START WORKING THROUGH LUNCH.
DOES THAT WORK FOR EVERYBODY? YEAH, EXACTLY.
LET'S GO AHEAD AND GET BACK STARTED.
UH, BOB HILTON, WE'VE GOT AG SPRINGER ON TO RESPOND TO YOUR EARLIER QUESTION.
SO AG IF YOU'RE AVAILABLE, I DON'T KNOW IF WE NEED BOB TO RESTATE HIS, HIS QUESTION OR REQUEST.
YEAH, I JUST WANTED TO CHECK ON THE DATE FOR THE NEXT NETWORK MODEL.
'CAUSE I KNOW I'D A, THERE'S A SCHEDULE OUT THERE AND I JUST DON'T HAVE IT WITH ME.
UM, SO TODD, IF I'M UNDERSTANDING YOUR QUESTION CORRECTLY, UM, I, I THINK THIS MAYBE FOLLOWS ALONG THE LINES OF SOME OF THE DISCUSSION THAT WAS HAD AT THE SEPTEMBER PRS.
UM, YOU KNOW, I THINK THERE WAS A CONCERN EXPRESSED BY SOME STAKEHOLDERS THAT THIS NOT BE IMPLEMENTED IN A WAY THAT PROJECTS THAT WOULD BE ELIGIBLE FOR A PRODUCTION LOAD DATE UNDER THE CURRENT THREE MONTH CALENDAR WOULD SUDDENLY BECOME INELIGIBLE.
UM, AND ERCOT WAS COMFORTABLE WITH THAT APPROACH.
UM, I THINK WE WERE LOOKING AT A, A MARCH 1ST IMPLEMENTATION DATE.
SO THAT WOULD BE THE FIRST, UH, FIRST MONTH THAT THE, THE NEW DEADLINE WOULD BE IN EFFECT.
AND SO THEN, THEN THE, SO YOU'RE LOOKING AT MARCH 1ST IS WHAT YOU'RE LOOKING AT, RIGHT? IS WHAT, SOMEWHERE AROUND THERE? YES.
MM-HMM,
ALRIGHT, LET'S MOVE ON TO AGENDA ITEM NUMBER
[6. Revision Requests Tabled at TAC (Possible Vote)]
SIX, REVISION REQUEST TABLED ATTACK.UH, THE FIRST ITEM THAT WE HAVE IS NPRR 1180, AND WE'VE HAD A COUPLE OF SETS OF COMMENTS FILED, UH, HERE IN THE LAST COUPLE OF DAYS.
I THINK WE'LL START WITH THE NOVEMBER 18TH OPEC COMMENTS.
WOULD SOMEONE FROM OPEC LIKE TO WALK US THROUGH THOSE NAVA? SURE.
FIRST OF ALL, THANK YOU VERY MUCH FOR THIS OPPORTUNITY TO SPEAK ON THIS NPR 1180 OPAC FILED TWO SET OF COMMENTS ON 1118 AND 1119 ON THE SUPPLEMENTAL COMMENT.
UH, I DON'T WANT TO REACH, UH, EVERYTHING IN THERE, BUT, UH, I, I LIKE TO HIGHLIGHT FEW IMPORTANT THINGS THERE.
FIRST OF ALL, OPEC SUPPORTS THE LEGISLATIVE INTENT OF BUILDING AND INVESTING TRANSMISSION LINE IN SOME SPECIFIC AREAS.
HOWEVER, OPEC STRESS THE IMPORTANCE OF ENSURING THAT THE LOAD PROJECTS AND USED FOR PLANNING ARE AS ACCURATE AS POSSIBLE.
IF THIS IS NOT ADDRESSED TODAY, THIS, THERE IS A RISK OF UNINTENDED CONSEQUENCES, PARTICULARLY IF LOAD THE STUDY ARE NOT THOROUGH OR ACCURATE, WHILE BUILDING TRANSMISSION TO MEET ACTUAL LOAD IS NECESSARY.
OVERBUILDING OF TRANSMISSION COULD RESULT IN UNNECESSARY COST THAT WOULD ULTIMATELY BE BORN BY RESIDENTIAL CONSUMERS.
IN LIGHT OF THESE CONCERNS, OPEC PROPOSE, CAN YOU PLEASE, UH, UH, 19TH COMMENT PLEASE.
OH, CAN YOU GO A LITTLE BIT DOWN? UH, YEAH, THAT ONE, RIGHT? YEAH.
SO, SO IN, IN LIGHT OF THESE CONCERNS, OPAC PROPOSED THE FOLLOWING, REVISING THE SUBSTANTIATE LOAD DEFINITION IN 10 30 24 TAC REPORT.
AS REFLECTED IN THE SCREEN, OOC BELIEVED THAT THIS LANGUAGE CHANGE IS THE MIDDLE GROUND FOR STAKEHOLDERS.
IF YOU ALL LIKE IT, PLEASE SPEAK UP.
UM, WE HAD A LENGTHY DISCUSSION ABOUT THIS NPRR LAST
[01:25:01]
MONTH, AND I, I AGREE WITH NAVA IN PART THAT CONSUMERS SUPPORT THIS NPRR BECAUSE THERE'S, AS WE ALL KNOW, TREMENDOUS GROWTH WITHIN OUR SYSTEM AND EXPANDING TRANSMISSION, HAVING A PROCESS TO EXPAND TRANSMISSION INTO THOSE AREAS OF GROWTH IS GOOD FOR CONSUMERS.UM, WE DISCUSSED THIS ISSUE LAST MONTH OF VALIDATION, AND I'M REPEAT WHAT I SAID THEN, IF I CAN FIND IT ON MY COMPUTER, THAT THE COMMISSION RULE CONTEMPLATES THAT WE WILL HAVE VALIDATION WHERE IT SAYS THE FORECASTED LOAD GROWTH AND ADDITIONAL LOAD CURRENTLY SEEKING INTERCONNECTION MUST BE SUBSTANTIATED BY QUANTIFIABLE EVIDENCE OF PROJECTED LOAD GROWTH.
I THINK THAT THAT VALIDATION, UM, AND SUBSTANTIATION IS AN IMPORTANT STEP IN THIS PROCESS.
BUT AS I SAID LAST MONTH, I THINK THIS NPRR IS READY TO GO, UM, IF, AND, AND, AND I BELIEVE THERE'S A LOT OF PROJECTS WAITING TO HAVE THIS PROCESS IN PLACE, AND WE NEED TO GET MOVING ON THOSE PROJECTS.
AND SO I SUPPORT HAVING A, A STEP AS OPEC IS PROPOSING TO CONDUCT THAT VALIDATION.
BUT I THINK WE CAN PUT MORE MEAT ON THESE BONES AND, AND HAVE A CLEARER PROCESS.
SO WHAT I'D LIKE TO DO IS MOVE FORWARD WITH THE NPRR TODAY AS RECOMMENDED BY THE PRS, BUT WITH A COMMITMENT FROM ALL OF US THAT THERE WILL BE A FOLLOW UP REVISION REQUEST THAT WILL DRILL DOWN INTO THIS VALIDATION PROCESS, ESPECIALLY AS WE'RE, WE'RE GONNA START THE FORECASTED LOAD AND OFFICER LETTER PROCESS FOR THE SECOND TIME NEXT YEAR.
I SEE BOB AND REMI IN THE QUEUE, AND THEN AFTER THAT I'M GONNA GO TO MARTHA TO WALK THROUGH THE ENCORE COMMENTS.
YEAH, I, THAT IS REALLY VAGUE AND I'M NOT SURE WHAT THAT MEANS AND WHAT YOU WOULD DO TO REALLY COMPLY WITH THAT.
SO THAT'S WHAT CONCERNS ME A LITTLE BIT.
SO I'M KIND OF IN THE CAMP WITH MARK THAT I THINK THIS WOULD CONFUSE THE ISSUE TO SOME DEGREE, AND YOU DON'T KNOW WHAT, AND WHO'S GONNA MAKE A FINAL THEN.
DOES THAT MEAN THAT, THAT THERE'S GONNA BE A DETERMINATION ATTESTATION, SAY, PUT IN AND SAYS THIS IS A REAL LOAD, THEN THERE'S GONNA BE SOME KIND OF DOCUMENTATION BEHIND THAT.
WE DON'T KNOW WHAT IT IS OR, OR HAVE ANY CRITERIA AROUND IT.
AND THEN ERCOT OR SOMEBODY IS GOING TO SAY, YES, I AGREE.
IS THAT I, I, I'M JUST NOT SURE HOW THIS ALL WORKS.
SO I, I'M, I'M, I'M WITH MARK ON THIS.
I THINK WE NEED TO MOVE AHEAD WITH OUT THAT IN THERE AND THEN CIRCLE UP WITH SEVERAL OF THE THINGS THAT WE KNOW WE'VE GOT TO DO.
UH, I THINK THERE WERE SOME MEETINGS THAT SAID THERE'S GONNA BE SOME ADDITIONAL WORK TO BE DONE ON SOME OF THE, UH, PARAMETERS AROUND THIS THAT WE WERE LOOKING AT AND TALKED ABOUT LAST MONTH.
SO I THINK WE NEED TO MOVE AHEAD WITH IT THE WAY PRS HAD IT RMI.
UM, SO THANK YOU FOR THE WORK THAT HAS BEEN DONE IN THIS NPRR BY ALL OF THE STAKEHOLDERS.
UH, WE ARE ONE OF THE COMPANIES WHO HAD SIGNIFICANT CONCERNS WITH THIS AND, UM, WANTED TO HAVE THIS TABLE LAST, UM, UH, LAST MONTH.
UM, WE STILL DO HAVE SIGNIFICANT CONCERNS WITH THE TRANSPARENCY AND STANDARDIZATION OF THE PROCESS, AND, UH, FEEL THAT, UM, HAVING TRANSPARENCY AND STANDARDIZATION OF THE ATTESTATION IS VERY IMPORTANT FOR THE MARKET TO BE ABLE TO BRING THE, UH, RESOURCES, DISPATCHABLE RESOURCES NEEDED TO RELIABLY SERVE THIS LOAD.
UM, THAT BEING SAID, UM, THE TRANSPARENCY WILL ALLOW THE MARKET TO EVALUATE THE POTENTIAL FOR THIS LOAD COMING, AND THEN THAT WILL HELP THEM EVALUATE THE RISK OF INVESTING IN THIS GENERATION.
UH, SO IT, ALL OF THOSE, I THINK IT IS GOOD FOR EVERYONE IN THE STAKEHOLDER PROCESS.
SO ALL OF THAT BEING SAID, UM, WE, UH, HAVE HAD, UH, MULTIPLE CALLS WITH, UH, T DSPS IN THE LAST THREE WEEKS.
AND EVEN THOUGH WE WOULD REALLY WANT TO SEE, UH, A LANGUAGE CHANGE TO SAY THAT THE TDSP ATTEST STATION IS STANDARDIZED, WE DO UNDERSTAND THAT, UH, THIS, THAT
[01:30:01]
PROCESS MIGHT TAKE LONGER TIME AND IT MAY BE PUCT CHANGE OR LEGISLATIVE CHANGE.UM, SO BECAUSE WE HAVE GOTTEN ASSURANCE FROM, UH, T DSPS LIKE ENCORE, UH, CENTERPOINT, A-P-L-C-R-A, UH, TNMP, AND ALL TO WORK WITH US, UH, THE MARKET TO, UH, FIGURE OUT WHAT, HOW THIS CAN BE STANDARDIZED AND HOW, UH, THE TRANSPARENCY CAN BE IMPROVED, WE ARE NOT GOING TO BE OPPOSED TO THIS NPRR.
UM, AND, UH, WE REALLY LOOK FORWARD TO WORKING WITH YOU ALL.
AND, UH, THAT MEANS THAT WE ARE VERY, VERY, UH, APPRECIATIVE OF ALL THE EFFORT PUT IN BY ENCORE FOR, UM, ARRANGING ALL THOSE CALLS AND, UH, FILING THE COMMENTS TO OFFICIALLY, UH, SAY THAT ALL THE TEDIOUS PIECE WILL WORK WITH THE MARKET.
SO, UM, WANTED TO EXPRESS THAT APPRECIATION AND, UH, STATE OUR STANCE.
I THINK THIS IS PROBABLY A GOOD TIME TO ASK MARTHA TO RUN THROUGH THE ENCORE COMMENTS.
THEN WE CAN COME BACK TO THE, THE QUEUE THAT WE HAVE.
MARTHA, I I THINK THERE IS, UH, MICHELLE ON THE CHAT.
I CAN JUST GO IN THE QUEUE ORDER.
I THINK THERE'S A COUPLE FOLKS.
CAN Y'ALL HEAR ME LOUD AND CLEAR? GREAT.
UM, TCPA FILED COMMENTS, UH, FOR THE LAST MEETING AND I, WE HAVE HAD, UH, SEVERAL MEETINGS WITH ENCORE AND THE OTHER T DSPS.
UM, I THINK OUR MEMBERS ARE VERY COMFORTABLE WITH THE COMMITMENT THAT THEY HAVE MADE, UM, THEY BEING THE, THE TDS PS TO WORK WITH US ON TRANSPARENCY AND, AND SOME STANDARDIZATION.
AND, UH, THE DISCUSSION WE'VE HAD FOR THE BENEFIT OF THE REST OF Y'ALL, UM, IN THE ROOM IS THAT, UH, ENCORE AND T DSPS ARE GONNA WORK ON A, A STRAW MAN PROPOSAL FOR ANOTHER NPRR THAT WOULD ADDRESS THOSE THINGS.
AND, AND WE'LL WORK TOGETHER ON THAT, PROBABLY LOOKING AT THE BEGINNING OF THE NEW YEAR, JUST GIVEN EVERYTHING THAT'S GOING ON, UM, AND THE HOLIDAYS COMING UP.
AND SO I THINK WE ARE VERY COMFORTABLE WITH MOVING THIS FORWARD, UM, GIVEN THAT COMMITMENT AND, UM, THE, THE REALLY, UH, GOOD DISCUSSIONS THAT WE HAVE BEEN HAVING.
UM, JUST REALLY WANTED TO THANK, UH, ENCORE IN PARTICULAR FOR SPEARHEADING, UH, THAT WITH US, UM, AS WELL AS THE OTHER T DSPS FOR WORKING WITH US ON THIS.
AND I THINK WE WILL GET TO A REALLY GOOD PLACE.
UM, BUT JUST WANTED TO MAKE SURE THAT Y'ALL WERE AWARE THAT WE ARE FINE WITH MOVING THIS FORWARD.
UM, WELL, MICHELLE, I THINK YOU, YOU PUT IT FAIRLY WELL, AND, YOU KNOW, I WANTED, I DID WANT TO SAY NAVA, YOU KNOW, I CERTAINLY APPRECIATE THE, THE, THE INTENT BEHIND OPEX COMMENTS.
AND, UH, I THINK WHAT YOU'VE, YOU'VE HEARD FROM A LOT OF FOLKS IS THAT WE ALL WANT TO HAVE, UM, YOU KNOW, ADDITIONAL TRANSPARENCY AND, AND CONFIDENCE AND, AND WHAT WE SEE IN THAT FORECAST.
AND, UM, I THINK ENCORE'S COMMENTS AND THEIR COMMITMENT TO DO THAT PROCESS IS VERY ENCOURAGING.
AND SO ALSO WANNA ECHO THE, UH, THE APPRECIATION TO THEM AND THE, THE REST OF THE TSPS FOR COMING TOGETHER TO HAVE THAT DISCUSSION.
AND, UH, I THINK THAT'S A, THAT'S A GOOD PATH FORWARD.
I DID ACTUALLY HAVE ONE QUESTION TO PUT UP FOR FOLKS, AND THIS IS IT IN THE RELATED IT, AND I HOPE THIS ISN'T GOING TOO FAR OUT OF TURN, BUT AS I'M READING THE RELATED, UH, FIGURE 1 0 7, YOU KNOW, I SEE THAT THERE IS SOME LANGUAGE IN THERE THAT SAYS THAT, YOU KNOW, WHEN A PRO, UH, AN ACTUAL PROJECT COMES THAT'S PROPOSED, IT HAS, IT'S RECOMMENDED THAT IT HAVE ADDITIONAL INFORMATION TO SUPPORT THE SUBSTANTIATED LOAD IN THERE.
AND SO I, I WAS JUST CURIOUS IF, IF I'M CORRECTLY READING THOSE TWO TOGETHER TO, TO ALSO KIND OF POINT TO THE SAME, THE SAME, UM, OUTCOME, WHICH IS, YOU KNOW, WE, WE TAKE THE TESTED LOAD AND WE, WE ALL AGREE THAT WE WANT TO GET SOME ADDITIONAL, UH, CLARITY AND TRANSPARENCY IN THAT, BUT WHEN IT, THE RUBBER HITS THE ROAD, THERE'S ALSO, UH, ANOTHER CHANCE FOR THE, THE REGIONAL PLANNING GROUP TO TAKE A CLOSER LOOK AT SOME OF THAT, UH, THAT INFORMATION.
BUT, UH, OVERALL, JUST WANTED TO, UM, SAY APPRECIATE THE, THE CONVERSATION SO FAR AND THEN JUST TOSS THAT ONE QUESTION UP.
[01:35:01]
READ IT THAT WAY, BUT WASN'T SURE.UH, ERCOT OR BU WOULD YOU LIKE TO RESPOND TO THAT? YEAH, THE, THE QUESTION REGARDING THE PIGGER OR WHICH, WHICH ONE CORRECT.
HOW TO, HOW TO READ THE TWO IN, IN COMBINATION, BECAUSE I THINK IN COMBINATION IT MAY HELP ADDRESS SOME OF THE, THE, THE, THE QUESTIONS THAT, THAT FOLKS HAVE RAISED.
SO I, I DON'T HAVE THE PIGGER IN FRONT OF ME.
IF YOU CAN BRING THE PICKER, SO IF YOU CAN POINT TO THE SECTION WHICH ONE YOU ARE REFERRING TO.
SO, UH, IT'S NOW IT'S 3 1, 2, 1 RIGHT THERE IN E.
SO, YOU KNOW, INFORMATION THAT SUPPORTS ANY LOAD VALUES THAT DIFFER FROM THE LOAD FORECAST, INCLUDING, UH, YOU KNOW, EVIDENCE DEMONSTRATING THAT THE SUBMITTED LOAD VALUE, SUBSTANTIATED LOAD.
AND THEN IN THE PROJECT EVALUATION, UH, ANY, YOU KNOW, AS APPLICABLE, ANY EVIDENCE OF SUBSTANTIATED LOAD.
UM, IT SEEMS LIKE THOSE WERE KIND OF CONNECTED CONCEPTUALLY WITH WHAT, WHAT FOLKS HAVE BEEN DISCUSSING IN, IN, UH, 1180 AS WELL.
YEAH, THIS, THIS LANGUAGE IS LIKE TYPICAL LANGUAGE WE USE.
SO IF THERE IS ANY ADDITIONAL INFORMATION THAT THE TSP WANTS TO SUBMIT, WE CAN, WE CAN, YOU KNOW, WE CAN RECEIVE THAT INFORMATION SHARED WITH RPG OR S OR THE RTP CASES, BUT I DON'T THINK WE ARE REQUIRING THEM TO SUBMIT ANYTHING.
THAT'S, THAT'S THE PRIMARY DISCUSSION IN THE, IN THE, IN THE, THE SET OF COMMENTS WE ARE TALKING ABOUT TODAY.
SO THIS LANGUAGE IS, YEAH, WE, FOR, FOR LAB OR ECONOMIC PROJECTS, YOU KNOW, THERE IS THE PROCESS, WHETHER IT'S RTP OR RPG, YOU KNOW, WE TAKE INFORMATION FROM THE, FROM THE TSPS, WHATEVER THEY PROVIDE.
THIS IS, THIS IS THE LANGUAGE WHICH SAYS, YOU KNOW, WE COULD, WE COULD USE THOSE TO PROVIDE ADDITIONAL EVIDENCE.
SO NOT REQUIRED, BUT CERTAINLY ENCOURAGED AND YEP.
AND IT CAN BE INCORPORATED INTO THAT PROCESS.
APPRECIATE THAT CLARIFICATION, AND SORRY FOR TAKING US OFF THAT TANGENT.
BOB, I SEE THAT YOU WERE IN THE QUEUE, BUT YOUR CARD'S DOWN.
DID YOU HAVE ANYTHING? OKAY, I'M GOOD.
UH, MARTHA HENSON WITH ENCORE.
UM, APPRECIATE THE FEEDBACK FROM OPEC HERE AND THE COMMENTS THEY'VE SUBMITTED.
I THINK, UH, FROM MY PERSPECTIVE, SOME OF THE LANGUAGE EDITS THEY'VE MADE ARE, ARE NOT WELL UNDERSTOOD.
AND, UM, I THINK ENCORE WOULD PREFER TO MOVE FORWARD WITH THE VERSION OF 1180 THAT PRS RECOMMENDED TO TAC LAST MONTH.
I WOULD ALSO, YOU KNOW, POINT OUT THE COMMENTS THAT ENCORE FILED MONDAY.
UM, THESE HAVE A, A PUBLIC COMMITMENT REFLECTED IN THEM FOR ENCORE, NOT FOR ANY OTHER TSPS, ALTHOUGH AS, AS SMI MENTIONED, THERE HAVE BEEN OTHERS INVOLVED IN DISCUSSIONS SINCE THE LAST TAC MEETING.
AND BASICALLY THOSE COMMENTS MEMORIALIZE OUR COMMITMENT TO PROVIDE ADDITIONAL DETAIL IN OUR FUTURE OFFICER LETTER SUBMISSIONS SUCH THAT THAT INFORMATION COULD ENABLE ERCOT TO, UH, PUBLICLY SHARE MORE DETAILS ABOUT THE LOAD SEEKING INTERCONNECTION, BOTH FROM A LOCATION STANDPOINT AND ALSO FROM THE PERSPECTIVE OF WHERE THOSE CUSTOMERS ARE IN THE INTERCONNECTION QUEUE PROCESS WITH US.
AND WE DO INVITE OTHER TSPS TO WORK, UH, ON THAT EFFORT WITH US.
AS MICHELLE MENTIONED THERE, WE PUT TOGETHER A STRAW MAN THAT WE'D LIKE TO BROADEN TO BE USED, UH, MORE WIDELY BY OTHER TSPS WHO'D LIKE TO WORK WITH THIS ON US IN THE COMING WEEKS.
AND IT'S MY HOPE THAT THE 2025 OFFICER LETTER PROCESS AND OUTPUTS OF THAT WILL THEREFORE HAVE MORE DETAILS, UM, AND TRANSPARENCY, WHICH IS THE CONCERNS THAT WE HAVE HEARD.
UM, I THINK ALSO THAT THIS, THIS EFFORT WILL ALSO, UM, HELP INFORM WHETHER ANY ADDITIONAL EDITS ARE NEEDED TO SECTION 2.1 OF THE PROTOCOLS TO REFLECT THIS AND, AND ALSO WHAT THOSE EDITS SHOULD SAY.
UM, BUT I THINK IT'S TOO EARLY RIGHT NOW TO TAKE A STAB AT, AT EDITING THIS LANGUAGE.
IT'S BEEN WELL VETTED THROUGH THE STAKEHOLDER PROCESS AND THE NPRR AND PLANNING GUIDEWIRE VISION HAVE BEEN PENDING FOR, I THINK, 20 MONTHS NOW.
SO, UH, THEY HAVE BEEN THOROUGHLY DISCUSSED, UH, ENCORE'S COMMITTED TO WORKING ON THIS EFFORT FURTHER.
AND TO THE EXTENT THAT THAT DOES INFORM SOME FUTURE REVISION REQUESTS, WE WILL, UH, BE HAPPY TO DISCUSS THOSE DETAILS AT THE APPROPRIATE TIME.
UM, WE SUPPORT MOVING, UH, IN PARA 1180 FORWARD, UM, BASED ON THE PRS REPORT,
[01:40:01]
WE SEE IT AS A, THE FIRST OF MANY, UH, RULE CHANGES THAT WE NEED TO ACCOMMODATE THE CURRENT REALITY, WHICH IS SIGNIFICANT LARGE LOAD GROWTH.WE ACKNOWLEDGE THE CONCERNS IN OPECS COMMENTS, WE SHARE THOSE CONCERNS.
UH, WE THINK THOUGH THAT THE PROCESS FOR RESOLVING THEM IS PROBABLY BETTER SUITED, UM, IN A SEPARATE PROCESS WORKING WITH, UM, ENCORE AND OTHER TSPS, WHICH WE APPRECIATE ENCORE'S COOPERATION ON THIS.
I THINK THIS IS TURNING INTO PROBABLY ONE OF THE BIGGEST CHALLENGES OUR MARKET FACES RIGHT NOW.
WE LOOK FORWARD TO WORKING WITH, UM, OTHER STAKEHOLDERS IN TDS AND GETTING THESE, UH, UH, FORECASTS, UM, MORE TRANSPARENCY SO THAT, UM, MARKET CAN DIGEST THAT AND RESPOND APPROPRIATELY.
THANKS, UH, JOHN ROSS HUBBARD.
UH, THIS IS JOHN ROSS HUBBARD WITH TIAC.
WE, UH, EXCUSE ME, AS BILL SAID, I MEAN, WE HAVE SIMILAR CONCERNS ABOUT WHETHER ALL THE FORECASTED LOAD WILL ACTUALLY MATERIALIZE.
UM, BUT, BUT WE DON'T, YOU KNOW, BUT WE SUPPORT THIS NPRR, YOU KNOW, PRIOR TO THIS NPRR AND, UH, HOUSE BILL 50 66 AND SENATE BILL 1281, THERE ARE BLIND SPOTS ABOUT THE AMOUNT OF LOAD COMING ONLINE.
AND SO THIS HAS REALLY HELPED TO, I THINK, OPEN EVERYONE'S EYES, UH, AND, AND TRY TO ADDRESS THAT ISSUE.
AND SO, I, I DON'T THINK THE RIGHT APPROACH AT THIS STAGE IS DELAYING THE, THE PACKAGE OF THIS NPRR.
UM, SO WE SUPPORT IT MOVING FORWARD TODAY.
RUSS, UH, BU DID YOU HAVE SOMETHING TO ADD? THANK YOU.
BU MECO, UM, WE, WE SUPPORT, UM, MOVING FORWARD WITH THIS REVISION REQUEST AS IT, UH, STANDS.
UH, I, I WOULD JUST WANTED TO BRING A COUPLE OF THINGS.
THIS IS THIS, AS MARTHA POINTED OUT, WE'VE BEEN WORKING ON THIS FOR SEVERAL MONTHS OR YEAR.
AND, UH, THIS IS, YOU KNOW, THIS IS A VERY IMPORTANT ISSUE FOR ERCOT BECAUSE WE ARE SEEING A SUBSTANTIAL LOAD INCREASE IN THE SYSTEM, AND WE WANTED TO MAKE SURE WE ARE IDENTIFYING THE TRANSMISSION NEEDS TO ADDRESS THIS IN, UH, THE NEED.
SO THERE IS ALREADY A CONCERN THAT, LIKE, YOU KNOW, TRANSMISSION, IT TAKES LONGER TO BUILD.
SO WE WANTED TO BE, YOU KNOW, THE INTENT OF WATSON HOSPITAL 50 66 AND THE SUBSEQUENT LEGISLATION CHANGE AND WHAT'S PROPOSED HERE ALIGNS TO DO THAT.
AND I ALSO WANT TO NOTE THAT, YEAH, THERE IS, WE ARE, WE'RE SUPPORTIVE OF THE GETTING ADDITIONAL TRANSPARENCY.
IF, YOU KNOW, THAT'S WHERE THE STAKEHOLDERS WE WOULD, WE WOULD WORK WITH THEM.
AND, BUT AT THE END, UH, WE SEE THAT, YOU KNOW, THE TRANSMISSION GETS APPROVED BY ERCOT, DOESN'T MEAN IT'S ALL GETS BILLED.
IT'S ULTIMATELY THE COMMISSION HAS THE, YOU KNOW, AUTHORITY TO DETERMINE THE NEED.
AND, UH, YOU KNOW, WE AT THIS, AT THIS TIME, WE WOULD LIKE TO MOVE FORWARD WITH THIS.
BU I'M NOT SEEING ANY CARDS OR ANYTHING IN THE QUEUE.
UH, DO WE HAVE A MOTION TO MOVE THIS FORWARD, RICHARD? YES.
ACTUALLY, COLIN, IF I CAN JUMP IN REAL QUICK, JUST QUESTION FOR THE GROUP.
SINCE THIS 1, 11 80 ALSO HAS A RELATED PIGGER THAT Y'ALL ARE GONNA TAKE UP, WOULD Y'ALL WANT TO CONSIDER THEM AT THE SAME TIME IN THE SENSE THAT IF YOU ARE, FOR ONE, YOU'D WANT THE COMPANION TO MOVE ALONG, OR IF YOU WERE NO, OR ABSTAINING ON THE NPRR, YOU'D PROBABLY WANT TO DO THE SAME THING ON THE PIGGER.
DO WE WANT TO RUN THOSE TWO TOGETHER OR SEPARATE? IT'S LIKE TURKEY AND HAM.
HOW COULD I REFUSE? SO RICHARD, I'M ASSUMING YOUR MOTION WAS TO, IT WOULD BE WHAT'S ON SCREEN HERE? IT WOULD BE THE, YES, 1180 AS IT CAME FROM PRS WITH THE REVISED IA THAT JUST SHUFFLED THAT LANGUAGE DOWN INTO THE COMMENTS, AND THEN THE PIGGER AS IT CAME FROM ROSS.
CAN WE PUT THIS ON THE COMMONWEALTH BALLOT OR DO WE HAVE A INDIVIDUAL BALLOT? OKAY.
YEAH, NOBEL WANTS IT SEPARATE.
DID SUZIE, DID YOU GO TO SECOND? SECOND FROM BOB HILTON.
OKAY, THEN ON THAT MOTION FOR 1180 AND ITS RELATED PICKER, WE WILL START UP WITH THE CONSUMERS WITH NAVA FOR ERIC ABSTAIN.
ONTO OUR CO-OPS, MIKE WISE, ABSTAIN.
UM, BLAKE, WELCOME TO THE PARTY.
ON TO OUR INDEPENDENT GENERATORS, BRIAN? YES.
[01:45:01]
BOB HELTON? YES, SIR.AN AFFIRMATIVE? YES, THAT'S A OKAY.
SORRY ABOUT THAT, NED, ONTO THE IPS.
KEITH GOT YOUR YES IN SHOT, KEITH.
MOTION CARRIES FOR ABSTENTIONS.
ANY OTHER QUESTIONS OR COMMENTS HERE? RIGHT, WE ARE ON TO NPR 1190.
THIS WAS REMANDED BACK TO US FROM THE BOARD.
WE TABLED IT AT OCTOBER ATTACK.
I DON'T BELIEVE WE'VE FILED COMMENTS, BUT WE HAVE SOME, SOME VERBAL COMMENTS.
STAKEHOLDERS HAVE BEEN WORKING ON THIS.
YEAH, I'VE HAD SOME DISCUSSIONS WITH, UM, ERIC GOFF, BUT REALLY WANTED TO KIND OF PREVIEW A CONCEPT FOR THIS GROUP.
UM, WE, WE DON'T NEED TO GO THROUGH THE WHOLE BACKGROUND AGAIN, OR WE DID THAT LAST TIME.
THE THE NEW PART IS ACKNOWLEDGE, UM, THE CONSUMER'S CONCERNS THAT WE SHOULD NOT FIND OURSELVES IN A SITUATION WHERE HDL OVERRIDES BECOME A DOMINANT COMPONENT OF OUR MARKET.
AND WHICH MEANS WE WOULD BE MORE DEPENDENT ON, UM, THESE OUT MARKET PAYMENTS, WHICH IS, THAT'S NOT THE GOAL OF 1190.
THAT'S NOT THE GOAL FOR ANY OF US.
AND SO THE CONCEPT I WANTED TO FLOAT, TO TRY TO ADDRESS THE CONCERNS FROM THE CONSUMERS IS TO HAVE SOME TYPE OF LIKE ANNUAL, UH, SETTLEMENT, UH, TRIGGER THAT IF ERCOT, IF WE FIND OURSELVES IN A SITUATION WHERE WE'VE SPENT MORE THAN X MILLION DOLLARS WORTH OF HD OVERRIDE PAYMENTS, THEN THAT TRIGGERS A, A REVIEW OF THE LANGUAGE WITH THE INTENTION OF TIGHTENING UP THE, UM, THE, THE CONTRACTS THAT CAN BE ELIGIBLE FOR SETTLEMENT.
AND THERE WAS NO EXPECTATION THAT THIS WOULD GET RESOLVED TODAY.
THE THOUGHT WAS ACTUALLY WE REFER THIS TO WMS OR SOME WORKING GROUP AND WE KIND OF WORK ON THE CONCEPT AND THE DETAILS ON HOW THAT WOULD WORK THERE.
SO YOU WOULD, I WOULD ASK FOR A, A TABLE AND A REFER.
SO WE DON'T, I AM LOOKING AT CORY, WHO'S ME, OR MAYBE WE DON'T NEED A ME.
WE JUST KIND OF SAY, I JUST ASK.
HEY, WMS YEAH, THIS IS ON YOUR AGENDA.
WE CAN JUST ASK WMS TO LOOK AT IT.
I SEE A COUPLE COMMENTS THOUGH, BUT I, SO LET'S TAKE THOSE COMMENTS WHILE COREY DOES HIS THINKING OVER THERE.
UM, NED AND THEN MARK VIS CAITLYN.
BILL, UH, UH, IF I'M, I JUST WANT TO SAY BACK WHAT I THINK I HEARD, WHICH IS YOU, YOU BASICALLY SET A TRIGGER FOR NPR 1190 AS IT'S, AS IT SITS NOW THAT WOULD THEN, UH, BASICALLY RATCHET DOWN, UH, IT WOULD TRIGGER A RATCHETING DOWN IF WE WENT BEYOND A CERTAIN THRESHOLD, WHICH I THINK IS KIND OF SPLITTING THE BABY BETWEEN, LOOK, THIS DOESN'T HAPPEN VERY OFTEN.
UM, BUT IT SHOULD BE FAIR IN PRINCIPLE WHEN IT, WHEN IT DOES HAPPEN.
AND SO IS THAT, AM I THINKING ABOUT THAT THE RIGHT WAY? YEAH.
BUT THIS SHOULD TRULY BE THE RARE EXCEPTION, WHICH IS, I THINK OUR EXPERIENCE, WE'VE NOT SPENT A WHOLE LOT OF MONEY ON THIS ON AN ANNUAL BASIS.
I BELIEVE MAYBE YURI WAS AROUND A COUPLE MILLION DOLLARS, WHICH IS A ROUNDING ERROR IN TERMS OF THE COST FOR WHAT WE SEE IN THE ENERGY MARKET.
UM, AND THE, THE CONCERN FROM THE CONSUMER SIDE IS IF WE ADOPT 1190 AS PASS THROUGH TAC, IS THE POTENTIAL FOR IT TO BE EXPANDED IN HOW IT'S USED, WHICH COULD DRIVE UP THE COST? AND THAT'S NOT REALLY THAT, THAT'S NOT THE INTENTION.
AND SO, UM, THAT IS, THAT'S THE POINT NET IS THAT WE EXPECT THIS
[01:50:01]
TO BE A RARE OCCURRENCE.THE DOLLARS SHOULD NOT BE, UH, REACH A, A MATERIAL AMOUNT DURING THE COURSE OF A YEAR.
AND IF THAT HAPPENS, THEN SOMETHING IS GOING ON THAT, THAT NONE OF US REALLY WANTED TO OCCUR.
AND WE, THAT WOULD TRIGGER A WHOLESALE REVIEW OF THE HDO OVERRIDE PROCESS ITSELF.
AND ALSO WHAT, WHAT CONTRACTS ARE BEING ALLOWED THROUGH THE DOOR, ESSENTIALLY WITH THE INTENTION OF TIGHTENING THAT, UH, INTERPRETATION.
NOW THAT, THAT SEEMS TO ME LIKE A THOUGHTFUL SAFETY VALVE BILL.
SO I, I SUPPORT YOUR RECOMMENDATION TO, IF IT NEEDS TO GO TO WMS TO HAVE SOME MORE DISCUSSION.
THAT ALL SAID THAT, YOU KNOW, BUT WE STILL HAVE TO WORK OUT ALL THE DETAILS ON WHAT THAT LANGUAGE LOOKS LIKE.
SO, UM, WE'D RATHER DO THAT AT A LOWER SUBGROUP OR WORKING GROUP LEVEL TO KIND OF HAMMER OUT LANGUAGE.
I THOUGHT IT WAS MARKED, BUT I THINK IT'S BLAKE.
THIS SOUNDS PRETTY REASONABLE.
BILL, I APPRECIATE YOU BRINGING IT UP.
UH, WE'D BE INTERESTED IN, IN HAVING FURTHER DISCUSSIONS.
I THINK, YOU KNOW, THE, THE RATCHETING DOWN PIECE IS SOMETHING WE WANT TO PROBABLY SPEND A LOT OF TIME ON.
UH, THAT AND ALSO THE THRESHOLD LEVEL THAT'S SET.
BUT, UH, APPRECIATE YOU BRINGING THIS UP.
WE'D SUPPORT, UH, TALKING THROUGH IT FURTHER.
HE MIGHT BE HIDING FROM US, BUT I THINK WE CAN JUST ASK WMS TO SPEAK ABOUT IT.
YOU, ERIC, YOU HAVE THE OPPORTUNITY TO PUT THIS, ADD THIS TO YOUR ACTION ITEMS LIST IF YOU'D LIKE TO, THOUGHT YOU MIGHT BE INTERESTED IN THAT.
I THINK, YOU KNOW, THIS IS JUST ME SPEAKING.
I, I THINK IT MIGHT BE HELPFUL IF COMMENTS WERE FILED JUST SO THERE'S SOMETHING TO HAVE THE DISCUSSION AROUND.
'CAUSE OTHERWISE IT COULD BE KIND OF OPEN-ENDED, BUT I, YEAH, I WANTED TO WANNA FLOAT THE IDEA TO MAKE SURE THERE WASN'T STRONG OPPOSITION BEFORE WE INVESTED TIME IN DISCUSSION AND COMMENTS.
BUT, UH, I COORDINATED WITH ERIC GOFF A LITTLE BIT AND THE THOUGHT IS WE'D KIND OF HUDDLE UP PROBABLY WITH, UM, MR. SCHUBERT AS WELL AND DISCUSS HOW THIS COULD LOOK.
TAKE A PROPOSAL TO EITHER WMS OR WWMG, DISCUSS THAT, GET ANY FURTHER FEEDBACK, AND THEN, UM, FILE, IT'D BE NICE TO FILE JOINT COMMENTS THAT PROPOSE, UM, SOME LANGUAGE CHANGES.
I JUST SAY WE HAD A, A RECENT EXPERIENCE WHERE ERCOT CAME TO US AND WE CAME UP WITH THREE OPTIONS AND, YOU KNOW, TO HELP KIND OF GUIDE THEIR PROPOSAL.
I KIND OF SEE IT WORKING THE SAME WAY.
YEAH, I MEAN, THERE WILL BE WRITTEN COMMENTS FILED AT SOME POINT.
WE HAVE SOME MORE PEOPLE IN THE QUEUE.
JOHN RU HUBBARD, I, UH, JOHN RU HUBBARD WITH TICI HAVE SOME CONCERNS WITH THIS PROPOSED APPROACH.
AND THE, UM, I THINK FOR ONE, IT, IT WOULD EXPAND HDL OVERRIDE PAYMENTS, UM, WHICH, YOU KNOW, WE'VE BEEN OPPOSED TO.
AND THEN TWO, UM, I, I GUESS IT'S UNCLEAR WHAT WOULD HAPPEN IF SUCH A TRIGGER WAS REACHED.
UM, SO I, YEAH, I, I, I HAVE CONCERNS WITH THIS APPROACH AND I'M NOT SURE, UM, I, YEAH, I HAVE CONCERNS WITH THE APPROACH.
OKAY, AUSTIN, I, UH, I WAS JUST GONNA ASK, UM, IF YOU COULD INCLUDE US, BILL, I'D APPRECIATE IT.
I ALREADY HAVE A COUPLE THOUGHTS THAT I THINK WOULD BE HELPFUL.
AND I'M BITING MY TONGUE 'CAUSE WE'RE NOT, I DON'T WANT TO GET INTO DETAILS HERE.
BUT IF YOU'RE GONNA LIKE, COME TOGETHER WITH KIND OF A TIGHT SOMETHING PROPOSAL TIED IN A BOW, IF YOU COULD INCLUDE US, I'D APPRECIATE IT.
UM, NO, NO SHOWSTOPPERS OR ANYTHING, JUST, JUST SOME THOUGHTS.
ANY OTHER QUESTIONS OR COMMENTS? SO WE'LL KEEP NPR 1190 TABLED AND IT'S PRETEND REFERRED TO WMS. OKAY.
BUT THE DOING IT THIS WAY, THEY CAN, WE CAN WAIT ON WMS TO VOTE BEFORE.
WMS REPORTS TO Y'ALL SO YOU CAN DO WHATEVER YOU'D LIKE.
THE, THE REFERRAL AT THE SUBCOMMITTEE LEVEL IS, IS THE SORT OF, YOU KNOW, COLLEGIATE HANDSHAKE.
IF WE'RE ALL AT THE SAME LEVEL, WE PRS ARE GONNA TABLE IT AND WAIT FOR WMS TO GIVE US FEEDBACK OR VICE VERSA.
BUT ALL OF THOSE SUBCOMMITTEES REPORT TO TAC.
SO WHEN TAC IS READY FOR A VOTE, Y'ALL TAKE IT UP, YOU'VE GIVEN AN ACTION ITEM TO WMS. HOWEVER THEY BRING BACK THAT RESULT, THEY COME TO AGREEMENT ON FORMAL COMMENTS WOULD
[01:55:01]
BE GREAT.THEY COME BACK WITH, EVERYONE CAME TOGETHER AROUND THE EXISTING LANGUAGE, WHATEVER THAT FEEDBACK IS ON WHATEVER TIMELINE Y'ALL DICTATE.
ALWAYS RIGHT FOR ATTACK ACTION AT THE NEXT TIME.
SO MAYBE WE HAVE THEM REPORT BACK.
I THINK THE VOTE WOULD GET CONFUSING 'CAUSE IT'S NOT GOING TO PRS IN THIS CASE.
SO LET'S, LET'S JUST HEAR BACK FROM WMS. OKAY.
DOES THAT WORK FOR EVERYONE? ALRIGHT.
I THINK THAT CAN REMAIN TABLED.
AWAITING NPR 1235, NO, 2 66 I BELIEVE IS READY FOR APPROVAL.
IS THAT CORRECT? AND WE DID, WE DID APPROVE 1239 TODAY.
THE, THE NEXT THREE ACTUALLY 1239 WAS IN DIANA'S REPORT.
THE, THE NON 1247 STUFF THAT HAS FADED FROM YOUR MEMORY.
SO THESE THREE HAVE BEEN WAITING FOR THOSE NPR.
SO ALL THREE OF THOSE SHOULD BE RIGHT FOR THE COMBO, UNLESS ANYONE'S GOT NO 2 66, SNOWBIRD TWO SIXTY SEVEN AND O-B-D-R-R 52 AND THE FOURTH ONE, SORRY, FIGURE ONE 16 AS WELL.
DOES ANYBODY HAVE AN ISSUE WITH PUTTING THOSE ON THE CONVO BALLOT? I GOT A THUMBS UP.
SO JUST OH FIVE TWO DOES HAVE ERCOT COMMENTS ON IT TO CLARIFY USES OF ESR, BUT JUST CLARIFICATIONS.
YOU WERE THE ONE WHO TOLD ME I COULD PUT IT ON THE COMBO MOUNT.
YOU STILL CAN
DOES ANYBODY WANT TO HEAR ERCO T'S COMMENTS ON O-V-D-R-R 52? I CAN CHIME IN.
IT'S IT THE, JUST BASED ON TIMING, SIMILAR COMMENTS WERE FILED AT 1246 THAT WERE CONSIDERED BY PRS.
UM, WE WERE A LITTLE OVEREAGER IN TERMS OF DROPPING IN ESR INTO A BUNCH OF PLACES.
AND SO UPON FURTHER REFLECTION WITH THE ATTORNEYS, THEY DECIDED THAT THE EXISTING LANGUAGE COVERED THOSE.
SO IN THE NPRR AND PIGGER THAT ROSS AND PRS VOTED ON, WE FILED COMMENTS TO BACK OUT SOME OF THOSE CHANGES.
'CAUSE THE EXISTING LANGUAGE WAS FINE.
THERE WERE SOME EXISTING, THERE WERE SOME ADDITIONAL EDITS IN THE O-P-D-R-R FOR Y'ALL TO CONSIDER, BUT IT'S THE EXACT SAME EXERCISE OF WE SAID ESR IN TOO MANY PLACES.
BUT WE ARE FINE WITH ADDING THOSE FOUR ITEMS TO THE COMBO BALLOT.
WE, WERE NOW GOING TO TAKE THINGS A LITTLE BIT OUT OF ORDER.
[11. RTC+B Task Force Report]
GOING TO DO THE RTC PLUS B UPDATE HERE.MARINA ERCOT, IF SOMEONE CAN PING ANDREW, THAT WOULD BE GREAT.
HE IS NOT ANSWERING MY TEAM'S CALLS.
SO WANTED TO WALK THROUGH TODAY.
IT'S MORE OF A HERE WHERE WE ARE ON THE READINESS PIECES AND THEN HERE'S WHERE WE'RE ON THE POLICY PIECES.
WE'VE BEEN STARTING TO CHIP AWAY AT THAT.
UM, AND WE WILL BE FINDING SOME MORE INFORMATION HERE IN THE COMING DAYS.
BUT I WANTED TO HIGHLIGHT THE KEY ISSUES.
THE SCHEDULE HASN'T CHANGED AT ALL.
WE DID RECEIVE OUR RTC SC FROM THE VENDOR.
SO WE HAVE OUR REAL TIME MARKET IN HAND.
IT'S OUR BETA RELEASE FROM THEM AND THE DAY AHEAD MARKET AND R SO BACK IN THE LAB WE'RE ACTUALLY CONNECTING THESE THINGS TOGETHER AND GETTING 'EM OFF AND ROLLING.
BUT WE HAVE THESE POLICY ISSUES THAT ARE, UM, YOU KNOW, IN FRONT OF US THAT WE NEED TO ADDRESS.
AND SO AGAIN, I'LL GO THROUGH WHAT DOES IT LOOK LIKE ON THE QUEASY SIDE OF READINESS AND HOW WE'RE SERVING THAT, WHAT THESE POLICY NEEDS ARE IN TERMS OF GETTING AN NPR INTO PLACE.
AND THEN THE IMM PROPOSAL, WE'VE BEEN WAITING FOR THIS AND THEY PROVIDED LAST WEEK, UH, A WALKTHROUGH OF THE AS DEMAND CURVES.
AND AGAIN, IF WE CAN GET ANDREW HERE, UM, HE WAS WILLING TO GIVE A LITTLE FIVE MINUTE SPIEL ON THAT IF WE WANT TO, BUT I COULD SHOW YOU A COUPLE SLIDES TO HELP THAT.
AND THEN WHAT WE'RE LOOKING AT FOR NEXT MONTH'S MEETING.
SO NO CHANGE ON THIS MARKET TRIALS ARE STILL STARTING MAY 5TH.
UM, THERE'S ONE CHANGE THAT'S NOT HERE IS WE'RE GONNA DO AN EARLY RELEASE TO THE MARKET.
KIND OF A MOAT IS IF YOU USE MOAT EVER, THAT'S OUR, UM, TESTING ENVIRONMENT.
WE WILL HAVE THAT IN MARCH AND APRIL.
SO EVEN BEFORE WE GET TO MARKET TRIALS, WE WANNA PUT SOMETHING OUT THERE SO THE VENDORS CAN USE A TEST CERTIFICATE TO BE HITTING IT INSTEAD OF WAITING FOR MAY AND HOPING EVERYTHING GOES WELL.
SO, UH, THAT'S SOMETHING THAT WE'LL START TO BAKE INTO THE PLAN.
AND THEN HERE'S THE ISSUES LIST.
AND SO WHAT YOU HADN'T SEEN BEFORE WAS THE BOTTOM HALF.
THE TOP HALF HAS BEEN THESE POLICY ISSUES IN THE RED BOX.
THESE ARE THINGS THAT WE SAID, UM, AS A TASK FORCE IN 2019, WE COULD ARGUE OVER PROXY OFFERS OR JUST SAY PARAMETERIZE IT AND LET'S COME BACK AND GET 'EM APPROVED BY TAC LATER.
[02:00:01]
THOSE, LET'S GET BACK TO 'EM LATER.UH, ORIGINALLY WE TALKED ABOUT THOSE BEING, UH, TAC APPROVED, UM, YOU KNOW, WORKING WITH OUR LEGAL TEAM AND JUST FROM A RISK MANAGEMENT PERSPECTIVE, IT MAKES SENSE IN THIS DAY AND AGE TO MEMORIALIZE THOSE VALUES AND PROTOCOLS BECAUSE THEY'RE NOT GONNA CHANGE.
IT'S JUST MAKING THE HARD DECISION AHEAD OF GO LIVE.
SO THESE ISSUES WILL BE WRAPPED INTO A SINGLE NPRR TO GET OUT.
AND WE HAVE ANOTHER SLIDE ON THAT.
AND THIS IS THE PROGRESSION OF THOSE TOPICS TO THEN GET THE NPR OUT AND APPROVED SO THAT WE HIT THE MAY TRIALS WITH THOSE NEW PARAMETERS IN PLACE.
THAT'S THE GOAL, IS TO HAVE EVERYTHING UM, IN PLACE BY THAT TIME.
AND THEN SEPARATE FROM THAT IS REVIEWING THE AS DEMAND CURVES.
THAT'S WHERE WE'VE BEEN LIGHTING UP THE SIMULATOR.
WE'VE RUN FIVE OPERATING DAYS.
PEOPLE ARE LOOKING AT THE PRICES AND SAYING WHAT ARE THE IMPACTS AND ARE THE AS DEMAND CURVES, WHAT WE WANT THAT ARE APPROVED OR SHOULD THERE BE BETTER ONES? SO THAT'S A SEPARATE POLICY ISSUE OUTSIDE OF THIS NPR.
AND THEN JUST THE MARKET READINESS.
WE'VE DONE A LOT IN MARKET READINESS ALREADY.
UM, BUT YOU GUYS ARE WAITING ON THE HANDBOOKS, YOU'RE WAITING ON MORE OF THE DETAILS OF TRAINING FOR THE ANNUAL OPERATOR TRAINING SEMINAR IN MARCH.
AND SO THOSE PIECES ARE STARTING TO FALL INTO PLACE AND WE HAVE A SCHEDULE FOR THOSE.
SO WE DON'T HAVE TO HAVE EVERYTHING PERFECTLY DONE YET, BUT WE NEED A PLAN TO GET THERE.
SO THIS IS THAT PROGRESSION OVER THESE COMING MONTHS.
SO WHEN YOUR SHOP SAYS WE'RE GONNA GET IT DONE, THIS IS WHAT YOU POINT TO.
SO IN TERMS OF THE MEETING LAST WEEK, UM, I JUST WANNA TOUCH ON A COUPLE OF THESE, A COUPLE OF THESE.
WE DID HAVE SOME INITIAL TRAINING VIDEOS.
WE DID DISCUSS THE NPRR FOR THOSE PARAMETERS THAT I TALKED ABOUT THAT I HAVE A SLIDE ON.
WE DID DO A THIRD ROUND OF THE AS PROXY OFFERS.
UM, THIS IS WHERE DAVE, THERE WAS THE IDEA THAT IF A QUEASY DOESN'T FILL IN A, UH, DOLLAR MEGAWATT VALUE ON THEIR BID, WHAT WE LIKE ENERGY TODAY EXTENDED UP TO THE CAP.
UM, AND ERCOT RECOMMENDED, I THINK THE IMM SUPPORTED THE IDEA OF ZERO WOULD BE THE RIGHT VALUE.
UH, DAVE CAME BACK WITH SOMETHING IN BETWEEN LAST WEEK.
SO THE IDEA IS TO LET THAT SOAK IN, UH, TO START TO USE THE AS DEMAND CURVES IS TO FILL IN THAT PIECE.
AND WE'RE GONNA HAVE YET ANOTHER DISCUSSION ON THAT IN DECEMBER.
AND THEN AGAIN, THE AS DEMAND CURVES, THAT WAS, UH, A FIRST CUT AT THAT.
AND THEN THE SIMULATOR UPDATE.
SO IF YOU WANNA DO A QUICK CLICK ON THESE SLIDES, THIS WILL GET YOU INTO THE DATA SETS THAT WE DID THESE FIVE OPERATING DAYS.
SO, UM, WE DID A SEPTEMBER 6TH, 2023, THAT'S A SCARCITY DAY.
WE HAD A JULY 10TH, 2023 CONGESTION DAY AND THEN OCTOBER FOR RELIABILITY DEPLOYMENT ER DAY, UH, ANOTHER VOLATILE DAY ON JUNE 19TH AND 1116.
SO WHEN I'M POINTING TO THESE, WHAT I'M SAYING IS WE HAVE TAKEN THOSE OPERATING DAYS THAT WERE REAL, WE USE IT AND PUT IT INTO A BUNCH OF CODE BACK AT OUR COT, LOAD UP THE SAVE CASES AND RUN IT THROUGH THE REALTIME CO OPTIMIZATION METHODOLOGY AND THEN PUBLISH WHAT THE PRICES WOULD'VE BEEN.
SO THIS IS A CHANCE TO SEE THE BEFORE AND AFTER PRICES, HOW CONGESTION IS BEING MANAGED, UH, WHERE SYSTEM LAMBDA IS AND TO START TO SEE THE IMPACTS OF THAT JUST ON THOSE PARTICULAR DAYS.
AND THEN WE'VE POSTED ALL OF OUR MEETINGS FOR 2025.
BE ADVISED AS WE GET INTO MARKET TRIALS, WE'LL HAVE WEEKLY MEETINGS, BUT THAT'S NOT ALL Y'ALL, THAT'S JUST WHOEVER'S, UM, DOING THE WORK FOR THE SHOPS.
SO WE ALSO ADD THIS TO THE R-T-C-B-T-F HOMEPAGE.
UH, THE VISION I'VE BEEN SHARING OVER THE LAST COUPLE OF MEETINGS IS ERCOT CAN'T STAND UP FORMAL TRAINING, WE DIDN'T BUDGET FOR THAT.
BUT THE IDEA IS WHEN WE PRESENT A KEY CONCEPT, UM, SORRY, A KEY CONCEPT, WHEN WE CONNECT THE DOTS ON SOMETHING THAT'S IMPORTANT, WE WANNA MEMORIALIZE THAT, MAKE IT REPRODUCIBLE SO SOMEONE CAN SELF-SERVE LATER MOST FREQUENTLY ASKED QUESTION.
MATT, THAT WAS A GREAT AGENDA, THAT WAS A GREAT DISCUSSION.
I WISH WE HAD RECORDED IT WELL.
THIS IS OUR WAY OF STARTING TO RECORD THINGS THAT ARE VALUABLE TO GET IN FRONT OF THE MARKET.
SO THE TWO THAT WE'VE PUBLISHED IS, UM, MAGGIE SHANKS DID A SETTLEMENTS OVERVIEW, ALL THE NEW BILLING DETERMINANTS THAT ARE BEING ADDED.
IT'S 45 MINUTES AND YOU CAN GO BLIND ON SQUIGGLY MATH AND LITTLE LETTERS ON, UH, BILLING DETERMINANTS.
AND THEN WE HAVE NATHAN SMITH.
IS THE MARKET SUBMISSIONS CHANGES? HOW DID THE REAL-TIME AS OFFERS START TO CHANGE OR THE CURRENT OPERATING PLAN CHANGES? SO THESE ARE THE BEFORE AND AFTER TYPE THINGS.
THE ONE THAT WE'RE EXCITED ABOUT WAITING ON IS DAVE MAGIO IS GONNA DO KIND OF AN RTC 1 0 1, THE BEFORE AND AFTER TYPE THING.
SO THAT'LL BE A 30, 20 TO 30 MINUTE VIDEO THAT SOMEONE CAN WATCH AND SEE IT.
SO AGAIN, THIS ISN'T THE MEETING ITSELF, THEY'RE GOING BACK TO A LAB AND RECORDING IT AND CLEANING IT UP.
UH, THEN ON THE PARAMETER, SO I ALREADY SPOKE TO THIS, I WON'T SPEND MUCH MORE TIME.
WE HAVE FOUR TAC APPROVED PARAMETER TYPE THINGS THAT WERE DEFERRED.
THESE ARE THOSE FOUR ITEMS. EACH OF THOSE FOUR ITEMS WE TALKED ABOUT AT THE LAST MEETING.
AND THE TIMELINE TO RELEASE AN NPR IS ERCOT ISS LOOKING TO FILE THIS IN DECEMBER AS AGGRESSIVE BEFORE THE DECEMBER 11TH MEETING, BUT DEFINITELY BY JANUARY IS THE DRAFT IN THE NPRR GOES INTO THE STAKEHOLDER PROCESS.
THERE MAY BE BLANKS IN THERE BECAUSE WE HAVEN'T FIGURED IT
[02:05:01]
OUT, BUT IT WOULD BE THE FRAMEWORK WITHIN WHICH WE DIAL IN THOSE NUMBERS AS WE GO OVER TIME AND GET THOSE IN.SO IN PARALLEL, AS WE VET THOSE ISSUES AND FILL IN THE BLANKS MARKET PARTICIPANTS CAN DOCUMENT THEIR POSITION.
THEY CAN SAY, WE DON'T LIKE THIS AS PROXY OFFER AND HERE'S WHY.
AND LET THE RECORD SHOW THIS IS WHY WE DON'T LIKE IT.
SO THAT WAY WE HAVE A MORE FORMAL PROCESS RATHER THAN JUST, YOU KNOW, WORKING IT OUT IN THE TASK FORCE AND THEN GOING LIVE AND WHY DID WE DO WHAT WE DID AND WAS THERE ANY DISCUSSION? THIS IS A WAY TO TRACK THESE REALLY IMPORTANT THINGS, UM, WITH TRANSPARENCY AND CONFIDENCE TO GET THERE.
UH, SO THE TARGET WOULD BE COMPLETING ALL THAT ANALYSIS BY MARCH.
UH, AT THAT POINT WE MAY HAVE A SPECIAL MEETING IN EARLY MARCH SO THAT WE CAN GET THROUGH PRS APPROVAL IN MARCH TAC APPROVAL IN MARCH AND ONTO THE BOARD BY APRIL.
THAT ALLOWS US TO DIAL IN THOSE VALUES FOR MARKET TRIALS IN MAY.
IT'S NOT FUN, BUT IT'S A WAY TO GET THERE.
UM, AND THAT'S WHAT WE'RE LOOKING TO DO.
AND THEN IN TERMS OF THE AS, UH, DEMAND CURVES.
SO THE IMMI KIND OF SNAPPED THIS OUT OF THEIR, UM, PRESENTATION.
SO AS YOU KNOW, THE PROTOCOL APPROVED DEMAND CURVE, THAT'S PRESUMPTUOUS.
YOU MAY OR MAY NOT KNOW THAT THE AS DEMAND CURVES ARE SHAPED LIKE THIS.
SO WE HAVE A-O-R-D-C CURVE AND THE IDEA WAS, AND THIS IS KIND OF A COMMISSIONER MEMO, BACK CHAIRMAN MEMO BACK IN 2019 SAID, THE ORDC CURVE WILL BE THE FOUNDATION OR BASIS FOR THE AS DEMAND CURVES, AND THEY SHOULD BE CONSTRUCTED UNDERNEATH THAT.
AND SO BACK IN 2019, ERCOT BROUGHT A PROPOSAL TOGETHER.
UM, YOU KNOW, THERE'S, SEAN'S BROUGHT A PROPOSAL TOGETHER AND THIS IS WHAT WE ENDED UP WITH IN APPROVED PROTOCOLS, WHICH IS LITERALLY REGULATION ALL IN ONE BLOCK, IF $5,000, THEN WE HAVE THE RESPONSIVE RESERVE ALL AT 5,000, OR IT DROPS OFF DEPENDING ON HOW MUCH IT IS.
AND THEN NON SPINS THE REMAINDER.
AND SO THOSE WERE SHARP CURVES AND THEY DECONSTRUCT INTO THIS, YOU KNOW, KIND OF STEP UP PIECE.
AND THE IMM TOOK AND SAID, WHAT WOULD IT LOOK LIKE TO CREATE SOME RAMP INS FOR EACH OF THESE CURVES? AND SO THEY, AGAIN, THE REGULATION ONE IS A PRETTY STEEP ONE, BUT THEN YOU CAN SEE HERE THAT, UH, THE RESPONSIVE RESERVE IS STEEP, BUT HAS A TAIL TO IT.
AND EACH OF THESE RESERVES COULD NOW GO UP TO THE OFFER CAP OR COULD GO UP, SORRY, NOT THE OFFER CAP COULD GO UP TO THE RDC UH, MAX OF 5,000.
ANDREW TALKED ABOUT IF THERE'S A NEED TO DO A WALKTHROUGH FOR THAT, WE CAN, BUT THAT'S JUST KINDA A REPRESENTATION OF WHAT THEY DID, THE VALUE IN THE OPENING.
THE, I'LL JUST OPEN THE SLIDES.
DO I HAVE A MINUTE? TAKE TWO MINUTES.
OKAY, SO THIS IS 25 SLIDES, WHICH I'LL NOT TRY TO REPRESENT, BUT ONE THING THAT THE IMM SAID, YOU KNOW, THERE'S THIS IDEA OF NESTED AS DEMAND CURVES AND OTHER JURISDICTIONS THAT MAY BE A, UH, A BACKGROUND ELEMENT TO USE FOR COMPARISON PURPOSES.
AND THAT WOULD BE PERHAPS A LONGER TERM PLACE TO BE.
BUT IN THE ABSENCE OF THAT, CAN WE USE A RESHAPING OF THE CURRENT CURVES TO GET CLOSER TO THAT CONSTRUCT? AND SO WHAT THE IDEA WAS IS TO CREATE THESE TAILS.
AND SO HERE'S WHAT I JUST VOICED OVER.
THE DESIGN GOALS WERE TO, THE AGGREGATE DEMAND MUST MATCH THE ORDC.
THE INDIVIDUAL, AS DEMAND CURVES AND MAX PRICES EXHIBIT A PRODUCT HIERARCHY, EACH CURVE REACHES A MAX PRICE IN NEAR VOL AND REG UP AND RESPONSIVE SHORTAGES SHOULD, SHOULD OCCUR ONLY DURING SCARCITIES.
SO IF YOU'RE TAKING AWAY FROM THAT AND PUTTING IT INTO A RAMP, LIKE IF REGULATION IS PRICING OUT AT A HUNDRED DOLLARS IN SCARCITY, IS THAT BAD? AND THE IDEA IS, WELL, YOU'RE ALREADY IN SCARCITY, SO IT'S THERE.
AND SO THE IDEA IS HOW TO SHAPE THESE THINGS TO FIT TOGETHER ECONOMICALLY AND RELIABLY TO GET TO THAT POINT.
AND SO HERE'S THE REASON I WANTED TO OPEN THE SLIDES.
IF Y'ALL WANT TO GO CHEW ON THIS A BIT, THEY HAVE TAKEN AND RUN, WHAT WOULD THE PRICES BE IF IT WAS JUST USING THE ERCOT APPROVED LOGIC SHOWS THESE PRICES FOR SEPTEMBER 6TH VERSUS THE BLENDED ESTIMATED VALUES AND THEY JUST WALK THROUGH A GROUP OF THESE, UM, OVER TIME.
AND SO I'M NOT HERE TO TRY TO REPRESENT IT ALL, IT'S JUST TO CONNECT YOU TO THE INFORMATION AND THIS IS WHAT WE'RE DISCUSSING.
SO WE SPENT AN HOUR AND A HALF ON THIS, I THINK AT THE, UH, R-T-C-B-T-F AND JUST WANTED TO PUT IT IN THE FIELD OF PLACE SINCE IT'S NEW INFORMATION AND KEY TO PRICE FORMATION.
SO WITH THAT, I'LL KIND OF PAUSE AND SEE IF ANYONE ELSE WANTS TO TALK ABOUT THAT.
I THINK ANDREW WAS GONNA BE HERE TOO.
CAN WE TAKE THE, HEY, ANDREW, DO YOU WANNA GO AHEAD OR DO YOU WANNA TAKE A QUESTION FROM BILL BARNES FIRST? SURE.
IF BILL'S QUESTION IS DIRECTED AT ME, WE CAN START THERE.
LET'S JUST GO FOR SDC RELATED.
YEAH, WHAT MINE ARE NOT AS DC RELATED.
SHOULD WE GET BACK TO YOU AFTER THIS CONVERSATION? OKAY, LET'S DO THAT.
[02:10:01]
KIND OF ECHO WHAT MATT SAID, UH, WHICH IS THAT WE HAD SOME CONCERNS WITH THE APPROVED ADCS.WE PROPOSED A WAY OF BREAKING UP THE ADCS THAT WE THINK WOULD IMPROVE PRICE FORMATION AND SCHEDULABILITY TO MAKE EFFICIENT TRADE-OFFS BETWEEN PRODUCTS.
UH, WE THINK THAT WE CAN, UH, REFORMULATE THESE CURVES WITHOUT HAVING TO COMPLETELY REDESIGN THE SC RTC ENGINE.
SO THESE CURVES, UH, WE HAVE ALREADY IMPLEMENTED THEM IN ERCOT SCED SIMULATOR TOOL.
AND SO WE DON'T THINK THERE'S REALLY A TECHNICAL OR PERFORMANCE ISSUE WITH IMPLEMENTING CURVES LIKE THIS.
IT WOULD JUST BE A POLICY ISSUE.
UH, WE PRESENTED SOME EXAMPLES OF HOW REFORMULATING THE CURVES WOULD RESULT IN DIFFERENT PRICE FORMATION AND AWARDS AT R-T-C-B-T-F LAST WEEK.
THERE WERE A FEW FOLLOW UP COMMENTS THAT WE THINK WE CAN ADDRESS PRETTY EASILY RELATED TO VARIOUS THINGS THAT WE'RE GOING TO BRING TO, UH, LIKE EVERYONE.
WE HAVE VARIOUS PEOPLE OUT WITH THE HOLIDAYS AND THINGS OVER THE NEXT SIX WEEKS OR SO.
AND SO WE'LL EITHER PLAN ON BRINGING SOME NEW INFORMATION TO THE DECEMBER R-T-C-B-T-F MEETING, OR IT MAY MAKE MORE SENSE FOR US TO PUT THOSE TO JANUARY.
I THINK WE HAVE A PRETTY GOOD IDEA OF HOW WE WANT TO MOVE FORWARD.
IT'S JUST A QUESTION OF HOW MUCH DETAIL WE THINK WE CAN GET DONE IN DECEMBER AND WHETHER IT MAKES MORE SENSE TO MOVE IT TO JANUARY.
SO I THINK THAT'S THE LONG AND SHORT OF OUR COMMENTS TODAY.
UH, THE NEXT STEPS AFTER MAYBE SHOWING A LITTLE MORE ANALYSIS WILL BE TO WORK WITH ERCOT ABOUT FIGURING OUT WHETHER, WHETHER AND WHO WILL BE PUTTING AN NPRR TOGETHER, WHO WOULD SPONSOR IT, THAT SORT OF THING.
UM, WHEN YOU SAY IT'S A POLICY ISSUE, UH, GOING BACK AND LOOKING AT MATT'S KIND OF, UM, GANTT CHART WITH, UH, WHERE HE STARTED, IT'S A TBD, HOW DO YOU EXPECT THAT TO, TO, UH, ROLL THROUGH THE PROCESS? IS MY MY FIRST QUESTION.
UH, SO ANY CHANGE TO THESE CURVES WOULD REQUIRE A REVISION TO THE PROTOCOLS AT THE LEAST.
AND SO THAT IS THE LEAST AMOUNT OF POLICY, UH, DESIGN IMPLEMENTATION TYPE STUFF THAT WE'D HAVE TO GET THROUGH.
UH, A MORE TBD ASPECT THAT WE MIGHT WANNA PURSUE IS THAT THERE'S CURRENTLY KIND OF A CONSTRAINT TO MAKE THE A S DEMAND CURVES FIT, THE KIND OF EXISTING ORDC IN A KIND OF TWO DIMENSIONAL SENSE.
AND WE THINK THAT WE COULD DO A LOT BETTER TO REDESIGN THE AS DEMAND CURVES IF THAT CONSTRAINT WERE RELAXED.
SO THERE ARE A VARIETY OF DIFFERENT THINGS THAT THAT MIGHT MEAN.
IT, IT JUST MEANS THAT IF YOU, YOU KNOW, LINE UP ALL THE ASCS TOGETHER, THEY DON'T NECESSARILY LOOK LIKE THE CURRENT RDC AND EACH OF THE PRODUCTS WOULD BE MORE CORRESPONDING TO ITS RELIABILITY VALUE.
THE AMOUNT OF CAPACITY PRICED AT $5,000 MIGHT BE DIFFERENT.
THE MAX PRICES FOR THE DIFFERENT PRODUCTS MIGHT BE SLIGHTLY DIFFERENT.
THOSE ARE ALL PARAMETERS THAT COULD BE ADJUSTED FURTHER IF WE DIDN'T HAVE TO MEET THE, I THINK IT'S KP ONE 14 CONSTRAINT.
YEAH, I, I AGREE WITH YOU THAT CONSTRAINT, UH, DOES HAVE A BIG LIMITATION.
IT ALSO HAS A BIG LIMITATION ON, I THINK, UH, ACHIEVING THE RELIABILITY STANDARD THAT THE COMMISSION ADOPTED RECENTLY.
AND SO, UH, AS YOU'RE THINKING ABOUT THIS, ARE YOU ALSO THINKING ABOUT, UM, WHETHER CHANGES MOVE YOU CLOSER TO ACHIEVING THE STANDARD OR FURTHER AWAY? AND IS THERE ANALYSIS THAT WILL SUPPORT THAT HAPPENING? I DON'T THINK WE HAVE ANY ANALYSIS ON LIKE THE, WE WOULD NEED TO DO SOME ANALYSIS ON THE TOTAL AMOUNT OF REVENUE IN THE MARKET IF WE WERE TO TRY TO, UH, COMPLY WITH THE SPIRIT OF THE KIND OF PRICING OUTCOMES UNDER RTC RELATIVE TO THE CURRENT RDC.
THAT MIGHT BE SOMETHING WE HAVE TO DO.
UH, 'CAUSE THE CURVE WOULD LOOK DIFFERENT, BUT THERE WOULD STILL NEED TO BE SOME ANALYSIS ABOUT HOW MUCH REVENUE WAS ENTERING THE MARKET THROUGH THAT KIND OF THOSE CURVES.
[02:15:04]
I DON'T KNOW WHO THAT WAS OR IF THEY HAD SOME GREAT COMMENT, BUT, UH, THEY CAN GET IN LINE, I GUESS, UH,YEAH, JUST, UM, THIS IS KIND OF A COMBINATION QUESTION FOR, UH, MATT AND, AND ANDREW.
'CAUSE I, I THINK ANDREW WAS, WAS TALKING ABOUT OBVIOUSLY THE HOLIDAYS, THE SCHEDULE, BEING ABLE TO GET THINGS THROUGH, BUT IN TERMS OF OUR ABILITY TO PROCESS THIS THROUGH THE WHOLE, UM, BOARD, ET CETERA.
UM, SO MATT, WHEN, WHEN ARE WE TARGETING AN NPRR? UM, WHEN WOULD THAT NEED TO BE DONE ON THAT ONE? PROBABLY IN PARALLEL TO THE OTHER NPR, WHICH WOULD BE JANUARY.
HIT THE LATEST TO HIT ON AN URGENT BASIS TO HIT THE PRS MEETINGS IN MARCH, APRIL.
JUST TO GO BACK TO, SO I WOULD PUT IT ON THE SAME, SAME FLIGHT PATH AS THIS AT THE BOTTOM IS.
AND SO I, I THINK THAT'S IMPORTANT FOR ANDREW AND OTHERS IN TERMS OF WHAT WE'RE, WE'RE SHOOTING FOR.
I THINK OUR VIEW IS THAT, UM, HITTING, HITTING OUR DECEMBER 25 TARGET IS, IS PARAMOUNT.
AND SO YOU HAVE A WINDOW OF OPPORTUNITY.
AND SO WHILE WE ARE SENSITIVE TO CONSTRAINTS AND WHATNOT, UM, WE ALSO RECOGNIZE THAT THERE ARE OTHER CONSTRAINTS.
AND SO, UH, THERE'S A WINDOW, UH, PLEASE JUMP IN, BUT, UM, THERE'S NOT MUCH, THERE'S NOT MUCH WIGGLE ROOM.
SO MY QUESTION RELATED TO THAT IS, DOES ERCOT SEE IT AS AN IMPERATIVE THAT THESE CHANGES BE IMPLEMENTED AT GO LIVE? OR IS IT POSSIBLE THAT WE COULD GO LIVE WITH THE CURRENT AS DEMAND CURVES WHILE WE'RE STILL IMPLEMENTING WHATEVER NPRR COMES OUT OF THIS WORK? SO I, I THINK WE'RE, WE'RE ALWAYS OF THE MIND THAT WHAT WE HAVE NOW IS IMPLEMENTABLE IN DECEMBER.
AND SO WE HAVE AN OPPORTUNITY TO CONSIDER A CHANGE THAT DOESN'T, THAT IS LIMITED, BUT IF, UH, WE MISS THE WINDOW, THEN IT WILL HAPPEN AFTERWARDS.
AND THAT'S, IN OUR VIEW, ACCEPTABLE.
I THINK KEITH SAID EVERYTHING.
UM, BUT I'M JUST GOING TO PUT A, PUT A PUNCTUATION MARKETING UNDERLINE UNDERNEATH IT.
THAT IMPLEMENTATION ON DECEMBER 5TH IS, IS, IS IT, UM, SUPER HAPPY FOR THE MARKET TO BE THINKING ABOUT HOW TO IMPROVE THE ADCS? UM, AND IF, IF YOU ALL CAN COME TOGETHER AND SING KUMBAYA OVER SOMETHING IN TIME TO GET IT IN, GREAT.
WE'VE GOT A POSITION, IT'S IN THE PROTOCOLS ALREADY, WE DON'T HAVE TO STRESS OUT ABOUT IT.
WE'RE GONNA GO LIVE ON DECEMBER 5TH.
AND, UH, COMMISSION STAFF IS, IS, UM, WHAT'S THE RIGHT WAY OF SAYING IT, I GUESS? WE'LL JUST, WE'LL, WE'LL WE WILL, WE'LL JUST MAKE SURE TO REITERATE THAT POINT AS AS, UH, CONVERSATIONS GO ON AND IF IT FEELS LIKE IT'S GONNA TURN INTO A CONTENTIOUS DEBATE, THEN WE'LL JUST CONTINUE TO REITERATE IMPLEMENTATION DATE IS, IS THE THING.
OKAY, BLAKE? YEAH, AND I JUST, I JUST WANNA STATE, UH, FOR THE RECORD THAT I'M IN POSITION ON THIS IS THAT, YOU KNOW, OUR GOAL ALL ALONG WAS TO DETERMINE THAT WE COULD MOVE FORWARD WITH THE, UH, CURRENTLY SCHEDULED GO LIVE DATE WITHOUT HAVING TO, YOU KNOW, WITHOUT IT BEING A SHOWSTOPPER.
AND SO WHILE WE HAVE IDENTIFIED SOME CONCERNS THAT WE THINK COULD BE IMPROVED, I DON'T THINK WE WOULD WANNA DO ANYTHING THAT WOULD, YOU KNOW, FORCE A DELAY OF GO LIVE.
MY, MY QUESTIONS HAVE BEEN ANSWERED.
BILL, YOU STILL, YOUR CONVERSATION'S ON A DIFFERENT TOPIC? YEAH, I WAS A SIMULATOR.
UM, WELL FIRST OF ALL, THANKS FOR THE TRAINING MODULES.
WE REALLY APPRECIATE THAT AND LOOK FORWARD TO THE OTHERS YOU ROLL OUT ON THE SIMULATOR.
ARE WE GONNA GET ANOTHER SLUG OF EXAMPLE DAYS? I THINK VERY GOOD TIMING.
THAT'S SUPER HELPFUL FOR ALL OF US TO LIKE, TRY TO FIGURE OUT HOW THIS IS GONNA IMPACT MARKET OUTCOMES.
SO THANK YOU FOR CONTINUING TO DO THAT.
WOULD IT, I KNOW THIS IS LABOR INTENSIVE IN TERMS OF OP YOU KNOW, RUNNING DAYS IN THE SIMULATOR, BUT IS THERE A WAY THAT YOU COULD ACTUALLY INPUT THE IMS BLENDED ASCS AND RERUN A COUPLE DAYS TO SHOW BOTH?
[02:20:02]
YES.BUT IT COMES AT A COST OF NOT DOING SOME OF THE OTHER STUFF.
SO IT'S NOT, WE JUST CAN'T PANCAKE ON AND LET'S DO THIS AND THIS, BUT IF THAT'S THE NEXT THING, THEN THAT'S CERTAINLY DOABLE AND WE'RE USING THE SAME SIMULATOR, WHICH IS KIND OF COOL.
I THINK THAT WOULD PROBABLY BE VALUABLE AS WELL.
UM, THE QUESTION WE FIGURE OUT A WAY TO, YEAH.
SO THE QUESTION WOULD BE, SO WE'VE RUN WHATEVER IT WAS, FIVE OPERATING DAYS ALREADY.
IS THERE A FIRST OPERATING DAY? YOU GUYS WOULD WANNA SEE THAT? SO WE CAN DO NEW DAYS OR WE START BACKTRACKING UP AND RUNNING THROUGH DIFFERENT NUMBERS ON THE SAME DAYS AS BEFORE.
SO, ALL RIGHT, SO THAT, UM, SO THAT EVEN FEEDS INTO KIND OF WHAT WE'RE LOOKING AT NEXT.
SO THE AS PROXY OFFER FLOORS, WE'RE GONNA TALK ABOUT THE DECEMBER MEETING, THE AS DEMAND CURVES FROM THE IMM.
AND AGAIN, IF WE WANT TO DIAL THOSE INTO THE SIMULATION, WE CAN.
OUTSIDE OF THAT, WE ARE PLANNING TO DO THE NEXT FOUR OPERATING DAYS OR THE ONES THAT WE'RE REQUESTED TO DO ANALYSIS OF.
AND THERE'S AN EXPLANATION OF WHY THOSE WERE SELECTED.
AND THIS IS ACTUALLY KIND OF A, A TOP 20 LIST THAT WAS GIVEN TO THE, UM, TO ERCOT PROBABLY SEVEN OR EIGHT MONTHS AGO.
SO, UH, LUMINA TOOK THE LEAD, OTHER PEOPLE HAVE SIGNED ON AND SAID, YEAH, THESE LOOK LIKE THE RIGHT DATES IN THE RATIONALE FOR 'EM.
SO WE DON'T HAVE A PRIORITIZED LIST, WE JUST KEEP COMING BACK TO THE R-T-C-V-T-F AND SAY WHAT'S NEXT.
AND SO THIS IS OUR WHAT'S NEXT? AND THEN THESE LAST, UH, COUPLE PIECES I WANT TO HIT, UM, SLOWLY BUT SURELY AS DELIVERABILITY.
SO THE IDEA IS REAL TIME COOP OPTIMIZATION AS IT CO OPTIMIZES, PUTS ENERGY INTO ONE PLACE AND WILL SOMETIMES MOVE ANCILLARY SERVICES INTO ANOTHER PLACE BECAUSE IT'S CHEAPER WHEN THERE'S CONGESTED ENERGY AND YOU CAN MOVE THIS OUTTA THE WAY.
UH, THE DAY AHEAD MARKET DOES THE SAME THING TODAY.
AND SO AS WE AWARD AND HAVE DEMONSTRATED THROUGH THE SIMULATOR WHERE THOSE ANCILLARY SERVICES MOVE, UM, THERE'S BEEN SOME QUESTION ON THIS AS DELIVERABILITY.
SO ERCOT IS BUILDING THE FUNCTIONALITY FOR THE OPERATORS TO MANAGE THAT WHEN THEY NEED TO.
UH, WE ALSO RECOGNIZE THAT IF THOSE ARE A FREQUENCY RESPONSE THAT YOU KNOW, THOSE AS BEHIND CONSTRAINTS WILL PULSE BRIEFLY TO ARREST FREQUENCY AND THEN THINGS MOVE AROUND.
IT SC DISPATCHES, IT REBALANCES AROUND THOSE CONSTRAINTS.
BUT IT'S A GOOD EDUCATIONAL CONVERSATION THAT WILL CONTINUE AND WE'RE BRINGING THE OPERATIONS FOLKS TO THE DECEMBER MEETING TO WALK THROUGH THAT.
UM, THE OTHER ONE THAT PEOPLE ARE, UM, UM, CONCERNED WITH IS THERE'S THIS LINE IN PROTOCOLS THAT SAY THAT THE, UM, INTERMITTENT RENEWABLES CAN, IF THEY ARE, UM, HAVE CAPABILITY CAN BE AWARDED IN SC FOR, AS FOR NON SPEN AND ECRS.
AND THAT'S BEGGING THE QUESTION, IF THEY'RE INACTIVELY PARTICIPATING, IS THIS REALLY A BEST DESIGN OR IS THIS, OR SHOULD WE BE CONCERNED WITH THIS? UH, AND SO WE'LL START TO TALK MORE ABOUT THAT ONE ALSO.
BUT THESE ARE KIND OF THE TWO BIGGER ISSUES RIGHT NOW BASED ON THE SIMULATION IS, HEY, THIS AS DELIVERABILITY ISSUE, IS THAT A CONCERN? AND BY THE WAY, IF THE RENEWABLES ARE ALL BEING AUTO MAGICALLY, UM, SELECTED AND DISPATCHED, IS THAT A GOOD DESIGN OR NOT? AND SO AGAIN, WE'LL TALK MORE THROUGH THAT AT THE NEXT MEETING.
AND THEN WE'RE TRYING TO BRING THE INITIAL SET OF MARKET TRIAL HANDBOOKS FOR THE MAY ACTIVITIES, UH, TO THE GROUP.
SO IT'LL BE A LOT IN DECEMBER OVER THE HOLIDAYS, BUT TRYING TO GET THESE THINGS, KEEP 'EM MOVING.
AND WITH THAT, I'LL, THAT'S ALL I HAVE UNLESS THERE ARE ANY QUESTIONS.
THERE ANY QUESTIONS? E ERIC, DID YOU HAVE ONE? UH, ERIC SHOULD RELY ON DOWN CHEMICAL IT FAIRLY SMALL BEER PERHAPS, BUT WITH AS DELIVERABILITY, WE NOW ARE GONNA HAVE STORAGE.
AND IF YOU DO REAL TIME COLONIZATION, HOW ARE, HOW ARE YOU MANAGING THE F STATE OF CHARGE? BECAUSE YOU COULD SEE A SITUATION WHERE THEY MAYBE RE UP AND THEN THEY COULD BE RIGGED DOWN WITHIN 10 MINUTES.
IS, I MEAN, DO YOU HAVE THE ABILITY TO TRACK STATE OF CHARGE ON A FIVE MINUTE BASIS? YES.
[7. RMS Report]
RMS REPORT.DEBBIE, ARE YOU ON TO GIVE US THE RMS REPORT? YES, I AM, CAITLIN.
THIS IS, UH, REALLY GONNA BE QUICK.
JOHN AND I DID WANNA GIVE A QUICK UPDATE REGARDING OUR SUCCESS OF THE TEXAS AT 5.0 AND THE MARKET TRACK SCR EIGHT 17 IMPLEMENTATION THAT OCCURRED OVER THE WEEKEND OF NOVEMBER 9TH AND 10TH.
THAT THAT REQUIRED A TOTAL OF SEVEN MARKET ROLES NECESSARY TO SUPPORT THE IMPLEMENTATION IS ONE BRR TWO SYSTEM CHANGE REQUESTS, FOUR RETAIL MARKET GUIDE REVISION REQUESTS AND TONS AND TONS OF TEXAS SET CHANGE CONTROLS.
ALL OF THOSE HAD BEEN PREVIOUSLY PRESENTED FOR TECH FOR APPROVAL EXCEPT FOR THE TEXAS SET CHANGE CONTROLS.
ALL EXISTING T DSPS AND REPS MIGRATED OVER THAT WEEKEND.
[02:25:01]
UP WITH SOME NEW REPS ABOUT 24, AND THE MAJORITY OF THOSE ARE DUNS PLUS FOURS.HOWEVER, UM, IN OUR MARKET, EVERY DUNS STANDS ALONE.
UH, WE DID ENCOUNTER A LOT OF TRANSACTIONAL ISSUES AT FIRST.
THOSE HAVE PRIMARILY BEEN RESOLVED.
WE ARE STILL WORKING WITH SOME PARTIES TO GET THOSE, UM, THOSE FIXED.
UH, SO WE CAN, UH, MOVE FORWARD WITHOUT ANY ERRORS.
UH, WE REALLY, REALLY, REALLY WANT TO GIVE A BIG THANK YOU TO DAVE MICHELSON WITH ERCOT AND HIS TEAM.
UH, IT WAS JUST AN UNBELIEVABLE EFFORT BY ERCOT JUST TRULY HOURS AND HOURS AND HOURS OF WORK.
I REALLY WANNA THANK EVERYBODY, TECH, TECH LEADERSHIP, EVERYBODY THAT HELPED US THROUGH THIS HUGE EFFORT.
IT HAD BEEN 12 YEARS SINCE WE HAD A TEXAS SET VERSION RELEASE.
SO ANYWAY, JUST KUDOS TO EVERYONE.
ALL RIGHT, ANY QUESTIONS? I DON'T SEE ANY.
BUT CONGRATS ON ON THE NEW TEXAS SET VERSION.
[8. ROS Report (Vote)]
WE CAN GO TO THE ROSS REPORT.KATIE, ARE YOU READY? UH, GOOD AF.
THIS IS KATIE RICHER ROSS CHAIR.
SO ALL THREE OF THESE ITEMS WERE RELATED TO, UM, THE PRS REPORT.
OF COURSE, YOU JUST APPROVED PICKER 1 0 7, SO THAT LEAVES PICKER ONE 18 AND, UH, NOER 2 68.
AND THEN IF YOU GO ON TO THE NEXT SLIDE, UM, WE DID TAKE SOME ACTIONS.
OBVIOUSLY WE ALREADY MOVED TO 1247, BUT JUST NOTE THAT THERE WERE, UM, THREE NOS AND A LOT OF ABSTENTIONS ON THAT.
UM, EVEN AFTER HAVING THE SPECIAL APPEAL LWG MEETING, UH, THE 1257, UM, WAS, UH, TABLED AND REFERRED TO P-P-D-C-W-G.
UM, AND IT SOUNDS LIKE THAT'S GONNA BE COMING BACK TO ROSS FOR ITS DECEMBER MEETING.
UM, PLWG WAS OKAY WITH MOVING FORWARD, UH, PICKER ONE 17 AND THEN, UH, PICKER ONE 20 WAS NEW FOR US.
THIS IS ON SSO PREVENTION, AND THAT WAS TABLED AND REFERRED TO PLWG AND DWG.
COUPLE MORE ITEMS TO REPORT ON, RIGHT? SO NUMBER 2 71 WAS RELATED TO, UH, 1257.
AND THEN, UM, PROBABLY THE SECOND TIME YOU'VE SEEN THE DWG PROCEDURAL MANUAL ON HERE SAYING IT WAS APPROVED, BUT THERE WERE SOME, UM, THERE WERE SOME LANGUAGE THAT WAS NOT PART OF THE RED LINES THAT WAS INADVERTENTLY, UM, REMOVED.
AND SO THAT WAS ADDED BACK IN.
SO WE NEEDED TO APPROVE IT AGAIN.
AND THEN THE NEXT COUPLE SLIDES KIND OF SHOW YOU WHAT WE'RE ACTIVELY WORKING ON.
SO YOU CAN GO AHEAD AND SCROLL TO THAT SECOND PAGE.
UM, AND THEN OUR NEXT ROSS IS, UH, DECEMBER 5TH.
SO THAT'S ALL I'VE GOT FOR YOU, UNLESS YOU HAVE SOME QUESTIONS FOR ME.
ANY QUESTIONS FOR KATIE? ALL RIGHT, AND KATIE, THANK YOU.
UM, YOU, YOU ROSS AND P-L-W-G-I KNOW DID, DID A LOT OF WORK ON 1247 ON THE CONSOLIDATED TIMELINE AND, AND HAD THE, THE SPECIAL PLWG AND A LOT OF DISCUSSION AT ROSS.
UM, FOR VOTING ITEMS, I BELIEVE WE DID FIGURE 1 0 7 WITH NPR 1180.
SO WE WOULD BE LOOKING TO RECOMMEND APPROVAL OF PR ONE 18 AS RECOMMENDED BY ROSS IN THE 11 SEVEN ROSS REPORT AND RECOMMEND APPROVAL OF GER 2 68 AS RECOMMENDED BY ROSS IN THE 11 SEVEN ROSS REPORT.
ANYBODY HAVE ANY ISSUES WITH THOSE GOING ON THE COMBO BALLOT? ALL RIGHT, IT SEEMS LIKE WE'RE LOSING SOME FOLKS.
IS THIS A GOOD TIME FOR A FIVE OR 10 MINUTE BREAK, OR NO? DON'T, DON'T ROLL YOUR EYES AT ME.
WE, I'VE SEEN MORE AND MORE EMPTY SEATS.
ALL RIGHT, LET'S KEEP GOING THEN.
[9. WMS Report]
WMS REPORT.ALL RIGHT, GOOD AFTERNOON TAG.
ERIC BLAKEY, UH, PERS CO-OP CHAIR OF, UH, WMS THIS YEAR.
[02:30:01]
TO BE BRIEF.UH, ON OUR WMS MEETING FROM NOVEMBER THE SIXTH, WE HAD, UH, THE Q3 UNREGISTERED DG REPORT, UH, JUST TO SAY THAT, UH, TOTAL OF 27 24 MEGAWATTS INSTALLED AN 80 MEGAWATT INCREASE OVER Q2 2024 SETTLEMENT STABILITY REPORT, UH, WAS ALSO PROVIDED AND THERE, UH, INCLUDED THAT, UH, NO PRICE CHANGES IN Q3, AND WE SPENT A LOT OF TIME TALKING ABOUT THE CAPACITY DEMAND REPORT THAT IS COMING OUT IN A FEW WEEKS.
UH, PETE WARKIN, UH, GAVE A PRESENTATION IN A MOCKUP OF THE NEW REPORT, AND WE LOOK FORWARD TO SEEING THAT COME OUT.
THERE'S A LOT OF REALLY GOOD WORK ON THAT.
UM, AND I THINK WE'RE GONNA BE PLEASED WITH THE CHANGES.
UH, THE OTHER ITEM TO HIGHLIGHT IS THE CRR AUCTION REVENUE DISTRIBUTION ISSUE.
THIS, UH, WAS SOMETHING THAT ERCOT IDENTIFIED BACK IN JULY, AND, UM, THEY WERE LOOKING FOR SOME, SOME GUIDANCE OR PREFERENCE FROM WMS. UH, WE, UH, REFERRED THIS TO WMWG AND THEY HAD SOME REALLY GOOD DISCUSSIONS.
UM, I GUESS HIS BACKGROUND, NPR 10 30 ADDRESSED AN ISSUE WITH RESPECT TO THE ALLOCATION OF THE CARD ALLOCATION METHODOLOGY.
UM, AND SO, UM, RATHER THAN GO INTO THE DETAILS OF THAT, I'LL JUST SAY THAT, UM, IT, UH, IT LED TO SOME, SOME ISSUES THAT ERCOT WAS CONCERNED ABOUT.
UH, AND THE, UH, THE GROUP MET AND WE CAME UP WITH THREE DIFFERENT OPTIONS.
UH, THE IMM, UH, WOULD SHIFT THE CARD ALLOCATION TO AN AVERAGE OF THE 500 PEAK DEMAND HOURS IN EACH MONTH.
GEORGETOWN WOULD ALLOCATE THE PRESENT YEAR MONTHLY CARD DISBURSEMENTS BASED ON LAST YEAR'S FOUR CP AVERAGES USED FOR TCOS.
VISTRA USES A TWO-FACTOR APPROACH TO TAKE INTO ACCOUNT THE TOP 60 TO 120 HOURS PER MONTH WITH SOME SPECIFIC LOGIC MAKING IT DIFFICULT TO PREDICT.
SO I THOUGHT THIS WAS A VERY GOOD EXAMPLE OF, OF OUR SUBCOMMITTEE AND WORKING GROUP, UH, UH, WORKING WITH, UH, ERCOT AND THE IMM TO, TO COME UP WITH SOME OPTIONS THAT, UH, WE KIND OF WORK THROUGH BEFORE THE ACTUAL PROTOCOL REQUEST CHANGE, UH, IS FILED AND HOPEFULLY THAT PROCESS WILL, WILL MOVE, UH, FASTER.
WE WILL HAVE A, A VOTE ON THESE OPTIONS.
MEMBERS WILL VOTE, UH, ON WHICH PREFERENCE THEY HAVE AT OUR NEXT MEETING.
UH, THIS IS OUR, OUR LIST OF TABLED REVISION REQUESTS.
THE ONLY REAL CHANGE WAS 1250.
WE VOTED TO ENDORSE APPROVAL AS SUBMITTED.
OUR NEXT MEETING IS DECEMBER 4TH.
YOU'RE ALL WELCOME TO BE THERE.
AND ANY QUESTIONS? ANY QUESTIONS FOR ERIC? OKAY, WE ARE ONTO
[10. Credit Finance Sub Group Report (Vote)]
THE CREDIT FINANCE SUBGROUP REPORT.UM, THIS IS, UH, YEP, BRENDA GER HERE.
I DROVE THE 15 MINUTES TO BE HERE WITH YOU ALL TODAY FOR MY LAST, UH, TAC PRESENTATION ON BEHALF OF CFSG.
SO IT'S VERY NICE TO SEE YOU ALL IN PERSON.
OH, OH, DO I, OH, DO I? YEAH, YEAH, YOU'RE LIVE ON THIS LAPTOP.
THIS, THIS SCREEN IS MIRRORING THAT ONE.
WHATEVER'S ON THE SCREEN IS WHAT EVERYONE SEES.
YEAH, MY CONTACTS ARE A LITTLE WEAK.
UM, SO THIS WAS FROM OUR NOVEMBER 15TH MEETING.
WE HAD SOME OPERATIONAL NPR TO DISCUSS WITHOUT CREDIT IMPACT.
UH, WE DISCUSSED OUR EAL CHANGE PROPOSALS, SYSTEM REPORTING AND ENHANCEMENT CREDIT UPDATES, AND THE REGULAR CREDIT EXPOSURES.
OKAY, SO I MENTIONED THIS LAST TIME.
OUR CUT CREDIT IS IMPLEMENTING 1184, WHICH WAS PRESENTED BY 10 ASCA.
IT'S THE MANAGEMENT OF INTEREST COLLATERAL RECEIVED BY ERCOT AND OWED TO COUNTERPARTIES, UH, THAT WAS
[02:35:01]
MOVED FROM ANNUAL TO MONTHLY.UH, ERCOT PRESENTED, UH, THEIR REPORTS THAT THEY ARE, UH, YOU'LL SEE IN STARTING IN DECEMBER ON THIS.
SO THERE COULD BE SOME FORMATTING CHANGES AND SO ON THAT, UH, USERS OF THOSE REPORTS SHOULD BE FAMILIAR WITH IN CASE THEY'RE COPYING AND PASTING THEM.
BUT, AND THEY DISCUSSED, UH, WE DISCUSSED AUTOMATED EMAILS TO, UH, WE'LL BE SEEING COUNTERPARTY CREDIT CONTACTS WHENEVER THERE'S A CHANGE IN, UH, LCS OR SURETY BONDS.
PLEASE REACH OUT TO ERCOT IF YOU HAVE ANY QUESTIONS, BUT MAYBE LET FOLKS KNOW THEY, THERE ARE GONNA BE SOME FORMATTING CHANGES IN THEIR REPORTS.
UH, I'LL GO THROUGH THIS QUICKLY.
THE ESTIMATE AGGREGATE LIABILITY, I TALKED ABOUT THIS LAST TIME.
UH, THE, WE ARE, THIS IS BASICALLY THE FORMULA THAT DRIVES COLLATERAL POSTINGS TO ERCOT.
IT HAS, YOU KNOW, FIVE BASIC COMPONENTS.
NOW, UM, YOU KNOW, THE KEY DRIVER TENDS TO BE, UH, THE, UH, FORWARD ADJUSTMENT FACTOR APPLIED TO THE, UH, REAL-TIME LIABILITY.
SO THIS IS, THIS IS DESIGNED TO, WHEN PRICES GO UP, THERE'S A RATIO OF FORWARD PRICES TO SETTLEMENTS THAT ARE APPLIED TO YOUR INVOICE EXPOSURE.
AND THAT WORKS IN ANTICIPATION OF, UM, YOU KNOW, RISING PRICES AND TO PROTECT THE MARKET FROM POTENTIAL DEFAULTS.
SO, UH, WE HAD DISCUSSED WITH ERCOT, AND ERCOT WAS PROCEEDING AHEAD ON, UH, A NEW FORM FOR THIS, WHICH, UM, FOR THIS FORMULA, WHICH USED THE FORWARD ADJUSTMENT FACTORS, BUT APPLIED THEM PRINCIPALLY TO THE, UH, NETTED, UH, REAL TIME AND DAY AHEAD FACTORS.
SO IT WAS, IT WAS NETTING, THOSE YOU CAN SEE HERE BEFORE DAY AHEAD IS DAY AHEAD WAS SEPARATE FROM, UM, THE MAX RTL HERE, THERE COMBINED, UH, THEY MADE SOME OTHER CHANGES.
UM, THEY WILL BE HERE TO TALK TO YOU ABOUT THAT IN DETAIL.
HOWEVER, AT OUR LAST MEETING, UH, ERCOT, UM, PROPOSED DOING SOMETHING A BIT MORE SIMPLIFIED AND, UH, THIS EARLY ON IN OUR DISCUSSIONS AND REEVALUATING, UH, THIS ALGORITHM, UM, I THINK SETH, UH, BROUGHT UP, WELL, WHY NOT JUST, UM, SOMETHING WE COULD DO TO AVOID, YOU KNOW, OVER COLLATERAL POSTING IS RATHER THAN TAKE THE MAX TIMES THE, UH, HIGHEST INVOICE EXPOSURE IN THE LOOKBACK PERIOD, JUST TAKE THE HIGHEST COMBINATION OF THOSE TWO SERIES OF VALUES.
UH, SO, AND AGAIN, JUST GOING TO THE, THROUGH THE BACKGROUND OF THIS A LITTLE BIT, UH, THIS WAS CHANGED FROM A SORT OF STATIC SEASONAL ADJUSTMENT FACTOR, UM, METHODOLOGY THAT WAS, IT REALLY DIDN'T CAPTURE, UM, ANY OF THE SORT OF DYNAMICS OF, OF THE MARKET.
SO WHAT THEY IMPLEMENTED WAS, YOU KNOW, A A RATIO OF, UH, FORWARD PRICES TO SETTLE PRICES THAT HAS FUNCTIONED WELL.
HOWEVER, UM, IN LOOKING BACK AT IT, UH, WHAT HAS HAPPENED IS GOING INTO AN EVENT, SO THINK ABOUT LIKE THE SUMMER OF 2023, YOU KNOW, YOU SEE THIS BIG PRICING EVENT, PRICES COME BACK DOWN, AND THEN THERE'S ANOTHER ONE IN THE FUTURE WHERE THEY COME UP AGAIN AND THEN THEY KIND OF GO BACK DOWN.
BUT THERE'S THAT GOING BACK DOWN PART.
THERE'S A LOT OF VOLATILITY IN THOSE NUMBERS.
AND THE WAY THE, UM, THE WAY THE FORMULA IS DESIGNED IS THAT VOLATILITY IN THOSE NUMBERS IS, UH, APPLIED AGAINST YOUR HIGHEST HISTORICAL, UH, BASICALLY YOUR HIGHEST HISTORICAL INVOICE EXPOSURE DURING THE LOOKBACK PERIOD OF 40 DAYS.
SO WHAT THEY HAD NOTICED, UM, WAS, UH, WHAT ERCOT HAD NOTICED IN THEIR ANALYSIS WAS WE WERE SEEING THIS KIND OF DOUBLE TOP PHENOMENON.
AND BASICALLY IT'S, UH, IT'S JUST RELATED TO KIND OF THE VOLATILITY IN THE PRICES, BUT IT'S COMING OUT OF AN EVENT AND MAYBE THERE'S SOME VOLATILITY IN THE FORWARD PRICES, BUT THAT VOLATILITY IS THAT THAT RATIO FORWARDS TO SETTLED IS GETTING APPLIED AGAINST A HISTORICAL, UM, INVOICE EXPOSURE.
AND SORT OF THE BOTTOM LINE HERE IS THERE HAVE BEEN INSTANCES WHERE MARKET PARTICIPANTS ARE OVER COLLATERALIZING, YOU KNOW, MILLIONS, TENS OF MILLIONS OF DOLLARS ABOVE THEIR ACTUAL EXPOSURE.
AND, UM, UH, SO THAT'S SOMETHING THAT WE WANTED TO AVOID.
AND ALSO IN LOOKING AT THIS, WE WANTED TO AVOID, OBVIOUSLY UNDER COLLATERALIZATION.
WE'RE HERE TO PROTECT THE MARKET.
UM, SO ERCOT LOOKED AT, YOU KNOW, SIX, 10 DIFFERENT SCENARIOS OF, OF HOW, UM, HOW THEY CAN IMPROVE THIS.
BUT YOU KNOW, THE FIRST PRIORITY WAS TO AVOID, UH, ANY UNDER COLLATERALIZATION.
UH, SO, UH, GOING BACK, THIS IS HANDY HERE.
UM,
[02:40:01]
UH, THE MAX OF THE, OH, WHOOPS.THAT'S THE RFF APPLIED INTO THE MAX RTLE GOING BACK THE 40 DAYS.
SO NOW WHAT IT'S DOING IS IT IS JUST TAKING THE MAX OF THE COMBINATION OF THOSE TWO NUMBERS ON THE SAME DAY, AND THAT IS THE NUMBER THAT GOES IN YOUR LOOKBACK PERIOD.
THIS IS GOOD BECAUSE THE RARELY WOULD THOSE, WOULD THE, UH, FORWARD ADJUSTMENT FACTOR AND YOUR HIGHEST EXPOSURE OCCUR AT THE SAME TIME.
'CAUSE IT'S SORT OF LOOKING FORWARD.
SO THIS SHOULD, IT SHOULD, YOU KNOW, PROTECT THE MARKET FROM, YOU KNOW, DEFAULTS AND INVOICE EXPOSURE.
BUT IT SHOULD ALSO SUBSTANTIALLY ELIMINATE THIS PROBLEM WITH OVER COLLATERALIZATION.
AND AGAIN, THIS CAN BE TENS OF MILLIONS OF DOLLARS.
UM, SO THE OTHER THING THEY, THEY BROUGHT UP WAS THE KIND OF THE IMPLEMENTATION STRATEGY.
AND THAT IS WITH THE ORIGINAL PLAN THAT WE WERE GOING WITH, WHERE WE WOULD NET REAL TIME AND DAY AHEAD.
UM, THAT'S A HEAVY LIFT AS FAR AS IMPLEMENTING REWRITING CODE AND, UM, DOING THAT KIND OF STUFF.
THIS PROPOSAL IS ACTUALLY VERY LIGHT AND ERCOT IS GONNA BE, UH, DOWN RESOURCES FOR, UM, THE, UH, YOU KNOW, REALTIME CO-OP OPTIMIZATION.
SO THEY CAME UP WITH A CONCEPT OF A PLAN TO, UM, TO, TO HAVE A SORT OF EXPEDITED IMPLEMENTATION STRATEGY, WHICH THEY INDICATED THEY COULD DO IN THE FAIRLY NEAR TERM.
AND, UM, SO WE'RE GONNA HAVE A MEETING IN DECEMBER AND DISCUSS THAT.
UM, BUT I GUESS MY PERSONAL VIEW ABOUT IT IS, YOU KNOW, IF WE HAVE ANOTHER 2023 SUMMER AND WE CAN GET THIS SORT OF SMALLER, UH, SCALED DOWN VERSION OF THIS IN, UH, IT'D BE GOOD TO GET THAT IN BEFORE THE SUMMER.
'CAUSE AGAIN, IT'S, UH, POTENTIALLY TENS OF MILLIONS OF DOLLARS.
SO I THINK THE GOAL HERE IS TO US FOR TO VOTE IT OUT IN SUPPORT OF OUR COMMITTEE NEXT WEEK.
UM, AND THEN THEY WILL BE, UH, OR CUT CREDIT WILL PRESENT TO THIS AUGUST BODY IN, UH, JANUARY, AND THEY'LL HAVE A FULL, YOU KNOW, SOUP TO NUTS PRESENTATION AND THEY WOULD LIKE YOUR SUPPORT OBVIOUSLY, UH, TO BE ABLE TO MOVE AHEAD ON THIS.
BUT YOU KNOW, IF I, I'M, I'M NOT ENDORSING, UH, GOING QUICKLY, UH, BUT IT'S, IF IT DOES GET TIED UP, WHICH IS PERFECTLY REASONABLE, UM, THERE COULD BE SUBSTANTIAL DELAYS, UH, RESULTING FROM THE IMPLEMENTATION OF THE REALTIME CO-OP OPTIMIZATION.
UH, WE LOOKED AT THESE NPRS, THEY'RE ALL OPERATIONAL.
I WON'T GO THROUGH THEM ONE BY ONE.
AS FAR AS THE MONTHLY HIGHLIGHTS, TOTAL EXPEND, UH, POTENTIAL EXPOSURE REMAIN FLAT AT 1.73 BILLION REAL TIME AND DAY AHEAD.
PRICES WERE FLAT DISCRETIONARY COLLATERAL, UH, WE WILL SHOW IN A MINUTE.
UM, IT WENT, IT DROPPED FROM 3.992 TO 3.82 BILLION, AND THERE WERE NO UNUSUAL CALLS.
UH, THIS IS SORT OF THE HISTORICAL, UM, UH, COLLATERAL POSTINGS RELATIVE TO, UH, EXPOSURE, WHICH WOULD BE DRIVEN AGAIN BY THAT EAL, UH, BY TYPE.
YOU CAN SEE MOSTLY IT'S LETTERS OF CREDIT.
SO THERE IS AS USUAL SUBSTANTIAL, UH, UM, EXCESS IN THE MARKET, BUT YOU NEED THAT FOR DAY AHEAD, UH, DISCRETIONARY COLLATERAL IS HOW WE DESCRIBE THAT.
UM, THIS IS LOOKING PRETTY TYPICAL.
UH, AND, UH, I, WE TALKED ABOUT THE, UM, THERE WAS A PROBLEM WITH LC LIMITS.
UH, ERCOT INCREASE THOSE AND THERE ARE, UH, THERE WEREN'T ANY, UM, COMPLIANCE ISSUES JUST INCREASING THOSE LIMITS, RESOLVE THOSE COMPLIANCE ISSUES.
ALL RIGHT, WELL, THIS IS NOT GOODBYE, BUT THIS STILL APPROXIMAL BASE ONE VOTING ITEM MEMBERSHIP.
WE DID HAVE A MEMBERSHIP VOTING ITEM.
AND I'M SORRY I DIDN'T GET YOU CREDIT THEMED COOKIES, BUT I, I PROBABLY WOULDN'T EVEN KNOW WHAT THOSE LOOK LIKE.
SO I'LL THINK ON IT AND MAYBE, MAYBE WE'LL HAVE THEM
IT'S LIKE A BALANCE SHEET OR SOMETHING.
CAN WE PUT THE ADDED MEMBER, UM, TO THE CREDIT FINANCE SUBGROUP ON THE COMBO BALLOT? BRIAN, ARE YOU TRYING TO MAKE A COMMENT? I, I WANTED TO, I, UM, WORKED WITH BRENDAN FOR A LONG TIME AND I JUST APPRECIATE ALL OF THE EXUBERANCE HE BROUGHT TO THE CREDIT FINANCE SUBGROUP.
ALSO, UH, SUPPORT ELIMINATING THE DOUBLE TOP.
[02:45:01]
I THINK THAT SEEMS LIKE A, A GOOD, UH, ENHANCEMENT.IT WAS GREAT TO SEE YOU IN PERSON, BRENDAN.
ALL RIGHT, BILL, I JUST WANTED TO SECOND THAT.
BRENDAN WAS THE FIRST EVER CHAIR OF THE CFSG.
THAT'S, HI, THAT'S HISTORIC MAN.
I'M ALSO EXCITED ABOUT GETTING DON BACK.
I DON'T EVEN IF YOU REMEMBER, WE'VE, WE COULDN'T HAVE DONE IT WITHOUT, DON HAS BEEN A PART OF THE CREDIT WORKING GROUP FOR A LONG TIME TOO, SO THANK YOU, BRENDAN.
THAT'S, THAT'S TRUE, HUH? BECAUSE THIS IS, WE JUST STARTED THE CREDIT FINANCE SUBGROUP 23.
WELL, YOU'LL COME BACK, RIGHT? I STILL LOVE PROXY MY DAYS.
IS THAT LATIN? OKAY, LET'S MOVE ON.
[12. ERCOT Reports]
ER CUT REPORTS.WE HAVE CATHERINE WITH THE SEGMENT MEMBERSHIP DISCUSSION.
UM, I'M CATHERINE GROSS WITH THE ERCOT LEGAL DEPARTMENT, AND TODAY I WAS GONNA GO OVER, UM, SOME INFORMATION ABOUT SEGMENT MEMBERSHIP.
WE HAD TALKED ABOUT THIS AT THE SEPTEMBER TAC MEETING, SO I'M JUST FOLLOWING UP ON THAT.
UM, SO I WAS GONNA GIVE SOME BACKGROUND ON THE CURRENT SEGMENTS AND THEN ALSO GIVE SOME INFORMATION ABOUT HOW THE SEGMENT MAKEUP HAS CHANGED SINCE 2014.
UM, BUT SOME KEY TAKEAWAY TAKEAWAYS IS, UM, AS WE DISCUSSED IN SEPTEMBER, IF STAKEHOLDERS WANT TO EXPLORE CHANGING SEGMENT STRUCTURE, ERCOT CAN FACILITATE THAT.
AND WE HAD TALKED ABOUT WORKSHOPS THAT COULD BE HELD, UM, STARTING MAYBE AFTER THE HOLIDAYS.
UM, I'M GONNA PRESENT SOME INFORMATION ABOUT JUST HOW DATA HAS CHANGED OVER THE LAST 10 YEARS.
UM, OF COURSE, THE, THE GENERATION THAT WE HAVE IN ERCOT HAS CHANGED A LOT IN THE LAST 10 YEARS.
I'LL PRESENT SOME DATA ON THAT.
AND THEN ALSO THE BIG TAKEAWAY IS THE INDUSTRIAL CONSUMER SEGMENT HAS CHANGED, UM, AS WELL AS OVER THE LAST 10 YEARS, THE TOTAL NUMBER OF MEMBERSHIP APPLICATIONS THAT WE'VE BEEN GETTING.
AND, UM, JUST A REMINDER THAT, UM, ANY CHANGES THAT ARE TAKEN WITH THE SEGMENT COMPOSITION, THAT WOULD HAVE TO BE A BYLAW AMENDMENT.
UM, SO AGAIN, WE HAD TALKED ABOUT THIS IN SEPTEMBER.
UM, IT HAD COME UP BECAUSE AS WE AT THAT POINT WERE ABOUT TO OPEN OUR ANNUAL MEMBERSHIP APPLICATION PROCESS, THERE WAS THIS QUESTION ABOUT WHERE DATA CENTERS AND CRYPTOCURRENCY MINERS SHOULD GO.
AND WHAT WE TALKED ABOUT IS THAT THEY, THEY DIDN'T FIT NEATLY INTO THE BYLAWS DEFINITION OF EITHER INDUSTRIAL CONSUMER SEGMENT OR THE LARGE COMMERCIAL CONSUMER SEGMENT.
BUT BASED ON ERCOT INTERPRETATION OF THE BYLAWS, THEY FIT BEST INTO THE INDUSTRIAL SEGMENT.
SO WE ASKED FOR THE 2025 MEMBERSHIP APPLICATION, WHICH AT THAT POINT WAS ABOUT TO START.
WE ASKED THAT THOSE, UM, ENTITIES PUT THEMSELVES INTO THE INDUSTRIAL SEGMENT, AND WE WOULD, WE COULD TALK ABOUT, UM, A SOLUTION FOR THE FOLLOWING YEAR.
UM, JUST A REMINDER, IT HAD BEEN IN THE PUBLIC, UM, PUBLIC UTILITY REGULATORY ACTOR PRA IT HAD BEEN, UM, DICTATED THE SEGMENTS THAT ERCOT NEEDED TO HAVE, AND THAT'S WHERE THAT CAME FROM.
UM, BUT IN 2021, UM, SENATE BILL TWO TOOK OUT THAT LANGUAGE FROM PRA.
SO NOW IT'S JUST IN OUR BYLAWS.
AND, UM, I'M GONNA GIVE A A CAVEAT.
WHEN THESE SLIDES WERE BEING PREPARED, THE 2025 MEMBERSHIP APPLICATION PROCESS HADN'T YET CONCLUDED.
SO ALL OF THIS IS GONNA GO UP TO 2024, BUT YOU CAN SEE THAT IF YOU'RE LOOKING AT 2014 THROUGH 2020, UH, FOUR, THE MEMBERSHIP, UH, THE TOTAL NUMBER OF MEMBERS THAT WE HAD HAS GONE UP PRETTY, UM, PRETTY STEADILY, I GUESS.
UM, BUT WHAT I WILL SAY IS THAT FOR 2025, WHICH IS NOT ON THIS SLIDE, WE HAD A TOTAL OF 326 MEMBERS.
SO IT DID GO BACK DOWN A LITTLE.
UM, BUT STILL THE, THE LAST TWO YEARS, UM, 2024 AND 2025, THOSE NUMBERS HAVE BEEN THE LARGEST OF ALL OF THESE YEARS THAT ARE UP HERE.
UM, YOU ALL ARE ON TECH, SO YOU SHOULD KNOW THIS OR THIS SHOULD JUST BE REFRESHER, BUT THESE ARE THE, UM, SEATS FORT AND THE VOTING.
[02:50:01]
UM, HERE'S A SLIDE FOR RMS ROSS AND WMS AND THEN, UM, THE INFORMATION FOR PRS.UM, SO LOOKING AT 2024 AND COMPARING THAT TO 2014, UM, THERE ARE SOME GENERAL TRENDS.
UM, THE INDEPENDENT GENERATORS, UM, INCREASED, UM, OR I'M SORRY, THE, UH, I'M TRYING TO REMEMBER THE IN, YEAH, THE INDEPENDENT GENERATORS, UM, DID INCREASE IN TOTAL NUMBER AND WENT UP ABOUT FOUR PERCENTAGE POINTS, UM, OF THE TOTAL SHARE.
AND, UM, THAT IS ALSO SIMILAR FOR THE INDUSTRIAL CONSUMER SEGMENT.
AND THEN ANOTHER NOTABLE THING IS THAT COMPARING THOSE TWO SNAPSHOTS IN TIME, UM, THE REP SEGMENT WENT DOWN ABOUT 5% OF THE TOTAL MEMBERSHIP SHARE.
UM, IF YOU COMPARE JUST 2023 TO 2024, UM, A NOTABLE TREND THAT I SAW WAS THAT THE INDUSTRIAL CONSUMER SEGMENT HAD GONE UP, UM, ABOUT THREE PERCENTAGE POINTS OF THE TOTAL MEMBERSHIP SHARE.
UM, AND AGAIN, IF THERE, IF PEOPLE WANT MORE DISCUSSION ON THIS, I CAN UPDATE THIS FOR 2025 NOW THAT I HAVE ALL OF THAT INFORMATION.
UM, AND THEN, UH, THIS ISN'T MEMBERSHIP SPECIFIC INFORMATION, BUT THIS IS JUST DATA ON HOW, UM, IN THE LAST 10 YEARS OR SO, THE COMPOSITION OF GENERATION HAS CHANGED.
UM, AND THEN NOTABLY, LIKE IN, UH, 2014, THERE WERE NO CRYPTOCURRENCY CENTERS OR DATA CENTERS IN THE INDUSTRIAL CONSUMER SEGMENT.
AND WHERE IT SAYS TODAY THAT'S 2024, UM, FOR THE 2024 MEMBERSHIP, THERE WERE NINE.
UM, AND ALSO NOTABLE, UH, YOU SEE THOSE ENTITIES IN THE COMMERCIAL CONSUMER SEGMENT IN 2024.
AGAIN, WE TOLD THEM FOR 2025 NOT TO PUT THEMSELVES IN THAT SEGMENT.
UM, AND SO THOSE ARE JUST SOME GENERAL TRENDS.
THERE'S PROBABLY OTHER DATA POINTS THAT MIGHT BE HELPFUL THAT WOULD SHOW HOW THINGS HAVE CHANGED IN THE LAST 10 OR WHATEVER YEARS.
IF PEOPLE HAVE IDEAS ABOUT THINGS THAT WOULD BE HELPFUL FOR A CONVERSATION.
UM, I'M HAPPY TO HELP WITH THAT.
UM, BUT I THINK IF PEOPLE ARE STILL INTERESTED IN LIKE, TALKING ABOUT THIS, I THINK THE NEXT STEP WOULD BE TO SCHEDULE LIKE A WORKSHOP OR SOMETHING PROBABLY IN JANUARY.
I THINK THERE'S A LOT TO DISCUSS ON THIS.
UM, UH, YEAH, WE HAVEN'T CHANGED OUR SEGMENTS EVER, SO I MEAN, I, I, AND THIS, OUR MARKET'S CHANGED SIGNIFICANTLY IN 20 YEARS, SO I APPRECIATE YOU GUYS BRINGING THIS TO OUR ATTENTION AND, UM, TEEING UP THE POSSIBILITY OF A DISCUSSION.
SO BOB, YEAH, THERE, THERE IS A LOT OF DATA IN THERE TO, TO PUT YOU'RE RIGHT, BILL.
UH, THE THING I WANT TO KEEP BRINGING UP THOUGH, EVERY TIME WE TALK ABOUT THIS IS WE HAVE TO BE CAREFUL OF BALANCE AND ANYTHING WE DO IS GOING TO BE A LONG DRAWN OUT A DEAL TO MAKE SURE THAT THAT BALANCE REMAINS IN PLACE AND NO SEGMENT OR GROUP HAS A HEAVIER WEIGHT THAN THE OTHER ONE FROM TRYING TO APPROVE THINGS.
YOU, YOU KNOW, YOU WERE HERE WHENEVER WE HAD THE CHANGES TO, TO THE, TO PURE, UH, OVER AT THE LEGISLATURE CHANGING INTO INDEPENDENCE AND DOING EVERYTHING ELSE.
WE TRIED TO MAINTAIN BALANCE ALL THE WAY THROUGH ALL OF THOSE CHANGES.
AND THAT'S GONNA BE REALLY DIFFICULT I THINK WHEN WE START LOOKING AT TRYING TO CHANGE THIS WITHOUT TURNING THIS INTO A, UH, AN SPP MOPSY WHERE EVERY MEMBER IS ON IT, YOU KNOW, UH,
I THINK THIS IS AN IMPORTANT CONVERSATION THAT, UH, WILL TAKE A LOT OF FINESSING.
UM, SO I THINK IT'S, IT'S DEFINITELY WORTH HAVING THAT AND HAVING THAT SOONER RATHER THAN LATER.
SO, UM, HOPEFULLY WE CAN WORK SOMETHING OUT FOR 2026.
I THINK IT'S AN IMPORTANT SUBJECT TO TALK ABOUT AND TO REVISIT
[02:55:01]
AND LOOK AT, UM, BECAUSE IT'S BEEN A LONG TIME AND THERE'S BEEN A SIGNIFICANT DIFFERENCE OF WHAT'S HAPPENED AND GROWTH IN THE DIFFERENT SEGMENTS, SO I THINK THAT'S WORTHWHILE.ONE THING I'D ASK, TRY TO ASK ERCOT IF YOU COULD DO TO MAYBE GET US STARTED IN THE RIGHT DIRECTION, IS LOOK AT WHAT OTHER ISOS ARE DOING AROUND THE COUNTRY AND SEE IF WE COULD KIND OF HAVE A LITTLE PRESENTATION ABOUT THAT.
AND MAYBE THAT WOULD KICKSTART SOME, SOME DISCUSSIONS AROUND THAT.
AND THEN ALONG WITH THAT IS WHAT THE MEMBERSHIP FEES IS, THE MEMBERSHIP HAS INCREASED, WHAT'S, WHAT'S HAPPENING WITH THE MEMBERSHIP FEES? WHAT, WHAT'S THAT COVER KIND OF THE, THE BACKGROUND BEHIND THAT PIECE OF IT AS WELL? SO WE, NOT TODAY, BUT WE CAN TALK ABOUT THAT IN JANUARY, HOPEFULLY.
CATHERINE, CAN YOU TALK US THROUGH, SO THIS WOULD NEED A BYLAW CHANGE, CORRECT? MM-HMM,
I DO THINK THE PUC HAS TO, OKAY.
DO YOU KNOW ANN OF THAT? SORRY.
IT'S, I THINK IN SECTION 13 OF THE BYLAWS, IT DESCRIBES THE AMENDMENT PROCESS.
BUT THAT, I KNOW THAT DOESN'T NEED TECH APPROVAL, BUT ERCOT INTENTION WOULD BE TO WORK WITH STAKEHOLDERS THROUGHOUT THE YEAR BEFORE IN, IN ORDER TO PRESENT THE BOARD A, A SET OF SUGGESTED BYLAW CHANGES.
UH, CAITLIN, ERIC SCHUBERT HERE, I THINK WE HAVE TO BRING THE COMMISSION IN ON THIS AT THE, AT LEAST AT THE END, UH, THIS HAS POLICY IMPLICATIONS TO RETURN ON HOW THE MIX CHANGES.
SO I THINK AT LEAST A REVIEW AND APPROVAL, UH, WOULD BE A GOOD IDEA WHETHER OR NOT IT'S STRICTLY PART OF THE BYLAWS OR NOT FOOD FOR THOUGHT.
I WAS JUST ASKING, YOU KNOW, LOGISTICALLY WHAT IS THE PROCESS HERE? WHAT, WHAT'S THE TIMELINE? SO WE, OKAY.
SO WE WOULD, I THINK IDEALLY WE WOULD WANT, IF PARTICULARLY THE ISSUE THAT ROSE OR THAT BROUGHT THIS UP TO BEGIN WITH WAS THE DATA CENTERS AND, UM, CRYPTOCURRENCY CENTERS IS TO BE ABLE TO RESOLVE THAT BEFORE THE NEXT MEMBERSHIP YEAR STARTS.
SO AROUND LIKE NEXT SEPTEMBER TO HAVE A RESOLUTION OF THAT AT LEAST.
BOB, IS YOUR CARD SLIP? I PUT IT BACK UP.
UH, NO, JUST TO TALK ABOUT THE BYLAWS ARE APPROVED BY THE COMMISSION, SO I THINK THAT THAT TAKES CARE OF WHAT ERIC WAS TALKING ABOUT IN THE END, UH, HOWEVER, I'M NOT EVEN REMOTELY CONVINCED THAT WE WOULD EVER BE ABLE TO, TO, AND THIS BODY COME UP WITH A NEW STRUCTURE THAT WE COULD ALL BUY INTO.
I JUST DON'T SEE THAT HAPPENING.
SO I THINK THE BEST ROUTE, AT LEAST FOR NOW, WHICH WAS JUST MENTIONED, LET'S FIX THE IMMEDIATE PROBLEM WE HAVE.
IF YOU LOOK AT, IF YOU GO BACK THROUGH HISTORY, THE LAST GROUP WE DID THAT TO, OH, IT WAS A CONSUMER GROUP
AND IT LOOKS LIKE WE MAY HAVE TO REVAMP THAT AGAIN TO SOME DEGREE, BUT I WOULD PREFER, FROM MY PERSPECTIVE, IT'D BE MUCH EASIER, LESS CONTROVERSIAL TO AT LEAST HIT THAT, GET THAT DONE, AND THEN WE CAN LOOK WHAT'S GOING FORWARD.
CHRIS, WAS YOUR CARD UP AGAIN? IT WAS, AND THEN I TOOK IT DOWN AND THEN I PUT IT BACK UP.
SO I GUESS ONE OF THE OTHER THINGS THAT KIND OF, AS WE WERE TALKING ABOUT THAT, AND CAITLYN BROUGHT UP THE BYLAWS, IT KIND OF BROUGHT IT IN MY MIND, WHAT IS THE BENEFIT OF BEING A MEMBER? AND SO THAT'S KIND OF ONE OF THE OTHER THINGS THAT I THINK WE PROBABLY NEED TO PUT OUT THERE AND KIND OF THINK ABOUT IS WHAT DO YOU GET FROM MEMBERSHIP OF BEING A MEMBER? BECAUSE LOOKING AT SOME OF THE SEGMENTS, THERE'S A LOT OF INDUSTRIAL CONSUMERS THAT ARE THERE, BUT THERE'S A LOT OF INDUSTRIAL CONSUMERS IN TEXAS THAT AREN'T MEMBERS.
THERE'S NO REAL IN USE COMMERCIAL, SMALL OR LARGE COMMERCIAL CONSUMERS THAT ARE MEMBERS.
AND SO SOME OF THOSE HAVE FALLEN OUT OVER THE YEARS.
AND THE QUESTION IS WHY AND WHAT, WHAT'S IMPORTANT FOR PEOPLE.
MARK, I JUST WANNA NOTE FOR THE RECORD THAT FOR THE 2025 MEMBERSHIP, WE HAVE 147, UH, COMMERCIAL CONSUMER MEMBERS WHO ARE CITIES AND OTHER SMALL AND LARGE COMMERCIAL CONSUMERS OF ELECTRICITY.
[03:00:05]
THANK YOU, CHRIS.CHRIS, DID YOU WANNA, YOU LOOK LIKE YOU WANNA RESPOND TO THAT? I'D LIKE TO PUT AN ASTERISK ON THAT AND SAY, YES, THERE'S CITIES AND WATER DISTRICTS, BUT THERE'S NO OTHER END USE CONSUMERS OUT THERE.
AS FAR AS I KNOW, UM, WE HAVE 147 SMALL AND LARGE COMMERCIAL CONSUMERS.
UH, SOME OF THEM ARE SMALL, SOME OF THEM ARE LARGE.
THEY OPERATE LIKE WATER SYSTEMS THAT CONSUME LARGE AMOUNTS OF ELECTRICITY.
AND WE WORK VERY HARD TO HAVE THEM ENGAGED IN TTA AND DO OUR BEST TO REPRESENT THEM.
CHRIS, DO YOU WANNA TELL US HOW MANY RETAILERS THERE, THERE ARE FOR 2025
UM, AND, AND ERIC SCHUBERT TOTALLY RIGHT.
I JUST WANTED TO CONFIRM THAT.
I DON'T WANNA PRESUME TO TELL THE COMMISSION YOU HAVE TO LOOK AT THIS OR NOT, BUT I THINK BARKSDALE BEING HERE, I I THINK STAFF WILL BE INFORMED OF THIS DISCUSSION.
REALLY WHAT I WAS GETTING AT WAS THE SORT OF PROCESS, AND, AND MAYBE IT'S MY POINT NOW IS THAT THIS, THIS DOES NOT NEED TO BE TAC APPROVED.
SO I, I THINK WHAT WE ARE THINKING HERE IS THAT ERCOT IS LETTING US COLLABORATE WITH THEM ON THEIR PROPOSAL THAT WOULD GO TO THE BOARD AND, AND ONLY NEEDS TO BE CHANGED AND BYLAW.
SO ONLY APPROVED BY THE BOARD AND, AND THE PC, I BELIEVE.
UM, AND I JUST WANNA MAKE SURE WE UNDERSTAND WHAT THE MECHANISM IS AND, AND WHEN WE EXPECT THAT TO HAPPEN.
YEAH, I I THINK THAT IN JUST, I'M PULLING UP THE BYLAWS ON MY PHONE.
UM, IT TALKS ABOUT FOR AN AMENDMENT TO THE BYLAW THAT IT SPECIFICALLY TALKS ABOUT A CORPORATE MEMBER SUGGESTING AMENDMENTS TO THE BYLAWS.
SO, UM, I MAY HAVE MISSPOKE WHEN I SAID THAT, YOU KNOW, WOULD BE ERCOT PROPOSAL.
I DON'T KNOW THAT ERCOT NECESSARILY HAS A STRONG OPINION, ALTHOUGH WE WANT IT TO BE FAIR, THE OUTCOME.
BUT I THINK THAT WE WOULD, UM, FACILITATE THE DISCUSSION, SEE WHERE THAT GOES.
AND IT MIGHT BE THAT TO FOLLOW THE PROCESS AND THE BYLAWS THAT SOMEONE HAS TO STEP UP AND MAKE A PROPOSAL, UM, AND THAT THAT WOULD GO TO A BOARD MEETING, UM, ACCORDING TO THIS.
AND THEN, UM, I AGREE THAT IT MAKES SENSE FOR THE PAC TO REVIEW THAT.
UM, BUT I THINK THAT IF WE HAVE A WORKSHOP IN JANUARY, I CAN KIND OF UPDATE THESE NUMBERS THAT ARE ON THESE SLIDES AND THEN HAVE, UM, MORE OF A, UM, A, I GUESS A TIMELINE OF, OF, OR OF WHAT WOULD HAPPEN.
I THINK THE PROCESS WOULD BE GOOD.
I THINK, YOU KNOW, TO THE EXTENT ORCO, HOW'S A POINT OF VIEW? 'CAUSE IT WAS SORT OF MY UNDERSTANDING THAT BECAUSE OF, YOU KNOW, WHERE, WHERE TO PUT THE CRYPTOCURRENCY PEOPLE, WE, WE SORT OF NEEDED TO DO SOMETHING, RIGHT? AND SO IF IF THAT'S NOT THE POSITION, IF THE POSITION IS ERCOT IS FINE, YOU KNOW, IT, IT'S NOT URGENT TO ERCOT, MAYBE THAT FRAMES OUR DISCUSSION DIFFERENTLY OR WE CAN TAKE LONGER ON IT.
BUT MY, MY UNDERSTANDING FROM OUR LAST CONVERSATION, WHICH IS WHY WE STARTED THIS SO EARLY, WAS ERCOT FELT THE NEED TO HAVE A NEW CLASSIFICATION OR, OR RESOLVE THAT ISSUE FOR, FOR 2026 MEMBERSHIP.
I DO THINK AT THE VERY LEAST, THE BYLAWS COULD BE JUST THAT THE DEFINITIONS OF, UM, INDUSTRIAL CONSUMER COULD BE FIXED.
SO THAT IT'S LIKE VERY CLEAR OKAY.
SO IT SEEMS LIKE THERE'S KIND OF A WIDE, WIDE RANGE OF THINGS WE COULD DO.
ANY OTHER QUESTIONS OR COMMENTS? BRIAN
I, I DO HAVE ONE MORE THING JUST TO THINK ABOUT.
AND IT HAS TO DO WITH, UM, UH, THE EXEMPTION FROM THE, UM, THE, THE EXEMPTION FROM THE, UM, UH, OUTAGE SCHEDULING FOR HOW YOU DEFINE INDUSTRIAL CONSUMER.
LIKE THERE'S THE EXEMPTION, IF YOU'RE PROVIDING ELECTRICITY FOR AN EXEMPTION FOR AN INDUSTRIAL CONSUMER, YOU COULD BE EXEMPTED FROM THAT PROCESS.
SO IT'S JUST ONE THING TO THINK THROUGH AS YOU'RE, YOU'RE MAKING THIS DEFINITION, THAT'S ALL.
SO IF WE'RE ADDING SOMETHING TO THE DEFINITION OF INDUSTRIAL CONSUMER, WHAT ARE ALL THE THINGS THAT FOLLOW THAT? OKAY.
[03:05:03]
OKAY.CATHERINE, DO YOU HAVE WHAT YOU NEED FROM US? YES.
I GUESS YOU'LL COME BACK IN JANUARY? YES.
OR WE'LL, WE'LL SCHEDULE A WORKSHOP IN JANUARY.
ALRIGHT, I THINK WE CAN MOVE TO OUR NEXT ITEM, WHICH IS THE PRICE CORRECTION, UH, NOVEMBER ONE INCOMPLETE WEEKLY DATABASE LOAD.
AND I SEE GORDON ON HIS WAY UP.
I'LL JUST BE GIVING A, A VERBAL UPDATE TODAY.
I DON'T HAVE A, A PRESENTATION.
SO, UM, MY NAME IS GORDON DRAKE.
I'M THE DIRECTOR OF MARKET DESIGN AND ANALYSIS AT ERCOT.
AND WANTED TO, UH, JUST PRESENT TO TAC ON A POTENTIAL PRICE CORRECTION THAT WE INTEND TO BRING FORWARD TO THE DECEMBER, UH, R AND M COMMITTEE AND DECEMBER BOARD MEETING FOR APPROVAL ON NOVEMBER 1ST.
UH, AS WE WERE UNDERTAKING A, UH, ROUTINE WEEKLY, UH, DATABASE LOAD, UM, FOR THE NETWORK MODEL, UH, ONE OF THE DATA PRO DATA TRANSFER PROCESSES FAILED, AND AS A RESULT, NOT ALL OF THE, UH, MODELING ELEMENTS WERE CARRIED FORWARD INTO THE NETWORK MODEL.
UH, THIS HAPPENED RIGHT AROUND MIDNIGHT, UH, ON NOVEMBER 1ST.
UM, WE IDENTIFIED THE ISSUE JUST AFTERNOON ON NOVEMBER 1ST, UH, 12:11 PM AND SO REAL TIME INTERVALS, UH, AND JUST REAL TIME NO IMPACT A DAY AHEAD, BUT REAL TIME INTERVALS BETWEEN 12:00 AM AND 12:30 PM ON NOVEMBER 1ST WERE IMPACTED.
WE ISSUED, UH, MARKET NOTICE ON NOVEMBER 8TH, UH, NOTIFYING THE MARKET OF OUR INTENT TO INVESTIGATE FOR A, FOR A POTENTIAL PRICE CORRECTION.
AND IF SO, UM, TO, TO TAKE THAT TO THE BOARD.
AND WE ISSUED A SUBSEQUENT MARKET NOTICE ON NOVEMBER 12TH, UH, WITH THE RESULTS OF OUR, UH, INVESTIGATION AND OUR INTENTION TO, TO SEEK, UH, APPROVAL AT THE DECEMBER BOARD MEETINGS.
WE HAVE TWO SETS OF CRITERIA THAT WE EVALUATE THESE PRICE CORRECTIONS AGAINST WHEN WE ARE CONTEMPLATING TAKING THEM TO THE BOARD.
UH, AND IT IS BASED ON THE IMPACT TO A SINGLE COUNTERPARTY, BOTH A A, AN ABSOLUTE DOLLAR IMPACT, AS WELL AS A, A PERCENTAGE IMPACT, UH, OF THEIR, THEIR SETTLEMENT AMOUNTS.
UM, THE FIRST CRITERIA IS, UH, A 2% RELATIVE IMPACT, OR, UH, SORRY, AND ALSO A $20,000 ABSOLUTE VALUE IMPACT.
THE SECOND CRITERIA IS WHETHER IT IS A 20% OR GREATER IMPACT, AND ALSO A $2,000 OR GREATER IMPACT TO, AS I SAY, A SINGLE COUNTERPARTY.
THERE WERE TWO COUNTERPARTIES THAT WERE IMPACTED UNDER THE SECOND CRITERIA, THE, THE 20% OR $2,000.
UM, AND THE, THE MAXIMUM AMOUNT THAT ANY SINGLE COUNTERPARTY WAS EXPOSED TO, UH, THAT, THAT WE'LL SEE WAS $2,758.
UM, AND THE, THE CRITERIA FOR THE PERCENTAGE WAS JUST MORE THAN 45%.
SO THAT WAS, OF THE TWO THAT WERE IMPACTED, ONE WAS IMPACTED IN A MAXIMUM AMOUNT OF JUST SHY OF $3,000.
UM, AND THE TOTAL IMPACT TO OUR OVERALL ERCOT MARKET SETTLEMENT STATEMENTS, UH, WAS JUST SHY OF $2,000.
UH, SO A VERY SMALL IMPACT IN THE OVERALL MARKET, UH, LESS THAN, UH, 0.02%.
SO WE WILL BE BRINGING FORWARD, UH, THE, UH, THE, THE PRICE CORRECTION TO THE RELIABILITY MARKETS COMMITTEE ON DECEMBER 2ND, SEEKING A RECOMMENDATION FROM THE COMMITTEE, UH, TO THE FULL BOARD TO APPROVE THE PRICE CORRECTION ON DECEMBER 3RD.
AND I'M HAPPY TO ANSWER ANY QUESTIONS.
ANY QUESTIONS FOR GORDON? OKAY.
OKAY, NOW WE HAVE THE ENCORE DELAWARE BASIN STAGES THREE AND FOUR RPG PROJECT.
I'M HERE TO PRESENT THE ENCORE DELAWARE BASIN, STAGE THREE AND FOUR RPG PROJECTS.
UM, SO OVERVIEW OF THIS PROJECT.
UH, THIS PROJECT WAS SUBMITTED BY ENCORE, UH, WITH AN ESTIMATED COST OF $202.2 MILLION THAT WILL REQUIRE A CCN.
UH, THE PRIMARY NEED FOR THE PROJECT IS TO ADDRESS LABOR ISSUES IN SEVERAL COUNTIES IN THE FOREST CULBERSON LA GREECE AND WARD COUNTIES.
UM, THIS PROJECT WAS INITIALLY IDENTIFIED IN THE
[03:10:01]
ERCOT 2019 DELAWARE BASIN STUDY.UH, THERE WERE SEVERAL STAGES.
UH, STAGE THREE AND STUDY FOUR WERE IDENTIFIED IN THE 2019 STUDY TO ADDRESS THE LOAD GROWTH IN THE DELAWARE BASIN AREA.
IN ADDITION TO THAT, UH, WITH ALL THE NEW ADDITIONS, LOAD LOAD PROJECTIONS, WE ALSO ADDED SOME LOCAL PROJECT TO THE STUDY AREA, WHICH IS LISTED HERE WITH THE IDCL ONE, L THREE AND L FIVE, WHICH IS PART OF THE 2024 PERMIAN BASIN RURAL LAB NEED THAT WAS IDENTIFIED RECENTLY.
UM, AGAIN, ON THE TIER ONE REQUIREMENTS, AS PER THE PROTOCOLS, UH, THIS FALLS, UH, THIS PROJECT EXCEEDS A HUNDRED MILLION DOLLARS AND WOULD REQUIRE A CCN.
SO, UH, THE REQUIREMENT IS
UH, IN THE BOARD PRESENTATION, THE PROJECT RELIABILITY NEED, UM, LISTED HERE, WE LOOKED AT OUR PLANNING CRITERIA AND THE NERC CRITERIA, AND WE DID IDENTIFY SEVERAL VOLTAGE VIOLATIONS.
AND, UM, ALSO IN ADDITION TO THAT, YOU KNOW, UNSOLVED ISSUES OR DIVERGENCE OF POWER FLOW ISSUES, UM, UNDER CERTAIN, UH, N CATEGORY CONTINGENCIES.
SO AS PART OF THE PROTOCOL, WE ARE ALSO REQUIRED TO LOOK AT SSR SCREENING, UH, FOR THIS, UH, IDENTIFIED SET OF UPGRADES.
AND WE FOUND THERE WAS NO ADVERSE IMPACT FOR THE SR IMPACT FOR EXISTING OR THE PLANNED RESOURCES IN THE AREA.
SIMILAR TO OTHER RRP G PROJECTS, TIER ONE PROJECTS, WE LOOK AT ALSO CONGESTION ANALYSIS AND SENSITIVE ANALYSIS AS REQUIRED BY THE PLANNING GRADE SECTION 3.1, 0.3.
UM, BASED ON THIS ANALYSIS, THERE ARE TWO SPECIFIC ONE.
ONE IS LOOKING AT THE CONGESTION ANALYSIS AND ALSO LOOKING AT, UH, WHETHER THE FUTURE GENERATION OR LOAD SCALING THAT THAT'S BEEN USED IN THE OR OR THE PLANNING CASES WOULD HAVE AN IMPACT ON THE PROJECT.
BASED ON THE STUDIES, WE DID NOT SEE ANY NEW CONGESTION IN THE AREA WITH THE ADDITION OF STAGE THREE AND STAGE FOUR.
AND ALSO POTENTIALLY WE DID NOT IDENTIFY ANY IMPACT WITH THE FUTURE PLAN GENERATIONS OR LOAD SCALING.
UH, THAT'S, THAT'S IN THE CASE.
BASED ON THE REVIEW, ERCOT IS WILL RECOMMEND TO THE BOARD THE DELAWARE ENCORE DELAWARE BASE IN STAGE THREE AND STAGE FOUR PROJECTS TO MEET THE RELIABILITY NEEDS IN SEVERAL COUNTIES IN THE FOREST ZONE.
UM, THE PROJECTED, UH, IMPLEMENTATION OR UPGRADE IN SERVICE DATE FOR THIS PROJECT IS JUNE OF 2027, AND THE ESTIMATED COST IS $202.2 MILLION.
THE NEXT SLIDE, UH, DETAILS THE RECOMMENDATIONS, UM, THE ASPECTS OF THE UPGRADES AND THE PROPOSED PROJECT.
SO I'M GONNA SKIP THIS AND JUST GONNA POINT THAT IN THIS, YOU KNOW, MAP HERE, THE MAJOR PORTIONS OF THE PROJECT OR THE, UM, NEW ADDITION OF A 3 45 KV LINE FROM RIVERTON TO DRILL HOLE.
THAT WILL RE REQUIRE THE NEW RIGHT OF WAY, WHICH IS 22 MILES OF NEW RIGHT OF WAY.
AND ALSO AS PART OF THAT, UPGRADE THE DRILL HOLE STATION WITH THE ADDING TWO, UM, 3 45 KV TRANSFORMERS.
AND IT WILL, IT'LL ADD, UH, THE EXISTING LINE TO RIVERTON TO ALL HILL TO HORSE HOLLOW.
THERE'S IN 1 38 THAT'LL BE LOOPED INTO THIS DRILL HOLE STATION AND, UH, MOVE SOME OF THE EQUIPMENTS FROM THIS DRILL DRILL HOLE STATION CAPACITORS TO THIS NEW EXPANDED STATION.
IN ADDITION TO THAT, THERE'S ALSO A SEGMENT FROM RIVER RIVERTON TO HORSE HEAD DRAW TO SAND LAKE, UH, WHERE THE EXISTING 1 38 KV LINE WILL BE UPGRADED TO A 3 45 KV LINE.
AND IN ADDITION, ENCORE WILL ADD ANOTHER, UM, DOUBLE CIRCUIT 1 38 KV LINE IN EXISTING RIGHT OF WAY, UH, THAT WILL CONNECT BETWEEN TRAVER TURN AND SAND LAKE AND LOOP INTO THE HORSE HEAD TO DRAW SUBSTATION.
SO THAT'S KIND OF A HIGH LEVEL OVERVIEW OF THE PROJECT.
UM, I BELIEVE THAT'S MY LAST SLIDE.
UM, I'LL, I'LL BE HAPPY TO ANSWER ANY QUESTIONS.
SO WE WOULD BE LOOKING TO PUT ON THE COMBO BALLOT, I GUESS, UH, TO ENDORSE ENCORE DELAWARE BASIN STAGE THREE AND FOUR PROJECT TO ADDRESS RELIABILITY NEEDS IN THE CULBERSON LEVINE REEVES IN WARD COUNTIES IN THE FAR WEST WEATHER ZONE.
DO ALL OF THAT NEED TO BE IN MOTION? OKAY.
ANYBODY HAVE AN ISSUE WITH PUTTING THAT ON THE COMBO BALLOT? OKAY.
WE HAVE THE, UM, M-B-R-P-O-C UPDATE AND OUTAGE PERFORMANCE REVIEW UP NEXT.
[03:15:22]
YEAH.UH, THIS
I THINK TODAY I KIND OF PROVIDE A KIND OF STATUS UPDATE, UH, FOR THE M-D-R-P-O-C.
UH, THERE ARE REALLY TWO, UH, ITEMS TRIED TO COVER, UH, IN THIS UPDATE.
THE FIRST ONE IS PURELY CURRENT M-D-R-P-O-C METHODOLOGY.
UH, WE ARE GOING TO PROVIDE A KIND OF, UH, OUTAGE PERFORMANCE OVERVIEW FOR YEAR 2023, AND ALSO TRY TO SHARE WITH THE GROUP IN TERMS OF OUR CURRENT, UH, ASSESSMENT IN TERMS OF THE IMPACT OF THE LONG-TERM FORECAST TO M-D-R-P-O-C AND, UH, LOOKING FOR THE UPDATE AND THE, UH, COMMENTS AS WELL.
SO, UH, PER OUR CURRENT METHODOLOGY, I THINK WE ARE REQUIRED TO PROVIDE A UPDATED TO, UH, THIS GROUP IN TERMS OF THE PREVIOUS YEAR, ESSENTIALLY 2023.
WHAT IS A HIGH LEVEL OVERVIEW ABOUT THE OUTAGE PERFORMANCE? SO THE FIRST ONE IS, WAS IT AGGREGATED, UH, RESOURCE OUTAGES? UH, HOW DOES THE GROUP CYCLE IN 2023? AND ALSO AS A COMPARISON ABOUT THE CALCULATED M-D-R-P-O-C VERSUS OUR APPROVED PLAN OUTAGE AND WHAT THE IMPACT AS WELL.
AND ALONG THIS PROCESS, WE ALSO KIND OF, IN PREVIOUS MEETING, WE ASKED FOR THE COMMENTS.
SO WE DO GET A COMMENTS, UH, AS US TO LOOK INTO THE, HOW CAN WE TIE THE ASSOCIATED RISK IN TERMS OF CALCULATE AND D-R-P-O-C TO SUPPORT THE SYSTEM RELIABILITY.
SO THE FIRST SLIDE, IT KIND OF PROVIDE A VERY HIGH LEVEL OVERVIEW ABOUT YEAR 2023, OUR AGGREGATED HOURS.
IN TERMS OF RESOURCE OUTAGES, I THINK THE CHART ON THE TOP, UH, INCLUDE ALL THE RESOURCE TYPES.
UH, ESPECIALLY FOR THE RENEWABLE PROJECTS.
THE CAPACITY HERE SHOW IT IS, UH, LAYER OUTAGE CAPACITY, NOT A NECESSARY, NOT A NECESSARY LAYER OUTPUT, UH, POTENTIALS.
UH, SO KIND OF TO HIGHLIGHT IT, AND YOU WILL SEE, UM, KIND OF FEBRUARY IN 2023, THERE'S A SPIKE.
AND AS RELATED TO THE ICE STONE, UH, WE HAD IN 2023.
SO OVERALL, WE THINK LIKE, UH, THE, THE TREND IS, UH, VERY SIMILAR TO ALL THE PREVIOUS YEARS.
AND IF YOU LOOK A LITTLE BIT DEEPER, UH, FOR THE, UH, NON I, UH, WHERE, UH, THE THERMAL UNITS FLEET, UH, THAT COULD BE, UH, SUBJECT TO THE M-D-R-P-O-C AS WELL.
SO REALLY WHAT YOU CAN SEE IN THE LOWER ONE, UH, THE BLUE ONE SHOWS THE NON IIR PLANT OUTAGES MEGA ONE, UH, AT EACH TIME.
AND, UH, THE, UH, NON IR THE MAINTENANCE OUTAGE TOGETHER WITH ITS FALSE OUTAGE AS WELL.
SO ESSENTIALLY THE DIFFERENCE BETWEEN THE TOP AND THE, THE LOWER ONE IS WE CLEAR, IRR KIND OF PROVIDED INSIDE OF THE, UH, ESSENTIALLY THERMAL.
UH, ANOTHER REVIEW WE DID IS WE TRIED TO LOOK AT IT THE M-D-R-P-O-C CALCULATED, WHICH WAS APPLICABLE AT THE TIME FOR EACH DAY IN 2023 WITH, UH, THE PLANNED THERMAL OUTAGES KIND OF STATUS.
SO AS YOU CAN SEE, UH, THE LIGHT BLUE IS REALLY THE APPLICABLE M-D-R-P-O-C IN 2023 FOR EACH DAY.
AND, UH, THE GRAY ONE IS THE OCCURRED, UH, THERMAL PLANT OUTAGES, UH, FOR, UH, EACH DAY IN 2023.
UH, ON TOP OF IT, WE ALSO TRY TO TRACK, THERE ARE SOME TIME, THERE ARE TIMES WHERE THE PLAN OUTAGE, WHEN PEOPLE TOOK A PLAN OUT, THEY START TO RECOGNIZE THERE ARE SOME ADDITIONAL COMPONENT NEED EXTRA TIME, UH, TO ALSO TAKE OPPORTUNITY TO FIX IT, TO DO AN EVEN BETTER MAINTENANCE.
SO WE CALL IT, UH, UH, EXTENSION OF PRINT OUTAGES.
SO IN OUR CATEGORY, WE TREAT IT AS A FALSE OUTAGE, BUT IN THIS CASE, WE TRY TO SEE, UH, FOR OUR M-D-R-P-O-C PERSPECTIVE, ASSUMING IF THAT PRINT OUTAGE HAVE A GOOD ESTIMATION ABOUT YOUR REALLY NEED, UH, DURATION, UH, WE STILL GOOD ENOUGH TO SUPPORT YOUR OUTAGE, YOU NEED.
SO OVERALL YOU CAN SEE, UH, I WOULD SAY EVEN THE M-D-R-P-O-C SHOULD BE, UH, BASED ON OUR REVIEW, IS SUFFICIENT NOT ONLY TO COVER YOUR ORIGINAL SCHEDULE PLAN OUTAGES, ALSO BE GOOD ENOUGH TO SUPPORT YOUR, I'LL CALL IT UNAVOIDABLE EXTENSION, WHERE YOU SEE THE NEED ON TOP OF THE PRINT TG REQUEST.
UH, ANOTHER ONE TO HIGHLIGHT IT.
YOU DO SEE THERE ARE FEW DAYS, UH, THE PRINT TG MAY EXCEED THE ACTUAL M-D-R-P-O-C.
I THINK THAT'S KIND OF THE NATURE OF HOW WE INVOLVE OF THE M-D-R-P-O-C
[03:20:01]
VERSUS HOW WE PLANNED.I THINK THE KEY TAKEAWAY IS FOR ANY PLANNED OUTAGE ALREADY APPROVED AND, UH, BECAUSE OF M-D-R-P-O-C CHANGE LATER, MAKE YOUR APPROVAL CAPACITY EXCEEDED, WE WILL NOT WITHDRAW.
WE WILL CONTINUE TO SUPPORT YOUR PLAN OUTAGES.
I THINK THAT'S KIND OF THE KEY THAT THE PRICE PRACTICE WE HAS BEEN CONDUCTED ALL THE TIME.
AND I WILL KIND OF SHIFT TO THE, UH, CURRENT M-D-R-P-O-C CALCULATION.
CONSIDER THE IMPACT OF THE UPDATED LONG-TERM FORECAST.
SO THIS IS THE ONE, I THINK THE GROUP MAY SEE THIS ONE, UH, KIND OF QUITE A BIT ALREADY.
SO THE LIGHT BLUE IS THE LONG-TERM FORECAST.
WE HAS BEEN USED IN OUR CURRENT M-D-R-P-O-C CALCULATIONS, ESSENTIALLY KIND OF UPDATED LAST YEAR.
UM, THE GRAY ONE IS THE MOST RECENT UPDATED LONG-TERM LOW FORECAST, OBVIOUS A LOT OF DISCUSSION TODAY IN THE PREVIOUS STAKEHOLDER MEETINGS ABOUT THE SIGNIFICANT GROWTH.
SO THAT'S HOW WE START TO LOOK INTO THE IMPACT OF THE M-D-R-P-O-C.
I THINK OBVIOUSLY THE, THE KEY TAKEAWAY IS, UH, BASED ON THIS UPDATED LONG-TERM LOW FORECAST, UH, WE DEFINITELY SEE THE SIGNIFICANT INCREASE ON LOAD, WHICH WILL BE REFLECTED AS A IMPACT TO POTENTIALLY REDUCE THE M-D-R-P-O-C.
AND I THINK THE GOAL FOR M-D-R-P-O-C IS TRY TO SEE HOW WE CAN MAINTAIN SUFFICIENT OUTAGE WINDOW, UH, TO SUPPORT ALL THE REQUIRED PLANT OUTAGES.
AT THE SAME TIME, WE ALSO CAN MAINTAIN SUFFICIENT CAPACITY, UH, FOR REAL TIME OPERATIONS.
SO BASED ON THIS FINDING, AND THEN BASED ON ALL OUR INVESTIGATION IN THE LAST SEVERAL MONTHS, I THINK TODAY WE WOULD LIKE TO, UH, PROVIDE AN UPDATE TO THE GROUP.
UH, SO TODAY, BASED ON THE METHODOLOGY WE HAVE, IT'S KIND OF, IT IS, UH, DETERMINISTIC APPROACH.
UH, WE, BASED ON THE HISTORICAL PERFORMANCE, BASED ON THE CAPACITY WE HAVE, AND WE DO IT, UH, ESSENTIALLY, UH, PLUS MINUS CALCULATION TO DETERMINE WHAT IS THE RIGHT NUMBER OR NECESSARY NUMBER.
I THINK THE MISSING PART IS THOSE NUMBER CALCULATED IS CANNOT BE EASILY QUANTIFIED IN TERMS OF RISK LABEL.
UH, THIS IS IMPORTANT WHEN WE HAVE, UH, START TO SEE THE IMPACT M-D-R-P-O-C GOT REDUCED.
SO SIMILAR TO THE, UH, THE MORA, I THINK, UH, WE HAVE BROUGHT THIS IDEA, UH, TO SEE HOW HOW WE CAN APPLY THIS, UH, PROBITY APPROACH TO CALCULATE M-D-R-P-O-C, UH, FOR THE FUTURE.
SO WE KIND OF START TO DO SOME, UH, UH, LIKE PROVE THE CONCEPT WORK, UH, BEHIND THE SCENE RIGHT NOW.
BUT I THINK THE REASON WE GO FOR THIS DURATION IS WE CAN, THERE ARE SOME BENEFIT.
UH, THE FIRST ONE IS IT WILL REALLY HELP US, UH, KIND OF QUANTIFY THE RISK LABEL.
AND, UH, IN A WAY WE CAN KIND OF WORK WITH THE GROUP AND, UH, STAKEHOLDER TO GET YOUR INPUT TO SEE WITH THIS KIND OF M-D-R-P-O-C CALCULATION, WHAT IS ASSOCIATED RISK AND VICE VERSA.
AND ALSO WILL HELP US TO QUANTIFY THE IMPACT OF, UH, DIFFERENT SEGMENT SUCH AS LOW FORECAST OR DIFFERENT, UH, ALTITUDE TREND THAT REFLECTED IN THE HISTORICAL PERFORMANCE AS WELL.
AND, AND LASTLY, IT, UH, SUPPOSED TO HELP US TO DETERMINE, UH, IN ORDER TO MAINTAIN THE SUFFICIENT M-D-R-P-O-C FOR THE PRINT ALTITUDE REQUIRED, WHAT COULD BE THE ASSOCIATED RISK BEHIND THAT ONE? SO, SO THESE SLIDES AGAIN, IS A CONCEPT ONLY, UH, WITH KIND OF OUR CURRENT, UM, CONCEPTUAL TOOL.
UH, WE HAD TESTED, UH, SO ESSENTIALLY THE SLIDE TRY TO SHOW, UH, THE TOP ONE IS OUR CURRENT M-D-R-P-O-C.
AND, UH, IF WE TRY TO MIMIC THE SAME LEVEL OF M-D-R-P-O-C WE HAVE TODAY WITH THE UPDATED LONG-TERM LOW FORECAST, ESSENTIALLY YOU WILL SEE, I WOULD SAY KIND OF NOT SURPRISED ON THE LOWER LEFT.
YOU DO SEE, UH, THE LOW, THE LONGER WE LOOK AT FURTHER IN THE FUTURE, YOU DO SEE THE INCREASE OF A RISK ASSOCIATED IF WE TRY TO MAINTAIN THE SAME LEVEL OF M-D-R-P-O-C TODAY.
SO IT'S REALLY THE, THE SPIRIT FOR US TO LOOK INTO THIS ONE, TRY TO FIND A BETTER, UH, INFORMATION AND TO WORK WITH ALL OF YOU TO GET YOUR FEEDBACK TO SEE HOW WE CAN BEST ADJUST AND DETERMINE M-D-R-P-O-C.
I THINK THERE'S ONE MORE SLIDE,
SO IN TERMS OF NEXT STEPS, UH, WE WILL CONTINUE TO DEVELOP THIS KIND OF PROB RISK, RISK BASED APPROACH TO CARGO M-D-R-P-O-C, AND, UH, WE PLAN TO REVISE M-D-R-P-O-C WE HAVE TODAY.
AND CERTAINLY WE WILL GO THROUGH THE PROCESS, UH, GET APPROVAL AND THE REVIEW, UH, TENTATIVELY OUR SCHEDULE RIGHT NOW IS Q2 2025.
[03:25:01]
UH, SO UNTIL WE HAVE METHODOLOGY REVISED, UH, KNOWING THE CONCERN AND KNOWING THE HISTORICAL PERFORMANCE, OUR PLAN IS TO KEEP WHAT THE F-D-I-P-O-C TODAY CONTINUE USE NUMBER WE HAVE TODAY UNTIL WE HAVE A BETTER WAY TO QUANTIFY THE IMPACT OF A FORECAST INTO THE M-D-R-P-O-C CALCULATION.AND CERTAINLY WE'LL BE HAPPY TO COME, UH, PROVIDE FEEDBACK AND UPDATE TO THE GROUP AS WELL.
LET'S START WITH BRIAN SAMS. HEY, FRED.
UM, THANKS FOR THIS PRESENTATION.
I HAVE TWO COMMENTS THAT INVOLVE SLIDES FIVE AND FOUR.
SO ON SLIDE FIVE, YOU SHOW, UH, THE INCREASE IN LOADS WITH, UH, THE DIFFERENT FORECAST.
AND, UH, THIS IS A VERY REAL WORLD REASON WHY WE NEED TO FOCUS ON GETTING 1180 AND THE CORRESPONDING, UM, YOU KNOW, UH, TRANSPARENCY, RIGHT? BECAUSE THIS WILL IMPACT THE ABILITY FOR US TO, TO PLAN LONG-TERM OUTAGES THAT ARE NEEDED FOR THE RELIABILITY OF THE SYSTEM.
UM, SO I JUST, I WANNA FLAG THAT, THAT THAT'S SUPER IMPORTANT AND, UM, LOOK FORWARD TO WORKING WITH OTHERS REALLY FOR, FOR THIS REASON, BUT ALSO BECAUSE OF THAT TRANSPARENCY PROVIDES INCENTIVES TO BUILD, WHICH THEN ALSO HELPS WITH, UH, CREATING MORE CAPACITY THAT COULD BE AVAILABLE FOR, UH, OUTAGE MAINTENANCE.
THE SECOND THING I WANTED TO TALK ABOUT WAS ON SLIDE FOUR WHERE YOU TALK ABOUT, UM, HOW, UH, ONCE AN OUTAGE IS APPROVED, IT'S NOT WITHDRAWN, EXCEPT THAT THE WAY THINGS WORK WITH THE A A N AND OCN PROCESS IS THAT GENERATORS DO MOVE, UH, APPROVED OUTAGES WHEN THERE'S A REQUEST TO, TO MOVE THEM.
AND, UM, THE A A N ITSELF IS NEVER CANCELED.
AND SO THE OUTAGE THAT WAS APPROVED, UH, DOESN'T HAPPEN BECAUSE IT GOT MOVED.
UH, WE WOULD BE INTERESTED IN WORKING WITH YOU GUYS IN THIS SUBSEQUENT ROUND TO HAVE AANS CANCELED WHEN THERE, WHEN THERE IS NO LONGER A NEED FOR IT, SO THAT AN OUTAGE THAT WAS PREVIOUSLY APPROVED COULD CONTINUE.
UM, WHAT HAPPENS IS, UH, YOU KNOW, WE HAVE CREWS THAT, THAT ARE ON STANDBY AND WE END UP PAYING THEM EXTRA, UH, TO ESSENTIALLY SIT IN HOTEL ROOMS UNTIL, UH, UM, YOU KNOW, THE OUTAGE THAT, YOU KNOW, MIGHT'VE STARTED ON ON A TUESDAY, UH, YOU KNOW, GETS PAST THE, THE A PERIOD AND NOW STARTING ON A FRIDAY.
SO THAT, THAT'S JUST AN, AN EFFICIENCY THING AND I THINK, UH, HELPS WITH, UH, NECESSARY MAINTENANCE.
AND, AND THOSE ARE MY COMMENTS, AND I HAPPY TO WORK WITH YOU OFFLINE AHEAD OF THIS KIND OF Q2 2025 NPR THAT YOU'RE TALKING ABOUT.
UM, FRED, ON THIS SLIDE I WANTED TO MAKE SURE I UNDERSTOOD THE THERMAL EXTENDED PLANNED OUTAGE.
THAT WOULD BE, IF, IF AN OUTAGE WAS SUPPOSED TO END ON TUESDAY AND IT WENT ON TO WEDNESDAY, THAT LINE STARTS SHOWING VOLUMES FOR WEDNESDAY.
CORRECT? IT DOESN'T SHOW ANYTHING FOR THE ORIGINAL PLANNED OUTAGE PORTION.
SO THE NUM THE SLIDES SHOW ON HERE IS ON EACH DAY HOW WE COUNT OUTAGE AT THAT TIME.
SO IT'S A LITTLE BIT DETAILS, BUT I WILL TRY MY BEST, PLEASE.
SO IF YOU HAVE A PLAN OUTAGES SCHEDULED FROM MONDAY TO FRIDAY, YES.
AND, UH, ON WEDNESDAY YOU REALIZE YOU NEED EXTRA DAYS BECAUSE X, Y, Z TO DO A BROADER REVIEW AND THE MAINTENANCE, SO THE MOMENT YOU SUBMIT YOUR OUTAGE FOR THE EXTENSION AFTER IT WILL BE TREATED AS, UM, EXTENSION OUTAGES, AND, UH, IN OTHER CASE, IT WILL SHOW A SCREEN IN THIS, UH, IN THIS CHART.
BUT THE DAYS BEFORE, THEY ARE STILL REMAIN ACCOUNTED AS PRINT OUTAGES.
I, I REALLY APPRECIATE YOU, YOU DOCUMENTING THIS.
THIS WAS SOMETHING THAT WHEN I, MY PREVIOUS ROLE I WAS VERY CONCERNED ABOUT.
UM, I WOULD THINK IN YOUR JUST EXAMPLE THERE, IT'D BE MORE APPROPRIATE TO SHOW THE VOLUMES ONLY FOR THAT SATURDAY, THAT ONE
[03:30:01]
DAY EXTENSION MM-HMM,UM, AND, UH, WE RECOGNIZE THIS ONE AND, UH, IT JUST A LOT OF POTENTIAL SUBMITTAL OF THE DIFFERENT CONFIGURATION.
THIS IS ON OUR, UM, ONGOING PROJECTS IS GOING TO ADDRESS THIS ISSUE IN OUR SCHEDULE IMPROVEMENT HOPEFULLY NEXT YEAR.
AND I THINK BRIAN'S IDEA OF CANCELING AANS IS FANTASTIC.
ON SLIDE SIX, OBVIOUSLY THIS SOUNDS LIKE A, AN IMPROVEMENT, UH, TO THE EXISTING METHODOLOGY.
UH, I KNOW THERE YOU RECEIVED A LOT OF FEEDBACK AND COMMENTS ON HOW TO IMPROVE THE EXISTING APPROACH.
LOOKS LIKE SOME OF THIS IS GONNA BE NATURALLY BE INCORPORATED INTO THE PROBABILISTIC, UM, TYPE OF CALCULATION.
I'M JUST KIND OF CURIOUS, HOW DO YOU, YOU SAYS FOR FOR BATTERY CONTRIBUTIONS, WHICH ARE ZERO TODAY, YOU'RE LOOKING AT HOUR, HOURLY, AVERAGE CAPACITY FACTORS.
YOU KNOW HOW YOU'LL CALCULATE THAT.
SO I THINK OUR CURRENT, I WOULD SAY CONCEPT OR THINKING IS TRY TO ALIGN WITH MORALS APPROACH MORE AS MUCH AS WE CAN SINCE IT KIND OF VERY SIMILAR TYPE OF ANALYSIS, BUT THE APPLICATIONS FOR DIFFERENT PURPOSE FOR EACH MONTH.
UH, FOR THIS ONE, I THINK WE CAN REFINE AS WE NEED, BUT I THINK AS A CONCEPT IS WE TRY TO USE MORALS, OUR FIRST INPUT, AND THAT WE NEED TO REFINE OR REVISE FOR THE M-D-R-P-O-C TO BE MORE SPECIFIC OR DETAIL.
UH, WE, WE WILL, I WOULD SAY, I WOULD SAY GET YOUR FEEDBACK OR SUGGESTIONS SO WE CAN MAKE A ADJUSTMENT AS NEEDED.
SO IT LOOKS LIKE IT SAYS SIMULATIONS FOR EACH MONTHLY PEAK LOAD DAY.
OH, ARE YOU GOING TO BE ADJUSTING THE M-D-R-M-D-R-P-O-C VALUES ON A MONTHLY BA? SO ONE OF THE, WHAT WE THOUGHT WAS A REALLY BIG IMPROVEMENT, 'CAUSE RIGHT NOW YOU, YOU'VE, THE PROCESS IS BIFURCATING THE TWO PARTS BASICALLY WITHIN SEVEN DAYS AND OUTSIDE OF SEVEN DAYS, AND THAT THERE'S RELEASING MORE OUTAGE CAPACITY WITHIN SEVEN DAYS.
DOESN'T DO ANYTHING ISN'T, IT'S IMPOSSIBLE TO ACTUALLY SCHEDULE AN OUTAGE IN WITHIN SEVEN DAYS.
SO A MONTH THOUGH WOULD BE, SO IF YOU TAKE THE MOST RECENT INFORMATION FOR SAY THE NEXT MONTH, AND THAT ALLOWS YOU TO SAY, OKAY, IT LOOKS LIKE RISK IS LOWER BECAUSE OF THE WEATHER PATTERN WE'RE IN AND WE'VE ADDED, YOU KNOW, A THOUSAND MEGAWATTS OF MORE BATTERIES OR WHATEVER, THEN THAT WOULD BE HELPFUL.
SO I JUST, HOW, HOW ARE YOU THINKING ABOUT THE TIMING AND CADENCE OF CALCULATING THIS AND RELEASING ADDITIONAL CAPACITY? THANK YOU.
I THINK I SEE THE, UH, THE CONFUSION ON MY PART.
I THINK THE SLIDE SHOWS, UH, SIMILAR TO MORA, BUT IT DOES NOT MEAN WE ARE GOING TO DO ONLY MONTHLY NUMBER.
UH, WE ARE NOT GOING DO ONE NUMBER PER MONTH, PER MONTH.
I THINK, UH, WHAT WE TRY TO SAY HERE IS FROM THE, I WOULD SAY ALGORITHM PERSPECTIVE, WE TRY TO USE KIND MORE KIND OF ALGORITHM AS A KIND OF THE CONCEPT HERE.
BUT IN TERMS OF HOW GRANULARLY WE ARE GOING TO CALCULATE M-D-R-P-O-C, OUR PLAN RIGHT NOW STICK TO WHAT WE, WE ARE DOING RIGHT NOW IS, UH, ONE NUMBER FOR EVERY, UH, ONE NUMBER PER DAY, UH, FOR THE NEXT FIVE YEARS, WITHIN SEVEN DAYS.
WE REALLY RELY ON THE MOST RECENT AVAILABLE, UH, FORECAST INFORMATION TO US.
AND, UH, WE DEFINITELY CAN, UH, HAVE A DISCUSSION.
TO YOUR POINT, I THINK ONE OF THE CHALLENGE WE NEED TO THINK THROUGH IS, UM, THE FORECAST AVAILABLE TO US FOR THE MIDTERM, NEAR TERM OPERATION HORIZON.
WE ARE NOT, WE DIDN'T HAVE, WE DON'T HAVE THE ONE ALL THE WAY TO THE MONTH.
SO IF WE NEED TO EXPAND THAT CONCEPT, WE NEED TO, UH, THINK THROUGH WHAT KIND OF INPUT THAT WE SHOULD HAVE, UH, IS A PROPERTY TO REFER THAT, UH, THAT AREA.
UH, FRED, CAN YOU HEAR ME? YES.
ALRIGHT, WELL THANKS FOR WALKING THROUGH THIS.
UM, I THINK I AGREE WITH A LOT OF THE, THE FEEDBACK YOU HEARD FROM, UH, MY COLLEAGUES THAT JUST WENT, WENT BEFORE.
BUT, UM, I, I WANTED TO PULL THE THREAD A LITTLE BIT ON, UM, THE, THE NEXUS BETWEEN SLIDES FIVE AND SEVEN AND, UM, AS I LOOK AT THE, THE, THE GROWTH IN SLIDE FIVE, AND I, IF I'M READING CORRECTLY AT THE TOP OF SLIDE SEVEN, THAT THIS IS ACTUALLY INCLUDING THE GREEN LINE FROM SLIDE FIVE.
IS THAT RIGHT? IS YES, BUT AGAIN, I WANT TO MAKE SURE THIS KIND OF, UH, CONCEPT, THE, THE INPUT AND EVERYTHING IS NOT AT THE FINAL.
[03:35:01]
THE, THE RISK, YOU CAN SEE I PURPOSELY DON'T SHOW THE, THE RISK, UH, MAGNITUDE BECAUSE IT TRY TO SHOW THE RELATIVE THAT'S THE KIND OF THE TREND, BUT THE REAL RISK IS NOT REALLY, UH, FINALIZED.UM, SO I THINK THERE'S TWO COMMENTS I'VE GOT OR IS FEEDBACK AND ALSO HAPPY TO, TO WORK WITH YOU ON THIS OFFLINE.
UM, FIRST ONE IS, UH, YOU KNOW, WHEN WE WERE FIRST GOING THROUGH THE WHOLE, UH, MURDER POT CONCEPT, I, I, I CAN RECALL SEVERAL OF US RAISING THE CONCEPT OF NEEDING TO HAVE A FLOOR, UH, FOR THE OUTAGE SEASONS.
AND I THINK, YOU KNOW, WITH THAT, THAT THAT LOAD GROWTH TREND THERE, THAT DOES SEEM TO PRESENT LIKELY THE NEED TO REVISIT THAT TO MAKE SURE THAT WE DO HAVE SOME MINIMUM OUTAGE CAPABILITY IN THE, IN THE OUTAGE SEASONS.
UM, AND THEN SECOND COMMENT IS, UH, AND THIS IS PROBABLY MORE COMES TO THE FINE TUNING OF THE PROBABILISTIC APPROACH.
UM, YOU KNOW, AS YOU'RE LOOKING AT THAT, I CAN SEE IN SOME OF THE, THE, I'LL CALL IT THE, THE TAN LINES WITH BROWN LINES, UM, YOU SEE A LITTLE BIT MORE OF WHAT I CALL LIKE A MITTEN SHAPE WHERE YOU KNOW YOU'VE GOT A HIGH VALUE AND THEN IT DROPS DOWN AND THEN SEEMS TO SHOOT BACK UP WITHIN A DAY OR TWO A LITTLE BIT MORE THAN UNDER THE CURRENT METHODOLOGY.
AND IF IT'S POSSIBLE TO ADD A SMOOTHING MECHANISM AS WE'RE, YOU KNOW, AS YOU'RE EVALUATING THE, THE PROBABILISTIC OF METHODOLOGY THAT THAT MAY HELP WITH ALSO, UH, FOLKS THAT ARE TRYING TO SCHEDULE MULTIPLE DAY, UH, OUTAGES THAT, YOU KNOW, SOMETIMES YOU, YOU CAN RUN INTO, WELL WE NEED, YOU KNOW, WE NEED SEVEN DAYS AND WE CAN GET, WE CAN GET FIVE HERE, BUT THEN THERE'S A GAP AND THEN WE'VE GOT AVAILABILITY ON THE, ON THE OTHER SIDE.
AND, UM, YOU KNOW, JUST HAVING SOME CONTINUITY THERE, UH, IS, IS HELPFUL WITH, WITH SQUEEZING THINGS IN, UH, WITH, I WOULD, I WOULD ARGUE PROBABLY MARGINAL, UH, RELIABILITY IMPACT.
SO, BUT THANK YOU FOR BRINGING THIS TO US.
HAPPY TO, HAPPY TO DISCUSS FURTHER.
OKAY, ANY OTHER QUESTIONS OR COMMENTS FOR FRED? OKAY, THANK YOU.
ALRIGHT, WE HAVE ONE ADDITION.
WE HAVE THE LARGE LOAD QUEUE, WHICH WE HAVE MOVED FROM WMS TO HERE.
I BELIEVE WE JUST NEED TO BE BETTER ABOUT HAVING IT KIND OF AS A STANDING AGENDA ITEM.
EVERYONE HEAR ME OKAY? WS PRETTY FAINT.
LET'S SEE, LET ME SWITCH MY AUDIO SETTINGS.
I DUNNO WHAT I DID, BUT LOOKS LIKE THAT WORKED.
ALRIGHT EVERYONE, MY NAME IS JULIE SIMMAN.
I'M THE SUPERVISOR OF THE LARGE LOAD INTEGRATION TEAM AT ERCOT.
SO, UM, THIS IS THE USUAL QUEUE UPDATE THAT WE'RE, YOU KNOW, PRESENTING ONCE A MONTH AT TAC UH, YOU KNOW, FEEL FREE TO ASK ANY QUESTIONS AFTER THE PRESENTATION.
THIS IS THE STANDARD LOAD QUEUE UPDATE, UM, FROM THE PAST 12 MONTHS.
SO YOU CAN SEE THAT PEAK OF 63,000, UH, MEGAWATTS OF, UH, LOAD PROJECTS IN THE NOVEMBER 20, 24 Q.
UH, THOSE CHANGES REPRESENT NEW STANDALONE AND CO-LOCATED PROJECTS AS WELL AS SEVERAL PROJECT CANCELLATIONS.
BUT EVEN WITH ALL THAT COMBINED, WE INCREASED OUR Q CAPACITY BY 1050 MEGAWATTS.
AND IN THIS SLIDE YOU CAN SEE OUR CURRENT QUEUE, UH, PROJECTED IN SERVICE DATES FOR THESE PROJECTS GOING OUT TO 2028, YOU CAN SEE OUR BREAKDOWN FOR PROJECTS.
SO, YOU KNOW, KNOW THE ORANGE BLOCK IS NO STUDY SUBMITTED.
THOSE THAT ARE IN GRAY ARE PLANNING STUDIES APPROVED AND THOSE THAT ARE IN PURPLE ARE CURRENTLY UNDER
ANYTHING IN THAT TEAL IS APPROVED TO ENERGIZE AND YOU CAN SEE HOW THOSE VALUES ARE STACKED GOING OUT INTO THE FUTURE.
IN THE PAST 12 MONTHS, UH, THE TOTAL
[03:40:01]
LOAD WITH PLANNING STUDIES THAT HAS BEEN APPROVED, UH, THIS PAST YEAR HAS SEEN 1,818 MEGAWATTS OF LOAD APPROVED TO ENERGIZE.AND I'LL JUST LET EVERYONE SIT WITH A SLIDE FOR A SECOND BEFORE MOVING ON.
OF THE LOADS THAT HAVE BEEN APPROVED TO ENERGIZE 3055 MEGAWATTS RESIDES IN LOAD ZONE WEST, AND THE REST RESIDES IN OTHER LOAD ZONES.
ABOUT 5,000 MEGAWATTS CONSISTS OF STANDALONE PROJECTS AND ABOUT 1000 MEGAWATTS CONSISTS OF CO-LOCATED PROJECTS, AND YOU CAN SEE THAT BREAKDOWN BY PROJECT TYPE AND LOAD ZONE.
OF THE 6,297 MEGAWATTS THAT HAVE RECEIVED APPROVAL TO ENERGIZE AIR CUT HAS OBSERVED A NON SIMULTANEOUS PEAK CONSUMPTION OF 3,700 MEGAWATTS.
AND THIS IS CALCULATED AS THE SUM OF THE MAXIMUM VALUE FOR EACH LOAD, REGARDLESS OF WHEN THAT MAX VALUE OCCURS.
AND IN THE NEXT SLIDE, WE'LL WE'LL SEE THE COINCIDENT PEAK.
SO FOR A SIMULTANEOUS PEAK CONSUMPTION, WE'VE SEEN 2,834 MEGAWATTS SIMILAR TO THE LAST SLIDE.
THIS IS JUST WHAT WE'VE SEEN IN REAL TIME.
OKAY, WE HAVE A COUPLE OF QUESTIONS.
FIRST IS SETH, SETH WITH VITOL.
UM, I HAVE A QUESTION ABOUT THE PROVE TO BE ENERGIZED.
HOW, WHAT ARE WE TO MAKE OF THAT? SO IT'S A PROVE TO BE ENERGIZED, AND I KNOW THAT SOME OF 'EM LATER IN YOUR SLIDES, YOU SHOW THE SUBSET THAT'S ACTUALLY ONLINE WITH THE COINCIDENT AND NON COINCIDENT PEAKS.
BUT HOW, HOW FAR ALONG DOES SOMETHING HAVE TO BE TO PROVE, TO BE ENERGIZED? IS IT, IS IT JUST THAT THAT, I MEAN, HAVE THEY STARTED CONSTRUCTION? IS THERE ANY OTHER THING THAT GOES ALONG WITH THAT, OR IS IT JUST THAT THE TSP AND ERCOT HAVE GIVEN IT A GREEN LIGHT AND IT'S POSSIBLE THAT, UH, IT LINGERS FOR YEARS? UH, BEYOND THAT POINT, DO YOU HAVE ANY IDEA ON HOW THAT WORKS OR ANY DETAILS THAT YOU CAN PROVIDE? YEAH, IT'S, IT'S THE, UH, LADDER OF, YOU KNOW, KIND OF WHAT YOU JUST SAID.
SO THIS IS, YOU KNOW, BETWEEN THE TSP AND AIRCON, UM, WE DO TRY TO, YOU KNOW, UH, WORK CLOSELY WITH THE TSPS TO ENSURE THAT, YOU KNOW, WE'RE TRACKING, UM, YOU KNOW, THINGS LIKE INTERCONNECTION AGREEMENTS AND, UM, YOU KNOW, MAKING SURE, AT LEAST IN OUR INTERNAL TRACKING THAT WE'RE, WE'RE HIGHLIGHTING THAT.
DO YOU KNOW HOW LONG IT NORMALLY TAKES SOMETHING TO GET, UH, BUILT AND ONLINE AND CONSUMING AFTER IT'S BEEN APPROVED TO BE ENERGIZED? DO YOU HAVE ANY I CAN TAKE THAT INTERNALLY.
I DON'T REALLY HAVE NUMBERS FOR YOU RIGHT OFF HAND.
AND THEN MY OTHER QUESTION IS, I'VE HEARD SOME RUMBLINGS ABOUT A CAP ON DATA CENTER LOAD AT ONE GIGAWATT.
IS THAT STILL WORKING THROUGH THE ERCOT PROCESS? UM, I'M SORRY, A TAP ON CAP CAP CAP OH OH, I'M SORRY.
A CAP ON THE DATA CENTER PROCESS.
UM, I THINK YOU'RE REFERRING TO THE THOUSAND MEGAWATT CONTINGENCY, UM, LIMIT THAT IS CURRENTLY IN THE PICKER ONE 15 DRAFT.
SO I'D ENCOURAGE YOU TO TAKE A LOOK AT THAT.
SO THAT WOULD BE, UM, THAT WOULD BE A CONTINGENCY BASED ON IT TRIPPING AND RELATED TO STABILITY PROBLEMS AND FREQUENCY DECLINE PROBLEMS, CORRECT.
UM, BRIAN SAMS OKAY, UH, THIS SLIDE HERE, SLIDE FIVE, UH, WE'VE GOT A FEW LOAD ZONES AND IS IT POSSIBLE TO GET, UH, SEGMENTATION SO THAT ALL OF OUR OTHER LOAD ZONES AREN'T IN THE OTHER BUCKET, IS THE FIRST QUESTION? UM, I CAN TAKE THAT INTERNALLY AND SEE WHAT WE CAN DO BEFORE THE NEXTT.
ALSO, I'M GONNA ASK YOU A BUNCH OF QUESTIONS AND I'LL JUST, I GOT TO GIVE YOU THIS PREFACE.
UH, THERE'S JUST SO MUCH THIRST FOR MORE INFORMATION HERE AND, UH, MY FOLKS LOVE SEEING IT AND IT'S ALMOST ANNOYING BECAUSE I JUST GET MORE QUESTIONS THEY DON'T HAVE ANSWERS TO.
UM, SO FOLLOWING UP ON SETH'S QUESTION ABOUT, UM, UH, IN A COUPLE SLIDES DOWN, I THINK IT'S THE, THE, UH, REALLY THE LOAD THAT'S BEEN OBSERVED.
JUST GO BACK THE, THE LAST ONE'S FIVE THERE,
[03:45:01]
OR SIX, SORRY.UM, SO IT LOOKS LIKE OF THE LOAD THAT'S APPROVED TO BE ENERGIZED, ABOUT 60% OF IT'S EVER BEEN OBSERVED.
AND, UM, I, I THINK LIKE MOST LARGE LOADS PROVIDE TO ERCOT, UM, THERE EXPECTED LOAD RAMP.
UM, AND SO, UH, JUST HAVING SOME KIND OF AGGREGATED DATA THAT CAN TIE BACK TO WHAT'S IN THE LOAD FORECAST WOULD BE SUPER HELPFUL BECAUSE LIKE NOVEMBER 24 HERE, THE, LIKE THE, THE STACK ASSUMES ALL OF THIS COULD BE ON, BUT, UH, IN REALITY, YOU KNOW, PEOPLE BUILD THINGS IN PHASES AND, UH, THEY TYPICALLY PROVIDE OR CUT A LOAD RAMP.
AND SO JUST HAVING MORE INFORMATION ABOUT WHAT THAT LOOKS LIKE AND HOW THAT FLOWS THROUGH TO THE LOAD FORECAST FOR THINGS THAT ARE USED FOR RESOURCE ADEQUACY REPORTING IS, IS, UH, CRITICAL.
AND SO I JUST CAN'T EMPHASIZE ENOUGH THAT THE THIRST THERE IS FOR THAT KIND OF DATA.
AND I HAD A SIMILAR COMMENT TO WHAT BRIAN JUST RAISED, WHICH IS, ESPECIALLY WITH THE, UH, THE, YOU KNOW, PROOF TO ENERGIZE LOAD, IF IN RECOGNIZING THAT YOU'RE TRYING TO BALANCE ALL THE, UH, THE, THE CONFIDENTIALITY REQUIREMENTS, SURE.
IF, IF IT WAS POSSIBLE TO SHOW A, WHAT THAT AGGREGATE RAMP LOOKS LIKE, UM, PARTICULARLY OVER THE, CERTAINLY OVER THE NEAR TERM AND, AND MATTER OF MONTHS, BUT THEN, YOU KNOW, OVER THE LONGER TERM, UM, MAYBE ON A, WELL, CERTAINLY MONTHLY WOULD BE APPRECIATED, UNDERSTAND IF, UH, FURTHER OUT YOU NEED TO GO TO A HIGHER LEVEL THAT THAT'S, THAT IS WHAT IT IS.
BUT, UM, THAT WOULD HELP FOLKS WITH, UH, ESPECIALLY FOR INSTANCE, LOOKING AT THE, THE MONTHLY OUTLOOK ON, UH, RESOURCE ADEQUACY.
IF WE SEE A JUMP, YOU KNOW, THAT MIGHT HELP TO EXPLAIN DIFFERENCES BETWEEN ONE MONTH AND THE NEXT.
SO, UM, YEAH, JUST AS YOU'RE, AS YOU'RE TAKING IDEAS AND, AND FEEDBACK, THAT WOULD BE ONE MORE TO, TO PUT IN THE QUEUE, SO THANK YOU.
YEAH, SO JUST LIKE ANOTHER PRACTICAL APPLICATION HERE IS, YOU KNOW, FRED JUST TOLD US THAT THE M-D-R-P-O-C ISN'T TAKING IN THE, UH, LOAD LIKE THESE, THESE LOADS INTO THE LOAD FORECAST, BUT IF IT ISN'T RAMPING UP OVER TIME, THEN MAYBE YOU DON'T NEED TO CONSTRAIN, UM, OUTAGES AS MUCH BECAUSE YOU KNOW THAT THE LOAD IS RAMPING UP OVER TIME.
SO JUST, UM, ENSURING THAT LIKE, YOU'RE NOT ASSUMING ALL 6,000 MEGAWATTS IS GONNA BE THERE, UH, IN, IN THIS EXAMPLE, UM, YOU KNOW, COULD PRO PROVIDE MORE CAPACITY FOR, FOR OUTAGES INTO THE FUTURE, OR THANK YOU.
ARE THERE ANY OTHER QUESTIONS OR COMMENTS, SETH? UH, AND THINKING ABOUT THESE FORECASTS WHEN WE GET TO THE CDR, HAVE YOU DECIDED HOW MUCH OF THE SPECULATIVE LOAD YOU MAY OR MAY NOT INCLUDE IN THE, UH, LONG-TERM FORECAST USING THE CDR? YEAH, THAT'D BE A QUESTION FOR ANOTHER TEAM.
I'LL, I'LL WRITE THE QUESTION DOWN.
ANY OTHER QUESTIONS? ALL RIGHT, THANK YOU.
I THINK I KNOW THE ANSWER, BUT EVERYBODY DOES WANNA KEEP THAT REPORT HERE AT TAC, CORRECT.
I THINK IT NEEDS TO BE STANDING, SO MAYBE MOVE IT UP TO RIGHT AFTER SUBCOMMITTEE REPORTS AND, AND FIND A WAY TO MAKE IT MAYBE MORE STANDARDIZED.
ANY OTHER BUSINESS? I, I'M, I HAVE YOUR SUGGESTION, BUT I THINK COREY IS GONNA, I
[14. Combo Ballot (Vote)]
GOT A SUGGESTION FROM RICHARD ROSS FOR WHEN WE DO THE COMBO BALLOT THAT YESES SAY TURKEY AND NOS SAY HAM.WELL, HERE'S, HEY COREY, CAN YOU CHANGE NPR 1240 MOTION? OH, YEP.
[03:50:01]
QUEUE? IS THAT RANDY? YES.UH, BEFORE THE HOLIDAY SET IN, UH, UH, I WAS FEELING NOSTALGIC AND I WANTED TO, UH, REACH OUT TO TAC MEMBERS AND THANK THEM FOR THE REALLY GREAT WORK THAT YOU GUYS HAVE DONE THIS YEAR ON SOME REALLY, UH, LEVIATHAN SCALE PROBLEMS AND CHALLENGES.
YOU GUYS HAVE DONE A GREAT JOB OF, OF KEEPING THINGS MOVING AND MAKING GOOD DECISIONS AND, UH, TO ALL, UH, ALL THE STAKEHOLDERS WHO, WHO HAVE RIDDEN THE EXPRESS LANE THROUGH MY LIFE.
I WANTED TO WISH Y'ALL A WARM AND, AND HAPPY, UH, THANKSGIVING TO YOU AND YOUR FAMILIES AND FRIENDS AND, UH, HAVE A GREAT ONE.
DID YOU OH, NO, I WAS GONNA SAY WE MISS YOU, RANDY.
THAT'S MAYBE WHY WE GOT SOMETHING DONE.
WE DIDN'T ELECTRONIC, WE DIDN'T HAVE TO ARGUE WITH YOU ALL THE TIME, SO MAYBE THAT CHANGED SOME OF THE DYNAMICS.
WELL, THANK, THANK YOU SO MUCH, RANDY.
COREY, ARE YOU GONNA LET US DO TURKEY AND HAM? I WOULD ADVISE AGAINST IT.
JUST, UH, TAC HAS STRIVEN, AT LEAST IN THE PAST YEARS THAT I'VE BEEN HERE TO REMAIN PROTEIN NEUTRAL IN TERMS OF HOLIDAY.
AND SO BY DESIGNATING HAM AS A NO VOTE, I THINK YOU WOULD BE SETTING A DANGEROUS PRECEDENT.
SO ALL, ALL FOODS ARE WELCOME AT THE TAC THANKSGIVING TABLE.
UM, I, I WILL NOTE, UH, IN ADDITION TO THE TYPO THAT ANN JUST POINTED OUT, UM, IN BOB HILTON'S DISCUSSION ABOUT 1254 AND HAVING APPROPRIATE RUNWAY AFTER APPROVAL IN THE DISCUSSION WITH AG ON THE PHONE, THEY WERE TALKING ABOUT MARCH 1ST AS BEING THE EXPECTED DATE.
IF WE HAD, IF WE JUST LET IT FLY, IT WOULD'VE TAKEN EFFECT ON FEBRUARY 1ST.
RIGHT? SO MODIFIED THE MOTION, SO IT'S STILL THE EXACT SAME LANGUAGE FROM PRS, BUT NOW CODIFYING THE MARCH 1ST TO BAKE IN AN EXTRA MONTH SO THAT 1254 WON'T TAKE EFFECT IMMEDIATELY.
UH, DO WE HAVE A MOTION AND A SECOND? WHAT WAS THE MOTION? SECOND.
I, I WILL REMEMBER THAT YOU WOULDN'T LET US DO A SILLY YES OR NO.
I DID ASK HIM EARLIER, SO HE HAD TIME TO COME UP WITH A REASON.
OH, THAT WAS, THAT WAS SPONTANEOUS.
BUT Y'ALL HAVE TAUGHT ME YOU CAN TAKE ANY POSITION YOU WANT AS LONG AS YOU SPIT OUT ENOUGH WORDS ABOUT IT.
SO, HEY,
WE WILL START UP WITH THE CONSUMERS, WITH NAVA FOR ERIC.
MIKE, AT THE RISK OF, UH, HANDING IT UP, I, UH, JUST HAVE TO SAY I GOBBLED UP SO MUCH INFORMATION TODAY.
AND THAT'S A YES, WELL PLAYED SIR BLAKE.
ONTO OUR INDEPENDENT GENERATORS.
SOMETHING LIKE THAT WOULD COME KY SLASH YES.
AND I'M THANKFUL FOR YOU COREY
THANK YOU, NED, ONTO OUR IPMS. RASHMI.
KEITH GOT YOUR YES IN CHAT, KEITH.
AND THEN DAVID HAD TO LEAVE US, SO HE IS PASSED HIS VOTE TO JOSE FOR THAT ONE.
AND ALICIA, SO WOULD SIDES BE ABSTAIN? SIDES AREN'T FORMALLY DEFINED IN 2.1, SO
I THINK YOU HAVE TO ADD THOSE FIRST.
AND THANK, THANK YOU FOR LISTENING TO ALL OF OUR WORDS THIS YEAR AND, UH, SU AND ANN TOO, KEEPING US
[03:55:01]
ON TRACK.AND, AND I WANNA REITERATE WHAT RANDY SAID, YOU KNOW, THANK YOU EVERYBODY FOR A LOT OF GOOD WORK.
UM, AMIDS, YOU KNOW, WE DO A LOT OF HARD THINGS, BUT I HAVE A LOT OF FUN WORKING WITH EVERYBODY HERE.
AND KEITH, KEITH BRINGS THE, THE FUN TOO.
WE'RE BREAKING IN PRESENTATION THOUGH.