Jan 22, 2025 Technical Advisory Committee

WE'RE GONNA GO INTO THE MEMBERSHIP INTRODUCTIONS.

I WILL NOT READ THIS ENTIRE DOCUMENT, BUT THIS IS THE ANTITRUST ADMONITION AND ALSO THE DISCLAIMER AND THOSE, I'M SORRY, THIS ITEM IS AVAILABLE ON THE TAC WEBSITE UNDERNEATH THE GOVERNANCE TAB AS A KEY DOCUMENT.

SO IF YOU WOULD LIKE TO LOOK AT THAT AT A LITTLE BIT DEEPER REVIEW, PLEASE FEEL WELCOME TO GO TO THAT.

I DO HAVE A QUORUM.

I WANTED TO NOTE THAT.

AND WE ALSO HAVE A COUPLE OF PROXIES AND ALT REPS THAT I NEED TO GO THROUGH FOR THE CONSUMER SEGMENT.

UH, NAVAGE WITH THE OFFICE OF PUBLIC UTILITY COUNCIL HAS GIVEN HIS PROXY TO ERIC GOFF UNDERNEATH THE ALT REPS.

UM, WE HAVE MIKE WISE WITH, UH, GOLDEN SPREAD ELECTRIC CO COOPERATIVE.

HE'S GIVEN HIS ALT REP TO JOE DAN WILSON AND JOHN PACKARD WAS STACKED, HAS GIVEN HIS ALT REP TO LUCAS TURNER.

AND THEN KEITH NICKS WITH THE IU SEGMENT TO GNMP HAS GIVEN HIS ALT REP TO ROB .

AND NOW

[2. Membership Introductions]

IF WE WERE IN PERSON, WE WOULD GO THROUGH AND LET EVERYBODY INTRODUCE THEMSELVES.

BUT FOR THE, UM, INTEREST OF TIME, I WILL JUST GO AHEAD AND PRESENT THIS LIST.

AND JUST NOTE, UH, WE HAVE QUITE A FEW RETURNING TAG REPRESENTATIVES AND WE THANK YOU ALL FOR BEING WILLING TO COME BACK AND CONTINUE TO SERVE IN THIS CAPACITY.

AND WE ALSO HAVE THREE NEWLY SEATED REPRESENTATIVES, AND I DID WANNA TAKE A MOMENT TO ANNOUNCE THEM.

IN THE COOPERATIVE SEGMENT, WE HAVE KYLE MINNICK WITH BRAZO ELECTRIC COOPERATIVE IN THE IPM SEGMENT, UH, SETH COCHRAN WITH .

AND THEN IN THE IOU SEGMENT, WE HAVE MARTHA HENSON WITH ENCORE.

AND AGAIN, THANK YOU ALL.

NEW AND RETURNING REPRESENTATIVES.

NOW

[3. Election of 2025 TAC Chair and Vice Chair (Vote)]

WE'RE GONNA GO INTO THE ELECTION OF THE ATTACK CHAIR AND VICE CHAIR.

I'M GONNA BRIEFLY GO THROUGH THIS PROCESS.

WE ARE DOING IT IN WEBEX, SO THERE'S A FEW CHANGES, BUT SOME OF YOU ARE ALREADY FAMILIAR WITH THIS.

I WILL MOMENTARILY OPEN THE FLOOR FOR NOMINATIONS FOR THE TAC CHAIR, AND THEN, UM, WE'LL CLOSE 'EM AND THEN WE'LL NOTE VOTE ON THE NOMINATIONS FOR THE TAC CHAIR.

A COUPLE OF ITEMS TO NOTE ON THIS.

IF THERE IS MORE THAN ONE CANDIDATE THAT IS NOMINATED, THEN THE SEATED TAC REPS, UH, WE'RE GOING TO DO THIS PROCESS BY EMAIL AND WE'LL HAVE YOU SEND YOUR, UH, CANDIDATE TO US AT STAKEHOLDER SERVICES@ERCOT.COM.

HOWEVER, IF WE ONLY RECEIVE ONE NOMINATION, THEN BY ACCLIMATION WE HAVE OUR CHAIR.

AND ON THE NOMINATION, I ONLY NEED THE NOMINATION.

I DO NOT NEED A SECOND SIMPLE MAJORITY WINS.

AND AGAIN, WE WOULD TAKE, YOU KNOW, THAT WE DON'T HAVE A SIMPLE MAJORITY, WE WOULD JUST GO THROUGH AND TAKE THE TOP TWO CANDIDATES.

ONCE WE COMPLETE THE TAX CHAIR, THEN I WILL OPEN THE FLOOR FOR NOMINATIONS FOR TECH VICE CHAIR.

AND SO WITH THAT, I'M GONNA GO AHEAD AND ASK, UH, FOR ANYONE THAT WOULD LIKE TO MAKE A NOMINATION TO PUT THEMSELF IN THE QUEUE OR IN THE CHAT.

I'M SORRY.

AND THEN WE'LL GO AHEAD AND ACCEPT NOMINATIONS FOR TAC CHAIR.

OKAY, MARK DREYFUS, I SEE THAT YOU'RE IN THE QUEUE.

COULD YOU PLEASE GO AHEAD AND GIVE US YOUR NOMINATION? I'M

[00:05:01]

SORRY, MARK, IF YOU WERE SPEAKING, I DO NOT HEAR YOU.

CAN YOU HEAR ME NOW? YES, SIR, I CAN.

CAN YOU HEAR ME NOW? OH, YES, SIR.

SO IT'D BE MY PLEASURE TO NOMINATE KAITLYN SMITH TO SERVE FOR AN ADDITIONAL YEAR AS THE TAX CHAIR.

MARK.

KAITLYN, DO YOU ACCEPT THE NOMINATION? YES.

THANK YOU, MARK AND CINDY.

SO, CAITLIN, CONGRATULATIONS.

THANK YOU, KAITLYN.

ARE THERE ANY OTHER NOMINATIONS FOR TAC CHAIR? OKAY, I'M NOT SEEING ANYTHING IN THE CHAT.

YOU ARE, ARE RETURNING AND YOU ARE OUR 2025 TAC CHAIR.

NOW WE'LL MOVE TO THE TOP.

NOW WE'LL MOVE TO THE TECH VICE CHAIR, AND I'M LOOKING FOR A NOMINATION.

ALL RIGHT, RICHARD, I SEE YOU'RE IN THE QUEUE.

I'D LIKE TO NOMINATE MARTHA HENSON FROM ENCORE.

OKAY, THANK YOU, RICHARD.

MARTHA, DO YOU ACCEPT THE NOMINATION? MORNING, SUSIE? YES, I ACCEPT.

ALRIGHT, THANK YOU MARTHA.

ALRIGHT, ARE THERE ANY OTHER NOMINATIONS FOR THE VICE CHAIR? OKAY, WELL THANK YOU VERY MUCH FOR YOUR PARTICIPATION AND CONGRATULATIONS, MARTHA, URR 2025 TECH VICE CHAIR, AND WOULD JUST LIKE TO ASK EVERYBODY TO GIVE THEM JUST A FEW MINUTES TO GO AHEAD AND, UM, GET PREPARED TO LEAD THIS MEETING.

AND THANK YOU ALL FOR YOUR COOPERATION, UH, THIS MORNING.

UH, AGENDA ITEM NUMBER FOUR.

SUSIE, IT'S A LITTLE EASIER WITHOUT HAVING TO MOVE PHYSICAL STUFF.

SHOULD WE GO AHEAD AND AND KEEP GOING? YES.

WELL, I'M, I'M DONE.

SO YOU CAN GO AHEAD AND, AND, UH, BEGIN, UH, WITH THE,

[4. Approval of TAC Meeting Minutes (Vote)]

WE'RE GOOD TO GO.

MARTHA, ARE YOU READY? GOOD HERE.

THANKS, CAITLIN.

THE NOVEMBER 20TH MINUTE.

I DID, I DID WANNA SAY, UM, YOU KNOW, THANK, THANK YOU TO EVERYBODY AND THANK YOU TO MARTHA AND, AND RICHARD BEAT ME TO THE PUNCH.

I I DID WANNA NOMINATE HER.

UM, I, I THINK THIS YEAR IS GONNA BE A REALLY GOOD YEAR.

I THINK WE ARE IN, YOU KNOW, A GOOD BASELINE, YOU KNOW, HEALTH GOOD STANDING AT TECH, AND I THINK THIS IS A YEAR WHERE WE CAN REFINE AND IMPROVE OUR PROCESSES AND COMMUNICATIONS AND, AND REALLY KIND OF LEVEL UP, UM, WITH OUR WORK AND, AND OUR PLACE IN THE GOVERNANCE OF THIS INDUSTRY.

WE HAVE RETURNING TECH MEMBERS AS, AS SUSIE NOTED, YOU KNOW, NOTABLY SETH IS COMING BACK FOR A DIFFERENT COMPANY.

WE HAVE A NEW VICE CHAIR, MARTHA, WITH A, A TON OF EXPERIENCE DURING PRS.

SO I THINK THAT WILL MAKE CORY AND AND MARKET ROLES LIKE US BETTER.

UM, AND I, I THINK LAST YEAR I'M REALLY PROUD OF HOW MUCH WE IMPROVED OUR COMMUNICATIONS WITH THE, THE BOARD.

WE'VE GOTTEN A LOT OF ENGAGEMENT.

UM, CHAIRMAN FLORES CAME TO TECH MEETING.

WE'VE HAD A, A LOT OF ENGAGEMENT WITH, WITH CHAIRMAN FLORES AND, AND WITH THE, THE CHAIRS OF R AND M.

UM, AND, AND GIVEN THEM A LOT MORE INFORMATION AT OUR REPORTS ABOUT TAC AND ABOUT THE SUBCOMMITTEES.

I THINK THAT'S BEEN REALLY WELL RECEIVED.

UM, AND WE, WE WORKED A LOT WITH THE PC CHAIRMAN GLEASON AND WITH PC STAFF LAST YEAR AS WELL.

SO I THINK THIS YEAR IS GONNA BE GREAT.

YOU KNOW, WE HAVE, UH, NEW STAFF AS WELL WHO'S BRINGING COOKIES AND IDEAS AND, AND WE'LL HAVE NEW BOARD MEMBERS AND NEW COMMISSIONERS THIS YEAR.

AND I, I THINK WE CAN DO A LOT OF GREAT WORK.

UH, RICHARD, DO YOU HAVE A FIRST THEME OF THE YEAR BEFORE WE GET TO MINUTE? WELL, CAITLIN, THANK YOU.

YOU KNOW, THAT'S, THAT IS TERRIFIC.

UH, FOR THOSE THAT DON'T KNOW IT, UH, I KNOW WE'RE A GROUP OF GEEKS, UH, BUT 2025 IS A PERFECT SQUARE.

UH, AND SO THE THEME OF THIS MONTH IS SQUARE.

UH, YOU COULD PROBABLY DRAG IT OUT THE ENTIRE YEAR AS WE TRY TO GET OUTSIDE THE SQUARE AND THINK OUTSIDE THE SQUARE, UH, AS WE ATTACK THESE ISSUES.

OKAY, I LIKE THAT.

AT FIRST I WAS GONNA GET DEFENSIVE AND, AND THINK YOU WERE CALLING ME A SQUARE.

BUT I THINK, I THINK THAT IS A, A GREAT THEME.

AND I THINK WE CAN THINK OUTSIDE, UH, THE, THE SQUARE.

SO OUR FIRST ITEM IS TO APPROVE

[00:10:01]

WE HAD ONE EDIT THAT I BELIEVE HAS BEEN POSTED, AND I THINK THAT WAS JUST THE, THE CHANGE IN THE START TIME FOR THAT MEETING TO, IS THAT CORRECT? DO WE HAVE ANY OTHER EDIT? THAT IS CORRECT, CAITLYN, THAT WAS THE ONLY EDIT WAS THE, UH, START TIME.

SO I WOULD PROPOSE AND THAT HAS BEEN CORRECTED AND I'M SORRY.

I WOULD SUPPOSE TO PUT THIS ON THE COMBO BALLOT UNLESS WE HAVE OBJECTION.

ON TO THE MEETING UPDATE.

UM, NEXT IS OUR MEETING UPDATE.

LORI, LET'S PUT THE, THE MINUTES ON THE, THE COMBO BALLOT AND LET'S MOVE

[5. Meeting Updates]

UM, WE'RE COVERING THE MEETINGS WE'VE HAD SINCE THE NOVEMBER 20TH TRACK AT THE DECEMBER 3RD BOARD MEETING.

THE BOARD APPROVES ALL REVISION REQUESTS IN FRONT OF THEM EXCEPT FOR MPR 1246 AND THE RELATED REVISION REQUESTS.

UM, THESE WERE REMANDED DUE TO A CHANGE TO THE BASELINE LANGUAGE.

I I THINK THERE WAS APPROVAL OF 1188 OR 1180 AT THE, THE PUC THAT HAPPENED IN THE INTERIM AND, AND CHANGE THE BASELINE, I THINK TO PREVENT THE, IN THE FUTURE WE COULD SPEAK THE ORIGINAL REQUEST PEOPLE TO ATTACK IF WE KNOW THAT SOMETHING LIKE THIS IS PENDING.

UM, AND THEN AT THE JANUARY 16TH PC OPEN MEETING, THE PUBLIC UTILITY COMMISSION APPROVED ALL OF THE REVISION REQUESTS IN FRONT OF THEM.

SO THAT TAKES US PRETTY QUICKLY TO

[6. Board Remand (Vote)]

TWO NPR 1246, THE BOARD REMAND.

UM, AS I I SAID, THIS WAS JUST THE CHANGE TO THE BASELINE LANGUAGE.

I BELIEVE ERCOT COMMENTS WERE FILED YESTERDAY, AND THEY ARE COMING UP ON THE SCREEN.

IS SOMEBODY FROM ERCOT WE TO TALK ABOUT IT? HELLO, CAITLYN, THIS IS KENNETH RAGSDALE.

I CAN JUST INTRODUCE IT REAL QUICK.

GREAT, THANK YOU KENNETH.

UM, SO YEAH, THESE, WE STARTED WORKING ON THESE BACK IN JULY OF 2024.

THEY'RE PART OF THE LANGUAGE THAT'S NECESSARY FOR US TO GO LIVE WITH THE SINGLE MODEL, WITH THE RTCB PROJECT.

AND, UH, LIKE YOU SAID, UH, NPR 1188, WHICH IS DO DISPATCH AND SETTLEMENT FOR CLRS WAS APPROVED BY THE PUC.

SO THIS, THESE FOUR DOCUMENTS ARE BASICALLY HERE FOR, UM, YOU KNOW, THEY HAD TO BE ALIGNED TO THIS 1188, SO THAT'S WHY THEY'RE ALL HERE.

SO I THINK IT'S, UM, STRAIGHTFORWARD FORWARD, UM, JUST TO ALIGN IT WITH 1188 AND IT'S LANGUAGE THAT WE NEED TO GO LIVE THE DAY WE GO LIVE WITH, UH, RTCB.

ANY OTHER QUESTIONS OR DON'T SEE ANY QUESTIONS IN THE QUEUE? ARE THERE ANY QUESTIONS FOR MS? WE WOULD BE LOOKING TO RECOMMEND APPROVAL OF NPR 1246, NGER 2 68 OBBR 52 AND FIGURE ONE 18 AS AMENDED BY 1 21 COMMENT.

AND I SEE A COUPLE OF QUESTIONS NOW.

UM, BILL BARNES AND THEN DAVID KEY.

I WAS GONNA SAY, IT SOUNDS LIKE WE'RE ALL SQUARE ON THIS WHEN WE COULD ADD IT TO THE COMBO BALLOT.

WE DIDN'T HAVE ANY ISSUES WHEN WE LOOKED AT IT.

DAVID, I WAS GONNA SAY THE SAME THING.

I DON'T KNOW THAT WE HAVE ANY ISSUES.

AND YOU WERE GONNA USE THE SQUARE PEN AS WELL.

ABSOLUTELY.

UM, ALRIGHT, SO COREY, WHY DON'T WE GO AHEAD AND ADD THOSE TWO, THE COMBO BALLOT DONE.

THANKS FOR SQUARING THIS ONE UP.

, GEEZ.

UM, OKAY, RICHARD, THIS IS, UH, I THINK YOUR MOST SUCCESSFUL, UM, THEME THAT I REMEMBER.

ALL RIGHT, WE ARE ON TO THE TECH GOALS.

I THINK THIS IS GONNA BE A LITTLE BIT OF, OF A LONGER DISCUSSION.

WE ARE PULLING THE GOALS UP ON, AM I RIGHT? OH, NO, I SKIPPED, SORRY, I HAVE THIS WRONG ON MY I NOTE.

OF 2025 SUBCOMMITTEE AND LEADERSHIP.

SO WE ARE NOT ON THE GOALS YET.

WE ARE ON CONFIRMATION

[7. Confirmation of 2025 Subcommittee/Sub Group Leadership (Vote)]

UM, LEADERSHIP IS ON THE SCREEN.

WE HAVE A FEW NEW FOLKS IN LEADERSHIP, UM, FROM LT RA TO VICE

[00:15:01]

CHAIR ROTH, BLAKE HOLT FROM LT RA TO CHAIR, WMF, AND, UH, JEFF PRICE FROM GOLDEN SPREAD TO CHAIR CREDIT FINANCE SUBGROUP.

AND I JUST WANNA SAY THANK YOU TO, TO ALL THESE, UM, PEOPLE FOR BY SHARING OR SHARING THESE SUBCOMMITTEES AND SUBGROUPS.

THAT'S A LOT OF WORK.

SO WE ARE LOOKING TO APPROVE THIS AS PREVENTED.

I HOPE THIS CAN GO ON THE COMBO BALLOT.

ALL RIGHT, THANK YOU AGAIN, EVERYBODY.

NOW WE ARE ON TO

[8. 2025 TAC Goals (Vote)]

TAG GOALS.

UM, I JUMPED THE GUN A LITTLE BIT, BUT I CAN'T THINK OF A SQUARE PHRASE TO, TO SAY WHAT I DID.

UM, WE ARE PULLING THESE UP ON THE SCREEN.

I THINK MAYBE THIS IS TWO DIFFERENT CONVERSATIONS AND ONE KIND OF ABOUT THE, THE PURPOSE AND FORMAT OF THESE GOALS.

I'VE HEARD SOME DISCUSSION FROM STAKEHOLDERS.

AND THEN I THINK ALSO MAYBE THE SUBSTANCE OF, OF EACH OF THESE GOALS.

I THINK THAT WE DO NOT HAVE TO APPROVE THESE TODAY.

I THINK WE CAN BRING THEM BACK TO FEBRUARY.

SO LET'S HAVE THE DISCUSSION AND THEN SEE WHERE THAT LEAVES US.

ERICA, UH, THANK YOU.

I RAISED A COMMENT AT, UH, WMS ON THIS TOPIC AND, UM, THIS ISN'T A, MAYBE TO START A STRONGLY HELD SET OF BELIEFS HERE, BUT I JUST THOUGHT IT MIGHT BE WORTH US REEVALUATING HOW WE, UH, DO THESE GOALS AND WHAT THESE GOALS ARE FOR, IF YOU NOTICE, KINDA THE ONES THAT ON THE SCREEN.

UM, AND ARE THINGS THAT ARE JUST KIND OF, UM, INTEGRAL TO WHAT IT IS TO BE TAC.

SO IT'S NOT CLEAR TO ME THE PURPOSE OF A GOAL DOCUMENT LIKE THIS.

IF WE WERE TO HAVE A GOAL DOCUMENT, I WOULD MAYBE PREFER IT TO BE MORE SPECIFIC ABOUT, YOU KNOW, HOT TOPICS THAT WE WANNA WORK ON.

SO, FOR EXAMPLE, IF WE WERE, I'M SURE WE'D ALL WANT THE LARGE LOAD INTEGRATION, YOU KNOW, OR THE TRANSMISSION STUFF OR THE OTHER STUFF THAT IS LIKE ACTIVE TOPICS RIGHT NOW TO BE, UM, THE FOCUS OF A GOAL LIST.

UM, BUT IF IT'S GONNA BE A GENERIC LIST, YOU KNOW, WE DO THIS EVERY YEAR.

I'M NOT SURE THAT WE NEED TO DO THIS.

WE'RE NOT REQUIRED TO DO THIS AS FAR AS I KNOW.

UM, IT'S JUST BEEN OUR PRACTICE FOR MANY YEARS.

AND, UM, SO I WOULD JUST LIKE TO TAKE THE OPPORTUNITY TO SAY, DO WE WANNA STILL DO THIS? AND IF SO, SHOULD WE DO IT A DIFFERENT WAY? AND IF NOT, THEN WE CAN CONGRATULATE OURSELVES FOR CHECKING OFF ALL OF OUR GOALS.

I, I HEARD YOUR COMMENT THAT WMSA FEW WEEKS AGO, IT, IT GOT ME THINKING ABOUT THIS.

UM, THIS IS MARTHA HENSON WITH ENCORE, BY THE WAY.

AND, YOU KNOW, AFTER HEARING THOSE COMMENTS AND KIND OF LOOKING AT THESE WITH A FRESH SET OF EYES, IT, IT LOOKS LIKE THESE S HAVE GOTTEN PRETTY LONG.

UM, THEY'RE, YOU KNOW, ALMOST 20 OF THEM NOW.

I, I SEE A LOT OF REDUNDANCY IN THEM.

THERE'S SEVERAL, I THINK THREE THAT MENTIONED MARKET DESIGN.

THERE'S MULTIPLE THAT MENTION ANCILLARY SERVICES.

AND SO I'M, I, UH, YOU KNOW, I SEE WHERE ERIC IS COMING FROM ON THIS.

I GUESS, YOU KNOW, ONE SUGGESTION I WOULD HAVE IS TO, UM, YOU KNOW, ASSIGN, ASSIGN ME TO TAKE A STAB AT DEVELOPING A ONE PAGE VERSION OF THIS THAT TRIES TO CONSOLIDATE THE THINGS THAT ARE REPETITIVE AND DUPLICATIVE THAT DESCRIBE THE TAC, UH, MISSION, IF YOU WILL, AT A HIGH LEVEL IN A WAY THAT'S, YOU KNOW, NOT LIKELY TO CHANGE FROM YEAR TO YEAR.

AND THEN WE FOCUS MORE ON FLUSHING OUT AND ENHANCING THE ACTION ITEM PROCESS, UH, TO CAPTURE, YOU KNOW, THINGS THAT ARE IN FLIGHT OR EMERGING FOR EACH PARTICULAR YEAR THAT ARE MORE LIKE SHORT IN DURATION AND SORT OF ENHANCE THE ACCOUNTABILITY ON THAT FRONT.

SO I'LL MAKE THE OFFER, UM, TO KAITLYN TO, TO BRING BACK MAYBE A ONE PAGE VERSION OF THIS FOR CONSIDERATION NEXT MONTH.

UM, THAT MIGHT HELP KIND OF BALANCE WHAT ERIC'S LOOKING FOR WITH US ALSO BEING ABLE TO KEEP A GOLD DOCUMENT FOR 2025.

I'VE ALSO BEEN THINKING ABOUT ACCOUNTABILITY.

THANKS, MARTHA.

I THINK THAT SOUNDS GREAT.

THAT THE THING I'VE BEEN THINKING ABOUT ARE HOW THIS INTERACT WITH OTHER DOCUMENT YOU MENTIONED THE, THE ACTION ITEMS. AND SO I THINK, YOU KNOW, IF EVERYBODY AGREES THAT THESE ARE SORT OF STANDING HIGH LEVEL THAT DON'T CHANGE YEAR TO YEAR, AND THEN THE ACTION ITEMS ARE, ARE THINGS THAT WE NEED TO GET DONE, MAYBE WE'RE LOOKING AT IT DIFFERENTLY.

'CAUSE

[00:20:01]

LIKE, ARE WE GIVING OURSELVES A GRADE ON THESE GOALS? ARE WE DOING A MIDYEAR CHECK-IN? UM, AND THEN, YOU KNOW, THERE, THERE'S ANOTHER DOCUMENT THAT LIVES ON, ON THE TECH PAGE, KIND OF THE GUIDING PRINCIPLES OF THE NODAL MARKET FROM 2010.

AND SO I, I DON'T KNOW THAT I WANNA GET MARK DIRECTLY MAD AT ME AND, AND TRY TO MOVE OR CHANGE THAT, BUT I, I THINK WE JUST WANNA BE CLEAR ON THE THINGS WE SAY TECH IS FOLLOWING HOW WE USE THOSE DOCUMENTS, YOU KNOW, THAT EVERYBODY KNOWS WHAT WE'RE DOING AND, AND AS I SAID, KIND OF HOLD OURSELVES ACCOUNTABLE.

AND THEN I THINK THE OTHER THING WE SHOULD THINK ABOUT IS HOW OUR GOALS INTERACT WITH THE SUBCOMMITTEE GOAL.

SO DO WE NOT WANT THE SUBCOMMITTEES TO, TO START WORKING ON THEIR GOALS UNTIL WE, WE HAVE THESE FINALIZED? UM, DO WE WANNA MAKE THAT SORT OF A INTERACTIVE PROCESS OR WE ALSO KIND OF ASSIGN THINGS OR, OR THEY'RE ALIGNED AT LEAST.

AND SO I THINK THOSE ARE A LOT OF THINGS TO, TO CONSIDER THAT I, I DON'T KNOW THAT WE CONSIDER EVERY YEAR.

NOW WE ARE ONTO THE, UH, EAL CREDIT FORMULA PROPOSAL.

ANY OTHER COMMENTS OR SHOULD WE LET, UH, MARTHA TAKE THIS AS A, A ONE PAGER? ALL RIGHT, MARTHA, WHY DON'T WE TALK ABOUT IT OFFLINE AND THEN WE CAN, UH, BRING THIS BACK IN FEBRUARY.

I SAW A BALLOT.

I DON'T BELIEVE WE NEED TO, DO WE NEED TO VOTE ON THIS THOUGH? DOES THIS REQUIRE A, A TABLING OR, OR IS THIS JUST, WE VOTE TO APPROVE WHEN WE'RE READY TO APPROVE? YEAH.

GOT THAT.

WHEN YOU'RE READY TO APPROVE IT.

[9. EAL Credit Formula Proposal]

THIS WAS A, UH, REQUEST FROM A TECH MEMBER, AND MY UNDERSTANDING IS THE CREDIT OR FINANCE SUBGROUP HAS FLESHED THIS OUT OUT AND DECIDED ON THIS AS A CONCEPT.

AND THEN WE WILL STILL SEE THE NORMAL REVISION REQUEST OF THE PROCESS, BUT WE WANTED TO GET A PREVIEW ATTACK OF THE CONCEPT.

THANKS, CAITLYN, THIS IS AUSTIN, AND YES, I AGREE WITH EVERYTHING YOU SAID.

UM, SO JUST A HIGH LEVEL RECAP.

THE CFSG HAS BEEN HAVING A LOT OF MEETINGS DISCUSSING CHANGES TO THE EAL CREDIT EQUATION FOR ALMOST TWO YEARS.

UM, AND LAST DECEMBER, THEY VOTED ON A FINAL PROPOSED CHANGE AFTER REVIEWING AROUND 2020 DIFFERENT SCENARIOS.

UH, WHILE THAT WAS, WHILE THAT WAS STILL, UH, ONGOING, THERE WAS A REQUEST TO BRING, TO BRING THE FINAL SOLUTION HERE BEFORE WE FILED AN NPRR.

UM, I KNOW THAT REQUEST WAS MADE WHEN SOME OF THE, THE, UH, CHAMPION PROPOSALS WERE PRETTY COMPLEX AND COMPREHENSIVE AND PRETTY MUCH REWRITES OF THE ENTIRE, UH, EQUATION.

UH, SINCE THAT TIME THOUGH, WE'VE, THE CFSG SETTLED ON IT MORE, A MUCH SIMPLER, UM, ADJUSTMENT, WHICH I WOULD CALL IT MORE OF A TWEAK THAN A REWRITE.

SO, UM, I'M NOT SURE IF THAT, UM, I WOULD GUESS THAT'S HELPFUL IN HELPING OTHERS DIGEST THE CHANGE AND, EXCUSE ME.

UM, AND SO, UH, UH, YEAH, THAT'S ALL I HAVE TO SAY THERE.

SO, UM, WE HOPE TO SUBMIT AN NPRR, LIKE CAITLYN SAID, SOON IN THE NEXT MONTH OR TWO.

AND WE'LL RUN THE, THE LANGUAGE BY CFSG FIRST, MOST LIKELY, JUST TO SEE IF WE MISSED ANYTHING.

SO WE WOULD LIKE TO HAVE A NICE, UH, PRETTY SOLID NPRR PRETTY MUCH TIDIED UP WITH A NICE BOW.

I CAN'T THINK OF A SQUARE REFERENCE RIGHT NOW, UM, FOR Y'ALL TO LOOK AT.

UM, BUT SHOULD BE, SHOULD BE SOMEWHAT, UH, SHOULD, SHOULD BE VERY COMPLETE AND, UH, UM, AND, AND SIMPLE FOR Y'ALL TO LOOK AT AND, AND VETTED BY CFSG.

UM, SO MY NEXT SLIDES ARE GOING TO, I GONNA TALK MORE IN DETAIL ABOUT THE PROPOSAL.

UM, BUT I SEE ERIC HAS A QUESTION, SO I CAN STOP HERE.

OH, ALRIGHT.

IF ERIC FIRST TO WAIT TILL THE END, THEN WE CAN DO THAT.

SO, REAL QUICK, HIGH LEVEL, WHAT IS THE EAL FORMULA? THE A L FORMULA IS THE PORTION OF THE CREDIT FORMULAS THAT TRIES TO CAPTURE EXPOSURE DUE TO SETTLEMENT

[00:25:01]

INVOICES.

THERE'S ALSO SOME FORMULAS SPECIFIC TO RRS THAT WAS NOT TOUCHED IN THIS, IN THIS PROPOSAL, WE ONLY FOCUSED ON THE EAL PORTION, WHICH CAPTURES REALTIME AND DAM SETTLEMENTS, UH, TO, SO THIS, THIS FORMULA BASICALLY TRIES TO PREDICT WHAT THE EXPOSURE IS GOING TO BE DUE TO THOSE STATEMENTS AND COUNTERPARTIES TO PARTICIPATE, THEY HAVE TO BE FULLY SECURED WITH ENOUGH COLLATERAL TO MATCH THIS EAL.

THE, THE MAIN REASON WHY WE EMBARKED ON THIS REVIEW IS TO HELP WITH PERIODS OF OVER COLLATERALIZATION.

THERE'S TIMES, ESPECIALLY WHEN WE HAVE ONE PRICE SPIKE FOLLOWED BY ANOTHER, WHERE THE COLLATERAL REQUIREMENTS CALCULATED BY, BY THE EAL FORMULA DO NOT REFLECT ACTUAL EXPOSURE.

UM, SO WHEN WE LOOKED AT THIS, THE GOAL THAT THAT WAS, THE MAIN GOAL WAS TO CORRECT THAT ISSUE, BUT TO CORRECT THAT ISSUE WITHOUT MAKING ANYTHING WORSE.

SO THERE WAS A LOT OF ANALYSIS.

THAT'S WHERE, THAT'S WHERE A LOT OF THE ANALYSIS, UH, FOCUSED ON AT THE CFSG WAS.

WE RAN A LOT OF SCENARIOS TO SEE, YOU KNOW, FIXING THIS PERIOD OF OVERCOLLATERALIZATION, DID IT CAUSE OTHER PERIODS OF UNDER COLLATERALIZATION? YOU KNOW, IT'S KINDA LIKE STICKING YOUR FINGER IN THE DAM.

WE WOULD FIX ONE ISSUE, ANOTHER ONE POP UP, WE WOULD PLUG THAT UP, AND THEN ANOTHER ISSUE WOULD POP UP.

SO THE, THE FINAL SOLUTION DOES REDUCE PERIODS OF OVERCOLLATERALIZATION AND DOES REDUCE PERIODS OF UNDER COLLATERALIZATION ACROSS THE BOARD.

SO, AND IT'S, AND IT'S A RELATIVELY SMALL CHANGE THAT CAN BE IMPLEMENTED PRETTY QUICKLY, UNLIKE SOME OF THE OTHER MORE COMPREHENSIVE SOLUTIONS THAT, UH, WE WERE CONSIDERING.

NEXT SLIDE, PLEASE.

SO THIS IS A PICTURE TO ILLUSTRATE THE ISSUE, THE MAIN ISSUE THAT WE WERE TRYING TO RESOLVE.

SO THE BLUE LINE REPRESENTS THE CURRENT EAL FORMULA, THE, THE COLLATERAL REQUIREMENTS BASED ON THAT FORMULA.

AND YOU CAN SEE WE HAVE THAT HUGE SPIKE THERE ON THE RIGHT HAND SIDE.

THIS IS A, THIS IS AN EXAMPLE OF A SINGLE COUNTERPARTY.

THE RED LINE IS THE PROPOSED FORMULA, AND THE GREEN LINE IS THE REAL LIVE AFTER THE FACT EXPOSURE, RIGHT? WE DON'T, WE DON'T KNOW THE FU WE CAN'T PREDICT THE FUTURE PERFECTLY.

THAT GREEN LINE IS, IS CALCULATED AFTER ALL THE SETTLEMENTS HAVE ACTUALLY CLEARED.

SO THIS IS AN EXAMPLE OF WINTER STORM ELLIOT THAT OCCURRED IN LATE DECEMBER.

SO YOU CAN SEE THE, THE REQUIREMENTS COMING UP IN LATE DECEMBER.

THEY COME DOWN ONCE ELLIOT CLEARS.

AND THEN JUST BASED ON THE MECHANICS OF THE FORMULA, NOT BASED ON ACTUAL EXPOSURE, JUST BASED ON HOW THE, THE, THE ME MECHANISM WORKS, WE SEE THIS SECONDARY SPIKE, UH, IN EARLY JANUARY.

SO THAT WAS THE MAIN ISSUE WE WERE TRYING TO RESOLVE WITHOUT MAKING ANYTHING ELSE WORSE.

THEY CALL IT, IT'S CALLED LIKE A SECOND WAVE, OR THE DOUBLE TOP IS WHAT WE'VE BEEN KIND OF SHORTHAND REFERRING, REFERRING TO IT AS IN CFSG.

UH, THE NEXT SLIDE IS JUST A ZOOMED OUT VERSION SHOWING THE SAME THING ON A LARGER TIMESCALE AND ALSO SHOWING THE VOLATILITY OF THE CURRENT FORM, UH, FORMULA NEXT TO THE PROPOSED.

SO THE COLORS ARE THE SAME, THE BLUE IS THE CURRENT FORMULA, THE RED IS A PROPOSED FORMULA, AND THE GREEN IS THE ACTUAL INVOICE EXPOSURE.

SO YOU CAN SEE WE HAVE THESE VOLATILE SPIKES OCCURRING PERIODICALLY THAT REPRESENT OVERCOLLATERALIZATION.

SO IT'S JUST NOT AS EFFICIENT AS IT COULD BE.

UM, WE STILL HAVE A PRETTY CONSERVATIVE POSTURE WITH THE PROPOSED FORMULA, WHICH IS WHY WE'RE COMFORTABLE WITH IT OVER HERE AT ERCOT RIGHT NOW.

UM, AS YOU CAN SEE, THE RED LINE IS MOSTLY ABOVE THE GREEN LINE.

YOU KNOW, IT'S NOT PERFECT, BUT WE CAN'T PERFECTLY TELL THE FUTURE.

SO, UM, AND WE HAVE SOME MORE DETAILS, STATISTICS, AND SOME OF THE MATERIALS PROVIDED AT CFSG THAT SHOW LIKE THE, UH, THE, THE, THE, THE CHANGE IN INSTANCES OF POSITIVE AND NEGATIVE GAPS.

WE CALL 'EM THE OVERCOLLATERALIZATION UNDER COLLATERALIZATION BY MARKET SEGMENT IF INTERESTED IN DIVING INTO SOME DETAILS.

UH, NEXT SLIDE PLEASE.

OKAY, SO I DIDN'T, I WAS TRYING NOT TO DIVE INTO THE DETAILS TOO MUCH HERE BECAUSE LIKE I SAID, IT'S BEEN DISCUSSED EXTENSIVELY.

I KNOW BRENDAN'S BEEN GIVING YOU UPDATES EVERY MONTH, AND WE'VE HAD A COUPLE PSAS ASKING, LETTING, LETTING FOLKS KNOW THIS IS GOING ON.

AND IF IT'S INTEREST TO YOU, PLEASE COME PARTICIPATE IN CFSG.

UH, HAPPY TO ANSWER QUESTIONS THOUGH IF, IF NEEDED AND ALSO HAVE OFFLINE CONVERSATIONS.

IF, IF FOLKS ARE LIKE TO UNDERSTAND MORE THE MA THE MAIN THING I'M TRYING TO SHOW WITH THIS SLIDE IS HOW SIMPLE THE CHANGE

[00:30:01]

IS, HOW IT'S JUST A TWEAK.

SO HERE'S THE UPPER FORMULA IS THE EAL FORMULA AND THE MAIN CHANGE, THE, THE THRUST OF THE CHANGE IS CHANGING HOW WE APPLY THE FORWARD ADJUSTMENT FACTOR, WHICH IS A FACTOR WE USE TO TAKE TO BASICALLY SCALE UP OR DOWN HISTORICAL INVOICES BASED ON WHAT WE SEE IN FUTURE.

SO THE, THE FORD ADJUSTMENT FACTOR IS JUST A RATIO OF FORWARD PRICES OVER HISTORICAL PRICES.

AND IN A NUTSHELL, WHAT CAUSED THE ISSUE IS IF WE, IF WE USE THAT FORWARD ADJUSTMENT FACTOR ON A HISTORICAL TIME, IF, IF PRICES GO UP AND THEN COME DOWN AND THEN GO BACK UP AGAIN, WE MAY HAVE A HIGH ADJUSTMENT, HIGH, UH, FORWARD ADJUSTMENT FACTOR.

AND IF WE APPLY THAT HIGH FORWARD ADJUSTMENT FACTOR TO A TIME PERIOD OF INVOICES WHERE PRICES WERE ALREADY HIGH, WE'RE SAYING, OH, PRICES WERE VERY HIGH.

THE, THE, THE FORM OF THE BASIS SAYING PRICES WERE VERY HIGH AND THEY'RE GONNA GO HIGHER, WHEN IN EFFECT THEY ACTUALLY CAME DOWN BEFORE THEY WENT UP AGAIN.

AND SO THE PROPOSED FORMULA JUST MOVES THAT FORWARD ADJUSTMENT FACTOR APPLICATION INSTEAD OF APPLYING IT TO THE MAX HISTORICAL AVERAGE INVOICES.

IT, IT APPLIES IT TO EACH PERIOD, LIKE TO THESE BASICALLY TO EACH HISTORICAL INVOICE FIRST BEFORE WE TAKE THE MAX.

NOW THERE'S MORE COMPLICATED THAN THAT 'CAUSE THERE'S SOME AVERAGING GOING ON AND, AND SOME, SOME TIME PERIODS WE'RE AVERAGING, UH, UH, GROUPS OF INVOICES, NOT JUST LOOKING AT SINGLE INVOICES.

UM, THAT'S THE MAIN THAT, THAT, THAT'S LIKE THE, THE, THE SUPER HIGH LEVEL EXPLANATION THERE.

THERE'S ALSO A COUPLE OTHER CHANGES.

THERE WERE TWEAKS THAT WE MADE TO ENSURE WE DIDN'T MAKE THINGS WORSE, AND THAT'S, WE CREATED A SEASONAL LOOKBACK PERIOD OF 40 DAYS FOR SUMMER MONTHS AND 20 DAYS, UH, FOR NON-SUMMER.

AND THAT'S THAT TIME PERIOD.

WE GO BACK AND LOOK AT HISTORICAL INVOICES.

THAT'S WHAT THE TO LOOK GRANT PERIOD IS FOR THE LRQ IN THE FORMULAS.

AND WE ALSO INCREASE THE MINIMUM CREDIT EXPOSURE, WHICH IS THE FLOOR FOR THIS FORMULA TODAY.

IT COVERS ONE DAY OF ESTIMATED LOAD VOLUMES.

UM, AND WE, TODAY IT COVERS ONE DAY, I THINK I SAID ONE, AND THE, UH, PROPOSAL HAS IT COVERED TWO DAYS OF ESTIMATED LOAD VOLUMES.

UH, SO THAT'S ALL I HAVE IN THIS PRESENTATION.

UM, SO HAPPY TO ANSWER QUESTIONS.

YEAH, WE HAVE A BIT OF A QUEUE, UH, ERIC GOSS IS UP FIRST.

UH, THANKS.

I APPRECIATE THE REFINEMENT THAT, UH, YOU AND YOUR STAFF AND THE MEMBERS OF THE SUBGROUP HAVE BEEN DOING TO REFINE THIS PROPOSAL.

UM, I, I DO, UH, THINK THAT IN GENERAL IT MAKES SENSE TO DO, UH, AND RESOLVE THIS, I THINK CLEARLY IDENTIFIED OVER COLLATERALIZATION ISSUE.

BUT, UM, I DO WANT TO DIG IN MORE INTO ANY RISK OF UNDER COLLATERALIZATION.

UM, AND THAT MIGHT BE A LARGER TOPIC, UM, THAT IS OUTSIDE THE SCOPE OF FIXING THIS ONE ISSUE.

UM, IT'S NOT CLEAR THAT WE'VE KIND OF REALLY DONE A DEEP DIVE AS TO WHAT, IF ANYTHING WE COULD, WE COULD HAVE DONE DIFFERENTLY TO AVOID, UM, THE ISSUES THAT LED TO SECURITIZATION.

UM, AND, UM, AND MAYBE THAT'S A, A BIGGER CONVERSATION.

UM, I JUST DON'T WANNA INCIDENTALLY RE RE REDUCE COLLATERAL, UM, AS WE'RE REPAIRING THIS IN WAYS THAT WE DO WANNA ACTUALLY RETAIN, YOU KNOW, THAT COLLATERAL.

SO YOU MENTIONED YOU'VE DONE SOME ANALYSIS OF TIMES WHEN THIS COULD LEAD TO POTENTIAL UNDER COLLATERALIZATION, AND AS THIS JUST MOVES TO THE PROCESS, I THINK THAT'S WHERE I'M GONNA FOCUS.

UH, THAT SAID, OVERALL, I THINK THE APPROACH MAKES SENSE AND Y'ALL HAVE IDENTIFIED SOMETHING THAT'S WORTH FIXING.

A CREDIT ERCOT CREDIT PERSPECTIVE, WE ARE IN A, IN A MUCH BETTER SITUATION.

CAN I RESPOND? SURE, YES, PLEASE DO.

THANKS, ERIC.

UH, WE AGREE WITH YOU.

OUR WORK'S NOT DONE AND WE DO PLAN TO, UH, BRING MORE TOPICS TO CFSG TO TALK ABOUT HOW TO DEAL WITH, YOU KNOW, POSSIBLE LIQUIDITY ISSUES FOR TIME PERIODS LIKE URI.

SO THAT'S, YEAH, I AGREE THAT THIS IS TO SOLVE A VERY SPECIFIC PROBLEM.

AND SO I I WOULD PREFER TO KEEP THAT DECOUPLED FROM THIS.

UM, MAKES SENSE.

AND, AND JUST THERE'S BEEN, THERE'S SO MUCH HAPPENED SINCE YURI AT HIGH LEVEL, I DO THINK THERE HAS BEEN A LOT OF META CHANGES LIKE THE PRICE CAPS, WEATHERIZATION STUFF AT THE, UM, RAILROAD COMMISSION, OTHER CREDIT CHANGES LIKE, UH, UNSECURED CREDIT AND, UM, UH, CHANGE IN THE INDEPENDENT AMOUNT.

THERE HAS BEEN A LOT OF, THERE HAS BEEN A LOT OF OTHER, OTHER ACTIVITIES GOING ON THAT I DON'T WANT US TO FORGET ABOUT.

I DO HAVE A LIST SOMEWHERE, I'M PROBABLY FORGETTING SOME.

UM, SO I DO THINK WE'RE, FROM

[00:35:01]

AND I DON'T THINK THIS IS UNDO, YOU KNOW, THE ORDER OF MAGNITUDE ARE, ARE, UH, MUCH DIFFERENT FOR WHAT'S GOING ON HERE AND WHAT HAPPENED WITH, WITH A LOT OF THOSE CHANGES.

UM, YOUR COMMENT ABOUT UNDER COLLATERALIZATION THIS, THESE CHANGES BASED ON OUR ANALYSES ACTUALLY IMPROVED INSTANCES OF UNDER COLLATERALIZATION AS WELL.

SO NOT ONLY HELPED MADE THINGS MORE EFFICIENT ON BOTH SIDES, IT IT DID NOT INCREASE INSTANCES OF UNDER COLLATERALIZATION.

AND THERE'S SOME, THERE'S SOME POWERPOINT IF YOU, I CAN HELP YOU FIND SOME IF YOU WANNA SEE 'EM.

UM, THERE'S SOME, THERE ARE SOME, UH, SOME OF THAT DATA'S POSTED AT CFSG AS WELL.

UM, SORRY I DIDN'T ADD TO THIS SLIDE.

I THOUGHT ABOUT IT AND I DID BECAUSE I WAS TRYING TO KEEP THIS, KEEP THIS HIGH LEVEL, BUT THANKS.

THANKS, ERIC.

SORRY, I'M DONE.

ALL RIGHT, LET'S GO TO SETH.

YEAH, THANK YOU.

THIS IS SETH WITH VITOL.

I JUST WANTED TO EXTEND MY SUPPORT FOR THE PROPOSAL.

UM, I THINK IT, I THINK OF IT MORE AS THE CORRECTION.

UM, IT REALLY, IT ALIGNS THE DENOMINATOR FOR THE DAY'S USE BETWEEN THE RFAF AND THE RTLE.

UH, TODAY YOU'RE KIND OF USING, UH, APPLES AND ORANGES, UH, TYPE TYPE COMPARISON THAT LEADS TO THIS DOUBLE TOP ISSUE THAT, THAT AUSTIN HIGHLIGHTED.

UM, AND I ALSO, YOU KNOW, WHEN I WAS MORE IN THE CF CF SG IT WAS BECOMING CLEAR THAT THIS WASN'T REALLY ABOUT REMOVING, UH, OVER COLLATERALIZATION, UH, IT WAS ABOUT GETTING THE CREDIT PROFILE CORRECT.

UH, AND I THINK YOU CAN SEE THAT REFLECTED IN THE PROPOSAL THAT IT'S, IT'S BRINGING EFFICIENCIES, UH, TO THE PROCESS WITHOUT PUTTING, UH, MARKED PARTICIPANTS AT RISK.

UH, THIS IS BRIAN COS FROM LO FREEMIUM POWER.

UH, I JUST WANTED TO NOTE PERHAPS IN LINE WITH WHAT ERIC WAS SAYING EARLIER, THAT ON IN THE CREDIT FINANCE GROUP, WHEN WE WERE TALKING ABOUT A LOT OF THIS, I THINK AN IMPORTANT CONTEXT HERE IS THAT CHE, WHO DID A GREAT JOB PUSHING THIS FORWARD HAD PROPOSED AND I THINK SOMETHING LIKE EIGHT MONTHS WERE SPENT ON A SCENARIO THAT AT THE TIME WE WERE CALLING SCENARIO NUMBER SIX THAT ADDRESSED THESE ISSUES AND SOME OTHER ISSUES.

AND I BELIEVE AUSTIN REFERRED TO THAT AS SORT OF A MORE COMPREHENSIVE SOLUTION, UM, THAT EVERYONE HAD KIND OF COME TO TERMS WITH AND CHE SUPPORTED.

AND THEN WHEN CHE WENT AND TALKED TO THE STAFF, IT WAS CLEAR THAT THAT MORE COMPREHENSIVE SOLUTION WOULD'VE TAKEN A LOT MORE ERCOT RESOURCES TO ACTUALLY IMPLEMENT.

SO I THINK IT'S JUST IMPORTANT CONTEXT THAT THE SOLUTION WE'RE COMING WITH NOW DOES SOLVE A PROBLEM, SOLVES, SOLVES MULTIPLE PROBLEMS, UM, BUT DOES NOT SOLVE ALL THE PROBLEMS WE DISCUSSED, NOR DOES IT BRING ALL THE BENEFITS THAT WE DISCUSSED.

UM, SO I THINK ONE OF THE THINGS THAT I HAD ASKED FOR AND OTHERS IN THE CREDIT GROUP HAD AGREED WAS THAT THERE WOULD BE A REVISIT, YOU KNOW, AS SETH NOTED, WE'RE FIXING A PROBLEM, MULTIPLE PROBLEMS, AND IT'S IMPORTANT TO GET THAT FIXED OUT QUICKLY.

BUT I THINK IN LINE WITH WHAT ERIC WAS SAYING, THERE IS A VERY CLEAR ASSERTION FROM EVERYONE ON THE GROUP THAT WE WOULD RETURN TO SOME OF THE OTHER ISSUES THAT WERE SOLVED BY SCENARIO SIX AND, AND ARE NOT SOLVED BY THIS EASIER TO IMPLEMENT SOLUTION.

UM, WHICH I THINK COULD ALSO DOVETAIL WITH SOME OF THE, THE FUTURE INVESTIGATIONS ERIC BROUGHT UP.

SO I THINK IT IS A REALLY GREAT POINT TO, TO KEEP US NOTING THAT THIS WAS NOT OUR FIRST CHOICE SOLUTION.

IT WAS AN EASIER AND MORE QUICK IMPLEMENT SOLUTION THAT SOLVES THE PROBLEM AND THAT THIS SHOULD BE SOMETHING WE RETURN TO.

THIS IS DAVID KIWI CPS ENERGY.

UM, WANTED TO ECHO SUPPORT FOR THIS.

WE DO THINK IT'S A STEP IN THE RIGHT DIRECTION.

IT DOES TAKE CARE OF SOME ISSUES THAT, YOU KNOW, HAVE BEEN, UH, PLAGUING THE MARKET.

SO THIS IS, YOU KNOW, A GOOD FIRST STEP.

LOOKING FORWARD TO SEEING THE OTHER CHANGES THAT ARE GONNA BE REVIEWED.

UM, I DID HAVE A QUESTION, AND WE'RE TALKING ABOUT THE WAY THAT THIS PREVENTS OVER COLLATERALIZATION, UM, FROM SPIKES LIKE A SINGLE SPIKE DOESN'T CREATE THIS DOUBLE TOP.

UH, MY QUESTION IS MORE ABOUT IF THE SYSTEM DOES EXPERIENCE MULTIPLE SPIKES, UM, HOW DOES THIS METHODOLOGY PERFORM? SO IF WE HAVE MULTIPLE EVENTS THAT CREATE THESE SPIKES, WILL THIS CAPTURE THAT OR DOES IT, DOES IT NOT WORK SO WELL? SO MORE OF A, MORE OF A CURIOSITY.

'CAUSE I'M NOT REALLY FOLLOW, I DIDN'T REALLY FOLLOW THE DISCUSSIONS THERE, SO I WANTED TO THINK ABOUT HOW IT WORKS FOR THESE, THESE TYPES OF EVENTS.

THINK IN THE CHART, UH, WE SHOWED WHERE IN, THAT'S EXACTLY THE INSTANCE WHERE WE HAD MULTIPLE SPIKES AND IT DOES ADDRESS THAT PARTICULAR SCENARIO WHEREIN THERE IS THE EXPOSURE, UM, PICKS UP WELL RELATIVE TO THE ACTUAL INVOICE EXPOSURE THAT GOES DOWN.

SO, UM, AND WE PROBABLY PROBABLY GET A BETTER ANSWER FROM CHE OR, OR ALDI OR ONE OF YOU GUYS ON, ON THE LINE AVAILABLE TO ANSWER THAT.

HEY, UH, YES, UH, THIS IS ALI.

UM, SO I, I

[00:40:01]

SO THIS PROPOSAL, UM, ADDRESSES THAT SCENARIO BY MOVING THE FORWARD ADJUSTMENT FACTORS TO THE APPROPRIATE TIME PERIOD INSTEAD OF TO THE HIGHEST HISTORICAL EXPOSURE.

YEAH, THANKS FOR POINTING THAT OUT.

IT, IT DOES LOOK, YOU KNOW, BASED ON THIS GRAPHIC, IT DOES LOOK LIKE IT'S STILL CONSERVATIVE.

UM, IT'S JUST, YES, LESS CONSERVATIVE AND MORE REALISTIC.

SO, UM, LIKE I SAID, SUPPORT THE, THE METHODOLOGY.

THANKS ZOE.

OKAY, WE ARE ON TO LORETTO.

ARE YOU THERE? OKAY, LET'S GO TO SETH AND THEN COME BACK.

SETH, GO AHEAD.

SORRY ABOUT THAT.

I JUST WANTED TO ADD ON TO MY COMMENTS THAT THE, THE BENEFIT OF THIS WILL WE SAY, WELL, OKAY, SO THERE'S GONNA BE, UH, LESS OVER COLONIZATION.

SO THAT MIGHT SEEM INTUITIVE, UH, BUT THAT CAN ALSO JUST BE A PARTICULAR IM IMPACT TO A PARTICULAR ENTITY OR SET OF ENTITIES.

BUT I THINK WE ALSO NEED TO LOOK AT THE SECOND ORDER IMPACT.

SO IN OTHER WORDS, WHEN WE CREATE COLLATERAL REQUIREMENTS THAT ARE EFFICIENT, WE INCENTIVIZE COMPETITION, WE LOWER BARRIERS TO ENTRY AND EFFECTIVELY, I THINK THROUGH THAT COMPETITION WE END UP SEEING, UH, MORE VALUE TO CUSTOMERS AND END USERS.

SO I JUST WANTED TO, TO MAKE THAT POINT.

LORETTA, ARE YOU, UH, IS YOUR AUDIO WORKING NOW? AUSTIN? GO AHEAD.

I WAS GONNA SAY IT AT THE END, BUT LORETTA'S STILL STRUGGLING GETTING DIALED BACK IN, SO I JUST WANTED TO, I JUST ALSO DIDN'T WANNA FORGET TO SAY THANKS TO EVERYBODY THANKS TO CFSG.

THIS WAS A LOT OF WORK.

WE WENT THROUGH A LOT OF SCENARIOS.

WE GOT REALLY HARD SERIOUS THOUGHTS FROM PEOPLE WITH THEIR PROPOSALS TO THEIR FORMULAS AND, AND, AND, UM, ANALYZING THE RESULTS AND THANKS PEOPLE THAT SHOWED UP TODAY, YOU KNOW, TO SHARE THEIR SUPPORT OR, OR THEIR, OR THEIR CONCERNS AND AND COMING PREPARED TO TO TALK TODAY.

SO JUST THANKS A LOT.

THAT WAS A LOT OF WORK FOR EVERYBODY, SO APPRECIATE IT.

BRENDAN, DO YOU WANT TO SAY YOUR COMMENTS WHILE WE'RE WAITING ON LORETTO? UH, YEAH, SURE.

UM, YEAH, I JUST WANTED TO, UH, ENDORSE THE CHANGE.

UM, I THINK ONE THING THAT, UM, WE HAD BROUGHT UP, WE DISCUSSED CAPS AND FLOORS TO, TO OF THE, UH, FORWARD ADJUSTMENT FACTORS, WHICH I THINK IS KIND OF A DISCRETE THING THAT ADDRESSES SOME OF THIS STUFF.

I THINK BRIAN WAS INTERESTED IN THAT.

UM, SO YEAH, THIS IS JUST ONE CHANGE IN A SERIES OF CHANGES WE CAN MAKE.

IT'S JUST SOMETHING THAT I THINK ERCOT CAN TAKE ON RIGHT NOW WITH AVAILABLE RESOURCES AND WE CAN MOVE TO THE OTHER STUFF DOWN THE ROAD.

GREAT, THANK YOU.

I SEE LORETTO BACK ON.

CAN YOU HEAR ME NOW? YES, WE CAN.

WONDERFUL.

UM, SOUNDS LIKE BRENDAN HAD ADDRESSED EVERYTHING I WAS GONNA SAY.

I DIDN'T HEAR EVERYTHING THAT SETH AND BRENDAN HAD SAID.

MY APOLOGIES.

UM, BUT YES, ERCOT WANTED TO GET THIS THROUGH BECAUSE IT'S A CORRECTION WE NEED TO MAKE.

IT'S SOMETHING WE CAN HOPEFULLY GET THROUGH WITHIN THE NEXT YEAR AND GET IT IN BEFORE THE SUMMER OF 2026.

SO, YOU KNOW, NO, IT'S NOT THE ONLY THING WE'RE GONNA LOOK AT, BUT IT'S A STEP IN THE RIGHT DIRECTION.

AND THAT'S ALL I WANTED TO SAY.

[00:45:01]

ANY COMMENT HERE, AUSTIN? IS THAT TIMELINE? UM, WHAT, WHAT ERCOT IS ON BOARD WITH TOO, HAVING SOMETHING BEFORE THE, FOR THE SUMMER OF 2026.

I CAN'T PROMISE THE SUMMER OF 2026 WITH RTC GOING, HOWEVER, THAT WAS SOMETHING IT, THE PROB PROBABILITY OF THIS BEING ABLE TO BE IMPLEMENTED QUICKLY IS PRETTY HIGH.

I, I DON'T KNOW THE EXACT TIMELINE, BUT DEFINITELY MUCH FASTER THAN THE OTHER OPTIONS WE WERE CONSIDERING DUE TO THIS BEING A, SUCH A LIGHTWEIGHT CHANGE.

OKAY, GREAT.

SO WITHIN A YEAR IT DOES SEEM VERY REASONABLE, BUT THERE'S SOME, THERE'S SOME FACTORS OUT OF, OUT OF MY CONTROL.

SO, UM, YEAH, THIS SHOULD BE UNDERSTOOD, SHOULD BE A LIGHTWEIGHT CHANGE THAT CC TO IMPLEMENT IT COULD IMPLEMENT QUICKLY.

MOVE UP THE LARGE LOAD AND OUR CONNECTION STATUS UPDATE TO RIGHT NOW.

ANY QUESTIONS OR COMMENTS HERE? ALRIGHT, WELL THANK YOU, UH, AUSTIN AND CREDIT FINANCE SUBGROUP.

WE, WE ARE GONNA DO A LITTLE BIT OF AN AGENDA CHANGE, UM, DUE TO, TO SCHEDULE, WE ARE GONNA

[18. ERCOT Reports (Part 1 of 2)]

UM, JULIE, ARE YOU READY FOR THAT? JUST TRYING TO GET MYSELF OFF MUTE.

YES, I AM.

WONDERFUL.

APPRECIATE EVERYONE BEING, UH, FLEXIBLE WITH SCHEDULES.

OKAY, WELL, WE'LL GO AHEAD AND GET STARTED.

UH, GOOD MORNING EVERYONE.

MY NAME IS JULIE NIMAN.

I'M THE SUPERVISOR OF THE LARGE LOAD INTEGRATION TEAM AT ERCOT, AND I'LL BE PRESENTING THE Q UPDATE FOR THE LARGE LOAD TEAM.

THIS IS A MONTHLY REPORT THAT WE HAVE BEEN PRESENTING TO TAC AND EXPECT TO CONTINUE TO, SO I'LL BE, UH, TAKING ANY QUESTIONS YOU HAVE AT THE TOP OF THE PRESENTATION.

THERE'S JUST ONE HOUSEKEEPING ITEM THAT I WANNA BRING TO EVERYONE'S ATTENTION BEFORE WE GET STARTED, WHICH IS THAT THE METHODOLOGY HAS BEEN SLIGHTLY UPDATED FOR A COUPLE OF THE SLIDES.

NOW, THE METHODOLOGY UPDATE DOES NOT REFLECT A SIGNIFICANT, UH, DIFFERENCE FROM WHAT WE'VE BEEN SHOWING YOU IN THE PAST.

JUST TRYING TO INCORPORATE MORE GRANULAR DATA ON THINGS LIKE RAMP SCHEDULES AND, UH, DISPLAY THINGS SUCH AS THE, UH, CURRENT AS WELL AS, UH, CURRENT MONTHLY PEAK, AS WELL AS THE ALL TIME PEAK FOR APPROVED TO ENERGIZE PEAK VALUES.

SO JUST WANNA MAKE SURE WE WALK THROUGH THAT AND I'LL POINT THE UPDATES OUT WHEN WE GET TO THOSE SLIDES.

BUT AS A HIGH LEVEL OVERVIEW, THE Q OVERVIEW GRAPH ON SLIDE FOUR NOW INCLUDES MORE GRANULAR DATA ON RAMP SCHEDULES.

OUR Q UPDATE HAS ALWAYS INCLUDED RAMP SCHEDULES, BUT THIS JUST INCLUDES THAT DATA TO A HIGHER DEGREE OF FIDELITY AND THAT CHANGE WILL BE REFLECTED IN PRESENTATIONS GOING FORWARD.

AND ON THAT NOTE, WANNA GIVE A LITTLE FRIENDLY THANK YOU AND A REMINDER, UM, FOR OUR TSP PARTNERS ON THIS CALL WHO, UH, HELP US, UH, UPDATE THE RAMP SCHEDULES AND KEEP US UP TO DATE FOR THESE LARGE LOAD PROFILES.

THANK YOU FOR YOUR COLLABORATION AND SUPPORT, AND WE ASK THAT, UH, YOU CONTINUE TO PROVIDE US THE MOST UPTODATE, UH, DATA THAT YOU HAVE AVAILABLE AS THIS HELPS US WITH OUR INTERNAL TRACKING.

AND THEN OF COURSE, IS WHAT'S REFLECTED, UM, AS WE PRESENT IN FORUMS LIKE TAC AND WHEN WE GET TO SLIDE EIGHT, UM, WE'VE JUST ADDED THE CURRENT MONTHLY PEAK AS WELL AS THE ALL TIME PEAK, UM, FOR APPROVED TO ENERGIZE PEAK VALUE.

SO AGAIN, JUST MORE VISIBILITY INTO THE DATA.

THE LARGE LOAD QUEUE IN THE PAST 12 MONTHS HAS OBVIOUSLY SEEN A LOT OF MOVEMENT.

I'LL JUST DRAW EVERYONE'S ATTENTION TO THE INCREASE FROM THE LAST TECH UPDATE.

SO WE HAD A TECH MEETING IN NOVEMBER AND WE SHED THAT 63,000 MEGAWATTS OF LOAD.

AND SO THAT IS OUR QUEUE IS NOW STANDING AT ABOUT 80 GIGAWATTS OF LOAD.

WE BELIEVE THAT THAT'S REFLECTIVE OF A COUPLE OF THINGS.

THE MAIN ONE BEING ANTICIPATION OF PAYER ONE 15 AND NPRR 1234 PASSING THAT ADDITIONAL SIX, UH, SORRY, NOT 16, 17 AND A HALF, UH, GIGAWATTS OF LOAD BEING ADDED IN THE LAST COUPLE OF MONTHS.

THE MAJORITY OF THOSE INTERCONNECT REQUESTS FOR LOADS ENERGIZING, HAVE BEEN FOR A MORE THAN TWO YEAR OUT TIMELINE.

SO WE REALLY DO THINK THAT THAT IS, UH, REFLECTIVE OF THE, UH, ANTICIPATED, UM, CHANGES TO THE PLANNING GUIDE AND NODAL PROTOCOLS.

[00:50:01]

SLIDE.

SO THIS IS ONE OF THE SLIDES I MENTIONED.

WE DID ADD THE APPROVED TO ENERGIZE BUT NOT OPERATIONAL AS WELL AS OBSERVED ENERGIZED, UH, LOAD VALUE.

SO AGAIN, JUST GREATER FIDELITY IN THE DATA.

AND AGAIN, JUST MORE DETAIL ON THOSE, UH, RAMP SCHEDULES.

YOU CAN STILL SEE THAT 80 AND A HALF GIGAWATTS, UH, TOTAL IN OUR QUEUE AND OUR CATEGORIES REMAIN THE SAME FOR THIS SLIDE APPROVED.

ENERGIZE OUR PROJECTS THAT HAVE APPROVED, UH, RECEIVED APPROVAL TO ENERGIZE FROM AMERICAN OPERATIONS AND ARE FULLY, UH, OPERATIONAL AND, SORRY, I MISSPOKE THERE.

I MEANT OBSERVED, ENERGIZED, APPROVED TO ENERGIZE, BUT NOT OPERATIONAL PROJECTS THAT HAVE RECEIVED APPROVAL TO ENERGIZE FROM ERCOT OPERATIONS, BUT ARE NOT OBSERVED TO BE OPERATIONAL.

THOSE THAT HAVE PLANNING STUDIES APPROVED, WE HAVE APPROVED THEIR, UH, INTERCONNECTION STUDIES, UM, AND HAVE NOT YET SEEN MOVEMENT INTO THE OPERATIONAL SPACE.

THOSE THAT ARE UNDER ERCOT REVIEW OR ARE, YOU KNOW, PRETTY STRAIGHTFORWARD, WE'RE STILL REVIEWING THOSE AND THOSE THAT HAVE NO STUDIES SUBMITTED, UH, PROJECTS THAT ARE TRACKED BY ERCOT, USUALLY SOMETHING LIKE A POI, UM, A MEGAWATT VALUE AND A RAMP SCHEDULE.

UM, AND THAT'S REALLY ABOUT ALL THE INFORMATION WE HAVE ON THOSE LOADS AT THAT POINT.

JULIE, WE HAVE SEVERAL QUESTIONS.

DO YOU WANNA TAKE THOSE NOW OR, OR WAIT TILL THE END OF APPLICATION? LET ME TAKE A LOOK HERE.

UM, YEAH, LET'S GO AHEAD AND, AND TAKE THE QUESTIONS AND WE'LL CONTINUE ON WITH THE PRESENTATION FROM THERE.

OKAY, BRIAN, I, HEY THERE, CAN YOU ALL HEAR ME? YEAH, WE CAN HEAR YOU LOUD AND CLEAR.

ALL THANK YOU SO MUCH.

I FIRST JUST WANNA SAY THANK YOU FOR GETTING MORE GRANULAR DATA FOR LOAD RAMPING.

UH, WE COMPARED THE NOVEMBER VERSION OF THIS VERSUS WHAT'S PUBLISHED HERE AND SAW ABOUT A SIX GIG REDUCTION IN 25 AND 26.

AND WE'RE CURIOUS HOW, UM, THAT WILL SHOW UP IN SOME OF THE RESOURCE ADEQUACY REPORTING, IF AT ALL.

AND I ALSO UNDERSTAND THAT MAY BE OUT OF YOUR LANE TO ANSWER THAT QUESTION.

AND SO I THINK THEY'RE JUST PREEMPTIVELY SAYING, WE'RE GONNA GO AHEAD AND PARTICIPATE IN THIS PROCESS NOW.

YEAH, I APPRECIATE THE QUESTION, BRIAN.

AND YEAH, I, I WOULD I WOULD HAVE TO START WITH REFERRING YOU TO THE ERCOT RESOURCE ADEQUACY TEAM.

UM, YOU KNOW, I I I WILL SAY THAT WE'VE, YOU KNOW, CERTAINLY SEEN, UH, YOU KNOW, PROJECTS THAT HAD ANTICIPATED IN SERVICE STATES.

YOU KNOW, UM, I THINK A COMMON TREND THAT WE'RE WE'RE SEEING IS, YOU KNOW, AS PROJECTS GET CLOSER AND CLOSER TO THEIR INITIAL ANTICIPATED INSERVICE STATE, YOU KNOW, WE HAVE RECEIVED NOTIFICATION THAT THOSE ARE SLIDING OUT DUE TO TRANSMISSION CONSTRAINTS.

SO, UM, IN TERMS OF THE RESOURCE ADEQUACY QUESTION, I WOULD PROBABLY STILL REFER YOU TO OUR RESOURCE ADEQUACY TEAM.

OKAY, LET'S GO TO BILL BURN.

THANKS CAITLYN.

JULIE, REALLY APPRECIATE AGAIN, THIS INFORMATION.

UM, IT IS CRITICAL, UH, FOR US AND ANYONE PARTICIPATING IN THIS MARKET TO UNDERSTAND WHAT'S HAPPENING.

SO I'M, I'M JUST REITERATING MY GRATITUDE FOR YOU BRINGING AS MUCH INFORMATION AS YOU CAN.

I AM APOLOGIZE, GONNA HAVE A LOT OF QUESTIONS ON THIS DECK.

UM, IF YOU CAN GO BACK TO SLIDE THREE, THE, THE COMMENT AT THE BOTTOM THAT YOU COVERED ABOUT THE REASON FOR THE LARGE INCREASE IN THE PAST TWO MONTHS IS SOMEHOW RELATED TO PI R ONE 15 AND ONE AND NPR 1234.

I DON'T, I DON'T FULLY UNDERSTAND THAT.

UM, YEAH, I CAN FLESH THAT OUT.

MY ASSUMPTION IS THOSE, ONCE THOSE REVISION REQUESTS ARE APPROVED, THEY'LL BE RETROACTIVE.

IS THAT NOT THE CASE? SO YEAH, I, I THINK THERE JUST MIGHT BE A MISUNDERSTANDING HERE.

UH, UH, BILL, SO YES, FOR THE CURRENT INTERIM PROCESS, IF YOU GO LOOK AT THE EXTERNAL FACING PUBLIC, UH, MARKET NOTICE THAT GOVERNS THE INTERIM PROCESS, WHICH WE'RE GOVERNED UNDER RIGHT NOW, RIGHT? FIGURE ONE 15 AND NPRR 1234, OUR STOLEN COMMITTEE, THEY HAVE NOT BEEN PASSED.

UM, AT THIS POINT, LARGE LOAD PROJECTS ARE ONLY REQUIRED TO GO THROUGH THE INTERIM PROCESS.

IF THEIR ENERGIZATION DATE IS WITHIN TWO YEARS OF TODAY, THAT CHANGES IN PR ONE 15 AND NPR 1234, WHERE AT THAT POINT, ALL LARGE LOADS OF ALL TIME HAVE TO COME THROUGH THE, THE, UH, UH, THE LARGER INTEGRATION TEAMS QUEUE.

UM, AND SO WE HAD PREVIOUSLY HAD, YOU KNOW, SOME PROJECTS THAT, YOU KNOW, UM, HAD BEEN SHOWING UP, FOR EXAMPLE, IN STUDIES LIKE THE RTP OR RPG.

UM, AND AT, AT THIS POINT, I THINK A LOT OF, UH, UH, MARKET PARTICIPANTS AND STAKEHOLDERS ARE RECOGNIZING THAT, YOU KNOW, THE, THE CHANGE IS INCOMING.

[00:55:01]

SO WE'RE FAMILIAR WITH IT, BUT WHEN 1234 IS, AND BIGGER ONE 15 ARE ACTUALLY IMPLEMENTED, THIS WILL APPLY TO ALL LARGE LOADS, 75 MEGAWATTS OR GREATER, NOT LARGE LOADS THAT ARE, HAVE YET TO BE INTERCONNECTED, IS MY UNDERSTANDING.

RIGHT.

UM, ALL, ALL LARGE LOADS THAT ARE GOING THROUGH THE, UH, INTERCONNECT PROCESS.

OKAY? SO IF YOUR COMMERCIAL, IF YOU GO COMMERCIAL AS A LARGE LOAD, NOW, YOU DON'T HAVE TO PROVIDE THE SAME AMOUNT OF INFORMATION THAT'S IN 1234.

I'M SORRY, BILL, I'M, I'M NOT SURE I'M FULLY UNDERSTANDING THE QUESTION.

YEAH, I JUST, I, MY UNDERSTANDING IS THAT ONCE THESE RULES ARE APPROVED, THEY WILL BE APPLIED UNIFORMLY TO ALL LARGE LOADS, NOT JUST FUTURE LARGE LOADS.

RIGHT? I, I GUESS I'M TALKING ABOUT THE, UM, LIKE INTERCONNECT STUDIES, IF YOU WILL.

UH, WE'RE NOT GONNA, YOU KNOW, GO AND, AND UD AN EXISTING, UM, OPERATIONAL LARGE LOAD.

SO THERE'S C THERE THAT, OKAY.

YEAH, IF IT'S OPERATIONAL TODAY, YOU KNOW, WE'RE, WE'RE NOT GONNA SUBMIT RESET 'CAUSE IT, YOU KNOW, IT WAS APPROVED THREE YEARS AGO, SO YOU CAN GET ACCELERATED STUDIES TODAY IS THE POINT VERSUS WHEN THESE ARE IN PLACE, THERE'LL BE A MORE WHOLESOME SET OF STUDIES THAT COULD SLOW DOWN, UH, ENERGIZATION.

UM, I WOULDN'T NECESSARILY SAY THAT, UM, WE'RE, WE'RE REQUIRING LARGELY THE SAME SET OF STUDIES.

UM, BUT YOU KNOW, OBVIOUSLY THE, THE SOONER WE KNOW ABOUT, UH, AN INTERCONNECT REQUEST, THE SOONER WE CAN, UH, YOU KNOW, REVIEW IT AND RESPOND TO IT.

I'M JUST, I GUESS I'M NOT UNDERSTANDING THE LAST POINT THEN, BUT THAT'S FINE.

LET'S MOVE TO THE NEXT SLIDE.

UH, ON THIS SLIDE, THE OBSERVED ENERGIZED, YOU'RE SHOWING 4,256.

CAN YOU EXPLAIN THE DIFFERENCE BETWEEN THAT AND THEN ONE OF THE LAST SLIDES, THE OBSERVED NON SIMULTANEOUS PEAK, I WOULD EXPECT THOSE TO BE THE SAME NUMBER IF, IF THEY'RE TRULY DIFFERENT THAN I THAN WHAT ARE YOU SEEING THAT'S OBSERVED HERE? WHEN YOU LOOK AT THE OBSERVED NON SIMULTANEOUS PEAK, UM, FOR THE CUSTOMERS THAT HAVE ENERGIZED WITH THE DIFFERENCES OR SAID DIFFERENTLY, WHAT ARE YOU OBSERVING HERE TO GET THE 4 42 56 THAT YOU'RE NOT OBSERVING, UH, WITH THE NONS SIMULTANEOUS PEAK, THAT GETS YOU TO SOME 3000 NUMBER? YEAH, I, I SEE YOUR POINT HERE.

UM, I'M GONNA HAVE TO TAKE THAT BACK INTERNALLY, BILL AND GET YOU AN ANSWER.

THANKS BOB.

WHITMEYER, DID YOU WANNA JUMP IN ON THAT ONE? YES, .

THANK YOU, BILL.

I THINK THE ANSWER TO YOUR QUESTION IS THEY ARE TRYING TO LOOK AT HOW MUCH IS OUT THERE AND ALIVE, RIGHT? SO THAT'S THE TOTAL AMOUNT INTERCONNECTED, AND THEN THE SIMULTANEOUS PEAK IS THE AMOUNT THAT THEY HAVE SEEN AT ONE TIME.

SO THEY'RE TRYING TO TAKE INTO ACCOUNT THOSE THAT ARE CURTAILING FOR, FOR WHATEVER REASON, FOR CT PRICE, WHATEVER, VERSUS HOW MUCH IT IS LIVE OUT THERE.

SO HOPEFULLY THAT HELPS A LITTLE BIT.

I I STILL THINK THEY SHOULD BE THE SAME NUMBER THOUGH.

BOB, IF THIS LAST ROW IS OBSERVED ENERGIZED, WHY WOULDN'T THAT BE THE AMOUNT THAT'S ALIVE? JUST LIKE THE ONE AT THE END? YEAH, I'M GONNA HAVE TO BLOW IT UP ON MY SCREEN.

WE TALK ABOUT THAT.

TERM YOU'RE USING FOR THAT? UH, CHRIS, AT THIS POINT, WE'RE, WE'RE COUNTING ANYTHING THAT'S CO-LOCATED WITH THE GENERATOR AS A CO-LOCATED RESOURCE.

BOB, YOU, I, I THINK WE, IT SEEMS LIKE BILL COULD HEAR YOU.

I COULD KIND OF HEAR YOU, BUT THAT WAS PRETTY MUFFLED, SO I DON'T KNOW IF EVERYBODY HEARD YOU.

WHY DON'T WE, UM, BILL, ARE YOU FINISHED? YES, FOR NOW.

THANKS FOR NOW.

OKAY, GREAT.

UH, LET'S MOVE TO CHRIS.

HI, CHRIS MATOS, GOOGLE ENERGY.

MY QUESTION IS REALLY ON THE, ON SLIDE THREE, HOW ARE Y'ALL DEFINING CO-LOCATED SOURCES? IS THERE A SPECIFIC NPRR

[01:00:01]

SO THAT WOULD BE IRRESPECTIVE OF ITS STATUS OR LIKE THE LINES BEING PHYSICALLY CONNECTED OR TIED INTO THE GRID AS WELL.

IS THIS BEHIND THE TEAM? SINGLE EASY ID, UM, CAN, SORRY, CHRIS, COULD YOU KIND OF ELABORATE ON THE YEAH, I'M THINKING WHEN THEY, IF LINES, I DON'T, I DON'T FOLLOW, YEAH, I'M THINKING AT THE DATA CENTER OR ANY LARGE LOAD IS, HAS LINES INTO THE TRANSMISSION SYSTEM THAT ARE INDEPENDENT OF THE GENERATOR.

SO IF THE GENERATOR TRIPS, IT'S STILL DRAWING OFF THIS, THE TRANSMISSION SYSTEM, OR DOES THAT MATTER? I SEE.

YEAH, I MEAN, I, I THINK ANYTHING THAT'S, YOU KNOW, CO-LOCATED BEHIND THE METER WITH THE GENERATOR.

CHRIS, ARE YOU GOOD ON THAT ONE? UH, YEAH.

BETH, THAT VITOL JUST HAVE A QUICK QUESTION.

HOW MANY OF THESE, UH, PROJECTS THAT ARE IN THE QUEUE, UH, OF THEM, HOW MANY ARE GREATER THAN ONE GIGAWATT? DO YOU, DO YOU HAVE THAT NUMBER? I DON'T, I'M JUST CURIOUS BECAUSE I KNOW YOU WANT TO CAP THAT, SO YEAH, I, I DON'T HAVE THAT INFORMATION AT THIS TIME TO SHARE WITH THE GROUP.

I, I'M CURIOUS BECAUSE IF YOU INSTITUTE THAT MORATORIUM ON OR YOU CAP THEM, UM, I'M WONDERING WHAT THE REDUCTION TO THE QUEUE WOULD LOOK LIKE.

THAT THAT'S, THAT'S THE REASON I ASKED.

YEAH, APPRECIATE THE QUESTION, SETH.

WE'LL SEE IF WE CAN, UH, GET THAT INTO REPORTING IN A LATER QUEUE UPDATE.

IS THAT SOMETHING IF YOU'RE ABLE TO SHARE, MAYBE EVEN IF IT'S NOT IN THE REPORT, WE COULD JUST GET THE, THE ANSWER AND, AND THIS OR ANOTHER STAKEHOLDER GROUP.

LET'S GO TO EVAN.

MORNING, EVAN NEIL WITH LANCIA.

UH, COULD YOU CONFIRM THAT? YOU GUYS CAN HEAR ME? YEP.

PERFECT.

UM, YEAH, SO I JUST KIND OF WANT TO ECHO WHAT SOME OF THE PEOPLE WERE SAYING AND JUST THANK YOU FOR THIS MORE GRANULAR DATA.

THIS IS REALLY HELPFUL AND INSIGHTFUL.

UM, I DO HAVE A COUPLE QUESTIONS THOUGH ABOUT HOW THE STATUS PRESENTED IN, IN THIS NEW FORM.

AND PARTICULARLY, I WAS JUST WONDERING IF YOU COULD KIND OF ELABORATE ON THIS BREAKOUT ON THE ENERGIZED LOADS OR I GUESS THE OBSERVED ENERGIZED AND THE APPROVED TO ENERGIZE, BUT NOT OPERATIONAL LOADS.

I JUST, IT, IT SEEMS A LITTLE, AT LEAST IT DOESN'T IMMEDIATELY MAKE SENSE TO ME HOW A LOAD CAN BE APPROVED TO ENERGIZE, BUT IS NOT NECESSARILY OPERATIONAL YET.

ESPECIALLY WHEN WE'RE LOOKING AT, YOU KNOW, THE JUMP FROM 2028 TO 2029, HOW 300 MEGAWATTS CAN BE APPROVED TO ENERGIZE, YOU KNOW, FOUR YEARS OUT IN ADVANCE.

YOU KNOW, I THOUGHT THIS WAS KIND OF A, A PROCESS THAT HAS TO GO THROUGH THE CONTROL ROOM PRETTY MUCH, YOU KNOW, WHEN THE LOAD WANTS TO ACTUALLY ENERGIZE.

SO I'M JUST WONDERING IF YOU CAN ELABORATE A LITTLE BIT ON THAT.

UM, AND THEN THIS IS MEANT TO BE A BREAKOUT OF WHAT'S TYPICALLY SHOWN IN SLIDE SEVEN AND EIGHT.

UM, WE'RE JUST ALSO SHOWING THIS ON THE, UH, THE INTERCONNECTION QUEUE GRAPH.

UH, OO OKAY.

SO I, I GUESS I'M STILL A LITTLE CONFUSED HOW 300 MEGAWATTS IS APPROVED TO ENERGIZE IN THE FUTURE WHEN IT SHOULDN'T EVEN BE IN THE OPERATIONS MODEL YET.

SO I, I THINK YOU'RE, UM, WELL, I GUESS MY FIRST QUESTION IS WHERE, UH, WHICH 300 MEGAWATTS ARE YOU REFERRING TO? YEAH, SORRY, IT SHOULD HAVE BEEN MORE SPECIFIC.

UH, I'M LOOKING AT SLIDE FOUR IN THE APPROVED TO ENERGIZE BUT NOT OPERATIONAL CATEGORY MM-HMM .

AND I'M SEEING IN 2028 IT SAYS 1750, AND THEN IN 2029 IT JUMPS TO 2050.

AND SO I'M JUST, I'M JUST KIND OF WONDERING HOW 300 MEGAWATTS IS APPROVED IN A AND FOUR YEARS OUT, THAT'S WHERE YOU'RE GETTING YOUR THREE, 300.

KNOW, AS THOSE, UM, KIND OF RAMPING BLOCKS, IF YOU WILL, ARE APPROVED TO ENERGIZE, THAT'S WHAT COMES IN AT THOSE DIFFERENT, UH, POINTS IN TIME.

UM, SO THIS, AGAIN, BECAUSE IT'S, YOU KNOW, REFLECTING THESE GRANULAR, YOU KNOW, RAMP SCHEDULES, THIS IS, YOU KNOW, UH, PRESUMABLY, AND AGAIN, I I, YOU KNOW, WITHOUT GOING INTO SPECIFIC INFORMATION ABOUT CERTAIN PROJECTS, UM, YOU KNOW, I THINK GENERALLY WHAT I WOULD READ INTO THAT IS THAT, YOU KNOW, THAT THAT LOAD IS APPROVED TO ENERGIZE, BUT IT HAS A RAMP SCHEDULE.

AND SO IT'S JUST, YOU KNOW, RAMPING AT THAT RATE.

SO, YOU

[01:05:01]

SO, SO JUST TO CONFIRM, TO MAKE SURE I'M HEARING RIGHT, THAT'S AN ALREADY APPROVED LOAD THAT HAS SOME OF ITS LOAD ALREADY ONLINE AND IT WILL RAMP UP 300 MEGAWATTS IN 2028 OR 2029.

IT MIGHT NOT BE JUST ONE LOAD, BUT CORRECT.

APPRECIATE THE CLARIFICATION.

OKAY, THANKS THAT, THAT MAKES MORE SENSE.

UM, AND THEN I GUESS I HAVE, I HAVE ANOTHER QUESTION AS WELL.

YOU KNOW, SEEING THAT YOU GUYS IMPLEMENTED THE RAMP SCHEDULES, A LOT OF THESE NUMBERS CAME DOWN, YOU KNOW, SPECIFICALLY FOR LIKE PLANNING STUDIES APPROVED IN 20 25, 20 26, IS THAT CHANGE, UH, REFLECTED IN THE LOAD INTERCONNECTION STUDIES THAT ARE BEING DONE FOR NEW LOADS? OR ARE THOSE STUDIES USING THOSE OLD TOTALS WHERE WE WERE SEEING MUCH MORE INFLATED NUMBERS? UH, SO EVAN, I THINK, UM, YOU KNOW, ONE OF THE THINGS THAT WE'RE TRYING TO DO, UM, IN THE INTERIM PROCESS IS MAKE SURE THAT WITH OUR TS P PARTNERS WE'RE HIGHLIGHTING THE, YOU KNOW, KIND OF NEIGHBORING, UH, UH, PROJECTS, YOU KNOW, WITH WITHIN A CERTAIN TSPS, UH, SERVICE TERRITORY THAT, YOU KNOW MIGHT BE IMPACTING THEIR, THEIR LOAD.

SO, YOU KNOW, WE ALL THAT TO SAY WE DO KEEP OUR TSP PARTNERS UP TO DATE ON, YOU KNOW, THE, THE NUMBERS IN OUR QUEUE.

AND SO THEY, THEY SHOULD BE AWARE OF, UM, YOU KNOW, KIND OF WHAT LOAD THEY, UH, THEY SHOULD PLAN FOR BASED ON, YOU KNOW, WHAT'S IN THE SSWG CASES AND ALSO, YOU KNOW, WHAT WE'RE, WE'RE SEEING IN R-Q-O-O-O.

SO I GUESS THEN, JUST TO CLARIFY, SO TO BRING IT BACK TO THE EXAMPLE WE WERE TALKING ABOUT JUST A SECOND AGO, WITH THAT LOAD THAT HAS 300 INCREMENTAL COMING ON IN 2029, IF I'M INTERCONNECTING THE LOAD RIGHT NOW, AND LET'S JUST SAY THAT THAT TOTAL LOAD IS A GIGAWATT WOULD, AND I WANNA CONNECT IN 2026, WOULD THAT LOAD BE IN MY STUDY AS A GIGAWATT OR AS 700 MEGAWATTS? IF IT'S IN, SORRY, JUST TO MAKE SURE I UNDERSTAND YOUR HYPO, IF IT'S IN SERVICE TODAY AT 700, WELL, IT'S APPROVED FOR A GIGAWATT, BUT ITS RAMP UP SCHEDULE DOESN'T GET TO A GIGAWATT UNTIL 2029.

AND I WANT TO CONNECT IN 2026.

SO YOU'RE SAYING IS, IS THAT RAMP SCHEDULE PROVIDED TO, UH, YES.

IS IT INCLUDED IN THE LOAD INTERCONNECTION STUDIES THAT, THAT ARE HAPPENING TODAY? YEAH, IT HONESTLY DEPENDS ON THE STUDY, EVAN.

AND, UH, UH, JULIE, I'LL, I'LL ECHO THE, UH, THE, THE, THE THANKS FROM THAT EVERYONE ELSE HAS SAID THIS IS, UH, IT'S HELPFUL TO GET ADDITIONAL CLARIFICATION AND, AND DETAIL AND, UH, APPRECIATE THE CONTINUOUS IMPROVEMENT OF, OF THESE KINDS OF REPORTS, UM, THAT'S REALLY HELPFUL TO THE, THE WHOLE MARKET.

SO, UM, I DID I JUST HAVE ONE FOLLOW UP QUESTION ON, UM, SOMETHING THAT YOU HAD RESPONDED TO BILL ON, YOU'D MENTIONED THAT YOU'VE SEEN AS PROJECTS GET CLOSE TO ENERGIZATION, THERE'S SOMETIME, OR THERE'S A MAYBE A COMMON THEME OF THE, UM, THE ACTUAL IN-SERVICE STATE SLIPPING BACK.

AND I, I WAS JUST CURIOUS IF YOU CAN OFFER ANY COLOR ON THE, THE FREQUENCY AND MAGNITUDE OF THOSE SHIFTS.

IS THAT SOMETHING THAT YOU KNOW IS AFFECTING, UM, YOU KNOW, A, A LARGE PERCENTAGE OF PROJECTS OR A, IS IT A, YOU KNOW, A SIZABLE MINORITY LIKE, YOU KNOW, 20% FOR INSTANCE, AND, AND HOW MUCH THAT'S, THAT'S HAPPENING OR, YOU KNOW, HOW FAR BACK IT'S MOVING? IS IT SIX MONTHS OR IS IT LIKE A YEAR BACK? YEAH, NO, THANKS FOR THE QUESTION AND I DON'T HAVE EXACT NUMBERS ON THAT.

YOU KNOW, I COULDN'T GIVE YOU THE, THE PERCENTAGE I THINK THAT YOU'RE LOOKING FOR.

UM, I THINK IT'S A, A GENERAL OBSERVATION, UM, SINCE THAT IS SOMETHING THAT, YOU KNOW, HAS BEEN COMMENTED IS, YOU KNOW, THAT, THAT Q HAS, UM, YOU KNOW, DECREASE.

AND AGAIN, THIS IS, UH, I WANNA REITERATE THAT OUR, OUR QUEUE REPRESENTS, YOU KNOW, OUR CURRENTLY UP TO DATE INFORMATION, BUT THAT INFORMATION CAN CHANGE AND SO IT CAN CHANGE FOR A NUMBER OF REASONS, RIGHT? THE, UH, PROJECTS CAN EITHER YEAH, SLIP OUT THERE IN SERVICE STATE OR THEY CAN BE CANCELED.

UM, AND SO THOSE, THOSE NUMBERS CAN AND WILL CONTINUE TO FLUCTUATE FOR A VARIETY OF REASONS.

TEAM HAS DONE FOR THE GENER GENERATION INTERCONNECTION QUEUE IN THE PAST THAT HELPS TO PUT SOME, SOME CONTEXT AROUND THAT.

AND THAT, THAT MAKES SENSE.

I MEAN, WE, WE, WE ALL KNOW THAT IT'S A, IT'S A MOVING TARGET, AND SO WE EXPECT THERE TO BE THAT KIND OF, UH, YOU KNOW, ADJUSTMENT AS, AS PROJECTS MOVE FORWARD AND GET, GET CLOSER TO THE ACTUAL FACTS ON THE GROUND FOR ENERGIZATION IT.

UH, IT WOULD BE HELPFUL IF, UM, IF YOU'RE ABLE TO AUGMENT WITH ANY, UM, YOU KNOW, TRENDS ALONG THOSE LINES.

LIKE I KNOW THAT THERE'S BEEN SOME ANALYSIS THAT, UM, THE ERCOT

[01:10:01]

UM, AND SINCE, YOU KNOW, THIS IS THE, THIS IS REALLY THE MOST INFORMATION THAT MARKET PARTICIPANTS HAVE ABOUT THE LARGE LOADS COMING IN, I, I, I THINK THAT MIGHT BE, UM, VERY HELPFUL AND APPRECIATED.

JUST, JUST SO FOLKS CAN GET A, MAYBE A, A, A SENSE OF THE TREND.

YEAH, APPRECIATE IT NED.

AND I THINK THERE'S BEEN A LOT OF ENERGY FOCUS ON THE TEAM AT THE MOMENT, UM, WORKING ON NPR UNTIL 34 AND ONE 15.

SO, UM, I THINK, YOU KNOW, AFTER THAT YOU CAN CERTAINLY EXPECT TO SEE, UH, EVEN INCREASED REPORTING.

SO THANK YOU.

UM, HI.

UM, THIS IS FROM CONSERVATION.

UH, I HAVE A QUESTION JUST ABOUT THE PROCESS.

UM, WHAT TRIGGERS ERCOT TO INCLUDE A LARGE LOAD, UH, IN, UH, UH, TO END THAT PROJECT IN THIS QUEUE? YEAH, SURE THING.

SO THAT REPRESENTS A PROJECT THAT HAS BEEN SUBMITTED TO THE ERCOT LARGE LOAD TEAM.

AND SO, UH, YOU KNOW, FOR, FOR A LARGE LOAD OWNER WHO'S LOOKING TO INTERCONNECT A LOAD, IF YOU HAVE SUBMITTED A PROJECT, UH, TO YOUR TSP, AND THAT PROJECT, UM, HAS BEEN OR IS UNDER REVIEW, UM, BY OUR TEAM SO THAT THE, THE TSP IN QUESTION HAS, UM, EITHER SUBMITTED STUDIES OR IN SOME CASES JUST NOTIFIED US THAT, UM, THEY HAVE THAT, THAT PROJECT KIND OF UNDERWAY.

UM, YOU KNOW, THERE'S THAT NO STUDY SUBMITTED CATEGORY, RIGHT? WHERE WE DON'T NECESSARILY HAVE A STUDY REPORT, UM, BUT WE DO HAVE INSIGHT INTO THE, UH, THE, THE LOAD COMING IN.

UM, SO, UH, THE LONG STORY SHORT IS THE, THE TSPS, UH, ARE SUBMITTING, UH, THOSE, UH, STUDY OR LARGE LOAD REQUESTS.

SO E EXACTLY WHAT KIND OF, DO YOU HAVE SOME KIND OF OFFICIAL DOCUMENTATION, UM, THAT OKAY, IF THE KSP SUPPLEMENTS, UH, THIS IN THIS FORM OR IN THIS REPORT OR WHATEVER, YOU KNOW, REQUEST, THEN THAT MEANS, YOU KNOW, THAT TRIGGERS TO INCLUDE THAT IN THIS QUEUE, YOU KNOW, BECAUSE WE KNOW THAT KSPS, THEY ALSO PROVIDE OFFICER LETTERS TO , RIGHT? TO INFORM YOU THAT WE HAVE SOME NON-CONTRACT UHS P LOAD COMING IN.

SO I JUST WONDER IF ANY OF THOSE MIGHT, UM, HAVE MET INTO THIS QUEUE.

UM, YEAH.

A AGAIN, THERE IS A FORMAL, UH, LARGE LOAD INTERCONNECTION PROCESS THAT IS INSTIGATED BY THE, UH, THE TSP.

UM, OKAY, THANKS.

I JUST WONDER IF THERE'S ANY, I JUST WONDER EXACTLY WHAT TRIGGERS ER A TO INCLUDE THE, THE, THAT LARGE LOAD REQUEST IN THIS QUEUE.

UH, BUT IT'S OKAY, YOU KNOW, IF, UM, MAYBE I CAN, UH, YOU KNOW, UM, TOUCH BASE WITH YOU LATER, UH, AGAIN, MORE SPECIFICS.

YEAH, SURE THING.

AND AGAIN, I'LL JUST REITERATE THAT, YOU KNOW, WHAT, WHAT TRIGGERS THIS, UH, INTERCONNECTION REQUEST IS THAT THE TSP, YOU KNOW, FORMALLY REACHING OUT AND ASKING, UM, ERCOT TO, TO REVIEW AND APPROVE A LARGELY INTERCONNECTION REQUEST.

AND JULIE, I GOT ONE MORE ON THIS SLIDE.

CAN YOU REMIND US WHAT ERCOT DOES BETWEEN THE PLANNING STUDIES APPROVED AND APPROVED TO ENERGIZE PHASE? WHAT DO YOU LOOK FOR IN REVIEW TO APPROVE THE ENERGIZATION? UM, SO THERE'S A VARIETY OF, UM, ITEMS THAT WE, WE LOOK AT WITH AN APPROVAL TO ENERGIZE A CHECKLIST, UM, WITH AIRCO OPERATIONS.

UM, YEAH, WITHOUT GETTING TOO MUCH MORE INTO DETAIL, UM, YOU KNOW, ONCE, ONCE WE RECEIVE AUTHORIZATION OR, OR NOT AUTHORIZATION, RATHER A NOTIFICATION FROM THE TSP, UM, YOU KNOW, THAT THEY'RE EXPECTING TO SEE A LARGE LOAD, UH, COME ONLINE, UM, ONCE THE STUDIES HAVE BEEN APPROVED, WE KIND OF WALK THEM THROUGH, UH, WHAT ARE THE NECESSARY STEPS WITH OUR OPERATIONS TEAM.

SO WE TRY TO SERVE AS THE BRIDGE WITH THAT GROUP.

SO AGAIN, ERCOT APPROVALS, UM, SINCE JANUARY, 2024, THE TOTAL LOAD PLANNING STUDY IS APPROVED, HAVE INCREASED SLIGHTLY IN JANUARY, 2025, AFTER FLUCTUATING IN 2024.

AND ALSO THANKS FOR ADDING THE OBSERVED ENERGIZED CATEGORY HERE.

ALRIGHT, I THINK WE CAN CONTINUE.

[01:15:03]

THIS PAST YEAR HAS SEEN 1800 MEGAWATTS OF LOAD APPROVED TO ENERGIZE NEXT SLIDE.

AND OF THE CURRENT LOAD APPROVED TO ENERGIZE, ABOUT HALF OF THAT RESIDES IN LOAD ZONE WEST, AND APPROXIMATELY THE OTHER HALF 3,251 MEGAWATTS RESIDES IN THE OTHER LOAD ZONES.

5,231 MEGAWATTS CONSISTS OF STANDALONE PROJECTS AND 1075 MEGAWATTS CONSISTS OF CO-LOCATED PROJECTS.

OF THE 6,306 MEGAWATTS THAT HAVE RECEIVED APPROVAL TO ENERGIZE ERCOT HAS OBSERVED A NON SIMULTANEOUS PEAK CONSUMPTION OF 3,211 MEGAWATTS IN JANUARY, 2025 WITH AN ALL 10 PEAK OF 3,697 MEGAWATTS THAT OCCURRED IN NOVEMBER, 2024.

AND AGAIN, THIS IS CALCULATED AS THE SUM OF THE MAXIMUM VALUE FOR EACH INDIVIDUAL, REGARDLESS OF WHEN THAT MAXIMUM OCCURRED IN THAT MONTH.

FOR THE SIMULTANEOUS PEAK CONSUMPTION, WE'VE OBSERVED A SIMULTANEOUS PEAK OF 3,168 MEGAWATTS IN JANUARY WITH AN ALL TIME PEAK OF 3,208 MEGAWATTS THAT OCCURRED IN DECEMBER, 2024.

THIS IS THE MAXIMUM VALUE OF THE SUM OF ALL THE INDIVIDUAL LOADS, AND THIS IS THE MAXIMUM AMOUNT OF LARGE LOAD THAT ERCOT HAS HAD TO SERVE A SINGLE POINT IN TIME.

SO THIS IS THAT OTHER, UH, SLIDE WITH THE SLIGHT UPDATE.

SO AGAIN, JUST SHOWING THE SIMULTANEOUS PEAK, UM, FOR THE MONTH OF JANUARY AS WELL AS THE ALL TIME PEAK IN DECEMBER.

AND KINDA JUST REITERATING, REITERATING THE QUESTION FROM THE, UM, INTERCONNECTION Q CHART, WE WOULD EXPECT THE OBSERVED NON NON SIMULTANEOUS PEAK FOR EACH CUSTOMER TO MATCH THE OBSERVED ENERGIZATION NUMBER IN THAT CHART.

SO I WOULD JUST WOULD LOOK TO UNDERSTAND THE DIFFERENCE IF THERE IS ONE TO RECONCILE THE MAIN QUESTION THOUGH ON THIS CHART, WITH THE OBSERVED NON NON SIMULTANEOUS PEAK DECREASING AT TIMES, THAT SHOULD WE ASSUME THEN THERE IS A DECENT CHUNK OF THIS THAT IS A LARGE FLEXIBLE LOAD, UM, AND THAT IS CAN BRING LOAD OFF IN RESPONSE TO PRICE SO THAT THE PEAK IS DIFFERENT.

OR ARE WE ACTUALLY SEEING SOME LARGE LOADS THAT ARE NOT FLEXIBLE THAT CAME ONLINE IN NOVEMBER THAT ARE BRINGING, YOU KNOW, THEIR SITES DOWN FOR SOME REASON OR ANOTHER, JUST LOOKING TO UNDERSTAND WHY THE NON SIMULTANEOUS PEAK DECREASED.

YEAH, BILL, AND, AND THAT WAS A SURPRISE TO US TOO.

UM, WITHOUT REVEALING INDIVIDUAL CUSTOMER INFORMATION, I'M AFRAID, I, I REALLY CAN'T SAY, YOU KNOW, KIND OF WHAT'S GOING ON THERE.

UM, I CAN TELL YOU THIS IS SOMETHING WE'RE TRACKING INTERNALLY.

OKAY, THAT'S GREAT.

ONE THING THAT WOULD BE SUPER HELPFUL, WHICH I'VE ASKED BEFORE, AND I DON'T KNOW IF IT'S DIFFICULT TO DO, IS TO SHOW US THE BREAKDOWN OF WHAT LOADS ARE NON FLEXIBLE AND WHAT LOADS ARE CATEGORIZED AS FLEXIBLE THAT MIGHT HELP US UNDERSTAND WHAT'S HAPPENING.

I CAN TAKE THAT INTERNALLY.

THANKS, DALE.

I THINK YOU CAN KEEP GOING.

ACTUALLY, THAT'S THE END OF THE PRESENTATION.

SO , I SEE A QUESTION FROM CHRIS.

THANKS, JULIE.

ONE QUESTION ON THE LOAD ZONE NOTE, WE STILL CAN HAVE WE GOT TO THE POINT THAT WE CAN BREAK IT OUT BY OTHER LOAD ZONES IN JUST WEST YET? UH, I THINK IT'S A DIFFERENT SLIDE.

UM, LIKE SLIDE SIX PERHAPS? YEAH.

REFERRING TO YES, THAT ONE.

IT, IT'D JUST BE HELPFUL IF WE COULD BREAK OUT THE OTHER INTO THE, YOU KNOW, HOUSTON, NORTH AND SOUTH.

[01:20:01]

YEAH, SURE THING.

I'LL, I'LL SEE IF WE CAN, UH, CAN SHOW THAT IN THE NEXT TAC UPDATE.

UH, JUST A QUICK QUESTION ON THE LOW LARGELY LOAD INTERCONNECTION STUDIES, UM, ARE THEY GOING TO BE POSTED WITH THE SAME TRANSPARENCY OF GEN INTERCONNECTION STUDIES? SORT OF SAME GENERAL IDEA OF WHO CAN SEE THEM AND LEVEL OF REDACTION? SO I THINK YOU'RE TALKING ABOUT RIO, UM, IS THAT CORRECT? YES.

SO I, I THINK THERE, THERE MAY BE A, A POINT IN TIME THAT THOSE ARE MIGRATED INTO THE SAME SYSTEM, UM, BECAUSE NPRR UNTIL 34 AND PAPER ONE 15 HAVE NOT PASSED YET.

UM, WE'RE, WE'RE STILL WORKING TO MOVE FROM THE INTERIM PROCESS TO WHAT WOULD BE THE KIND OF FULL-TIME PERMANENT PROCESS, IF YOU WILL.

TOTALLY.

THAT'S THE DIRECTION WE'RE HEADING.

SO THEY'LL LIKELY END UP IN THE SAME SYSTEM IN THE SAME WAY ONCE THEY PASS AND ARE FINISHED.

THAT'S WHAT WE'RE HOPING FOR .

UM, JULIE, ON THE LOADS THAT ARE APPROVED TO ENERGIZE AND APOL, APOLOGIES IF THIS WAS ANSWERED EARLIER, I JOINED LATE, BUT, UM, THAT HAVE NOT YET INTERCONNECTED OR HAVE FULLY ENERGIZED, IS THERE SOME PROCESS THAT CHECKS ON WHEN THEY WILL OFFICIALLY ENERGIZED OR CONNECT? OR DID THEY JUST CONTINUOUSLY BE IN THE PENDING OBSERVE, UM, APPROVED TO ENERGIZE BUT NOT OPERATIONAL CATEGORY? I'M JUST CURIOUS IF THERE'S ANY INSIGHT THERE YOU CAN PROVIDE.

YEAH, NO, AND APPRECIATE THE QUESTION ANDY.

UH, AT THIS POINT IN TIME, UM, THE LARGE LIDS THAT HAVE, SORRY, I, I WANNA MAKE SURE I'M UNDERSTANDING THE QUESTION OR ARE YOU ASKING SORT OF WHAT'S OUR, OUR TRACKING TO UNDERSTAND WHEN THOSE REMAINING MEGAWATTS ARE GONNA COME ONLINE? IS THAT KIND OF THE QUESTION? THAT'S CORRECT, YEAH.

I MEAN, THEY'VE BEEN APPROVED, BUT THEY'RE NOT OPERATIONAL.

LIKE, IT, IT, CAN THEY REMAIN THERE FOR A YEAR OR TWO YEARS? LIKE, OR IS THERE SOME POINT WHERE, YOU KNOW, THEY THEY NEED TO ACTUALLY TRANSITION TO THE ENERGIZATION PROCESS? YEAH.

UM, I, I, WE WORK PRETTY CLOSELY, UM, WITH, WITH CSPS ON THIS, AND AGAIN, KIND OF TO MY POINT ABOUT RAMP SCHEDULES, UM, THIS IS SOMETHING THAT, UM, WE DO CHECK IN WITH WITH, UH, THEIR OPERATIONS TEAMS AND, UM, TRY, TRY TO GET INSIGHT INTO, UH, KIND OF WHAT FEATURE BEHAVIOR WE CAN EXPECT FROM THESE LOADS AS WELL AS, YOU KNOW, UH, MONITORING THEIR CURRENT BEHAVIOR.

BUT THERE'S NOTHING THAT PREVENTS, LET'S JUST SAY A LARGE LOAD THAT HAS THE AMBITION OF MAYBE HAVING TWO GIGAWATTS AT SOME FUTURE TIME THAT OBVIOUSLY THEY WANNA GET THERE, BUT YOU KNOW, WHETHER IT TAKES 'EM ONE YEAR OR FIVE YEARS, AS LONG AS THEY'RE APPROVED TO ENERGIZE THAT RAMP SCHEDULE, COULD GIVE THEM THAT LATITUDE OVER A FIVE YEAR PERIOD TO GET THERE.

I THINK IF, IF THEIR STUDY WAS SORT OF APPROVED WITH THE RAMP SCHEDULE, UM, THAT, YOU KNOW, CLEARLY COMMUNICATED, YOU KNOW, FOR EXAMPLE, WE'RE NOT COMING IN UNTIL 2030, UM, THEN, THEN CERTAINLY I, I THINK THE CONCERN MIGHT BE, YOU KNOW, OUR LARGE LOADS SORT OF HOLDING, UH, SPACE IN THE QUEUE, UM, AND SORT OF INDEFINITELY NEVER, UM, RAMPING.

AND, AND I THINK AT THAT POINT, YOU KNOW THAT THAT'S A CONVERSATION BETWEEN US AND THE TSP.

AND, AND THAT CONVERSATION COULD BE MAYBE REALLOCATION IF THERE IS NO INTENT OR WHAT, WHAT WOULD THAT LOOK LIKE? YEAH, I DON'T, I DON'T WANNA COMMENT ON SPECIFICS ON THIS, ANDY, JUST BECAUSE IT WOULD, IT WOULD VERY MUCH DEPEND ON THE PROJECT.

APPRECIATE THE INSIGHT.

ANY OTHER FURTHER QUESTIONS FOR JULIE? ALL RIGHT, THANKS EVERYBODY FOR ACCOMMODATING THE CHANGING SCHEDULE.

UM, THE REVIEW OF REVISION REQUEST SUMMARY AND OUR CUT MARKET IMPACT STATEMENTS AND OPINIONS.

WE ARE BACK UP TO THE MEETING THAT, NO, THE,

[10. Review of Revision Request Summary/ERCOT Market Impact Statement/Opinions]

AND I THINK WE HAD A LEFT MINUTE CHANGE IN OUR CUT OPINIONS.

SO I'M GOING TO LET YOU AND I THINK MATT,

[01:25:01]

TAKE THIS ONE.

YOU CAN HEAR ME OKAY.

THIS IS ANN.

WE CAN HEAR YOU ALL.

UM, SO WE HAVE 19 REVISION REQUESTS ON THE TECH AGENDA THIS MONTH.

UM, I'LL GO AHEAD AND GO THROUGH THE REASON FOR REVISIONS AND IMPACTS AND THEN WE'LL TALK ABOUT NPR 1253.

UM, BUT RIGHT NOW WE HAVE 13 THAT FALL IN THAT GENERAL SYSTEM PROCESS IMPROVEMENT CATEGORY TWO THAT ARE IN REGULATORY, ONE THAT IS THE ERCOT BOARD, PEC DIRECTIVE, UM, TWO THAT HIT THE STRATEGIC PLAN, OBJECTIVE ONE, AND THEN ONE THAT HITS STRATEGIC PLAN OBJECTIVE TWO.

UM, FOR THE IMPACTS PG ONE 17, IT DOES HAVE A TWO FDE IMPACT, SO IT HAS A 360 TO FOUR 40 K ANNUAL RECURRING O AND M IMPACT.

AND THEN 1257 IS LESS THAN 10 KO AND MSCR 8 28 IS 50 TO 70 K.

AND THEN NPR 1253, THIS, UM, WE'LL DISCUSS THIS IN A LITTLE BIT, BUT AS IT WAS PRESENTED TO PRS, IT HAS A 50 TO 70 K IMPACT.

UM, ERCOT DOES SUPPORT ALL OF THE REVISION REQUESTS THAT ARE HERE ATTAC AND HAS PROVIDED POSITIVE MARKET IMPACT STATEMENTS FOR ALL OF THEM.

AT THE TIME THIS WAS PUBLISHED, WE DID NOT, UH, SUPPORT 1253 AS RECOMMENDED BY PRS, BUT MY UNDERSTANDING IS THIS HAS, UH, CHANGED A LITTLE BIT AND WE'LL DISCUSS THIS WHEN WE GET TO THE PRS REPORT.

AND THEN THE IMM HAS NO OPINION ON, UH, ANY REVISION REQUESTS EXCEPT FOR 1261.

THEY ARE IN SUPPORT OF THAT ONE AS WELL AS 1190, BUT 1190 IS GONNA REMAIN ON THE TABLE THIS MONTH.

AND THEN THE CREDIT, UH, FINANCE SUBGROUP HAS REVIEWED ALL OF THE NPR R AND HAVE FOUND NO CREDIT IMPLICATIONS.

SO CAITLYN, I THINK OUR PLAN IS TO TAKE UP 1253 UNDER THE PRS REPORT AND NOT GET IT INTO IT HERE.

UM, BUT WE WILL BRING UP OUR OPINIONS, MARKET IMPACT STATEMENTS AND IMPACTS WHEN WE TALK ABOUT IT UNDER PRS.

OKAY? YEP, THAT'S RIGHT.

I THINK WE WANTED TO SAVE THE SUBSTATIVE DISCUSSION FOR THE PRS REPORT.

DID ANYBODY FROM THE IMM WANT TO SHARE IMM OPINIONS HERE? I SEE THEY'RE ON HERE, BUT THE, YEAH, THIS IS JEFF.

ANYTHING ELSE TO ADD? YEP.

YEAH, NO, I DON'T, I DON'T HAVE ANYTHING TO ADD, BUT THANK YOU FOR THE OPPORTUNITY.

THANK.

THANKS JEFF.

ALRIGHT, ANY QUESTIONS OR COMMENTS ON THAT SEGMENT? OKAY, SO WITH THAT WE CAN MOVE TO PRF.

[11. PRS Report (Vote)]

DIANA, I THINK WE HAVE A LOT OF REVISION REQUESTS TODAY.

UM, THEY'RE ALL UNOPPOSED, BUT WE DO HAVE 1253.

SO WHY DON'T WE, UM, DO THIS FIRST SLIDE AND SEE IF WE CAN THROW THESE ON THE COMBO BALLOT AND THEN KEEP GOING.

DIANE, ARE YOU WITH US? CAITLIN, CAN YOU HEAR ME OKAY? YEAH, WE CAN HEAR YOU NOW.

CAITLIN, CAN YOU HEAR ME? I CAN HEAR YOU.

CAN YOU HEAR ME? AUDIO PROBLEM.

OKAY, CAITLIN, CAN YOU HEAR ME? WE CAN HEAR YOU.

IMPACT 1250, EXCUSE ME, 1258 IS FORWARDED TO ATTACK WITH THE NOVEMBER 14TH PRS REPORT IN THE OCTOBER 29TH, IA 1259 COMES TOT WITH A DECEMBER 12TH PRS REPORT AND THE OCTOBER 30TH IMPACT ANALYSIS 1260 COMES TO TALK WITH A DECEMBER 12TH PRS REPORT AND THE NOVEMBER 6TH IMPACT ANALYSIS.

THANK YOU, BRIAN.

FOR SOME REASON I CAN'T HEAR YOU GUYS, SO THIS IS GONNA BE INTERESTING.

UM, SO ALL OF THE REVISION REQUESTS THAT ARE UP ON THE SCREEN WERE UNOPPOSED WITH NO IMPACT.

1243 COMES TO TAC WITH THE NOVEMBER 14TH, 2024 PRS REPORT AND THE JULY 24TH IA, UH, 1250 COMES TO T WITH THE DECEMBER 12TH PRS REPORT, OR EXCUSE ME, THE NOVEMBER 14TH PRS REPORT AND THE AUGUST 27TH IMPACT ANALYSIS, 1251 COMES TO TAC WITH THE DECEMBER 12TH PRS REPORT AND THE AUGUST 28TH IA 1252 WOULD COME TO TAC WITH THE NOVEMBER 14TH PRS REPORT.

IN THE AUGUST 28TH

[01:30:01]

AND THEN FINALLY, 1261 COMES TO TALK WITH THE DECEMBER 12TH, 2024 PRS REPORT.

AND THEN NOVEMBER 13TH IA ALL NO IMPACT.

OKAY, CAN YOU HEAR US NOW? ALL RIGHT, WHY DON'T WE PAUSE HERE, UM, AND SEE IF EVERYBODY IS COMFORTABLE PUTTING THESE EIGHT REVISION REQUESTS ON THE COMBO BALLOT.

ALL RIGHT, GO, GO AHEAD NED.

COMMENT ON 1250.

THANKS, CAITLIN.

UM, SO THIS IS ONE THAT HAD BEEN KEEPING AN EYE ON AND HAD WANTED TO GET COMMENTS IN ON EARLIER, AND IT JUST DIDN'T, DIDN'T, UH, RISE TO THE, UH, DIDN'T, CAITLIN, CAN YOU HEAR ME? SORRY, GO AHEAD, DIANA, WELCOME TO WEBEX, PRESS ONE TO BE CONNECTED TO YOUR MEETING.

I THINK WE MAY HAVE, YEAH, DIANA CAN'T HEAR.

UH, CALY, I CAN HEAR YOU NOW.

YOU CAN HEAR US NOW.

ALL RIGHT, PERFECT.

SO WE, WE PAUSED AT THE END OF YOUR SLIDE HERE.

UM, WE'RE GONNA SEE IF WE CAN PUT DUP ON THE, THE COMBO BALLOT, BUT NED HAS A QUESTION ON NPR 1250.

SO NED, WHY NOT, WHY DON'T YOU START YOUR QUESTION OVER? SORRY.

YEAH, SORRY ABOUT THAT.

I WA I WAS GONNA ASK IF I COULD ABSTAIN ON 1250.

UM, I, YOU KNOW, THERE ARE A COUPLE THINGS IN THERE THAT HAVE, I I THINK OUR, UM, I, I HAVE SOME CONCERNS ABOUT, BUT I KNOW THERE'S OTHER REVISION REQUESTS THAT ARE COMING ALONG THAT'LL, UM, PROBABLY ADDRESS IT.

THE TWO, JUST TO BE, UH, TRANSPARENT, THE TWO CONCERNS I HAVE ARE ONE, UM, THE RETENTION OF COMPLIANCE PREMIUMS IN THERE WITHOUT THE STATUTORY FRAMEWORK, I DON'T BELIEVE THAT THERE'S ANY, UH, ANY NEED TO CONTINUE TO, TO, UM, PRODUCE THOSE, UM, OR REALLY ANY USE FOR THEM AFTER THE 2024 COMPLIANCE PERIOD.

AND, UM, THE OTHER IS THAT THE REVISION REQUEST RETAINS A THREE COMPLIANCE PERIOD BANKING PROVISION, WHICH WITHOUT THE STATUTORY FRAMEWORK, UM, WE THINK IS, IS UNNECESSARY AND, AND, AND NOT, NOT JUSTIFIED.

BUT I THINK THOSE ARE, THOSE ARE ISSUES THAT ARE GONNA BE ADDRESSED IN ANOTHER NPR.

SO I DON'T WANNA HOLD THIS UP, I JUST WANTED TO STATE THAT THOSE CONCERNS AND THEN, UM, AS TO ABSTAIN ON THAT PARTICULAR.

ANY OTHER QUESTIONS OR COMMENTS ON 1250 OR ANYTHING ON THIS SLIDE? HEY, CAITLIN.

CAITLYN ON THIS IS ANN ON 1250.

UM, THIS WAS LAID OUT IN A COUPLE SETS OF COMMENTS.

ANN DIS DISCUSSED A PRS, BUT WE NEED TO DO A RECOMMENDED EFFECTIVE DATE OF SEPTEMBER 1ST, 2025.

OKAY? YEP.

SO LET US FIRST SEE IF WE CAN PUT THE SEVEN ON THE SLIDE, THE SLIDE 1250 ON THE COMBO BALLOT.

SO WE WOULD BE LOOKING TO RECOMMEND APPROVAL OF 1243 AS RECOMMENDED BY PRS IN THE 1212 PRS REPORT, LOOKING TO RECOMMEND APPROVAL OF 1251 AS RECOMMENDED BY PRS IN THE ONE 15 PRS REPORT.

RECOMMEND APPROVAL OF 1259 AS RECOMMENDED BY PRS IN THE ONE 15 PRS REPORT.

RECOMMEND APPROVAL OF 1260 AS RECOMMENDED BY PRS IN THE ONE 15 PRS REPORT AND RECOMMENDED APPROVAL OF 1261 AS RECOMMENDED BY DRS AND THE ONE 15 PRS REPORT.

ANYBODY HAVE A PROBLEM WITH PUTTING ANY OF THOSE ON THE COMBO BALLOT? OKAY, I DON'T SEE ANY.

COREY, DID I GET ALL THAT RIGHT?

[01:35:03]

? YEP, YOU GOT IT.

NOW, YOU KNOW, I'LL STATE FOR THE RECORD, I TRIED TO GET DECEMBER PRS CANCELED AND, AND CORY FORWARDED MY EFFORT THAT WE HAVE DECEMBER AND JANUARY PRS, UH, NPRS TWO APPROVE.

ALL RIGHT, SO LET'S ADD THOSE SEVEN ON THE COMBO BALLOT.

AND THEN, UM, LET'S BRING UP, UH, A BALLOT FOR NPR 1250, NOTING THAT THE EFFECTIVE DATE WILL BE SEPTEMBER 1ST, 2025.

ALL RIGHT, TAKE IT AWAY, CORY.

WELL, FIRST WE WOULD NEED, UH, BRAVE SOUL TO MAKE A MOTION AND HOPEFULLY GET A SECOND FOR THE MOTION ON SCREEN, WHICH AS YOU LAID OUT, IS AS SENT BY PRS WITH THE EFFECTIVE DATE THAT ANN MENTIONED.

THAT'S TRUE, ISN'T IT? I FORGOT IN THE, THE TWO PRS THAT HAPPENED IN THE INTERIM, I FORGOT THAT.

WE ALSO NEED MOTIONS IN SECOND.

UM, I SEE A MOTION FROM BILL BARNES AND A SECOND FROM BRIAN STAN.

THAT WORKS FOR ME.

SO THEN WE WILL BEGIN UP WITH OUR CONSUMERS.

WITH ERIC? YES.

AND THEN ERIC, AVA? YES.

AND GARRETT? YES, SIR.

THANK YOU, SIR.

ERIC SCHUBERT? YES, THANK YOU.

ONTO OUR CO-OPS LAKE.

YES, THANK YOU.

AND, UH, LUCAS, FOR JOHN? YES, THANK YOU KYLE.

KYLE MINNICK YOU WITH US? I CAN TAKE YOU IN CHAT IF YOU'RE HAVING AUDIO ISSUES.

OH, GOT YOU.

IN CHAT.

THANK YOU KYLE.

UH, JOE, DAN FOR MIKE? YES, PLEASE.

THANKS, SIR.

ON TO OUR INDEPENDENT GENERATORS, BOB HELTON.

SO DID YOU GET ME? YES, SIR.

THANK YOU NICK ABSTAIN AND THANK YOU FOR HUMORING ME.

ALWAYS HAPPY TO ONTO OUR IPM.

YES, THANK YOU, REMI.

UH, IAN HALEY, NOT SURE IF HE'S JOINED THE PARTY YET.

DOUBLE CHECK ON OUR LIST.

NOPE, NOT YET.

ON I REP BILL BARNES.

THANK YOU, SIR.

JENNIFER.

JENNIFER, I GOT YOU IN CHAT.

AND OR IOUS, DAVID? YES.

THANK YOU SO MUCH, ROB, FOR KEITH? YES, THANKS CORY.

THANKS SO MUCH.

ONTO OUR MUNIS.

RUSSELL.

YES, THANK YOU, COREY.

THANK YOU JOSE, JUDGE.

THANK YOU, DAVID.

YES, THANK YOU, COREY.

AND ALICIA? YES, THANK YOU.

MOTION AND CARRIES ON ABSTENTION.

OKAY, BACK TO PRESENTATION.

I THINK THAT WAS AN AWESOME FIRST BALLOT OF 2025.

ALL RIGHT, DIANA, WHY DON'T WE DO THE SLIDE.

I THINK WE'LL BE ABLE TO TAKE, UM, 1257 AND IF YOU ARE 8 28 BEFORE WE GET TO 1253.

BUT WHY DON'T YOU GO AHEAD AND GO THROUGH THE SLIDE.

THIS WAS, OH, I SEE THE COMMENT FROM AUSTIN.

SO WE HAVE, UH, 1253.

[01:40:01]

I DON'T KNOW WHAT HIS COMMENT IS ON YEAH, SORRY.

I'LL, AND MAYBE SOMEBODY SAID SOMETHING IN'T HERE, BUT I, SORRY, I DIDN'T KNOW.

NO, YOU'RE FINE.

OH, GO AHEAD, AUSTIN.

UH, SORRY.

UM, I, MAYBE I MISSED A COMMENT FROM SOMEBODY, BUT I THINK NED IS CORRECT.

I DO THINK WE NEED ANOTHER, UH, CLEANUP NPR COMING THROUGH FOR THE, UH, RPS, UH, TERMINATION.

SO THERE WILL BE, THERE WILL BE AN OPPORTUNITY TO, TO GET SOME MORE CHANGES IN.

UM, OKAY.

THAT'S HOW I FEEL AT THIS TIME, SO THANKS.

SO THAT'S ON 1250.

IS THERE, THERE ANY OTHER, AND I SHOULD HAVE ASKED AFTER THAT, THAT BALLOT.

UM, ANY OTHER QUESTIONS OR COMMENT ON 1250? ALL RIGHT, NOW, NOW YOU CAN MOVE ON, DIANA.

SORRY ABOUT THAT.

NO, IT'S OKAY.

SO, UH, 1257, THIS WAS VOTED UNANIMOUSLY, UH, BOARDED THE ATTACK WITH THE DECEMBER 12TH, UH, PRS REPORT AND THE IA THAT WE SEE THERE FROM OCTOBER 21ST WITH A PRIORITY AND RATE, UH, EXCUSE ME, UH, I HAVE LESS THAN 10 WITH A PRIORITY AND RATE NOT NEEDED.

AND THEN SYSTEM CHANGE REQUESTS, WE DID HAVE ONE OF THOSE THIS TIME.

UM, AND THAT IS COMING TO US WITH A COST BETWEEN 50 AND 70 WITH A SUGGESTED PRIORITY OF 2025 IN THE RANK OF 45 50.

BOTH OF THESE WERE UNANIMOUSLY ENDORSED.

SORRY, WE HAD, I HAD TO GET IN A QUICK ARGUMENT ABOUT THE WAY, UH, KEVIN DRESSED THE CHILD TO TAKE HER OUT.

SO WHY DON'T WE SEE NPRR 1257 AND FPR 8 28? UM, CAN WE PUT THOSE TWO ON THE COMBO BALLOT? SO IT WOULD BE RECOMMENDED APPROVAL OF 1257 AS RECOMMENDED BY PRS IN THE ONE 15 PRS REPORT AND RECOMMENDED APPROVAL AS SCR 8 28 AS RECOMMENDED BY PRS IN THE ONE 15 PRS REPORT COMBO BALLOT.

UM, SO WE CAN GO TO 1253.

COREY LOOKED AT ADD 1257 AND 8 28 TO THE COMBO BALLOT.

AND THEN ON MPR 1253, DIANA, DID YOU HAVE MORE COMMENTARY ABOUT THAT, OR SHOULD WE START WITH ERCOT ON THAT? WELL, JUST WANTED TO RAISE, SO IN DECEMBER, OR EXCUSE ME, IN JANUARY, WE HAD A DISCUSSION ON THE ABILITY OF ERCOT TO BE ABLE TO INCORPORATE THE REQUESTED CHANGES OF 1253.

THERE WAS A REQUEST INITIALLY BEFORE SUMMER, AND THERE WAS CONVERSATION FROM ERCOT ON, UM, THAT THIS WOULD NOT BE A NEEDED CHANGE AFTER RTC GOES LIVE.

UM, AND THE GOAL FOR THE SUMMER WOULD NOT BE ABLE TO BE IMPLEMENTED.

AND SO THERE WERE SOME ERCOT COMMENTS THAT WERE FILED, BUT I DON'T BELIEVE THAT THAT WOULD'VE EVEN MET THE GOAL FOR THE SUMMER ORIGINAL, UM, REQUEST.

AND SO THERE WAS AN ASK THAT ERCOT TAKE A LOOK AT IT BETWEEN PRF LAST WEEK AND CHECK THIS WEEK TO SEE IF THERE'S ANY MORE INFORMATION THAT PERHAPS ERCOT COULD OFFER.

SO I'LL TURN IT OVER TO YOU, CAITLYN.

AND I BELIEVE I AM JUST TURNING IT OVER TO, UH, TO, TO MATT FROM ERCOT.

AND DIANA, YOU REPRESENTED IT ACCURATELY.

UM, THIS TIME A WEEK AGO, ERCOT HAD IDENTIFIED THE IDEA THAT WE COULD PROVIDE THE ESR CHARGING TELEMETRY NEEDED FOR THAT FOUR CP OFFSET, AND IF THAT'S SOMETHING THAT WE COULD DO AND COULD FILE COMMENTS TO KIND OF BIFURCATE THIS ISSUE INTO A-I-C-C-P ONLY.

UH, WHAT WE DID HAVE IS A, UM, A SOLUTION IDENTIFIED LAST NIGHT.

UM, SO WE HAVEN'T EVEN HAD TIME TO PUT COMMENTS INTO PLACE, BUT IT WOULD NOT NECESSARILY CHANGE THE LANGUAGE THAT PRS APPROVED.

SO ERCOT NOW BELIEVE THAT IT CAN SUPPORT AN ICTP CHANGE AS WELL AS A, UH, AS A REPORT CALL AN API CALL TO OUR SYSTEM TO RETRIEVE THE DATA.

SO IT'S NOT NECESSARILY IN A NEW DASHBOARD, IT IS NOT NECESSARILY IN A STANDALONE REPORT, BUT THERE WILL BE A PUBLIC, API THAT'S AVAILABLE FOR PEOPLE TO HIT, AND OUR IT GROUP IS GONNA PROPOSE THAT SOLUTION OR UNFOLD THAT SOLUTION AT THE TWG MEETING AT

[01:45:01]

THE END OF THE MONTH.

AND SO WE BELIEVE WE HAVE A PUBLIC WORKAROUND ON THAT.

THAT'S ISSUE NUMBER ONE.

UM, SO NUMBER TWO IS THAT IN THAT MANNER, WE DO NOW SUPPORT THE PRS VERSION MOVING FORWARD AS IT IS.

AND IF ANY LANGUAGE TWEAKS ARE NEEDED TO ALIGN WITH THAT, API CALL, WE COULD FILE COMMENTS ON THAT.

UM, AND THEN TROY CAN INTERVENE IF WE NEED TO, WHICH IS, YOU KNOW, RELEASING AN UPDATED IMPACT ANALYSIS, REFLECTING THAT THIS IS O AND M WORK, UM, WITH THE GOAL OF IMPLEMENTING BY 2025, BUT FOR THE SUMMER.

UM, AND THAT IS, I THINK THAT COVERS OUR BASES.

SO I'LL PAUSE FOR ANY QUESTION.

SO NUMBER ONE, APOLOGIES FOR THIS IS LITERALLY AN 11TH HOUR CHANGE OF SOMETHING DISCOVERED TO LEVERAGE DATA THAT IS AVAILABLE IN A PARALLEL API TYPE ENVIRONMENT THAT WE BELIEVE WE CAN LEVERAGE FOR MARKET PARTICIPANTS TO CALL ON THAT DATA AND RETRIEVE IT, RATHER THAN JUST VISUALLY OBSERVING IT ON THE DASHBOARD AND NETT.

SO THAT'S THE UPDATE.

SO MATT, THIS IS DIANA.

A QUICK QUESTION.

SO IS THAT IN LINE WITH THE, THE LANGUAGE THAT WAS ORIGINALLY SUBMITTED OR WOULD THERE IT'S WITH PR APPROVED WITH PS APPROVED.

I SAY THAT I'M OPEN, THE MARKET RULES CORRECTING ME.

I GUESS I'M LOOKING NOW AT THIS, THE PRICE.

DO YOU WANT TO TAKE THE QUEUE OR DO YOU WANT TO HEAR FROM MARKET RULES? WHAT VERSION IS ON THE SCREEN? IS THIS THE PRS REPORT? YEAH, THAT THIS, THIS IS THE LANGUAGE THAT PRS APPROVED.

SO THIS IS THIS, THIS WAS THE POTENTIALLY STICKY WICKET OF THEM ADDING IN LANGUAGE HERE ABOUT E SR CHARGING TO A SENTENCE THAT DESCRIBES BOTH IPPP AND AVAILABLE ON THE WEBSITE.

AND SO THANK PERFECT.

SOME OF THE BACK AND FORTH WE HAD AT PRS WAS WHAT IF WE MOVED THIS LANGUAGE SOMEWHERE TO TAKE OUT A POSTING ON THE WEBSITE, BUT FROM THE 11TH HOUR DISCUSSION THAT I'VE HEARD AT THE 11 AND A HALF HOUR, WAS THAT THE EXISTING PRS LANGUAGE WAS OKAY WITH THE APPROACH YOU JUST DESCRIBED.

THANK YOU FOR REMINDING US OF THE CONSTRUCT TO GET TO THAT POINT.

SO YES, WHEN IT SAYS THE TOTAL ESR CHARGING DOWN BELOW THAT IS ITTP AND POSTING AVAILABLE ON THE WEBSITE VIA API? YES.

NOW WE'LL TAKE QUESTIONS.

THANK YOU, COREY.

I THINK BILL BARNES WAS FIRST.

THANKS MATT.

APPRECIATE YOU GUYS TAKING A, A HARDER LOOK AT THIS.

UH, JUST ASSU, I'M ASSUMING THAT THE API SOLUTION MEANS THE INFORMATION WOULD BE AVAILABLE TO EVERYONE, NOT JUST QUEASY WITH RESOURCES.

THAT IS CORRECT.

SO IT'LL BE THE PUBLIC API.

THIS IS BEING DONE BY NON RTT RESOURCES.

SO THE PEOPLE INVOLVED ARE NOT ON THE REAL TIME CO OPTIMIZATION TEAM.

AND THAT WAS MY SECOND QUESTION.

THIS WON'T DISTRACT OR IMPEDE RTC IN ANY WAY, SOUNDS LIKE.

NO.

SO APPRECIATE, UH, LOOKS LIKE A GOOD SOLUTION HERE.

BE RIGHT.

ERIC'S NEXT.

YEAH, I JUST, UM, I REALLY APPRECIATE Y'ALL DOING, UH, THIS AT OUR REQUEST FOR YOU HOPING TO RESOLVE THIS THING.

THIS IS THE KIND OF ABOVE AND BEYOND WORK THAT WE'VE COME TO EXPECT FROM Y'ALL, SO YOU CONTINUE TO EXCEED EXPECTATIONS.

THANK YOU AGAIN.

UM, AND, UH, I WOULD LIKE TO QUERY TO SEE IF WE CAN GET THIS IN THE COMBO BALLOT.

LET'S TAKE, UH, THE QUESTION FROM MICHAEL JEWEL, UM, AND THEN EVERYBODY THINK ABOUT WHETHER WE CAN PUT THIS ON THE COMBO BELT.

THANK YOU, UH, CAITLIN? YEAH.

UH, THANK YOU CAITLIN.

UM, AND MATT, THANK YOU VERY MUCH FOR, FOR CONTINUING TO THINK ABOUT THIS, UH, ON BEHALF OF PRIORITY POWER.

JUST WANTED TO DOUBLE CHECK.

SO THIS WOULD BE AN ENHANCEMENT OVER THE CURRENT AVAILABILITY THAT, THAT YOU GET TO ON THE ERCOT DASHBOARD BACK IN THE ESR, UM, CHARGING VISUAL, WE'LL NOT CHANGE THE DASHBOARDS THEMSELVES, THAT AS THEY EXIST.

PROBLEM WITH IT GOING ON THE COMBO BALLOT? OKAY.

BUT, SO THIS WOULD BE AN ADDITIONAL WAY OF GETTING TO IT.

[01:50:01]

UM, DIANA, DO YOU WANNA WRAP UP YOUR REPORT? THAT'S ALL WE HAD FOR TACT THIS MORNING.

THANK YOU AGAIN FOR ALL THE HARD WORK ON 1253.

THAT WAS A LOT OF CONVERSATION LAST WEEK, SO WE APPRECIATE EVERYBODY'S PATIENCE AND THE HARD WORK, UM, ON WITH EVERYBODY INCLUDED.

AND, UM, THAT'S ALL WE HAD FOR TECH THIS MORNING.

AND JUST KEEPING WITH THE THEME, IT'S VERY HIP TO BE SQUARE AT PRS, SO THANK YOU SO MUCH.

DELIGHTFUL.

OKAY,

[12. Revision Requests Tabled at TAC]

WE CAN GO TO REVISION REQUEST TABLED AT .

UM, 1190 I BELIEVE CAN STAY TABLED.

I, I THINK IT IS AT, AT WMS, UM, AND WMWG AND I KNOW SOME STAKEHOLDERS ARE WORKING ON IT.

DOES ANYONE WANT TO GIVE AN UPDATE ON THAT? BLAKE, GO AHEAD.

HEY CAITLYN, THIS IS BLAKE.

YES, THIS ITEM IS STILL AT, UH, WMS AND WMWG, UH, AND WE'VE HAD A COMPROMISE SOLUTION PROPOSED, UH, WHICH WOULD IMPOSE A REVIEW AND POTENTIAL MODIFICATION OF PROTOCOL IF EXCESSIVE COSTS WERE INCURRED FOR THE PROPOSED ELIGIBILITY EXPANSION ON HDL OVERRIDE PAYMENTS.

UH, THE OVERALL MESSAGE THUS FAR IS THAT VOCAL PARTIES SEEM TO THINK THIS IS A REASONABLE, UH, COMPROMISE, BUT CONSUMERS HAVE NEEDED SOME ADDITIONAL TIME TO REVIEW THE LANGUAGE.

UH, OVERALL I THINK IT'S A POSITIVE DEVELOPMENT FOR FOR TACK TO COMMUNICATE ON THIS REMAND.

HOWEVER, WE'LL BE PUSHING FOR RESOLUTION AT WMS AND W-M-G-W-M-W-G AS THIS PROPOSAL HAS BEEN ON THE TABLE SINCE, UH, NO NOVEMBER, WITH NO OFFICIAL PUSHBACK OR SUGGESTIONS TO MODIFY.

SO MY SUGGESTION FOR INTERESTED PARTIES IS TO BE PREPARED TO PROVIDE THIS FEEDBACK AT JANUARY 30TH, WMWG, SO WE CAN MAKE SOME PROGRESS.

OKAY, ERIC, GO.

UM, YEAH, SINCE IT CAME UP, WE ARE EVALUATING THE PROPOSAL AND CONSIDERING WHETHER OR NOT TO MAKE A COUNTER PROPOSAL, UM, AND, UM, THAT IS STILL A, A WORK IN PROGRESS.

SO WE APPRECIATES EVERYONE'S PATIENCE ON THIS.

AND UM, I JUST WANNA LET YOU KNOW THIS IS UNDER ACTIVE DISCUSSION AND CONSIDERATION, UM, BY THIS QUADRANT OF THE, THE STAKEHOLDERS.

ALL RIGHT, THANK YOU BOTH.

SO, UM, ANYTHING ELSE ON 1290? WE CAN FOLLOW ALONG AT WMWG? NO.

GROUP 2 64, UM, RELATED TO NPR 1235 ON D-R-S-P-N-C TABLE.

WHILE WE WAIT FOR THAT NPRR AND I THINK WE CAN MOVE

[13. RMS Report]

TO THE RMS REPORT.

DEBBIE, DO YOU HAVE YOUR AUDIO GOOD TO GO AND READY FOR? YES, MA'AM.

CAITLYN.

RMS, UH, AND OUR LAST MEETING, WE DID HAVE SOME VOTING ITEMS. WE ELECTED RMS LEADERSHIP, JOHN SCH AS VICE CHAIR WITH VISTA OPERATIONS AND MYSELF FROM ENCORE AS CHAIR.

WE, UH, ALSO TABLED R-M-G-R-R 180 2.

WE TABLED IT BECAUSE IT HAD NOT BEEN AT PRS AND UM, WE'LL TAKE A LOOK AT IT, UH, NEXT MEETING AND IT WILL STAY THERE UNTIL SOMETHING'S DONE ON THAT NPRR.

ALL RIGHT, WE SUNSETTED TWO TASK FORCE.

[01:55:04]

WE SUNSETTED THE LUBBOCK RETAIL INTEGRATION TASK FORCE.

AND THE REASON IS THAT THE TASKFORCE WORK ACCORDING TO THE SCOPE, HAS BEEN FINISHED.

LPNL IS IN RETAIL COMPETITION.

WE'VE GOT REALLY GOOD STRONG SWITCHING THERE.

AND THE STABILIZATION STATUS, THERE ARE SOME ISSUES THAT REMAIN, THEY'RE RELATED TO BILLING AND USAGE.

WE THINK THOSE WILL BE RESOLVED, UH, VERY SOON.

WE'VE GOT SOME UPDATES THAT WILL BE PROVIDED AT RMS MEETINGS AND THOSE ARE GONNA BE LED, UM, BY LUBBOCK POWER AND LIGHT.

WE'VE GOT WEEKLY CALLS, THE COMMUNICATION ISSUES, WE'RE GONNA LOOK AT SOME RESOLUTION.

WE'RE TRACKING THE ISSUES AND THE PROGRESS AND SOMETIMES THERE'S A LOT OF MOVEMENTS ON THESE ISSUES AND SOMETIMES THEY'RE NOT.

ONE THING THAT'S GOING TO HAPPEN IS LUBBOCK WILL BE ABLE TO PUT THEIR DATA ON SMART METER, TEXAS, UH, APPLICATION, UH, IN THE NEAR FUTURE.

SO WE REALLY LOOK FORWARD TO THAT.

THE RETAIL ELECTRIC PROVIDERS REALLY RELY ON THAT DATA AND, UH, IT'S REALLY IMPORTANT TO THEM AND TO THE MARKET.

AND TO ERCOT, I REALLY WANT TO THANK THE LUBBOCK RETAIL INTEGRATION TASK FORCE CHAIRS.

IT'S BEEN OVER TWO AND A HALF YEARS.

IT'S REALLY BEEN AN A MONUMENTAL EFFORT.

AND THOSE INCLUDE MICHAEL WEINGART WITH LUBBOCK, CHRIS RILEY WITH ENCORE, AND SHE, WE WITH TXU REALLY WANT TO COMMEND THEM FOR THEIR VERY HARD WORK, OF WHICH SOMETIMES YOU THINK IT'S JUST MONTHLY, BUT SOMETIMES IT ENDS UP BEING DAILY.

ALL RIGHT, NEXT SLIDE.

THE OTHER TASK FORCE THAT WE SUNSETTED IS THE MARKET COORDINATION TEAM.

AND THE MARKET COORDINATION TEAM TAKES CARE OF MANAGING LARGE VERSION RELEASES THAT ARE TEXAS SET.

IN ADDITION TO THAT VERSION RELEASE, WE HAD MANY OTHER R MGRS AND NPRR THAT WERE ALSO IMPLEMENTED TO SUPPORT THOSE CHANGES.

WE REALLY LOOK FORWARD TO CONTINUING TO WORK AND IDENTIFY ANYTHING THAT MIGHT HAVE BEEN MISSING WITH TEXAS AT 5.0.

ONE OF THE THINGS THAT WAS REALLY IMPORTANT IN THAT, UH, WEEKEND THAT WENT ON FOR A REALLY LONG TIME IS THE SCR EIGHT 17, WHICH IS MARKET TRACK.

AND THE INADVERTENT GAINS HAD BEEN WORKED THROUGH MARKET TRACK FOR YEARS.

AND WITH TEXAS VERSION 5.0, WE CAME UP WITH A TRANSACTIONAL SOLUTION.

SO IT'S PART MARKET, TRACK PART TRANSACTION, AND UM, THAT IS GONNA BE A GOOD IMPROVEMENT TO THE INADVERTENT GAINS, PRIMARILY BECAUSE IT'LL CUT OFF SOME OF THE DAYS.

AND RIGHT NOW IT DOES TAKE A LOT OF BACK AND FORTH TO GET THOSE FINISHED.

UM, THE THING ABOUT THE, UH, MARKET COORDINATION TEAM, IT'S LED BY ERCOT AND WE REALLY HAVE TO HAVE A LOT OF PARTICIPATION FROM ERCOT AND THE MARKET PARTICIPANTS.

DEFINITELY THE REPS AND THE T DSPS.

UM, I REALLY WANT TO THANK CATHERINE THURMAN WITH ERCOT.

SHE IS LED MCT FOR, UM, THE LAST COUPLE OF YEARS, AND DAVE MICHELSON AND THE ERCOT TEAMS FOR MANAGING MANY PHASES OF THE PROJECT.

UH, WE DID HAVE A LOT OF INPUT FROM T-D-T-M-S, WHICH IS THE DATA TRANSPORT IN THE MARKET TRACK SYSTEM.

AND THIS HAS BEEN GOING ON FOR, FOR YEARS.

THE LAST TIME WE HAD A VERSION RELEASED WAS 12 YEARS AGO.

ALL RIGHT, NEXT SLIDE.

SOME OF THE ACTIVITIES THAT ARE IN PROGRESS, THE PROFILING WORKING GROUP, THEY CONTINUE TO REEVALUATE THE NEEDS AND BENEFITS OF MANUAL VALIDATION.

WE DIDN'T HAVE ANY LOAD PROFILE VALIDATION IN 2024, SO WE'RE TALKING ABOUT THE SCHEDULE.

WE, WHAT WILL TAKE PLACE IN 2025.

WE SHOULD BE DOING BOTH RESIDENTIAL AND BUSINESS, THE RETAIL MARKET TRAINING TASK FORCE.

WE ARE UPDATING EVERYTHING THAT WAS PREVIOUSLY NOTED AS RETAIL TRAINING FOR MY ONLINE MODULES, WHICH ARE 24 7.

AND THEN THE INSTRUCTOR LED, WE'VE GOTTA BRING THEM UP TO DATE, THE TECH STEP VERSION 5.0 AND THE OTHER REALLY IMPORTANT PIECES THAT HAVE CHANGED, UM, TEXAS SET.

THEY ARE LOOKING AT TESTING SCRIPTS.

UH, TESTING FOR 5.0 WENT, UM, LATE.

IT FINISHED LATE.

IT WAS A COUPLE OF WEEKS AND IT TOOK A LONG TIME FOR US TO DO THE CLEANUP AND MANAGE THE ISSUES AND EDUCATE EVERYBODY ON WHAT

[02:00:01]

NEEDED TO HAPPEN.

AND THOSE WERE PRIMARILY RELATED TO THE INADVERTENT GAIN TRANSACTIONAL SOLUTION I MENTIONED.

AND T-D-T-M-S, WE ARE LOOKING AT THE SWITCH HOLD LANGUAGE BECAUSE ERCOT IS NOW GONNA DO A, POSSIBLY A ONE HOUR OUTAGE DURING A BUSINESS DAY DURING THE WEEKDAY, AND IT'S GOING TO BE BEFORE FIVE 30.

SO OUR WORKDAYS REALLY END AT SEVEN AND THIS IS KIND OF AN IMPACT.

AND THE SWITCH HOLD RESOLUTIONS ARE SUPPOSED TO BE DONE WITHIN FOUR HOURS AND UM, BY FIVE O'CLOCK.

SO WE JUST REALLY ARE LOOKING AT THAT LANGUAGE TO MAKE SURE THAT WE CAN DO SOMETHING TO, UH, MODIFY IT SUCH THAT WE CAN, WE'LL BE COMPLIANT WITH IT IF WE HAVE THOSE OUTAGES.

ARE GOING TO GO TO KATIE FOR THE ROSS REPORT AND THEN AFTER ROSS REPORT, WE WILL TAKE A BREAK.

ALL RIGHT, ANY QUESTIONS? OKAY, THANK YOU.

I DON'T SEE ANY QUESTIONS.

ALL RIGHT, WE

[14. ROS Report (Vote)]

THANKS CAITLIN, AND THANK YOU ALL FOR ALLOWING ME TO SERVE AS CHAIR AGAIN THIS YEAR.

SO WE HAVE TWO VOTING ITEMS FOR YOU.

NUMBER 2 71 GOES WITH NPR 1257, WHICH WE ALREADY APPROVED UNDER THE PRS AGENDA.

UM, SO THAT'S READY TO MOVE FORWARD.

AND THEN P ONE 17 WAS THE RESULT OF CHANGES TO 25 1 0 1.

UM, AND THIS IS TO CONDUCT A BIANNUAL ASSESSMENT OF POWER GRIDS RELIABILITY AND RESILIENCY.

UM, AND UH, JUST WANTED TO MAKE YOU GUYS AWARE OF THAT ONE.

I KNEW THAT ONE NEEDED TO MOVE FORWARD.

SO, UM, THAT ONE IS BEFORE YOU NOW READY TO VOTE ON, AND WE CAN GO TO THE NEXT SLIDE.

LIKE I SAID, 1257 ALREADY APPROVED.

I GOT A COUPLE OF ACTION ITEMS FOR YOU GUYS I WANTED TO TRY TO CLOSE OUT.

SO THE FIRST ONE WAS ATTACK ASSIGNMENT, DEALING WITH THE EEA TWO EVENT IN 2023.

UM, WE'VE GONE BACK AND, AND REVIEWED THIS AND, UH, THANKS TO NITKA FOR HELPING REFRESH MY MEMORY, BUT WE HAVE, UM, DONE ALL OF THE WORK ON THIS AND SO WOULD REALLY LIKE TO, TO CLOSE THIS ONE OUT.

AND THEN THE OTHER ONE CAME TO US FROM THE BEST FORCE.

THERE WERE SOME, UM, KCS FOR THE SINGLE MODEL THAT WERE REMAINING.

AND UNDER THIS ONE, THE BLACK START PIECE IS THE ONLY PIECE THAT'S CURRENTLY OUTSTANDING.

SO WANTED TO CLOSE OUT THESE OTHER, UM, KTC ASSIGNMENTS, UM, JUST TO KIND OF CLEAN OFF OUR DECKS.

AND THEN NEXT SLIDE PLEASE.

ALL RIGHT, SO, UM, CONTINUATION OF HEARING ABOUT 1264 AND THEN WE HAD, UM, THREE ASSOCIATED REVISION REQUESTS.

ALL FOUR OF THESE WERE TABLED AT ROSS, AND MY UNDERSTANDING IS MOST OF THE WORK WILL BE AT WMS. AND SO THE NOGA PICKER IN RIGOR ARE REALLY JUST, UM, INFORMING CHANGES.

SO YOU WILL LIKELY SEE THIS AT TABLED AT ROSS UNTIL WMS TAKES SOME ACTION.

AND THEN NEXT TWO SLIDES ALWAYS GIVE YOU, UM, AN IDEA OF WHAT'S STILL LEFT ON OUR TABLE, UM, AND WHERE THEY'RE ASSIGNED.

UM, SAME THING WITH THE NEXT SLIDE, PLEASE.

ADDITION OF RESILIENCY ASSESSMENT, DID, DID ER CAP PROVIDE, UM, KINDA MORE INFO ON HOW THEY PLANNED TO IMPLEMENT IT, LIKE WILL BE KIND OF ROLLED INTO THE RTP OR CONDUCTED AS A COMPLETELY SEPARATE PROCESS? JUST CURIOUS IF WE KNOW A LITTLE BIT MORE ABOUT HOW THAT MIGHT LOOK WHEN IT'S ACTUALLY ROLLED OUT.

SO A COUPLE OF NEW THINGS HERE.

UM, WE'LL POINT OUT THE, A GRANT ADVANCED GRID SUPPORT REQUIREMENTS FOR, UM, INVERTER BASED ESRS.

UM, LOOK FOR THAT TO HAVE AN UPDATE TO ROSS.

WE'RE WORKING WITH FRED ON A PRESENTATION FOR THAT.

UM, BUT IF THIS IS SOMETHING THAT INTERESTS YOU COULD REALLY USE YOUR INPUT ON, YOU KNOW, HOW TO MOVE FORWARD WITH THOSE ISSUES.

SO PLEASE TUNE IN AT THE NEXT ROSS FOR THOSE.

AND THEN OUR NEXT MEETING, UM, IS FEBRUARY 6TH.

THAT WILL BE WEBEX ONLY.

THAT'S A SUPER BUSY WEEK FOR EVERYONE WITH THE BOARD MEETINGS AND WMS. SO ROSS WILL BE WEBEX ONLY.

AND WITH THAT, I'M HAPPY TO TAKE ANY QUESTIONS.

IS HE A QUESTION FROM BILL? HEY, KATIE.

ON PICKER ONE 17, THE, UM,

[02:05:02]

SO THE WAY IT WAS CONTEMPLATED IS THAT IT WOULD BE, UM, IN PARALLEL WITH THE RTP, BUT A PING IS ON TO CONFIRM OR SOMEONE FROM, UM, SYSTEM OPERATIONS.

HI, THIS IS, UH, .

CAN YOU HEAR ME? YEAH, GO AHEAD.

PROB YES.

THANK YOU FOR STEPPING IN.

YEAH, SO IT'S, UM, THE, YOU'RE TALKING ABOUT THE RESILIENCY ASSESSMENT, CORRECT? IS THAT YES.

YES, SIR.

SO THAT'S A BIANNUAL ASSESSMENT, THAT'S A SEPARATE ASSESSMENT.

WE PUBLISHED THE FIRST ONE THIS YEAR, SO WE PLAN TO CONTINUE THAT.

THIS WILL BE A, YOU KNOW, EVERY TWO YEARS WE WILL, WE WILL COMPLETE THIS RESILIENCY ASSESSMENT.

THIS IS SEPARATE FROM RTP.

ALRIGHT, WE CAN MOVE TO CREDIT FINANCE SUBGROUP LORETTO.

ALL RIGHT, ANY OTHER QUESTIONS FOR KATIE? SO WE ARE LOOKING TO PUT THESE TWO, I THINK, ON THE COMBO BALLOT.

UM, RECOMMEND APPROVAL OF NOVEMBER 2 71 AS RECOMMENDED BY ROSS IN THE ONE NINE ROSS REPORT AND RECOMMEND APPROVAL OF FIGURE ONE 17 AS RECOMMENDED BY ROSS IN THE 12 FIVE ROSS REPORT.

HEY, I THINK WE CAN PUT THESE ON THE COMBO BALLOT.

JOHN, THANK YOU TO, UH, KATIE AND THE WORLD'S FOREMOST BABY STYLIST AND FORMER P-D-C-W-G CHAIR FOR WORKING WITH ME ON, UH, 2 71.

ALL RIGHT, SO LET'S TAKE A BREAK.

WHY DON'T WE JUST GO AHEAD AND, AND BREAK UNTIL NOON AND GIVE EVERYBODY A CHANCE, UM, TO, TO GET COFFEE AND FOOD AND GIVE, GIVE HER A CUT A BREAK.

SO LET'S, LET'S START BACK AT LY BLAKE, ARE YOU READY OR WHO IS GIVING THIS? HEY CAITLIN, THIS IS BLAKE.

[15. WMS Report]

HELLO, T THIS IS BLAKE HOLT WITH YOUR WMS REPORT.

UH, WE LAST MET ON JANUARY 8TH WHERE WE TOUCHED ON A FEW TOPICS.

UH, FIRST WE RECEIVED THE FIRST STAKEHOLDER TOUCHPOINT ON THE NEWLY FILED ENERGY ATTRIBUTE CERTIFICATE PROGRAM, UH, THAT HAS SINCE BEEN DISCUSSED AT OTHER VENUES, AND WE REQUESTED THAT PRS TABLE, THE NPRR FOR FURTHER DISCUSSION.

UH, SECONDLY, WE WALKED THROUGH OUR TABLED NPRR LIST AND GOT A STATUS UPDATE FOR EACH ONE.

OF NOTE WE HEARD FROM ERCOT ABOUT PROPOSAL ON OPTIONS FOR WARD DRRS, WHICH WILL BE PRESENTED AT FRIDAY'S SAWG MEETING.

UH, WE ALSO HEARD FROM EDF THAT THEY INTEND ON FILING ADDITIONAL COMMENTS TO MPRR 10 70.

THERE WAS SOME OVERLAP WITH THIS ONE AND THE NEWLY APPROVED NPRR 1247.

BUT EDF WOULD LIKE TO MORE CLEARLY DOCUMENT ERCOT PROCEDURAL ACTIONS IN THE PROTOCOLS AND GUIDES.

UH, WE ALSO GOT AN UPDATE ON NPRR 1202, UM, REGARDING THE LARGE LOAD INTERCONNECTION STUDY FEES THAT WERE PROPOSED.

UH, CURRENTLY ERCOT IS REVIEWING THE AMOUNTS PROPOSED IN 1202 AND IS CONTEMPLATING INCLUDING THEM IN NPRR 1 2 3 4 ONCE THEY DETERMINE FEASIBILITY AND UPDATED, UH, AMOUNT AMOUNTS THERE.

UH, NEXT WE ALREADY HAD A BRIEF UPDATE ON NPR 1190, SO I WON'T GET INTO THAT ONE FURTHER.

AND THEN FINALLY WE HAD ONE ITEM APPROVED, WHICH WAS NPRR 1241, WHICH MODIFIES THE FE FUEL STANDBY FEE CLAWBACK FUNCTIONALITY, AND THEN ONE ITEM WITHDRAWN, WHICH WAS NPR 1200.

THAT WILL BE RESOLVED BY SMR 28.

UH, NEXT SLIDE.

NO REAL DISCUSSION

[02:10:01]

ON THIS SLIDE.

I JUST WANTED TO REPRESENT TO TACK WHAT WAS STILL ON OUR PLATE, UH, AT THE BEGINNING OF THE YEAR ON IN TERMS OF REMAINING TOPICS.

AND WITH THAT, HAPPY TO TAKE ANY QUESTIONS FROM THE GROUP.

ANY QUESTIONS FOR BLAKE? ALL RIGHT, THANK Y'ALL.

ALL RIGHT, THANKS BLAKE.

AND THANK YOU FOR STEPPING UP INTO THE LEADERSHIP ROLE, UM, GAVE YOU SORT OF A FRANTIC PHONE CALL AND, UH, I'M GLAD THAT WE FOUND OUT YOU WERE WILLING AND ABLE TO CHAIR THE GROUP.

[16. Credit Finance Sub Group Report]

YOU READY? CAN YOU GUYS HEAR ME? WE CAN HEAR YOU.

PERFECT.

ALRIGHT, NEXT SLIDE.

UH, FIRST OFF, I'M THE CHAIR FOR THIS YEAR.

UH, JET PRICE IS THE VICE CHAIR FOR THIS YEAR, AND WE MET ON DECEMBER 19TH AND DECEMBER AND JANUARY 17TH.

BASICALLY, THE VOTING MATTERS WAS OPERATIONAL NPRS WITHOUT CREDIT IMPACTS, WHICH YOU GUYS HAVE ALREADY DISCUSSED, AND THE EA CHA CHANGE PROPOSAL THAT WE ENDORSED.

UM, I'M NOT GONNA GO THROUGH THE EAL CHANGE PROPOSAL HERE SINCE WE JUST HAD A PRESENTATION ON IT, BUT I LEFT THE SLIDES IN FROM BRENDAN'S PRESENTATION FROM LAST MONTH IN CASE ANYBODY WAS CURIOUS.

UM, THE OTHER ITEM WE COVERED AT THE LAST TWO MEETINGS HAS BEEN REGULAR CREDIT EXPOSURE UPDATES.

NEXT SLIDE PLEASE.

HERE'S THE LIST OF THE NPR THAT WE WERE REVIEWED WITHOUT CREDIT IMPACTS.

PRICES REMAINED RELATIVELY FLAT.

AND HERE'S THE ERCOT CREDIT.

IM, UH, HIGHLIGHTS FROM NOVEMBER, DECEMBER, 2024.

MARKET-WIDE.

TOTAL POTENTIAL EXPOSURE INCREASED TO 1.76 BILLION IN DECEMBER.

FORD ADJUSTMENT FACTORS INCREASED AT THE END OF DECEMBER, AHEAD OF THE JANUARY COLD FRONT.

REAL-TIME AND DAY AHEAD.

UH, DISCRETIONARY COLLATERALS DEFINED A SECURED COLLATERAL IN EXCESS OF TPE AND CRR LOCKED ACL IN DAM EXPOSURE.

AVERAGE DISCRETIONARY COLLATERAL RAISED SLIGHTLY TO FROM 3.82 BILLION IN OCTOBER TO 3.98 BILLION IN DECEMBER AND THERE WAS NO UNUSUAL, UH, COLLATERAL CALL ACTIVITY.

AND HERE'S THE USUAL, UM, CREDIT EXPOSURE BY TYPE OF CREDIT THAT IS POSTED.

AND THEN THE, THE BLACK LINE SHOWS THE MAX TPE DURING THE MONTH AND THE YELLOW LINE SHOWS THE TPE AT THE END OF THE MONTH.

NEXT.

AND THEN HERE'S THE GRAPH VIEW OF THE DISCRETIONARY COLLATERAL THAT'S POSTED DURING THE TIME PERIOD.

AND HERE'S THE OVERALL VIEW OF THE LETTER OF CREDIT AMOUNTS AT THE VARIOUS FINANCIAL INSTITUTIONS, JUST IN CASE ANYBODY'S WORRIED THAT ANYTHING'S GETTING CLOSE.

THAT'S IT.

LIKE I SAID, I LEFT THE, THE, UM, EAL DOCUMENTATION BEHIND THE SLIDE IN CASE ANYBODY'S CONCERNED ABOUT IT OR WANTS TO LOOK.

WE CAN NOW MOVE TO RTC PLUS B.

ALL RIGHT, THANK YOU.

AND THANK YOU FOR STEPPING UP FROM THE VICE CHAIR INTO THE CHEER ROLE.

UM, WE'RE, WE'RE EXCITED ABOUT NEW LEADERSHIP THERE.

AND, AND THANKS BRENDAN FOR THE, THE LAST COUPLE YEARS OF, OF HIM SERVING AS CHAIR.

[17. RTC+B Task Force Report]

MATT, ARE YOU READY FOR US HERE? YEAH, THANK YOU CAITLIN.

I'LL FIRE IT UP.

SO WE'RE GONNA GO THROUGH, HAVE THE USUAL UPDATE THAT WE DO HIGHLIGHTING THE KEY ISSUES AND RISKS THAT WE'RE WORKING THROUGH.

UH, WE'LL DO A LITTLE BIT OF A DEEPER DIVE ON SOME OF THESE ITEMS AND THEN TALK ABOUT WHAT'S COMING UP AT TOMORROW'S MEETING.

KIND OF AN EARLY RELEASE OF OUR MARKET TRIALS ENVIRONMENT FOR TELEMETRY BUILD OUT AS WELL AS FOR INITIAL MARKET SUBMISSIONS.

AND SO THIS IS THE GRAPHIC THAT WE USUALLY SHOW.

THIS IS THE WHAT IS SHOWN TO THE BOARD IN TERMS OF THE TECHNOLOGY AND SECURITY GROUPS.

THIS GROUP MAY NOT ALWAYS LOOK AT THAT, BUT THIS IS VERY MUCH A PMO SLASH DELIVERY CENTRIC TYPE VIEW OF THE WORLD AS TO HOW WE'RE DELIVERING.

AND SO THERE'S NO SIGNIFICANT CHANGE JUST TO THIS SLIDE.

NEXT ONE.

AND THEN THIS IS THE FAMILIAR MARKET TRIAL SEQUENCE THAT YOU'VE SEEN.

I WANTED TO HIGHLIGHT SOMETHING THAT WE'VE ADDED TO THE LEFT.

SO WE HAVE TALKED ABOUT AND ARE NOW NOW PLANNING TO DELIVER TO THE IDEA THAT IN MARCH AND APRIL THAT WE WOULD DEPLOY, I'LL CALL IT, WE'RE CALLING IT A SANDBOX, ESSENTIALLY

[02:15:01]

SO THAT WAY WHEN WE GET TO THE MAY TIMEFRAME, THAT WE'LL HAVE SOME ESTABLISHED SYSTEMS FOR PEOPLE TO START, UM, USING.

AND SO THIS IS NOT TO ACCELERATE THE SCORECARDS BY ANY MEANS.

IT IS JUST ALLOWING VENDORS, UH, WITH OTHER CERTIFICATES TO HAVE ACCESS TO THIS ENVIRONMENT JUST TO MAKE SURE THAT THE CODE THEY'RE ROLLING OUT TO THE WORKS OR FOR THE INTERNAL IT SHOP TO HAVE ACCESS TO IT.

SO IT'S AN EARLY ACCESS POINT AS NEEDED, UH, FOR THE MARKET.

NOTHING IS REQUIRED THERE, BUT IT IS JUST THE IDEA OF WHAT DOES IT LOOK LIKE TO HELP, UM, ENHANCE READINESS.

SO THAT'S RIGHT AROUND THE CORNER.

AND IN TERMS OF THE ISSUES WE'RE TACKLING, SO THIS HAS BEEN OUR PUNCH LIST TO WORK THROUGH.

THAT FIRST BOX IS FOUR NPR POLICY ISSUES THAT WE'LL TALK ABOUT ON THE NEXT SLIDE.

THIS IS A FOUR IN ONE NPRR HAS BEEN OUR APPROACH.

UM, THE NEXT RED BOX WAS AS THE MARKET HAS BEEN REVIEWING THE AS DEMAND CURVES AS WELL AS THE IMM, IT'S WHETHER OR NOT WE WANTED TO RESHAPE THOSE AS DEMAND CURVES.

SO THAT IS ANOTHER NPRR.

AND THEN THE THIRD BOX IS A CLEANUP NPRR THAT WE'VE HAD ON TRACK.

AND IT'S THE IDEA OF ANY CLEANUP ITEMS, ESPECIALLY RELATED TO THE IDEA OF AS QUALIFICATION.

UH, AND I THINK I HAVE THAT ON THE NEXT SLIDE.

IF I DON'T HIT IT, I I INTEND TO.

BUT WE'LL WALK THROUGH EACH OF THESE THREE NPRS THAT WE'RE LOOKING TO FILE.

AND THE ONLY THING NEW THAT STARTS TO SHOW UP, THERE'S NOTHING NEW IN THE MARKET TRIAL SEQUENCE DOWN BELOW.

BUT IN FEBRUARY YOU'LL SEE THAT WE'LL START ENGAGING ON THE IDEA OF THE MARKET TRIAL HANDBOOK FOR THE OPEN LOOP SKID TESTING AND QUEASY TELEMETRY TESTING.

SO BE ON THE LOOKOUT FOR THAT NEXT MONTH.

USED THAT FEEDBACK TO SHAPE NEW ADCS.

IN TERMS OF SCOPE, NO NPR HAVE BEEN, UM, ADDED TO THIS.

AGAIN, THIS IS THE IDEA OF IT WITH THE BASELINE NPR AND ALL THE THINGS THAT HAVE COME AFTERWARD THAT PEOPLE NEED TO BE ABLE TO ACCOMMODATE AS WE'VE BEEN IMPLEMENTING DIFFERENT THINGS.

SO NO CHANGES SINCE OCTOBER.

NEXT ONE.

AND HERE'S WHERE I WANT TO KIND OF PAUSE AND GO A LITTLE BIT DEEPER.

SO THAT FIRST NPR FOR THE FOUR IN ONE NPRR, WE'RE GONNA ADDRESS THE RAMP RATE SHARING.

THIS IS A FIVE SEVEN TYPE EQUATION OR SPECIFIED VALUE FOR HOW DO ENERGY AND AS SERVICES, UH, SHARE RAMPING CAPABILITY.

AND WE'VE FORKLIFTED ESSENTIALLY WHAT WE DO TODAY ON THE AS PROXY OFFER FLOOR.

THIS IS SOMETHING THAT DAVE MAGIO HAS BEEN NAVIGATING.

IT'S THE IDEA IF THE QUAI DOESN'T COMPLETE AN AS OFFER OR PUT IN ANY AS OFFER.

HOW DOES ERCOT FILL IN THE BLANK? UH, INITIALLY WE WERE TALKING ABOUT VALUES.

NOW IT'S BECOMING MORE OF A LOOKUP FUNCTION ON THE AS DEMAND CURVE AT SOME LEVEL.

SO WE'RE LOOKING AT THAT MODIFIED AS DEMAND CURVE WILL FEED INTO THE SOLUTION ON THIS OFFER FLOOR.

THE NEXT ONE IS WHAT AS DEMAND CURVE DO WE USE IN THE R TOOLS? SO THE RELIABILITY UNIT COMMITMENT IS STUDYING HOW TO COVER THE LOAD FORECAST PLUS ANCILLARY SERVICES.

UM, WHAT DO THOSE DEMAND CURVES LOOK LIKE? AND AT THIS POINT IT IS TO LEVERAGE THE EXISTING REALTIME, UH, ADCS AS THEY'RE BEING MODIFIED.

UH, BUT WHETHER OR NOT ANY TWEAKS ARE NEEDED TO THOSE TO ENSURE RELIABILITY.

AND SO RYAN KING IS ASSISTING ON THAT ONE.

AND THEN THE LAST ONE IS KIND OF THE LATER EMERGING ONE, WHICH IS THE AF DURATION REQUIREMENTS.

THOSE TWO HOUR AND FOUR HOUR REQUIREMENTS FOR DURATION AS WELL AS HOW WILL THEY BE TREATED IN REAL TIME FOR THOSE ANCILLARY SERVICES AS IT RELATES TO STATE OF CHARGE.

AND, UM, GETTING INTO THAT.

SO THE NEXT ONE IS AN MPR RELATED TO AS QUALIFICATION.

SO THERE ARE CONCERNS THAT THE TASK FORCE THAT, UH, THERE IS A LINE IN PROTOCOLS THAT SAYS, IF YOU'RE QUALIFIED TO PROVIDE SCAD, YOU AUTOMATICALLY QUALIFY, UM, TO, I'M SORRY, IF YOU'RE QUALIFIED TO PARTICIPATE IN THE REAL TIME MARKET, BE DISPATCHED BY SCAD, THAT CAPABILITY 'CAUSE YOU'RE AUTOMATICALLY QUALIFIED FOR NONS SPIN AND A CRF.

UM, THE MARKET HAVE TALKED ABOUT THIS.

WE WOULD LIKE TO EXPLICITLY QUALIFY RESOURCES SO THAT RESOURCES AREN'T ACCIDENTALLY BEING AWARDED SOMETHING THAT THEY DIDN'T INTEND TO OFFER.

AND SO WE WANTED TO TIGHTEN THAT UP.

AND SO THAT'S AN IMPORTANT CHANGE.

UH, IT DOESN'T REQUIRE SYSTEM CHANGES, IT'S JUST MORE OF A WHO'S QUALIFIED OR NOT QUALIFIED AS WE PREPARE TO GO LIVE.

AND THEN REALLY KIND OF OUR, OUR LARGER DISCUSSIONS HAVE BEEN AROUND THESE AS DEMAND CURVES.

UH, THE BIG NEWS IS THAT ON THE 14TH, THE IMM PUBLISHED A SENSITIVITY ANALYSIS WHERE THEY RAN A SERIES OF HOURS AND DAYS FOR USING THE THREE AS DEMAND CURVES.

THE FIRST ONE IS WHAT'S IN PROTOCOLS TODAY.

SO THAT'S THE CURRENT PROTOCOL APPROVED A SCC.

THE SECOND ONE IS THE IMM BLENDED A SDC.

THAT WAS THEIR ORIGINAL PROPOSAL FROM NOVEMBER.

AND THEN BASED ON MARKET FEEDBACK IN NOVEMBER AND DECEMBER, THEY ALSO DID SOME, UM, PARAMETER ADJUSTING AROUND THOSE AND

[02:20:01]

AND THEY STUDIED ALL THREE OF THOSE AND PROVIDED A PRETTY COMPREHENSIVE STUDY AND A POWERPOINT OF HOW THAT CHANGES MEGAWATTS PER CURE TO PRICES.

AND SO AGAIN, IF YOU WANT TO SEE THAT STUDY, YOU CAN CLICK THERE TO READ IT.

UH, AND THEN THEY'RE ALSO BRINGING FORWARD THAT NPR DRAFT LANGUAGE AND THEY'LL HAVE AN UPDATED ONE TOMORROW IT SOUNDS LIKE, FOR HOW TO FILE THIS AS AN NPR BY THE END OF THE MONTH.

AND THEN THE LAST PIECE IS HAD GONE BACK AND RERUN KIND OF THE IMM STUDY FROM 20 17 20 18, WHICH IS IF RTC WAS IN PLACE, WHAT IS THE, UH, BENEFIT COST SAVINGS THAT ARE IN PLAY? AND THAT EFFICIENCY IS REMEASURED AGAIN.

UH, AND THERE'S A CLICK TO THE STUDY THERE, AND THAT'S NOW TRENDING MORE TOWARDS TWO AND A HALF TO 6.4 BILLION.

UH, THE REASON FOR THE LARGE DIFFERENCE BETWEEN THE TWO, IT DEPENDS ON IF YOU COUNT SUMMER 2023 AFTER THE ECRX GO LIVE AND THE HOT WEATHER AND THE VERY HIGH PRICES.

THEN, UM, SO WE'VE DONE KIND OF A, A ROLLING 12 MONTH, UH, DUAL STUDY IN THAT.

AND FOR BOTH THE IMM AND THOSE ERCOT STUDIES WE JUST POSTED ON FRIDAY AND MONDAY OR TUESDAY, THE DETAILED RESOURCE LEVEL DATA BEHIND IT.

SO NOT ONLY IS IT A POWERPOINT NOW PEOPLE CAN DOWNLOAD THE 300 MEGABYTES OF CSV FILES TO DO THEIR OWN IN-HOUSE STUDIES OF THOSE STUDIES.

AND THAT WAS A BIG ASK OF THE, UH, MARKET AND NOT A BIG ASK, IT WAS AN ASK OF THE MARKET THAT WAS SIGNIFICANT AND ERCOT WAS ABLE TO DELIVER THAT.

AND THEN LASTLY, WE HAVE THE MARKET TRIALS HANDBOOKS.

UM, THIS IS THE IDEA FOR THOSE THAT FIRST MAY JUNE ACTIVITY, AND WE'VE RECEIVED NO NEGATIVE COMMENTS AT THIS POINT.

AND THEN THE LAST PIECE IS THE, UM, WE DID SPEND 30 MINUTES ON THE, UH, NPR 1253 DISCUSSION OF DOES THE BATTERY CHARGING AS IT AFFECTS FOUR CT EXIST IN RTT AFTER GO LIVE? AND THE ANSWER IS NO.

IT'S A SELF-HEALING PROCESS.

SO THAT'S GOOD NEWS.

SO THAT WAS A LOT.

I'M JUST GONNA MUFF THROUGH THE REST OF THIS AND THEN PAUSE FOR QUESTIONS NEXT ONE.

SO IN TERMS OF ALL THESE NPRS THAT WE'RE LOOKING TO GET IN FLIGHT, UH, THE CURRENT PLAN IS TO HAVE THREE NPR.

ONE IS FOR THOSE FOUR POLICY TYPE CHANGES THAT WE TALKED ABOUT, THE ONE FOR THE AS QUALIFICATION.

AND THEN THE LAST ONE, THE IMMEN SPONSORED A SDC, UH, MODIFICATIONS.

SO THE TIMELINE BELOW, I'VE TRIED TO SUMMARIZE IN A GRAPHIC THAT'S NOT THAT EASY TO READ.

IT LOOKED BETTER IN MY HEAD THAN ON PAPER.

BUT ON THE LEFT IS TO FILE THE NPR ON A NORMAL TIMELINE BY JANUARY 28TH, GET US TO THE FEBRUARY 12TH MEETING.

HOWEVER, WE MAY HAVE DISCUSSIONS, YOU'LL SEE AT THE BOTTOM IS OUR T-C-B-C-F WILL CONTINUE TO HAVE STAKEHOLDER MEETINGS THAT MAY SHARPEN AND REFINE SOME OF THIS WORK.

SO WHAT WE WANT TO DO IS GET THESE LANGUAGE AND PARAMETERS INTO THE STAKEHOLDER PROCESS AT THE END OF JANUARY.

SO FEBRUARY AND MARCH, THERE CAN CONTINUE TO BE FORMAL COMMENTS AND FILINGS TO CHANGE THOSE NUMBERS OR DIAL IN THOSE NUMBERS.

AND EVEN THE TASK FORCE MAY BE STUDYING AND FINDING WHAT BETTER NUMBERS THERE ARE.

SO THAT WAY WE HAVE THE CONSTRUCT IN PLAY SO THAT WE CAN, UM, DIAL IN THE PARAMETERS AND GIVE THAT IN TIME FOR THE MARCH PRS AND TAC APPROVAL.

SO WE'D EXPECT THAT AT PRS IN FEBRUARY THAT THIS WOULD BE TABLED, THAT THAT WOULD ALSO BE MARKED AS URGENT.

SO INFORMATION DOES COME THROUGH THAT IT COULD BE APPROVED AND OFF TO THE APRIL BOARD.

AND THE KEY PIECE IS THAT YELLOW BOX THERE, ERCOT NEEDS TO DO SOME REFACTORING FOR CHANGE, THE AS DEMAND CURVES AND SOME OF THESE OTHER PIECES.

THAT'S OUR CHANCE TO RECODE BEFORE WE GET INTO THE MARKET TRIALS ENVIRONMENT IN MAY.

SO THAT'S KIND OF OUR WHY THESE THINGS ARE BEING SQUEEZED INTO THE WAY THEY ARE.

AND WE'LL TALK A LOT MORE ABOUT THAT TOMORROW.

BUT HOPEFULLY THAT HELPS WITH THE TIMELINE.

AND THE LAST SLIDE, I BELIEVE IS THAT WE DID ADD, UH, DAVE MAGIO DID A TAPE RECORDING OF THE RTC BASIC EDUCATION.

SO IF YOU WANT A 37 MINUTE YOUTUBE VIDEO OF, UM, JUST THE BASICS OF WHAT RTC IS, AS WELL AS A FEW SLIDES ON BATTERY STORAGE, UH, ENERGY STORAGE RESOURCES, THAT IS A GREAT POINT TO POINT YOUR STATS TO, UH, BACK AT YOUR COMPANY'S.

AND THE LAST ONE.

THERE WE GO.

SO, UH, WE DO HAVE A HALF DAY MEETING TOMORROW.

UH, WE SCHEDULED FOR HALF DAY BECAUSE THERE IS A PUC GOVERNANCE REVIEW MEETING THAT'S BEEN CANCELED, SO WE COULD GO LONGER NOW.

BUT AGAIN, THE MAIN THING TO TALK ABOUT IS THOSE, UH, NPRS LANGUAGE, UH, AS WELL AS ANY QUESTIONS ON THE STUDIES THAT WE'VE RELEASED.

AND WITH THAT, I'LL SAY WE'LL SEE MANY OF YOU TOMORROW, AND THAT'LL BE IN PERSON AND OR ONLINE AT NINE 30 IS THE NEXT MEETING TOMORROW.

SO I'LL SEE IF THERE ARE ANY QUESTIONS.

ALRIGHT, THANK YOU FOR THE TIME AND SUPPORT.

WE APPRECIATE IT.

ALRIGHT, THANKS MATT.

[18. ERCOT Reports (Part 2 of 2)]

WE ARE MOVING DOWN TO

[02:25:01]

OUR CART REPORTS.

WE HAVE A LOT OF THEM TODAY.

FIRST UP IS KEEP, UH, WITH THE MARKET DESIGN FRAMEWORK DISCUSSION.

I BELIEVE THIS IS A RESPONSE TO MAYBE THE COMMENTS AND THE, THE COMMENT, I GOT THIS QUESTION A COUPLE OF TIMES ARE POSTED TO, TO THIS, THIS DAY'S TECH MEETING PAGE.

YEP, THAT'S RIGHT.

WE HAD, UM, DISCUSSED THIS A FEW MONTHS BACK AND I HAD INDICATED THAT WE WOULD, UH, THERE WAS A REQUEST FOR COMMENTS.

WE RECEIVED THOSE AT THE END OF DECEMBER, AND NOW WE ARE, UM, WE'VE HAD A CHANCE TO REVIEW THEM.

UM, HOPEFULLY, YOU KNOW, FOLKS, UM, HAVE HAD CHANCE TO LOOK AT THE PRESENTATION BECAUSE THERE'S ASSIGNMENT FOR FOLKS THAT PROVIDED COMMENTS.

SO THANK YOU.

WE'RE GONNA CALL ON YOU IN A MINUTE, UM, UH, AND, UH, UH, HOPEFULLY HAVE SOME DISCUSSION ABOUT THIS TODAY.

SO I'M, I'M EXCITED AND HOPEFULLY YOU ARE AS WELL.

OKAY, SO BACKGROUND, UH, ULTIMATELY, UH, WE STARTED THIS PROCESS BACK IN, IN AUGUST WITH, UH, PABLO'S CONVERSATION WITH THE BOARD.

UH, WE HAD THAT CONVERSATION AND IN OCTOBER, UH, WE HAD OUR MARKET DESIGN FRAMEWORK DISCUSSION, WHICH, WHICH I THOUGHT WAS, WAS HELPFUL.

AND WE, WE DID THAT AT THE WMS, WE DID THAT AT THE TAG.

AND THEN ULTIMATELY, UH, WE DID RECEIVE, UH, SIX SETS OF COMMENTS, UH, FROM STAKEHOLDERS.

IF I MISSED ANY, UM, I APOLOGIZE.

BUT THOSE ARE THE ONES THAT, THAT I SAW COME THROUGH, UH, HAD A CHANCE TO READ THROUGH THEM ALL.

AND, UM, HOPEFULLY, UH, WE'LL HAVE SOME GOOD DISCUSSION ABOUT THAT.

ALRIGHT, MOVE FORWARD.

THESE THREE POINTS, IS THE IMPORTANT IMPORTANCE OF THE PURPOSE AND INTENT, YOU KNOW, TO, TO ENSURE THAT THAT'S DEFINED WELL, AND THAT WE CAN UNDERSTAND THAT.

SO ONE OF THE THINGS I THOUGHT WOULD BE HELPFUL IS, IS KIND OF A REVIEW ON THE, THE FRAMEWORK PILLARS HERE.

UH, THESE COME RIGHT OUT OF THE STR STRATEGIC PLAN.

I DIDN'T INVENT ANYTHING HERE.

I JUST COPY PASTED.

AND, AND PART OF THE THING, UH, PART OF THE REASON WHY I THINK THIS IS HELPFUL IS THAT, YOU KNOW, THERE'S A THEME AND WE'LL GET TO THE THEMES IN A SECOND.

UM, AND THAT THEME TALKED ABOUT, YOU KNOW, WHAT IS THE BALANCE BETWEEN, YOU KNOW, OUR RELIABILITY PILLAR AND OUR, UM, SORT OF OUR AFFORDABILITY PILLAR.

UM, PILLAR ONE, PILLAR TWO.

AND, UH, THERE WAS SOME DISCUSSION AND, AND IN, IN THE COMMENTS ABOUT THAT.

AND SO I WANTED TO, TO HIGHLIGHT THIS PARTICULAR POINT HERE, UH, THAT YOU'LL SEE THAT I'VE UNDERLINED.

SO EMPHASIS HAS BEEN ADDED, UM, AND I ADDED THAT WHEN I PASTED THIS IN.

AND SO, UH, WHAT WE SEE IS THAT WHILE RELIABILITY IS THE ORGANIZATION'S PRIMARY OBJECTIVE, UM, COST SHOULD ALWAYS BE CONSIDERED.

SO I THINK THAT HOPEFULLY WILL SET US UP FOR SOME OF THE DISCUSSION AND DEBATE THAT'LL HAPPEN, UH, ABOUT, YOU KNOW, THE, WHAT THE MEANING OF THIS BALANCE IS, RIGHT? AND SO THE PERSPECTIVE FROM ERCOT ON THAT AND ITS GROUNDEDNESS HERE IN, IN THE, THE STRATEGIC PLAN, AND, AND I'LL SORT OF NOTE THAT SOME OF THE OTHER COMMENTS ARE, ARE KIND OF RELATED TO AFFORDABILITY, AND THEY'RE ALSO CAPTURED HERE TOO, WHERE, WHERE, YES, THE IDEA IS TO, TO PICK THE LOWEST, UH, RELIABLE OPTION THAT THAT'S POSSIBLE, UM, IS, IS SORT OF THE GOAL AND, UH, UH, THIS IDEA OF PROMOTING COMPETITIVENESS.

AND, AND I KNOW THAT CAME OUT IN SOME OF THE COMMENTS.

SO YES, I THINK, UM, UH, THAT DEFINITELY CONNECTS WITH, UH, UH, THE DISCUSSION HERE IN THE STRATEGIC PLAN.

SO MOVING FORWARD, WE'LL GO TO THE NEXT SLIDE.

ALRIGHT, SO THIS IS JUST A QUICK REVIEW.

THIS IS WHAT WAS, WAS IN THE TAC UH, TAC PRESENTATION BACK IN, UH, OCTOBER.

UH, UH, THESE WERE THE, THE, THE POINTS THAT WE WERE ASKING FOR DISCUSSION.

AND, AND THERE WAS SOME GOOD DISCUSSION IN THE COMMENTS ABOUT THAT, AND I REALLY APPRECIATE THAT.

UH, BUT HERE'S WHERE WE'RE AT, JUST AS A REMINDER OF THE FRAMEWORK AND WHAT WE'LL BE BASING OUR COMMENTS, UH, AND DISCUSSION ON TODAY.

ALRIGHT, NEXT SLIDE.

OKAY, SO HERE ARE, UH, OUR COMMENTERS AND I THANK ALL OF YOU FOR, UH, PROVIDING SOME, SOME THOUGHTFUL COMMENTS.

UH, IT WAS USEFUL FOR ME TO HELP LOOK THROUGH THEM.

I THINK THAT'S, THAT'S WHERE COMMENTS CAN, CAN BE HELPFUL IS, IS, LOOK, WE PUT SOMETHING OUT THERE, WE GET, WE GET SOME FEEDBACK ON, ON, ON, ON YOUR THOUGHTS.

IT WAS, IT WAS REALLY HELPFUL.

UH, AND AGAIN, I THINK, UM, UH, THERE WAS THE CONSUMER SEGMENT.

THERE WAS SOME, SOME FOLKS GROUPED TOGETHER, WHICH, WHICH WAS NICE TO SEE AS WELL.

THERE WAS A COMMON AND JOINT SET OF COMMENTS AND, AND THEN A BUNCH OF OTHER FOLKS AS WELL.

SO, UM, UH, I DIDN'T, I I, I KNOW I WENT THROUGH ALL THE COMMENTS AND I CREATED MY OWN SIDE SHEET TO HELP ME AS A CHEAT SHEET.

AND HOPEFULLY YOU GUYS DID THAT AS WELL, UH, TO GET A SENSE OF WHAT ALL THOSE COMMENTS ARE.

AND SO IF WE GO TO THE NEXT SLIDE, WHAT I TRIED TO DO INSTEAD OF, UM, TALK ABOUT LIKE WHAT WAS EVERY POINT THAT EVERYBODY MADE, WHAT I TRIED TO DO IS PICK UP ON SOME COMMON THEMES THAT, THAT WE SAW IN THE, THE DIFFERENT COMMENTS.

AND, UM, AND I THINK THIS, THIS CAME OUT ON, ON PARTICULARLY

[02:30:01]

AND I THINK THERE WAS DEFINITELY SOME, SOME, UH, SUGGESTIONS TO DO THAT AND SOME QUESTIONS AROUND THAT.

AND SO I THINK THAT WAS SOMETHING THAT, THAT I TOOK AWAY AS, AS A CO COMMON THEME TO DO, UH, THIS BALANCE OF RELIABILITY AND AFFORDABILITY.

AND, AND, AND I SORT OF LET OFF TODAY'S PRESENTATION WITH THAT.

'CAUSE THAT DID COME OUT, I BELIEVE IN ALMOST ALL THE COMMENTS THAT I HAD A CHANCE TO, TO LOOK AT THAT THIS WAS A, UM, AN ELEMENT THAT SORT OF STRUCK ME AS AS IMPORTANT.

AND THEN THIS IDEA OF FURTHER REFINEMENT.

AND, UM, I, I DON'T, I DON'T DISAGREE WITH THAT EITHER.

I THINK THAT THAT WAS OUR HOPE WAS THAT THERE MAY BE SOME IDENTIFICATION OF SOME FURTHER REFINEMENT.

I THINK ONE OF THE THINGS THAT MAY BE TOUGH IS THERE'S ALSO THIS BALANCE OF COMPREHENSIVENESS AND, UH, SORT OF, UH, UH, BREVITY, RIGHT? AND IT'S SORT OF, UM, YOU KNOW, I SORT OF THINK OF IT AS THE CEO THAT COMES IN AND SAYS, WELL, WE GOT 99 THINGS THAT I'M GONNA ACCOMPLISH IN THE NEXT YEAR.

THAT'S COMPREHENSIVE.

WELL, IT MIGHT BE COMPREHENSIVE.

IT, IT MAY NOT BE AS FOCUSED, RIGHT? AND SO, UM, BUT IF YOU HAD 10, LET'S SAY, OH, OKAY, THERE'S 10 THINGS WE'RE GONNA FOCUS ON, UH, I THINK THAT THAT'S EASIER TO COMMUNICATE.

UH, AND SO THERE'S THIS BALANCE BETWEEN REFINEMENT AND COMMUNICATION.

SO WHAT I WANTED TO DO IS, AND, AND, UM, I THINK I TOOK A CUE FROM A DISCUSSION ABOUT, UH, WE TALKED ABOUT STAKEHOLDERS, PRES, UH, ERCOT PRESENTING STAKEHOLDER POSITIONS TO THE BOARD, RIGHT? AND, AND I SORT OF VIEWED THIS THE SAME WAY AS THAT I COULD, I COULD TELL YOU MY PERSPECTIVE OF WHAT THESE COMMENTS SAY, UH, BUT I THINK IT'S PROBABLY BETTER THAT THE COMMENTERS HA HAVE AN OPPORTUNITY TO PRESIDE, UH, PRESENT, UM, WHAT THEIR, UM, DISCUSSION WAS.

AND SO, UM, YOU KNOW, I I, I WOULD HOPE THERE'S, THERE'S A HANDFUL OF FOLKS, OBVIOUSLY WE'RE NOT LOOKING AT, YOU KNOW, 20 PEOPLE.

WE'VE GOT SIX, SIX SETS OF FOLKS.

AND SO IF FOLKS WOULD LIKE TO HAVE AN OPPORTUNITY TO, UM, DISCUSS, UH, THEIR COMMENTS, UH, I THINK THAT THAT COULD BE REALLY USEFUL AND, AND ALLOW FOR, FOR QUESTIONS, BECAUSE I KNOW FOR ME, UM, ONE OF THE TAKEAWAYS THAT I HAD AS I WAS GOING THROUGH WAS, HEY, WAIT A SECOND.

I DID, I UNDERSTAND THAT POINT, UM, THAT, YOU KNOW, MAYBE NED WAS MAKING A POINT WITH RA.

I WAS LIKE, WELL, DID DO I UNDERSTAND THAT POINT, RIGHT? UM, OR NOT.

AND SO IT MIGHT GIVE US AN OPPORTUNITY TO, TO, IN THE PRESENTATION, ALLOW FOR US TO, UH, FOR MYSELF AND OTHERS TO, TO ASK SOME QUESTIONS ABOUT, HEY, WELL, WHAT DID YOU REALLY MEAN BY THAT? AND, UM, SO WE CAN GET A CLEAR VIEW OF, OF WHAT IT IS THAT, THAT YOU'RE AFTER.

AND SO, UM, MAYBE WHAT WE COULD DO IS, UM, I KNOW I'LL, I HAVE THE PRESENTATION ALSO ON MY COMPUTER SO I CAN CALL FOLKS OUT.

UM, BUT TO GIVE FOLKS AN OPPORTUNITY TO, TO, TO PRESENT WHAT THEIR COMMENTS ARE.

AND SO, UH, VISTA ILLUMINANT.

SO NED, UM, YOU WERE FIRST ON MY LIST.

SO, UM, IF YOU'VE GOT AN OPPORTUNITY TO, HERE'S AN OPPORTUNITY FOR YOU TO, UM, YOU KNOW, SUMMARIZE, YOU KNOW, QUICKLY IN, IN, IN A COUPLE MINUTES WHAT, WHAT YOUR COMMENTS ARE AND, UM, ANY POINTS YOU WANTED TO HIGHLIGHT.

SO NED, PLEASE FEEL FREE TO GO AHEAD.

YOU KNOW, 15 PLUS YEARS, YOU KNOW, SOME OF THESE, SOME OF THE ISSUES THAT WE'VE BEEN GRAPPLING WITH AS A, AS A, AN INDUSTRY ARE, ARE, ARE NOT NEW.

UH, WELL, THANK YOU, KEITH.

UM, I, I APPRECIATE THE, THE OVERVIEW AND, UM, YOU KNOW, I THINK YOU DID A, A, A I THINK YOU DID A GOOD JOB OF PULLING OUT, I THINK SOME OF THE, THE COMMON THEMES, CERTAINLY, UM, THE THEMES THAT YOU HIGHLIGHTED WERE ONES THAT I THINK WE TRIED TO HIT ON.

UM, YOU KNOW, AS, AS A MAIN TAKEAWAY, I WANT TO MAKE SURE THAT, YOU KNOW, YOU KNOW, I THINK OUR COMMENTS ARE MEANT TO BE VERY GENERALLY SUPPORTIVE OF, YOU KNOW, THE, THE FRAMEWORK AND THE INTENT BEHIND THE FRAMEWORK.

UM, BECAUSE IT CAN BE HELPFUL TO HAVE THIS SORT OF, YOU KNOW, TOOL TO HELP SOCIALIZE AND, AND COORDINATE THINKING ABOUT MARKET DESIGN CHANGES.

UM, YOU KNOW, I KNOW ALL OF US COME TO THE T TABLE WITH, YOU KNOW, DIFFERENT, UH, DIFFERENT A PRIORITY ASSUMPTIONS AND, UM, DIFFERENT CONCERNS, BUT, YOU KNOW, HAVING A COMMON FRAMEWORK HELPS US TO, TO REALLY GET AROUND THAT.

UM, SO I WANTED TO SAY THAT FIRST AND FOREMOST, BECAUSE I THINK THE BULK OF THE WORDS ON THE PAGE, YOU KNOW, YOU SEE THOSE ARE REALLY FOCUSED ON, YOU KNOW, THE FEW BUT KEY AREAS WHERE, YOU KNOW, WE DO THINK THAT IT WOULD BE BENEFICIAL TO SEE SOME ADDITIONAL CLARITY AND, AND PURPOSE AND, AND REFINEMENT OF THE DETAILS.

SO, UM, YOU KNOW, ON THE PURPOSE SIDE OF, UH, THAT REFINEMENT, YOU KNOW, I THINK THE MAIN THING I I'D WANNA GET ACROSS IS THAT, YOU KNOW, WE WANNA MAKE SURE THAT THE, YOU KNOW, GOING, REVIEWING THIS FRAMEWORK IS NOT RESETTING ALL OF THE WORK THAT WE AND THE COMMISSION AND THE LEGISLATURE HAVE ALL DONE ALREADY, UM, ON MARKET DESIGN, NOT JUST OVER THE LAST, YOU KNOW, THREE, FOUR YEARS, BUT EVEN GOING BACK,

[02:35:01]

AND WE'VE, YOU KNOW, WE'VE BEEN WORKING ON 'EM A LOT AND, AND DONE A LOT OF, UH, MADE A LOT OF PROGRESS.

SO, UM, THAT, THAT'S FIRST AND FOREMOST, YOU KNOW, ESPECIALLY NOW THAT WE'VE SEEN THE, THE SHELVING OF THE PCM AND WE HAVE THE, THE PENDING IMPLEMENTATION OF REAL-TIME CO OPTIMIZATION.

THOSE, THOSE BOTH DO PRESENT US WITH, YOU KNOW, BOTH A, A CALL IT A DEEPER HOLD TO CLIMB OUT OF, AND ALSO, YOU KNOW, FEWER TOOLS AVAILABLE TO GET THE JOB DONE.

, UH, TO USE THAT ANALOGY.

UM, AND I DON'T WANT TO, YOU KNOW, I DON'T WANT TO FRONT RUN THE, THE GOOD DISCUSSION THAT'S HAPPENING AT SOG ON DRRS, BUT, YOU KNOW, I THINK THE, THERE IS A COMMON THEME IN SOME OF THE, THE COMMENTS WE'VE MADE IN THAT FORUM AND WE'LL CONTINUE TO MAKE, AND WHAT WE SAID HERE, WHICH IS, YOU KNOW, WE, WE WANT TO CHOOSE AMONG THE BEST TOOLS THAT WE HAVE AVAILABLE TO US AND USE THOSE TOOLS EFFICIENTLY.

UM, BUT WE ALSO DON'T WANNA, YOU KNOW, FOR INSTANCE, GIVE UP ON, ON TRYING TO, YOU KNOW, JUST BECAUSE WE MAY NOT HAVE THE EXACT PERFECT TOOL THAT WE WOULD LIKE TO HAVE FOR A SITUATION WHERE WE SHOULD, YOU KNOW, NOT LET THE PERFECT BE THE ENEMY OF A GOOD, OF THE GOOD IS PROBABLY A, A GOOD SUMMATION.

UM, SO ON THAT'S, YOU KNOW, BROAD PURPOSE, UH, COMMENTARY ON REFINEMENTS.

UM, YOU KNOW, I THINK THE MAIN FEEDBACK POINT IS, YOU KNOW, WE'RE, AS WE'RE TRYING TO ARRIVE AT A COMMON FRAMEWORK, ONE OF THE, ONE OF THE THINGS THAT, YOU KNOW, REALLY STANDS OUT IS THERE ARE ALWAYS GOING TO BE SOME TENSIONS BETWEEN DIFFERENT FRAMEWORK ELEMENTS.

AND HAVING SOME, YOU KNOW, TRYING TO, TRYING TO PUT SOME, UH, COMMON FRAMEWORK AROUND HOW TO BALANCE THOSE TENSIONS MAY BE HELPFUL IN, IN MOVING, MOVING THE BALL FORWARD.

UM, I DON'T WANNA BE, YOU KNOW, NAIVE TO THINK THAT THERE ARE NEVER GOING TO BE CONTRARY VIEWS.

LIKE I SAID, WE'RE ALL HERE AT THE TECH TABLE TO TRY TO WORK THROUGH THOSE AND, AND PRESENT THOSE DIFFERENT PERSPECTIVES.

UM, BUT THE THOUGHT IS THAT IF WE CAN CLEARLY STATE SOME OF THOSE OBJECTIVES THAT MAY HELP WITH RESOLVING SOME OF THAT TENSION.

AND SO, UM, YOU KNOW, CERTAINLY SUPPORTING THE PUCS ADOPTED RELIABILITY STANDARD SEEMS LIKE LOW HANGING FRUIT ON THAT FRONT.

UM, BUT AS YOU NOTED, UH, AT THE OUTSET, YOU KNOW, THAT WE, WE DO WANT TO BE COGNIZANT THAT WE DO NEED TO BALANCE RELIABILITY AND, UM, YOU KNOW, AND COSTS.

SO, YOU KNOW, THOSE, THOSE ARE, I THINK, YOU KNOW, IT'S A, IT'S A CLOSE ONE AND TWO, RIGHT? AND, AND THAT WAS REALLY WHAT A, WHY WE INCLUDED, OR I INCLUDED THE, THE SURVEY BASICALLY BECAUSE I, THAT WAS ONE THAT I HAD ACTUALLY PARTICIPATED IN AS A, AS, UM, AS A CITIZEN OF THE, OF THE CITY.

AND, UM, WHEN I SAW THE RESULTS, I SAID, WELL, THAT, THAT ACTUALLY, THAT TRACKS, AND, YOU KNOW, IT'S HELPFUL TO SEE JUST A FRESH EXAMPLE BECAUSE WE'VE SEEN THAT MULTIPLE TIMES AS CONSUMERS WANT RELIABILITY, BUT THEY, THEY ALSO, YOU KNOW, COST IS IS THE CLOSE NUMBER TWO.

SO, UM, WE WANNA, WANTED TO REITERATE THAT POINT.

UM, ASIDE FROM THAT, THE, JUST THE REMAINING REFINEMENTS ARE REALLY JUST, YOU KNOW, MAKING SURE THAT WE'RE CLEAR IN TERMIN TERMINOLOGY, SO WE ALL HAVE COMMON AN UNDERSTANDING WHAT THE WORDS MEAN AND, AND, UH, YOU KNOW, MAKE SURE WE ALL UNDERSTAND WHAT THE, WHAT THE PROCESS IS LIKE, HOW WHEN THE FRAMEWORK GETS PULLED OUT AND HOW IT'S UTILIZED AND WHO KICKS IT OFF AND WHAT TAX ROLE IS AND ERCOT ROLE IS.

AND, UM, I THINK THOSE WOULD BE SOME OPPORTUNITIES TO CLARIFY.

THANK, THANK YOU, NED.

I, I THINK THIS IS, UM, YOU KNOW, YOUR, YOUR COMMENTS HERE ARE HELPFUL AND SORT OF HIGHLIGHTING YOUR, YOU KNOW, WHAT, WHAT YOU WROTE.

AND, AND I THINK ONE OF THE THINGS THAT YOU, YOU HADN'T MENTIONED, BUT I DO THINK WAS AT LEAST AN INTERESTING THOUGHT IS, IS THIS IDEA OF, WELL, WHAT, WHAT'S KIND OF THE METRIC, PARTICULARLY WHEN WE THINK OF RELIABILITY, RIGHT? WHAT IS THE METRIC THAT WE, WE PUT OUT THERE? AND, AND I THINK YOU WERE SUGGESTING THE, YOU KNOW, THERE'S THESE SORT OF THE RELIABILITY STANDARD, RIGHT? THERE'S, UM, YOU KNOW, IF WE'RE, WE'RE, WE'RE NOT ACHIEVING THAT, THEN THAT, THAT SEEMS TO BE AN ISSUE, WAS AM, AM I CAPTURING THE ESSENCE OF YOUR COMMENT CORRECTLY? YES, SIR.

I, YEAH, I THINK THAT'S, THAT IS THE, THE, THE MOST CLEAR ONE THAT WE CAN, YOU KNOW, UH, POINT TO THE COMMISSION HAS CONSIDERED IT AND, UM, PUT A LOT OF THOUGHT AND EFFORT INTO IT.

AND SO, YOU KNOW, I THINK THAT IS, UH, THAT'S ONE THAT WE, YOU KNOW, WE ALL HAVE TO, WE ALL, WE ALL WANNA SUPPORT THE COMMISSION, FRANKLY, IN, IN THEIR, UH, IN THEIR EFFORTS TO, TO MAINTAIN THAT.

SO THAT SEEMS SHOULD BE A, A PRETTY EASY RALLYING, UH, RALLYING POINT.

LANGUAGE AND THAT COMMON APPROACH AND, YOU KNOW, MAKING IT IN A WAY THAT WE CAN PACKAGE IT MAYBE A LITTLE BIT TO HELP OTHERS SORT OF, UM, THINK THROUGH SOME OF THESE THINGS, RIGHT? UM, UH, WITHOUT REINVENTING THE WHEEL, AS YOU GUYS SAID, SO, SO I APPRECIATE YOUR COMMENTS.

GOOD.

AND I, I THINK, AND I KNOW BLAKE'S UP NEXT, AND I, I THINK WE'LL, WE'LL HEAR FROM HIM IN A SECOND, BUT THERE WAS A COMMENT THAT YOU JUST MADE, AND I THINK THAT, THAT, UH, THAT LCRA MADE IN THEIR COMMENTS, UH, AROUND COMMON LANGUAGE, RIGHT? AND, AND FROM MY PERSPECTIVE, OR, YOU KNOW, THIS COMMON LANGUAGE AND NOT REINVENTING THE WHEEL, RIGHT? AND I THINK THEY, THEY SORT OF SUMMARIZED IT AS, WELL, THIS IS WHAT WE'VE BEEN SAYING FOR YEARS, RIGHT? AND, AND I THINK THAT, YEAH, I THINK WHAT IT'S DOING, AT LEAST IN MY MIND IS KIND OF TAKING SOME OF THAT COMMON

[02:40:01]

IS THERE ANY QUESTIONS FOR NED FROM, FROM, UM, THE TECH? OKAY.

UM, I BELIEVE BLAKE IS NEXT IN THE QUEUE.

HI, KEITH.

THIS, THIS IS BLAKE .

YOU'RE KIND OF CHOPPY.

YOU'RE COMING IN AND OUT A LITTLE BIT.

I THINK WE'VE LOST YOU COMPLETELY.

NOW, , BLAKE, ARE YOU THERE? YOU WANT, I SEE.

THREE, WE'RE, AS OF NOW, WE'RE AGNOSTIC ON THE, THE PILLAR VERSUS ATTRIBUTE CONVERSATION, AND WE'LL PROBABLY BE BETTER PREPARED TO ANSWER THAT ONCE WE SEE A, AN OPERATIONAL EXAMPLE.

LEMME SWITCH THE PHONE THEN.

GIVE HIM A MINUTE.

AND IF THAT DOESN'T WORK, WE CAN MOVE ON.

YEAH, GOOD IDEA TOO, TOO.

YOU WANNA TELL A JOKE OR SOMETHING? KEITH? I, I FORGOT TO BRING MY COOKIES.

I HAD GIRL SCOUT COOKIES AND I CAN YOU HEAR? DIDN'T BRING 'EM.

HI KEITH, CAN YOU HEAR ME NOW? WE CAN HEAR YOU NOW.

SOUNDS MUCH BETTER.

ALRIGHT, SORRY ABOUT THAT.

SWITCH THE PHONE REAL QUICK.

UH, HAPPY TO GIVE A QUICK OVERVIEW OF OUR COMMENTS AND THEN MAYBE CHECK OFF SOME OF THE HOMEWORK QUESTIONS.

UH, FROM OUR PERSPECTIVE, WE DO SEE POTENTIAL IN THIS FRAMEWORK THAT IT COULD BE USED AS A TOOL FOR ERCOT TO COMMUNICATE ITS PRIORITIES TO THOSE THAT AREN'T IN THE STAKEHOLDER TRENCHES.

AND, AND PART OF THE DISCUSSIONS FROM DAY TO DAY.

HOWEVER, WE ARE SEEKING SOME CLARITY OF ABOUT HOW THIS WILL BE PUT INTO PRACTICE AND HOW IT WILL SUPPORT, UH, EXPEDITED STAKEHOLDER DECISION MAKING AND COMPLETELY AGREE WITH NED HERE ABOUT, UH, BENCHMARKING THIS AGAINST THE RELIABILITY STANDARD.

WE THINK THAT IS A MUST.

UM, ADDITIONALLY, ONE QUESTION WE HAVE, AND ALSO ALONG THE SAME LINES OF THE TENSIONS THAT NED MENTIONED, IS HOW DOES ERCOT INTEND TO RESOLVE CONFLICTS BETWEEN COMPETING ATTRIBUTES AND TIMELINES? UH, FOR EXAMPLE, RUT ENHANCES RELIABILITY FOR THE HOUR.

IS THIS ANY BETTER IN WHICH THE COMMITMENT IS UTILIZED? HOWEVER, EXCESSIVE USE OF THE TOOL CAN LEAD TO WEAR AND TEAR ON A UNIT AND WORSEN RELIABILITY IN THE FUTURE.

NOT TO MENTION THE OUTTA MARKET ACTION LEADS TO FLAWED AND INEFFICIENT PRICE FORMATION.

UH, IN ANOTHER EXAMPLE ON COMPETING TIMELINES AND ATTRIBUTES, PR 1230 WAS CRAFTED TO MITIGATE MANUAL SOLUTIONS AROUND THE SOUTH TEXAS GTC.

UH, THIS ESTABLISHED A VERY COSTLY DYNAMIC SOLUTION OVER A SIGNIFICANTLY MORE AFFORDABLE AND TEMPORARY MANUAL SOLUTION.

UH, IF GREATER CONTEXT COULD HAVE BEEN PRESENTED ON THE COST DIFFERENCES UPFRONT, ALONG WITH THE TRANSMISSION SOLUTION THAT WAS OUT ON THE HORIZON, PERHAPS MORE MARKET PARTICIPANTS MIGHT HAVE OPTED TO TEMPORARILY TRADE OFF CORRECT PRICE SIGNALS FOR INCREASED AFFORDABILITY TO CONSUMERS.

UH, ALSO IN OUR COMMENTS, WE SPECULATED THAT MAYBE ERCOT INTENDED TO USE THIS FRAMEWORK TO SUPPORT A COMPARISON MATRIX BETWEEN MARKET DESIGN OPTIONS.

AND IF SO, WE WOULD RECOMMEND THAT MAYBE THE NEXT TIME THIS DISCUSSION COMES UP THAT WE SEE A REAL LIFE EXAMPLE OF HOW THIS WOULD BE OPERATIONALIZED, PERHAPS WITH A HISTORICAL DEBATE RANKING, THE OPTIONS THAT WERE ON THE TABLE.

AND THEN TAX WOULD COME BACK WITH A BETTER LIST OF RECOMMENDATIONS TO IMPROVE THE PROCESS.

SO THAT'S OUR ANSWER FOR, FOR NUMBER ONE.

FOR NUMBER TWO, IN TERMS OF THE BALANCE OF RELIABILITY AND AFFORDABILITY.

YOU KNOW, WE RECOGNIZE THERE ARE TRADE-OFFS BETWEEN THE TWO, AND WE CURRENTLY SUPPORT THE STANCE OF CONSERVATIVE OPERATIONS AND UNDERSTAND THAT OPERATING MORE RELIABILITY OR MORE RELIABLY COMES WITH INCREASED COST.

UH, WE BELIEVE THE BEST WAY TO SUPPORT THIS INCREASED COST IS THROUGH MARKETS IN WHICH THESE OPERATIONAL RESERVES ARE CURRENTLY VALUED AND REFLECTED IN AS PROCUREMENT.

WE THINK THAT SUPPORTING INCREASED RELIABILITY THROUGH OUT OF MARKET ACTIONS LIKE R IS SOMETHING WE SHOULD STAY AWAY FROM, UH, BOTH NOW AND ON INTO THE RTC ERA.

AND TO THAT END, ANY AS DEMAND CURVES EMPLOYED THROUGH THE RTC MARKET MUST BE IMPLEMENTED IN A WAY TO PROTECT THOSE RESERVES THAT ERCOT OPERATIONS NEEDS TO OPERATE RELIABLY.

UH, AND THEN FOR NUMBER

[02:45:01]

AND JUST WANT TO CONCLUDE BY SAYING THAT THIS FRAMEWORK DISCUSSION WILL ONLY BE HELPFUL FOR US IF IT HELPS GUIDE STAKEHOLDERS TO MAKE STAKE BETTER DECISIONS FASTER.

THAT WAS, UM, YOU KNOW, I, I DO THINK YOUR, YOUR COMMENT ABOUT AN EXAMPLE IS A GOOD ONE, UM, TO HELP SORT OF WALK THROUGH AN EXAMPLE.

I THINK THAT'S A GOOD TAKEAWAY, UH, FOR US WHEN WE, WE, WE'LL TALK ABOUT THIS AGAIN, BUT I THINK YOUR, YOUR IDEA OF LIKE, HEY, HOW WOULD YOU USE THIS? HOW WOULD WE LOOK AT THIS? HOW WOULD WE, YOU KNOW, LOOK THROUGH THAT I THINK IS, IS GREAT.

AND I, I DO THINK THAT THE IDEA OF YEAH, HOW DO WE IMPROVE THE STAKEHOLDER PROCESS AND, UM, I THINK, YOU KNOW, CREATING THAT COMMON, COMMON DIALOGUE AND HELPING, OH, I THINK SOMETIMES, AT LEAST WHAT I'VE OBSERVED IN, IN, IN THE TIME I'VE BEEN HERE IS THAT SOMETIMES, YOU KNOW, UM, WHETHER IT'S TRYING TO COMMUNICATE TO DECISION MAKERS, UH, POLICY MAKERS, REGULARS, WHOEVER, UM, AND TRYING, YOU KNOW, 'CAUSE WE DON'T ALWAYS SIT, NOT EVERYBODY'S IN ALL THOSE MEETINGS, RIGHT? AND I THINK THAT THAT QUESTION CAME UP, RIGHT? IT'S WHAT, YOU KNOW, THERE'S ALL THIS INFORMATION AND IF ONLY WE COULD BE IN ALL THESE MEETINGS AND LEARN EVERYTHING, AND IT'S LIKE, OH, IT'S HARD TO THINK ABOUT ALL THESE THINGS AND ARE THERE ARE THESE SORT OF WAYS THAT WE CAN CREATE THIS, THIS SORT OF MIND FRAMEWORK, RIGHT? SO THAT PEOPLE CAN ENTER INTO THAT TO SAY, OH, OKAY, YOU KNOW, RTC EFFICIENCY.

OKAY, GOOD.

SO WE CAN UNDERSTAND THAT THAT'S WHAT IT'S DOING, UM, OR WHAT IT'S NOT DOING RIGHT.

AND, AND I THINK THERE'S OBVIOUSLY BEEN A LOT OF DISCUSSION ABOUT, HEY, IT DOES THIS, BUT IT DOESN'T DO THAT.

AND, AND HELPING TO FRAME THAT DEBATE, BUT I THINK HAVING A GOOD EXAMPLE WALKING THROUGH THE SCENARIO, YOU KNOW, AND HOW IT MIGHT BE USED WOULD, WOULD BE USEFUL.

SO THANK YOU FOR YOUR COMMENTS.

I REALLY APPRECIATE IT.

UH, CAITLYN, DO YOU HAVE A QUESTION? HEY.

YEAH, CAN I, I HAD A QUESTION FOR BLAKE AND I OKAY AHEAD.

I DUNNO, GO AHEAD.

IF I'M REALLY DRILLING INTO THESE RIGHT NOW, I JUST WANNA MAKE SURE I'M FOLLOWING WHAT YOU SAID MAYBE ABOUT CONSIDERING THE, THE TRADE OFF FOR SOMETHING THAT MIGHT BE A SHORT TERM INCREASE IN PRICE VERSUS A LONG-TERM SOLUTION.

CAN YOU, CAN YOU REPEAT THAT BLAKE, JUST SO I UNDERSTAND? YEAH.

I SPECIFICALLY WAS, WAS SPEAKING TOWARDS NPRR 1230.

UH, I THINK, YOU KNOW, THERE WAS WIDE CONSENSUS THAT THE DYNAMIC SHADOW PRICE CAP IMPLEMENTATION WAS THE CORRECT SOLUTION, UH, IN TERMS OF PRICE FORMATION AND SIGNALING SIGNALING NEEDS ON THE SYSTEM.

UH, I WAS JUST GIVING A, A COUNTERPOINT THAT THE MANUAL SOLUTION WAS, UM, MUCH MORE AFFORDABLE AND TEMPORARY IN NATURE GIVEN THE FACT THAT THERE'S A TRANSMISSION SOLUTION FOR THE, THE SOUTH TEXAS GTC ON THE HORIZON.

AND SO THOSE ARE THE, THAT'S AN EXAMPLE OF DECISIONS THAT THAT TAC WILL LIKELY HAVE ON OUR, OUR PLATE GOING FORWARD IS WHERE WE'RE HAVING TO BALANCE, UH, YEAH, MAYBE A MORE CORRECT OPTION VERSUS, UH, SOMETHING THAT, UH, MAY BE TEMPORARY IN NATURE.

UM, THOSE TYPE OF, UH, COMPARISONS I THINK WOULD BE VERY USEFUL, UH, TO TAC TO, TO HELP US MAKE THE BEST DECISION POSSIBLE TO GOING FORWARD.

I, I SEE THAT AS A POTENTIAL USE CASE FOR THIS FRAMEWORK.

I THINK THAT THAT'S REALLY INTERESTING IF WE COULD USE THE FRAMEWORK FOR THAT.

YOU KNOW, I THINK THAT'S SOMETHING THAT COMPANIES DO, RIGHT? MAYBE, MAYBE TWO DIFFERENT INTERNAL DEPARTMENTS HAVE DIFFERENT OPINIONS, BUT, BUT ONE KIND OF OUTWEIGHS THE OTHER.

OR MAYBE YOU TAKE A, A SHORT TERM LOSS ON SOMETHING FOR A LONG TERM GAIN.

I THINK IT'S A LOT HARDER TO DO THAT IN A STAKEHOLDER ENVIRONMENT WHERE THERE'S COMPROMISE AND AND TRUST.

BUT I THINK THAT IS A REALLY INTERESTING THING THAT, THAT COULD BE EXPLORED VIA THIS FRAMEWORK.

AND I SEE KEITH NODDING BECAUSE HE'S ON CAMERA AND I'M NOT, BUT, BUT THAT'S, THAT'S A REALLY INTERESTING POINT THAT YOU RAISED.

ALL RIGHT, I'LL TURN IT BACK OVER TO, TO YOU, KEITH, AND IT LOOKS LIKE MARK IS IN THE QUEUE.

OKAY? YEP.

ALRIGHT, MARK, YOU'RE UP.

UH, THANK YOU.

CAN YOU HEAR ME? WE CAN HEAR YOU.

ON THE PURPOSE OF THIS FRAMEWORK, BUT I DID REVIEW THE COMMENTS FROM OTHER PARTIES AND, AND JUST, UH, REFLECTING ON THE DISCUSSION JUST, JUST NOW.

SO, UM, I FILED COMMENTS ON BEHALF OF THE ENTIRE TAC MARKET SEGMENT, UH, AS WELL AS THE WMS MEMBERS AND OTHER MEMBERS OF THE COMMERCIAL AND INDUSTRIAL CONSUMER MARKET SEGMENT.

UM, WE DID NOT COMMENT

[02:50:01]

AND I HAVE TO SAY THAT JUST FOR ME PERSONALLY, I, IT HAS NOT BEEN DEMONSTRATED TO ME THE PURPOSE OF THIS FRAMEWORK AND WHAT, WHAT USE IT WILL BE PUT TO IN MY MIND, HAVING BEEN WORKING IN THIS PROCESS FOR 25 YEARS.

I BELIEVE THE STAKEHOLDER PROCESS IS OUR FRAMEWORK, AND WE, WE WORK WITHIN THE ERCOT STRATEGIC PLAN, ADOPTED BY THE BOARD AND THE COMMISSION.

AND WE, THROUGH THIS PROCESS, UH, MAKE TRADE-OFFS AMONG THESE ELEMENTS AND OBJECTIVES.

AND, YOU KNOW, WE'RE A REGULATED RULE-BASED INDUSTRY, AND TO ME, THE RECORD THAT WE DEVELOP THROUGH ORAL AND WRITTEN COMMENTS IN THESE STAKEHOLDER MEETINGS IS CRITICAL.

AND I DON'T UNDERSTAND COMMENTS THAT SAY THE RECORD IS COMPLICATED.

NOT EVERYBODY CAN FOLLOW IT.

UH, THEY NEED TO FOLLOW IT, AND THAT'S HOW WE MAKE DECISIONS, AND THAT'S HOW ITEMS GET TO THE BOARD.

AND THE BOARD HAS AN ENTIRE ERCOT STAFF TO ASSIST THEM WITH UNDERSTANDING THE RECORD, AS DOES THE COMMISSION.

SO I, I'M NOT SURE I UNDERSTAND THAT COMMENT.

I BELIEVE THAT THIS PROCESS IS THE FRAMEWORK UNTIL IT IS DEMONSTRATED TO ME.

OTHERWISE, THIS PROVIDES GREATER VALUE, THOUGH, AS I SAY, THAT'S MY COMMENT JUST NOW, THAT IS NOT REFLECTED IN OUR JOINT COMMENTS.

SO IN OUR COMMENTS, WE TOOK THE STRATEGIC PLAN AS A GIVEN AND AND REFERENCED THE, THE AREAS OF THE STRATEGIC PLAN RELATED TO AFFORDABILITY.

THIS FRAMEWORK DOCUMENT IS DERIVATIVE OF THE STRATEGIC PLAN, AND AS DERIVATIVE OF THE STRATEGIC PLAN, I BELIEVE IT NEEDS TO REFLECT THE ELEMENTS OF THE THAT PLAN.

SO IF THERE IS GOING TO BE A LIST OF ATTRIBUTES THAT ARE CONSIDERED IN MAKING MARKET DESIGN REVISIONS, UH, WE BELIEVE THAT THOSE ATTRIBUTES SHOULD INCLUDE A STANDALONE AFFORDABILITY PLANK.

AND I BELIEVE THAT THAT IS EMPHASIZED IN THE STRATEGIC PLAN AS DEMONSTRATED BOTH IN OUR COMMENTS AND THE MATERIAL THAT KEITH PRESENTED AT THE BEGINNING.

I DO WANNA COMMENT A LITTLE BIT ON THE TRADE-OFFS BETWEEN RELIABILITY AND AFFORDABILITY.

UM, OBVIOUSLY THERE, THERE ARE ALWAYS TRADE-OFFS.

UH, WE DEAL WITH THOSE ALL THE TIME, BUT, BUT I DON'T THINK THAT RELIABILITY AND AFFORDABILITY ARE INCONSISTENT.

WE CAN PURSUE THEM IN TANDEM.

AND IT'S NOT LIKE IT'S A ZERO SUM GAME THAT IF WE GET SOME RELIABILITY, WE'RE GONNA LOSE SOME AFFORDABILITY AND VICE VERSA.

I, I THINK THROUGH ALL THE YEARS WE'VE BEEN WORKING THROUGH THIS PROCESS, WE HAVE PURSUED THOSE TWO THINGS IN TANDEM.

AND I, AND I FINALLY JUST WANNA COMMENT THAT CONSUMERS AS A MARKET SEGMENT HAVE ALWAYS SUPPORTED COMPETITIVE MARKETS BECAUSE WE KNOW THAT THE COMPETITIVE MARKET AS REFLECTED IN, UH, IN THE LAW, INTERPRETED THROUGH THE COMMISSION RULES AND INTO THE PROTOCOLS, IS THE BEST WAY TO PROVIDE RELIABILITY AT LOWEST COST TO CONSUMERS.

AND WE HAVE, THROUGH THIS ENTIRE PROCESS SUPPORTED LI RELIABILITY TARGETS AT LOWEST COST, AND WE'LL CONTINUE TO DO SO.

AND I THINK SOME OF THE, THE COMMENTS WERE, WERE ECHOED IN IN SOME OF THE OTHER, OTHER COMMENTS THAT WE'LL HEAR PROBABLY IN A SECOND.

UM, THIS IDEA OF, YOU KNOW, THE IMPORTANCE OF MARKETS, THE IMPORTANCE OF COMPETITIVENESS, I THINK THAT THAT'S, YOU KNOW, THAT'S SORT OF RANG TRUE AND THE IDEA OF AFFORDABILITY.

I KNOW WE'VE SORT OF TALKED ABOUT HOW DO WE, HOW DO WE THINK ABOUT THAT IN, IN THE FRAMEWORK AND, AND YOUR, I DON'T DISAGREE.

IT EXISTS.

AND, AND I THINK THAT, UM, FROM MY OWN PERSPECTIVE COMING AROUND TO SAY, HEY, WAIT A SECOND.

YOU KNOW, LET'S, LET'S BE CLEAR ON HOW WE WE ACHIEVE THAT.

AND, AND AGAIN, I THINK THAT, UH, IT, YOU, YOU'VE MADE SOME GOOD POINTS, THE COMMENTS MAKE SOME GOOD POINTS HERE ON, ON, ON, UH, HOW DO WE, HOW DO WE INCLUDE AFFORDABILITY AS PART OF THAT? AND, AND I, AND I APPRECIATE THAT.

AND SO I THINK WE'RE, WE'RE DEFINITELY CONSIDERING HOW THAT WOULD FIT WITHIN THAT FRAMEWORK FOR SURE.

SO, UM, APPRECIATE YOUR COMMENTS.

I DON'T, I DON'T HAVE ANY QUESTIONS AT THIS POINT, BUT, UM, UM, I'LL JUST PAUSE AND SEE IF, DOES ANYBODY HAVE ANY QUESTIONS SPECIFICALLY, UH, UH, FOR MARK AND HIS COMMENTS HERE?

[02:55:02]

I DON'T, I DON'T SEE ANY IN ADDITION.

SO I THINK, UH, IT LOOKS LIKE DOUG IS, UH, FROM TEVA, UM, IS NEXT IN THE LIST, SO WE CAN OFFER HIM, UH, AN OPPORTUNITY TO, TO MAKE SOME COMMENTS.

THANKS, KATE.

UM, YEAH, UH, WASN'T SURE EXACTLY WHEN I WAS GONNA JUMP IN, BUT, UH, YOU KNOW, MARK'S COMMENTS, UH, WERE VERY REFLECTIVE OF OUR OWN, SO NOW'S GIVEN THE APPROPRIATE TIME.

UM, YOU KNOW, WE ALSO AGREED THAT THERE SEEMS TO BE, UH, YOU KNOW, SORT OF A NATURAL, UH, INFERENCE THAT THERE'S AN OPPOSITION BETWEEN RELIABILITY AND AFFORDABILITY AND AGREE WITH MARK, THAT THAT IS NOT ALWAYS THE CASE, RIGHT? YOU KNOW, THE EFFICIENCIES OF THE MARKET THEORETICALLY SHOULD BE ABLE TO DELIVER YOU, UH, YOU KNOW, UH, A COMPETITIVE POWER BASE THAT PROVIDES GOOD PRICING, UH, AS WELL AS AFFORDABLE OPTIONS BECAUSE OPTIONS, YOU KNOW, THOSE WILL NATURALLY RISE TO THE TOP, RIGHT.

UM, AND THE SPIRIT OF THAT, YOU KNOW, UH, TEVA DID SPECIFICALLY SUGGEST ADDING THE ATTRIBUTES OF COMPETITIVENESS AND TECHNOLOGY OPENS TO SUPPORT ERCOT MISSION FOR MARKET AFFORDABILITY.

UNDER THE TWO PILLARS, UH, WE FELT THAT AFFORDABILITY WAS LESS REPRESENTED AMONG THE ATTRIBUTES THAT WERE, UH, PROVIDED, UM, THAN RELIABILITY.

AND, UH, YOU KNOW, WHILE THAT IS AN IMPORTANT BALANCE TO STRIKE, AND IT'S NOT ALWAYS UP TO US IN THIS ROOM, OBVIOUSLY, UM, YOU KNOW, WE, WE FELT THAT THAT PIECE COULD HAVE BEEN SHORED UP SLIGHTLY MORE.

UH, AND THEN THE OTHER SPECIFIC RECOMMENDATION THAT I'LL JUST DRAW FOLKS' ATTENTION TO THAT WE MADE, UM, WAS, UH, SORT OF HIGHLIGHTING THAT WE THINK, UH, MARKET FORECAST STABILITY, UH, SHOULD BE CONSIDERED A NECESSARY COMPONENT OF THE DEPENDABILITY ATTRIBUTE.

OBVIOUSLY, UH, TO GET THE BEST PARTICIPATION OUT OF YOUR TECHNOLOGIES, YOU WANT TO HAVE A MARKET THAT IS, YOU KNOW, PREDICTABLE AND INVESTIBLE, RIGHT? UM, AND HAVING, UH, YOU KNOW, SORT OF A FORECASTABLE ELEMENT UNDER THAT ATTRIBUTE, UM, IS NECESSARY TO ACHIEVE THOSE THINGS.

UM, DATA TRANSPARENCY, OF COURSE, IS ALSO AN ELEMENT OF THAT.

UM, IF WE DIDN'T REALLY KNOW HOW TO WRAP ALL OF THOSE THINGS INTO DIFFERENT ATTRIBUTES TO SUGGEST, RIGHT? BUT JUST WANTED TO MAKE, UH, THE POINT THAT THEY SHOULD BE CONSIDERED, UM, AS PIECES OF THAT PARTICULAR ATTRIBUTE.

UM, I THINK THAT REALLY SUMMARIZES THE COMMENTS THAT I WANNA MAKE TODAY.

OF COURSE, YOU KNOW, WE HAD, UM, GENERAL QUESTIONS ABOUT THE APPLICABILITY OF THE FRAMEWORK, BUT BETTER SUGGESTIONS, UH, HAVE ALREADY BEEN MADE, SO I WON'T LABOR WITH THAT.

UM, APPRECIATE YOU TAKING THE TIME FOR, UH, ME TO PROVIDE OUR COMMENTS.

THANKS, DOUG.

I, I GUESS I JUST HAVE ONE QUESTION FOR YOU AROUND TECHNOLOGY.

I THINK THE COMPETITIVENESS, I, I, I REALLY UNDERSTAND I, OR I THINK I UNDERSTAND WHAT, WHAT YOU GUYS ARE GOING THERE AND TECHNOLOGY OPEN, AND, UH, I THINK I UNDERSTAND WHAT THAT MIGHT MEAN, BUT I JUST WANNA CLARIFY IS I THINK WHAT YOU'RE SAYING IS THERE COULD BE, YOU KNOW, MULTIPLE TECHNOLOGICAL OPTIONS THAT COULD SOLVE A PROBLEM.

AND I, IF I THINK WHAT YOU'RE TRYING TO SAY IN THIS OPTION IS TO SAY WE SHOULD BE OPEN TO THOSE DIFFERENT OPTIONS, UM, BUT NOT NECESSARILY, UH, POINTING TO A SPECIFIC ONE.

RIGHT.

AND, AND I'M THINKING, YOU KNOW, YES, IF, IF, UM, OKAY, SO THERE, THERE MAY BE SOME, YEAH, YOU'RE HEADING UP PRETTY CLOSE THERE, KEITH.

THAT ERCOT HAS, UM, AND WE'D LIKE TO SEE THAT CONTINUE.

UH, JUST THE IDEA THAT, UM, PARTICULARLY, YOU KNOW, IN RECENT YEARS WE'VE HAD DIFFERENT EVALUATIONS OF, UH, WHAT KINDS OF TECHNOLOGIES CAN PROVIDE SPECIFIC GRID SERVICES, PARTICULARLY IN THE DAY AHEAD MARKET.

UM, THIS IS ALSO COMING UP, OF COURSE, RIGHT NOW WITH THE DEVELOPMENT OF DRRS.

UM, SO IF IT WASN'T CLEAR ENOUGH, YEAH.

UH, WE JUST WANTED TO MAKE THE POINT THAT, UM, YOU KNOW, THE, THE PARTICIPATION IN VARIOUS SERVICES SHOULD BE BASED ON THE ATTRIBUTES THAT DIFFERENT TECHNOLOGIES CAN PROVIDE.

UM, AND THAT, UH, YOU KNOW, THE GOAL OF THE SERVICE SHOULDN'T BE TO BE DESIGNED AROUND THE ATTRIBUTES OF ANY ONE PARTICULAR TECHNOLOGY.

UM, YOU KNOW, THIS IS ANOTHER GREAT EXAMPLE, OF COURSE, IS, UH, THE A DER PILOT, YOU KNOW, WHICH HAS MADE PROGRESS MUCH FASTER IN TERMS OF, UH, YOU KNOW, AGGREGATING DISTRIBUTED ENERGY THAN OTHER PROGRAMS ON OTHER GRID SYSTEMS UNDER ORDER 2222.

UM, SO WE APPRECIATE THAT FORWARD LOOKING, UH, OUTLOOK

[03:00:01]

UM, AND WE THINK THAT, YOU KNOW, THAT PIECE DESERVES CONSIDERATION IN THE FRAMEWORK OVERALL.

MM-HMM .

YEAH, AND, AND I, I'M JUST SORT OF SEEING YOUR COMMENT HERE IN, IN YOUR REPORT ON, YOU KNOW, THE DRRS AND ENERGY STORAGE, I THINK, UM, YOU KNOW, TO THE EXTENT THAT IT IS NOT LEGISLATED DIFFERENTLY, RIGHT? BECAUSE I THINK THE WAY WE, WE SORT OF SEE IT IS, UM, UM, THE, THE WAY THAT DRS IS, IS THAT THE RULES THAT ARE, ARE, UH, ARE THERE, UM, THE TECHNOLOGY THAT FITS WITHIN THE STRUCTURE THAT HAS BEEN PROVIDED, UM, I THINK THAT'S BEEN THE DIRECTION, UM, WE'RE, WE'RE STARTING TO MOVE DOWN.

UM, AND SO I THINK THAT'S APPROPRIATE.

UM, I THINK TO THE EXTENT THAT SOMETHING IS POTENTIALLY LEGISLATED A CERTAIN WAY, UM, I THINK THE COMMENT EARLIER OR IN SOME OF THE COMMENTS I READ AS WELL, IF, IF IT'S BEEN LEGISLATED OR REGULATED OR, OR WHATEVER, WE, WE OBVIOUSLY HAVE TO FOLLOW THAT, RIGHT? BUT TO THE EXTENT THAT, UM, UH, THE RULES ARE WRITTEN IN A PARTICULAR WAY THAT ALLOW FOR THAT, THEN I THINK THAT, UH, I DON'T, I DON'T DISAGREE THAT YEAH, IF, IF, IF WE HAVE A STRUCTURE AND YOU FIT WITHIN THE STRUCTURE, THEN, THEN THAT, THAT MAKES SENSE.

AND I COMPLETELY UNDERSTAND, UH, YOU KNOW, BOTH THE, UH, THE LIMITATIONS, UH, AND SOME OF THE FRUSTRATIONS AROUND THAT.

YOU KNOW, I DON'T MEAN TO BE DISMISSIVE OF, UH, YOU KNOW, THE CONSTRAINTS AROUND WHAT IS LEGISLATED, UM, YOU KNOW, BUT JUST, UH, YOU KNOW, ENCOURAGING THE MAXIMUM TECHNOLOGY OPENNESS THAT WE CAN MANAGE WITH ANY, UH, SERVICE THAT'S PUT IN FRONT OF OUR COT, UH, FOR DEVELOPMENT.

SO, UH, AGAIN, NOT TO BE DISMISSIVE OF THAT.

WE VERY MUCH APPRECIATE IT, UM, AND WE APPRECIATE, UM, YOU KNOW, THE WAY THAT OUR CONS WILLINGNESS TO WORK WITHIN THE FRAMEWORKS PRESENTED TO THEM HAS BEEN EVIDENCED THROUGHOUT DR.

S'S, UH, DEVELOPMENT.

SO LOOKING TO, YOU KNOW, CONTINUE TO HAVE THAT BACK AND FORTH.

UH, ANY ANY QUESTIONS OR COMMENTS ON, ON, UH, DOUG'S COMMENTS HERE? CLARIFICATIONS, RIGHT? UH, DOESN'T APPEAR TO BE ANY ADDITIONAL, UH, COMMENTS OTHER THAN WE, WE DO HAVE MICHAEL JULES, THANK YOU, KEITH.

UH, MICHAEL JEWEL, AND, UM, I'M SPEAKING ON BEHALF OF CONSERVATIVE TEXAS FOR ENERGY INNOVATION.

UNFORTUNATELY, MATT WELCH WAS NOT ABLE TO, TO BE ON THE CALL, UH, TODAY, AND HE JUST ASKED IF I COULD, COULD CHIME IN REAL FAST.

AND, AND HONESTLY, UH, FIRST OFF, THANK YOU VERY MUCH FOR HAVING THIS DISCUSSION.

I THINK IT'S REALLY HELPFUL.

I THINK, YOU KNOW, WHEN, WHEN CTI PREPARED THEIR COMMENTS THERE, THERE REALLY WAS KIND OF THIS QUESTION ABOUT, UM, TRYING TO UNDERSTAND WHAT IS THE PURPOSE OF THE FRAMEWORK AND, UM, REALLY GETTING THAT CLEAR.

I THINK MARK DREYFUS DID A GREAT JOB ON TOUCHING BASE, UH, WITH REGARD TO THAT.

UH, BOTH MARK AND DOUG HAVE TOUCHED BASE WITH REGARD TO THE IMPORTANCE OF COMPETITION, AND, AND THAT JUST THE, THE FOCUS ON COMPETITION AND THE COMPETITIVE MARKET, WHICH REALLY HAS SERVED OUR ACCOUNT VERY WELL, IS SOMETHING THAT SEEMS TO BE LACKING, UH, IN THE FRAMEWORK.

AND THAT WAS SOMETHING THAT, THAT CTI WAS CONCERNED ABOUT.

AND THEN FINALLY, THIS DISCUSSION THAT YOU JUST HAD WITH DOUG WITH REGARD TO BEING OPEN, UH, YOU KNOW, TECHNOLOGY OPEN IS ANOTHER THING THAT THE CTI VERY MUCH SUPPORTS.

YOU KNOW, YOU THINK ABOUT, UM, ERCOT LOOKING AT THE 7 65, UH, TRANSMISSION AS, AS A NEW TECHNOLOGY, THE WORK THAT ERCOT HAS BEEN, UH, DOING TO IMPLEMENT, UM, YOU KNOW, THE DISTRIBUTED ENERGY RESOURCES AND THE ADA PILOT PROJECT, AND LOOKING AT NEW WAYS OF DOING THAT, LOOKING AT THE INTEGRATION OF, OF ENERGY STORAGE.

UH, THERE ARE NEW RESOURCES THAT ARE COMING TO THE TABLE THAT REALLY PROVIDE SOME AMAZING OPPORTUNITIES.

AND, UM, YOU KNOW, IN ONE SENSE, IT DOES REQUIRE ERCOT TO THINK OUTSIDE THE BOX, UH, TO, YOU KNOW, NOT THINKING THAT WE'VE GOTTA MAKE EVERYTHING DO THINGS THE SAME OLD WAY THAT HISTORICALLY HAS BEEN DONE IN THE INDUSTRY, BUT RECOGNIZE THAT, YOU KNOW, LOOKING AT SOME NEW WAYS ACTUALLY CAN OPEN UP SOME, UH, POTENTIALLY MUCH MORE EFFICIENT COMPETITIVE PATHS TO RELIABILITY THAN WE HAVE HAD BEFORE.

UH, AND SO THIS TECHNOLOGY OPENNESS IS SOMETHING THAT, THAT CTI REALLY DOES, UH, DOES SUPPORT, UH, THANK YOU VERY MUCH.

REALLY DO APPRECIATE IT.

LOOKS LIKE WE HAVE CHRIS KIRBY FOR, UM, SOME COMMENTS ON, UH, A P'S COMMENTS.

UM, AND JUST CHECKING OUR QUEUE HERE.

[03:05:01]

UM, I DON'T HAVE A WHOLE LOT TO ADD, BUT I JUST WANTED TO HIGHLIGHT THAT, YOU KNOW, WE, WE HAD CONCERNS REALLY AROUND ALL THREE OF THE THEMES THAT, UH, YOU POINTED OUT IN YOUR PRESENTATION TODAY, BUT I THINK WE'RE, WE'RE, WE HAVE A LOT OF QUESTIONS AROUND THE PURPOSE, THE INTENT, THE USE.

UM, I THINK CRA'S, UH, SPECULATIONS ABOUT THIS BEING POTENTIALLY USED IN MARKET DESIGN DISCUSSIONS OR SOMETHING LIKE THAT REALLY HIGHLIGHTS THE KINDS OF THINGS THAT, UH, WE'RE CONCERNED ABOUT.

BECAUSE THIS FRAMEWORK AND THE WAY THE DIFFERENT RESOURCES ARE TREATED UNDER THESE ATTRIBUTES REALLY WILL SET THE TABLE FOR THOSE KINDS OF DISCUSSIONS.

AND WE REALLY THINK THAT THIS, UM, YOU KNOW, ANYTHING THAT'S DEPARTING FROM THE COMPETITIVE MARKET WE SHOULD BE CAUTIOUS ABOUT AND SHOULD, UM, YOU KNOW, IF THE, IF, IF THIS IS GONNA BE USED IN A WAY THAT DEPARTS SIGNIFICANTLY FROM THE COMPETITIVE MARKETS, WE THINK THERE SHOULD BE COMMISSION, UH, INPUT OR POTENTIALLY EVEN LEGISLATIVE INPUT DEPENDING ON EXACTLY THE DETAILS, UH, OF THE PROPOSAL.

SO THAT WAS REALLY IT.

WE, WE PROVIDED COMMENTS ON THE SPECIFIC ATTRIBUTES AS WELL, BUT I WON'T, UH, GET INTO ALL THOSE, BUT I JUST WANTED TO PROVIDE OUR THOUGHTS AT A HIGH LEVEL.

I, AND I, I DO THINK THAT ONE OF THE THEMES OVER THE LAST FEW COMMENTERS WAS, UM, YOU KNOW, ON COMPETITIVE MARKETS.

AND I, I THINK, UH, THE COMMENT IS, WELL, THAT'S KIND OF FROM ABOVE, RIGHT? AND, AND I AGREE, YOU KNOW, THAT, UM, HAVING, HAVING BEEN A PART OF COMPETITIVE MARKETS SINCE THE LATE NINETIES, I CAN SAY THAT, UM, YES, THEY, THEY HAVE, UH, IT'S IMPORTANT TO, TO MAINTAIN THAT.

AND, UM, AND I THINK THE IDEA OF, YOU KNOW, OBVIOUSLY THE COMMENT ABOUT, HEY, YOU KNOW, SHOULD WE CONSIDER THE COMPETITIVENESS AND HOW THAT CAN MODIFY THE, THE SECOND PILLAR, I THINK IT'S A GREAT COMMENT.

AND I, I DO THINK THAT, UM, THE, THE INTENT WAS NOT TO MOVE AWAY FROM, UH, PROMOTING COMPETITIVE MARKETS, RIGHT? SO I, I THINK THAT, UH, ERCO MORE THAN, MORE THAN MOST MARKETS, I THINK EVEN, UM, UH, DOES THE IMPORTANCE OF THAT IS, IS PARAMOUNT, AND WE RELY ON THAT, AND WE'RE GONNA CONTINUE TO RELY ON THAT.

SO, UH, I APPRECIATE THE COMMENTS AND, UM, I'LL JUST PAUSE AND, AND SEE IF ANYBODY HAS ANY, ANY FINAL QUESTIONS ABOUT THIS.

OTHERWISE, UM, I'LL CONTINUE FORTH WITH, WITH MY, UM, MY PRESENTATION.

SO I'LL PAUSE.

SO WE TOOK THESE COMMENTS, BUT YOU HAVE MORE PRESENTATION, SO, SO WE'LL STILL HAVE TIME IF THERE'S NON COMMENTERS WHO WANNA DISCUSS ANYTHING THAT COME UP IN THE REST OF YOUR PRESENTATION.

IS THAT RIGHT? I, I, I JUST HAVE A COUPLE QUICK SLIDES, UM, UH, TO GO, BUT YES.

ALL RIGHT, SO THIS WAS OUR STAKEHOLDER DISCUSSION SLIDE.

FRAMEWORK AS WE INITIALLY RECEIVED? AND I GUESS MY SECOND QUESTION IS, UH, I REALLY APPRECIATE THE COMMENTS THAT LED AND OTHERS MADE TALKING ABOUT, IT'S HARD TO KNOW WHAT THE, WHAT'S TO SAY ABOUT THIS WITHOUT KNOWING ITS PURPOSE, UM, MM-HMM .

AND SO IF WE MOVE TO THE NEXT, WE DID GREAT.

YOU DID REALLY GREAT.

YEAH, IT WAS A GOOD DISCUSSION, SO, OH, YEAH.

SO NEXT STEPS, RIGHT? SO, UM, YEAH, OUR, OUR LAST SLIDE REALLY, AND, AND OBVIOUSLY STILL PROVIDE OTHERS AN OPPORTUNITY IF, IF, TO THINK ABOUT WHAT, WHAT FINAL THOUGHTS THEY MAY HAVE.

BUT AGAIN, UM, IT, IT WAS GREAT TO HAVE THE COMMENTS.

IT WAS, UM, THAT YOU, YOU, YOU WROTE OUT, IT WAS GREAT TO READ THEM.

IT WAS GREAT TO HAVE THE DIALOGUE HERE TODAY.

I THINK IT WAS GREAT THAT EVERYONE HAD A CHANCE TO LISTEN IN.

UM, YOU KNOW, I THINK PART OF IT IS, IS IN LIGHT OF THESE COMMENTS, IF THERE'S SOME TWEAKS, UM, THAT, THAT WE'RE LIKELY TO DO THAT, UM, UH, I THINK WE'RE GONNA CONTINUE TO ANTICIPATE DISCUSSION IN THE COMING WEEKS AND MONTHS HERE.

I, I DON'T THINK WE'RE GONNA SAY, HEY, WE'RE, WE'RE STILL WORKING ON IT, UH, A YEAR FROM NOW.

I LIKE THE IDEA OF HAVING AN EXAMPLE.

THAT WAS A GOOD ONE.

UM, UH, AND, AND FOLLOWING UP, UH, ON, ON THAT.

SO I, I THINK, YOU KNOW, HOW WOULD THIS WORK AND, AND, AND, AND SHOW HOW THAT MIGHT WORK AS, AS PART OF THE PROCESS, HELP, HELP IDENTIFY AND CLARIFY WHAT THE PURPOSE IS, UM, MAKE SOME REFINEMENTS TO SOME OF THE, I, UM, THE, THE ATTRIBUTES BASED ON THE DISCUSSIONS THAT WE'VE HAD HERE TODAY AND, AND, AND COME BACK AT A, AT A, A SUBSEQUENT TAP MEETING IS, IS REALLY WHAT WE'RE THINKING.

BUT LOOKS LIKE WE DO HAVE A COMMENT FROM ERIC GOFF, AND SO, UH, WE'LL, WE'LL SORT OF TURN IT TO HIM.

YEAH, I GUESS JUST BASED ON THIS SLIDE, I HAVE SOME QUESTIONS.

UM, SURE.

UM, ONE IS, UM, HAVE YOU THE PRESENTATION AND IF SO, HOW, SINCE WE LAST WE FIRST TALKED ABOUT ATTACK, UM, OR IS IT STILL THE SAME

[03:10:01]

AND I THINK IT REALLY IMPACTS THE CONTENT IF WE KNOW WHAT THE PURPOSE IS.

AND SO I, I'D ENCOURAGE YOU TO REALLY THINK THROUGH THAT QUESTION AND, AND ANSWER THAT BEFORE WE FIGURE OUT WHAT, WHAT ELSE TO DO WITH IT.

SO, SO, SO ERIC, I THINK YOUR COMMENTS ARE, UM, YOU KNOW, YOU KNOW, HELP, HELP, HELP, UM, CLEARLY, UM, IN, IN, IN CLEAR TERMS, CLARIFY WHAT THE PURPOSE AND AND INTENT IS.

SO THAT, THAT WAS A COMMENT, UM, WE RECEIVED WITHIN THE COMMENTS AND OBVIOUSLY YOU'VE, YOU'VE MADE AND, AND EMPHASIZED THAT AS WELL.

THAT'S THE KEY TAKEAWAY THAT, THAT WE TOOK FROM, FROM THIS DISCUSSION AND THE COMMENTS THAT PEOPLE, UH, PROVIDED.

I THINK THE, THE NEXT POINT IS AROUND REFINEMENT IS LIKE, WELL, THERE WAS SOME GOOD COMMENTS BOTH THAT, THAT, AGAIN, LIKE THIS IDEA OF EMPHASIZING COMPETITIVENESS WAS, THAT WAS SOMETHING THAT, UH, HADN'T BEEN DISCUSSED BEFORE, BUT WOW, THAT'S A REALLY GOOD ONE IS, IS THAT WE SHOULD HAVE COMPETITIVE SOLUTIONS, RIGHT? YOU KNOW, THAT, THAT WE SHOULD, SHOULD BE AN ATTRIBUTE OF WHAT WE'RE TRYING TO DO.

I THINK THE, THE DISCUSSION ABOUT AFFORDABILITY, RIGHT? YOU KNOW, THESE ARE THINGS THAT, UH, ARE HELPFUL AND, AND WE CAN MAKE SOME REFINEMENTS AND TWEAKS, UM, TO HELP WITH THAT.

UH, SO CLARIFY INTENT AND PURPOSE, HELP DRAW OUT AND FURTHER REFINE THE DIFFERENT ATTRIBUTES WE HAVE ABSOLUTELY, BASED ON THE FEEDBACK.

UM, AND, UH, BRING IT BACK, UM, USING SOME EXAMPLES.

THIS, THIS IS WHAT THE, THE HOPE I WOULD HAVE, UH, OVER THE COMING, COMING WEEKS HERE IS, IS TO BE ABLE TO DO SOMETHING AT A SUBSEQUENT MEETING.

SO HOPEFULLY THAT ANSWERS YOUR QUESTION, BUT THAT'S WHAT WE'RE LOOKING FORWARD TO DOING.

AND HOW AND FOR WHAT PURPOSE? IT'S ODD.

UH, LOOKS LIKE WE HAVE MARK BRUCE IN A COMMENT FROM YOU.

HI, KEITH.

IS MY AUDIO OKAY? YEP, VERY GOOD.

LOUD AND CLEAR.

EXCELLENT.

YEAH, SO, YOU KNOW, I'M A CONSULTANT IN THE SPACE HERE, AND I'M NOT SPEAKING ON BEHALF OF ANY PARTICULAR CLIENT INTEREST HERE.

UM, BUT LIKE MARK DREYFUS, UM, YOU KNOW, I'M SOMEBODY WHO'S BEEN AT THIS, IN THIS ISO FOR ABOUT A QUARTER CENTURY.

UM, SO I'VE SEEN INITIATIVES LIKE THIS COME AND GO OVER THE YEARS.

WE, AS, UH, STAKEHOLDERS COLLECTIVELY HAVE TAKEN A FEW STABS AT ESTABLISHING SOME HIGH LEVEL PRINCIPLES, FRAMEWORKS, UM, APPROACHES.

WE'VE USED DIFFERENT WORDS OVER THE YEARS IN DIFFERENT PACKAGES OF ISSUES.

ONE OF THEM WAS AROUND THE INTEGRATION OF, YOU KNOW, NEW TECHNOLOGIES TO THE SYSTEM.

ONE OF THEM WAS AROUND THE, UH, THE TASK OF DESIGNING THE NODAL MARKET, UH, MAKING THE TRANSITION FROM ZONAL.

AND, YOU KNOW, EVERY TIME WE'VE ATTEMPTED TO DO THIS, UM, YOU KNOW, ONE GROUP OF MARKET PARTICIPANTS THINKS, YOU KNOW, WELL, THIS IS A GREAT OPPORTUNITY TO SORT OF PREDETERMINE SOME POLICY QUESTIONS.

AND IT NEVER REALLY TURNS OUT THAT WAY BECAUSE WHEN IT COMES TIME TO VOTE ON ISSUES, PEOPLE GET DOWN IN THE WEEDS AND VOTE ON THE MERITS OF THE ISSUES AND ON THEIR POSITIONS AND, YOU KNOW, ON THEIR MARKET, PARTICIPANTS SEGMENT CONCERNS AND THE FRAMEWORK GETS LEFT ASIDE.

UM, A LOT OF MARKET PARTICIPANTS FEAR, YOU KNOW, HEY, THIS IS SOMEONE TRYING TO IMPOSE A WORLDVIEW THAT PREDETERMINES OUTCOMES AGAINST ME.

AND IT DOESN'T EVER REALLY TURN OUT THAT WAY EITHER.

FOR ALL THE SAME REASONS.

I THINK MARK DREYFUS, AS HE OFTEN DOES, MADE PRETTY EXCELLENT POINTS IN THAT, YOU KNOW, REALLY THIS STUFF IS SUBSERVIENT TO THE ERCOT STRATEGIC PLAN.

I MEAN, TO THE EXTENT THAT THIS IS A DOCUMENT FOR ERCOT INC.

UM, YOU KNOW, ERCOT STRATEGIC PLAN IS REALLY THE PLACE WHERE THE BOARD LAYS OUT ITS VISION FOR THE ORGANIZATION, FOR THE PEOPLE WHO WORK FOR THE ORGANIZATION IN TERMS OF THEIR EDUCATION, THEIR TRAINING, THEIR FOCUS, THEIR EXPERTISE, UM, AND THE STRATEGIC PLAN IS A GREAT PLACE FOR THAT GOVERNING BOARD TO MAKE THOSE KINDS OF STRATEGIC AND ASPIRATIONAL STATEMENTS.

THIS TO EVERYBODY ELSE'S POINT IS SOMETHING ELSE.

MAYBE, YOU KNOW, WHY

[03:15:01]

AS, AS, AS ERIC POINTS OUT, IT'S, IT'S ODD TO TRY TO COMMENT ON THIS WITHOUT REALLY KNOWING WHERE IT FITS IN THE PANTHEON OF DOCUMENTS, YOU KNOW, THAT WE ARE ALL SUPPOSED TO BE PAYING ATTENTION TO.

THE FACT OF THE MATTER IS, IS, YOU KNOW, ERCOT INC DOESN'T GET TO MAKE BY LEVEL ASPIRATIONAL POLICY DETERMINATIONS AND DOCUMENTS LIKE THIS.

YOU KNOW, ALL THIS TALK ABOUT COMPETITIVENESS, THAT ISSUE'S BEEN SETTLED SINCE SEPTEMBER 1ST, 1999.

TITLE TWO, TEXAS UTILITIES CODE CHAPTER 39.001 MAKES REALLY, REALLY CLEAR, YOU KNOW, COMPETITIVE SOLUTIONS ARE TO BE USED WHENEVER COMPETITIVE SOLUTIONS ADDRESS THE ISSUE TO BE ADDRESSED.

UM, THE LEGISLATURE SETS POLICY, THE COMMISSION BY AUTHORITY, GRANTED BY THE LEGISLATURE SETS POLICY.

ERCOT DOES AN IMPLEMENTER OF POLICY WITH THE BEST TECHNICAL GUIDANCE THAT THE STAKEHOLDER PROCESS CAN GIVE TO THE STAFF WHO HAS TO EXECUTE ON THAT.

I LOVE THESE DISCUSSIONS.

I CAN'T TELL YOU HOW MANY HOURS I'VE SPENT AND HOW MANY BARS DRINKING, HOW MUCH BOURBON, HAVING THESE EXACT DISCUSSIONS, BUT WHAT DO THEY REALLY MEAN AT THE END OF THE DAY? HOW DO THEY REALLY GET USED? I'VE NEVER SEEN ONE OF THESE FRAMEWORKS SURVIVE THE FIRST ROUND OF VOTING ON ANY PARTICULAR ISSUE.

IT'S LIKE LEGISLATIVE INTENT.

IT MEANS EVERYTHING UNTIL IT MEANS NOTHING, AND IT NEVER REALLY MEANS ANYTHING.

AT THE END OF THE DAY, THE WORDS ON THE PAPER THAT PEOPLE ARE VOTING FOR IS WHAT ENDS UP MATTERING.

UM, SO WHILE I APPRECIATE THE DISCUSSION, WHILE I HAVE SOME APPREHENSIONS ABOUT, YOU KNOW, WHERE IT'S GOING AND HOW IT'LL BE USED, AT THE END OF THE DAY, I'M SORT OF COMFORTED BY THE FACT THAT NONE OF THESE REALLY EVER GO ANYWHERE.

UM, SO LIKE ERIC, LIKE MICHAEL, LIKE MARK, LIKE OTHERS WHO HAVE COMMENTED HERE, I'M REALLY CURIOUS ABOUT, YOU KNOW, WHAT THESE REFINEMENTS WILL LOOK LIKE AND WHAT FUTURE PRESENTATIONS ON THIS MAY LOOK LIKE.

UM, BUT I DON'T KNOW.

I WOULD HONESTLY JUST KIND OF RECOMMEND BY AND LARGE THAT ERCOT INC UH, STICK TO ITS KNITTING.

THERE'S, UH, PLENTY OF, UH, WORK TO BE DONE, UM, ON MARKET DESIGN ON OTHER THINGS.

UM, BUT AS INSTRUCTED BY ORDER OF THE COMMISSION BY RULE OF THE COMMISSION BY STATUTE ADOPTED, UH, THROUGH THE LEGISLATIVE PROCESS, UM, WE'VE, YOU KNOW, KIND OF ALREADY GOT GUIDANCE ON THOSE POINTS, I GUESS IS HOW I WOULD SUM UP.

WELL, THANKS.

THANK YOU, MARK, FOR YOUR COMMENTS.

BUT I WILL SAY I DISAGREE, UM, WITH, UM, WITH YOUR, I APPRECIATE YOUR, YOUR BACKGROUND AND EXPERIENCE.

I THINK, UH, THIS AGREEMENT HERE IS THAT, UM, YOU KNOW, HAVING, HAVING BEEN IN SOME OTHER REGIONS, I THINK WE DON'T WAIT FOR FERC TO TELL US WHAT TO DO.

UM, IT'S BETTER TO MAKE YOUR OWN YOUR OWN, UH, IF YOU CAN BLAZE A PATH THAT THAT CAN HELP THE COMMISSION, UM, DETERMINE, UM, WHAT A, A REASONABLE APPROACH TO IMPLEMENTING RELIABILITY.

IT'S ONE THING TO SAY YOU WANT A RELIABLE MARKET.

WELL, HOW DO YOU WANT A RELIABLE MARKET? HOW DO YOU WANT COMPETITIVE MARKETS? AND WHAT WE'RE SEEING HERE ARE THINGS THAT, THAT HELP, HELP EMPHASIZE HOW, HOW YOU CAN ACHIEVE THAT, THAT RELIABILITY AND THAT, UM, THAT, UH, AFFORDABILITY, RIGHT? SO THESE ARE THE THINGS THAT MODIFY THOSE TRAITS THAT THEY WANNA DO.

UM, AND, UM, I THINK IF WHAT WE'RE SAYING IS HOW CAN WE ACHIEVE THAT RELIABILITY THAT THEY WANT? THIS IS HOW WE CAN DO THAT.

AND SO, UM, THIS IS, THIS IS, THIS IS JUST A WAY THAT BRINGS THAT FORWARD.

WE WANT TO BE COMPETITIVE, AFFORDABLE, WE REQUIRE, UM, FLEXIBILITY TO BE RELIABLE AND, AND HELP, HELP IMPROVE THAT DIALOGUE AS PART OF THAT INTENT, RIGHT? HOW DO WE ACHIEVE THAT, UM, UH, THAT RELIABILITY THAT WE NEED YOU AND, AND IN A NEW CONSTRUCT, RIGHT? AND I THINK THAT'S, THAT'S WHAT WE'RE TRYING TO HELP BRING ABOUT.

AND, AND, AND THAT GETS TO THE PURPOSE, AND WE CAN HELP HELP SHAPE THAT, THAT PURPOSE AS WELL.

SO, UM, AND, UH, I DISAGREE WITH MARK.

I THINK THERE'S A LOT WE CAN DO.

I THINK, UNFORTUNATELY, UM, WHEN WE TALK ABOUT INITIATIVES LIKE RTC AS AN EXAMPLE, WE GET HUNG UP ON THE FACT THAT, UM, YOU KNOW, WE MIGHT GET HUNG UP, IS THAT WELL IT'S, IT'S, IT'S EFFICIENT AND YES, IT'S AN

[03:20:01]

EFFICIENT THING.

AND THAT'S A PART OF OUR STRATEGIC OBJECTIVE IS TO HAVE EFFICIENT MARKETS AND THAT CREATES THAT.

AND IS THAT A BAD THING? NO, BUT IT DOES HAVE CONSEQUENCES, RIGHT? AND IT DOES HAVE, UM, SIDE EFFECTS, RIGHT? AND, AND CAN WE TALK ABOUT THOSE SIDE EFFECTS IN A WAY THAT ALLOWS TO THINK ABOUT, YOU KNOW, IN, IN, IN A STRAIGHTFORWARD WAYS? WELL, IT, IT, IT, IT AFFECTS AVAILABILITY, POTENTIALLY.

WELL, OKAY, WELL, WELL, WELL, DO WE HAVE A GAP THERE? AND, AND PCM WAS AN EXAMPLE OF A GAP FILLER.

UH, AND WE DON'T HAVE PCM ANYMORE.

SO, UM, IS THERE A WAY TO THINK ABOUT THAT MARKET DESIGN IN, IN THAT CONTEXT? SO, SO YEAH, I, I, I WILL SAY I DO DISAGREE WITH THE COMMENTS.

I DO THINK THAT THERE'S A POTENTIAL, UM, I RECOGNIZE THAT, THAT IT WILL REQUIRE STAKEHOLDERS TO THINK OF IT, BUT I DO THINK THERE'S AN OPPORTUNITY TO USE AN EXAMPLE, UM, AND, AND SHOW HOW THIS COULD BE USEFUL IN THE PROCESS.

SO I'LL JUST JUST REALLY QUICKLY, KEITH, I MEAN, I APPRECIATE THE, UH, THE DIFFERENT VIEWS AND THE PERSPECTIVE, BUT ISN'T THAT EXACTLY CASE IN POINT, RIGHT? I MEAN, YOU'RE TALKING ABOUT A FRAMEWORK WHERE YOU VALUE, YOU KNOW, FLEXIBILITY AND PCM COULD BE AN ANSWER, AND PCM ISN'T THERE.

WELL, WHY ISN'T PCM THERE? BECAUSE ERCOT DOESN'T SET POLICY AND SOMEONE ELSE TOLD YOU THAT P CM ISN'T THERE? YEAH, KIND OF.

I THINK JUST BUTTRESSES THE POINT, BUT ANYWAY, I WON'T BELABOR IT.

AGAIN, THAT DOESN'T, UM, ELIMINATE THE GAP THAT MIGHT EXIST, RIGHT? YOU CAN TAKE AWAY PCM AS A POLICY AND SAY, WE DON'T WANT THAT, THAT'S FINE.

AND, AND THAT'S, THAT'S UP TO THE COMMISSION.

THAT'S UP TO OTHERS, AND THAT'S OKAY.

UM, BUT THAT, THAT CAN LEAVE A GAP.

AND THAT'S OUR CONCERN.

CAN DO CURRENTLY TO MAKE A FAR BIGGER IMPACT ON BOTH AFFORDABILITY AND RELIABILITY AT THE SAME TIME.

UM, WE GOT, GOT A COUPLE COMMENTS, UH, ERIC, YES, I'D LIKE TO FOLLOW UP WITH MARK AND MARK ON THAT AND STRONGLY AGREE WITH THEM.

UM, I THINK MARK BRUCE MADE SOME WONDERFUL POINTS.

AS I'VE SAID IN THE CHAT, I'VE BEEN AT THIS FOR 25 YEARS.

I STARTED AT THE COMMISSION IN 1999.

TO GIVE YOU A LITTLE BIT OF MY BACKGROUND, I WAS PART OF THE ORIGINAL, WHAT WAS THEN THE INTERNAL MARKET MONITOR CALLED THE MARKET OVERSIGHT DIVISION AND WAS IN CHARGE OF A CO-LEAD ON A COUPLE MAJOR PRICE PRICING, RULEMAKINGS AND NODAL, AND ALSO RESOURCE ADEQUACY.

SO I'VE SEEN THIS PROCESS UP CLOSE AND PERSONAL, NOT ONLY FROM BEING ON STAFF, BUT ALSO BEING A STAKEHOLDER FOR OVER 15 YEARS.

UM, THE WHOLE STRUCTURE OF THE GOVERNANCE IS WILDLY DIFFERENT THAN FERC.

AND I DON'T THINK YOU'RE, YOU, IT ISN'T REALLY APPLICABLE.

FERC IS A, IS, YOU KNOW, IS KIND OF WHAT THE CHIN, THE OLD CHINESE SAYING, THE EMPERORS, YOU KNOW, THE MOUNTAINS ARE TALL AND THE EMPER IS FAR AWAY.

WE HAVE A THREE TIER GOVERNANCE PROCESS SET UP BY SB SEVEN IN 1999 THAT'S BEEN ENHANCED OVER THE YEARS.

THAT IS DYNAMIC, THAT HAS STAKEHOLDER INPUT AT, AT THE ERCOT LEVEL, AT THE PUCT LEVEL AND LEGISLATURE.

AND AS IT HAS EVOLVED, THE TEXAS LEGISLATURE DEALS WITH POLICY, UH, OR PUCT DOES IMPLEMENTS POLICY AND ALSO COMES UP WITH RULES.

AND THAT ERCOT BEEN MORE THE TECHNICAL ADVISOR.

SO YOU HAVE A STRUCTURE NOW WHERE IF ISSUES COME UP, THEY, THEY PERCOLATE VERY QUICKLY AND VERY DYNAMICALLY, UH, AMONG THOSE THREE GROUPS IN ONE CITY, ESSENTIALLY, AUSTIN, TEXAS, RIGHT? AND YOU HAVE ONE STATE GOVERNMENT INVOLVED IN THIS.

SO THERE ARE REALLY, TO BE BLUNT, HONEST, THERE ARE NO LARGE POLICY GAPS.

THERE MAY BE SOME DISCUSSIONS ON HOW TO DEAL WITH ISSUES, BUT THOSE PROBLEMS ARE, ARE BEING MADE WELL AWARE, UH, PEOPLE, UH, POLICY MAKERS ARE MADE WELL AWARE OF THAT AND RESPOND TO THEM VERY QUICKLY COMPARED TO THE FERC WORLD, RIGHT? AND YOU DON'T HAVE TO WORRY ABOUT 12 STATE GOVERNMENTS OR MORE LIKE YOU DO IN MY OR PGM.

IT'S ALL DONE HERE.

SO TO SAY THERE'S SOME KIND OF POLICY GAP, UH, IS NOT REALLY APPLICABLE SO MUCH TO ERCOT.

IF YOU WANNA TALK ABOUT PROCESSES, YOU CAN SAY, WELL, WE CAN CONSIDER THESE CERTAIN THINGS AS AS AND TWEAK THEM, THAT'S FINE.

BUT YOU HAVE A SYSTEM NOW THAT IS SECOND TO NONE IN THIS COUNTRY IN TERMS OF DEALING WITH WHY DYNAMIC MARKETS.

AND JUST LOOK AT WHAT THIS MARKET HAS DONE, JUST INCORPORATE SOLAR WIND STORAGE FAR FASTER THAN ANYWHERE ELSE.

AND IT COMES BECAUSE OF THAT THREE TIERED PROCESS THERE.

AND, YOU KNOW, NOW YOU SAID YOU'RE DOING AD AD ERS, VPPS ARE GETTING INVOLVED, HOWEVER YOU WANNA CALL THEM.

SO THERE IS NO SHORTAGE OF POLICY BEING DEBATED AND MADE.

AND PCM FELL APART BECAUSE IT REALLY, TO THE MIND OF LEGISLATURE DIDN'T ADDRESS THE REAL PROBLEM THAT THEY WANT, THEY FELT WAS BEING ADDRESSED.

IT WASN'T FROM A LACK OF IGNORANCE, IT WAS JUST THAT THEY HEARD THE DEBATE AND CAME OUT AND SAID, YOU KNOW, WE HAVE A LIMIT HERE.

THE PUCT SAID, LET'S PUT IT ON THE SHELF.

WE HAVE MORE IMPORTANT THINGS GOING ON.

SO WHILE IT'S STILL ON THE BOOKS, IT'S BEEN PUSHED ASIDE BECAUSE IT HAS BEEN DETERMINED AFTER SERIOUS REVIEW THAT THERE ARE OTHER THINGS THAT WE

[03:25:01]

OKAY, KEITH, I SEE, UM, TWO MORE COMMENTS.

WE'VE BEEN AT THIS ABOUT AN HOUR.

UM, I THINK YOU ARE MAYBE DONE WITH YOUR PRESENTATION, BUT I, I THINK IT WOULD BE HELPFUL.

UM, YOU KNOW, I, I THINK IT, IT IS SORT OF A GOOD TWO-WAY DISCUSSION WHERE WE'RE GETTING A LOT OF THE, THE BACKGROUND, UM, TO YOU ABOUT THE, THE ERCO MARKET AND, AND HOW WE'VE BEEN WORKING ON THINGS HERE.

BUT I THINK IT WOULD BE MAYBE MORE PRODUCTIVE IF WE FOCUSED ON, ON NEXT STEPS WHAT WE'RE GONNA TAKE FOR THIS GOING FORWARD.

'CAUSE I, I THINK THERE PROBABLY ARE SOME AVENUES WORTH EXPLORING.

UM, AND INSTEAD OF KIND OF DEBATING PAST POLICY DECISIONS, WHICH, WHICH MY UNDERSTANDING IS THE FRAMEWORK ISN'T INTENDED TO, TO DO REALLY ANYWAYS.

SO WHY DON'T WE, WE TAKE A COUPLE OF MORE COMMENTS SORT OF WITH NEXT STEPS AND YOU KNOW, HOW WE'RE GONNA MOVE FORWARD IN MIND.

THANK YOU, CAITLYN.

I APPRECIATE THAT.

LET'S GO TO, YEP, GO AHEAD.

LET'S GO TO DOUG AND THEN NED, OR, OR IF YOU, IF YOU HAVE SOME COMMENTS FOR KEITH, PLEASE GO AHEAD.

NOPE, NOPE.

WE CAN DO DOUG AND NED AND WRAP IT UP.

THANK YOU, CAITLIN.

KEITH.

THANK YOU, KEITH.

UM, YEAH, MY COMMENT IS, UH, A BIT MORE FORWARD LOOKING.

UM, YOU KNOW, UH, MARK AND ERIC'S POINTS ARE WELL TAKEN, YOU KNOW, THAT CONTEXT IS IMPORTANT.

UM, BUT ALSO TO THE POINT ABOUT, YOU KNOW, IN TERMS OF NOT SETTING POLICY, BUT IMPLEMENTING, UH, MARKET DESIGN THAT IS HANDED DOWN, UM, AND THE DYNAMICISM OF, YOU KNOW, SORT OF THE THREE GOVERNMENTAL AGENCY, UH, RELATIONSHIP THAT WAS HIGHLIGHTED.

YOU KNOW, IF THE FRAMEWORK IS INTENDED TO, UH, SUPPORT THE STRATEGIC PLANNING, RIGHT? UM, MAYBE ANY KIND OF REPORTING THAT, UH, COMES OUT OF THE FRAMEWORKS IMPLEMENTATION OR USING IT AS AN EVALUATION TOOL CAN BE SEEN AS, YOU KNOW, EFFECTIVE AND NECESSARY FEEDBACK TO THE OTHER AGENCIES IN TERMS OF HOW THEIR SET POLICY IS AFFECTING THE MARKET AND HOW EFFECTIVELY IT IS, YOU KNOW, CREATING THE MARKETPLACE THAT WE WANT.

UM, YOU KNOW, WHILE ERCOT ISN'T STRICTLY SETTING POLICY ON THE MARKET ON ITS OWN, UM, IT IS THE IMPLEMENTER AND THE EXPERT IN THIS CASE IN TERMS OF HOW WELL THE MARKET IS FUNCTIONING.

SO I THINK, YOU KNOW, THAT OPPORTUNITY, UH, TO PROVIDE FEEDBACK BACK UP THE CHAIN, UH, IS EQUALLY IMPORTANT TO UNDERSTANDING KO'S ROLE IN SETTING POLICY.

UM, AND I THINK THAT THE FRAMEWORK COULD BE UTILIZED FOR THAT PURPOSE.

SO JUST WANTED TO MAKE THAT POINT QUICKLY.

THANK YOU BOTH FOR LETTING ME GET THAT IN.

TERM COMPETITIVE MARKETS IS BEING USED AS A EUPHEMISM FOR NO CHANGES WHATSOEVER, YOU KNOW, THAT'S, I DON'T THINK THAT'S PRODUCTIVE.

THANK YOU, DOUG.

ALL RIGHT, NED, YOUR LAST ONE.

OKAY, THANKS, KEITH.

UM, I, YOU KNOW, I JUST LISTENED TO SOME OF THOSE COMMENTS AND, AND WAS A LITTLE CONFUSED WHERE IT, UH, KIND OF WENT, WENT SIDEWAYS.

BUT, YOU KNOW, I, I'LL, I'LL SAY I PERSONALLY DIDN'T VIEW THE FRAMEWORK AS INTENDED TO CREATE POLICY.

I ACTUALLY SAW IT AS INTENDED TO HELP WITH THE POLICY IMPLEMENTATION AND COORDINATING FEEDBACK MECHANISMS FOR STAKEHOLDERS, YOU KNOW, TO PROVIDE, UH, TO ERCOT TO IN TURN PROVIDE TO POLICYMAKERS, UH, FOR REQUIREMENTS THAT ARE ALREADY EMBEDDED IN STATUTE AND PUC RULES.

LIKE, FOR INSTANCE, PURE 39, 1 59 SAYS THAT THE COMMISSION SHALL ENSURE THAT THE INDEPENDENT ORGANIZATION CERTIFIED UNDER SECTION 39, 1 51, WHICH IS ERCOT, UM, YOU KNOW, ESTABLISHES REQUIREMENTS TO MEET RELIABILITY NEEDS OF THE POWER REGION, AND DETERMINES QUANTITY AND CHARACTERISTICS OF ANCILLARY SERVICE, ANCILLARY AND RELIABILITY SERVICES NECESSARY TO ENSURE APPROPRIATE RELIABILITY.

AND THEN THE PUCS RULE, AND, UH, 25, 5 0 8 FOR THE RELIABILITY STANDARD REQUIRES ERCOT TO CONDUCT A RELIABILITY ASSESSMENT AND MAKE RECOMMENDATIONS TO THE PUC ON MARKET DESIGN CHANGES TO RESOLVE ANY SHORTCOMINGS THAT ARE IDENTIFIED.

SO NONE OF THAT, I, I DON'T SEE ANYTHING IN THAT THAT SAYS ABANDONED COMPETITIVE MARKETS AND DON'T THINK ERCOT OR ANYONE HERE IS IN FAVOR OF THAT OR ADVOCATING FOR THAT.

BUT I, YOU KNOW, I, I DO THINK THAT THERE ARE SOME STATUTORY AND REGULATORY OBLIGATIONS THAT HAVE BEEN PLACED ON ERCOT AND, YOU KNOW, THIS FRAMEWORK IS AT LEAST AN OPPORTUNITY FOR STAKEHOLDERS TO ENGAGE IN THAT.

SO, UM, AT LEAST WANTED TO, TO VOICE THAT UNDERSTANDING, OR, OR IT SEEMED LIKE THERE MIGHT HAVE BEEN SOME DIFFERENT, UH, DIFFERENT PERSPECTIVES THERE.

UM, YOU KNOW, AND, AND ALSO JUST, I WOULD PROBABLY BE REMISS IF I DIDN'T SAY, YOU KNOW, IF IF THE

[03:30:01]

I DO THINK WE HAVE, YOU KNOW, WITH THE RELIABILITY STAMP, WE DO HAVE SOME THINGS THAT WE COLLECTIVELY NEED TO TRY TO COORDINATE, ABSOLUTELY WANT TO DO THAT WITH COMPETITIVE MARKET STRUCTURES AND FRAMEWORKS, BECAUSE THAT DOES GET YOU THE BEST OUTCOME FOR THE LOWEST COST.

AND I THINK EVERYONE'S GONNA AGREE ON THAT POINT.

BUT, UM, I JUST WANTED TO VOICE THAT TO CLOSE THINGS OUT.

SORRY.

ALRIGHT, THANK YOU.

KEITH, I THINK YOU WERE ON MUTE IF YOU WERE TALKING.

OH, CAN YOU HEAR ME NOW? WE CAN HEAR YOU NOW.

YEAH, I SAID THANK YOU.

I'M TURNING IT BACK TO YOU.

I APPRECIATE THE LIVELY DEBATE.

THIS WAS FUN, SO APPRECIATE IT.

THANK YOU ALL.

WELL, UM, I APPRECIATE THAT.

WHAT, WHAT ARE NEXT STEPS FOR THIS? UM, I, I GOT A FEW COMMENTS THAT MAYBE A, A WORKSHOP WOULD BE GOOD IF, IF WE ARE GOING TO HAVE FURTHER DISCUSSION ON THIS, BUT, UM, I THINK ERIC GOFF ASKED A QUESTION TO THIS END TOO, BUT, BUT WHAT DO WE EXPECT KIND OF N NEXT STEP TO THIS AS FAR AS REVISION AND, YOU KNOW, GETTING A CLEAR ANSWER ON, ON HOW WE'RE USING THIS AND, AND WHEN.

YEAH, I, I THINK, YOU KNOW, THIS SORT OF LAST DISCUSSION WAS, WAS GOOD ABOUT, UM, INTENT, RIGHT? SO, YOU KNOW, THOSE THREE COVER THE THREE THINGS, RIGHT? WE NEED TO TALK ABOUT INTENT.

THERE WAS SOME DISCUSSION ABOUT INTENT AND, UM, SO WE NEED TO TALK ABOUT THAT.

UM, OBVIOUSLY REFINEMENTS, UM, AND I DON'T KNOW THAT THERE WAS ENOUGH, THERE WAS AS MANY QUESTIONS AROUND THE BALANCE.

I THINK THERE WAS GENERALLY AN AGREEMENT ON THAT BALANCE.

AND SO I THINK WE WANNA COVER THAT SOME, SOME ADDITIONAL REFINEMENT AND, UH, HIGHLIGHT PURPOSE AND INTENT.

SO THOSE ARE GONNA BE WHAT IT IS, HOW WE DO THAT IN THE FORUM.

UH, WE'LL FIGURE THAT OUT.

UM, BUT WE WILL COME BACK TO A SUBSEQUENT TACT TO AT LEAST DISCUSS HOW WE'RE GONNA DO THAT, WHETHER IT'S A WORKSHOP OR ANOTHER TACT DISCUSSION, HOWEVER YOU WANNA DO IT.

BUT THOSE ARE THE NEXT STEPS AS AS I SEE IT.

SO YOU GUYS AT RICCA WILL TALK MORE ABOUT IT AND THEN YOU AND I CAN MAYBE CONNECT OFFLINE AND FIGURE OUT, UM, IF IT'S JUST AT A TECH MEETING OR IF IT'S A WORKSHOP AND, AND HOW WE GIVE PEOPLE NOTICE AND GET FEEDBACK AHEAD OF THAT.

YOU BET.

DOES THAT SOUND SOUNDS GOOD? YEP.

ALRIGHT, THANK YOU, KEITH.

OKAY, NEXT UP IS TIKA.

UM, WITH THE PROPOSED CHANGES TO THE AS METHODOLOGY, THIS IS FOR THIS YEAR, AND THESE ARE, ARE CHANGES DUE TO THE MPRR 1257 AND THE THAT WE, UH, HAVE ON THE COMBO PAL BALLOT FOR TODAY.

HELLO.

GOOD AFTERNOON, TAK.

SO THIS, UH, YOU SET IT UP WELL, CAITLYN, UH, THIS IS, UH, THIS, UH, AS METHODOLOGY CHANGE TIES WITH THE NPRR AND NOVA THAT YOU APPROVED EARLIER TODAY.

THE, THAT N-P-R-R-N-P-R 1257 ESTABLISHED A, UH, UH, ESTABLISHED A FRAMING OF, UH, AROUND IDENTIFYING THE MAXIMUM AMOUNT OF RRSA SINGLE RESOURCE COULD PROVIDE.

UM, THE, UH, AND IN THE PREAMBLE OF THE NPRR, WE TALK ABOUT THE, THE, THE NUMBER THAT YOU'RE SEEING HERE.

SO WE ARE SIMPLY MAKING SURE THAT, UH, THIS, UH, BY, BY PUTTING THIS DRAFT RED LINE OF THE AS METHODOLOGY OUT THERE, WE ARE TRYING TO PACKAGE IT UP, UH, AS FAR AS APPROVALS GO, UH, ALONG WITH THE NPRR.

I'LL PAUSE, I'LL SEE IF THERE ARE ANY QUESTIONS FOR ME.

ANY QUESTIONS? OKAY, I SEE BILL BARN NIKA, UM, DID, APOLOGIES IF YOU PROVIDED THIS AT ANOTHER WORKING GROUP, DOES THIS CHANGE HAVE ANY MATERIAL IMPACT ON THE AMOUNT OF RESPONSIVE RESERVE PROCUREMENT QUANTITIES, OR IS IT NEGLIGIBLE? NO, THIS WILL NOT HAVE A CHANGE ON THE, UH, PROCUREMENT QUANTITIES.

MM-HMM .

[03:35:01]

SO WE WOULD, UM, WE'D BE LOOKING TO PUT ON OUR COMBO BALLOT TO ENDORSE THE 2025 AS METHODOLOGY IS PREVENTED BY ERCOT TODAY.

ANY ISSUES WITH PUTTING THAT ON THE COMBO BALLOT? OKAY.

APPRECIATE THE OPPORTUNITY.

THANK YOU NETIKA.

AND THANK YOU FOR, UH, WORKING WITH, WITH JUPITER ON THE PHONE AS WELL.

UM, NOW WE ARE ON TO THE ANNUAL REC REPORTING REQUIREMENT WITH RYAN.

THANK YOU VERY MUCH, KAILIN, IT'S RYAN KING.

CAN YOU ALL HEAR ME OKAY? YES, WE CAN.

EXCELLENT.

WELL, IT'S MY PLEASURE TO BE ABLE TO PRESENT THE 2024, UH, ANNUAL, UH, R REPORT.

UH, AS WE LIKE TO KICK OFF THIS PRESENTATION EACH YEAR, I'D LIKE TO REFER TO THE PROTOCOLS THAT, UH, SORT OF GOVERN THE, THE, THE RATIONALE FOR THIS REPORTING REQUIREMENT.

SO, AS SECTION 5.8 OF THE PROTOCOLS OUTLINES, UH, THIS REPORT FOCUSES ON WHAT ARE SOME OF THE CAUSES OF RUCK, UH, AS WELL AS WHAT WE ARE SEEING IN TERMS OF THE SETTLEMENT OUTCOMES.

THIS PRESENTATION, AT LEAST IN TERMS OF FORMAT, WILL PROBABLY LOOK SIMILAR TO SOME OF THE PRESENTATIONS FROM PREVIOUS YEARS.

UH, BUT WE ALWAYS TRY AND INCORPORATE SOME OF THE FEEDBACK THAT WE DO RECEIVE SUB FROM SUBSEQUENT, UH, PRESENTATIONS, BUT IT WILL LARGELY FOLLOW A SIMILAR FORMAT FROM PREVIOUS YEARS.

NEXT SLIDE PLEASE.

SO THIS SLIDE HIGHLIGHTS SOME OF THE KEY OBSERVATIONS THAT WE HAVE SEEN FROM 2024.

UH, TO BEGIN WITH, WE HAVE SEEN A, UH, REDUCTION OVERALL IN THE AMOUNT OF RUCK, UH, IN 2024, ROUGHLY 1800 RESOURCE HOURS VERSUS, UH, ABOUT 2,500 RESOURCE HOURS IN 2023.

UM, AND THIS IS ALSO WELL BELOW THE 7,900 OR SO RESOURCE HOURS THAT WERE OBSERVED IN 2022.

UH, THE FACTORS, AGAIN, SOME OF THEM CAN CONTRIBUTE ALL THE TIME, MAYBE ALL OF THEM CONTRIBUTE SOME OF THE TIME, BUT SOME OF THE THINGS THAT CAN CONTRIBUTE TO THE REDUCTION IN UNIT COMMITMENT, UH, GENERAL CHANGES IN RESOURCE OWNER, REAL-TIME PRICE EXPECTATION.

WE ALSO DID SEE LOWER AVERAGE FUEL PRICES COMPARED TO 2023, AND WE ALSO SAW AN INCREASE IN THE AMOUNT OF LARGELY ONLINE CAPACITY FROM THINGS LIKE SOLAR AND ENERGY STORAGE RESOURCES.

APRIL AND OCTOBER HAD THE HIGHEST AND SECOND HIGHEST AMOUNT OF UNIT COMMITMENT OBSERVED IN 2024.

UH, LOOKING AT THOSE PARTICULAR MONTHS, THEY WERE NOT NECESSARILY CONCENTRATED ON CERTAIN DAYS, BUT DISTRIBUTED OVER SEVERAL DAYS THROUGHOUT THE MONTH.

WE DID NOTICE THAT TOWARDS THE END OF 2024, WE DID SEE, UH, SOMETHING OF AN UPTICK IN RUCK, AT LEAST FOR THE FOURTH QUARTER COMPARED TO THE SAME PERIOD IN, IN 2023.

UM, AND PROBABLY THE OTHER THING TO NOTE IS THAT WE DID SEE SOMETHING OF A CHANGE IN TERMS OF THE OVERALL COMPOSITION OF RUX IN 2024 COMPARED TO 2023.

SO IF YOU LOOK AT 2023, THE AMOUNT OF RUX TO MANAGE THERMAL CONGESTION, FOR EXAMPLE, WAS ROUGHLY 3%, WHEREAS IN 2024, UM, THAT NUMBER IS ROUGHLY ONE THIRD OF THE, THE TOTAL RESOURCE HOURS.

WE ALSO SAW THAT, UH, THE RUCKS FOR CONGESTION WERE, WERE CONCENTRATED IN THE LAST THREE MONTHS OF, OF 2024.

UM, I'LL BE GETTING INTO THE, THE DETAILS OF SOME OF THE CAUSES, UH, IN SOME OF THE SUBSEQUENT SLIDES, BUT, UM, MAYBE I'LL JUST PAUSE THERE.

I SEE WE HAVE A COUPLE OF QUESTIONS IN THERE.

UM, I THINK THAT'S A PLACE THAT WE MIGHT WANNA DIG INTO TO FIGURE OUT IF WE, IF WE HAVE SOMETHING, UM, IF INCORRECT.

YEAH, I'LL JUMP IN.

I THINK SINCE I'M IN THE QUEUE, UM, I APPRECIATE THIS OVERVIEW.

I'M GLAD THAT WE HAVE THIS ANNUAL REQUIREMENT BECAUSE IT WILL TRIGGER CONVERSATIONS LIKE WE'LL HAVE TODAY.

UM, SOMETIMES THE CONVERSATION IS SHORT AND SWEETENED, AND MAYBE IT'LL BE THIS TIME TOO, BUT I APPRECIATE THAT WE HAVE THIS TRIGGER, UM, GETTING INTO IT, IF YOU'LL GET INTO THIS LATER ON, I CAN HOLD MY QUESTION.

UM, BUT TO THE EXTENT THAT WE'RE SEEING SIMILAR PATTERNS FOR ROCKING FOR CONGESTION, UM, I WONDER IF WE WILL BE ABLE TO DIG INTO THE PRICE SIGNAL FOR THE GENERATORS THAT ARE BEING COMMITTED AND WHY THEY'RE NOT SELF COMMITTING.

UM, IF THERE'S AN ONGOING PATTERN,

[03:40:01]

THANK YOU, ERIC.

SO I MIGHT SUGGEST THAT WHEN WE GET TO THAT SECTION, UM, AS I SAID, I WILL HAVE SOME POINTS TO SHARE, BUT THAT MIGHT BE A, UH, AN OPPORTUNITY TO, TO ENGAGE IN SOME FURTHER DISCUSSION ON THOSE POINTS.

UH, NEXT SLIDE PLEASE.

SO, TO START WITH THAT, WE LIKE TO SHARE A KIND OF A BREAKOUT OF THE TOTAL QUANTITIES OF RUCKS, UH, THAT WE SAW FOR 2024.

ONE THING TO NOTE ON THIS SLIDE IS COMPARED TO TO PREVIOUS YEARS, IS WE HAVE PROVIDED SOME ADDITIONAL GRANULARITY, UH, SPECIFICALLY AROUND THE OPTOUT AND NON OPTOUT DECISIONS.

UM, WE'VE KIND OF SEPARATED THESE, UM, BY CAPACITY AND CONGESTION.

I THINK THE IMPETUS FOR THAT WAS JUST TO, TO OUTLINE SOME OF THE CHANGES THAT WE SAW IN THE, THE COMPOSITION OF R THAT I, UH, REFERRED TO ON AN EARLIER SLIDE.

UM, WE ALSO DISTINGUISH BETWEEN THE RESOURCE HOURS AND EFFECTIVE RESOURCE HOURS.

SO, SO JUST FOR THOSE WHO MAY NOT BE FAMILIAR WITH THE DISTINCTION THERE, UM, REF, UH, WE REFER TO EFFECTIVE RESOURCE HOURS GENERALLY THROUGHOUT THIS PRESENTATION.

AND EFFECTIVE RESOURCE HOURS REFLECT THE HOURS THAT THE RESOURCE WAS PHYSICALLY ONLINE.

AND THAT VALUE IS USUALLY SOMETHING LESS THAN INSTRUCTED HOURS DUE TO DELAYS OR FORCED OUTAGES THAT THE RESOURCES MAY FACE.

SO GOING THROUGH, UH, THE BOTTOM PART OF, OF THIS TABLE, UM, YOU'LL SEE SOME AVERAGE MEGAWATT QUANTITIES.

SO YOU'LL GENERALLY SEE SOME BROAD SIMILARITIES IN TERMS OF THE, UH, AVERAGE LSL AND HSL FOR BOTH THE OPTOUT AND THE NON OPTOUT, UH, CONDITIONS.

WHERE YOU'LL SEE SOME, SOME MORE DISTINCTION IS THAT THE AVERAGE OPT DEV BASE POINT IS USUALLY HIGHER.

AND IN THAT CASE, THE WHERE THEY'VE OPTED OUT OF R SETTLEMENT, THE, THE OFFER FLOOR IS NOT APPLICABLE ANYMORE.

SO YOU WOULD GENERALLY EXPECT TO SEE THESE RESOURCES TO BE DISPATCHED TO HIGHER LEVELS.

UH, AND ADDITIONALLY, AS THAT BASE POINT INCREASES, YOU'D NATURALLY PULL UP THE LOW DISPATCH LIMIT VALUE BASED ON THE RAMP RATES OF THE RESOURCES BEING COMMITTED.

OH, SORRY.

IT LOOKS LIKE WE DO HAVE SOME, SOME QUESTIONS.

HEY, RYAN.

TIMELINE, BUT I DON'T NECESSARILY HAVE THE, THE SPECIFIC EXAMPLES THAT WOULD INDICATE THAT THE, THE QSE DOES NOT HAVE TIME TO ADJUST ITS, UM, RESOURCE STATUS.

THIS IS ANDY WITH CONSTELLATION.

UM, I WANTED TO HIGHLIGHT THE CLEAR DISCREPANCY HERE BETWEEN THE OPT OUT AND NON-OP OUT.

LOOKS LIKE IT'S SOMEWHERE BETWEEN FIVE AND, UH, LESS THAN 10%.

IN TERMS OF THE OPTOUT, UH, ONE OF THE THINGS I THINK THAT IS LEADING TO THIS ISSUE IS, UM, NPRR 10 92, WHENEVER WE, WE DISCUSSED THE, UM, THE CHANGE TO THE OFFER FLOOR, UH, COMPONENT OF THAT WAS TO CHANGE ALSO THE PERIOD THAT RESOURCES WERE ABLE TO OPT OUT.

I THINK WHAT WE'VE FOUND HERE RECENTLY, I KNOW I CAN SPEAK PERSONALLY THROUGH CONSTELLATIONS FLEET, IS THAT THERE ARE INSTANCES NOW WHERE, UM, WHEN ERCOT ISSUES THE R ORDER, THE NEW RULES ARE SUCH THAT IMMEDIATELY FOLLOWING THE R ORDER, THE UNIT DOESN'T HAVE THE ABILITY TO OPT OUT DUE TO THE NEW LEAD TIME THAT IS THEN REQUIRED, WHICH ESSENTIALLY FORCES A UNIT TO ESSENTIALLY, UM, BE RUT.

SO, UM, THAT'S SOMETHING THAT WE EXPERIENCED EVEN AS RECENT AS YESTERDAY WHERE THE SAME THING HAPPENED.

UM, TO FOLLOW ONTO THAT, WHENEVER ERCOT ADDS A RUCK COMMAND TO AN EXISTING RUCK, THE UNIT ALSO CANNOT OPT OUT DUE TO THE EXISTING RULES.

SO, UM, THAT IS SOMETHING TOP OF MIND FOR CONSTELLATION.

I'M, I, I'VE TALKED WITH A FEW OTHER GENERATORS, IT SOUNDS LIKE THEY'RE ALSO BEING IMPACTED BY THIS.

UM, SO IT'S SOMETHING I'M CURIOUS IF ERCOT, IF YOU, HAVE YOU SEEN ANY CHANGE IN, UM, THE AMOUNT OF RESOURCES ABLE TO SELF COMMIT, UM, DUE TO THAT SHIFT? AND IT, IT'S CERTAINLY SOMETHING, UH, CONSTELLATION WOULD LIKE TO ADDRESS, UM, AS WE ENTER 2025? YEAH, SO I, I THINK IN THE, IN THE NEXT SLIDES, I TALK A LITTLE BIT ABOUT THE, UM, OPT OUT AND, AND THE TIMELINE.

UM, I DON'T KNOW IF I HAVE ANY NECESSARILY EX SPECIFIC EXAMPLES OTHER THAN WE HAVE SEEN A, A DECREASE.

AND I THINK ONE OF THE THINGS THAT MAY BE CONTRIBUTING TO THAT IS, IS NPRR 10 92, THE OPT OUT SNAPSHOT

[03:45:01]

UM, BUT, BUT MAYBE THAT'S SOMETHING WE CAN FOLLOW UP WITH IN A SUBSEQUENT, UH, SUBSEQUENT DISCUSSION.

YES, THANKS RYAN.

AND, AND JUST FOR NOTE, I SEE BRIAN'S NOTE IN THE, IN THE COMMENTS THERE.

I THINK THAT'S A GREAT IDEA IN ADDING THIS AS A POTENTIAL TACKLE OR WHATEVER MARTHA DECIDES THAT NEEDS TO LOOK LIKE, WHETHER IT'S AN IS ACTION ITEM OR A TACKLE.

I'M, I'M SUPPORTIVE OF THAT MOVING FORWARD SO THAT, UM, WE HAVE A PLATFORM TO CONTINUE THESE DISCUSSIONS WITH ERCOT.

THANK YOU, RYAN.

HEY, UM, SORRY, OTHER QUESTIONS? NO, GO AHEAD.

I WAS, I WAS JUST GONNA GO TO MICHAEL.

BRIAN, DO YOU NEED TO BE IN THE QUEUE? UH, JUST DIDN'T WANT ANDY TO BE LONELY THERE WITH HIS COMMENTS.

UM, I THINK, UM, PROBABLY MOST ANYONE THAT HAS, UH, A GAS GENERATOR AND HAS BEEN RUGGED, UM, HAS HAD SOME EXPERIENCE WHERE THEY WOULD LIKE TO OPT OUT BUT CAN'T BECAUSE OF THE, UM, THE LIMITATIONS FOR THE, THE TWO HOURS.

UH, JUST I THINK THIS IS SOMETHING THAT WE SHOULD LOOK AT HARDER, UH, FOR THIS YEAR.

AND SO IF IT'S A ACTION ITEM, UH, FOR TAX, DEFINITELY SUPPORT THAT.

UH, END OF COMMENT.

LET'S GO TO MICHAEL JOEL.

GREAT, THANK YOU.

CALIN.

THIS IS A QUESTION THAT'S NOT ON BEHALF OF ANY PARTICULAR CLIENT, BUT ONE OF THE THINGS THAT I HAVE WONDERED AND, AND, UH, I REALLY APPRECIATE THIS PRESENTATION.

UM, IT KIND OF BROUGHT IT BACK TO, TO THE, FOR, FOR ME, WHEN I THINK ABOUT DRRS, ONE OF THE OBLIGATIONS, UH, STATUTORY REQUIREMENTS IS THAT IT'S SUPPOSED INTENDED TO REDUCE R AND, AND WHAT I WAS, WHAT I'VE WONDERED ABOUT IS DRRS WILL BE PROCURED ON A MEGAWATT BASIS, BUT ALL OF THESE METRICS ARE ON A RESOURCE HOUR BASIS.

IS THERE A WAY, HOW DO WE SYNC UP RESOURCE HOURS TO MEGAWATT CON PROCURED IN LOOKING AT THE REDUCTION OF RUCK? DOES THAT MAKE SENSE? YES.

UH, I, I THINK SO.

SO THE, UM, I MEAN, I, I THINK THE WAY CONCEPTUALLY THIS HAS BEEN THOUGHT THROUGH IN TERMS OF DRRS IS THAT WHEN THE RUCK ENGINE IS, IS MAKING COMMITMENT DECISIONS, IT WOULD LOOK AT THE RESOURCES THAT HAVE A-A-D-R-R-S STATUS FIRST.

AND SO THEY WOULD BE, UH, THE FIRST TO BE, UM, MAYBE COMMITTED ISN'T THE RIGHT WORD, BUT THEY, THEY WOULD, THEY WOULD BE THE FIRST TO BE UTILIZED, UM, INSTEAD OF THE ISSUING A R CONSTRUCTION.

UM, I DON'T KNOW IF THAT NECESSARILY ANSWERS THE QUESTION.

I MEAN, THE, THESE AREN'T NECESSARILY SEEING WHAT THE, THE, THE, THE PRESENTATION HERE IS NOT NECESSARILY WHAT THE R ENGINE SEES, BUT RATHER THE, THE, THE RUCK RESULTS, WHICH IS A FUNCTION OF THE, THE RUNTIME OF THE RESOURCES AND, AND THE TIMELINES THAT HAVE BEEN, UH, APPLIED IN THAT.

YEAH, NO, I, I APPRECIATE THAT.

I THINK THE THING THAT I WAS WONDERING ABOUT IS BECAUSE ALL OF THIS IS, IS REPORTED IN, IN RESOURCE HOURS AND DOES NOT REPORT CAPACITY, UH, THAT WAS ACTUALLY R THAT WHERE THE INSTRUCTIONS WERE WERE GIVEN TO RESOURCES, UM, IT ALMOST SEEMS LIKE THERE'S NOT A, A, A CLEAR COMPARISON TO SHOW THE CAPACITY THAT WAS THE REDUCED, UH, CAPACITY THAT WAS WRECKED.

I SEE.

UH, IN CONJUNCTION WITH THE PROCUREMENT OF DRRS.

WELL, I MEAN, TO SOME, WE, WE DO KIND OF BREAK THESE NUMBERS OUT INTO A LITTLE BIT MORE DETAIL IN THE SUBSEQUENT SLIDES.

I MEAN, I THINK WE DO HAVE THE, THE HSL OF THE RESOURCES THAT HAVE BEEN COMMITTED AND THE LSL OF THE RESOURCES, SO THAT, THAT MIGHT BE SOMEWHAT INSTRUCTIVE TO THE, TO THE QUESTION BECAUSE BROADLY SPEAKING, THAT WOULD BE A SIMILAR, UH, REQUIREMENT FOR, UM, FOR DRS, WHICH IS LARGELY A CAPACITY RATHER THAN NECESSARILY THE UTILIZATION OF THE RESOURCES.

I THINK THERE WAS ONE MORE QUESTION IN THE QUEUE.

HELPFUL IF, UH, FOR THIS SLIDE THAT'S SHOWING RIGHT NOW, IF WE COULD BREAK THE NON-OP OUT FROM THOSE WHO BASICALLY WERE PRECLUDED BECAUSE OF THE TIMELINE VERSUS THOSE WHO HAD, YOU KNOW, AN OPPORTUNITY BUT DIDN'T, DIDN'T EXERCISE THAT DURING, DURING THE AVAILABLE WINDOW.

HI, RYAN, CAN YOU HEAR ME? SURE, CAN.

HEY, GOOD.

HEY, I THINK IT WAS KIND OF A LITTLE BIT IMPLIED.

UM, YOU KNOW, THE CONVERSATION ABOUT NOT BEING ABLE TO OPT OUT BECAUSE OF THE TIMELINE.

IT, YOU KNOW, IT MIGHT BE

[03:50:01]

AND IT'S, IF, YOU KNOW, IT'S PROBABLY NOT A TRIVIAL EXERCISE.

AND I, AND I UNDERSTAND THAT WITH THE ASK, BUT I THINK IT'S VERY HELPFUL, UM, IN TERMS OF JUST KIND OF CONTEXT FOR MAYBE REFORMING THE, THE R OPTOUT TIMELINE AND, AND WHAT'S IN PLACE UNDER, I GUESS IT'S 10 92.

YEAH, JOHN, I CAN CERTAINLY TAKE THAT BACK TO THE TEAM.

I MEAN, I GUESS THE ONE QUESTION IN MY HEAD IS IT MIGHT NOT BE ALWAYS APP APPARENT TO, TO THE OUTSIDE WHETHER THE, THE, THE QSE HAD WANTED TO OPT OUT AND COULDN'T, UM, 'CAUSE IT'S ESSENTIALLY JUST A SNAPSHOT.

UM, BUT CERTAINLY I CAN, UM, GO BACK WITH THE YEAH, YEAH.

I MEAN THAT, YOU'RE RIGHT.

THE, THAT DATA WON'T ANSWER THAT QUESTION, BUT IT, I THINK IT WILL SAY THAT THESE PEOPLE, YOU KNOW, IT'LL GIVE YOU A BETTER INSIGHT INTO WHO JUST HAD NO OPPORTUNITY.

THEY WERE JUST, YOU KNOW, THEY DIDN'T, THEY WEREN'T EVEN PRESENTED WITH THE OPTION.

I SEE.

UH, MAYBE WE CAN PROCEED TO THE NEXT SLIDE THEN.

SO TO SOME EXTENT WE WE'RE, WE'RE KIND OF GETTING INTO THE DIS DISCUSSION THE, FROM, FROM THE PREVIOUS SLIDE, BUT THIS SLIDE DOES PROVIDE A BREAKOUT OF REASONS.

UM, AS I NOTED THAT THE RESULTS DO DIFFER IN SOME, UH, IMPORTANT RESPECTS COMPARED TO 2023.

SO I, I NOTED THAT, UM, THE, THE, THE SHARE OF RESOURCE HOURS FOR THERMAL CONGESTION, RUX FOR CONGESTION IS, IS UP COMPARED TO, UH, 2023.

SO IT'S ROUGHLY A THIRD COMPARED TO 3%.

UM, THERE WERE NO RESOURCE HOURS COMMITTED FOR AS SHORTAGES, INERTIA, OR STARTUP FAILURES.

AND I THINK THE OTHER POINT THAT WE HAD JUST BEEN DISCUSSING PREVIOUSLY IS THERE, THERE DOES APPEAR TO BE, UH, A REDUCTION IN THE AMOUNT OF, UM, RUCKS THAT WE'RE SUCCESSFULLY OPTED OUT OF.

AND I THINK AS JUST WAS MENTIONED, THAT, UM, SOME OF THE CHANGES THAT WERE IMPLEMENTED UNDER NPR 10 92, UH, COULD BE A, A CONTRIBUTING FACTOR TO THAT.

ONE OF THE OTHER THINGS AGAIN THAT WE, WE JUST KIND OF OPINED IS THAT, UM, BECAUSE THERE HAS BEEN AN, AN INCREASE IN THE AMOUNT OF RUX FOR CONGESTION, IT MAY JUST BE HARDER FOR THE RESOURCE OWNERS TO PREDICT WITH CONFIDENCE, UM, WHAT PRICES ARE GOING TO BE.

AND THAT COULD ALSO BE, UH, NOT THE BUT, BUT POTENTIALLY A CONTRIBUTING FACTOR.

UH, AND JUST A NOTE, UH, WHEN LOOKING AT THESE VALUES, WE INCLUDE ANY RESOURCES THAT ARE COMMITTED IN THE DAY AHEAD MARKET.

SO BY DEFAULT, THEY'RE TREATED AS IF THEY OPTED OUT OF RUCK SETTLEMENT.

SO WE PUT THEM DIRECTLY IN THAT CATEGORY.

I'LL PAUSE HERE TO SEE, UM, I KNOW ERIC HAD MENTIONED HE, HE MIGHT WANNA ADD SOME, SOME COMMENTARY ON THE, THESE RUCKS FOR CONGESTION.

SO THIS SLIDE REALLY SHOWS THE SHAPE OF RUCK EFFECTIVE HOURS.

LOOKING BACK OVER THE PAST FOUR YEARS, UH, SOME THINGS TO NOTE, UH, ON THIS SLIDE, AND AS I MENTIONED PREVIOUSLY, WE DO SEE A DECREASE IN THE AMOUNT OF RUCK OVERALL, UH, BUT THERE IS A MODEST INCREASE IN THE LAST QUARTER, UH, OF 2024 AS COMPARED TO TO 2023.

UM, WE DO SEE SOME CORRELATION, UM, IN TERMS OF THE AMOUNT OF RUCKS AND, AND THE SHOULDER SEASON.

AND THAT'S A, A PERIOD WHEN A NUMBER OF FACILITIES MAY BE ON SEASONAL PLANNED OUTAGES, AND THAT CAN MAKE THE NEED FOR ADDITIONAL CAPACITY MORE ACUTE IF WE SEE WARMER SEASONAL TEMPERATURE, FOR EXAMPLE, WHICH WE SAW SOME OF THE SHOULDER MONTHS OF 2024.

I, I THINK I NOTED THAT APRIL AND OCTOBER WERE THE, THE MONTHS THAT SAW THE HIGHEST AMOUNT OF RUCK ACTIVITY.

UM, THIS WAS SPREAD, UH, OVER A NUMBER OF DAYS.

AND THEN I THINK THAT THE FINAL POINT HERE IS THAT THE INCREASE IN, IN THE RUX FOR CONGESTION, AND IT DOES APPEAR THAT, UH, THESE WERE CONCENTRATED TOWARDS THE LAST THREE MONTHS OR SO OF 2024.

AND HAVING DONE A LITTLE BIT OF LOOKING INTO THIS, IT, IT LOOKS AS THOUGH THESE COMMITMENTS WERE DRIVEN PRIMARILY BY CONGESTION ON, UH, GTCS, ESPECIALLY EXPORT CONSTRAINTS, UH, IN SOUTH TEXAS REGION.

UM, ONE THING TO NOTE IS THE, IN DECEMBER, ESSENTIALLY ALL OF THE, UH, RUCKS WERE FOR CONGESTION.

UH, ONE THING I I WANTED TO POINT OUT IS THAT OF THE 234 EFFECTIVE RESOURCE HOURS IN DECEMBER, 53% WERE PROVIDED BY SINGLE UNIT TO ALLEVIATE, UM, CONGESTION IN THE SOUTH TEXAS REGION.

SO MAYBE

[03:55:01]

ERIC, IS NOW A GOOD TIME TO, TO RAISE THIS QUESTION? SURE.

SO, UM, IT'S BEEN 60 DAYS MAYBE.

UM, SO CAN YOU TELL IT, YOU SAID IT WAS ONE UNIT THAT WAS CONSISTENTLY BEING ERECTED? YES.

UM, I DON'T HAVE MY ABACUS IN FRONT OF ME, SO I DON'T KNOW IF IT'S EXACTLY 60 DAYS, BUT WE, MAYBE WE CAN AT THE NEXT WMWG SHED SOME ADDITIONAL LIGHT ON THAT.

UM, I'D ALSO SEE IF YOU WOULD MAYBE, UM, CAN WE SEE IF THE OWNER OF THAT RESOURCE WANTS TO SPEAK AT A-W-M-W-G MEETING AS WELL? I, MAYBE YOU CAN COORDINATE WITH BLAKE AND WMS LEADERSHIP TO SEE IF, UH, WE CAN HAVE A CONVERSATION AROUND, AROUND THAT WHILE MAKING SURE WE FOLLOW ALL OF OUR LEGAL GUIDELINES.

BUT IF THIS, IF THERE'S SOME SORT OF ISSUE, UM, IT'D BE WORTH DIGGING INTO.

YEAH, WELL, I, I CAN CERTAINLY TAKE THAT BACK SOME FURTHER DISCUSSION.

SO MOVING ON TO SLIDE SEVEN.

SO THIS SLIDE SHOWS THE, THE SAME DATA, BUT THE DISTINCTION HERE IS THAT WE'RE DOING A MEGAWATT HOUR WEIGHTING, AND WE DO THAT IN REALLY TWO WAYS.

THE TOP IS USING A BASE POINT WEIGHTING, AND ON THE BOTTOM WE'RE DOING A WEIGHTING BY HSL.

SO THE Y AXIS IS ESSENTIALLY THE SAME IN BOTH, BUT YOU CAN SEE A DIFFERENT SCALING WITH A BASE POINT, UM, YOU WOULD EXPECT A LOWER VALUE, BUT YOU CAN OTHERWISE SEE A, A SIMILAR PATTERN, UH, USING A MEGAWATT HOUR VALUE IN PLACE OF THE MEGAWATT HOUR, SORRY, PARDON ME, IN PLACE OF THE MEGAWATT VALUE.

UM, SO YOU SEE A SIMILAR PATTERN LOOKING AT HSL FROM SOME OF THE PREVIOUS SLIDES.

THE BASE POINT PATTERN IS MORE OR LESS THE SAME, BUT THERE'S A LITTLE BIT, THERE ARE CASES WHERE RESOURCES ARE DISPATCHED ABOVE THEIR LDL AND THAT PATTERN MAY NOT BE IDENTICAL IN TERMS OF WHAT YOU SEE IN THE HSL CALCULATION.

SO SLIDES EIGHT AND NINE ARE REALLY BASED ON FEEDBACK THAT WE RECEIVED FROM PREVIOUS YEARS.

UM, BUT THE GRAPH HERE IS SHOWING ON A MONTH BY MONTH BASIS WITH THE AVERAGE AGE OF THE RESOURCE BEING COMMITTED, UH, WEIGHTED BY EFFECTIVE RESOURCE HOURS, WHICH IS ALSO BROKEN OUT BY OPT-OUT AND NON OPT-OUT.

SO HERE IN 2024 DOES SEEM THAT THERE HAS BEEN SOME CHANGE IN THE AVERAGE AGE COMPARED TO PREVIOUS YEARS.

SO IN PAST YEARS, IF YOU KIND OF LOOK AT THE, THE MIDDLE LINE THERE, UH, THERE'S A CLUSTERING AROUND THE 50 YEAR RANGE, BUT IN 2024, WE DID SEE MORE OF A, A DISTRIBUTION OF BOTH OLDER AND NEWER UNITS.

UH, AND THIS MAY ALSO HAVE SOME RELATIONSHIP TO THE INCREASE IN, IN RUCK FOR CONGESTIONS COMPARED TO PREVIOUS YEARS.

SO SLIDE NINE IS JUST KIND OF ANOTHER WAY OF LOOKING AT THE SAME INFORMATION, UH, RELATED TO THE AGE OF THE UNITS BEING RUCKED.

SO THE TOP IS LOOKING AT THE NON-OP OUT, AND THE BOTTOM IS LOOKING AT THE OPT-OUT.

BUT INSTEAD OF DOING AN AVERAGE OF THE AGE, WE DID A BREAKOUT BY EFFECTIVE RESOURCE HOURS INTO AGE CATEGORIES.

THIS SLIDE ALSO ILLUSTRATES SOME OF THE DIFFERENCE, UH, IN THIS YEAR'S COMPARED TO PREVIOUS YEARS.

SO IF YOU LOOK ON THE, THE TOP RIGHT, FOR EXAMPLE, UM, YOU CAN SEE MORE EFFECTIVE RESOURCE HOURS WERE FOR MUCH NEWER UNITS THAN HAD BEEN THE CASE IN IN PREVIOUS MONTHS AND YEARS.

DRIVER OF CONDITIONS, UH, UNDER WHICH WE SEE THESE RESOURCES BEING DISPATCHED ABOVE THEIR LDL.

I, SO THIS NEXT SLIDE IS LOOKING AT DISPATCH OF RESOURCES SPECIFICALLY FOCUSED ON WHERE THE RESOURCE DID NOT OPT OUT, WHERE THEY WERE BEING DISPATCHED ABOVE THEIR LDL AND WHAT WAS DRIVING THAT.

SO WE HAD ROUGHLY 143 RESOURCE HOURS WHERE THIS RESOURCE WAS DISPATCHED ABOVE ITS LDL 58 OF THOSE RESOURCE HOURS WERE WHERE THE LMP FOR THE R CONSTRUCTED RESOURCE WAS ABOVE THE R OFFER FLOOR.

BUT WE ALSO SAW THAT THE, EFFECTIVELY THE MAJORITY IN THIS CASE OF THE DISPATCH ABOVE LDL, WAS LINKED TO THE CASE IN WHICH THE RESOURCE WAS MITIGATED.

SO NOT DISSIMILAR TO PREVIOUS YEARS.

MITIGATION CONTINUES TO BE THE

[04:00:01]

SO SLIDE 11 COVERS THE RELIABILITY DEPLOYMENT PRICE ADDER.

WE HAVE TWO GRAPHS HERE.

THE TOP LEFT IS LOOKING AT THE HOURS IN WHICH THE RDPA WAS TRIGGERED.

UH, SO THAT PATTERN FOLLOWS CLOSELY THE PATTERN WE'VE SHOWN ON SOME OF THE PREVIOUS SLIDES.

UH, ON THE BOTTOM LEFT, WE'RE LOOKING AT THE, THE AVERAGE RDPA ITSELF FOR THE HOURS IN WHICH THE PRICING RUN WAS TRIGGERED.

SO ONE THING TO NOTE HERE IS THAT JANUARY APPEARS TO BE ONE MONTH, UH, THAT STANDS OUT.

UH, ON THE 22ND.

UH, I NOTED THERE WAS ABOUT 1500 MEGAWATTS COMMITTED, UH, IN TERMS OF R FOR MOST OF THE DAY WAS ALSO A SIGNIFICANT DEPLOYMENT OF NON SPENT FOR THAT DAY.

AND ONE OF THE THINGS THAT, UH, WE, WE DID NOTE HERE, AND I THINK WE NOTE IT, UH, AS WELL IN OUR WMWG SLIDES IS THAT WHILE RUCK IS, IS A, A BIG CONTRIBUTOR TO THE RDPA, UH, IT'S NOT NECESSARILY THE ONLY TRIGGER AND THERE CAN BE CA IN CASES WHERE, WHERE OTHER OUT OF MARKET ACTIONS ARE CONTRIBUTING TO THE RDPA.

SO SLIDE 12 REALLY FOCUSES ON THE, THE SETTLEMENT ANALYSIS, BUT AT THE TOP, UH, WE'RE LOOKING AT THE TOTAL CLAWBACK CHARGES ACROSS THE INDIVIDUAL MONTHS.

IN THE, UH, MIDDLE BAND, WE'RE SHOWING CAPACITY SHORT CHARGES.

THIS IS EFFECTIVELY EQUAL TO ANY MAKE HOLE PAYMENTS.

AND THEN AT THE BOTTOM LEFT, YOU'LL SEE THE, UH, SHORTFALL MEGAWATT HOURS.

SO THE SHORTFALL MEGAWATT HOURS NOT NECESSARILY THE SAME PATTERN AT THE MAKE HOLE, AND THE CLAWBACK REALLY ARE MORE TO INDIVIDUAL DAYS, THINGS OF THAT NATURE.

UM, SO IT DOESN'T NECESSARILY FOLLOW THE SAME PATTERNS IN TERMS OF COMMITMENTS, BUT OBVIOUSLY WE, WE DO HAVE SOME MONTHS WITH HIGHER VOLUMES THAN OTHERS.

AND JUST TO NOTE, THIS IS WHAT HAS BEEN SETTLED SO FAR.

SO THERE MAY BE A SUBSEQUENT, UH, FINAL SETTLEMENT THROUGH UP, UH, THAT WOULD AFFECT SOME OF THESE QUANTITIES.

ANOTHER ACTION ITEM SINCE WE'RE IN THE SPIRIT OF ADDING ITEMS FOR TACK TO DO, UM, IN TALKING WITH ERCOT, AND ENO ALREADY IS AWARE OF THIS, UH, WHICH IS POTENTIALLY ADDING AN ACTION ITEM TO ADDRESS THE ISSUE OF RECOGNIZING FIELD TRANSPORTATION COSTS AND DYNAMIC GAS CONTRACTS.

UH, JUST A NOTE HERE, UM, THAT THERE WERE NO RESOURCES WITH RUCK INSTRUCTIONS, UH, WHICH REPORTED EXCEPTIONAL FUEL COSTS.

UH, AND NEXT SLIDE.

SO THIS IS, UH, REALLY THE LAST SLIDE, UH, IN, IN THE PRESENTATION.

UM, JUST TO HIGHLIGHT SOME OF THE POINTS THAT, THAT WE'VE NOTED PREVIOUSLY.

UM, WE DO SEE A DOWNWARD TREND IN BOTH, UH, THE REC EFFECTIVE HOURS AS WELL AS A REDUCTION IN THE AMOUNT OF OPT-OUT THAT WE'VE DISCUSSED A LITTLE BIT HERE.

UH, WE ARE SEEING, UH, HIGHER CLAWBACK CHARGES IN 2024 COMPARED TO 2023, UH, WITH ALL WITHOUT ALSO SEEING HIGH CAPACITY SHORT CHARGES.

SO THIS INDICATES, UH, I GUESS BASED ON SOME OF THE DISCUSSION WE HAD PREVIOUSLY, THAT IN SOME CASES IT WOULD'VE BEEN ECONOMIC, UH, FOR THESE RESOURCES TO BE SELF COMMITTED.

AND SO, BUT I HAVE TAKEN A NOTE THAT MAYBE THERE'S AN INTEREST IN HAVING SOME FURTHER DISCUSSION AROUND THE, THE POTENTIAL IMPACTS OF NPR 10 92.

SO I'LL MAKE A NOTE OF THAT AND, AND FIND AN OPPORTUNITY FOR SOME DISCUSSION AT THIS, AT A SUBSEQUENT WMWG MEETING.

AND THAT IS THE END OF MY PRESENTATION, BUT I'LL PAUSE HERE TO SEE IF THERE ARE ANY FURTHER QUESTIONS.

ANDY.

YEAH, THANKS, RYAN.

I WANTED TO, UH, RAISE ANOTHER CONCERN WE HAD IN REGARDS TO THE LAST SLIDE WHERE YOU MENTIONED THE EXCEPTIONAL FUEL COST PROCESS.

UM, SOME OF YOU MAY BE AWARE, NPR 1177 WAS SUNSETTED AT THE BEGINNING OF THIS YEAR.

UH, AS A REMINDER THAT WAS ENHANCEMENTS TO THIS EXCEPTIONAL FUEL COST PROCESS THAT ALLOWED RESOURCES TO SUBMIT THEIR, UH, GAS CONTRACT AND TRANSPORTATION, UM, INFORMATION SO THAT IN THE EVENT A RESOURCE WAS MITIGATED, ERCOT COULD USE THOSE COSTS INSTEAD OF A GENERIC MITIGATION OFFER CURVE, UH, WHICH TYPICALLY WOULD RESULT IN THE UNIT LOSING MONEY IF ERCOT WERE TO USE THE GENERIC OFFER CURVE.

UM, AND WORKING WITH ERCOT.

AND, AND JUST AS A REMINDER, THE REASON WE SET A SUNSET DATE WAS, UH, THAT PROCESS IS ADMINISTRATIVELY BURDENSOME FOR BOTH ERCOT AND THE, UH, QUEASY, AND AS SUCH WOULD ONLY OPERATE AS A BANDAID.

AND THE, THE GOAL WAS TO HAVE A LONG-TERM SOLUTION IN IN PLACE, WHICH, UM, A AS MANY OF US KNOW, THERE'S A LOT OF THINGS GOING ON.

UH, SO WHAT I WOULD LIKE TO DO IS, UH, POTENTIALLY ADD

[04:05:01]

I THINK THAT THE CRUX OF THE ISSUE IS THE EXISTING PROTOCOLS, UM, FAIL TO REALLY RECOGNIZE HOW SOME OF THESE GAS CONTRACTS AND, AND FUEL COSTS ACTUALLY HAPPEN IN REAL TIME AS WELL AS THE DAY AHEAD AND, AND THE NOMINATION SCHEDULES.

AND THERE, THERE'S A GAP IN PROTOCOLS THAT ALLOW RESOURCES TO FULLY REFLECT THOSE COSTS, WHICH LEADS TO SOME OF THE ISSUES LIKE, UM, POTENTIALLY LOSING MONEY WHEN WE'RE GETTING MITIGATED, UM, ON, UH, LOWER RUPT RECOVERABLE COSTS, UH, NOT BEING ABLE TO RECOGNIZE YOUR ENERGY OFFER CURVES PROPERLY.

SO, UM, TO THAT END, I WOULD LIKE TO ADD AN ACTION ITEM, UM, AND POTENTIALLY EXPLORE THIS FURLOUGHED WITH BOTH ERCOT AND SOUNDS LIKE A GREAT THING FOR WMS TO PICK UP WITH THAT, I'M HAPPY TO ANSWER ANY QUESTIONS, BUT I APPRECIATE THE TIME TO, UH, TEE UP THAT ITEM THAT IMPACTS A LOT OF DEGENERATION.

COMMUNITY.

SORRY, KATELIN, GO AHEAD.

NO, LET, LET ME, WELL, WELL, YEAH, I SEE SU IN THE QUEUE.

I WAS GONNA TALK ABOUT THE ACTION ITEM.

UM, FIRST, ERIC, GOSH, IS YOUR QUESTION, DOES YOUR COMMENT ABOUT THE SUBSTANCE HERE ON, ON THE DIRECT PRESENTATION, OR IS IT ABOUT ACTION ITEMS? IT'S ABOUT, UH, OR A COMBINATION WHAT ANDY RAISED.

UM, ANDY, I WOULD PROPOSE WE DIDN'T LOOK AT THE ACTION ITEMS LIST THIS MONTH.

I WOULD PROPOSE THAT WE LOOK AT IT, UM, NEXT MONTH WHEN, WHEN WE ALSO LOOK AT GOALS.

AND SO THAT'LL GIVE US SOME TIME IF, IF YOU WOULD WANT TO PROPOSE, YOU KNOW, LIKE A WRITTEN VERSION OF THAT.

UM, WE DON'T HAVE TO COME UP WITH IT HERE ON THE FLY.

AND SO MARTHA AND I CAN GET WITH, WITH YOU AND THE INTERIM AND ANYBODY ELSE WHO WANTS TO PROPOSE ACTION ITEMS. AND I THINK WE SHOULD PROBABLY COORDINATE WITH, UM, WMS AND, AND ROSS AS WELL ON, ON THEIR OUTSTANDING ACTION ITEMS AND HOW YOU, HOW THEY WANT TO HANDLE IT.

IS THAT AN OKAY APPROACH FOR ACTION ITEMS TO JUST BRING IT UP NEXT MONTH AND, AND HAVE YOU AND ANYBODY ELSE THAT WANTS AN ACTION ITEM TO BRING US THE, THE WRITTEN LANGUAGE FOR IT AT THAT TIME? YEAH.

YEAH, I LIKE THAT, CAITLYN.

WELL, I, I MIGHT PROPOSE A SLIGHT TWEAK TO THAT.

MAYBE I CAN SEND YOU AND MARTHA, MY PROPOSED ACTION ITEMS, THE ONE ON THE, THE ROCK OPT OUT AND, AND, AND CLAWBACK PROVISIONS, AND THEN ONE ON THIS, UH, GAS FUEL AND TRANSPORTATION COSTS.

AND THEN THAT WAY WHEN IT COMES UP AT TACK, THOSE ITEMS CAN BE THERE FOR ALL THE STAKEHOLDERS TO REVIEW AND, AND DELIBERATE ON.

PERFECT.

UM, YEAH, PER PERFECT.

I THINK THAT'S A GOOD IDEA.

MAYBE WE COULD EVEN, UM, KIND OF ASK PEOPLE THAT AS A DEADLINE, IF YOU HAVE AN, AN ACTION ITEM YOU WOULD LIKE TO PROPOSE, IT WOULD BE HELPFUL IF YOU COULD GET THAT TO ME AND MARTHA AND ANN, I GUESS, UM, IT MAY BE TWO WEEKS FROM NOW SO THAT WE CAN HAVE THAT ON A LIST FOR, FOR THE FEBRUARY MEETING.

SURE, I CAN DO THAT.

I'LL WRITE THAT IN THE QUEUE FOR OTHER PEOPLE TOO.

CONTINUE TO OPPOSE CREATING NEW UPLIFTS.

SO SUSIE, THAT GIVES US, UM, LIKE A FEW OUT OF HAVING TO WRITE IT DOWN RIGHT NOW.

ALL RIGHT, WE CAN GO, UH, BACK TO ERIC GO.

YEAH, SO, UM, MAYBE WE CAN DISCUSS THIS, UH, AT GREATER LENGTH, UH, AT THAT TIME.

BUT, UM, IN RESPONSE TO SOME OF THOSE CONCERNS FROM ANDY, UM, AND MAYBE IN THE SPIRIT OF OUR OTHER LENGTHY ACTION ITEM, OUR DISCUSSION TODAY, THE PRINCIPLES THAT THE CONSUMERS HAVE APPLIED TO THIS RUCK, UM, MAKE HOLD DISCUSSION AND MITIGATION DISCUSSION IN THE PAST HAS BEEN, WE DON'T WANT TO CREATE UPLIFTS, BUT ARE VERY OPEN TO WAYS TO INCLUDE, UM, THESE COSTS AND THE OFFERS THAT ARE SUBMITTED BY THE GENERATORS.

UM, OBVIOUSLY THERE NEEDS TO BE SOME, UM, OVERSIGHT THERE, UM, BUT THERE ALREADY IS.

UM, AND, UM, WE'RE, WE'RE HAPPY TO EXPLORE THESE CONVERSATIONS, BUT, UM, WOULD

[04:10:01]

AT THE HOR RNM MEETING AND IT'S AN AGENDA ITEM OR, OR WHAT IS THIS? YEAH, THE IDEA IS TO HAVE ACTUALLY AT R AND MA DEDICATED TIME TO HAVE IT AS AN AGENDA ITEM AND INVITE LIKE TWO TO THREE SEGMENTS PER TOPIC, SAY FOR TRANSMISSION PLANNING, SAY THREE, THREE DIFFERENT SEGMENTS, AND WORK WITH THE TECH REPRESENTATIVES FOR THAT SEGMENT TO HAVE MAYBE LIKE 20 MINUTES TO COME IN AND PRESENT KINDA A HOLISTIC, UM, PRESENTATION AND THOUGHTS AND OPINIONS ON THAT ITEM.

OKAY, ANYTHING ELSE? UM, ON, ON THIS R PRESENTATION? OKAY, THANK YOU, UH, RYAN AND EVERYONE FOR THE DISCUSSIONS PUT IN THE CHAT, WHY DON'T WE PLAN ON ANYBODY WITH THE PROPOSED ACTION ITEM TO SEND THAT TO, TO ME AND MARTHA AND ANN, UM, BY FRIDAY THE 14TH.

SO WE HAVE SOME PLAN AHEAD OF TECH AND THAT GIVES YOU OVER TWO WEEKS.

SO LET'S MOVE NOW.

UM, WE DID THE LARGE LOAD INTERCONNECTION STUFF UPDATE ALREADY, SO WE ARE NOW TO THE ERCOT BOARD STAKEHOLDER ENGAGEMENT UPDATE.

REBECCA, ARE YOU HERE FOR THIS ONE? THANK YOU.

UM, I'M GONNA APOLOGIZE IN ADVANCE.

I'M A LITTLE UNDER THE WEATHER AND I'M NOT THE LOUDEST PERSON ANYWAY, SO IF Y'ALL CAN'T HEAR ME, PLEASE LET ME KNOW.

I, UM, THIS IS REALLY JUST AN UPDATE AND WE'VE HAD SEVERAL OF THESE OVER THE LAST YEAR.

UM, THE FIRST CONTENT SLIDE, IF WE COULD GO TO THE NEXT SLIDE IS REALLY JUST KINDA UPDATES ONE, UM, WE ARE EXPANDING THE NUMBER OF DIRECTORS.

I THINK LAST YEAR WE DID JUST THE APPOINTED THE INDEPENDENT DIRECTORS.

THIS YEAR WE'RE GOING TO INCLUDE THE FOUR EX OFFICIO DIRECTORS.

THIS IS GONNA PROVIDE ADDITIONAL IN-PERSON OPPORTUNITIES FOR MEMBER COMPANIES THIS YEAR TO, UM, THE PARTICIPATION SURVEY WAS SENT TO WMS ROTH AND TAC REPRESENTATIVES IN LATE DECEMBER.

I KNOW MOST OF Y'ALL HAVE RETURNED THAT ALREADY, BUT IF YOU HAVE A SEATED MEMBER IN ONE OF THESE COMMITTEES AND HAVE NOT DONE, SO, PLEASE GO AHEAD AND RESPOND, AFFIRM ANY INTEREST IN PROVIDING AVAILABILITY SO WE CAN FINISH THE SCHEDULE.

WE'RE TRYING TO GET THAT DONE IN ADVANCE SO PEOPLE HAVE MORE CALENDAR CERTAINTY THIS YEAR.

EVERYONE WHO WAS, UM, A JANE, UM, SORRY, EXCUSE ME, A FEBRUARY IN PERSON SHOULD HAVE ALREADY RECEIVED A, UM, A NOTICE OF THAT FOR NEXT MONTH.

AND THEN NOW THAT WE OFFICIALLY HAVE TECH LEADERSHIP, WE'RE GONNA REACH OUT, UM, AND WORK TO COORDINATE THE BRIEFINGS WITH THE BOARD CHAIR, VICE CHAIR, AND R AND M CHAIR, STARTING WITH, UM, THE NEXT MEETING CYCLE.

AND THEN CAN WE GO TO THE NEXT SLIDE? THE, THE NEW PART OF THIS PRESENTATION IS, UM, A IDEA TO WORK WITH THE R AND M COMMITTEE AND GIVE OPPORTUNITIES FROM OUR PARTICIPANTS TO DISCUSS BROADER POLICY ISSUES AT THE BOARD LEVEL.

UM, THE IDEA IS TO WORK WITH TECH SEGMENTS, UM, AND INVITE SELECTED SEGMENTS BASED ON THE TOPIC, AND THEN BRING TWO OR THREE SEGMENTS IN PER MEETING CYCLE AND ALLOW THEM TO COORDINATE ON BEHALF OF THAT SEGMENT.

UM, A PERSPECTIVE FOR MARK PARTICIPANTS ON THAT.

UM, CERTAIN KEY IMPACT ISSUE.

WE HAVE KIND OF TARGETED TRANSMISSION PLANNING FOR APRIL AND RTC FOR SEPTEMBER.

I THINK THIS IS SOMETHING THAT'S GOING TO BE A DISCUSSION OVER THE NEXT FEW MONTHS.

UM, KIND OF FIGURING OUT WITH THE SEGMENTS WHAT THAT WOULD LOOK LIKE.

IT COULD BE A SINGLE SPEAKER OR A CROSS SECTION MEMBERS KNOWING THAT DIFFERENT PEOPLE HAVE DIFFERENT PERSPECTIVES ON THE SEGMENTS.

UM, SOMETHING WE WANTED TO TRY THIS YEAR TO GIVE ANOTHER OPPORTUNITY TO HAVE KIND OF BIGGER POLICY CONVERSATIONS OUTSIDE A SPECIFIC REVISION REQUEST.

UM, AT THE BOARD LEVEL, I DON'T SEE ANY QUESTIONS IN THE QUEUE, UM, BUT I THINK ON THIS SECOND, UM, OPPORTUNITY TO HAVE THE KIND OF R AND M PRESENTATIONS STARTING IN APRIL, WE'LL BE REACHING OUT AND HAVE ADDITIONAL FEEDBACK ON THIS IN THE NEXT MONTH TO GET, UM, SOME SEGMENTS TEED UP FOR TRANSMISSION PLANNING IN APRIL.

HEY REBECCA, I I SEE MARTHA IN THE CUBIT.

I MAY, SHE MIGHT HAVE THE SAME QUESTION I DO.

COULD YOU JUST CLARIFY THE, THE FORMAT OF THIS? IS THIS MEMBERS

[04:15:01]

SO IT'S NOT TIED TO A SPECIFIC NPRR, IT'S KIND OF TIED TO A MORE BROAD POLICY INITIATIVE, UM, KEY ISSUE THAT ARE CO'S LOOKING AT.

AND SO IT COULD BE ONE, ONE SPEAKER, Y'ALL COULD WORK TOGETHER.

'CAUSE I KNOW NOT EVERYBODY IN ONE SEGMENT'S GONNA HAVE THE SAME OPINION TO KIND OF PRESENT HOW DIFFERENT PEOPLE ARE LOOKING AT IT OR WHAT'S IMPORTANT, BUT IT WOULD BE MORE A PUBLIC AT THE BOARD, UM, PRESENTATION WITH MULTIPLE DIFFERENT SEGMENTS HAVING AN OPPORTUNITY.

DO YOU ANTICIPATE THIS WOULD BE, YOU KNOW, MORE INTERACTIVE WITH, WITH QUESTIONS AND ANSWERS OR IT WOULD BE SORT OF A PRESENTATION FORMAT? I, I DO EXPECT TO HAVE KIND OF QUESTION ANSWERS FROM BOARD DIRECTORS AS WELL.

GO AHEAD MARTHA.

HOPEFULLY I DIDN'T TAKE ALL YOUR QUESTIONS.

NO, YOU'RE ALL GOOD.

UH, CAITLYN, MARTHA ENDS WITH ON COURT.

YEAH, JUST 'CAUSE IT LOOKS LIKE, UH, WE WOULD LIKELY BE KIND OF AT THE FOREFRONT OF THIS IN APRIL WITH TRANSMISSION PLANNING.

REBECCA WOULD, WOULD THE RIGHT WAY TO THINK ABOUT THIS BE MAYBE TO, UM, KIND OF FRAME IT IN OUR PRESENTATION OR MATERIALS IS LIKE AN SORT OF AN EDUCATIONAL PIECE, UH, TO QUEUE UP DISCUSSION WITH THE BOARD ON ASPECTS OF THIS ISSUE THAT THEY MAY NOT HAVE INSIGHT INTO.

UM, FROM THE ERCOT SIDE, SOMETHING THAT'S KIND OF UNIQUE TO THOSE OF US THAT ACTUALLY PLAN THE TRANSMISSION SYSTEM, THAT WE COULD HIGHLIGHT THINGS THAT MIGHT BE OF INTEREST TO THEM.

I, I THINK THAT'S, THAT'S KIND OF THE INTENT OF THOSE KIND OF INSIGHTS, UM, HOW COMPANIES OR DIFFERENT SEGMENTS ARE LOOKING AT THINGS THAT MIGHT NOT BE, YOU KNOW, AS TRANSPARENT OUTSIDE OF SPECIFIC, YOU KNOW, NPR LIKE, WHY WE THINK THIS WAY OR WHAT, WHAT WE'RE REALLY LOOKING AT AND FOCUSING ON HERE.

I THINK THAT'S GONNA BE DIFFERENT FOR DIFFERENT COMPANIES AND DIFFERENT SEGMENTS.

UM, I DO EXPECT IT TO BE INTERACTIVE, YOU KNOW, THIS IS, THIS IS SOMETHING THAT'S NEW AND I THINK BOTH OF THOSE TOPICS WE'VE KIND OF TEED UP.

WE'LL HAVE A LOT OF DIFFERENT OPINIONS AND A DIFFERENT INSIGHTS THAT COMPANIES CAN PROVIDE, BUT IT WAS ANOTHER OPPORTUNITY WE WANTED TO HAVE TO HAVE COMPANIES AND MEMBERS COME PRESENT AND HAVE THOSE DISCUSSIONS IN FRONT OF THE BOARD AND HAVE THE OPPORTUNITY TO ENGAGE.

I I I CAN MAKE A PRETTY EDUCATED GUESS ON WHO THE OTHER SEGMENTS WOULD BE FOR APRIL, UM, BESIDES THE IOU SEGMENT, BUT TO THE EXTENT THAT YOU'RE ABLE TO KIND OF LET US KNOW WHAT SEGMENTS ARE PRESENTING, WE COULD POTENTIALLY BE IN A GOOD POSITION TO COORDINATE ACROSS SEGMENTS AS WELL TO MAKE SURE WE'RE NOT DUPLICATING MATERIALS.

AND JUST A THOUGHT THERE.

THANKS REBECCA.

YEAH, I THINK THIS IS SOMETHING WE CAN COME BACK WITH AND, UM, START HAVING A, A BETTER DISCUSSION ON, UM, IN FEBRUARY.

REBECCA Q IS CLEAR.

THANK YOU'ALL ALL.

UM, NOW WE ARE ONTO OUR VOTING ITEMS. I THINK WE HAVE THREE RPG PROJECT.

ALL, ALL OF THEM I BELIEVE ARE .

UM, ARE YOU, ARE YOU READY TO GO WITH OUR FIRST PROJECT? YES, I AM.

CAN YOU HEAR ME? YES.

ALRIGHT, THANK YOU.

YEAH, THANKS EVERYONE.

GOOD HAVE I HAVE, UH, THREE RPG PROJECTS, THREE ENCORE PROJECTS FOR YOUR REVIEW AND BOOK TODAY.

FIRST ONE IS THE, UH, WE MISSED THE SAMS SWITCH PROJECT.

THIS IS, THIS IS AN ENCORE SUBMITTED PROJECT.

UH, THIS IS A TIER, TIER ONE PROJECT WITH AN ESTIMATED COST OF $118.9 MILLION.

AND THIS DOES NOT REQUIRE CC AND THIS IS PRIMARILY ACROSS THE RELI ISSUES.

AND THEN THIS WILL CALL NORTH CENTRAL .

A, A REQUIREMENT FOR K ONE PROJECT.

SO AS I SAID, THIS IS A, THIS IS

[04:20:01]

AS PER THE PROTOCOL, UH, THIS PROJECT EXCEEDS A HUNDRED MILLION DOLLARS.

SO THIS IS NOT A Q1 PROJECT.

UH, THE REQUIREMENT FOR T ONE PROJECT AS PER PROTOCOL IS, UH, PURSU THE TABLE ONE PROJECT TO TAG IN ANY COMMENTS FROM TAG WILL BE INCLUDED IN THE FORM PRESENTATION FORUM.

SO AT LEAST THANK YOU.

SO THIS IS A, THIS, THIS SLIDE SHOWS A NEED FOR THE PROJECT, UH, ERCOT IN VERIFY THE NEED.

THIS IS A, THIS A LIBRARY PROJECT, UM, CREATED CERTAIN VIOLATIONS UNDER SEVERAL CATEGORIES OF CONTINGENCIES.

PRIMARILY THERE WERE THERMAL OVERLOADS, AS YOU CAN SEE UNDER N MINUS ONE CONDITION.

AND WHEN YOU LOOK AT GENE MINUS ONE IN MINUS ONE OR X MINUS ONE IN MINUS ONE.

MORE REPETITIONS OF THOSE MINUS ONE PLUS ADDITIONAL ENCY WIDE PATIENTS.

NEXT SLIDE PLEASE.

TO ADDRESS THIS VIOLATION, SIR, WE'VE GOT TO LOOK AT THREE PRIMARY OPTIONS AND THEN SHORTLISTED TO TWO OPTIONS.

UH, THE RESULTS OF THE SUMMARY OF THIS TWO OPTIONS ARE PRESENTED HERE, UH, BASED ON THE VARIOUS ASPECTS THAT WE LOOK FOR ADDRESSING THE RELIABILITY ISSUES AND THE LONG-TERM LOAD DRUG OPTION ONE, ADDRESS MOST OF ALL THE LABOR VIOLATIONS AND IS THE LEAST EXPANSIVE OPTION AND ALSO IMPROVES THE LONG-TERM LOAD CERTAIN CAPABILITY THERE.

NEXT, AS PER PROTOCOL OR FOR ANY TIER ONE PROJECTS, IS REQUIRED TO PERFORM THE SR SCREENING, UH, TO SEE IF THERE ARE NO IMPACT SSR IMPACTS DUE TO THIS PROPOSED TRANSMISSION UPGRADES.

AND WE DID THE SAME FOR THIS PROJECT AND WE DID NOT EDIT FOR ANY OF PROCESS SR IMPACTS DUE TO THIS, UH, EXISTING PLAN OF BREAKS.

NEXT, PLEASE.

IN ADDITION TO THE UH, SSR SCREENING, THERE IS ALSO REQUIREMENT FOR THE PLANNING AID SECTION 3.1, 0.3, OR WE HAVE TO LOOK AT THE SYSTEM CONGESTION IMPACT AND ALSO PERFORM SENSITIVITY ANALYSIS FOR GENERATION AND LOW SCALING.

SO WE CONCLUDED THAT ANALYSIS AND FOR OPTION ONE, WE DID SEE AN INCREASE IN EXISTING CONGESTION.

HOWEVER, WHEN WE LOOKED AT THE UPGRADING THOSE, UH, CONGESTED LINES, WE DID NOT SEE ENOUGH ECONOMIC BENEFIT TO CLASSIFY OR ADDED AS AN ECONOMIC PROJECT.

IN ADDITION TO THAT, WE DID NOT FIND ANY ISSUES WITH EITHER GENER A FUTURE GENERATION IN THE STUDIED AREA OR DUE TO THE NODE SCALING.

UH, WE, WE DID NOT SEE ANY MATERIAL, IN FACT ON THE PROPOSED PROJECT.

THANKS PLEASE.

SO IS RECOMMENDING WILL BE RECOMMEND FOR VENDORS OPTION ONE TO ADDRESS DOUBLE LINE NEEDS IN CONCRETE S UH, PROJECT THAT IS EXPECTED TO BE IMPLEMENTED BY MAY OF 2026 AND SIXTH ESTIMATED CAP PROCESS, UH, $18.9 MILLION.

NEXT PLEASE.

SO THIS IS A DESCRIPTION OF THE PROJECT.

UH, I'LL PROBABLY, YOU KNOW, GO TO THE NEXT SLIDE WHERE WE HAVE A MAP OF THE REGION .

SO HERE'S THE DESCRIPTION OR THE OVERVIEW OF THE UPGRADES HIGHLIGHTED HERE.

PRIMARILY THE UPGRADE IS FROM VENUS TO SAMS SWITCH, THE 3 45 KV DOUBLE CIRCUIT.

SO, UM, THIS IS, THIS DOES NOT REPORT A CCN.

UH, THIS PROJECT OBVIOUS UPGRADES 38 MILES OF THE VENUS TO SAMS SWITCH, 3 45 KV NINE WITH AN EMERGENCY WAITING OF 1792 MBA IN.

IN ADDITION TO THAT, IT ALSO UPGRADES THE OTHER SEGMENT FROM VENUS TO ENFORCEMENT TO FIND VALLEY TO SAM SWITCH.

SO THAT'S, THAT'S KIND OF ALL WE HAVE THE PROJECT AND PASS YEAR TO SEE.

THERE ARE QUESTIONS.

I GUESS LET'S JUST DO 'EM ONE AT A TIME.

DON'T SEE ANY QUESTIONS.

UM, CAN I ASK A QUESTION? SO ARE WE GONNA PASS TO ADD THIS TO THE COMBO BALLOT OR ARE WE TAKING EVERYTHING TOGETHER? YEAH, LET'S,

[04:25:01]

UM, BUT JUST SO, SO ON THIS ONE WE'D BE, UM, LOOKING TO ENDORSE ENCORE VENUS SWITCH TO SAM SWITCH 3 45 KV LINE, THE RPG UH, PROJECT, OPTION ONE TO THE COMBO BALLOT.

DOES ANYBODY HAVE A PROBLEM WITH THAT? OKAY, COREY, LET'S ADD THAT TO THE COMBO AND THEN PROBABLY WE CAN MOVE TO THE, THE NEXT PROJECT.

UH, NEXT ONE IS THE ENCORE WILER PROJECT.

SO AGAIN, THIS IS A G OH ONE PROJECT WITH AN ESTIMATED COST OF $158.2 MILLION AND WILL REQUIRE, UM, CCC M FOR CERTAIN PORTIONS OF THE PROJECT.

AGAIN, THIS ADDRESSES THE ISSUES IN THE DALLAS COMPLEMENT COUNTIES, UH, PRIMARILY IN THE NORTH CENTRAL LEVEL.

SO, EXCUSE, SO I'M GOING SKIP THIS AGAIN.

THIS FALLS AS A, THIS IS A TIER ONE PROJECT BASED ON THE COST THRESHOLD AND CC REQUIREMENT.

UH, NEXT PLEASE.

UH, HERE'S THE OVERVIEW OF THE RELIABILITY NEED.

WE REGARD, UH, VERY INDEPENDENTLY VERIFIED THE RELIABILITY PLANNING CRITERIA VIOLATIONS IN IN THE NORTH CENTRAL WEATHER ZONE.

UH, THE TABLE SHOWS SOME OF THE VIOLATIONS THERE WERE BOTH THERMAL AND VOLTAGE VIOLATIONS.

AND IN ADDITION TO THAT, UNDER X MINUS ONE AND MINUS ONE CONDITION, THAT WAS STILL SOLVE OR FOUR CONDITIONS SO OF VIOLATIONS OF TWO CONTINGENCIES.

NEXT, PLEASE TO ADDRESS THE RELIABILITY ISSUES OR PRIMARILY LOOKED AT FOUR OPTIONS AND THEN SHORTLISTED TO TWO OPTIONS.

UM, THE OPTIONS ONE AND FOUR, THE SHORTLISTED OPTIONS ARE COMPARED HERE.

AS YOU COULD SEE, UH, OPTION ONE ADDRESSES ALL THE RELIABILITY VIOLATIONS AND THE LEAST IT IS THE LEAST COST OPTION AND IT WOULD, IT WOULD REQUIRE THE LEAST RIGHT AWAY BACK.

UM, THE OPTION ALSO IMPROVES OUR LONG TERM ROAD.

CERTAIN CAPABILITY SAID IT REQUIRES THE MINIMUM RIGHT AWAY.

SO THE OPTION ONE IS TESTING AS PREFERRED OPTION NEXT, PLEASE.

UM, OKAY, LOOKING AT THE SUBSTATIVE MENTS, UH, AND CONDUCTED THE SSR SCREENING AND FOR OPTION ONE, AND WE DID NOT FIND ANY ADVERSE SSR IN FACT FOR EITHER EXISTING OR PLANNED FUTURE GENERATION RESOURCES IN THE AREA.

AGAIN, THE SAME, UH, SENSITIVITY REQUIREMENTS BASED ON THE PRIMARY REQUIREMENT.

LOOKING AT THE CONGESTION, UH, THIS PROJECT DID NOT CAUSE ANY NEW CONGESTION IN THE STUDY AREA AND ALSO WE DID NOT FOLLOW ANY IMPACT TO DUE TO THE FUTURE POTENTIAL GENERATION OR LOW SCALE IN BACTERIA.

NEXT, PLEASE.

SO WILL RECOMMEND OR WINDOWS OPTION ONE TO, TO ADDRESS THE I ISSUES IDENTIFIED IN NORTH CENTRAL ME ZONE.

UH, THEY ESTIMATED, UH, IN-SERVICE DATE FOR THE PROJECT IS MAY OF 2026, AND AGAIN, THE COST IS 158.2.

NEXT, PLEASE MAY THE NEXT TWO SLIDES, UH, GIVES A OVERVIEW OF THE PROJECT WHERE ASPECTS OF THE PROJECT CAN LIKE TO GO SKIP THE SLIDES, GO THE MAP IN THE SLIDE OR THE SLIDE AFTER.

UPGRADE IS THE LINE FROM, UH, WATERMILL TO TRI CORNER.

SO THIS, THIS MAP SHOWS THE OVERVIEW, THE UPGRADES.

PRIMARILY THE UPGRADES IS EXPANDING THE WILMAR 1 38 KV STATION, UH, TO A NEW WILMAR 3 45 1 38 KV SWITCH YARD WITH THE 8 1 8 3 45 KV BREAKERS AND ADDING 15 1 38 KV BREAKER AND HALF SYSTEM SCHEME.

UH, IN ADDITION TO THAT, AT ONE MORE, UH, PROJECT WOULD ADD 2 1 38 3 45 KB AUTOS, UH, WITH AN EMERGENCY RATING SEVEN 50 MEA AND ALSO ADD 210.4 MEGAWATT CAP BANKS.

THAT IS CAP BANKS WOULD BE SPLIT INTO THREE BANKS OF 36.8 MEGAWATTS EACH.

UH, IN ADDITION TO THAT, UH, IT WILL ALSO UPGRADE SOME OF THE LINES IN THE AREA 1 38 AND 3 45.

UM, SO THE PRIMARY

[04:30:01]

DECENT DOUBLE CIRCUIT.

AS YOU COULD SEE, THERE IS PORTION OF THE LINE, UH, WILL BE FILLED AS TWO DOUBLE CIRCUIT LINES AND PORTION OF THE LINE WILL GO FROM WATERMILL TO WELL BAR AND YOU COULD SEE A PORTION OF THE LINE FROM WATERLOO TO WILMORE ROUGHLY AROUND 1.4 MILES.

WE'LL NEED A NEW RIGHT AWAY.

IN ADDITION TO THIS 3 45 KV UPGRADE, UH, THE WATERLOO TO 11 TO WILMORE 1 38 KV WILL BE UPGRADED AND ALSO THE WALMART FIRST SIX NINE KV LINE WILL BE CONVERTED TO 1 38 K.

THAT'S KIND OF A HIGH LEVEL HERE FOR PROJECT.

UH, PAUSE TO SEE IF THERE ARE ANY QUESTIONS ON THE WALMART RULE 38 KV 3 45 KV ONE 30 K PROJECT.

OKAY, ANY QUESTIONS ON THIS ONE? SO WE'D BE LOOKING TO ENDORSE ENCORE, THE ENCORE WILMER 3 45 1 38 K WEEKS.

WHICH REGIONAL PLANNING GROUP PROJECT OPTION ONE.

CAN WE PUT THIS ON THE COMBO BALLOT? OKAY.

ALRIGHT, THANK YOU.

UH, THE LAST PROJECT IS THE 43 45 1 30 CADENCE, WHICH REBOUND PROJECT GAINED.

THIS IS AN ONCORE PROJECT, ESTIMATED COST OF 103.5 MILLION.

THIS WILL NOT REQUIRE A CM ADDRESS THAT WILL HAVE D ISSUED IN COUNTY.

SO, UH, PROJECT NEED, UM, WE'RE LOOKING AND WE WE'RE SEEING, UH, ONE, PARTICULARLY THIS PROJECT, UH, OVERLOAD UNDER X MINUS ONE IN MINUS ONE CONDITION.

NEXT, PLEASE TO ADDRESS THAT WE LOOKED AT FIVE OPTIONS, SHORTLISTED TO FOUR, AND, UH, THIS, SOME OF THE OPTIONS WILL HAVE AT LEAST ONE OF THE OPTIONS.

IT WAS NOT FEASIBLE TO IMPLEMENT, THOUGH IT'S NOT PRESENTED HERE.

OTHER THAN THAT, THERE ARE THREE OPTIONS.

OPTION ONE, OPTION ONE A AND OPTION THREE OR PRESENTED HERE, UH, BASED ON THE REVIEW.

OPTION ONE A ADDRESSES THE WHOLE EMPTY VIOLATIONS AND LEAST, UH, COST OPTION AND IT ALSO ADDRESSES SOME OF THE AGING INFRASTRUCTURE ISSUES IN THAT AREA.

OKAY, OPTION ONE ALSO IMPROVES THE LONG TERM LOAD SERVING CAPABILITY AND IT DOES NOT REQUIRE ANY RIGHT AWAY.

THANKS, PLEASE.

WE HAVE A QUESTION FROM ERIC GAR.

GO AHEAD ERIC.

SORRY.

OPTION ONE, WHICH HAD A HIGHER COST OPTION ONE A, UH, TO ADDRESS THE RULE YOU NEED.

UM, I WONDER IF ENCORE OR ERCOT KNOWS THE AGE OF THE EQUIPMENT THAT'S BEING REPLACED AND, AND THIS OPTION OFF THE TOP OF YOUR HEAD.

I'M NOT ASKING FOR LIKE A, A SCRAMBLE OF RESEARCH, BUT IF, IF YOU DON'T, MAYBE WE CAN FOLLOW UP LATER.

YEAH, ERIC, UNFORTUNATELY I DON'T HAVE THAT INFORMATION IN FRONT OF ME, BUT IF THERE IS ANYBODY IN ENCORE THEY WANNA TAKE OUT THE SITE.

THIS IS SNAG WITH ENCORE.

UH, ERIC, THE STATION WAS INITIALLY CONSTRUCTED IN 1960S.

IF YOU NEED MORE OF EQUIPMENT BREAKDOWN, I DON'T HAVE THAT IN FRONT OF ME RIGHT NOW, BUT SOUNDS GOOD.

ALRIGHT, ANY OTHER QUESTIONS? UH, THE SYNCHRONOUS RESIDENTS ASSESSMENT DID NOT IDENTIFY ANY IMPACT WITH OPTION ONE A.

I SEE, UH, QUESTION OR COMMENT.

THE CONDITION ANALYSIS AND SENSITIVITY ANALYSIS FOR NEW GENERATION IN LOW SCALING DID NOT IDENTIFY ANY IMPACT OR OPTION ONE EIGHT.

NEXT PLEASE.

YEAH, SO BASED ON THE REVIEW ER CARD, IT'S RECOMMENDING THE REVISED OPTION, WHICH IS OPTION ONE.

WE STARTED WITH

[04:35:01]

SO THE IS EXPECTED IN SERVICE OF DECEMBER, 2025 AND THE COST IS A HUNDRED $0.4 MILLION.

AND LET'S GO TO THE NEXT ONE PLEASE.

THE OVERVIEW OF THE PROJECT PRIMARILY, UH, REBUILDING THE 41 38 3 45 1 30 KV STATION.

UH, LET'S GO TO THE NEXT, NEXT PAGE.

LOOK, MAP.

YEAH, SO THIS IS LOOKING AGAIN, UH, REBUILDING THE 43 3 45 1 30 KV STATION.

UH, ABOUT 15 3 45 KB BREAKERS WITH TEN ONE THIRTY EIGHT KB BREAKER NINE ARRANGEMENT.

AND IT ALSO INSTALLS A SECOND 3 45, 1 38 KV AUTO TRANSFORMER AT 40 SWITCH, UH, WITH AN EMERGENCY RATING OF 750 MDA AND THIS, UH, IT'LL ALSO COLLECT, CONNECT THE FOUR EIGHT TO MESQUITE E SWITCH, 1 38 KV DOUBLE CIRCUIT TO THIS NEW TRANSFORMER.

UM, I THINK THAT'S THOSE ALL THE KEY ASPECTS OF THE PROJECT.

SO I'M GONNA GO HERE, SEE THERE ARE ANY QUESTIONS? NOT THAT YOU HAVE A COMMENT.

YEAH, EXCUSE ME.

UM, THANKS BU I, I KNOW I JUST WANTED TO SAY WITH RESPECT TO ALL THREE PROJECTS HERE, I KNOW THAT ERCOT PLANNING HAS A LOT ON ITS PLATE RIGHT NOW, AND THAT ENCORE CONTINUES TO SEND YOU A LOT OF PROJECTS TO REVIEW.

SO, UM, APPRECIATE PRABU, UH, YOUR TEAM, TIMELY REVIEW OF THESE.

UM, IT APPEARS TO BE CONSISTENT WITH WHAT'S DESCRIBED IN THE PROTOCOLS AND THAT HELPS US MOVE FORWARD, UH, IN DEVELOPING THESE PROJECTS.

SO APPRECIATE YOU AND YOUR TEAM'S WORK ON THESE.

YEAH, THANK YOU MARTHA.

APPRECIATE THAT.

THERE'S A LOT GOING ON WITH OUR P TEAM.

AND THANK, THANK YOU FOR ALL THOSE SUPPORT TOO.

WE'VE WORKED WITH THE PSPS TO PERFORM AN EXPEDITED ROLE OF THIS PROJECT.

HEY, THANK YOU.

ANYTHING ELSE HERE? I, UH, CAN WE GO TO? YEAH, I WAS JUST TRYING TO GO TO THE SLIDE.

UH, EIGHT.

THAT'S, YEAH, SO THERE'S THE RECOMMENDATION.

OKAY, SO WE ARE LOOKING TO ENDORSE THE, UM, ENCORE FOUR A 3 45, 1 38 KV SWITCH, REBUILD, REGIONAL PLANNING GROUP, PROJECT OPTION A ONE.

CAN WE ADD THIS TO THE COMBO BALLOT? OKAY.

THANK YOU FOR THE, THANK YOU.

[19. Other Business]

WE ARE ON TO OTHER BUSINESS.

UM, I THINK WE HAVE A COUPLE OF ANNOUNCEMENTS BESIDES WHAT WE HAVE LISTED.

I AM GOING TO FORCE ANN TO DO THIS.

UM, THE, THE WORKING GROUP TASK FORCE, MEETING MANAGEMENT AND AGENDA.

I, I THINK WE JUST WANNA REMIND FOLKS TO GET THOSE AGENDAS, UM, UP A WEEK BEFORE MEETING.

BUT I WILL SEE IF ANNE HAS ANYTHING ELSE TO ADD THERE.

YEAH, THIS IS ANN.

I THINK WE REINFORCE THIS EVERY YEAR.

I KNOW SUBCOMMITTEES AND TECH ARE GOOD AT DOING IT 'CAUSE THEY HAVE MARKET RULES SUPPORT, BUT TYPICALLY THE WORKING GROUP AND TASK FORCE MEETINGS, UM, DON'T HAVE THAT LEVEL OF SUPPORT, BUT JUST A REMINDER THAT THOSE AGENDAS AND MATERIALS SHOULD BE POSTED A WEEK IN ADVANCE OF YOUR MEETING.

AND THEN I THINK, AND WE ALSO WANTED TO NOTE THAT WE, WE DID MOVE THE FEBRUARY MEETING, UM, WHICH IS NOW ON FEBRUARY, THURSDAY, FEBRUARY 27TH.

AND THEN I THINK HE WANTED TO NOTE THE WORKSHOP ON THE MEMBERSHIP WORKSHOP ON FRIDAY, FEBRUARY 14TH.

YEP, THAT'S RIGHT.

I THINK CATHERINE GROSS WANTED TO CHIME IN ON THE WORKSHOP IF SHE'S ON THE CALL.

UM, SORRY, CAN YOU HEAR ME OKAY? CAN.

EVENTUALLY THE NOVEMBER TAC MEETING, WE HAD TALKED ABOUT HAVING, TRYING TO HAVE A WORKSHOP ON SEGMENT MEMBERSHIP CHANGES, POSSIBLE SEGMENT MEMBERSHIP CHANGES UNDER THE ERCOT BYLAWS.

HI, UM, THIS IS CATHERINE GROSS WITH ERCOT LEGAL AND UM, AT THE SEPTEMBER AND THEN

[04:40:01]

SO, UM, THAT IS SCHEDULED FOR FEBRUARY 14TH AT NINE 30.

AND IF ANYONE HAS PROPOSALS OR IDEAS OF THINGS THAT COULD BE CHANGED, UM, WE ARE ASKING THAT THOSE BE EMAILED TO US BY FEBRUARY 4TH.

UM, THERE WAS A MARKET NOTICE THAT HAS THAT, UM, MEMBERSHIP, UM, EMAIL ADDRESS, BUT IT'S JUST MEMBERSHIP@ERCOT.COM.

UM, AND YEP, THERE IT IS.

SO, UM, PLEASE LET ME KNOW IF YOU HAVE ANY QUESTIONS, BUT, UM, ONCE WE GET PROPOSALS, ASSUMING THAT WE DO GET SOME, I WILL PLAN TO SEND OUT, UM, THROUGH A MARKET NOTICE, AN AGENDA FOR THAT, UH, WORKSHOP, UM, ON FEBRUARY 7TH.

THIS ONE I'LL SEND THE AGENDA.

SO THANK YOU.

UM, SEE THERE'S ONE QUESTION.

HI CATHERINE.

UH, THIS IS JOHN RU HUB WITH T-I-A-C-I WAS JUST CURIOUS, IS THERE A CERTAIN FORMAT THAT YOU WOULD LIKE PROPOSALS TO BE IN THAT'S MOST HELPFUL FOR KA? UM, I DON'T THINK SO.

I, I THINK WHATEVER'S EASIEST FOR YOU.

AND THEN ONCE WE GET THE PROPOSALS, UM, I WAS GOING TO JUST HAVE PEOPLE PRESENT ON THOSE IDEAS IN THE ORDER IN WHICH I RECEIVE THE PROPOSALS.

UM, SO, BUT I WILL COORDINATE WITH WITH ANYONE THAT SENDS ANYTHING IN TO ME.

ANY OTHER, ANY OTHER OTHER VISITS? ALL

[20. Combo Ballot (Vote) ]

RIGHT, WE NEED A MOTION AND A SECOND FOR THE COMBO BALLOT.

VERY LONG COMBO BALLOT.

UH, YOU SAY MOTION ERIC GOFF.

SECOND.

THESE ARE THE FIRST TWO.

I SEE.

ALL RIGHT COREY.

A LITTLE EXTRA TIME TO READ IT SINCE IT'S A COUPLE DOZEN LINES LONGER THAN IT USUALLY IS, BUT IS THIS OUR LARGEST CONDO BALLOT? IT'S CERTAINLY UP THERE.

I'M JUST SO GLAD WE HAD A DECEMBER PRS MEETING TO GET ALL THESE THINGS MOVING FORWARD.

CAN YOU IMAGINE IF WE CANCELED THE CRS MEETING? WE, WE'VE A LOT PAST THIS BALLOT AND THESE THINGS WOULDN'T BE MOVING FORWARD TO THE FEBRUARY BOARD.

SO GOOD ON PRS LEADERSHIP.

ON THE MOTION TO APPROVE THE COMBO BALLOT.

WE WILL START UP WITH THE CONSUMERS, WITH ERIC.

ERIC SCHUBERT? YES, THANK YOU.

MARK DREYFUS, UH, GOT YOUR YES IN CHAT.

AND OUR CO-OPS BLAKE? YES SIR.

GOT YOUR YES IN CHAT, KYLE.

JOE, DAN FOR MIKE? YES, PLEASE.

ONTO OUR INDEPENDENT GENERATORS.

THANK YOU, SIR.

DID WE LOSE BRIAN ALONG THE LINES? HOW ABOUT NED? YES SIR.

UH, LAST CHANCE FOR IAN HAILEY TO JOIN THE PARTY ONTO OUR IRA STILL? YES.

THANK YOU ROB FOR KEITH? YES, COREY.

[04:45:01]

THANK YOU SIR.

ON TO OUR MUNIS, RUSSELL.

YES, THANK YOU COREY.

THANK YOU SIR.

AND ALICIA? YES, THANK YOU.

THANK YOU SO MUCH.

MOTION CARRIES UNANIMOUSLY.

THANK Y'ALL.

THANK YOU COREY.