[00:00:01]
[1. Call General Session to Order]
GOOD AFTERNOON.MEMBERS OF THE FINANCE AND AUDIT COMMITTEE AND GUEST, I'M BILL FLORES, COMMITTEE CHAIR.
I WANNA WELCOME EVERYONE TO THE DECEMBER 8TH, 2025 FINANCE AND AUDIT COMMITTEE MEETING.
I HEREBY CALL THIS MEETING TO ORDER.
THIS MEETING IS BEING WEBCAST TO THE LU TO THE PUBLIC ON WEB ON ERCOT WEBSITE.
I'VE CONFIRMED THAT QUORUM IS PRESENT IN PERSON.
BEFORE MOVING ON TO TODAY'S BUSINESS, I'LL HIGHLIGHT TO COMMITTEE MEMBERS THAT THE ANTITRUST ADMONITION AND SECURITY MAP ARE INCLUDED WITH THE POSTED BEATING MATERIALS, THE FIRST ORDER OF BUSINESS ON TODAY'S AGENDA AS ITEM TWO, NOTICE OF PUBLIC COMMENT, IF ANY.
TODAY'S BEATING WAS PUB POSTED PUBLICLY ON DECEMBER 1ST, 2025, AND PROVIDED INSTRUCTIONS FOR THE PUBLIC FOR COMMENTING IN PERSON.
TO DATE, NO ONE HAS EXPRESSED AN INTEREST IN COMMENTING.
IS THAT STILL CORRECT, J THAT IS CORRECT, CHAIRMAN.
[3. September 22, 2025, General Session Meeting Minutes]
NEXT IS AGENDA ITEM THREE.GENERAL SESSION MEETING MINUTES.
THERE'S A DRAFT IN THE MEETING MATERIALS.
DOES ANYONE HAVE ANY COMMENTS OR WISH TO MAKE A MOTION? OKAY, SECOND.
ANY OPPOSED OR ABSTENTIONS MEETINGS? MINUTES ARE APPROVED.
[4. Results of Annual Committee Self-Evaluation Survey]
NEXT IS AGENDA ITEM FOUR, THE RESULTS OF THE ANNUAL COMMITTEE SELF-EVALUATION SURVEY.FOLLOWING THE SEPTEMBER MEETING BOARD MEMBERS WHO SERVED ON THE F AND A COMMITTEE DURING 2025 WERE ASKED TO COMPLETE A COMMITTEE.
SELF-EVALUATION SURVEY RESULTS HAVE BEEN COMPILED AND ARE INCLUDED IN THE MEETING MATERIALS.
TO FACILITATE, UH, TODAY'S DISCUSSION, WOULD ANYONE LIKE TO COMMENT ON THE SURVEY RESULTS? OKAY, I DON'T SEE ANYTHING.
THE ORGAN ANNUAL AUDIT OF, UH, SYSTEM AND ORGANIZATION CONTROL, OR SOC IS COMMONLY CALLED INCLUDES THREE SUB ITEMS AND AGENDA ITEM 5.1.
CHAD THOMPSON, THE ERCOT DIRECTOR OF COMPLIANCE ANALYSIS, WILL PRESENT THE REVIEW OF REQUIREMENTS FOR ANNUAL OF SYSTEM AND ORGANIZATIONAL CONTROL AND AGENDA ITEM 5.2, WEAVER AND TIDWELL WILL PRESENT THE RESULTS OF EXAMINATION AND INDEPENDENCE REPORT FROM THE SYSTEM CONTROL AUDITOR.
AND IN THE AGENDA, ITEM 5.3, CHAD WILL RETURN TO THE PODIUM TO PRESENT STAFF'S RECOMMENDATION REGARDING ACCEPTANCE OF THE 2025 SOC AUDIT REPORT.
THE COMMITTEE PLANS TO REVIEW THE CONFIDENTIAL REPORT LATER THIS MORNING, EXCUSE ME, THIS AFTERNOON, AN EXECUTIVE SESSION, AND THEN RETURN TO GENERAL SESSION FOR A VOTE ON THE RECOMMENDATION AND AGENDA ITEM 9.1.
[5.1. Review of Requirements for Annual Audit of System and Organization Control]
EXCUSE ME, I'M SORRY.WE'RE GONNA GO WITH, UH, YOU FIRST, OKAY, SIR.
CHAD THOMPSON, DIRECTOR OF OF COMPLIANCE AND I APPRECIATE THAT INTRODUCTION 'CAUSE I REALLY DON'T HAVE ANYTHING ELSE TO SAY.
YOU KIND OF, YOU KIND OF TOOK EVERYTHING THAT I WAS PLANNING ON DISCUSSING, UM, ALREADY.
SO YES, I'M HERE TO DISCUSS THE 2025 SOC AUDIT WITH Y'ALL TODAY.
UH, THERE IS A VOTING ITEM REQUEST FOR Y'ALL TO, UM, RECOMMEND APPROVAL OF THE REPORT.
AND, UM, MELANIE TOLL AND KENNEDY, UH, UM, ALEXIS KENNEDY ARE HERE TO, TO TALK ABOUT, UH, UH, WEAVER'S WORK ON THIS AS WELL.
UM, THE KEY TAKEAWAY HERE ON THE SLIDE AGAIN IS THAT, UM, THIS AUDIT IS REQUIRED PER PROTOCOL SECTION 1.4, PARAGRAPH ONE, UH, THAT ERCOT DOES HAVE AN AUDIT, UM, OF THIS TYPE DONE AT LEAST ANNUALLY.
UM, THERE'S, THERE'S A LOT OF CONTENT HERE.
I GUESS REALLY WHAT I WOULD FOCUS ON FOR Y'ALL HERE IS PROBABLY THE THIRD BULLET, WHICH IS THAT, YOU KNOW, MARKET PARTICIPANTS RELY ON ERCOT MARKET AND, UH, SETTLEMENT BILLING PROCESSES AS, UH, THE RESULTS IMPACT THEIR FINANCIAL STATEMENTS.
AND SO OUR SOC EXAMINATION REPORT DOES PROVIDE CRITICAL INFORMATION TO THE USER AND ENTITY FINANCIAL EXECUTIVES AND THEIR, UH, FINANCIAL AUDITORS.
UM, AND THEN IN TERMS OF TIMELINE, UM, THE AUDIT PERIOD IS OCTOBER ONE THROUGH SEPTEMBER 30.
AND THEN, UH, ONCE THIS IS, UH, PROVEN AND ACCEPTED BY THE BOARD, WE WILL FOLLOW UP WITH A MARKET NOTICE THAT WILL BE ISSUED, UH, AFTERWARDS.
AND THEN JUST A LITTLE BIT MORE DETAIL HERE ON THE SCOPE.
UM, THERE HAVE BEEN 22 OBJECTIVES AND 116 CONTROLS RELATED TO MARKET SETTLEMENTS AND BILLING.
AND, UH, THE 22 OBJECTIVES KIND OF COVER THESE AREAS HERE, TRADITIONAL, I'M SORRY, TRANSACTION PROCESSING CONTROLS AND GENERAL, UM, IT CONTROLS INCLUDING REGISTRATION, QUALIFICATION, NETWORK OPERATIONS MODEL, UH, DAY HEAD MARKET OPERATIONS, REAL-TIME, UH, MARKET, AND CRR, UH, SEDIMENT BILLING, FINANCIAL TRANSFER.
AND THEN ON THE IT SIDE, ACCESS CONTROLS, CHANGE MANAGEMENT, AND, UH, PROCESSING BACKUP RECOVERY.
CHAD, I'M GONNA ASK YOU TO SUSPEND FOR JUST MINUTE.
THIS MEETING, THE PUBLIC UTILITY COMMISSION OF TEXAS WILL COME TO ORDER TO CONSIDER MATTERS, HAVE BEEN DULY POSTED WITH THE SECRETARY OF STATE FOR TODAY, DECEMBER 8TH, 2025.
[00:05:01]
WATCHING THIS EXTERNALLY.UH, WE HAD A THIRD COMMISSIONER WALK IN, SO WE HAVE A QUORUM.
SO WE HAD TO HAVE A, UH, CALL THE PUC TO ORDER.
ERCOT EMPLOYEES, A THIRD PARTY AUDIT FIRM TO CONDUCT THE EXAMINATION, UH, THE SETTLEMENT BILLING PROCESS.
AND WITH THAT, I WILL, UH, TURN IT OVER TO MELANIE TOLL TO GIVE HER UPDATE, AND THEN I'LL BE BACK AT THE END, UM, AFTER THAT.
SO, WELCOME, LOOKING FORWARD TO YOUR REPORT.
[5.2. Results of Examination and Independence Report from the System and Organization Control Auditor]
HELLO EVERYONE.MY NAME IS MELANIE TOLL, I'M A DIRECTOR, UM, OVER THE SOC EXAMINATION FOR WEAVER.
I'M HERE TO PRESENT OUR RESULTS FOR THIS YEAR'S AUDIT.
UM, SO WE'LL GO OVER KIND OF THE, JUST THE BRIEF STOCK EXAMINATION OVERVIEW, WHAT OUR AUDIT APPROACH WAS, AND THEN JUST AUDITOR INDEPENDENCE.
SO JUST GOING THROUGH, UH, THE OVERVIEW.
SO THE SOC ONE IS GOVERNED BY THE A-I-C-P-A.
UM, THE SOC ONE PARTICULARLY IS ISSUED UNDER THE STANDARD, UH, NUMBER SSA 18 SSA 21 SSA 23.
ALL OF THESE ARE RELATED TO THE INTERNAL CONTROLS OVER FINANCIAL REPORTING, WHICH IS THE SOC ONE SUBJECT MATTER.
UM, FOR THE SCOPE WE'RE COVERING ERCOT SETTLEMENTS AND BILLING OPERATIONS AND THE SUPPORTING APPLICATIONS AND SYSTEMS THAT HELP FACILITATE THAT SETTLEMENT AND BILLING.
UM, FOR THE PERIOD OF OCTOBER 1ST, 2024 TO SEPTEMBER 30TH, 2025, AS CHAD SAID, THERE WERE 22 CONTROL OBJECTIVES, 116 CONTROLS.
UM, THERE IS ALSO SUB-SERVICE ORGANIZATIONS, THOSE WERE CARVED OUT.
SO, UM, WE LOOK AT THE SOC REPORTS THAT THOSE ORGANIZATIONS HAVE.
THAT'S MICROSOFT CORPORATION AND, UM, REIA HOLDINGS LIMITED FOR BLACKLINE, WE HAD THREE EXAMINATION PHASES, THE DOCUMENT DOCUMENTATION COLLECTION PHASE, WHICH OCCURRED BETWEEN JUNE AND SEPTEMBER.
UH, CONTROL TESTING, WHICH HAPPENED BETWEEN JULY AND SEPTEMBER.
AND THEN REPORTING THAT HAPPENED BETWEEN SEPTEMBER AND NOVEMBER OF THIS YEAR.
OUR RESULTS WERE AN UNMODIFIED OPINION.
SO NO, UM, ISSUES FROM THAT PERSPECTIVE AND NO REPORTABLE EXCEPTIONS FOR THE 2025 AUDIT.
FROM AN AUDIT APPROACH STANDPOINT, UM, OUR AUDIT TEAM IS COMPRISED OF A QUALITY RISK REVIEWER, A PARTNER, UM, DIRECTOR, SUPERVISOR AND ASSOCIATES.
UM, WE USE A RISK-BASED APPROACH, SO WE'RE FOCUSING ON THE RISKS AS TO THE USER ENTITIES, INTERNAL CONTROLS OR FINANCIAL REPORTING, AND HAVING THE CONTROLS THAT HAVE BEEN DEFINED BY ERCOT DIRECTLY TIED TO THOSE RISKS.
FROM AN APPLICATION SYSTEM SCOPING PERSPECTIVE, ERCOT SCOPED IN THE SOC ONE EXAMINATION ALL APPLICATIONS AND SYSTEMS THAT DIRECTLY IMPACT THE, THAT INTERNAL CONTROLS FOR FINANCIAL REPORTING AS IT RELATES TO THE USER ENTITIES.
UM, OUR CONTROL TESTING APPROACH IS WE DO DESIGN WALKTHROUGHS, UM, CONTROL TESTING, OPERATING EFFECTIVENESS, CONTROL TESTING, WHICH USES A COMBINATION OF INQUIRY OBSERVATION, INSPECTIONS OF DOCUMENTS, RECORDS, CONFIGURATIONS, AND THEN ANY SORT OF REPERFORMANCE OVER TRANSACTIONAL CONTROLS.
AND THEN WE ALSO LEVERAGE SAMPLING GUIDANCE IN ACCORDANCE WITH THE A-I-C-P-A-A-U-C SECTION FIVE 30, WHICH WE HAVE IN THE APPENDIX.
UM, OUR QUALITY ASSURANCE PROCESS ENSURES THAT TESTING PROCEDURES AND THE SOC ONE REPORT ARE REVIEWED BY THE SUPERVISOR, A DIRECTOR, A PARTNER, AND THEN EVENTUALLY AN ENGAGEMENT QUALITY RISK REVIEWER.
SO THERE'S ABOUT FOUR LEVELS OF REVIEW PRIOR TO ISSUING ISSUANCE OF A REPORT.
OUR RECOMMENDATION FOR 2025, UM, SO AT THE END OR CONCLUSION OF THIS YEAR'S EXAMINATION ROLLING INTO NEXT YEAR, IS TO JUST DO A FULL EVALUATION OF ALL PROCESSES RELATED TO SETTLEMENT AND BILLING OPERATIONS SYSTEM, JUST TO REAFFIRM THOSE CRITICAL AND KEY CONTROL POINTS WITH PROCESS OWNERS.
UM, EVERY YEAR YOU'RE IMPROVING YOUR PROCESSES, YOUR OPERATIONS, YOUR, UM, PROCEDURES.
AND SO JUST MAKING SURE THAT ALL OF THAT IS REFLECTED AND EASILY DEFINED WITHIN YOUR CONTROL SET.
AUDITOR INDEPENDENCE, UM, IN COMPLIANCE OR IN, UM, ACCORDANCE WITH THE A-S-B-P-A-I-C-P-A CODE OF PROFESSIONAL CONDUCT, UM, WE ARE REQUIRED TO BE INDEPENDENT FROM ERCOT.
UM, IN ALL MATTERS, IN EFFECT, THE ENTIRE TEAM.
UM, WE HAVE POLICIES AND PROCEDURES THAT ENSURE THAT WE ARE INDEPENDENT IN RELATION TO ERCOT.
[00:10:01]
THANK YOU.ANY QUESTIONS FOR MELANIE ON HER REPORT?
[5.3. Recommendation regarding Acceptance of 2025 System and Organization Control Audit Report]
OKAY, CHAD, YOU'RE UP AGAIN.UH, THANK YOU FOR HAVING ME BACK HERE.
SO WE'RE JUST HERE, UH, FOR THIS MATERIAL, I THINK THAT WAS ALREADY, UM, PROVIDED IN THE, IN THE MATERIALS.
AND THIS IS, UM, YOU KNOW, JUST THE, THE RECOMMENDATION TO, TO ACCEPT THE REPORT FROM, UM, WEAVER FOR 2025.
AND I BELIEVE THAT'S ON THE AGENDA, UM, AFTER EXECUTIVE SESSION, CORRECT? IS THAT CORRECT? OKAY.
IF THERE ARE ANY QUESTIONS FOR CHAD ON THE RECOMMENDATION.
I HEAR NONE, SO I BELIEVE WE'RE NOT READY FOR THE NEXT AGENDA ITEMS. THANK YOU.
[6.1. Review 2025 Financial Summary]
ARE THE COMMITTEE BRIEFS.RICHARD SHIELD WILL PRESENT THE FIRST COMMITTEE, UH, BRIEF, WHICH IS AGENDA ITEM 6.1, REVIEW OF 2025, FINANCIAL SUMMARY CHAIR.
I'LL TAKE US THROUGH THIS QUICKLY.
UH, THE KEY TAKEAWAYS, JUST WANNA WALK THROUGH, UH, A COUPLE OF THINGS THERE.
UH, THE SECOND BULLET NET OF, UH, FORECAST REVENUES, NET OF EXPENDITURES, 101.2 MILLION, FAVORABLE TO BUDGET DRIVEN BY INTEREST INCOME.
THAT'S A STORY YOU'LL SEE THROUGHOUT THE MATERIALS.
AND THERE IN THE THIRD BULLET, YOU'LL SEE THAT WE ARE EXPECTING 252.6 MILLION OF OPERATING FUNDS AT THE, UM, END OF, UM, AS OF 2025, UH, OCTOBER 31ST VERSUS ONE 60.5.
IT'S LARGELY DRIVEN BY INTEREST RATES.
UM, INTEREST RATES REMAINING ELEVATED.
UH, THERE'S A FEW CHANGES, UH, BOARD TO BOARD.
WHEN WE'RE LOOKING AT THE, UH, REVENUE SIDE, WE HAVE AN 8 MILLION INCREASE ON INTEREST INCOME.
PART OF THAT'S DRIVEN BY THE MARCH MARKET.
ON OUR SECURITIES, WE HAVE OUR SYSTEM ADMIN FEE UP 0.3 MILLION.
WE HAVE A CHANGE, UH, ON THE REVENUE SIDE, ON THE INTERCONNECTION REVENUE AND THE INSPECTION REVENUE.
BOTH, UH, DECLINED, UM, MARGINALLY 0.6 MILLION, 1 MILLION ON THE INSPECTION REVENUE, OF COURSE, THAT, THAT REVENUE SIDE IS OFFSET BY THE EXPENDITURE SIDE.
SO WE'RE SEEING LOWER EXPENDITURES FOR WEATHERIZATION ON THE EXPENDITURES YEAR.
IN FORECAST SIDE, WE'RE LOOKING AT A VARIANCE TO BUDGET OF 24.4 MILLION RIGHT NOW, 12.1 MILLION OF THAT, ALMOST 49.6% IS, UH, MADE UP OF OUR LEGAL COST RECOVERY.
OUR, UH, LEGAL SERVICES FOR LITIGATION RELATED, UH, WORK THAT WE'VE DONE THAT HAS NOT TRANSPIRED THIS YEAR DUE TO FAVORABLE RULINGS.
AND WE HAVE THE 1.5 MILLION FAVORABLE PROPERTY TAX THAT'S WITHIN THAT 12.1 MILLION.
OUR NEXT BIGGEST VARIANCE ITEM IS A STAFFING MANAGEMENT OF 4.5 MILLION.
THAT'S ABOUT 20% OF THE TOTAL VARIANCE, AND THAT'S LARGELY DRIVEN, UM, BOARD TO BOARD.
THE CHANGE THERE IS ABOUT A MILLION AND WE'RE LOOKING AT SLOWER HIRING IN COO THAN ANTICIPATED.
SO THE CHIEF OPERATIONS, WHEN WE'RE LOOKING AT THE OTHER EXPENDITURES ITEM, THE 14.5 MILLION, WE HAD A SWIZZLE THERE BETWEEN OUR COMMON INFRASTRUCTURE.
UH, WE HAD A OF 1 MILLION FAVORABLE THERE.
WE WERE PREVIOUSLY EXPECTING 1.5 MILLION FAVORABLE FOR OUTSIDE SERVICES AND STUDIES.
THAT HAS NOT TRANSPIRED, BUT WE HAD THE ADDITIONAL INFRASTRUCTURE PURCHASE THAT'S OFFSETTING THAT.
SO ABOUT A 0.5 MILLION NET DIFFERENCE AND ABOUT 0.7 MILLION OF FAVORABLE BUILDING AND MAINTENANCE EXPENDITURES WE EXPECTED ARE NOT COMING INTO PLAY THIS YEAR, LARGELY DUE TO THE CONSTRUCTION AND THE ONGOING PLANNING FOR 26 AND 27.
SO WE'VE DEFERRED MAINTENANCE IN THAT SPACE.
WE'RE LOOKING AT BUDGET VERSUS ACTUAL ON MONTHLY TERAWATT HOUR LOAD.
UH, WE'RE CONTINUING TO SEE A USE TREND HIGHER YEAR OVER YEAR.
WE'RE EXPECTING ABOUT A 3% FAVORABLE, UM, VARIANCE ON THE REVENUES ON THEIR, UH, ERCOT STATEMENTS.
A FINANCIAL POSITION, AGAIN, INTEREST IS A STORY, UH, THROUGHOUT THE YEAR AND ON THIS AS WELL.
UH, ALSO IF YOU'LL NOTICE ON, UH, WE HAVE THE CR AUCTION LIABILITIES THAT HAVE IMPROVED YEAR OVER YEAR.
SO WE'RE SEEING A LARGER BALANCE THERE, PARTIALLY DRIVEN BY VALUE OF THE, THE CR AUCTION PRODUCTS THEMSELVES.
STATEMENTS OF ACTIVITIES AND NET ASSETS.
UM, MOST OF THIS ARE FAMILIAR TO YOU.
I'LL POINT OUT AGAIN, ESPECIALLY FOR THE NEW BOARD MEMBERS.
UH, THE 4.4 MILLION, UH, DOWN AT THE VERY BOTTOM, THE VERY LAST, UH, VERY LAST ITEM, 4.4 MILLION INCREASE IN TREASURY OBLIGATIONS.
[00:15:01]
FAIR VALUE ADJUSTMENT.IT WAS A 0.3 MILLION GAIN IN 25 VERSUS A 4.1 MILLION LOSS IN 2024.
WE, AND WE DO HOLD ALMOST ALL OF OUR SECURITIES, UH, TO MATURITY.
UH, THERE, IT WOULD BE A VERY UNUSUAL SITUATION WHERE WE DID NOT HOLD, UH, SECURITY OF MATURITY.
UH, WINTER STORM URI WOULD COME TO MIND AS ONE OF THOSE, THOSE SITUATIONS.
OTHERWISE, WE, WHILE WE, UH, RECOGNIZE GAINS AND LOSSES, WE DO NOT REALIZE LAST CRR FUNDS, UH, WE PEAKED IN AUGUST, 2025 AT 2.3 BILLION IN FUNDS HELD.
OF COURSE, THIS IS A SIGNIFICANT DRIVER FOR OUR INTEREST INCOME, BUT STAYING, STAYING ELEVATED.
AND AT A HIGH LEVEL, BEFORE YOU LEAVE THIS, RICHARD, THERE WAS A LITTLE BIT OF A DECLINE IN THE LAST FEW MONTHS.
IS THERE, IS THERE A TREND THAT, UH, WE NEED TO BE AWARE OF IN THAT REGARD? IT DI THAT WAS A, THAT WAS A LONG TERM AUCTION DURING THAT PERIOD OF TIME, SO I, I DON'T, I DON'T SEE ANYTHING TO BE CONCERNED ABOUT.
WE DO HAVE THE UNCERTAINTY WITH RTC PLUS B.
WE'RE CONTINUING TO WATCH THIS, UH, AS WE PRESENTED.
I BELIEVE PREVIOUSLY, MAYBE IT WAS AT THE JUNE MEETING, I'D HAVE TO LOOK BACK, BUT WE TALKED A LITTLE BIT ABOUT THE EXPECTED SAVINGS WE'RE LOOKING FOR WITH RTC PLUS B, LONG TERM WITH CONGESTION.
AND SO WE EXPECT THAT TO, TO ROLL THROUGH HERE TO THIS NUMBER.
AND WITHIN THIS BALANCE SO FAR, WE'RE NOT SEEING A SIGNIFICANT CHANGE.
[Items 6.2 & 6.3]
NEXT TWO ITEMS ON THE AGENDA ARE, UH, CAN YOU GIMME A HAND HERE? OUR NEXT TWO ITEMS ARE REPORT ONLY.IT'S FOR THE DEBT COMPLIANCE AND INVESTMENTS.
BOTH OF THOSE ITEMS, UH, WERE IN COMPLIANCE.
UH, INVESTMENT RETURNS CONTINUE AS EXPECTED.
SHE'S THE LEAD ON THOSE TWO REPORTS AND THEY APPEAR TO BE NOMINAL IN MY REVIEW.
DOES ANY COMMITTEE MEMBER OR ANY BOARD MEMBER HAVE A QUESTION ON THOSE? OKAY, IF NOT,
[7. Future Agenda Items]
UH, WE'LL MOVE ON TO AGENDA ITEMS SEVEN, FUTURE AGENDA ITEMS. AND RICHARD IS GOING TO WALK US THROUGH THAT.FUTURE AGENDA ITEMS WE'VE WRAPPED UP THE YEAR.
WE'RE EXPECTING HEAVY COMPLIANCE CALENDAR IN THE FIRST MEETING, FEBRUARY OF 2026.
IF ANYONE HAS ANY QUESTIONS ON THE CALENDAR, PLEASE LET ME KNOW.
OKAY, I DON'T SEE ANY, SO THANK YOU.
UH, THE NEXT, UH, THE LAST ITEM BEFORE WE MOVE INTO EXECUTIVE SESSION IS AGENDA ITEM EIGHT, OTHER BUSINESS.
IS THERE ANY OTHER BUSINESS, UM, THAT ANY COMMITTEE MEMBER WISHES TO RAISE BEFORE WE GO TO EXECUTIVE SESSION? I DON'T SEE ANY.
[Convene Executive Session]
SO AT THIS TIME, THE COMMITTEE WILL RECESS, GENERAL SESSION AND CONVENE EXECUTIVE SESSION.WE HAVE FOUR VOTE VOTING ITEMS, UH, TO DISCUSS DURING EXECUTIVE SESSIONS.
SO GENERAL SESSION WILL RECONVENE AFTER THE CONCLUSION OF THE EXECUTIVE SESSION.
THE GENERAL SESSION IS NOW RECESSED AND THE WEBCAST WILL BE CONCLUDED.
THIS MEETING, COMMISSIONER OF TEXAS WILL STAND IN RECESS.
UH, THE FINANCE AND AUDIT COMMITTEE IS RECONVENED.
UH, THE MEETING IS BEING WEBCAST TO THE PUBLIC ON ERCOT WEBSITE.
I HAVE CONFIRMED THAT A QUORUM IS PRESENT IN PERSON.
[9. Vote on Matters from Executive Session]
HAVE FOUR VOTING ITEMS, UH, FROM EXECUTIVE SESSION.FIRST, I'LL ENTERTAIN A MOTION TO RECOMMEND THAT THE BOARD APPROVE THE RISK MANAGEMENT MATTER DISCUSSED UNDER A AGENDA ITEM ES 2.6 0.2.
I'D LIKE TO MAKE A MOTION CHAIRMAN.
ANY OPPOSED OR ABSTENTIONS? OKAY.
NEXT, I'LL ENTERTAIN A MOTION TO APPROVE THE PERSONNEL MATTER DISCUSSED DURING EXECUTIVE SESSION OR AGENDA ITEM ES TWO, EXCUSE ME, TWO POINT 10.
ANY OPPOSED? ANY ABSTENTIONS? OKAY, THAT MOTION'S APPROVED.
NEXT IS THE SOC AUDIT REPORT DISCUSSED DURING GENERAL SESSION.
AGENDA ITEMS 5.5 0.3, UH, AND REVIEWED UNDER AGENDA ITEM ES 2.3 IN THE EXECUTIVE SESSION ON WILL ENTERTAIN A MOTION TO THAT THE BOARD ACCEPT THE 2025 SYSTEM AND SOC, UH, EXCUSE ME, THE SOC AUDIT REPORT.
ANY OPPOSED? ANY ABSTENTIONS? OKAY.
AND FINALLY, THE RECOMMENDATION OF THE SELECTION OF THE 2026 INDEPENDENT SYSTEM AND ORGANIZATION CONTROL AUDITOR, UH, WHICH WAS GEN ITEM, UH, 9.2 AND IT WAS 2.3 0.1 IN THE EXECUTIVE SESSION.
UH, THE, UH, AUDITOR WILL NOT BE, UH, IDENTIFIED UNTIL TOMORROW DURING GENERAL DURING THE, UH, BOARD MEETING.
[00:20:01]
SO MOVED.ANY OPPOSED? ANY AB STITCHES? OKAY.
THE MEETING OF THE FINANCE AND AUDIT COMMITTEE IS NOW ADJOURNED AND THE WEBCAST WILL BE CONCLUDED.