* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.
          [00:00:02]
          ALL RIGHT. 
          GOOD AFTERNOON EVERYONE. 
          I'M BILL FLORES, 
          [1. Call General Session to Order ]
CHAIRMAN OF THE BOARD OF DIRECTORS. 
          I WANNA WELCOME EVERYONE TO THE, UH, 20 APRIL 20TH AND 21ST 2026 BOARD OF DIRECTORS MEETINGS. 
          I'VE CONFIRMED THAT A QUORUMS PRESENT IN PERSON AND HEREBY CALL THIS TO ORDER THIS MEETING, THE ERCOT BOARD OF DIRECTORS. 
          THIS MEETING IS BEING WEBCAST LIVE TO THE PUBLIC ON THE ERCOT WEBSITE. 
          AT THIS TIME, I'D LIKE TO ASK IF PUC CHAIR THOMAS KLI WOULD LIKE TO CALL AN OPEN MEETING OF THE PUBLIC UTILITY COMMISSION OF TEXAS TO ORDER. 
          THANK YOU, MR. CHAIRMAN. 
          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 APRIL 20TH, 2026. 
          AND GO AHEAD AND INTRODUCE YOUR NEWEST COMMISSIONER, TOO. 
          YES, WE, WE NOW HAVE A FULLY AND PANELED COMMISSION. 
          SO, PATRICK RODDY WAS RECENTLY APPOINTED BY GOVERNOR ABBOTT, AND, UM, WE THOUGHT WE'D GIVE HIM A COUPLE OF MOMENTS TO, UH, INTRODUCE HIMSELF. 
          THANK YOU, MR. CHAIRMAN. 
          I'VE ONLY PREPARED ABOUT 40 MINUTES WORTH OF REMARKS IF EVERYONE CAN, UH, HANG WITH ME. 
          BUT, UH, NO, THANK YOU VERY MUCH. 
          IT'S, UH, AN INCREDIBLE HONOR TO HAVE, UM, BEEN APPOINTED BY GOVERNOR ABBOTT. 
          AND, UH, I LOOK FORWARD TO WORKING WITH EVERYONE IN THIS ROOM AND EVERYONE, A PART OF ALL ORGANIZATIONS AND STAKEHOLDER COMMUNITY TO MAKE SURE WE'RE DOING AS BEST AS WE POSSIBLY CAN FOR THE ASSISTANCE OF TEXAS. 
          AND SO APPRECIATE BEING HERE. 
          THANK YOU, MR. CHAIRMAN AND MR. CHAIRMAN. 
          THANK YOU, PATRICK. 
          WELCOME BOARD, AS WE SAID EARLIER, AND WE LOOK FORWARD TO WORKING WITH YOU. 
          UH, THE ANTITRUST ADMONITION, SECURITY MAPPER INCLUDED WITH THE POSTING MEETING MATERIALS, I'M ASSUMING EVERYBODY IS VERY FAMILIAR WITH. 
          THOSE ARE THE FIRST ORDER OF BUSINESS 
          [2. Notice of Public Comment, if Any ]
ON TODAY'S AGENDA IS ITEM TWO. 
          NOTICE OF PUBLIC COMMENT, IF ANY. 
          TODAY'S MEETING, UH, AGENDA WAS POSTED PUBLICLY ON APRIL 13TH, 2026, AND PROVIDED INSTRUCTIONS TO THE PUBLIC FOR COMMENTING IN PERSON. 
          LAST WEEK. 
          THE BOARD RECEIVED A REQUEST TO COMMENT DURING AGENDA ITEM 11.1 FROM NED BAKI. 
          I'M SORRY, UH, REQUESTED TO SPEAK ON BEHALF OF RA. 
          CHAD, HAVE WE RECEIVED ANY FURTHER COMMENT, UH, REQUEST TO COMMENT? NO, NO OTHER COMMENTS. 
          OKAY. 
          AND WE WILL HAVE, UH, DID SPEAK WHEN WE GET TO THAT AGENDA ITEM. 
          UH, NEXT IS AGENDA 
          [3. February 9-10, 2026, General Session  Meeting Minutes ]
ITEM THREE, FEBRUARY 9TH AND 10TH. 
          GENERAL SESSION MEETING MINUTES. 
          THERE'S A DRAFT OF THE MEETING MATERIALS. 
          WOULD ANY BOARD MEMBER LIKE TO DISCUSS? IF NOT, I'LL ENTER, ENTERTAIN A MOTION TO APPROVE THOSE MINUTES. 
          KATHLEEN, I MAKES A MOTION. 
          A SECOND. 
          SECOND. 
          OKAY. 
          FROM MELINDA. 
          THANK YOU. 
          UH, ALL IN FAVOR? AYE. 
          ANY OPPOSED? ANY ABSTENTIONS? THE MINUTES ARE APPROVED. 
          UH, REBECCA 
          [4. High-Impact Policy Discussions in the  Stakeholder Process ]
ZER IS, UH, OUR FIRST PRE, UH, PRESENTER FOR AGENDA ITEM FOUR, HIGH IMPACT PUBLIC OR HIGH IMPACT POLICY DIS DISCUSSIONS IN THE STAKEHOLDER PROCESS. 
          REBECCA, PLEASE PROCEED WITH YOUR PRESENTATION. 
          THANK YOU. 
          I WANTED TO START WITH THE KEY COMMISSION PRIORITIES. 
          AGAIN, THIS CYCLE WE WORKED WITH STAFF ON PERFORMANCE MEASURES FOR EACH OF THESE FIVE ITEMS. UM, WE'RE ALSO HIGHLIGHTING THE STAR NOW, HOW THESE TIE INTO, UM, THE REVISION REQUESTS PROCESS. 
          THOSE PERFORMANCE MEASURES ARE LINKED, AND WE'LL BE FILING QUARTERLY UPDATES AT THE COMMISSION AS WE MOVE THROUGH THE PROCESS. 
          THE FIRST OF THOSE ITEMS IS DISPATCHABLE RELIABILITY RESERVE SERVICE DRRS. 
          THIS WAS AN HB 1500, UM, REQUIREMENTS. 
          I KNOW THAT KEITH AND KAITLYN HAVE AN UPDATE ON THE BOARD PRIORITY ITEMS A LITTLE BIT LATER ON THE AGENDA. 
          THE KEY TAKEAWAYS ARE THAT NPRR 1309, UM, REMAINS ON TRACK TO BE FOR CONSIDERATION WITH THE BOARD IN JUNE. 
          AND THEN THE COMMISSION PROVIDED GUIDANCE LAST MONTH ON SPECIFICALLY ENERGY STORAGE RESOURCE PARTICIPATION IN DRS. 
          WE DO EXPECT, UM, COMMENTS TO TAKE THAT FUNCTIONALITY OUT OF NPR 1310 AND FILE ANOTHER REVISION REQUEST SPECIFICALLY TO ADDRESS THE ENERGY STORAGE RESOURCE ISSUES. 
          NEXT, WE HAVE SB SIX IMPLEMENTATION. 
          WE HAVE FIVE RULEMAKINGS AT THE COMMISSION SINCE THE FEBRUARY BOARD. 
          TWO OF THOSE NOW HAVE ADOPTED RULES, THE NET METERING ARRANGEMENTS AND LARGE LOAD FORECASTING CRITERIA. 
          UM, JEFF WILL TALK ABOUT THE LARGE LOAD INTERCONNECTION STANDARDS AND THE INTERPLAY WITH BATCH PROCESS IN, UM, IN HIS UPDATES. 
          THE NEXT IS THE DEMAND, UM, DEMAND REDUCTION PROGRAM STAFF ASK FOR COMMENTS ON TWO OPTIONS OF THAT, AND WE EXPECT A RULEMAKING PROPOSAL IN THE NEXT, UM, MONTH OR TWO. 
          AND THE FINAL IS THE TRANSMISSION COST RECOVERY PROJECT. 
          STAFF ISSUED A DRAFT REPORT WITH QUESTIONS FOR COMMENTS EARLIER THIS MONTH AND IS LOOKING FORWARD. 
          UM, COMMISSION RECOMMENDATIONS. 
          SO 
          [00:05:01]
ALL OF THESE HAVE A LOT OF PROGRESS THAT'S MOVING VERY QUICKLY, AND WE DO EXPECT THOSE RULES TO BE DONE BY THE END OF THE YEAR. 
          THE FINAL, UM, COMMISSION PRIORITY TIED ITEM WAS LARGELY INTERCONNECTION WITH THE BATCH STUDY PROCESS. 
          AGAIN, JEFF HAS AN UPDATE UNDER AGENDA ITEM NINE AND BOTH PR 1 45 AND NPRR 1325 ARE NOW LIVE. 
          THE STAKEHOLDER PROCESS, A TREMENDOUS AMOUNT OF WORK HAS GONE INTO THIS AND THERE'S BEEN SEVEN WORKSHOPS. 
          WE'RE NOW AT THE SUBCOMMITTEE LEVEL, WHICH IS AGAIN, TAKING SPECIAL MEETINGS TO GET THESE IN THE BOARD IN JUNE AND CONTINUING TO WORK THESE NEXT PHASE KEY ISSUES, THE LARGE LOAD, UM, RIDE THROUGH FREQUENCY AND VAULTED RIDE THROUGH STANDARDS. 
          THESE TWO ARE MARKED BOARD PRIORITY. 
          THEY'RE ALSO ON TRACK FOR CONSIDERATION IN JUNE. 
          I THINK THEY WILL GET A VOTE, THEIR FIRST VOTES ATTACK IN APRIL FROM FUEL SUPPLY SERVICE. 
          WE HAD DIRECTION FROM THE COMMISSION, UM, EARLIER THIS YEAR WITH THE RULEMAKING FOR FARM FUEL SUPPLY SERVICE WITH THAT. 
          AND Y'ALL HAD NPRR 1275 UN TABLED AND AT THE BOARD THIS CYCLE. 
          AND THEN THE NEXT STEPS, WE DO PLAN TO ISSUE AN RFP BY AUGUST 1ST OF THIS YEAR FOR THE WINTER 20 26, 20 27 PROCUREMENT PERIOD. 
          THAT WILL BE UNDER THESE NEW PHASE THREE REQUIREMENTS. 
          AND THEN WE'RE WORKING ON A NEW NPRR TO INCORPORATE THE REMAINING RULE PROVISIONS IN THE PROTOCOL. 
          THE TARGET POSTING FOR THAT IS MAY RDR. 
          I KNOW THE RESIDENTIAL DEMAND RESPONSE AND DEMAND RESPONSE IN GENERAL HAVE LARGER POLICY CONSIDERATIONS, STRATEGIC CHALLENGES AND SOLUTIONS. 
          KEITH DOES HAVE A PRESENTATION WITH, UM, HIGHLIGHTS OF THE CHARLES RIVER REPORT. 
          UM, LATER ON THE AGENDA, I BELIEVE THERE'S ALSO A PUBLIC COMMENT UNDER THAT ITEM, NPRR 1296. 
          WITH THAT DOES REMAIN TABLED, HAS ONGOING CONVERSATIONS AT THE WMS AND RMS LEVEL OR CO REMAINS COMMITTED TO DISCUSSING AND REFINING THIS CONCEPT THROUGH THAT PROCESS. 
          AND THEN WE HAVE THIS SET OF RELIABILITY PROCUREMENT PROCESS IMPROVEMENTS. 
          THESE WERE POSTED LATE LAST YEAR. 
          IT WAS REALLY LESSONS LEARNED FROM THE R-M-R-M-R-A AND CONTRACT FOR CAPACITY PROPOSALS WE'VE SEEN THE LAST TWO YEARS. 
          THESE ARE WORKING THROUGH THE PROCESS. 
          I THINK THE TARGET IS TO SEE APPROVAL AT THE JUNE BOARD. 
          UM, 1315 IN GENERAL HAS A FEW ISSUES THAT WE CONTINUE TO WORK THROUGH THE STAKEHOLDER PROCESS, UM, WITH, UM, POTENTIAL ANY OTHER WORKSHOP AND SOME NEW NPR WORKING THROUGH INDIVIDUAL STAKEHOLDER ISSUES THAT HAVE ARISEN OUT OF THAT PROCESS. 
          AND FINALLY, FIRMING. 
          UM, THIS WAS ALSO AN HB 1500 ISSUE FROM THE 88 SESSION. 
          IT IS A HEAVY LIFT. 
          UM, NPR 1328 ACTUALLY CREATES A WHOLE NEW SECTION OF THE PROTOCOLS. 
          SECTION 28TH. 
          THE, UM, REVISION WAS POSTED EARLIER THIS MONTH. 
          PRS LAST WEEK DID GRANTED URGENT STATUS AND IT'S TABLED AT PRS. 
          WE DO, UM, EXPECT THAT TO GET, UM, IMPLEMENTED BY DECEMBER 1ST. 
          SO THIS WILL AGAIN, MOVE VERY FAST. 
          IT'S, I THINK THE, THE LAST BIG PIECE OF THE, KIND OF THESE POLICY ISSUES OUT OF THE, UM, HB 1500. 
          ANY QUESTIONS FOR REBECCA? OKAY, IS THERE ANYTHING ELSE, REBECCA, ON YOUR REPORT? NO, I, I THINK, UM, WE HAVE A LOT OF STUFF COMING IN JUNE, I THINK LOOKING AT FARMING, THAT'S KIND OF THE NEXT WAVE. 
          SO STAKEHOLDER PROCESS HAS BEEN VERY BUSY, LOTS OF WORK GOING ON, LOTS OF SPECIAL MEETINGS, AND JUST A TREMENDOUS AMOUNT OF WORK TO GET ALL THESE KEY ISSUES IN FRONT OF Y'ALL. 
          OKAY. 
          THANK YOU. 
          AND WE, UH, WANT TO ALWAYS TALK ABOUT THE, UH, THE, OUR APPRECIATION FOR THE INVOLVEMENT OF THE TECHNICAL ADVISORY COMMITTEE AND ALL THE STAKEHOLDER COMMUNITY, UH, TO ASSIST  AS WE GO THROUGH THESE PROCESSES. 
          UM, OUR NEXT GEN 
          [5.1 25RPG004 Oncor Southern DFW Load Interconnection and General Grid Strengthening Project]
ITEM IS FIVE, UH, RECOMMENDATION REGARDING TIER ONE TRANSMISSION PROJECTS, IF ANY. 
          AND THERE ARE TWO SUB ITEMS. THE FIRST IS THE GEN ITEM 5.1, WHICH IS 25 R PG 0 0 4 ON CAR SOUTHERN DFW LOAD, INTERCONNECTION, AND GENERAL GRID STRENGTHENING PROJECT. 
          UH, CHRISTY HOBBS IS PRESENTING. 
          CHRISTY. 
          ALL RIGHT, GOOD AFTERNOON BOARD MEMBERS. 
          SO I WANNA TAKE YOU THROUGH A COUPLE OF VOTING ITEMS THAT WE HAVE FROM THE PLANNING PERSPECTIVE. 
          THE FIRST IS THIS, UM, RPG PROJECT FROM ENCORE. 
          IT IS A $2.86 BILLION 
          [00:10:01]
PROJECT. 
          SO I WANNA SPEND A LITTLE BIT OF TIME EXPLAINING WHAT THE PROJECT IS, HOW IT EVOLVED OVER TIME, AND HOW WE GOT TO THE, THE ERCOT INDEPENDENT RECOMMENDATION THAT IS BEFORE YOU TODAY. 
          SO THIS WAS A PROJECT THAT ENCORE SUBMITTED BACK TO US IN FEBRUARY OF 2025. 
          WE HAVE SPENT SOME TIME WITH ENCORE AND THE NEIGHBORING TSPS AS, UM, JUST LIKE IN IN MANY OTHER PARTS OF THE STATE, A LOT OF RAPID LOAD GROWTH. 
          SO IT TOOK SOME EXTRA TIME TO WORK THROUGH THIS PROJECT, UM, TO MAKE SURE THAT WE CAME UP WITH THE BEST SOLUTION. 
          THIS PROJECT ORIGINALLY STARTED BECAUSE OF THE ADDITION OF, UH, OVER FOUR GIGAWATTS OF LARGE OR OF LOAD IN THE SOUTHERN DFW AREA. 
          SO AS YOU CAN IMAGINE, BY ADDING THAT MUCH LOAD TO THE SYSTEM, UH, A LOT OF UPGRADES, UH, WERE REQUIRED. 
          THEY'RE ALSO SEEING A LOT OF AGING INFRASTRUCTURE IN THE SOUTHERN DFW AREA. 
          UM, I THINK ENCORE, THEY COULD, THEY COMMENT IF YOU WANTED TO GO IN INTO FURTHER, UH, BUT WHEN THEY REVIEWED SOME OF THE SPECIFICATIONS AT T IT'S SOME OF THEIR AGING INFRASTRUCTURE THAT'S OVER 50 YEARS OLD. 
          SO IT'S, IT'S TIME FOR IT TO BE REPLACED. 
          WE DID OUR INDEPENDENT REVIEW AND THE FIRST OPTION THAT WE LOOKED AT, UM, AS WE TOOK IN ALSO LOOKING AT SOME OF THE NEIGHBORING UTILITY LOADS IN THE REGION, UH, WE STILL SAW A LARGE NUMBER OF THERMAL, UH, VIOLATIONS AND VOLTAGE VIOLATIONS. 
          UM, THAT REQUIRED US TO CONTINUE LOOKING AT ADDITIONAL OPTIONS. 
          AND OUR OVERALL RECOMMENDATION WAS TO GO WITH OPTION THREE TO BE ABLE TO RELIABLY MEET THE NEEDS IN THAT AREA. 
          NOW, HOW DID WE GET TO THE COST ESTIMATE? THE ORIGINAL ESTIMATE WAS FROM ENCORE WAS JUST OVER $1 BILLION. 
          UM, BUT AS I NOTED WITH THAT MUCH GROWTH, AND AS YOU START LOOKING AT THE EDGES OF, OF THE DFW AREA, UM, BRAZO ALSO HAD LOW THAT WAS COMING INTO THE AREA. 
          AND SO THERE WAS A, A LARGER NUMBER OF UPGRADES. 
          NOW, WE HAD ALREADY BEEN STUDYING, UH, IN THE PREVIOUS 2024 AND 2025 RTPS. 
          THIS AREA, AS THE LOAD GROWTH WAS GROWING, HAD RECOMMENDED PROJECTS THAT WERE ALSO TRAVELING IN PARALLEL THROUGH THE, THE REGIONAL PLANNING GROUP PROCESS. 
          UM, THE ENCORE AND LONE STAR ANALYSIS AREA RELIABILITY PROJECT, AS WELL AS ONE, UM, TWO, ACTUALLY TWO MORE ENCORE SET ONE AND SET TWO. 
          AND THOSE HAD BEEN PROGRESSING, AND WE REALIZED WE NEEDED SOME OF THOSE PROJECTS TO FURTHER, UH, SOLVE THE VIOLATIONS THAT WE WERE SEEING. 
          AND SO SINCE OUR REVIEW ON THOSE WAS COMPLETE, WE COMBINED THEM ALL INTO THIS ONE PROJECT TO BRING FORWARD. 
          AND THAT'S HOW WE ENDED UP, UM, AT THAT LEVEL OF 2.8, UH, $6 BILLION. 
          CHRISTIE? YES, MA'AM. 
          SO I THINK, I THINK YOU MAY HAVE JUST ANSWERED THE QUESTION, BUT I JUST WANNA MAKE SURE I'M CLEAR ON IT. 
          I, I HAD A BIG QUESTION WHEN I WAS LOOKING AT THIS, HOW WE WENT THROUGH ENCORE'S PROPOSAL OF 1.2 BILLION TO A PROJECT THAT'S 2.8 BILLION. 
          AND ARE YOU, WHAT YOU'RE SAYING, ARE YOU SAYING THAT YOU TOOK SOME OTHER PROJECTS THAT WERE ANALYZED AND PULLED THEM FORWARD? SO IT'S REALLY THE COMBINATION OF VARIOUS, UH, ENCORE PROPOSALS? YES. 
          AND, AND, UM, LONE STAR AS WELL. 
          SO WE COMBINE THOSE TOGETHER BECAUSE OF HOW ALL OF THE, THE INTERCONNECTION IN THAT AREA, THOSE WERE NEEDED. 
          SO WHEN WE WENT THROUGH, WE, WE LOOKED AT THREE ALTERNATIVES. 
          WHEN WE WENT THROUGH THE FIRST ALTERNATIVE, WE WERE STILL SEEING VIOLATIONS ON THE SYSTEM THAT WEREN'T SOLVING THE RELIABILITY NEEDS IN THE AREA. 
          SO WE HAD TO START LOOKING FOR, UM, ADDITIONAL UPGRADES OR ADDITIONAL LINES THAT WERE NEEDED TO SOLVE THOSE VIOLATIONS. 
          THOSE WERE PROJECTS, THESE OTHER PROJECTS THAT WE LISTED, WE HAD ALREADY RECOMMENDED, UH, THOSE SOLUTIONS. 
          AND SO WE COMBINED IT TOGETHER TO HAVE SOMETHING THAT WOULD MEET ALL OF THE ERCOT PLANNING GUIDE AND NERC PLANNING CRITERIA. 
          SO WHEN YOU DID THAT, SO WHEN YOU SAY YOU HAD THE VIOLATIONS INITIALLY, THAT WAS OPTION ONE UNDER THE ORIGINAL ESTIMATE, CORRECT? IS THAT, AND THOSE THAT THESE OTHERS HAD BEEN ALREADY COMPLETED, AND THEN YOU DID A COMBINED STUDY, OR THEY EVOLVED OVER TIME? THEY EVOLVED OVER TIME. 
          SO THERE WERE THINGS THAT WE SAW WHEN WE, WE DID OUR 2024 REGIONAL TRANSMISSION PLAN LOOKING AT THE ROADMAP FOR THE NEEDS FOR THE GROWTH IN THE AREA. 
          THESE WERE PROJECTS THAT WE HAD PUT ON THAT ROADMAP THAT WERE GONNA BE NEEDED IF THIS LOAN MATERIALIZED. 
          AND SO WE ALREADY, UM, ENCORE HAD THESE SEPARATE PROJECTS THAT WERE RUNNING IN PARALLEL THROUGH THE, THE PROCESS. 
          AND SO WE WERE ABLE TO UTILIZE THOSE, COMBINE 'EM ALL TOGETHER TO, IT TOOK ALL OF THEM TOGETHER TO BE ABLE TO MEET THE RELIABILITY NEED. 
          AND CHRISTIE, WHEN WAS THE ORIGINAL PROJECT LOOKED AT THE 1.2, WHAT'S, WHAT WAS THE TIMING? UM, THEY ORIGINALLY SUBMITTED THAT IN FEBRUARY OF 2025. 
          UM, BUT BECAUSE OF THE SIZE OF THE PROJECT, IT TOOK A LOT OF BACK AND FORTH BETWEEN ERCOT AND THE, UM, ENCORE ENGINEERS WORKING THROUGH THE PROCESS TO GET THE INFORMATION TO DO THE STUDIES, UH, TO GO THROUGH THE RPG COMMENT PROCESS. 
          AND WHEN THEY DO THAT, 
          [00:15:01]
I'M ASSUMING, DO THEY ALSO LOOK AT RECONDUCTORING OPTIONS AS THEY, AS YOU DO THESE STUDIES? IS THAT PART OF THE PROCESS AND IS THAT THE TSP THAT PROVIDES THAT? RIGHT, THAT'S A QUESTION THAT ALWAYS COMES UP. 
          HOW CAN WE GET THE MOST OUT OF OUR SYSTEM? AND SO, UM, I BELIEVE A SIMILAR COMMENT WAS ASKED OF ENCORE AT TAC, AND WHAT THEY REPORTED IS THAT BECAUSE OF THE AGING INFRASTRUCTURE, AGAIN, THE POLES WERE GONNA HAVE TO BE REPLACED. 
          THEY COULDN'T, YOU KNOW, SUPPORT, UH, THE CONDUCTORS. 
          UM, SO IT IS LOOKED AT, IN FACT, THERE'LL BE A REVISION REQUEST. 
          I EXPECT THAT IT'LL BE COMING THROUGH, UM, THE STAKEHOLDER PROCESS. 
          IT'S A, I BELIEVE A PLANNING GUIDE REVISION, SORRY, I DON'T REMEMBER THE NUMBER. 
          UM, BUT ONE OF THE CONSUMER GROUPS WAS PUTTING SOME, UM, INFORMA OR BOUNDARIES ON WHEN WE WILL LOOK AT DIFFERENT, UH, TECHNOLOGIES SO THAT WE'RE CONTINUALLY LOOKING AT OTHER WAYS, NOT JUST, YOU KNOW, BUILDING A NEW LINE, NEW ONES. 
          SO, CHRISTIE, ONE MORE. 
          THANK YOU. 
          UM, I, I UNDERSTAND THERE'S A RELATIVELY LARGE VOLUME OF LOADS THAT WERE ALSO INCLUDED IN THE STUDY TO JUSTIFY SOME OF THE TRANSMISSION. 
          CAN YOU COMMENT ON THE STATUS OF WHERE SOME OF THOSE STAND? ABSOLUTELY. 
          SO WHEN ENCORE INITIALLY SUBMITTED THIS, UM, BACK IN FEBRUARY, 2025, THEY WERE SUBMITTED UNDER THE RULES AT THAT TIME FOR THE OFFICER ATTESTATION OF THE LARGE LOADS. 
          UM, ENCORE DID COMMENT, AND IF, YOU KNOW, I'M GLAD TO TO CALL ON THEM UP AS WELL, BUT WHAT I CAN CONVEY TO YOU THAT THEY HAVE REPORTED SINCE WE'VE GONE THROUGH, IT'S BEEN A YEAR IN THAT PROCESS, ALL OF THOSE LOADS THAT WERE ORIGINALLY PART OF OFFICER S TEST STATIONS HAVE SIGNED AGREEMENTS AND ARE CONTRACTED LOADS THAT ARE MOVING FORWARD AND PUT UP SECURITY. 
          SO THOSE LOADS HAVE MATERIALIZED. 
          UM, IF YOU LISTENED INTO THE TAC MEETING, THERE WAS ALSO A LOT OF THE DATA CENTERS THAT ARE SOME OF THOSE LARGE LOAD PROJECTS, UM, THAT, YOU KNOW, COMMENTED ABOUT HOW FAR ALONG THEY ARE IN THEIR CONSTRUCTION PROCESS, UM, ABOUT THE MATERIALITY OF THEIR LOAD. 
          ALL RIGHT. 
          UM, SO AGAIN, OUR RECOMMENDATION IS TO MEET, UH, SEVERAL OF THE RELIABILITY CRITERIA, NOT ONLY FOR THE NERC UH, PLANNING REQUIREMENTS, BUT ALSO THE ERCOT PLANNING GUIDES. 
          UM, AGAIN, UH, AS A LARGE PROJECT, IT IS BUILDING A NUMBER OF SUBSTATIONS, NEW REACTIVE DEVICES, UH, REBUILDS OF EXISTING SUBSTATIONS. 
          THERE WILL BE SOME, UH, NEW RIGHT OF WAY THAT'S REQUIRED AS WELL FOR SOME OF THE, THE NEW LINES THAT WILL BE REQUIRED TO MEET THE RELIABILITY NEEDS. 
          SO WITH THAT, UM, I'LL SEE IF YOU HAVE ANY OTHER QUESTIONS. 
          BUT THIS IS A PROJECT THAT'S BEEN, UH, ENDORSED BY TAC I BELIEVE THERE WERE TWO ABSTENTIONS FROM THE COOPERATIVE SEGMENT AT THE TAC MEETING. 
          UM, BUT ARCOT IS BRINGING THIS FORWARD FOR YOUR ENDORSEMENT FOR THE RELIABILITY NEED IN THE REGION WITH THE ADDITION OF THIS LOAD AND THE AGING INFRASTRUCTURE IN THE AREA. 
          ANY QUESTIONS OR COMMENTS FOR CHRISTIE? OKAY. 
          CHRISTIE, DO YOU HAVE ANYTHING ELSE BEFORE WE VOTE? NO. 
          OKAY. 
          UH, SINCE THERE'S NO FURTHER DISCUSSION, I'LL ENTERTAIN A MOTION TO ENDORSE THE NEED FOR THE TIER ONE ENCORE, SOUTHERN DFW LOAD, INTERCONNECTION AND GENERAL GRID STRENGTHENING REGIONAL PLANNING GROUP PROJECT. 
          OPTION THREE IS PRESENTED, MOVE TO APPROVE SECOND. 
          OKAY, IT WAS, UH, BILL AND CHRIS. 
          YEP. 
          OKAY. 
          ALL IN FAVOR? AYE. 
          ANY OPPOSED? ANY ABSTENTIONS? OKAY. 
          THAT PROJECT IS APPROVED. 
          NEXT IS AGENDA ITEM 
          [5.2 25RPG016 STEC Nueces Green Ammonia Load Interconnection Project]
5.1, THE 25 RPG ZERO 16 S OR SOUTH TEXAS NEW AIS GREEN AMMONIA LOAD CON INTERCONNECTION PROJECT. 
          CHRISTIE, YOU'RE GONNA PRESENT THIS ONE AS WELL. 
          ALL RIGHT. 
          SO THIS ONE IS $161 MILLION. 
          IT WAS A PROJECT THAT WAS BROUGHT FORWARD, UM, FROM STACK FOR A LARGE LOAD, UH, I BELIEVE 1,050 MEGAWATT, UM, AMMONIA PLANT IN THE, UM, OASIS COUNTY AREA. 
          EXCUSE ME, IT WAS 1150. 
          UM, THIS ONE IS 161 MILLION. 
          AND WE'LL TALK ABOUT, UH, ONE OF YOUR VOTING ITEMS HERE IN A COUPLE OF ITEMS FORWARD. 
          BUT THE REASON THIS IS COMING BEFORE YOU, EVEN THOUGH WE'VE UPPED THE LEVEL OF PROJECTS THAT COME TO THE BOARD TO BE AT THE 200 MILLION THRESHOLD, THE TIMING OF WHEN THIS ONE WAS SUBMITTED, IT WAS STILL UNDER THE OLD RULES. 
          SO THAT'S WHY THIS ONE IS IN FRONT OF YOU. 
          I EXPECT IT'LL BE THE LAST ONE THAT YOU WOULD SEE UNDER THE 200 MILLION MARK GOING FORWARD UNDER THE NEW CRITERIA. 
          SO THEY SUBMITTED THIS PROJECT BACK IN JUNE, UM, TO ADDRESS THE RELIABILITY ISSUES THAT WOULD BE CREATED BY THE ADDITION OF THIS LARGE LOAD IN THE AREA. 
          THERE WAS NOT ONLY THERMAL OVERLOADS, BUT UNSOLVED POWER FLOWS. 
          AND SO WE REVIEWED, UM, THE RECOMMENDATIONS AND BROUGHT FORWARD THIS OPTION FOR TAC FOR ENDORSEMENT, WHICH WAS UNANIMOUSLY ENDORSED 
          [00:20:01]
AT THE MARCH TAC MEETING. 
          AGAIN, MEETING BOTH OUR NERC AND OUR ERCOT PLANNING GUIDE CRITERIA, UH, WILL REQUIRE AN ADDITIONAL NEW 3 45 SUBSTATION AT THE POINT OF INTERCONNECTION, AS WELL AS A CCN FOR JUST OVER 10 MILES. 
          A NEW RIGHT OF WAY TO SUPPORT THE PROJECT. 
          SO THIS ONE'S PRETTY STRAIGHTFORWARD. 
          UM, I WOULD HIGHLIGHT, UM, IF YOU RECALL, IF YOU'RE THINKING BACK, WE ALSO HAD A PROJECT AT THE FEBRUARY BOARD THAT WAS FOR ALSO FOR, UM, AN AMMONIA PLANT, BUT IT WAS A 300 MEGAWATT LOAD. 
          UM, AND IT'S ACTUALLY IN A DIFFERENT COUNTY. 
          SO IF IT'S SOUNDING FAMILIAR, UM, I HAD TO TO GO BACK AND DOUBLE CHECK, UH, TO MAKE SURE AS WELL. 
          SO THAT'S WHY IT'S SOUNDING FAMILIAR. 
          JULIE, CHRISTIE, UH, AND FOR THIS PROJECT, CAN YOU JUST GIVE US AN IDEA OF, UM, YOU KNOW, WE VOTE TODAY. 
          WHAT'S A EVENTUAL TIMELINE TO SEE ELECTRIFICATION? SO LET ME LOOK AT THAT REPORT SO THAT IT'S GOT, UH, THAT WHEN THEY SUBMITTED IT AND IT'S EXPECTED IN SERVICE DATE MAY OF 2031. 
          SO MAYBE A QUESTION THAT'S COMING UP IS, WHAT IF THAT LARGE LOAD DOESN'T MATERIALIZE? AND I THINK WE'VE, UM, HAD THOSE CONVERSATIONS BEFORE. 
          WHEN ERCOT GETS THE PROJECT, IT'S BASED OFF OF THE RULES FOR LOAD SUBMISSIONS AT THAT TIME. 
          WE LOOK AT THE RELIABILITY NEED FOR THE PROJECT, IF THAT LOAD DOES MATERIALIZE. 
          UM, BUT IT'LL BE INCUMBENT UPON, UM, THE UTILITY AS THEY GO THROUGH THE CCN PROCESS AND ADJUSTING THEIR FUTURE RATES, UM, TO MAKE SURE THAT THAT LOAD IS MATERIAL. 
          AND MOVING THROUGH CHRISTY, JUST FOLLOW UP ON THAT. 
          UH, JUST SO WE UNDERSTAND THE TIMEFRAME. 
          BOTH THESE PROJECTS NEED CERTIFICATES. 
          WHAT DOES TYPICAL, HOW LONG OF A DELAY IS THERE BETWEEN THE TIME THE BOARD APPROVES BEFORE THEY FILE THE PUC? I THINK IT VARIES PROBABLY BY UTILITY AND BASED OFF OF THE NEED AND THE, THE, UM, THE NEED OF THE PROJECT AND THE TIMELINES. 
          UM, LIKE FOR EXAMPLE, ON SOME OF THE, THE 7 65 INFRASTRUCTURE, WHAT WE SAW WAS THAT THE UTILITIES, THEY GO THROUGH THERE, THERE'S A SET PROCESS, AND THESE ARE COMMISSION RULES. 
          SO ANY OF THE COMMISSIONERS FEEL FREE TO CORRECT ME IF I'M WRONG, BUT THERE ARE TIMELINES WHERE THEY HAVE TO GIVE PUBLIC NOTICE. 
          THEY GO THROUGH A PROCESS THAT'S OUTLINED AT THE COMMISSION, UM, TO HAVE, ALLOW TIME FOR PUBLIC COMMENT, UM, AND REVIEW, AND THEN THEY FILE THOSE. 
          UM, SO, SO IT COULD BE ANYWHERE FROM, SAY, SIX MONTHS TO A YEAR BEFORE IT WOULD ACTUALLY HIT OVER IN THE COMMISSION PROCESS. 
          ANY OTHER QUESTIONS, CHRIS? ANY OTHER COMMENTS BEFORE WE VOTE? IF THERE'S NO FURTHER DISCUSSION, I'LL ENTERTAIN A MOTION TO ENDORSE THE TIER ONE STEC OASIS GREEN AMMONIA LOAD INTERCONNECTION INTERCONNECTION REGIONAL PLANNING GROUP PROJECT. 
          OPTION THREE IS PRESENTED. 
          I MOVE TO, OKAY, KATHLEEN AND SECOND FROM JULIE. 
          ALL IN FAVOR? AYE. 
          ANY OPPOSED? ANY ABSTENTIONS? THAT PROJECT IS APPROVED. 
          THANK YOU, CHRISTIE. 
          UH, NEXT IS 
          [6. Regional Planning Group Charter (RPG)  Charter Revision ]
AGENDA ITEM SIX, THE REGIONAL PLANNING GROUP CHARTER REVISION. 
          CHRISTIE, I THINK YOU'RE GONNA DO THIS ONE TOO. 
          I AM. 
          AND THEN I'VE GOT ONE MORE AFTER IT. 
          ALL RIGHT. 
          SO THIS ONE IS, UH, THE, THE REGIONAL PLANNING GROUP CHARTER IS REQUIRED FOR BOARD APPROVAL FOR ANY CHANGES TO THE CHARTER BECAUSE IT IS A, A SEPARATE STAKEHOLDER GROUP. 
          UH, IT'S NOT DIRECTLY REPORTING UP TO TAC. 
          IF YOU RECALL NPR 1274, WHICH YOU, UH, RECOMMENDED APPROVAL OF AT THE DECEMBER BOARD, WENT ON FOR UM, CONSIDERATION AT THE COMMISSION AND WAS APPROVED IN JANUARY, WHICH UPDATED THE, UM, LIMITS FOR AS WE LOOK, WHETHER OR NOT WE BRING THAT FORWARD FOR BOARD ENDORSEMENT. 
          UM, IT'S LOOKING AT THE COST OF THE PROJECT. 
          AND SO THAT NUMBER WENT UP FROM $100 MILLION TO $200 MILLION. 
          SO GOING FORWARD, ANY PROJECTS OVER 200 MILLION WILL BE BRINGING TO YOU. 
          AND SO, UM, THIS IS SIMPLY TO MAKE THE CHARTER IN LINE WITH THE PROTOCOLS THAT WERE ALREADY APPROVED AND ARE NOW IN EFFECT. 
          SO WE WOULD BE LOOKING FOR YOUR APPROVAL OF THIS REVISED CHARTER TO MATCH THE CURRENT RULES THAT ARE IN PLACE. 
          ANY QUESTIONS FOR CHRISTIE ON THE PROPOSED AMENDMENTS TO THE CHART TO THE RPG PROCESS? OKAY. 
          ALRIGHT, IF THERE IS NO FURTHER DISCUSSION, I'LL ENTERTAIN A MOTION TO APPROVE THE REGIONAL PLANNING GROUP CHARTER REVISION AS PRESENTED TO BE EFFECTIVE. 
          APRIL 21ST, 2026. 
          SO MOVED. 
          WAS THAT CHRIS? YES. 
          OKAY. 
          AND SECOND 
          [00:25:02]
FROM KATHLEEN. 
          ALRIGHT, ALL IN FAVOR? AYE. 
          AYE. 
          ANY OPPOSED? ANY ABSTENTIONS? OKAY. 
          THE CHARTER REVISION IS APPROVED. 
          NEXT 
          [7. System Planning and Weatherization  Update ]
IS AGENDA ITEM SEVEN, THE SYSTEM PLANNING AND WEATHERIZATION UPDATE, WHICH IS ALSO PRESENTED BY CHRISTIE HOBBS. 
          CHRISTIE. 
          ALL RIGHT. 
          AND SO JUST WANTED TO GIVE YOU AN UPDATE ON SOME OF THE THINGS THAT ARE GOING ON IN THE RESOURCE ADEQUACY AS WELL AS THE TRANSMISSION PLANNING EFFORTS. 
          UH, AT ERCOT EACH MONTH WE PUT OUT OUR MONTHLY OUTLOOK ON RESOURCE ADEQUACY. 
          JUST KIND OF A, A SUMMARY AS WE LOOK BACK ABOUT THE REPORTS THAT WE'VE PUT OUT FOR THE SPRING SEASONS, WE CONTINUE TO SEE A DECLINING, UH, RISK OF AS WHEN WE RUN OUR PROBABILISTIC ANALYSIS FOR GOING INTO EMERGENCY CONDITIONS. 
          UM, AS WE LOOK OUT, THE CURRENT ONE THAT HAS BEEN PUBLISHED IS JUNE. 
          UH, AS WE START TO SEE THE THERMAL GENERATION UNITS COMING BACK FROM OUTAGE SEASON, UM, WE, YOU KNOW, SEE THOSE RISKS DECLINING. 
          UH, WE DID PUT OUT FOR OUR, UM, ONE OF OUR NERC REQUIREMENTS, WE DO A, AN AUGUST A LOOK AHEAD. 
          UM, SO THAT SOME OF THAT INFORMATION HAS ALREADY BEEN RUN. 
          WE'RE SHOWING AGAIN, YOU KNOW, MINIMAL RISK AS WE GO LATER INTO THE SUMMER, BUT THE OFFICIAL ONE WON'T BE PUT OUT, UM, FOR ANOTHER COUPLE MONTHS AND WE'LL HAVE UPDATED LOAD FORECAST AS WELL AS GENERATION INFORMATION. 
          SO THOSE NUMBERS MAY, MAY TWEAK A LITTLE BIT. 
          A LOT OF WORK HAS BEEN GOING ON TO GET PREPARED FOR DOING THIS YEAR'S RELIABILITY ASSESSMENT. 
          SO JUST A REMINDER THAT'S LOOKING AT A BASELINE OF 2026, BOTH LOAD AND GENERATION ON THE SYSTEM. 
          AND THEN COMPARING TO THE LOAD FORECAST FOR 2029, LOOKING OUT THREE YEARS, THE GENERATION THAT'S ALSO EXPECTED TO BE ON THE SYSTEM TO LOOK TO SEE HOW DO WE MEET AGAINST THE CRITERIA THAT THE COMMISSION APPROVED, UM, UNDER THEIR RULES FOR LOOKING AT BOTH FREQUENCY OF AN EVENT MAGNITUDE AND DURATION. 
          WE HAD FILED A SET OF ASSUMPTIONS THAT WE WOULD BE USING IN OUR MODELING, UM, THAT WENT THROUGH A PERIOD OF, UH, STAKEHOLDER COMMENT OVER AT THE PUBLIC UTILITY COMMISSION. 
          AND THE COMMISSION HAD THEIR FIRST SET OF DISCUSSIONS ON THAT AT THEIR OPEN MEETING LAST WEEK. 
          UM, AND ARE EXPECTED TO COME BACK, UM, AT THE MAY MEETING TO FINALIZE THE ASSUMPTIONS THAT WE SHOULD BE PUTTING INTO OUR MODELS. 
          NOW, IF YOU LISTENED INTO THE OPEN MEETING, UH, WE ALSO TALKED ABOUT THE LOAD FORECAST AND THE COMMISSION WOULD LIKE FURTHER DISCUSSION ON THAT. 
          UM, THAT'S A KEY INPUT INTO THIS RELIABILITY ASSESSMENT AND THE RESULTS THAT WE'LL SEE. 
          I WOULD EXPECT ANY, UM, TIME THAT IT TAKES TO HAVE A DAY FOR DAY DELAY IN OUR SCHEDULE. 
          UM, BECAUSE ONCE WE GET THE LOAD FORECAST INFORMATION, THEN WE CAN PUT IT INTO THE MODELS AND START RUNNING THE SIMULATION. 
          SO, UM, AS, AS THE CURRENT TIMELINE WAS, IT HAD US COMPLETING OUR ANALYSIS BY THE END OF AUGUST AND, AND FILING THAT WITH THE COMMISSION, THEN TO GO THROUGH A SERIES OF WORKSHOPS AND FURTHER DISCUSSIONS. 
          SO I WOULD SAY THAT'S KIND OF TO BE DETERMINED ON THE TIMELINE. 
          I WOULD EXPECT AT LEAST, AT LEAST 30 DAYS, BUT MORE LIKELY, AT LEAST 60 DAYS BEFORE THAT'S PROBABLY FINALIZED. 
          HEY, CHRISTIE, ON THAT LOAD FORECAST, I MEAN, WITH WHAT WAS RECENTLY PUBLISHED, THERE'S A DRAMATIC INCREASE IN LOAD. 
          CAN YOU TALK A LITTLE, HOW DO WE GET THAT TO SOMETHING THAT MAKES SENSE IN, IN TERMS OF A RELIABILITY ASSESSMENT? I THINK WE WILL BE WORKING WITH LATER THIS WEEK, WE'LL BE MEETING WITH, UH, COMMISSION STAFF AS WELL AS THE UTILITIES THAT SUBMITTED THE INFORMATION TO LOOK TO SEE WHAT OPTIONS. 
          UM, THE, THE LOAD FORECAST THAT WAS DEVELOPED WAS OFF OF A SET OF, UH, CRITERIA FOR INCLUSION THAT I EXPECT WILL BE TIGHTENED DOWN AS THE COMMISSION GOES THROUGH THEIR STANDARDIZATION RULES LATER THIS YEAR. 
          AND SO LOOKING TO SEE WHAT INFORMATION THE UTILITIES HAVE, UH, MAYBE ABOUT THE MATURITY OF THOSE LOADS AND HOW THEY SHOULD BE INCLUDED GOING FORWARD, AND WHETHER THEY'RE LIKELY TO MEET THE ADDITIONAL CRITERIA THAT WE PUT ON THEM IN THE FUTURE. 
          YEAH, IT'S GOTTA BE A SUBSTANTIAL HAIRCUT TO COME UP WITH SOMETHING THAT'S REALISTIC. 
          I MEAN, WHEN YOU LOOK AT IT, YEAH, IT WILL TAKE SOME WORK. 
          SO LOOKING FORWARD TO WORKING WITH, UM, TAKING THE COMMISSION'S DIRECTION AND WORKING WITH UTILITIES TO GO THROUGH THE PROCESS THAT WAS OUTLINED IN THEIR RULES ON HOW WE WORK TOGETHER, UM, TO MAKE ANY ADJUSTMENTS TO THAT NUMBER. 
          AND THEN ONCE YOU DOES THAT, THEN SET THE LOAD FORECAST FOR FUTURE STUDIES FOR BATCH EVALUATION, THAT TYPE OF STUFF. 
          I MEAN, IS IT THE LOAD FORECAST GETS USED IN A NUMBER OF, UH, PLACES AND THAT'S WHY THERE WAS SUCH FOCUS ON THE COMMISSION AND US WORKING WITH THEM. 
          UM, NOT US, JUST UNILATERALLY MAKING CHANGES. 
          UM, IT GETS USED IN OUR TRANSMISSION PLANS. 
          IT GETS USED IN OUR RESOURCE 
          [00:30:01]
ADEQUACY REPORT. 
          SO, UH, THE RELIABILITY ASSESSMENT, THE, UH, CAPACITY DEMAND AND RESERVE REPORT THAT WAS SET TO COME OUT, UM, IN MAY, THE THIRD WEEK IN MAY IS WHAT OUR PROTOCOL REQUIREMENTS ARE. 
          SO I EXPECT WE'LL BE PUSHING OUT A MARKET NOTICE THAT THAT WILL BE DELAYED AS WELL UNTIL WE GET AN UPDATED, UH, FORECAST TO USE FOR THAT. 
          SEEMS LIKE A LOT, A LOT OF WORK TO DO THERE. 
          ONE OTHER THING, WHEN YOU'RE LOOKING AT COST OF NEW ENTRY, SO IT SAYS REFLECT RECENT GAS TURBINE COSTS, BUT WE KNOW GAS TURBINES PROBABLY AREN'T AVAILABLE FOR FIVE YEARS AND THIS IS A 29 FORECAST. 
          SO HOW, HOW DO WHAT, JUST HELP ME UNDERSTAND THAT. 
          SO SOME OF THE DISCUSSION THAT WAS HAD, UH, WITH THE, THE COMMISSION AND THE DIRECTION, UM, THAT WILL LIKELY BE GOING IS, YOU KNOW, WE WANNA LOOK AT WHAT TYPE OF TECHNOLOGY DO WE USE FOR SETTING UP THE MARKET STRUCTURE AND SENDING THE RIGHT MARKET SIGNALS FOR THE FUTURE. 
          AND JUST BECAUSE WE MIGHT NOT BE ABLE TO GET THEM FOR SAY, 2029, BUT THAT IS THE DIRECTION THAT YOU, THE CHARACTERISTICS THAT YOU'RE LOOKING FOR IN USING THAT TECHNOLOGY. 
          UM, AND SO IT MAY BE, YOU KNOW, 20 31, 20 32 IS WHAT SOME OF THE INFORMATION THAT WE'RE STARTING TO GET BACK ON, UM, THE SLOTS THAT ARE AVAILABLE FOR TURBINES. 
          UM, YOU KNOW, THEY ARE PROBABLY A FUNGIBLE, UM, SLOTS, UH, AS WELL AS, SO IF SOMEONE HAS THEM, THAT'S WHY YOU DON'T WANNA SET THAT NUMBER TODAY BECAUSE IT MAY BE HIGHER THAN IT WOULD, IT'LL BE IN THE FUTURE FOR THE LONGER TERM. 
          OKAY, THANK YOU. 
          JULIE, DID YOU HAVE A QUESTION? WELL, I HAD A QUESTION. 
          WHEN THE RELIABILITY, UH, STUDY WAS FIRST CONTEMPLATED, MY UNDERSTANDING WAS IT WAS A SNAPSHOT AND IT WAS ONE SET OF NUMBERS, BUT IT DIDN'T ANTICIPATE THE HYPERGROWTH WE'RE SEEING NOW. 
          SO IT IS THERE SOME THOUGHT ABOUT MULTIPLE SCENARIOS THAT THE RELIABILITY STUDY COULD LOOK AT LOW GROWTH, MEDIUM GROWTH, HIGH GROWTH, ET CETERA. 
          SO THAT IT'S, LOOK, IT, IT ANTICIPATES DIFFERENT AMOUNTS OF GROWTH THAT ARE POSSIBLE. 
          THAT IS ONE OF THE THINGS, UM, AS WE LAID OUT OUR ASSUMPTIONS, UM, THERE'S, YOU KNOW, MANY DIFFERENT INPUTS THAT GO IN AND WHERE IT SEEMED APPROPRIATE, WE WOULD MAKE RECOMMENDATIONS FOR DOING SENSITIVITY ANALYSIS SO THAT WE CAN GIVE, UM, A RANGE, UH, YOU KNOW, IF, IF CERTAIN CONDITIONS MATERIALIZE, THIS IS WHAT YOU WOULD EXPECT VERSUS THE ALTERNATIVES. 
          SO IT IS A PART OF OUR RECOMMENDATIONS. 
          AND WHEN WE COME BACK IN JUNE, WILL WE BE ABLE TO HAVE A SOLID TIMELINE FOR THE REST OF THE YEAR, DO YOU THINK? I WOULD EXPECT WE WOULD. 
          UM, MY UNDERSTANDING FROM THE DISCUSSIONS AT THE OPEN MEETING FROM COMMISSION STAFF IS THEY'RE GONNA MAKE RECOMMENDATIONS ON ADJUSTMENTS TO THE TIMELINES THAT'LL BE NEEDED. 
          UM, AND THAT SHOULD BE DISCUSSED AT THE MAY 7TH OPEN MEETING. 
          SO WE SHOULD HAVE GOOD INSIGHT. 
          WE SHOULD ALSO KNOW WHERE WE'RE AT FROM A LOAD FORECAST PERSPECTIVE. 
          SO WE SHOULD BE ABLE TO GIVE YOU THE DEFINITIVE TIMELINE. 
          I GUESS WE'LL ALL BE LISTENING TO THE MAY 7TH PUC OPEN MEETING. 
          ALL RIGHT, WANTED TO GIVE YOU SOME STATS AND WE TALK A LOT ABOUT THE TRANSMISSION PROJECTS, BUT WHEN YOU STEP BACK AND LOOK, UM, CHRIS, I THINK PEGGY'S GOT A QUESTION GOING BACK TO THE PRIOR TIME, JUST BECAUSE SO MUCH TRIGGERS OFF THE RELIABILITY ASSESSMENT. 
          I WANNA MAKE SURE I UNDERSTAND. 
          SO THE AUGUST 13TH WAS BASED ON THE LOAD FORECAST BEING ISSUED IN FINAL LAST WEEK. 
          IS THAT RIGHT? SO EVERY DAY FROM LAST WEEK WILL BE EXTENDING, I WOULD SAY EVERY, WE BASED IT OFF OF EXPECTATION THAT WE HAD APPROVAL FROM THE COMMISSION OF ALL THE ASSUMPTIONS THAT WE HAVE TO PUT INTO OUR MODEL. 
          UM, AND WE PREPOSITION INFORMATION TO BE READY TO GO WHEN THEY MAKE THEIR DECISIONS. 
          BUT THERE'S SOME THINGS THAT WE CAN'T DO UNTIL DECISIONS ARE MADE, FOR EXAMPLE, LIKE THE LOAD FORECAST. 
          SO I WOULD SAY IT'S REALLY FROM THAT MAY 7TH TIMELINE IS WHEN WE WERE STARTING, UM, PLANNING OUR WORK, YOU KNOW, KIND OF WEEK BY WEEK ON EVERYTHING THAT HAS TO HAPPEN TO GET THE RESULTS. 
          UM, SO FROM THAT TIMEFRAME, ANYTHING PAST MAY 7TH SHOULD START BEING, I WOULD EXPECT AT LEAST A, A DAY FOR DAY SLIP. 
          WE MIGHT BE ABLE TO, UM, BRING SOME OTHER THINGS IN, TIGHTEN UP SOME SCHEDULES, BUT I THINK THE COMMISSION WAS VERY, UM, ADAMANT THAT WE HAVE GOOD WORKSHOPS, A LOT OF DISCUSSION, A LOT OF REVIEW WITH THE STAKEHOLDERS BEFORE IT, IT GOES BACK FOR RECOMMENDATIONS IF NEEDED ON ANY MARKET STRUCTURE CHANGES. 
          ALL RIGHT, SO LOOKING AT THE TRANSMISSION PROJECTS, REALLY, I WANTED TO PUT THIS IN HERE BECAUSE WE LOOK AT 'EM ONE BY ONE, BUT WHEN YOU STEP BACK AND LOOK COLLECTIVELY, A LOT OF WORK, GOOD WORK HAS BEEN DONE BY THE TRANSMISSION PLANNING TEAM, UM, ESPECIALLY THIS PAST YEAR. 
          IF YOU LOOK AT THE INDEPENDENT REVIEWS THAT WE PUT OUT JUST FROM THE TIER ONE AND TIER TWO PERSPECTIVE, WE DOUBLED, UM, THE AMOUNT OF PROJECTS THAT WE PUSHED OUT, INDEPENDENT REVIEWS ON REVIEWING OF PROJECTS AND ENDORSEMENT OF NEED FOR RELIABILITY PROJECTS, AS WELL AS, UM, AN ECONOMIC 
          [00:35:01]
PROJECT. 
          AND THERE WAS OVER 42 RPG SUBMISSIONS LAST YEAR. 
          UM, SO A LOT OF WORK WENT IN WITHOUT HAVING TO INCREASE STAFFING. 
          SO, UM, IMPROVING, YOU KNOW, OUR AUTOMATION WHERE POSSIBLE AND WE'LL CONTINUE TO DO THAT. 
          UM, YOU KNOW, A LOT OF TIMES, FOR EXAMPLE, THE, THE PROJECT THAT YOU VOTED ON FIRST, THE SOUTHERN DFW PROJECT, I KNOW THAT ONE WAS ONE OF OUR OUTLIERS. 
          IT DID TAKE MORE TIME FOR REVIEW, BUT IT WAS ALSO A VERY LARGE PROJECT. 
          SO IT REQUIRED ADDITIONAL ANALYSIS AND WORK WITH THE UTILITIES. 
          BUT ON AVERAGE, THE MAJORITY OF OUR PROJECTS GET THROUGH THEIR NORMAL RPG CYCLE IN LESS THAN 150 DAYS. 
          AND SO, UM, IT'S REALLY IMPORTANT FOR RESPONSIBLE REVIEW, BUT ALSO TO KEEP THE PROCESS MOVING FORWARD SO THAT, UM, THE AGING INFRASTRUCTURE AND THE NEEDS OF THE NEWER LARGE LOADS THAT ARE COMING TO THE SYSTEM ARE MET. 
          THIS IS A BREAKDOWN OF RPG PROJECTS BY UTILITY. 
          SO THE, THE GRAPHIC ON THE LEFT ARE PROJECTS THAT WERE SUBMITTED FROM 2023 TO 2025 BY UTILITY. 
          WE ALSO HAD SOME JOINT SUBMISSIONS OF PROJECTS FROM THE UTILITIES TOGETHER. 
          UH, AND THEN THE, THE PROJECTS ON THE RIGHT LOOKS AT THE, THE DOLLAR BREAKOUT. 
          UM, AGAIN, WE, YOU KNOW, SOME OF THE HIGHLIGHTS FROM LAST YEAR. 
          WE SAW THE FIRST 7 65 SUBMISSIONS AND WERE STUDIED AND REVIEWED RIGHT NOW, UM, AS OF THE END OF MARCH. 
          AND THIS NUMBER'S PROBABLY GONE UP 'CAUSE I KNOW THERE'S BEEN SEVERAL OTHER RPG PROJECTS THAT HAVE COME IN SINCE THIS WAS PUT TOGETHER. 
          BUT WE'RE REVIEWING OVER $26 BILLION WORTH OF TRANSMISSION PROJECTS. 
          UM, SO ON ON TRACK FOR CONTINUED REVIEW THIS YEAR. 
          I WOULD EXPECT, UM, MORE PROJECTS THAN WE'VE EVER DONE IN THE PAST. 
          I THINK THAT TAKES ME TO THE END. 
          SO UNLESS YOU WANT ME TO DO DAN'S PRESENTATION FOR HIM TOO, I'LL SEE IF YOU HAVE ANY QUESTIONS. 
          , NOW WE'RE RUNNING SHORT ON TIME TODAY, SO LET'S SKIP THAT PART. 
          ANY QUESTIONS FOR CHRISTIE? ALRIGHT, I DON'T SEE ANY, SO WE'LL MOVE 
          [8. System Operations Update]
TO AGENDA ITEM EIGHT, SYSTEM OPERATIONS UPDATE. 
          DAN WOODFIN IS OUR PRESENTER. 
          I WOULD'VE BEEN HAPPY TO LET HER DO MY PRESENTATION. 
          THAT WOULD'VE BEEN OKAY. 
          OKAY. 
          SO, UM, ONE OF THE FIRST THING I'M GONNA MENTION IS THAT WE'VE SET SOME SEVERAL NEW RENEWABLE PENETRATION RECORDS. 
          SO WHAT THIS MEANS IS KIND OF THE OUTPUT OF THE RENEWABLES THAT WERE BEING USED TO SERVE LOAD DIVIDED BY THE AMOUNT OF LOAD THAT WE HAVE AT THAT INSTANT IN TIME. 
          THAT PERCENTAGE HAS GROWN UP TO NEARLY 87% AT KIND OF THE MAXIMUM LEVEL AT ONE POINT IN TIME. 
          AND ONE OF THE THINGS YOU SHOULD RECOGNIZE IS THAT WITH THE IMPLEMENTATION OF RTC PLUS B, THE BATTERIES, WHEN THEY'RE CHARGING NOW BEFORE RTC PLUS B, THAT WAS COUNTED AS LOAD. 
          SO IT WENT INTO THE DENOMINATOR OF THAT EQUATION. 
          NOW, UH, BECAUSE IT'S, UH, NOT IN THE LOAD ANYMORE, THE DENOMINATOR IS RELATIVELY SMALLER BY THE AMOUNT THAT OF BATTERIES THAT MIGHT BE CHARGED IN WHEN THAT HIGH RENEWABLE OUTPUT IS OCCURRING. 
          SO THAT'S ALLOWED THAT RECORD TO RELATIVELY GO UP MORE, EVEN IF IT HAD BEEN, UH, THE SAME AMOUNT OF OUTPUT. 
          UM, BUT WE, LIKE I SAID, WE, WE'VE NOW UP TO ABOUT 87, UH, PERCENT THAT IS AS THE HIGHEST THAT IT'S BEEN. 
          UM, AND YOU CAN KIND OF SEE FROM THIS SLIDE, THE DOTTED RED LINE SHOWS THE, UM, KIND OF THE POINT IN TIME THAT THAT OCCURRED. 
          AND YOU CAN SEE THAT A LOT OF THAT WAS YOU, YOU'RE A LITTLE PAST THE MORNING PEAK, SO YOU'RE NOT AT THE HIGHEST LOAD OUTPUT ON A RELATIVELY MILD DAY. 
          LOTS OF SOLAR OUTPUT WIND WAS NOT AS HIGH, UM, AT THAT POINT. 
          OKAY. 
          UM, THE NEXT TOPIC I WANNA TALK ABOUT IS THE LARGE LOAD CURTAILMENT, UH, UH, MANAGER PROJECT. 
          UM, YOU KNOW, THAT SENATE BILL SIX HAD SEVERAL, UM, PROVISIONS IN IT FOR BEING ABLE TO CURTAIL, UH, SOME OF THE LARGE LOADS THAT EITHER WERE CO-LOCATED WITH EXISTING GENERATION IN A NET METERING TYPE ARRANGEMENT. 
          ONES THAT HAD MORE THAN 50% BACKUP GENERATION. 
          THERE WAS AN NPRR 1238 THAT WAS PASSED SOME TIME AGO WHERE CERTAIN LARGE LOADS WOULD VOLUNTEER TO BE CURTAILED AHEAD OF TIME, UH, AHEAD OF, UH, AN EMERGENCY IN CERTAIN AREAS. 
          SO THERE, THERE'S SEVERAL THINGS GOING ON THERE. 
          THE GRAPHIC ON THE RIGHT PROBABLY LOOKS FAMILIAR TO YOU 'CAUSE I TALKED ABOUT THIS AT A PREVIOUS, UH, BOARD MEETING. 
          UM, BUT WHAT I WANTED TO LET YOU KNOW TODAY IS THAT, YOU KNOW, THERE'S LOTS OF RULE MAKINGS AT THE COMMISSION AND, AND WILL NEED TO BE SOME PROTOCOL CHANGES GOING ON AT ERCOT. 
          [00:40:01]
BUT WE HAVE GONE AHEAD AND STARTED WORKING ON THE FAIRLY SIGNIFICANT, UM, INTERNAL COMPUTER SYSTEM TYPE PROJECTS TO SET UP A TOOL THAT WILL ALLOW US TO FORECAST WHEN WE NOT MIGHT NEED TO DO THESE CURTAILMENTS AND, UH, ACTUALLY ISSUE THE INSTRUCTIONS TO THE ENTITIES THAT MIGHT BE NEEDING TO, TO CURTAIL THAT LOAD. 
          SO THAT, BECAUSE YOU CAN IMAGINE THAT THAT'S A FAIRLY SIGNIFICANT PROJECT. 
          WE'RE GOING AHEAD AND DEVELOPING THAT TOOL, BUT DOING IT IN SUCH A WAY THAT THERE'S FLEXIBILITY AROUND HOW THOSE RULES ULTIMATELY PLAY OUT. 
          WE'LL STILL BE ABLE TO USE IT. 
          AND, UM, AND ALSO WHO, WHO THE, THE IMPLEMENTA THE SIGNALS ACTUALLY GO TO WHO THE REQUIREMENTS TO, TO INTERRUPT, GO TO. 
          AND SO WE'RE, WE'RE, WE'VE GOT AN NPRR THAT WE'RE, WE WILL BE PUTTING OUT, UH, SHORTLY. 
          UM, BUT WE'RE KIND OF, YOU KNOW, WORKING THIS IN PARALLEL WITH SOME OF THE RULEMAKINGS AND EVERYTHING TO TRY TO KEEP IT ON A TIMEFRAME THAT WILL ALLOW US TO IMPLEMENT IT FAIRLY QUICKLY AFTER THE, UH, THE RULES ARE DONE AND HOPEFULLY BEFORE SOME OF THESE LARGE LOADS, UH, START NEEDING TO BE INTERRUPTED. 
          AND IN FACT, THE, THE FIRST PHASE OF THAT, UH, PROJECT, WE'RE CALLING IT THE, THE MINIMUM VIABLE PRODUCT FOR THAT WILL IMPLEMENT THE, THE NET METERING ARRANGEMENT TYPE CURTAILMENT. 
          AND THAT IS INTENDED TO BE DONE. 
          THE PROJECT WILL BE DONE FOR THAT WILL BE DONE BY, UH, EARLY SUMMER. 
          OKAY. 
          THE, UM, LAST TIME WHEN WE WERE TALKING ABOUT WINTER STORM FERN, THERE WAS SOME DISCUSSION, UH, AT THE BOARD MEETING ABOUT, UH, JANUARY 28TH, WHICH WAS KIND OF FOR US, IT WAS AT THE END OF FERN, THERE WAS STILL LOTS OF COLD WEATHER AND THEREFORE HIGH GAS CONSUMPTION IN THE REST OF THE US AND, UM, WE, WE HAD SOME TIGHT CONDITIONS ON THE ERCOT GRID ON THAT MORNING THAT WERE, UH, KIND OF THE FIRST TIME WE'D SEEN TIGHT CONDITIONS AFTER THE IMPLEMENTATION OF RTC. 
          AND WE ALSO SAW SOME INTERESTING THINGS RELATED TO THE, THE, TO BATTERY, UH, USE DURING THAT. 
          AND SO, UM, I JUST KIND OF WANTED TO TALK THROUGH THE, AS AS WE PROMISED, WE TALK THROUGH THIS MORE. 
          UM, WE DID TAKE SOME ACTIONS ON THAT MORNING, UH, IN OPERATIONALLY AND, UH, THIS, THAT IF WE HAD NOT TAKEN THOSE ACTIONS, AND WE'LL TALK THROUGH WHAT THOSE WERE, WE WOULD'VE SEEN TIGHTER CONDITIONS THAN WHAT WE ACTUALLY SAW. 
          WE STILL WOULD NOT HAVE BEEN IN AN EEA DURING OR ANYTHING LIKE THAT DURING, DURING THAT, THAT, UM, AND SO WE JUST, I'LL, I'LL TALK THROUGH THIS A LITTLE MORE, GIVE YOU SOME FIGURES. 
          UM, SO, UM, AS YOU CAN SEE HERE, THE, THE ON THE LEFT GRAPH, THE ON THE EVENING OF JANUARY 27TH, UH, THE BATTERIES DISCHARGED SIGNIFICANTLY AND THEN THEY CHARGED, UH, DOWN TO ROUGHLY 21% I GUESS IN THE EVENING. 
          AND, UM, THEY WERE FAIRLY WELL CHARGED UP BEFORE THAT. 
          AND THEN OVERNIGHT, UH, YOU CAN SEE THE SYSTEM LAMBDA. 
          SO THAT'S KIND OF THE MARKET CLEARING PRICE, IF YOU WILL, STAYED FAIRLY HIGH. 
          AND I MENTIONED THAT BECAUSE FERN WAS STILL AFFECTING THE NORTHEAST US NATURAL GAS PRICES WERE HIGH, AND THEREFORE POWER PRI UH, GAS PRICES IN ERCOT WERE STILL HIGH. 
          AND YOU SAW FAIRLY HIGH, UH, PRICES IN THE MARKET. 
          AND SO, ALTHOUGH, UH, THE STATE OF CHARGE OF THE BATTERIES IN THE AGGREGATE GOT DOWN TO 21% OVERNIGHT, THERE WAS NOT A LOT OF WIND, OBVIOUSLY, THERE WAS NO SOLAR AND PRICES WERE STILL HIGH IN THE MARKET AND SO THEY DIDN'T CHARGE UP, BUT TO ABOUT 44% GOING INTO THE MORNING BY ABOUT 5:00 AM I GUESS, WAS KIND OF THE HIGHEST, UH, AMOUNT. 
          AND SO THEN AS THE MORNING, WHAT WE SAW KIND OF REALLY STARTING AT, AT 2:00 AM OR SO, YOU SEE THE BLUE LINE ON THE LEFT THERE, THE, THE, THE NET LOADS, A LOAD NET OF, OF WIND AND SOLAR, UH, STARTED TO CLIMB THE ENTIRE TIME. 
          NOW NORMALLY LOAD WOULD GO DOWN OVERNIGHT, BUT WIND WAS DROPPING AS WELL. 
          SO THE, THE NET MEANS THAT THE LOADING ON OTHER GENERATION WAS CLIMBING DURING THE EVENING ALL THE WAY TO ABOUT EIGHT O'CLOCK IN THE MORNING. 
          UM, SO DURING THAT TIME, THE, THE BATTERIES, UM, STARTED TO, UH, DISCHARGE AT ABOUT 5:00 AM UP TO ABOUT EIGHT, A LITTLE AFTER EIGHT O'CLOCK. 
          AND, UH, THE, THAT 44% STATED CHARGE WENT DOWN TO ABOUT 10% BY THAT EIGHT 8:10 AM. 
          UM, NOW ERCOT DID TAKE SOME ACTIONS, AS I MENTIONED, BETWEEN FIVE AND AND 6:00 AM WE ISSUED SOME VERBAL DISPATCH INSTRUCTIONS AND, AND RELIABILITY UNIT COMMITMENT 
          [00:45:01]
INSTRUCTIONS TO SIX THERMAL GENERATORS. 
          SO WE BROUGHT THEM ONLINE BECAUSE IT LOOKED LIKE IT WAS KIND OF A RACE. 
          WAS THE SUN GONNA COME UP BEFORE THE BATTERIES RAN OUT OF CHARGE? AND WE WERE WORRIED THAT THAT WOULDN'T HAPPEN. 
          AND SO WE WENT AHEAD AND BROUGHT ON THIS OTHER GENERATION THAT OTHERWISE HADN'T BEEN COMMITTED BY THE MARKET. 
          UM, WE DEPLOYED THE OFFLINE NONS SPEND, WHICH MEANS THERE WERE SOME UNITS THAT WERE PROVIDING NONS SPEND. 
          THEY WERE OFFLINE, WE BROUGHT THEM ONLINE SO THAT THEY COULD BE USED TO SERVE ENERGY. 
          UM, AND THEN SOME OF OUR, THE RTC UH, USED RELEASED SOME OF THE NONS SPEND AND A LITTLE, SOME OF THE ECRS THAT MORNING AS WELL, SO THAT IT COULD BE USED FOR ENERGY AS PRICES CLIMBED. 
          IT KIND OF NATURALLY RELEASES THAT TO BE USED. 
          AND YOU CAN SEE THAT ABOUT 73% OF THE NONS SPIND WAS RELEASED. 
          ABOUT 20% OF THE ECRS WAS RELEASED. 
          A LITTLE BIT OF THE RESPONSIVE RESERVE ACCORDING TO THOSE ANCILLARY SERVICE DEMAND CURVES THAT SAY IF PRICES ARE HIGHER THAN THIS, IT WILL RELEASE THAT CAPACITY. 
          AND SO BASICALLY WE, WE TOOK SOME ACTIONS AND THEN ALSO THE, SOME OF THE ANCILLARY SERVICES RELEASED TO MAKE SURE THAT WE HAD ENOUGH, UH, THAT WE DIDN'T RUN OUT OF THE BATTERY, UH, BATTERIES BEFORE THE, THE SUN CAME UP. 
          NOW DAN, COULD I ASK YOU A QUESTION? YES, SIR. 
          BEFORE YOU GO ON, WHEN YOU STARTED THE R PROCESS, WHAT DO, WHAT WAS THE IMPACT ON MARKET PRICING AS YOU STARTED TO DO THAT? WELL, SO WHEN WE, WHEN WE BRING ON A LINE CAPACITY THROUGH THE RELIABILITY UNIT COMMITMENT PROCESS, THERE'S A RELIABILITY DEPLOYMENT PRICE ADDER THAT BASICALLY THE MARKET PRICES GET SET TO WHAT THEY WOULD'VE BEEN IF WE HAD NOT TAKEN THOSE RELIABILITY ACTIONS TO MAKE SURE THAT IT, OUR TAKING OF THOSE RELIABILITY ACTIONS DON'T NEGATIVELY IMPACT THE MARKET. 
          OKAY, THANKS. 
          SO, UH, WE GOT DOWN TO ABOUT 10%. 
          NOW, ONE THING TO RECOGNIZE IS THAT ALL OF THE BATTERIES, THE, THE, THE RATE AT WHICH THEY CAN DISCHARGE, BASICALLY PROVIDING CAPACITY INTO THE MARKET GOES DOWN AS THEY GET SOMEWHAT BELOW 10%. 
          UH, IN FACT, IT GOES DOWN SIGNIFICANTLY. 
          IF THEY GET BELOW WHAT WE'VE, BASED ON SOME ANALYSIS THAT WE'VE DONE OVER THE LAST YEAR, LOOKS LIKE WHEN THEY GET ON AVERAGE DOWN BELOW 5%, THE UH, UH, EACH INDIVIDUAL UNIT GETS BELOW 5% OR THEREABOUTS, THEY START TO NOT BE ABLE TO PUSH OUT THEIR FULL RATED CAPACITY. 
          NOW WE WERE CALLING THIS PHENOMENON BURNOUT ANALYSIS. 
          I UNDERSTAND THERE'S SOME SENSITIVITY AROUND THAT. 
          SO IT'S, IT'S A, IT'S, IT'S A PHENOMENON THAT WE NEED TO BE TALKING ABOUT, BUT WE'LL, UH, LOOK AT A DIFFERENT TERM FOR THAT IN THE FUTURE. 
          'CAUSE I THINK IT'S SOMETHING WE'RE GONNA BE TALKING ABOUT, UH, MORE. 
          WE NEED TO MAKE SURE WE HAVE A, A GOOD TERM. 
          BUT ANYWAY, THE, UM, THE, ON THAT MORNING WE GOT DOWN TO, UH, UM, THE, I GUESS THE, THE DOWN TO 10%, BUT IT'S IMPORTANT TO RECOGNIZE THAT IF WE DROPPED BELOW 5% ON AVERAGE, THAT THOSE BATTERY, THE CAPACITY FROM THOSE BATTERIES WOULD'VE GONE DOWN SIGNIFICANTLY. 
          WE ALREADY SAW SOME OF THEM THAT DROPPED OFF BECAUSE THEY JUST COMPLETELY RAN OUT OF ENERGY. 
          BUT, UM, THERE COULD HAVE BEEN MORE IF WE HAD HAD DISCHARGED MORE, UH, OF THE ENERGY, SO WE WERE CLOSER THAN, THAN WHAT 10% MIGHT HAVE INDICATED. 
          SO, UH, WE'VE, SO DAN, SO YES. 
          SHOULD WE CHANGE THE WAY WE'RE MEASURING THEN? IF WE ARE, I MEAN, WHEN YOU SAY THINGS LIKE, WE'RE CLOSER THAN THE MEASUREMENT INDICATED, SHOULD THE MEASUREMENT CHANGE, I MEAN, SHOULD, SHOULD WE PUT A A CUSHION IN HERE FROM NOW ON? I THINK, I THINK WE, I THINK THAT'S SOMETHING WE NEED TO WORK ABOUT. 
          UH, BASICALLY, YOU KNOW, IT LOOKS LIKE KIND OF A, AT THE TAILS IT KIND OF SLOPES OFF. 
          AND SO EITHER WE NEED TO, I THINK THIS IS THE APPROACH THAT CAL ISO HAS TAKEN. 
          YOU DON'T COUNT ON THE LAST SO MANY PERCENT, THE MEGAWATTS FROM THE LAST SEVERAL MANY PERCENT FOR, FOR LIABILITY PURPOSES. 
          OR, UH, WE CAN PUT MORE REQUIREMENTS AROUND HOW CAREFULLY THE BATTERIES REPORT THEIR MEGAWATT CAPABILITY AS AS IT GOES DOWN TO A LOW STATE OF CHARGE. 
          SO I WE'RE, UH, UH, I WAS JUST TALKING TO TAX CHAIR EARLIER, WE NEED TO START TALKING ABOUT THAT IN THE STAKEHOLDER PROCESS AND DEVELOP AN NPRR THAT PUTS SOME REQUIREMENTS AROUND THAT. 
          SO CAPACITY RATING BASED ON KIND OF WHERE THE STATE OF CHARGE IS? YES, IT, IT DOESN'T MATTER AS LONG AS THEY'RE KIND OF IN THE, YOU KNOW, MOST OF THE RANGE. 
          BUT WHEN YOU GET TO THE TAILS, IT, IT DOES SEEM TO MAKE A DIFFERENCE. 
          AND THEN WE DON'T, YOU DON'T 
          [00:50:01]
HAVE ANY ABILITY TO DICTATE STATE OF CHARGE. 
          YOU MEAN IN TERMS OF IF YOU'RE COMING INTO, IF YOU'RE FORECASTING, YOU'RE COMING INTO A TOUGH SITUATION LIKE YOU DID THAT NIGHT, YOU DON'T HAVE ANY ABILITY TO DICTATE STATE OF CHARGE. 
          YOUR OPTION IS TO GO TO RUCK. 
          WELL, YEAH, WE, WE DON'T CURRENTLY, AND IN FACT, THAT'S WHAT THIS NEXT SLIDE TALKS ABOUT IS THAT WE'VE, UH, FOR A YEAR AND A HALF OR SO HAVE BEEN WORKING ON A, A PROOF OF CONCEPT FOR HOW, BECAUSE WE, WE KIND OF USED OPERATOR JUDGMENT TO DECIDE THAT WE WERE GONNA BRING ONLINE THESE GENERATORS BECAUSE WE WERE WORRIED. 
          UM, BUT WHAT WE'D LIKE TO HAVE IS A TOOL THAT LOOKS AHEAD AND SEES WHAT IS THE RIGHT OPTIMIZATION OF THAT STATE OF CHARGE. 
          WE WOULDN'T USE THIS TOOL ALL THE TIME BECAUSE GENERALLY WE WANT THE MARKET TO, TO WORK. 
          UM, BUT IF WE GET INTO A SITUATION LIKE THIS WHERE WE'RE WORRIED THAT WE'RE GONNA BE NOT HAVE SUFFICIENT, UH, CHARGE OR IT MAY NOT BE USED IN THE WAY THAT WOULD BE BEST FOR RELIABILITY, WE'D BE ABLE TO IMPLEMENT THIS. 
          AND SO WE'VE, WE'VE DEVELOPED THIS TOOL, UM, BASICALLY IT, UH, LOOKS AHEAD WITH SOME LIMITED MAKING SURE THAT WE'RE MAINTAINING THE STATE OF CHARGE OVER TIME. 
          AND WE ACTUALLY RAN THIS KIND OF POST POST EVENT ON THIS PARTICULAR, UH, DAY. 
          AND YOU CAN SEE THAT, UH, THE, ON THESE GRAPHICS ON THE RIGHT, THE THE TWO ON THE LEFT ARE, UH, WHAT ACTUALLY HAPPENED. 
          THE TWO ON THE RIGHT ARE WHAT WOULD'VE HAPPENED WITH THE TOOL. 
          AND WHAT WE SEE IS THAT, UM, IT WOULD'VE COMMITTED THERMAL CAPACITY EARLIER, OVERNIGHT, AND THEREFORE THE BATTERIES WOULD'VE HAD MORE STATE OF CHARGE GOING INTO THAT MORNING PEAK. 
          UM, AND IT WOULD'VE RESULTED IN LESS RUX OVERALL OVER THE COURSE OF THAT, THAT, UM, 24 HOUR PERIOD. 
          AND SO, UM, LIKE I SAID, WE'RE NOT, WE WOULDN'T SUGGEST USING THIS TOOL ALL THE TIME, BUT IT SEEMS TO BE SOMETHING KIND OF, IT'S KINDA LIKE A ROCK FOR ENERGY AND THAT THAT WOULD BE KIND OF A BACKSTOP. 
          UM, NOW IT'S IMPORTANT TO UNDERSTAND THAT THAT BRINGS THE GENERATION ONLINE, BUT THERE'S ANOTHER PIECE OF IT, WHICH WE'LL TALK ABOUT ON THE NEXT SLIDE, THAT ALSO MAKES SURE THAT IF, IF YOU BRING ON THOSE, THOSE, UH, UNITS ON, AND THEN THEY'RE NOT USED TO PROVIDE ENERGY, THE BATTERIES ARE STILL USED TO PROVIDE ENERGY, THAT DOESN'T SOLVE THE PROBLEM, THAT ONLY SOLVES HALF THE PROBLEM. 
          AND SO WE'VE ALSO GONNA HAVE, WE'RE WORKING ON ANOTHER, UH, PROOF OF CONCEPT THAT WILL ALLOW US TO BASICALLY DISPATCH OUT OF MERIT ORDER AND THEN MAKE ENTITIES WHOLE. 
          AND THAT'S THE, THAT'S THE PIECE THAT'S KIND OF, DOESN'T, NOT, IT'S NOT SET UP YET, BUT WE WE'RE LOOKING AT, UH, BASICALLY WE'LL HAVE TO CHANGE THE, UH, PROTOCOLS AND IMPLEMENT AN NPRR TO TAKE THIS FROM A PROOF OF CONCEPT INTO A, UM, UM, IN THE PROTOCOLS TYPE RULE. 
          SO WHAT DID YOU, WHAT DID YOU GET DOWN TO IN PRC? IN, IN THIS SITUATION? YES. 
          SO, UM, I ACTUALLY DON'T REMEMBER. 
          LET'S SEE, IT WASN'T THAT LOW, BUT I'VE GOT A WHOLE, THE NEXT PRESENTATION I'M GONNA TALK ABOUT ACTUALLY EXPLAINS THAT PRC IS NOT REALLY A GOOD MEASURE ANYMORE IN THIS KIND OF SITUATION BECAUSE PRC, IF, IF YOU'VE GOT THE BATTERIES THAT ARE ABOUT OUT OF JUICE, RIGHT? SO THEY DON'T HAVE THE ENERGY FOR THE WHOLE, THEY DON'T HAVE A LOT OF ENERGY, BUT THEY MAY STILL BE REPORTING THE FULL CAPACITY, RIGHT? AVAILABILITY. 
          SO IT LOOKS LIKE PRC IS HIGH, BUT THEN WHEN, UH, THEY RUN OUTTA JUICE, THAT CAPACITY GOES AWAY. 
          YOU HAVE TO ADJUST THAT. 
          YES. 
          OKAY. 
          I, I HAVE A RELATED QUESTION. 
          MM-HMM . 
          WHAT IS THE ERROR BAR AROUND THE STATE OF CHARGER REPORTING ACROSS THE FLEET OF BATTERIES? I MEAN, IS IS THAT CONTRIBUTING TO THE IT SENSITIVITY? I MEAN, IT, IT'S HARD TO, WE DON'T REALLY KNOW IN THE MID RANGE MM-HMM . 
          BUT THAT 5% IS KIND OF WHAT IT IS BASED ON THE EVENTS THAT HAVE OCCURRED OVER THE LAST YEAR, UH, AT THE TAIL. 
          AND SO IT RANGE, IT RANGES FROM SAY TWO TO 10% DEPENDING ON THE UNIT, BUT ON AVERAGE IT, IT'S 5%. 
          JULIE, YOUR QUESTION WAS THE AGGREGATE STATE OF CHARGE, RIGHT? IS IT, IS THAT WHAT YOU WERE LOOKING AT ASKING THAT? WELL, EVERY SYSTEM, EVERY BATTERY'S GONNA HAVE A DIFFERENT ERROR RATE, RIGHT? SO PART OF OUR PROBLEM IS THE NUMBER OF UNITS ON THE SYSTEM HAS EXPONENTIALLY INCREASED, AND WE'RE SEEING THE CUMULATIVE ERROR AS WELL THAT WE'VE GOTTA ANTICIPATE. 
          SO OUR LIABILITY IS AFFECTED BY MORE 
          [00:55:01]
UNITS, BATTERIES ON THE SYSTEM. 
          CAN YOU GO BACK ONE ONE? MM-HMM . 
          ONE CHART. 
          MM-HMM . 
          SO JUST SO I UNDERSTAND THIS, THE, THE LOWER RIGHT HAND GRAPH SHOWS WHAT THE RUX WOULD'VE BEEN HAD YOU ADOPTED THE NEW PROOF OF CONCEPT, UM, SYSTEM, CORRECT? IS THAT, IS THAT RIGHT? OKAY. 
          CORRECT. 
          AND SO YOU CAN SEE IN ONE EXAM OF, OF, THERE'S LOTS OF COLORED AREA HERE ON THE LEFT ONE, WHICH IS WHAT ACTUALLY HAPPENED DURING THE COURSE OF THAT TIME. 
          THE, UH, THE RIGHT RIGHTMOST ONE STARTS CLOSER TO MIDNIGHT RATHER THAN STARTING AT SIX, YOU KNOW, A LITTLE BEFORE 6:00 AM BUT OBVIOUSLY THERE'S A LOT FEWER RUCKS OVERALL BECAUSE YOU STARTED EARLIER, MADE SURE THAT THE BATTERIES DIDN'T CHARGE DISCHARGE OVERNIGHT, AND THEN WE'RE ACTUALLY BETTER CHARGED UP UP TO, WHAT IS THAT 17 GIGAWATT HOURS OF STATE OF CHARGE AS OPPOSED TO THE 13 OR SO OVER HERE. 
          AND SO IT THAT WE DIDN'T ACTUALLY HAVE TO ROCK AS MUCH OVERALL. 
          OKAY. 
          KATHLEEN, DO YOU HAVE A QUESTION? OH, YEAH. 
          THANK YOU. 
          UH, MR. CHAIRMAN, QUICK QUESTION. 
          YOU WERE, AS YOU WERE DESCRIBING THE, UH, SORT OF THE TAIL RISK ON THIS, YOU DESCRIBED TWO WAYS TO ADDRESS THAT. 
          ONE IS MORE ACCURATE INFORMATION ABOUT EACH EACH BATTERY SYSTEM. 
          AND THE OTHER IS SORT OF A, I GUESS A TOP DOWN HAIRCUT TO JUST SAY, WELL, WE KNOW THESE, THERE'S, THERE'S GONNA BE SOME KIND OF DIMINISHED CAPACITY IN THE TAILS. 
          ONE SOUNDS A LOT SIMPLER AND LESS ACCURATE THAN THE OTHER BEING THE HAIRCUT SOUNDS SIMPLE AND LESS ACCURATE. 
          AND I WONDERED IF YOU COULD JUST GIVE US SOME OF YOUR THOUGHTS ON IS THERE REALLY MUCH OF A DIFFERENCE? DO YOU PREFER ONE OVER THE OTHER? IS ONE IMPOSSIBLE AND THE OTHER ONE'S GONNA BE VERY EASY TO DO QUICKLY, THAT SORT OF THING? SO I MEAN, THIS IS, THIS IS SOMEWHAT SIMILAR TO WHAT WE DO WITH THERMAL GENERATION AND HAVE FOR YEARS. 
          WE, PEOPLE TELL US HOW MUCH THEIR CURRENT CAPACITY IS BASED ON AMBIENT TEMPERATURES AND THOSE KIND OF THINGS. 
          AND WHAT WE'VE SEEN OVER TIME IS THEY'RE PRETTY ACCURATE BECAUSE THEY KNOW THEY'RE GONNA GET CALLED UPON TO DISPATCH TO THAT LEVEL. 
          UM, BUT THERE'S A, THERE'S A MECHANISM CALLED GRID P THAT OVER SOME PERCENT OF TIME THAT THEY, THEY CAN BE SO FAR OFF FOR SOME INTERVALS, BUT NOT MORE THAN THAT INTERVAL. 
          OR THEY, OR THEY, UH, THEY'RE PENALIZED FOR IT. 
          AND SO, UM, WE MAY BE ABLE TO SET UP SOME KIND OF MECHANISM LIKE THAT. 
          IT WOULD BE KIND OF ANALOGOUS. 
          UM, AND THAT WOULD BE PREFERRED APPROACH RATHER THAN KIND OF TAKING THE, UM, COMMAND AND CONTROL TYPE ACROSS THE TOP BECAUSE THAT TO SOME EXTENT WOULD TEND TO PENALIZE PEOPLE THAT ARE BEING MORE ACCURATE. 
          OKAY. 
          UM, SO MOVING FORWARD, I MEAN, THERE, THERE ARE SEVERAL THINGS THAT WE'VE LEARNED FROM THIS EVENT. 
          WE, WE'VE ALREADY, UH, IMPLEMENTED SOME NEW DISPLAYS IN THE CONTROL ROOM THAT WILL HELP US UNDERSTAND FURTHER IN ADVANCE WHEN WE NEED TO, TO RUCK THINGS BECAUSE THE, THE OF THE ANCILLARY SERVICE REQUIREMENTS BEING, I MEAN THIS, THIS IS KIND OF A MORE OF AN RTC LEARNING THAT ANYTHING TO DO WITH BATTERIES IS THAT WE NEED TO BE ABLE TO UNDERSTAND WHEN SC, THE RTC SCAD IS RELEASING, UM, UM, THE ANCILLARY SERVICES, NOT PROCURING THEM. 
          AND IF WE STILL THINK THERE'S A RISK, WE CAN R ON MORE GENERATION IF NEED BE IN THIS KIND OF SITUATION. 
          NOW, WE WOULDN'T NECESSARILY ALWAYS DO THAT 'CAUSE IT MAY BE THAT, THAT THE REASON IT'S RELEASING IT IS BECAUSE OF OF FORECAST ERROR OR SOMETHING LIKE THAT, WHICH IS WHY WE BOUGHT THE AS. 
          BUT IN THIS CASE, WE'RE, WE COULD BE GOING INTO SCARCITY. 
          WE DON'T WANNA, WE DON'T WANNA, THIS IS OUR, OUR RISK OF NOT COMMITTING ENOUGH GENERATION AND WE WOULDN'T HAVE WANT TO HAVE TO SHED LOAD JUST BECAUSE WE DIDN'T TAKE ACTION WE COULD HAVE TAKEN. 
          UM, THE SECOND THING IS, IS, UH, TO UPDATE THE TRIGGERS FOR, UH, NONS SPEND DEPLOYMENT, WE'VE ACTUALLY SUBMITTED A CHANGE SO THAT WE, UH, HAVE THOSE THAT THEY'RE SOC AWARE, SO IT WILL RELEASE THE NONS SPEND THAT'S OFFLINE EARLIER IN ORDER TO KEEP FROM RUNNING OUT OF STATE OF CHARGE AND HAVING THAT CAPACITY GO AWAY. 
          AND THEN, UM, I'VE GOT THE WHOLE OTHER PRESENTATION THAT WE'RE GONNA TALK ABOUT, ABOUT A, ANOTHER TRIGGER BECAUSE WHAT THIS MADE US RECOGNIZE, WE WEREN'T THAT CLOSE TO AN EMERGENCY IN THIS PARTICULAR CASE, BUT IF YOU EXTRAPOLATED OUT A LITTLE FURTHER, THERE'S SOME OTHER CHANGES YOU WE MIGHT NEED TO MAKE AS WE APPROACHED EMERGENCY CONDITIONS. 
          UM, 
          [01:00:01]
AND THEN WE'VE IMPROVED SOME OTHER TOOLS RELATED TO, UH, STATE OF CHARGE, AND WE'D LIKE TO ACTUALLY PUT THAT OUT ON THE, MORE OF THOSE OUT ON THE WEBSITE SO THAT THE PUBLIC CAN SEE THOSE AS WELL. 
          SO THAT'S SOMETHING WE'RE WORKING ON. 
          AND THEN FINALLY, I MENTIONED EARLIER THIS PROOF OF CONCEPT THAT WE'VE DONE FOR ROCK. 
          WE NEED TO IMPLEMENT THAT IN PRODUCTION, BUT WE ALSO NEED TO IMPLEMENT THIS UH, DISPATCH, UH, ALGORITHM THAT WILL, UM, UM, HAVE SOME MINIMUM STATE OF CHARGE CONSTRAINT. 
          MAKE SURE THAT WE RETAIN ENOUGH CAPACITY SO IT'LL TAKE IT, BE, TAKE IT INTO ACCOUNT IN SC AS WELL. 
          SO I THINK THAT'S ALL ON THAT ONE. 
          UH, HAPPY TO ANSWER QUE ANY OTHER QUESTIONS YOU MIGHT HAVE. 
          JULIE, I HAD A NET METERING QUESTION. 
          OKAY. 
          UH, AFTER LISTENING TO THE PUC OPEN MEETING ON, I GUESS IT WAS FRIDAY, WHO DO YOU CUR WHEN YOU WANNA CURTAIL, WHO ARE YOU COMMUNICATING THE CURTAILMENT TO? FOR THE NET METERING ARRANGEMENTS? YEAH. 
          A LARGE LOAD CURTAILMENT. 
          YOU DON'T HAVE DIRECT CONTACT WITH THE LARGE LOAD. 
          SO WHO, WHO GETS THE CURTAILMENT MESSAGE? SO I DON'T KNOW HOW MUCH I CAN TALK ABOUT THAT WITHOUT, BECAUSE THOSE ARE OPEN CASES. 
          I THINK AT THIS POINT YOU CAN ANSWER THE, CAN I ANSWER THAT? YEAH, IT'S A GENERAL QUESTION. 
          OKAY. 
          YEAH. 
          SO IN GENERAL, THE, UH, THE, THE QSE FOR THE RESOURCE HAS THE OBLIGATION TO MAKE ITS GENERATION AVAILABLE. 
          SO AT THIS POINT, I THINK OUR GENERAL THINKING IS THAT WE'RE GONNA BE TELLING THE QSE MAKE YOUR GENERATION AVAILABLE QSE. 
          THANK YOU. 
          AND WHAT'S YOUR TIMING FOR THE, IF YOU GO BACK TO YOUR RECOMMENDATIONS, WHAT'S YOUR TIMING? SOME OF THAT REQUIRES PROTOCOL REVISIONS AND SO FORTH. 
          YEAH, SO, UM, THE, UM, THE IMPLEMENTING THE PROOF OF CONCEPT, I THINK WE CAN GET THAT PROTOCOL CHANGED. 
          I THINK IT'S, IT'S PRIMARILY WRITTEN, WE'RE WAITING ON KIND OF STAFFING TO GET THE SC PART OF IT WRITTEN, BECAUSE THE, UH, A LOT OF IT'S, IF WE'RE GOING TO DO THIS OUT OF ORDER IN A ANALOGOUS WAY TO WHAT WE DO WITH, UH, R WE WOULD WANT TO HAVE A FINANCIAL, UH, BACKSTOP, IF YOU WILL, FOR THE PEOPLE THAT WERE, UH, PRO PROCURE OR ESSENTIALLY CHARGING OUT OF ORDER, MAYBE DIFFERENT THAN WHAT THEY HAD REQUESTED TO DO. 
          AND SO THAT PART WILL TAKE A, IS TAKING A LITTLE LONGER. 
          UM, BUT I THINK THE INTENT IS TO GET THAT DONE, YOU KNOW, FAIRLY QUICKLY. 
          AND THEN IT'S A MATTER OF HOW QUICKLY IT CAN GET THROUGH THE STAKEHOLDER PROCESS. 
          OKAY. 
          ANY QUESTIONS FOR DAN? ANYTHING ELSE, DAN? I'VE GOT ANOTHER PRESENTATION. 
          OKAY. 
          NEXT AGENDA 
          [8.1 Impact of Limited Duration Resources  on Emergency Operations ]
ITEM IS, UH, AGENDA ITEM 8.1, THE IMPACT OF LIMITED DURATION RESOURCES ON EMERGENCY OPERATIONS. 
          OKAY. 
          SO THIS ONE IS, IS RELATED AND LIKE I SAID, WE KIND OF LEARNED FROM THIS JANUARY 28TH AND, AND SIMILAR EVENTS AND LOOKING A LITTLE FURTHER DOWN THE ROAD DURING, UH, TIGHT CONDITIONS TO WHERE DO WE NEED TO DO SOMETHING DIFFERENT. 
          UM, IF WE WERE TO TRULY BE RUNNING OUTTA CAPACITY, HOW WOULD WE, HOW WOULD, HOW WOULD THIS PLAY OUT IN THAT CASE? SO JANUARY 28TH IS MORE ABOUT WE'VE GOT ENOUGH CAPACITY AND ENERGY, IT'S JUST A MATTER OF DO WE START IT UP AND MAKE IT AVAILABLE FAR ENOUGH IN ADVANCE SO THAT WE DON'T HAVE A PROBLEM. 
          THIS PRESENTATION IS ABOUT A DIFFERENT SITUATION WHERE WE'RE BASICALLY OUT OF CAPACITY AND ENERGY, AND HOW DO WE CORRECTLY ASSESS THAT INFORMATION OR THAT SITUATION IN ADVANCE AND TAKE ACTION FAR ENOUGH IN ADVANCE. 
          . 
          AND THE REASON FOR MAKING THIS PRESENTATION TODAY IS THAT THERE ARE A LOT OF KIND OF I POLICY DECISIONS THAT ARE BEING MADE. 
          PEOPLE ARE, ARE BASING THINGS BASED ON PRC, PHYSICAL RESPONSIVE CAPABILITY. 
          THAT'S KIND OF BEEN OUR TRIGGER FOR MANY YEARS ON WHEN ARE WE GOING INTO AN EMERGENCY. 
          UM, AND THE WAY PRC IS DEFINED TODAY, THAT MAY NOT BE THE RIGHT ANSWER ANYMORE. 
          AND WE JUST WANT TO KIND OF MAKE IT KNOWN SO THAT IN GENERAL AND UNDERSTOOD THAT THAT'S NOT A SUFFICIENT TRIGGER. 
          UH, RIGHT NOW, UM, WITH, WITH THE VOLUME OF LIMITED DURATION RESOURCES THAT WE HAVE, WE NEED A, A DIFFERENT TRIGGER. 
          UM, THERE'S ALSO, I'VE HEARD, UH, YOU KNOW, STATEMENTS IN THE, THE MEDIA SAY THAT, OH, WELL PRC WASN'T THAT LOW, SO WE WEREN'T THAT TIGHT. 
          AND LIKE I SAID, THAT'S NOT THE WHOLE PICTURE AT THIS POINT. 
          YOU'VE ALSO GONNA LOOK AT WHAT'S CONTRIBUTING TO THAT PRC AND HOW LONG IT WILL LAST TO REALLY DETERMINE HOW, UH, TIGHT WE ARE. 
          [01:05:01]
AND SO I'M GONNA RUN THROUGH THIS, UM, AND MAYBE A SLIGHTLY DIFFERENT MECHANISM THAN, THAN WHAT'S IN THE SLIDES. 
          WE PUT SOME EXTRA SLIDES IN HERE TO MAKE SURE THAT IF YOU WERE LOOKING AT THIS IN ADVANCE, YOU COULD UNDERSTAND WHAT WAS GOING ON. 
          BUT I'M GONNA TRY TO KIND OF EXPLAIN IT AT A, A HIGHER LEVEL AS I GO THROUGH THIS. 
          UM, SO ER'S REQUIRED TO, TO, TO DECLARE EEA THREE AND SHED LOAD WHEN IT WOULDN'T BE ABLE TO WITHSTAND THE LOSS OF THE BIGGEST UNIT ON THE SYSTEM, WHATEVER THAT BIGGEST, THAT MOST SEVERE SINGLE CONTINGENCY IS. 
          AND WE'VE DONE STUDIES THAT SHOW THAT THAT IS A PRC PHYSICAL RESPONSIVE CAPABILITY OF 1500 MEGAWATTS. 
          AS LONG AS WE'RE MAINTAINING THAT LEVEL OF RESERVES THAT ARE FREQUENCY RESPONSIVE, THEN WE CAN WITHSTAND THE LOSS OF THAT LARGE UNIT PRC. 
          THE WAY WE CALCULATE IT, IT IS A, A VIEW OF HOW MUCH RESERVES DO WE HAVE AT A POINT IN TIME. 
          AND THEN WE RECENTLY LOOKED AT, UH, LAST YEAR OR SO, HAVE LOOKED AT, WELL, IF THERE ARE, ARE LIMITED DURATION RESOURCES BATTERIES, UH, THAT ARE INCLUDED IN THAT CALCULATION IN THE RESERVES PART OF THAT CALCULATION. 
          SO BASICALLY RESERVES BEING RESOURCES AVAILABLE MINUS LOAD, IF THERE ARE, ARE BATTERIES INCLUDED IN THAT? THEY HAVE TO BE ABLE TO LAST FOR 45 MINUTES. 
          OKAY. 
          BECAUSE IF WE, IF THAT'S NOT ENOUGH AND WE HAVE TO SHED LOAD, IT MAY TAKE THE, WE TELL THE TRANSMISSION OWNERS TO SHED LOAD AND IT, THEY HAVE UP TO 30 MINUTES TO SHED THAT LOAD. 
          OKAY. 
          AND SO, UH, WE HAVE TO LOOK OUT AT LEAST THAT FAR TO BE ABLE TO TELL. 
          UM, AND SO WE PUT TOGETHER AN EXAMPLE HERE, BUT I'M NOT GONNA GO THROUGH THE FIRST COUPLE OF THESE. 
          I'M GONNA SKIP AHEAD TO THIS SLIDE SO THAT, RIGHT NOW THAT PRC CALCULATION JUST LOOKS AT RESOURCES MINUS LOAD. 
          AND DOES THAT A, ARE THOSE RESOURCES ABLE TO LAST 45 MINUTES? BUT AS YOU CAN SEE ON THIS GRAPH THAT, THAT THE, THE DOTTED LINE IS KIND OF THE, UH, AMOUNT OF RESOURCES WE'VE GOT. 
          THE SLOPED LINE HERE IS THE NET LOAD. 
          SO IT'S LOAD MINUS WIND AND SOLAR, JUST FOR EASE OF, OF EXPLAINING THIS. 
          AND SO WHEN YOU GET OUT HERE TO T ONE THAT THAT RESERVES IS ONLY 1500 MEGAWATTS, THAT'S, THAT'S WHEN WE DECLARE AN EEA TODAY. 
          BUT THERE'S A LOT OF THE BATTERIES ARE DISCHARGING AT FULL OUTPUT AT THAT POINT. 
          AND THE PRC CALCULATION DOESN'T TAKE INTO ACCOUNT HOW MUCH STATE OF CHARGE THAT THOSE HAVE. 
          AND SO IF THEY ACTUALLY, SO THEY'RE TELLING US WE'RE WORTH, YOU KNOW, 18,000 MEGAWATTS FOR THE NEXT FIVE MINUTES, THEY'RE BIDDING THAT INTO THE MARKET. 
          BUT IF THEY'RE OUT, IF THEY'RE NEARLY OUT OF ENERGY, THAT COULD FALL AWAY RELATIVELY QUICKLY. 
          AND SO WE'VE GOTTA SOMEHOW ACCOUNT FOR THAT. 
          AND THAT'S REALLY THE, THE, THE POINT OF THIS, UH, PRESENTATION. 
          WE NEED TO, UM, WE NEED TO BE ABLE TO LOOK AHEAD AND SEE WHEN ALL OF THE, WHEN, HOW LONG ALL OF THE BATTERIES HAVE BEFORE THEY RUN OUT OF STATE OF CHARGE. 
          AND THEN, UH, ACCOUNT FOR THAT IN DECIDING WHEN WE NEED TO TELL THE TRANSMISSION OWNERS TO SHED LOAD OR TAKE OR AHEAD OF THAT TAKE OTHER ACTIVITIES. 
          AND RIGHT NOW, PRC DOESN'T, DOESN'T TAKE THAT INTO ACCOUNT. 
          AND THE SECOND PART, THE PRC RIGHT NOW ASSUMES THAT YOU'VE GOT, THAT THE RATINGS YOU'VE GOT RIGHT NOW ASSUME THAT YOU'VE GOT THAT CAPACITY FOR 45 MINUTES, WHEN REALLY YOU, YOU MAY OR MAY NOT. 
          YEAH, IT, IT ASSUMES THAT THE RESERVES HAVE AT LEAST 45 MINUTES, BUT THE PART THAT'S, THAT'S BEING USED TO SERVE ENERGY RIGHT NOW, THERE'S NO KIND OF LOOK AHEAD ON THAT OTHER THAN THE FIVE MINUTES FOR THE DISPATCH PURPOSE. 
          OKAY. 
          AND SO, UM, THE OTHER THING THAT'S IMPORTANT ON THAT IS NOT JUST OF WHEN WE GO INTO EEA, BUT ALSO IF WE WERE TO HAVE TO SHED LOAD, HOW MUCH DO WE HAVE TO SHED? WE'VE GOTTA ACCOUNT FOR THE FACT THAT THOSE NOT ONLY THAT THE LOAD'S DROPPING OR MAY BE CLIMBING, BUT THE AMOUNT OF CAPACITY FROM THE BATTERIES MAY, MAY GO AWAY. 
          CORRECT. 
          AND SO THIS IS, IS A REALLY SIMPLIFIED EXAMPLE, BUT THE, THE, THE POINTS ARE THAT, UM, WE'RE GONNA NEED TO HAVE A FORECAST OF HOW THE BATTERIES ARE GOING TO DEPLETE THEIR STATE OF CHARGE BASED ON HOW THEY'RE GONNA BE DISPATCHED OVER AT LEAST THE NEXT SAY, HOUR IN ORDER TO, TO, TO BE ABLE TO ACCOUNT FOR THIS. 
          UM, 
          [01:10:01]
AND, UM, THE OTHER THING TO RECOGNIZE IS THAT AT THE POINT THAT WE LOOK AHEAD, LET'S SAY 45 MINUTES AND SAY WE'RE GONNA HAVE TO BE IN EEA THREE BECAUSE AT THAT POINT THERE'S GONNA BE ENOUGH OF THE BATTERIES THAT HAVE RUN OUT OF CAPACITY AND THEIR ARE RUN OUT OF ENERGY AND THEIR CAPACITY'S GONNA GO AWAY, THAT WE'RE GONNA HAVE START HAVING FREQUENCY PROBLEMS OR SOMETHING LIKE THAT. 
          WE'VE GOTTA SHED LOAD BACK OVER HERE SOMEWHERE IN ORDER TO HAVE, FOR THE TOS TO HAVE TIME TO SHED IT BEFORE THAT THOSE, UH, THAT CAPACITY STARTS TO DROP OFF. 
          WELL, AT THIS POINT IN TIME WHERE WE'RE HAVING TO ORDER THE LOAD SHED, PRC MAY STILL LOOK OKAY. 
          AND THAT'S KIND OF THE TRICKY THING THAT, THAT FOLKS ARE NOT THINKING ABOUT ACROSS, YOU KNOW, ALL DIFFERENT FACETS OF THE INDUSTRY. 
          HOW WOULD, HOW WOULD YOU TAKE INTO ACCOUNT WRECKABLE RESOURCE IN THAT CALCULATION? SO I, I, I THINK IN, IN THE SIMPLIFICATION OF THIS EXAMPLE, WE'VE SAID, OKAY, EVERYTHING'S ONLINE AND SO FORTH, BUT I THINK THE, THE CONCEPT APPLIES ALL THE WAY BACK THROUGH THE PROCESS. 
          WHETHER IT'S, UH, IF THERE ARE THINGS LIKE ERS THAT WE NEED TO DEPLOY EARLIER, AND ACTUALLY IT APPLIES ALSO AS WE'RE GETTING INTO SHED DOING SOME OF THE CURTAILMENT OF THE LARGE LOADS. 
          WE'VE ALSO GOTTA LOOK NOT ONLY AT WHAT THE PRC IS NOW, BUT WHAT IS IT GOING TO BE IF WE WERE NOT TO SHED THAT OR TO CURTAIL THAT LOAD. 
          IS IT GOING TO, ARE WE GONNA LOSE THE CAPACITY OF THE BATTERIES AND THEN GET INTO A FREQUENCY PROBLEM OR SOMETHING? SO WE'RE GONNA BASICALLY, IT'S NOT JUST APPLICABLE FOR LOAD SHED, IT'S APPLICABLE FOR EVERY ACTION BACK ALONG THE WAY. 
          SO DAN, BECAUSE BECAUSE OF PROTOCOL CHANGES WE'VE MADE, YOU KNOW, IN THE LAST COUPLE OF YEARS, YOU NOW HAVE VISIBILITY STATE OF CHARGE. 
          DO YOU HAVE ANY VISIBILITY INTO THE, THE DEPLETION RATES OR, OR THE CHANGES STATE OF CHARGE TODAY? SO WE, WE, UM, WE DON'T REALLY, NOW WHAT WE NEED IS A TOOL THAT WILL ALLOW US TO FIGURE OUT, NOT FOR STARTING NOW, WHAT IS THE DISPATCH OF THE SYSTEM GOING TO BE OUT FOR, SAY THE NEXT HOUR OR, OR MORE. 
          AND THEN LOOK AT, WELL, IF THAT'S THE CASE, HOW MUCH WILL THE BATTERIES LIKELY BE DEPLETED? AND SO THAT'LL ALLOW US TO KIND OF HAVE A FORECAST OF, OF THAT, I GUESS WHERE I'M GOING WITH THIS, IN ORDER TO DETERMINE THAT, YOU'LL HAVE TO GO BACK OUT TO THE ESR STAKEHOLDERS AND GET THEM TO TELL, TELL YOU WHAT THEIR, THEIR STATE OF CHARGE CHANGE IS OVER TIME. 
          WELL, THEY'LL HAVE TO, WE'LL HAVE TO GET, OFFER INFORMATION FOR IT. 
          OKAY. 
          BECAUSE BASICALLY THEIR DEPLETION IS STATE OF CHARGE OR THEIR DEPLETION OF ENERGY IS BASED ON THE DISPATCH THAT THEY GET FROM US. 
          MM-HMM . 
          OKAY. 
          BUT ISN'T IT EFFECTIVELY THEN A DYNAMIC RATING BASED ON STATE OF CHARGE FOR THE CAPACITY? I MEAN, THAT'S ONE, THAT'S ONE WAY TO LOOK AT IT. 
          OR THE OTHER WAY TO LOOK AT IT IS THAT WE NEED TO FORECAST WHAT PRC IS GOING TO BE, NOT JUST WHAT IT IS RIGHT NOW, BUT ALSO WHAT IS IT GOING TO BE. 
          SO WE CAN TAKE ACTIONS FARTHER IN ADVANCE, BUT IT WOULD CONSIDER THAT, RIGHT? YEAH. 
          TO BE ABLE TO FORWARD INTEGRATE THE CURVE BASICALLY. 
          YES, YES, YES. 
          AND SO THAT'S BASICALLY WHAT, WHAT THE NP WE ARE, WE'RE PLANNING ON, UH, FILING AN NPRR THAT, WE'LL, WE'LL DO THIS, UM, IT, THERE'S A DRAFT WRITTEN, BUT WE HAVEN'T GOT IT FILED YET. 
          UH, AND BASICALLY IT WILL SET UP ANOTHER TRIGGER. 
          RIGHT NOW OUR TRIGGER FOR EEA, WE'VE GOT TWO, THEY'RE, WHEN FREQUENCY STARTS TO DROP 'CAUSE WE JUST DON'T HAVE ENOUGH CAPACITY, OR WHEN PRC DROPS BELOW A CERTAIN LEVEL BECAUSE WE DON'T HAVE ENOUGH RESERVES TO WITHSTAND THAT LARGEST UNIT, THERE'LL BE ANOTHER ONE, WHICH IS KIND OF THE LOOK AHEAD VERSION OF PRC, WE'LL COME UP WITH A DIFFERENT ACRONYM. 
          THIS IS, THIS IS WHAT WE'RE PROPOSING THIS, UH, LIMITED ENERGY CAPACITY RESERVE. 
          UH, BUT WHAT IT REALLY IS, IS FORECASTED PRC, UM, AND WE'LL, WE'LL THEN HAVE TO DEFINE WHAT ALL, WHAT THE TRIGGERS ARE FOR NOT JUST EEA THREE, BUT ALL THE, THE PREVIOUS, UM, REQUIREMENTS. 
          AND, UM, SO DAN, CAN I ASK YOU A QUESTION? YES. 
          OR WE'RE, WE'RE NOT THE ONLY ISO GETTING MORE DEPENDENT ON, UH, ESRS. 
          WHAT, WHAT ARE YOU SEEING ACROSS THE INDUSTRY AND THE OTHER ISOS? YEAH, SO, SO I'VE TALKED TO SOME OF MY PEERS ABOUT THIS. 
          UH, YOU KNOW, IT'S A DIFFERENT ISSUE FOR US THAN IT IS FOR MOST OF THEM. 
          THAT BALANCING OF GENERATION AND, AND LOAD ON IN MOST BALANCING AUTHORITIES IS, UH, THE, THE RULES AROUND IT ARE BASED ON THAT. 
          THEY DON'T WANT TO LEAN ON THEIR TIES FOR TOO LONG. 
          AND SO IF YOU'RE A BALANCING AUTHORITY 
          [01:15:01]
IN THE EASTERN INTERCONNECTION AND YOU DON'T HAVE ENOUGH GENERATION TO SERVE YOUR LOAD, THAT JUST MEANS YOU'RE GONNA SUCK IN MORE POWER TO SERVE THE LOAD OVER YOUR TIES. 
          FOR US, IF WE DON'T HAVE ENOUGH GENERATION TO SERVE OUR LOAD, THE FREQUENCY STARTS TO GO DOWN. 
          AND SO WE'VE KIND OF, THIS IS A MORE, UH, ACUTE, UM, SITUATION FOR US ALWAYS THAT BALANCING OF GENERATION LOAD THAN IT IS FOR OTHERS. 
          HEY, DAN. 
          UM, SO WHAT DO YOU, COUPLE, TWO QUESTIONS. 
          WHAT DO YOU DO UNTIL IN THE LIKELIHOOD, I REALIZE IS PROBABLY SMALL NOW, GIVEN WHERE WE'RE AT, BUT WHAT WOULD YOU DO NOW DIFFERENTLY? YOU JUST HAVE TO MANUALLY MAKE DECISIONS FROM A DISPATCH PERSPECTIVE TO TRY TO ACCOUNT FOR THIS AND GET AHEAD OF THE GAME. 
          AS YOU TALKED ABOUT IN THE EARLIER PRESENTATION. 
          BASIC, BASICALLY WHAT WE DID ON THE 28TH, WHICH IS KIND OF MANUALLY TRYING TO LOOK AT, WE HAVE, WE HAVE BUILT SOME TOOLS THAT WILL ALLOW US TO LOOK AHEAD, ASSUMING THAT WE CONTINUE TO DISCHARGE AT THE CURRENT, UH, RATE. 
          YEAH. 
          OR THAT THEY DISCHARGE AT THE FULL OUTPUT, YOU KNOW, LIKE FULL FULLY, YOU KNOW, FULL AS FAST AS THEY CAN. 
          AND SO WE'VE GOT A COUPLE OF DIFFERENT CURVES AND IT OUGHT TO BE SOMEWHERE BETWEEN THAT, BUT WE DON'T HAVE A REAL ACCURATE, UH, YEAH. 
          SO WE'LL PROBABLY HAVE TO BE MORE CONSERVATIVE THAN, THAN WE, UM, WOULD BE IF WE HAD A FORECAST TOOL. 
          YEAH. 
          AND THEN OBVIOUSLY THIS AFFECTS STAKEHOLDERS. 
          SO IS WHAT'S THE PROCESS TO GET THEIR FEEDBACK AND, AND HOW WE WORK THROUGH THIS? YEAH, SO OUR, OUR INTENT IS TO FILE THIS NPRR, UM, YOU KNOW, FAIRLY PROMPTLY. 
          UM, WE'VE STILL GOT A FEW MORE REVIEW PROCESSES. 
          THE TECHNICAL GUYS ARE ACTUALLY STILL WORKING ON SOME OF THE DETAILS OF IT. 
          UM, BUT ONCE THAT'S DONE, UH, WE'LL FILE IT AND THEN IT'LL GO THROUGH THE NORMAL STAKEHOLDER PROCESS. 
          UM, BUT WITH THE MAIN REASON, LIKE I SAID EARLIER THAT WE WANTED TO TALK ABOUT IT HERE TODAY IS THAT THERE'S JUST A LOT OF DISCUSSION OUT THERE ABOUT TYING THINGS TO PRC BECAUSE THAT IS THE UNDERSTOOD THE, UM, UM, KIND OF THE, THE ESTABLISHED MECHANISM FOR ASSESSING WHERE YOU'RE IN SCARCITY OR NOT. 
          AND THAT'S NOT THE WORLD WE'RE ABOUT TO LIVE IN. 
          YEAH, NO, IT'S VERY, VERY INFORMATIVE. 
          THANK YOU. 
          LOOKS LIKE THAT'S IT. 
          ANY, ANY OTHER QUESTIONS FOR DAN? DAN, IS THERE MORE TO YOUR PRESENTATION? NOPE. 
          NOPE, THAT'S IT. 
          ALRIGHT, THANKS DAN. 
          NEXT IS THE 
          [9. Interconnection and Grid Analysis  Update]
AGENDA ITEM NINE, THE INTERCONNECTION GRID ANALYSIS UPDATE PRESENTED BY JEFF BELLOW. 
          JEFF. 
          ALL RIGHT. 
          GOOD AFTERNOON. 
          I HAVE SEVERAL UPDATES FOR YOU TODAY. 
          I'LL START WITH THE LARGE LOAD INTERCONNECTION REQUEST. 
          I THINK THE HEADLINE ON, UM, THIS SLIDE IS THAT IN THE FIRST QUARTER OF THIS YEAR, WE HAD 198, UH, NEW REQUEST FOR LARGE LOADS TO INTERCONNECT TO THE ERCOT SYSTEM. 
          UM, THAT THAT'S ABOUT TWO AND A HALF TIMES MORE THAN OUR NEXT HIGHEST QUARTER, WHICH, UH, HAPPENED IN SECOND QUARTER OF LAST YEAR. 
          AND, UM, WE NOW HAVE OVER 500 ACTIVE LARGE LOAD INTERCONNECTION REQUESTS THAT WE ARE, UM, UH, PROCESSING. 
          UM, THE OTHER THING THAT IS INTERESTING TO NOTE ON THIS SLIDE IS, UH, IF YOU LOOK AT THE COLORS, THE COLORS INDICATE THE, UH, THE SIZE OF THE LOADS THAT ARE, ARE CONNECTING. 
          AND, UM, THAT GREEN, UH, WHICH IS THE MAJORITY OF THE REQUEST, UH, ARE 750 PLUS MEGAWATTS. 
          SO THESE ARE EXTREMELY LARGE, VERY LARGE LOADS. 
          UH, SO WE'RE REDEFINE LARGE LOAD AS 75 MEGAWATTS AND LARGER. 
          A LOT OF THE REQUESTS THAT ARE COMING IN NOW ARE, UM, A THOUSAND MEGAWATT PLUS REQUEST. 
          UM, AND SO THAT BRINGS US TO A TOTAL OF OVER 400 GIGAWATTS THAT IS, UM, UNDER STUDY RIGHT NOW. 
          OR I SHOULD SAY THAT THAT HAS REQUESTED NOT ALL OF THAT, UH, HAVE THE, UH, STUDIES STARTED. 
          UM, AGAIN, THE COLORS HERE MATTER. 
          SO THAT ORANGE BAR, UH, NONE OF THOSE HAVE ACTUALLY STARTED THE STUDIES YET. 
          AND SO THESE ARE MORE AKIN TO, YOU KNOW, SOMEBODY HAS RAISED THEIR HAND AND SAID, I'M INTERESTED IN CONNECTING TO THE ERCOT SYSTEM. 
          UM, BUT THEY'RE, THEY'RE PRETTY EARLY IN THE PROCESS. 
          UM, I, I THINK, YOU KNOW, IT'S IMPORTANT TO NOTE HERE, UH, SIMILAR ON THE GENERATION INTERCONNECTION SIDE, UM, I, OBVIOUSLY NOT ALL OF THESE, UH, LOADS WILL ACTUALLY COME TO FRUITION. 
          UH, BUT THESE ARE AT LEAST ONES THAT HAVE STARTED THAT PROCESS. 
          UM, ALSO WANTED TO HIGHLIGHT HERE THAT, UM, IT, IT'S, UH, 87.6% HAVE TOLD US THAT THEY ARE, UH, DATA CENTERS. 
          BUT IF YOU LOOK AT SOME OF THE OTHER, UH, COLORS ON THAT, THAT CHART ON THE RIGHT, UM, THERE A LOT, A LOT OF THE OTHER ONES ARE SOME 
          [01:20:01]
FORM OF DATA CENTER. 
          MAYBE THEY'RE CRYPTO OR CRYPTO SLASH UH, DATA CENTER. 
          AND SO IT'S REALLY OVER 90% OF THE ONES THAT ARE GOING THROUGH THE LARGE LOAD INTERCONNECTION PROCESS ARE, ARE SOME FORM OF DATA CENTER. 
          AND JEFF, THIS INCLUDES ANY, ANY LOAD, RIGHT? REGARDLESS IF THEY PLAN TO HAVE GENERATION BEHIND THE METER, THAT TYPE OF THING. 
          RIGHT, RIGHT. 
          YEAH, IT'S, IT'S, IT'S MOSTLY THEY ARE, UH, STANDALONE LOADS, BUT THERE ARE SOME CO-LOCATED, UH, FACILITIES IN HERE AS WELL. 
          UH, SO WHEN, UM, UH, BUT SEPARATE PRESENTATION ON THE BATCH STUDY, BUT, UM, WHEN WE STARTED TALKING IN JANUARY, WE, WE STARTED HAVING INDIVIDUAL INTERVIEWS WITH STAKEHOLDERS. 
          UM, ONE OF THE PAIN POINTS THAT THE DEVELOPERS EXPRESSED TO ERCOT WAS AROUND THIS COMMUNICATION. 
          UH, RIGHT NOW WE DON'T HAVE A, UH, A DIRECT RELATIONSHIP WITH THE LARGE LOADS, UH, THAT MAY CHANGE IN THE NEAR, NEAR FUTURE, BUT, UH, AS OF RIGHT NOW, WE DON'T. 
          UH, AND SO WE HAVE THIS, HAVE THIS ISSUE WHERE WE ARE, UM, UH, JUST NOT ABLE TO, UH, COMMUNICATE DIRECTLY WITH THEM. 
          AND, AND SO THERE'S A LOT OF UNCERTAINTY WITH, UH, WHERE, UH, FOLKS ARE IN THE PROCESS. 
          UH, AND AS WE ARE MOVING TO THIS BATCH PROCESS, UH, THEN THAT AND UNCERTAINTY AND THE RISK OF THAT HAS HEIGHTENED FOR THE DEVELOPERS. 
          AND SO WE STOOD UP A NEW TEAM EARLIER THIS MONTH TO, UH, JUST INCREASE SUPPORT ON THAT. 
          AND THIS TEAM IS NOW PUTTING OUT A REPORT. 
          WE SENT THE FIRST ONE OF THESE REPORTS OUT, UH, LAST, UH, THURSDAY TO THE TSPS. 
          AND SO AGAIN, WE'RE, WE'RE STILL WORKING THROUGH THE TSPS, BUT, UH, AT LEAST THE TSPS WILL HAVE THIS SORT OF CHEAT SHEET OR DASHBOARD THAT THEY CAN LOOK AT, AND THEY CAN TELL THE LARGE LOADS, THIS IS WHERE ERCOT THINKS YOUR PROJECT IS AT. 
          AND WE CAN HAVE THAT CONVERSATION WITH THE TSPS. 
          IF THERE IS SOME INFORMATION THAT THEY THINK THAT WE ARE MISSING, THEN WE CAN HAVE THAT CONVERSATION WITH THEM AND THEY CAN LET US KNOW THAT. 
          AND, AND WE'RE ALSO PROVIDING, UH, WITH RESPECT TO THE DRAFT OF PICKER 1 45, WHICH, YOU KNOW, I'LL TALK ABOUT THAT MORE IN A MINUTE. 
          WE, WE CAN, UH, TELL THEM E EXACTLY WHERE WE THINK THAT THEY ARE WITH RESPECT TO THOSE, THOSE RULES ON THOSE PROJECTS. 
          AND I, I MADE UP THE, THE, UH, DATA ON THIS, UH, SHEET ON THE RIGHT, BUT THAT'S ESSENTIALLY WHAT IT LOOKS LIKE. 
          IT'S A, IT'S A, UH, LONG LIST, UM, UH, TABLE FORMAT THAT, UH, LISTS ALL OF THE PROJECTS AND, AND WHERE WE THINK THEY'RE AT. 
          UM, SO WHEN WE, UH, TALK ABOUT LARGE LOADS THAT OBVIOUSLY THE, THE HEADLINES RIGHT NOW ARE ABOUT THE BATCH STUDY, UH, BUT THERE ARE OTHER ISSUES THAT WE ARE WORKING ON FROM AN OPERATIONAL PERSPECTIVE, UH, OPERATIONAL RISKS THAT, UH, WE WANT TO MAKE SURE THAT WE ARE ADDRESSING. 
          UM, AND I THINK THAT THE BIG THREE RIGHT NOW ARE RIDE THROUGH OSCILLATIONS AND MODELING, UH, RIGHT RIDE THROUGH. 
          IS THAT WHEN YOU HAVE THAT DISTURBANCE ON THE GRID, YOU HAVE A LIGHTNING STRIKE, UH, AND, AND YOU HAVE THAT TEMPORARY VOLTAGE DIP, THEN DO THE LARGE LOADS TRIP OFF OR DO THEY STAY CONNECTED? UM, AND SO WE HAVE, UH, 2 82 AND NPR OF 1308. 
          UH, WE'VE GOT A SEPARATE PRESENTATION ON THOSE, UM, TOMORROW. 
          BUT, UH, THOSE, UH, HAVE BEEN ENDORSED, UM, AND, UH, BY THE SUBCOMMITTEE AT THE SUBCOMMITTEE LEVEL. 
          AND THEY'RE, THEY'RE TRACKING FOR JUNE BOARD VOTE. 
          UH, THE OSCILLATION ISSUE THAT THIS IS THE ISSUE WHERE, UH, AND PARTICULARLY YOU SEE THIS WITH THE AI TRAINING LOADS WHERE THE, THE CONSUMPTION VARIES, UM, AT, AT A PRETTY RAPID PACE AND CREATES THOSE OSCILLATIONS THAT CAN ACTUALLY DAMAGE EQUIPMENT ON THE GRID. 
          UH, AND SO WE ARE DEVELOPING REQUIREMENTS THAT ESSENTIALLY TELL THE LARGE LOADS, UH, DON'T DO THIS BEHAVIOR THAT WOULD CAUSE DAMAGE. 
          UH, AND, AND SO WE HAVE PRESENTED A DRAFT CONCEPT TO THE LARGE LOAD WORKING GROUP AND ARE WORKING ON, UH, WRITING A REVISION REQUEST THAT WE ARE AIMING FOR POSTING THIS QUARTER. 
          UH, AND THEN THE, THE LAST, UH, ISSUE HERE IS MODELING. 
          UH, AND THIS IS AROUND THE ISSUE OF THE DYNAMIC, UH, STABILITY MODELS AND THE INACCURACY THAT THAT IS NOW, I THINK PRETTY WELL KNOWN WITHIN INDUSTRY, THAT THE MODELS THAT CURRENTLY EXIST FOR THE, THE LARGE LOADS ARE, UM, NOT ADEQUATE FOR STUDYING THE, THE STABILITY IMPACTS OF THESE LOADS. 
          UM, SO WE HAVE A NUMBER, NUMBER OF INITIATIVES RELATED TO THAT. 
          UH, ONE IS WORKING WITH, UM, TEXAS A AND M ON DEVELOPING MORE ACCURATE MODELS. 
          UH, AND THEY, I THINK WE, WE HAD A PRESS RELEASE ON THIS THAT WE, UM, UH, HAVE DEVELOPED OR THEY'VE DEVELOPED A NEW CRYPTO MINING FACILITY MODEL, AND THEY'RE CURRENTLY WORKING ON A, UH, DATA CENTER MODEL. 
          UM, AND THEN WE ALSO ARE, UH, BELT AND SUSPENDERS APPROACH. 
          UH, WE'VE INTRODUCED, UH, P 1 44, WHICH IS, UH, INTRODUCES MODEL QUALITY, UH, REQUIREMENTS FOR LARGE LOADS. 
          SO THE LARGE LOADS, UM, TO, IN ORDER TO GO INTO THE INTERCONNECTION PROCESS AND, AND AS THINGS CHANGE IN THEIR FACILITIES, THEN THEY WOULD NEED TO, UH, RUN A SERIES OF 
          [01:25:01]
TESTS THAT WOULD ENSURE THAT THE MODEL MODEL THAT THEY ARE GIVING US, THAT IT MEETS CERTAIN QUALITY BENCHMARKS. 
          UM, AND SO WE SUBMITTED THAT INTO THE PROCESS IN FEBRUARY, AND THAT'S CURRENTLY WORKING THROUGH THE, UH, THAT STAKEHOLDER PROCESS. 
          UM, THIS IS A LITTLE DIFFERENT LOOK ON THE, UH, GENERATION AIR CONNECTION, UH, RESOURCES THAT, UH, THAN WHAT WE'VE SHOWN IN THE PAST. 
          UH, AND THIS IS, AS YOU GO LEFT TO RIGHT ON THE, UH, GRAPHIC HERE IS, IS KIND OF THE, UH, THE, THE PROCESS EARLIER IN THE PROCESS IS ON THE LEFT TO FINISHING THE PROCESS IS ON THE RIGHT. 
          UM, AND YOU CAN SEE HERE THAT, UH, MOST OF THE, UH, REQUESTS ARE IN WHAT WE CALL THE, THE FIS OR FULL INTER CONNECTION STUDY. 
          AND SO THIS IS WHERE THE TSPS ARE PERFORMING THE STUDIES FOR, UH, THOSE, UH, GENERATORS TO GET THOSE, UH, GENERATORS CONNECTED TO THE SYSTEM. 
          AND THEN, UM, DID TO THE, UH, QUESTION THE CO-LOCATED GENERATION. 
          UH, SO WE, WE DID SEE, UH, PARTICULARLY STARTING LATE LAST YEAR, WE'VE SEEN THIS TREND IN, UH, LARGE LOADS THAT ARE REQUESTING TO CONNECT CO-LOCATED WITH, UH, GENERATION, UH, IS AL ALSO CALLED, UH, BYOG, BRING YOUR OWN GENERATION. 
          UH, WE SAW, STARTED SEEING THIS TREND REALLY PICK UP LAST YEAR, AND THAT HAS CONTINUED INTO 2026. 
          SO THE GRAPHIC ON THE LEFT IS THE, UM, MEGAWATTS OF LOADS. 
          SO LOOKING AT IT FROM A LOAD PERSPECTIVE, HOW MANY LOADS, UH, AS THEY'RE GOING THROUGH NOW ARE REQUESTING TO BE, UM, CO-LOCATED WITH GENERATION. 
          AND, AND THEN IT'S THE SAME INFORMATION ON THE RIGHT, EXCEPT IT'S LOOKING AT IT FROM THE, UH, GENERATION SIDE. 
          SO, UH, IT IS, UH, PRIMARILY GAS GENERATION THAT, THAT THESE LOADS ARE LOOKING TO CO-LOCATE WITH, ALTHOUGH THERE ARE SOME THAT ARE, UM, LOOKING AT SOLAR AND WIND AND, UH, SOME BATTERY STORAGE AS WELL. 
          AND THIS IS JUST THROUGH, AND THIS IS JUST THROUGH FEBRUARY OR MARCH. 
          THIS WOULD BE, UM, I BELIEVE THIS IS THROUGH MARCH. 
          MARCH. 
          AND THEN, UH, JUST A QUICK UPDATE ON THE TEF PROJECTS. 
          UM, AGAIN, LEFT, LEFT TO RIGHT, UH, AND THIS IS SOMEWHAT OF A ZOOMED IN VIEW OF WHAT I SHOWED ON THE, THE PREVIOUS SLIDE. 
          I, I LEFT OUT THE, UH, THAT THEY'RE ALL, AT LEAST IN THE FULL INTER CONNECTION STUDY PHASE. 
          UH, AND SO THIS IS A LITTLE BIT OF A ZOOMED IN VIEW, BUT WE NOW HAVE TWO OF THOSE PROJECTS THAT HAVE BEEN APPROVED FOR, UM, SYNCHRONIZATION. 
          UM, AND THEN I'VE HAD A, A NUMBER OF REQUESTS, UH, OR QUESTIONS ABOUT THE, UH, ADVANCED GRID SUPPORT AND, AND WHERE WE'RE AT WITH IMPLEMENTING THAT. 
          UH, SO IF YOU RECALL IN SEPTEMBER OF LAST YEAR, THE BOARD, UM, ENDORSED NOER 2 72, WHICH WAS APPROVED BY THE COMMISSION IN NOVEMBER OF LAST YEAR. 
          AND THAT REALLY ESTABLISHED THE REQUIREMENTS FOR ALL NEW BATTERIES WITH INTERCONNECTIONS AGREEMENTS ON OR AFTER APRIL 1ST OF THIS YEAR WILL BE REQUIRED TO HAVE ADVANCED GRID SUPPORT, OTHERWISE KNOWN AS GRID FORMING INVERTERS. 
          UM, AND, UH, SO THAT, THAT THE APRIL 1ST DATE, OBVIOUSLY IT'S A, A RECENT CHANGE. 
          UH, SO RIGHT NOW WE DON'T HAVE ANY BATTERIES ON THE SYSTEM THAT HAVE THIS ADVANCED GRID SUPPORT CAPABILITY. 
          THERE IS ONE SMALL ONE THAT HAS, UH, SUBMITTED AN UPDATED MODEL, WHICH WOULD BE THE, THE FIRST STEP IN THE PROCESS FOR THEM TO BE ABLE TO IMPLEMENT THAT IS THEY FIRST HAVE TO SEND US A MODEL ON, ON WHAT THE CAPABILITY WOULD BE, UM, UH, BUT, UH, BUT NONE THAT ARE OPERATIONAL. 
          UM, AND SO THAT APRIL 1ST DATE, UH, WE HAVE, UH, OVER A LITTLE OVER 50,000 MEGAWATTS THAT ARE, ARE EITHER OPERATIONAL OR HAVE THEIR INTERCONNECTION AGREEMENT SIGNED BEFORE THAT APRIL 1ST DATE. 
          SO THOSE WOULD BE EXEMPT FROM BEING REQUIRED TO PROVIDE THE ADVANCED GRID SUPPORT. 
          BUT, UH, WE'VE GOT 152 GIGAWATTS OF THE, THE BATTERIES THAT ARE IN THE INTERCONNECTION PROCESS RIGHT NOW THAT, UH, DID NOT HAVE INTERCONNECTION AGREEMENT SIGNED BY APRIL 1ST. 
          AND SO ALL OF THOSE GOING FORWARD, IF, IF THEY, IF THEY DO MOVE FORWARD WITH THE PROJECT, THEN THOSE WOULD BE REQUIRED TO HAVE, UH, THE ADVANCED GRID SUPPORT. 
          AND THEN LAST THING I HAVE, UH, BY WAY OF UPDATES, UM, THAT'S NOT BATCH RELATED, IS ON NGER, UH, 2 45, UH, WHICH IF YOU REMEMBER, IS THE NGER THAT'S SET FORTH THE, UM, ADDITIONAL RIDE THROUGH REQUIREMENTS FOR IBR. 
          UH, AND SO WHERE WE ARE AT IS, UM, AND, AND ALSO PART OF THAT WAS, UM, UH, PROJECTS THAT, UH, DID NOT THINK THAT THEY COULD MEET THOSE REQUIREMENTS FULLY OR THAT NEEDED ADDITIONAL TIME, THEY COULD REQUEST AN EXEMPTION FROM THE REQUIREMENTS OR AN EXTENSION ON IMPLEMENTING THOSE REQUIREMENTS. 
          UM, SO 
          [01:30:01]
FAR WE'VE HAD, UM, UH, UH, SEVERAL HUNDRED PROJECTS THAT HAVE REQUESTED THAT 119 OF THOSE PROJECTS HAVE ACTUALLY, UH, WITHDRAWN, UH, OF THIS IBR HAVE WITHDRAWN THEIR EXTENSION OR EXEMPTION REQUESTS. 
          AND SO THEY INITIALLY SAID, WE'RE, WE'RE NOT SURE IF WE CAN MEET THIS, OR WE'RE NOT SURE WE CAN MEET IN TIME. 
          THEY HAVE GONE BACK, DONE SOME ADDITIONAL, UH, WORK AND HAVE SAID, ACTUALLY, WE THINK WE CAN MEET IT AND WE CAN MEET IT ON TIME. 
          UH, SO THOSE HAVE, UH, WITHDRAWN. 
          UH, WE HAVE, UM, HAD SOME THAT, UM, HAVE, UH, REQUESTED, UM, THIS, UH, EXEMPTION OR EXTENSION AND WE HAVE REVIEWED THEIR, UM, THEIR, UH, FILING WITH US AND IT HAD MISSING INFORMATION. 
          AND WE HAVE SENT THAT BACK A COUPLE OF TIMES SINCE WE'VE HAD, UH, 92 ACTUALLY SO FAR THAT EVEN AFTER TWO BACK AND FORTHS, THEY HAVE NOT BEEN ABLE TO, UH, GIVE US A COMPLETE, UM, UH, SUBMISSION. 
          AND MOST OF THOSE ARE PRIMARILY DUE TO, UM, THE, THE MODELS. 
          THEY'RE NOT ABLE TO GIVE US, UH, UH, MODELS TO SUPPORT, UH, WHAT THEIR, UH, REQUEST IS FOR. 
          UM, AND THEN, UH, WE HAVE HAD, UH, 29 THAT ARE KIND OF EARLY IN THE PROCESS. 
          SO WE'VE, THEY'VE GIVEN US THE REQUEST AND, AND WE'VE SENT THAT BACK TO THEM AND SORT OF WAITING, WE'RE WAITING FOR THEIR, UH, RESPONSE. 
          AND THEN, UM, 163 WE'VE RECEIVED THEIR, UH, REQUEST AND WE'RE CURRENTLY REVIEWING THOSE. 
          UM, I THINK MANY OF THOSE WE WILL, UH, MOVE ON TO THE NEXT STEP, WHICH WOULD BE IF THEY'RE, UH, PARTICULARLY IF THEY'RE ASKING FOR AN EXEMPTION, THERE'S A, A PROCESS THAT'S LAID OUT WHERE WE WOULD STUDY THE RELIABILITY IMPACT OF GRANTED THEM THAT EXEMPTION. 
          AND SO MANY OF THESE WILL ACTUALLY MOVE TO THAT, THAT NEXT STEP WHERE WE WILL DO THAT STUDY. 
          AND THAT STUDY IS EXPECTED TO KICK OFF, UM, UH, FIRST OF NEXT MONTH. 
          JEFF, WHAT DO YOU DO WITH THE 92, THE, THE 92 RIGHT NOW? SO, UM, FROM A COMPLIANCE STANDPOINT, I THINK WE TELL THEM THAT THEY HAVE, UM, NOT NOT MET THE REQUIREMENTS, AND SO WE ARE GOING TO DENY THEIR, UM, E EXEMPTION OR EXTENSION. 
          UH, BUT UM, YOU KNOW, OBVIOUSLY IF THEY COME BACK TO US NEXT MONTH AND THEY HAVE A GOOD MODEL, THEN WE'LL REVIEW THAT UNDER, I WOULD SAY KIND OF THE NORMAL PROCESS. 
          UM, BUT AS OF RIGHT NOW, WE HAVE, UM, YOU KNOW, ESSENTIALLY WE'RE GONNA CUT OFF AND THEY GOTTA RESUBMIT UNLESS THEY GET SOMETHING G IN BETWEEN, WHICH IS UNLIKELY. 
          YEAH, I THINK THAT'S RIGHT. 
          YEAH. 
          YOU DON'T KICK THEM OFF THE SYSTEM. 
          NO, NO. 
          YEAH, WE NOT PLANNING ON, UM, KICKING ANYONE OFF THE SYSTEM, BUT YOU KNOW, THEY, THEY WOULD BE AT THAT POINT, IF THEY CAN'T MEET THE REQUIREMENTS AND THEY HAVEN'T GIVEN US A VALID EXEMPTION REQUEST, THEN THEY WOULD BE OUT OF COMPLIANCE WITH THE REQUIREMENTS. 
          BILL WAS ASKING TOO, WHAT DOES THAT MEAN? WHAT IS THERE, IS THERE A PENALTY FOR BEING OUTTA COMPLIANCE? DO THEY HAVE TO GO BACK AT THE END OF THE LAW? YEAH, DEFINITELY DID. 
          I MET TRYING TO MY, UH, GENERAL COUNSEL HERE, MY FRIEND, AND SEE IF HE WANTS TO, YEAH, JUST RIGHT, SO WE'VE BEEN CLEAR THAT WE'RE GETTING TO THE POINT WHERE WE WORKED WITH HIM ENOUGH AND WE'RE NOT GETTING THE INFORMATION, SO WE'LL DENY THEIR REQUEST. 
          AS JEFF INDICATED, THAT DOESN'T MEAN WE'RE GONNA KICK 'EM OFF THE SYSTEM. 
          THEY NEED TO STILL GIVE US INFORMATION WHEN THEY GET IT. 
          OTHERWISE THEY HAVE A COMPLIANCE ISSUE, A COMPLIANCE ISSUE THAT ULTIMATELY THE PEC WILL HAVE TO HANDLE. 
          OKAY. 
          WHICH CAN, THEY CAN ASSESS FINES IF CORRECT. 
          THAT'S ONE OF THE WAYS IN WHICH THE PEC HAS THE ENFORCEMENT AUTHORITY AS ADMINISTRATIVE PENALTIES. 
          OKAY. 
          ALRIGHT. 
          ANY OTHER QUESTIONS BEFORE I MOVE TO BATCH UPDATE? ALRIGHT, WE'RE GONNA MOVE TO AGENDA ITEM 
          [9.1 Batch Study Update ]
9.1, THE BATCH STUDY UPDATE. 
          I, ALRIGHT, SO, UM, UH, A LOT HAS HAPPENED SINCE THE, UH, FEBRUARY, UH, BOARD MEETING. 
          UM, I ACTUALLY WENT BACK AND LOOKED AT THE PRESENTATION THAT I, I GAVE AT, AT THE FEBRUARY BOARD MEETING. 
          AND I DUNNO IF YOU'VE EVER LOOKED AT SOMETHING YOU WROTE LIKE 10 OR 20 YEARS AGO AND, AND CAN'T BELIEVE HOW RUDIMENTARY IT WAS AND, AND YOU KNOW, HOW, HOW MUCH YOU'VE MATURED SINCE THEN. 
          UH, BUT I, I HAD THAT FEELING, UH, LOOKING AT THE, THE PRESENTATION. 
          SO A LOT, A LOT HAS HAPPENED. 
          UM, AND, UH, I'M GOING TO ATTEMPT TO, UH, SUMMARIZE IT ON, ON ONE SLIDE THAT I FEEL LIKE THAT DOESN'T QUITE DO JUSTICE TO EVERYTHING THAT HAS HAPPENED. 
          UM, BUT, YOU KNOW, WE'LL, WE'LL TRY. 
          UM, SO, UM, WE'VE HAD A TOTAL OF SEVEN WORKSHOPS, SIX, SIX OF THEM SINCE THE, UH, THE, THE FEBRUARY BOARD MEETING, UM, AND, UH, JUST HAVE, HAVE A LOT OF GOOD, UH, DISCUSSION WITH, UH, STAKEHOLDERS AND, AND, UM, AND I DO SAY THAT IT WAS GOOD. 
          I THINK WE'VE GOTTEN A, A LOT OF GOOD, UH, FEEDBACK FROM STAKEHOLDERS AND, UH, HAVE MADE A LOT OF PROGRESS. 
          UM, WE, UM, SUBMITTED THE, 
          [01:35:01]
UH, SO AFTER HAVING THESE DISCUSSIONS, WE WORKED ON THE REVISION REQUEST AND SUBMITTED ON MARCH 4TH, UH, PICKER 1 45 AND NPR OF 1325, WHICH LAYOUT THE, UH, THE, THE BATCH ZERO STUDY PROCESS. 
          AND I'VE, I'VE GOT ANOTHER SLIDE THAT TELLS A LITTLE BIT MORE DETAILS ABOUT WHAT ARE IN, WHAT'S IN THOSE REVISION REQUESTS. 
          UM, UM, AND SO I'LL, I'LL GO THROUGH THAT IN A MINUTE. 
          UM, SINCE WE SUBMITTED THOSE, WE'VE HAD OVER 40 SETS OF STAKEHOLDER COMMENTS, UH, FILED ON PICKER 1 45. 
          UM, A LOT OF THE COMMENTS ARE, UH, AROUND THE ISSUES OF, UH, ELIGIBILITY CRITERIA, WHICH LARGE LOADS SHOULD BE INCLUDED IN BATCH ZERO, WHAT ARE THE FINANCIAL COMMITMENT REQUIREMENTS? AND ON THE STUDY PROCESS, I WOULD SAY THAT THE BULK OF THE COMMENTS ARE AROUND THOSE THREE ITEMS. UM, WE, UM, BASED ON THE FEEDBACK THAT WE'VE, UH, GOTTEN, WE HAVE SUBMITTED ADDITIONAL, UH, LANGUAGE REVISIONS ON MARCH 17TH AND AGAIN ON APRIL 4TH. 
          UM, AND THEN JUST LAST WEEK WE SUBMITTED, UM, ANOTHER SET OF, UM, LANGUAGE REVISIONS AROUND, UH, THIS, THE CONTROLLABLE LOAD RESOURCES. 
          I'LL, I'LL TALK ABOUT THAT A LITTLE BIT MORE IN A MINUTE. 
          UM, BUT WE, WE INITIALLY SUBMITTED, UH, OR, OR PRESENTED DRAFT LANGUAGE ON THE CONTROL BALL LOAD RESOURCES ON APRIL 9TH AT, AT THE WORKSHOP THAT WE HAD ON THAT DAY. 
          UH, AND THEN, UM, ON THE, UH, LAST FRIDAY WE SUBMITTED THE, THE LANGUAGE FORMALLY FOR STAKEHOLDER CONSIDERATION. 
          UM, AND THEN, UM, MORE RECENTLY, UH, UH, WE FILED A MEMO, UH, AND, UH, GAVE A PRESENTATION TO THE COMMISSION LAST WEEK ON, UM, SOME KEY ISSUES THAT, UH, AS WE WERE HAVING THESE DISCUSSIONS WITH STAKEHOLDERS, CERTAIN, CERTAIN KEY ISSUES THAT, UH, WE'RE, WE'RE SORT OF BUBBLING TO THE TOP, UH, THAT WERE A LITTLE BIT MORE POLICY NATURE, UH, QUESTIONS. 
          AND, AND SO WE, UM, UH, WENT TO THE COMMISSION LAST FRIDAY AND COMMISSION GAVE US SOME GOOD FEEDBACK. 
          AND SO WE'RE TAKING THAT AND, UH, UH, INCORPORATING THAT INTO SOME ADDITIONAL, UH, LANGUAGE REVISIONS, UH, THAT WE WILL PRESENT TO, UH, STAKEHOLDERS. 
          UH, SO JUST A, A LOT OF, UH, GOOD, GOOD PROGRESS WITH, UM, UH, STAKEHOLDERS HERE. 
          UH, SO ON, UH, P 1 45 ITSELF, UH, WHAT, WHAT, WHAT DOES IT DO? WHAT, WHAT, IF YOU LOOK AT THE, I THINK IT'S 40 SOMETHING PAGES RIGHT NOW. 
          WHAT, WHAT IS IN ALL THAT? IT, IT'S ESSENTIALLY THESE FIVE THINGS. 
          SO THE, THE FIRST IS THAT INCLUSION CRITERIA. 
          SO AGAIN, BATCH ZERO IS THIS TRANSITIONAL, UH, BATCH STUDY THAT WILL MOVE PROJECTS THAT ARE IN THE INTERCONNECTION PROCESS TODAY. 
          AND IT'S NOT ALL OF THE INTERCONNECTION PRO PROJECTS. 
          UM, YOU KNOW, AGAIN, THERE, THERE'S 400 SOMETHING GIGAWATTS THAT ARE IN THE PROCESS TODAY AT SOME POINT. 
          UH, BUT IT IS, THOSE PROJECTS THAT HAVE COM ARE CLOSER TO COMPLETING THAT PROCESS. 
          UH, THOSE ARE THE ONES THAT WE WANT TO INCLUDE AND BATCH THROUGH. 
          AND SO, SO PICKER 1 45 LAYS OUT WHAT, WHAT ARE THE ELIGIBILITY CRITERIA FOR LOADS TO QUALIFY TO BE INCLUDED IN BATCH ZERO? UH, AND THEN IT, IT, UM, DESCRIBES THE STUDY ITSELF. 
          WHAT, WHAT IS THIS STUDY THAT IS GOING TO ALLOCATE IS GONNA STUDY THE RELIABILITY IMPACT OF EACH OF THOSE LOADS THAT ARE INCLUDED, AND WHAT IS, UH, HOW ARE WE GONNA ALLOCATE THE MEGAWATTS TO THOSE, UH, LOADS? UH, AND SO THAT'S IN THE LAY DOWN IN THE STUDY PROCESS. 
          AND, AND THEN AT THE END OF THE STUDY, THERE IS A COMMITMENT WINDOW IN WHICH THE DEVELOPERS WILL NEED TO DECIDE BASED ON THE RESULTS OF THAT STUDY, IF THEY WANT TO MOVE FORWARD WITH THEIR PROJECT, AND THEY'RE GOING TO HAVE TO, UH, MEET CERTAIN COMMITMENT, UH, REQUIREMENTS. 
          AND THEN BASED ON THE LOADS, AND, AND THE FOURTH THING HERE, BASED ON THE LOADS THAT HAVE COMMITTED, THEN WE WILL REFINE THE TRANSMISSION PLAN THAT THAT CAME OUT SO THAT THE STUDY WAS GOING TO LOOK AT WHAT TRANSMISSION IS NEEDED TO SERVE THESE LOADS. 
          UH, BUT BASED ON THE LOADS THAT ACTUALLY COMMIT, THEN WE WILL REFINE THAT TRANSMISSION PLAN, UH, TO MAKE SURE THAT WE'RE RIGHT SIZING THAT TRANSMISSION PLAN FOR THE LOADS THAT HAVE COMMITTED. 
          AND, AND THEN FINALLY WE WILL TAKE THAT TRANSMISSION PLAN AND WE WILL PROCESS IT ON AN EXPEDITED MANNER THROUGH THE, UH, REGIONAL PLANNING GROUP PROCESS. 
          UH, AND THE IDEA THERE IS THAT, YOU KNOW, NOR NORMALLY, SO YOU, YOU HAD CHRISY EARLIER WHERE SHE PRESENTED, UH, THE ERCOT INDEPENDENT REVIEW OF, UH, A COUPLE OF THOSE TRANSMISSION PROJECTS THAT, THAT HAVE GONE THROUGH THE PROCESS. 
          UM, THE IDEA HERE IS THAT IF ERCOT IS PERFORMING THE BATCH STUDY AND THE REFINEMENT STUDY, THEN THAT STUDY CAN ALSO SERVE AS ERCOT INDEPENDENT REVIEW OF THOSE PROJECTS. 
          SO THEY DON'T, YOU DON'T HAVE TO HAVE EXTRA TIME FOR IT TO GO THROUGH ANOTHER STUDY PROCESS BECAUSE WE'VE ALREADY STUDIED IT AS, AS PART OF THE BATCH STUDY. 
          SO IN, IN A WAY, IT SORT OF EXPEDITES THE PROCESS FOR GETTING THOSE TRANSMISSION PROJECTS MOVING THROUGH THE SYSTEM. 
          HEY, JEFF, CAN YOU, IN READER'S DIGEST VERSION EXPLAIN WHAT YOU WERE DOING WITH BATCH? I THINK I UNDERSTAND WHAT YOU'RE SAYING WITH BATCH ZERO, BUT THEN DOES THAT BECOME THE REGULAR DEFINED PROCESS GOING FORWARD THAT'S 
          [01:40:01]
PREDICTABLE AND THAT STAKEHOLDERS CAN UNDERSTAND WHAT THE SPECIFIC TIMING AND REQUIREMENTS ARE? BECAUSE IT'S SEEMS LIKE A LITTLE, IT'S BEEN A LITTLE BIT OF A MOVING TARGET. 
          YEAH, SO, UH, I I WOULD SAY, UM, MAYBE DESCRIBE IT THIS WAY IS, SO WE HAVE THIS CURRENT PROCESS TODAY WHERE EACH LOAD GOES THROUGH AND IS STUDIED INDIVIDUALLY. 
          UH, THAT PROCESS IS GOING TO BE REPLACED BY, UH, AN ONGOING BATCH. 
          SO WHEN YOU THINK ABOUT 20 27, 20 28, YOU KNOW, GOING FORWARD, WE'RE GOING TO, INSTEAD OF STUDYING THOSE PROJECTS INDIVIDUALLY, WE'RE WE'RE GOING TO GROUP THEM TOGETHER AND WE'RE GOING TO STUDY THEM IN BATCHES GOING FORWARD. 
          BATCH ZERO IS THIS TRANSITION WHERE WE HAVE PROJECTS THAT HAVE STARTED THE OLD PROCESS, STARTED THE INDIVIDUAL, BUT WE NEED TO FIND A WAY TO GET THEM PROCESSED THROUGH SO THAT WE CAN TRANSITION TO THIS ONGOING BASH THING. 
          SO BA BATCH ZERO IS GOING TO LOOK A A LITTLE DIFFERENT FROM THIS, THE ONGOING PROCESS. 
          IT, IT IS REALLY THIS, UH, SORT OF INTERMEDIATE, WE, WE NEED TO, TO, UH, YOU KNOW, DO THIS TRANSITION. 
          SO THERE'S SOME DIFFERENCES I THINK THAT YOU'LL SEE WITH, UH, THE ONGOING BASH THAN WHAT WE'RE DESCRIBING HERE IN BATCH ONE, THAT THE OVERALL FRAMEWORK IS THE SAME. 
          BUT, UM, I THINK GOING FORWARD, UH, YOU KNOW, AS AN EXAMPLE, I MENTIONED THAT, UH, WE'VE HEARD THIS PAIN POINT FROM DEVELOPERS WHERE THE, THE COMMUNICATION IS NOT GOOD. 
          YOU KNOW, THEY, THEY, THEY DON'T GO DIRECTLY TO ERCOT. 
          THEY, THEY GO THROUGH THE TSP, AND SOMETIMES IT'S A BIT LIKE THE TELEPHONE GAME, I THINK IN THE ONGOING BATCH. 
          WHAT YOU WILL SEE IS THAT, UH, WE WILL HAVE A PROCESS WHERE THE DEVELOPERS, YOU KNOW, HAVE A PORTAL THAT THEY CAN LOG INTO IN, IN ERCOT THAT THEY WILL HAVE A, A DIRECT COMMUNICATION, UH, ERCOT, ERCOT WILL, WILL, UM, COORDINATE SIMILAR TO HOW WE DO GENERATION INTERCONNECTION TODAY, WHERE, WHERE WE ARE COORDINATING THAT, THAT WHOLE STUDY PROCESS. 
          UH, AND SO WE, WE DON'T HAVE THAT IN PLACE RIGHT NOW BECAUSE, YOU KNOW, AGAIN, BATCH ZERO IS ALL OF FOR THE PROJECTS THAT ARE, YOU KNOW, ALREADY SOMEWHERE IN THE PROCESS. 
          AND SO, AS AN EXAMPLE, YOU, YOU WON'T HAVE THAT SET UP FOR BATCH ZERO, BUT WE WILL HAVE THAT SET UP FOR, UH, BATCH ONE. 
          AND GOING FORWARD, I, I THINK WE'LL ALSO LOOK AT, UH, BETTER IN INTEGRATING THE BATCH PROCESS WITH THE, THE EXISTING TRANSMISSION PLANNING PROCESSES, UH, THAT WE HAVE SOME IDEAS ON, ON HOW THAT'S GONNA WORK BETTER. 
          AND, AND THERE ARE CERTAIN DETAILS. 
          UH, I THINK ALSO BECAUSE WE'RE GOING THROUGH THIS TRANSITION, THERE'S INFORMATION THAT WE DON'T HAVE TIME TO, TO REALLY GATHER FROM THE LOADS. 
          BUT GOING FORWARD, I, I THINK WE'LL NEED TO INCORPORATE THAT INTO BATCH ONE AND, AND, AND FORWARD. 
          WELL, THANK YOU FOR YOUR LEADERSHIP ON IT. 
          'CAUSE IT CLEARLY NEEDS TO BE KIND OF STREAMLINED AND CLEANED UP. 
          SO YEAH, APPRECIATE IT. 
          I'M MAKE THE SAME COMMENT I MADE ON THE CALL THE OTHER DAY, AND THAT IS THE ONE FLAW I SEE IN THIS IS THAT IT DOES NOT, IT'S TRANSMISSION ONLY, IT DOES NOT INCLUDE GENERATION. 
          SO AT LEAST IN THEORY, YOU COULD APPROVE SOMETHING WITH, BASED ON THE TRANSMISSION PLAN AND END UP NOT HAVING SUFFICIENT GENERATION TO ACTUALLY SATISFY THAT. 
          AND SO IT GETS BACK TO THE RELIABILITY STANDARD STUFF THAT WE TALKED ABOUT WITH WOODY. 
          SO THAT, THAT'S, THAT'S, I, I THINK A BIG POTENTIAL PROBLEM PARTICULARLY WE'VE GOT SINCE WE'VE GOT A LARGE INFLUX OF LOAD COMING INTO THIS PROCESS. 
          YEAH, JOHN AND, AND I, THE, I JUMPED AHEAD TO THE LAST SLIDE, UM, BUT I THINK YOU'RE, YOU'RE RIGHT IN THE SENSE THAT BASH STUDY IN, IN THE CURRENT LARGE LOAD INTERCONNECTION PROCESS, IT, IT IS DESIGNED REALLY TO LOOK AT TRANSMISSION ONLY. 
          WHAT, WHAT IS THE TRANSMISSION NEEDED TO SERVE THIS LOAD? WE, WE STILL NEED GENERATION TO SERVE THE LOAD. 
          UH, BUT THAT, THAT'S REALLY OUTSIDE OF THAT INTERCONNECTION STUDY PROCESS. 
          THAT IS, UH, MORE, UH, YOU KNOW, AGAIN, THAT RELIABILITY ASSESSMENT THAT, THAT CHRISTIE TALKED ABOUT, I THINK THAT, THAT THAT IS THE MECHANISM THAT, THAT'S THE TYPE OF ANALYSIS THAT WE'LL BE USING TO ADDRESS THAT PART OF THE EQUATION. 
          I UNDERSTAND, BUT I THINK IT WOULD NOT BE UNREASONABLE TO EXPECT THAT THESE LOADS ARE GONNA EXPECT THAT WHEN THEY GET CONNECTED TO TRANSMISSION, THAT THEY'RE ACTUALLY GONNA HAVE SOMETHING TO ACTUALLY SHIP THE ELECTRONS TO THEM. 
          ABSOLUTELY. 
          JEFF, JEFF, COULD YOU EXPLAIN FOLLOWING UP ON THAT A LITTLE BIT, UH, HOW THE RELIABILITY STUDY WILL WORK WITH THE BATCH STUDY? YEAH, SO, UM, IN, IN RELIABILITY ASSESSMENT, YEAH. 
          SO IN A LOT OF WAYS THEY ARE SEPARATE BECAUSE, UM, TRANSMISSION, UH, ANALYSIS, I THINK INHERENTLY YOU HAVE TO MAKE GENERATION IN ASSUMPTIONS FOR THAT. 
          UH, AND, AND SO TYPICALLY WHEN WE DO ANY TRANSMISSION ANALYSIS, WHETHER IT'S FOR AN RPG PROJECT OR YOU'RE, YOU'RE LOOKING AT WHAT, WHAT IS THE RELIABILITY IMPACT OF THIS LARGE LOAD CONNECTING TO THIS LOCAL TRANSMISSION SYSTEM? IT, IT'S, YOU'RE, YOU'RE NOT LOOKING AT THAT FROM A RESOURCE ADEQUACY PERSPECTIVE, BUT MORE WHAT, WHAT ARE THE, WHAT'S THE CAPABILITY OF THE WIRES TO, TO GET THE POWER TO THIS LOAD? UM, BUT WE, WE RECOGNIZE THAT WE ALSO NEED TO ANALYZE THAT RESOURCE ADEQUACY 
          [01:45:01]
COMPONENT OF THAT. 
          AND SO THAT'S WHERE THE, THE RESOURCE ADEQUACY STUDY COMES IN. 
          AND, AND IF YOU, UM, LOOK AT, I'LL JUMP BACK AHEAD HERE. 
          SO, SO IF YOU LOOK AT, YOU KNOW, WHAT THAT, UM, THAT THAT PROCESS THAT CHRISTIE LAID OUT, WHAT, WHAT IT IS DOING IS WHEN WE DO THAT ASSESSMENT LATER THIS YEAR, UM, WE WE'RE GONNA GET THE RESULTS BACK. 
          AND THEN, UH, AS ON THE SCHEDULE, NOW IT'S, IT'S OCTOBER TO DECEMBER THAT MAY SLIP BASED ON THE, UM, UPDATE TO THE FORECAST. 
          BUT, UH, BUT IT IS BASED ON THOSE RESULTS IS ARE THERE ACTIONS THAT NEED TO BE TAKEN TO ADDRESS THAT PART OF THAT? UH, AND THAT'S WHERE WE WOULD WORK WITH THE COMMISSION ON ANY TYPE OF, UH, IF, IF THE RESULTS DON'T LOOK FAVORABLE, THEN IS THERE ANYTHING THAT WE NEED TO DO? AND I WAS JUST GONNA ADD TO JEFF'S RESPONSE. 
          IT REALLY IS KIND OF TWO INDEPENDENT INPUTS THAT HAVE TO BE LOOKED AT AND EVALUATED WITH TWO DIFFERENT PROCESS TRACKS THAT FOLLOW FROM EACH OF THEM. 
          SO THE INTERCONNECTION STUDY PROCESS IS GONNA TELL YOU THE TRANSMISSION SYSTEM THAT NEEDS TO BE BUILT TO SERVE EXPECTED LOAD. 
          THE RELIABILITY ASSESSMENT IS GOING TO EVALUATE WHETHER RESOURCE ADEQUACY CONCERNS EXIST AT VARYING POINTS IN TIME OVER FUTURE PERIOD. 
          THE TWO OF THEM CAN BE LOOKED AT SIDE BY SIDE. 
          AND THEN THE PATH ON THE RELIABILITY ASSESSMENT WOULD BE, OKAY, WHAT KIND OF MARKET INCENTIVES OR OTHER ACTIONS ARE NEEDED IN ORDER TO DEAL WITH THE RESOURCE ADEQUACY QUESTION. 
          THIS ONE IS CLEARLY JUST LOOKING AT WHAT ARE THE TRANSMISSION SYSTEM INVESTMENTS THAT NEED TO BE MADE TO BE ABLE TO CONNECT ALL OF THIS LOAD AND SERVE ALL THIS LOAD. 
          SO IT REALLY IS ALMOST TWO INDEPENDENT, COMPLETELY INDEPENDENT STUDIES THAT HAVE COMMON STUDY ELEMENTS LIKE THE AMOUNT OF LOAD THAT'S EXPECTED TO COME, UH, THE UNDERLYING TRANSMISSION SYSTEM THAT'S THERE TO SERVE IT. 
          THOSE UNDERLYING ASSUMPTIONS ARE ON BOTH STUDIES, BUT THEY ARE REALLY TWO INDEPENDENT, UM, ACTIONS. 
          I HAVE A FOLLOW ON QUESTION. 
          I CAN UNDERSTAND THE, HISTORICALLY THESE HAVE BEEN TWO PATHS, TWO PLANNING PATHS, AND WE'RE, WE'RE KEEPING WITH THAT HISTORICAL NORM. 
          I'M FINE WITH THAT. 
          BUT WHAT I'M TRYING TO UNDERSTAND FROM JEFF OR SOMEONE IN THE AUDIENCE IS AT THE END OF BATCH ZERO, WHEN WE'RE DONE CONTEMPLATING THE TRANSMISSION NEEDS FOR BATCH ZERO, WE EXIT BATCH ZERO AND THERE'S NOT ENOUGH RESOURCE ADEQUACY. 
          WHAT HAPPENS AT THAT POINT? WHAT IS CONTEMPLATED OR ENVISIONED AT THE END OF BATCH ZERO? SO AT THE END OF BATCH ZERO, THE ASSUMPTIONS THAT GO INTO BATCH ZERO ARE GONNA BE SIMILAR ASSUMPTIONS THAT GO INTO THE RELIABILITY ASSESSMENT. 
          SO THE LOAD NUMBERS ARE THAT COMMON, THAT COMMON ELEMENT. 
          SO THEN IF THE RESOURCE, THE RELIABILITY ASSESSMENT SHOWS A RESOURCE GAP IN THE FUTURE, THEN WHAT HAPPENS AT THE END OF BATCH ZERO AND AT THE END OF THE BATCH STUDY IS THAT A TRANSMISSION PLAN TO DEVELOP TRANSMISSION TO SERVE THE LOAD IS EXECUTED. 
          AND THEN A, UH, MARKET DESIGN ADJUSTMENT IS MADE TO ENSURE THAT ADEQUATE RESOURCES GET DEVELOPED TO SERVE THAT LOAD. 
          SO BATCH I CAN UNDERSTAND THAT. 
          HOWEVER, AT THE END OF BATCH ZERO, MAYBE 75% OF THE RESOURCE ADEQUACY IS THERE AND 25% IS NOT. 
          IS ANYONE CONTEMPLATING WHO GETS THE RESOURCES AVAILABLE AT THAT POINT IN TIME? THERE'S NOT REALLY ANY ALLOCATION OF SUPPLY RESOURCES. 
          THERE'S REALLY ONLY ALLOCATION OF TRANSMISSION RESOURCES, RESOURCE ADEQUACY DOESN'T GET AQUA UH, UH, ALLOCATED. 
          SO THAT'S, THAT IS NOT A, ANYTHING THAT THE SYSTEM OPERATOR CAN ALLOCATE. 
          I UNDERSTAND, BUT THAT MAY BE THE REALITY OF WHAT WE DO WELL, YEAH, WHICH WOULD THEN LEAD TO CURTAILMENT REQUIREMENTS. 
          SO WHEN THE SYSTEM GETS SHORT, THEN YOU HAVE TO EXERCISE THE SENATE BILL SIX CURTAILMENT PROVISIONS, AND YOU NEED TO, WITH REDUCE DEMAND, THAT'S DONE ON A FIRST ON THE DATA CENTER, YOU KNOW, COMMUNITY, WHICH IS THE FIRST IN THAT KIND OF SEQUENCE. 
          AND THEN IF THAT'S NOT ADEQUATE, THEN IT MOVES ON TO OTHER CUSTOMER GROUPS. 
          YEAH. 
          AND KEEP IN MIND, YOU'RE LOOKING AT 8,760 SOLUTIONS IN A, IN A YEAR. 
          SOME OF 'EM WILL BE JUST FINE. 
          SO THE 80, THE 75 25 SPLIT YOU TALKED ABOUT MAY ONLY APPLY TO A FEW HOURS. 
          THE REST OF THE HOURS MAY BE FINE. 
          'CAUSE THERE'S PLENTY OF WIND, PLENTY OF SOLAR, NO THERMAL OUTAGES. 
          AND SO THE RELIABILITY STANDARD WILL THEN INFORM US HOW MANY OF THOSE HOURS ARE 75, 25 SITUATION. 
          SO THAT'S HOW THEY FIT TOGETHER. 
          UH, PABLO, ONE OTHER QUESTION ON THIS SPLIT, YOU KNOW, PATHWAY. 
          IF, UH, YOU KNOW, IF A LARGE LOAD, UH, APPLICATION COMES WITH GENERATION, WOULDN'T THAT, WOULDN'T THAT GIVE IT SOME SORT OF PRIORITY IN THE BATCH SERIAL PROCESS? BUT, BUT WE'RE SAYING WE'RE TRYING TO KEEP GENERATION, YOU KNOW, BECAUSE THE LIABILITY IS SEPARATE. 
          ISN'T THAT SOMETHING 
          [01:50:01]
WE WOULD WANT TO INCENTIVIZE? IT ABSOLUTELY IS. 
          AND AND THAT'S SOMETHING WE ARE CONSIDERING. 
          I SEE THAT JEFF HAS PULLED UP A SLIDE THAT ADDRESSES TWO DIFFERENT PROVISIONS, OR THIS IS ONE OF THEM. 
          THERE ARE TWO PROVISIONS WE'RE LOOKING AT THAT WOULD FACILITATE A LARGE LOADS ACCESS TO THE TRANSMISSION SYSTEM. 
          ONE OF THEM IS BRINGING ITS OWN GENERATION, AND ANOTHER ONE IS BEING A FLEXIBLE RESOURCE IN TERMS OF HOW MUCH DEMAND IT PULLS. 
          JEFF, JEFF, DO YOU WANNA EXPLAIN, UH, THIS APPROACH? YEAH, YEAH. 
          MAY, MAYBE I'LL START HERE WITH THE, THE FLEXIBLE, UH, LOAD. 
          SO, UM, AGAIN, WHEN, WHEN WE TALKED TO THE DEVELOPERS BACK IN JANUARY, WE HAD IN INDIVIDUAL MEETINGS WITH THEM, AND THERE WAS A LOT OF INTEREST. 
          IT, IT'S NOT UNIVERSAL, IT'S NOT EVERY DEVELOPER, BUT THERE WAS A LOT OF INTEREST IN BOTH OF THESE CONCEPTS OF A DISPATCHABLE LOAD AND A CO-LOCATED BRI BRING YOUR OWN GENERATION CONSTRUCT. 
          UM, AND, AND SO THE IDEA ON THE DISPATCHABLE LOAD IS THAT, UM, IT, IF THE, MAYBE THE TRANSMISSION SYSTEM IN, IN THIS EXAMPLE HERE, UH, IN YEAR ONE, THEY WANT TO BUILD 150 MEGAWATTS OF LOAD, BUT THE TRANSMISSION SYSTEM CAN ONLY RELIABLY HANDLE 100 MEGAWATTS OF THAT. 
          UH, THEN IN, IN, IF THEY ELECT TO HAVE THIS, UH, TYPE OF ARRANGEMENT, THEN THEY CAN CONNECT THE FULL 150 MEGAWATTS. 
          UH, BUT UNDERSTAND THAT, YOU KNOW, AGAIN, TO, TO WOODY'S POINT, THE, THE 87 60, IT MAY ONLY BE A FEW HOURS WHERE WE HAVE TO LIMIT THEM TO THE A HUNDRED MEGAWATTS, BUT THEY CAN BE DISPATCHABLE WHEN, WHEN WE HAVE THOSE TIGHT TIMES ON THE GRID WHERE THEY, THEY CAN MOVE DOWN TO THAT 100 MEGAWATTS, THE, THE REST OF THE YEAR, THEY, THEY CAN CONSUME THE FULL 150 MEGAWATTS. 
          UM, AND, AND THAT THAT CAN INCREASE OVER TIME. 
          UH, AND SO THERE ARE CERTAIN, UM, UH, REQUIREMENTS THAT THEY WOULD NEED TO MEET TO BE ABLE TO PROVE TO US THAT, THAT THEY CAN MOVE THEIR LOAD UP AND DOWN. 
          UH, BUT THIS IS A CONCEPT THAT, UH, I'LL SAY A LOT OF STAKEHOLDERS, SEVERAL STAKEHOLDERS HAVE EXPRESSED A LOT OF INTEREST IN THIS AND, AND ARE REALLY EXCITED ABOUT THIS. 
          AND SO THE RULES FOR THIS, UH, WE FORMALLY PUT THE LANGUAGE OUT LAST WEEK AS PART OF FIGURE 1 45 AND ARE EXPECTING, UM, STAKEHOLDER FEEDBACK ON THAT THIS WEEK. 
          UM, AND THEN THE, THE OTHER MENTIONED IS THE, UH, THE BYOG. 
          UH, AND, AND AGAIN, THE IDEA IS THAT IF, UH, IF THE TRANSMISSION SYSTEM CANNOT FULLY SUPPORT THAT LOAD, UH, BY ITSELF, THEN IF THE, IF THEY'RE BRINGING GENERATION WITH THEM, THEN WE WOULD GIVE THEM THROUGH THE BATCH PROCESS, WE WOULD GIVE THEM CREDIT FOR THAT GENERATION THAT THEY'RE BRINGING. 
          AND, AND SO WE ARE, UM, IT WAS ACTUALLY, UH, WALKED BY THE CONFERENCE ROOM EARLIER AND, AND THERE WAS, UH, SEVERAL PEOPLE THAT ARE HUDDLED IN A ROOM THAT ARE TRYING TO FIGURE OUT HOW TO WRITE THE, THE RULES AROUND THIS. 
          AND, AND SO WE HAVEN'T PUT LANGUAGE OUT ON THIS YET, UH, BUT THIS IS, UH, ANOTHER IDEA THAT WE'RE, WE'RE, UM, FEVERISHLY WORKING ON TO TRY TO GET THOSE, UH, RULES SO THAT WE CAN HAVE THOSE IN TIME FOR BACHELOR. 
          UH, AND THE IDEA WOULD BE TO TRY TO ROLL THAT OUT, UH, TO STAKEHOLDERS. 
          WE'RE, WE'RE GONNA, UH, THIS WEEK ON, UM, THURSDAY, UH, THERE'S A, A RELIABILITY AND OPERATIONS SUBCOMMITTEE MEETING THAT WE'RE GONNA BE TALKING IN MORE DEPTH ABOUT THIS CONCEPT WITH THE STAKEHOLDERS AND, AND TRY TO NARROW DOWN SO WE CAN GET THAT LANGUAGE WRITTEN. 
          WOODY, DO YOU HAVE A COMMENT? YEAH. 
          SO BRINGING YOUR OWN GENERATION IS BASICALLY A NET ZERO IMPACT TO THE GRID. 
          THAT'S GONNA BE DIFFERENT THAN IF YOU BRING YOUR LOAD AND CO-LOCATE WITH AN EXISTING GENERATOR. 
          AND SO YOU SHOULDN'T CONFUSE THOSE TWO THINGS. 
          CO-LOCATING WITH AN EXISTING GENERATOR HAS AN IMPACT ON THE GRID. 
          MM-HMM . 
          BRINGING YOUR OWN GENERATION CAN BE A NET ZERO IMPACT TO THE GRID. 
          SO THAT'S, THERE, THERE IS A DIFFERENCE THERE. 
          JEFF, WOULD YOU GO BACK TO YOUR RELIABILITY ASSESSMENT SLIDE? OKAY. 
          RIGHT THERE. 
          SO WHERE DO YOU DROP IN THE IMPACT OF BATCH ZERO LOAD IN HERE? YEAH, SO, UM, SO THE, THE OUTPUT OF BATCH ZERO WILL NOT BE KNOWN UNTIL AFTER THIS ASSESSMENT. 
          UH, SO I THINK THAT'S WHERE THE, UH, THE, THE, AND CHRISTIE TALKED ABOUT THE LOAD FORECAST AND THE IMPORTANCE OF WORKING WITH THE COMMISSION STAFF ON, UH, UPDATING THAT LOAD FORECAST THAT GOES INTO THIS ASSESSMENT, UH, THAT I THINK THAT'S GONNA BE IMPORTANT FOR PERFORMING THE ASSESSMENT. 
          OKAY. 
          SO REALLY YOU'VE GOT TWO, I GUESS YOU'VE GOT TWO ASSUMPTIONS YOU'RE MAKING. 
          ONE IS YOU'RE MAKING AN ASSUMPTION REGARDING LOAD FOR THIS PURPOSE, RIGHT? AND THEN ON THE, UH, LOAD SIDE, WE'RE MAKING AN ASSUMPTION THAT, THAT THE, UH, RELIABILITY ASSESSMENT WILL BRING THE GENERATION THAT'S REQUIRED TO PRODUCE THE ELECTRONS TO SERVE THAT LOAD. 
          [01:55:01]
OKAY. 
          YES. 
          YEAH. 
          AND MAYBE JUST ONE, ONE OTHER NOTE ON THAT IS, UM, OR ONE OTHER THOUGHT IS, UH, AND, AND I'VE HEARD THIS FROM A NUMBER OF STAKEHOLDERS, IS THAT WHEN BATCH ZERO, WHEN, WHEN WE GET TO THE END OF BATCH ZERO IN THAT STUDY, UM, THE, THE CURRENT PROCESS THERE IS THIS UNCERTAINTY BECAUSE WE, WE'VE, WE'VE TALKED ABOUT IT BEFORE WHERE YOU HAVE THIS, THE, THE LOADS ARE HAVING TO GO THROUGH UD AND THAT PRODUCES RISK FOR THE DEVELOPERS. 
          IF AT THE END OF BATCH ZERO, UH, WE HAVE A STUDY AND IT IS A, UH, BLACK AND WHITE, THESE ARE THE MEGAWATTS THAT YOU CAN, UM, BE ALLOCATED ON THE SYSTEM BY YEAR. 
          AND THERE IS A, UM, A RELATIVELY HIGH FINANCIAL COMMITMENT THRESHOLD THAT, THAT THE COMMISSION HAS INDICATED THAT, THAT THEY ARE, UH, DESIRING TO PUT IN PLACE FOR LOADS TO, TO BE ABLE TO COMMIT. 
          UH, THAT IS A VERY STRONG SIGNAL TO GENERATION IN THE MARKET THAT THIS LOAD IS GOING TO SHOW UP. 
          AND SO I THINK WE, WE'VE HEARD FROM NUMBER OF STAKEHOLDERS THAT THAT, THAT THAT IS GOING TO BE AN IMPORTANT SIGNAL FOR THEM TO, TO BUILD THE GENERATION THAT'S NEEDED. 
          BUT JEFF, WE, WE WON'T KNOW THAT UNTIL AFTER THE FIRST OF THE YEAR ON, ON THE BATCH ZERO. 
          THAT'S RIGHT. 
          CORRECT. 
          AND THE, AND THE OTHER PROBLEM IS, OF COURSE, IT TAKES FIVE YEARS TO BUILD GENERATION. 
          OKAY. 
          UM, I HAVE TWO SLIDES ON, UH, TIMELINE. 
          THIS ONE IS FOCUSED ON THE BATCH ZERO TIMELINE AND, AND WHERE WE'RE AT WITH, WITH THAT. 
          UM, UH, SO WE'VE BEEN PRESENTING A, A VERSION OF THIS SLIDE, UH, SINCE FEBRUARY. 
          UM, BUT THIS SHOWS KIND OF WHERE, WHERE WE HAVE BEEN WITH THE WORKSHOPS, AND AS REBECCA NOTED EARLIER, UH, WE HAVE TRANSITIONED TO, UH, FROM KINDA A WORKSHOP FORMAT TO MORE, UH, THE STAKEHOLDER FORMAT, WHICH IS WHERE THE, THE VOTING BODIES ARE FOR THESE, UH, THESE REVISION REQUESTS. 
          SO, UH, SPECIFICALLY IT'S, IT'S PRS FOR NPR 1325 AND ROS FOR P 1 45. 
          UH, BOTH OF THOSE HAVE SPECIAL MEETINGS THIS WEEK. 
          SO WEDNESDAY AND THURSDAY WE'LL BE, UH, MEETING WITH THOSE GROUPS, UM, TO, TO WALK, WALK THROUGH THE REVISION REQUESTS. 
          WE, WE WALKED THROUGH THEM LAST WEEK. 
          WE'RE, WE'RE GONNA HAVE MORE IN DEPTH DISCUSSION THIS WEEK. 
          UM, AND THEN WE ARE EXPECTING THE FIRST WEEK OF MAY THAT BOTH OF THOSE BODIES WILL VOTE ON THE, UH, RESPECTIVE REVISION REQUEST. 
          UM, AND THEN, UH, THAT WILL THEN TAKE US TO A SPECIAL ATTACK MEETING, UH, ON THE 13TH TO WALK, WALK THROUGH, UH, BOTH THE REVISION REQUEST, UH, JUST PROVIDE THE OVERVIEW, HAVE, HAVE THE DISCUSSION, AND THEN, UH, GET A VOTE, UH, BY THE FEBRUARY 20TH TAC MEETING. 
          UH, AND THAT PUTS US, UM, AT THE JUNE ONE BOARD MEETING FOR, UH, BOARD ENDORSEMENT. 
          UM, AND THEN THAT WOULD, UH, ALLOW US TO, UM, UH, IMPLEMENT THE, UH, BACHELORS STARTING IN JULY. 
          UH, SO THAT'S BATCH ZERO, BUT, UM, AS WE MENTIONED, UH, WE'RE NOT STOPPING AT BATCH ZERO. 
          WE HAVE TO IMPLEMENT THE ONGOING BATCH PROCESS. 
          UM, AND, AND WE'VE HAD SOME CONCEPTUAL DISCUSSIONS WITH STAKEHOLDERS, BUT HAVE NOT INTRODUCED THE, UM, ANY LANGUAGE YET. 
          UH, AND SO THE IDEA THERE IS THAT WE WOULD, UH, BE PUBLISHING, PUBLISHING LANGUAGE SOON AFTER THE, THE BACHELOR REVISION REQUEST, UH, UH, GO TO THE BOARD. 
          UM, AND, UH, I WOULD SAY OUR, OUR TARGET IS DECEMBER BOARD. 
          WE'RE, WE'RE INTERNALLY, WE'RE TALKING ABOUT A, UM, A STRETCH GOAL OF GETTING THOSE, UH, TO THE SEPTEMBER BOARD. 
          UM, THAT'S, THAT'S A LITTLE BIT TBD. 
          AND THEN, UH, FOR BOTH CLR AND UH, BYOG, UH, BOTH OF THESE CONCEPTS, WE'VE HAD A LOT OF STAKEHOLDERS THAT HAVE SAID, HEY, THIS WHAT YOU'RE TALKING ABOUT FOR BATCHER IS GREAT, BUT WE ALSO WOULD LIKE THESE OTHER FEATURES, THESE OTHER ASPECTS AND OR, OR OTHER TYPES OF SCENARIOS, UM, THAT WE JUST DON'T HAVE TIME TO GET THAT IN PLACE FOR BATCHER. 
          BUT LONG TERM, WE THINK THAT THERE ARE A LOT OF GOOD IDEAS. 
          AND, AND SO WE'RE GONNA BE WORKING WITH STAKEHOLDERS ON ENHANCEMENTS TO BOTH THE CLR AND BYOG CONSTRUCTS, UH, FOR, FOR BATCH. 
          UM, AND THEN, UH, I THINK THIS IS MY LAST SLIDE. 
          WE ALREADY TALKED ABOUT THE, THE RELIABILITY STANDARD ASSESSMENT. 
          HAPPY TO ANSWER ANY OTHER QUESTIONS. 
          QUESTIONS FOR JEFF. 
          MR. CHAIRMAN, JUST REAL QUICK, UM, JEFF, YOU'VE DONE A GREAT JOB TODAY ANSWERING EVERYBODY'S QUESTIONS. 
          JUST LIKE YOU'VE DONE BASICALLY THIS ENTIRE CALENDAR YEAR ASKING, ANSWERING QUESTIONS FROM US AT COMMISSION MEETINGS. 
          SO YOU AND YOUR TEAM NEED TO CONTINUE TO BE COMMENDED FOR THE AMAZING JOB YOU'VE DONE AND GETTING US TO THIS POINT. 
          UM, WHEN THIS ENDS UP BEING EXTREMELY SUCCESSFUL, IT'S GONNA BE IN LARGE PART BECAUSE OF YOU AND, AND YOUR 
          [02:00:01]
CONTRIBUTION. 
          SO I WANNA SAY THANK YOU. 
          YEAH, I WANT TO THANK YOU AS WELL. 
          ALSO, UH, IT'S MY UNDERSTANDING THAT THE STAKEHOLDER COMMITTEE'S BEEN TREMENDOUSLY INVOLVED AND BEEN VERY, ABSOLUTELY. 
          HAS REALLY LEANED IN AND TACK IN PARTICULAR, HAS, HAS, UH, SPENT A LOT OF EXTRA HOURS VERSUS WHAT THEY WOULD NORMALLY DO TO HELP WITH THIS PROJECT. 
          SO THANK EVERYONE FOR, UH, FOR ALL THE GREAT WORK THAT'S BEEN DONE. 
          YEAH, AND I'LL, I'LL ECHO THAT AND ALSO SAY COMMISSION STAFF, UH, AND COMMISSIONERS HAVE BEEN GRACIOUS WITH THEIR TIME AS WE'VE TALKED WITH THIS. 
          SO, UH, I THINK ACCOMMODATIONS ALL AROUND. 
          OKAY, THANKS. 
          STILL HAVE A LOT OF PUSHING TO GO THOUGH. 
          ALRIGHT. 
          UH, LET'S 
          [10. Independent Market Monitor (IMM)  Report ]
GO TO AGENDA ITEM 10, THE INDEPENDENT MARKET MONITOR REPORT. 
          AND THIS IS A STANDING ITEM ON EACH BOARD MEETING AGENDA. 
          IT'S MY UNDERSTANDING THE IMM IS NOT GONNA MAKE A FORMAL REPORT, BUT THEY'RE HERE IF WE HAVE QUESTIONS. 
          DOES ANYONE HAVE ANY QUESTIONS FOR THE IM OKAY, WE'RE GONNA CALL AN AUDIBLE ON THE SCHEDULE. 
          THE NEXT 
          [11. Commercial Markets Update]
IS AGENDA ITEM 11, COMMERCIAL MARKETS UPDATE PRESENTED BY KEITH COLLINS. 
          UH, WE WERE GONNA MOVE TO AGENDA ITEM 11.1, UH, WHICH IS A STRATEGIC DISCUSSION, RESOURCE ADEQUACY, AND THE ROLE OF DEMAND RESPONSE. 
          BUT WE'RE GONNA PUSH THAT OFF TO TOMORROW. 
          AND, UH, NED, I KNOW YOU WERE GONNA TALK ON THAT, BUT CAN YOU COME BY TOMORROW? OKAY, THANKS, NED. 
          UH, SO WITH THAT WE'RE GONNA GO TO KEITH, THIS ONE? YEP. 
          ALL RIGHT. 
          THANK YOU, MR. CHAIRMAN. 
          AND I WILL, I CAN BE A LITTLE BIT QUICKER ON THIS ONE. 
          SO THIS IS AN UPDATE OF OUR COMMERCIAL MARKET OP, OUR COMMERCIAL MARKETS OPERATIONS ACTIVITIES OVER THE, UH, THAT WE'RE CURRENTLY AT AND, AND WORKING ON GOING FORWARD. 
          UH, OUR FIRST SET OF SLIDES IS, UH, AN UPDATE ON SOME DISCUSSIONS WE HAD LAST TIME AT THE BOARD. 
          WE FOLLOWED UP WITH THE COMMISSION WITH SOME DISCUSSIONS ON, UH, REAL TIME CO-OP OPTIMIZATION AND THE BENEFITS THAT WE'VE HAD, UH, ACCUMULATED OVER THE LAST SEVERAL MONTHS. 
          AND, UH, THE, THE KEY TAKEAWAY HERE IS THAT RTC PLUS B HAS BEEN SUCCESSFUL IN ACHIEVING, UH, THE OBJECTIVES THAT WE AND INTENDED OUTCOMES THAT WE HAVE, UH, ANTICIPATED SINCE IMPLEMENTATION. 
          UH, THERE ARE, THERE HAVE BEEN DIFFERENT WAYS TO LOOK AT AT THAT IMPROVE, UH, THE IMPROVEMENTS. 
          UH, WE'VE SEEN A REDUCTION IN RUCKS. 
          WE DO SEE A LOT OF ACTIVITY AND MOVEMENT AMONGST RESOURCES. 
          AND SO OUR INITIAL OBSERVATIONS ARE, IS THAT IT IS, IT IS SUCCESSFUL IN ACHIEVING THOSE OUTCOMES. 
          WE DO HAVE AN INVENTORY OF REMAINING OUTCOMES, UH, REMAINING ITEMS. THESE ITEMS HAVE BEEN SUCCESSFULLY, UH, MOVED TO VARIOUS COMMITTEES AND SUB, UH, WORKING GROUPS TO ADDRESS THESE, THESE FOLLOW UP ITEMS AND ISSUES. 
          UH, THESE ARE, UH, ULTIMATELY THEY'RE, THEY'RE ON THE WORK FOR, FOR CONTINUING FORWARD. 
          AS YOU CAN SEE, THERE IS A, A, A LIST OF 11 ITEMS THAT WE'RE GONNA CONTINUE TO WORK ON, AND, UH, WE'LL BE WORKING AND BRINGING THESE FORWARD OVER THE COMING WEEKS AND MONTHS. 
          REBECCA DID MENTION EARLIER SHE TALKED ABOUT GENERATION FIRMING. 
          UH, UH, THE ONLY OTHER POINT THAT I WOULD ADD HERE IS THAT WE ARE TARGETING, UH, WORKING WITH STAKEHOLDERS TO TARGET THE SEPTEMBER BOARD MEETING TO BRING, UH, THE NPR 1328 TO IN FRONT OF THE BOARD JUST TO HIGHLIGHT MARKET CREDIT CONDITIONS. 
          THERE'S A COUPLE, COUPLE ITEMS I WANTED TO HIGHLIGHT. 
          ONE IS THAT WE DID SUCCESSFULLY NP UH, IMPLEMENT NPRR 1277, UH, IN EARLY MARCH. 
          THERE WAS A MODIFICATION TO OUR CREDIT CALCULATIONS AND OUR COUNTERPARTY EXPOSURE, UH, THAT MAKES IT MUCH MORE ACCURATE. 
          AND, UH, AGAIN, THAT WAS SUCCESSFULLY IMPLEMENTED. 
          AND WE CONTINUE TO WORK ON OUR STRESS TESTING FRAMEWORK. 
          WE HAVE HIRED A CONSULTANT TO HELP, UH, ESSENTIALLY REVIEW OUR STRESS TESTING APPROACH, AND WE LOOK FORWARD TO WORKING WITH, UH, WITH HIM IN THE COMING WEEKS AND MONTHS AND BRING SOMETHING IN THE BOARD, UH, UH, AT SOME POINT EITHER LATER, THIS, UH, EITHER IN THE FALL OR LATER THIS SUMMER. 
          AND THEN FINALLY, I JUST WANTED TO COVER A COUPLE POINTS RELATED TO WINTER STORM FERN. 
          UH, WE DID HAVE AN UPTICK IN OUR, UH, IN THE AMOUNT OF COLLATERAL THAT WE DID HAVE DURING THAT PERIOD. 
          THIS WAS TO BE ANTICIPATED, GIVEN THE, THE WAY THE FORMULAS WORK. 
          WE HAVE, UH, A, A FORWARD LOOKING VIEW OF PRICING. 
          THAT PRICING WENT UP IN ADVANCE OF THE WINTER STORM. 
          UH, AND AS A RESULT, WE DID HAVE ADDITIONAL COLLATERAL, AND WE DID HAVE A LOT OF VOLUNTARY COLLATERAL AS WELL. 
          SO IN THE END, UH, IT WAS VERY SUCCESSFUL. 
          WE DID HAVE ONE DEFAULT. 
          IT WAS A, A TRADE ONLY ENTITY, BUT THERE WERE NO LOSSES AS A RESULT OF, OF THAT DEFAULT. 
          AND SO, UH, THE, THE NEXT TWO CHARTS JUST SHOW THE, THE INCREASE, A QUICK INCREASE AS A RESULT OF THE EVENT, AND THEN A RETURN TOWARDS NORMAL CONDITIONS. 
          AND THAT, UH, WAS ALSO TRUE HERE IN THE DISCRETIONARY CATE, UH, COLLATERAL THAT WE HAVE IN 
          [02:05:01]
THE BLUE AND THE LIGHT BLUE COLOR AS WELL AS THE EVENT OCCURRED, AND THEN A TAIL OFF AFTERWARDS. 
          SO I'LL PAUSE THERE AND SEE IF THERE ARE ANY QUESTIONS ON THIS UPDATE. 
          KEITH, ON THE ENTITY THAT DEFAULTED, WHAT IS THE IMPLICATION TO THE ENTITY, UH, FOR THEM? UM, THEY ARE ESSENTIALLY, UH, UH, OUT OF THE MARKET AND, UH, THEY, THEY WILL HAVE TO, UH, RETURN, THEY WOULD HAVE TO RETURN POTENTIALLY IN THE FUTURE IF THEY WERE ABLE TO, UH, COME UP WITH THE COLLATERAL REQUIREMENTS GOING FORWARD. 
          LOSE THE, LOSE THE COLLATERAL, CORRECT? CORRECT. 
          THANK YOU. 
          ON THE RUCKS, YOU SAY WE'VE REDUCED IT, RIGHT? CORRECT. 
          SO WE CORRECT. 
          HAVEN'T RUN IT IN FEBRUARY. 
          DO YOU HAVE A WAY OF ASSESSING WHAT KIND OF NET BENEFIT OF THAT IS? I MEAN, THAT, THAT'S, THAT'S A LITTLE HARDER TO QUANTIFY IN TERMS OF WHAT COST BENEFIT, BUT I KNOW ONE OF THE THINGS THAT, UH, IN THE STAKEHOLDER PROCESS AND, AND IN THE MARKET, UH, IT'S, IT'S A GOOD SIGN THAT THE FEWER THE RUX, THE, THE MORE EFFECTIVE THE MARKET IS WORKING. 
          AND I THINK SINCE THE RTCB IMPLEMENTATION, WE'VE SEEN A DR. 
          DRASTIC AND DRAMATIC SHIFT DOWNWARD IN THE VOLUME OF RUCKS. 
          UH, IT'S, IT'S NOT COMPLETELY ELIMINATED. 
          WE DO SEE THEM, FOR INSTANCE, DURING THE FERN EVENT AND DURING SOME OF THE SOLAR RAMP DOWNS RECENTLY. 
          BUT, UH, IT IS A DRASTICALLY DIFFERENT, UH, RUCK PROCESS SINCE IMPLEMENTATION OF RTC PLUS B. 
          THANK YOU. 
          YEP. 
          OKAY, KEITH, ANYMORE FOR YOU ON THIS SUBJECT? THAT'S IT. 
          OKAY. 
          THANK YOU. 
          ANY QUESTIONS FOR KEITH? OKAY. 
          WITH THAT, WE'RE GOING TO, UH, WE'RE GOING TO ADJOURN THE GENERAL SESSION, AND WE'RE SUSPEND THE, UH, UH, EXCUSE ME, NOW ADJOURN THE GENERAL SESSION. 
          WE WILL, UH, SUSPEND GENERAL SESSION, UH, FOR TODAY. 
          WE WILL RECONVENE TOMORROW AT 10:00 AM AND THEN, UM, THE WEBCAST WILL BE CONCLUDED WHEN WE COME BACK TOMORROW. 
          WE'LL START WITH THE AGENDA ITEM 11.1. 
          SO, MR. CHAIRMAN, THIS MEETING, PUBLIC UTILITY COMMISSION OF TEXAS IS ADJOURNED. 
          THANK YOU, THOMAS. 
          UH, 
          [Reconvene General Session ]
GOOD MORNING, EVERYONE. 
          TO THE, UH, UH, RECONVENING OF THE APRIL 20TH, APRIL 21ST ERCOT BOARD OF DIRECTORS. 
          I'M BILL FLORES AND SERVE AS BOARD CHAIR. 
          UH, THIS MEETING IS BEING WEBCAST LIVE TO THE PUBLIC ON ERCO T'S WEBSITE. 
          I'D LIKE TO PROVIDE PUC CHAIRMAN THOMAS GLEASON AN OPPORTUNITY TO RECONVENE THE OPEN MEETING OF THE PUBLIC UTILITY COMMISSION OF TEXAS. 
          THANK YOU, MR. CHAIRMAN. 
          THIS MEETING OF THE PUBLIC UTILITY COMMISSION OF TEXAS WILL COME TO ORDER TO CONSIDER MATTERS THAT HAVE BEEN DULY POSTED WITH THE SECRETARY OF STATE FOR APRIL 21ST, 2026. 
          OKAY. 
          UH, THANK YOU CHAIRMAN GLEASON. 
          UH, WE'RE GONNA RESTART WHERE WE LEFT OFF YESTERDAY WITH AGENDA ITEM 11.1. 
          WELL, FIRST OF ALL, LET ME SAY THIS. 
          THE ANTITRUST ADMONITION AND THE SECURITY MAP ARE INCLUDED WITH THE POSTED MEETING MATERIALS. 
          I ASSUME THAT EVERYONE HAS THOSE, UH, IN FRONT OF THEM. 
          UH, SO NOW WE'LL, 
          [11.1 Strategic Discussion on Resource Adequacy and the Role of Demand Response]
UH, RESTART WITH WHERE WE WERE YESTERDAY, WHERE WE LEFT OFF WITH AGENDA ITEM 11.1, THE STRATEGIC DISCUSSION ON RESOURCE ADEQUACY AND THE ROLE OF DEMAND RESPONSE. 
          UH, KEITH IS GOING TO BE PRESENTING THAT TO US, AND THEN WE HAVE, UH, PUBLIC COMMENTS LATER ON AS PART OF THAT CONVERSATION. 
          KEITH, THANK YOU, MR. CHAIRMAN. 
          AND THANK YOU FOR THE OPPORTUNITY TO PRESENT THIS MORNING. 
          UH, I THINK, UH, THIS IS A STRATEGIC DISCUSSION, AND I THINK HAVING, UH, SUFFICIENT TIME TO GO THROUGH THESE POINTS IS, IS GONNA BE HELPFUL. 
          SO, I, I DO WANNA START OFF BY SAYING THAT, UM, WE, THAT THE IDEA IS TO HAVE A STRATEGIC DISCUSSION ABOUT THE RESOURCE ADEQUACY CHALLENGES. 
          I KNOW THESE ARE THINGS THAT HAVE COME UP OVER THE LAST COUPLE DAYS AND SOME OF THE DISCUSSIONS AND PULL IT TOGETHER FROM A, A MARKET DESIGN PERSPECTIVE. 
          AND THEN THE FOCUS WILL BE ON, ON DEMAND RESPONSE. 
          I WILL NOTE WE DID HAVE A COMPANION, UH, REPORT, UH, THAT WAS, UH, SENT ALONG WITH THE BOARD MATERIALS, AND WE DO HAVE REPRESENTATIVES, UH, HERE WITH US FROM, UH, CHARLES RIVER ASSOCIATES THAT DID THAT, DID THAT REPORT AND ANALYSIS, IF THERE ARE ANY QUESTIONS. 
          SO, TO TAKE THIS, UH, SO TO START OFF, SOME OF THE DISCUSSIONS THAT WE'VE, WE'VE, WE'VE HAD OVER THE LAST SEVERAL DAYS, UM, OBVIOUSLY OVER, OVER THE LAST SEVERAL MONTHS NOW, IS THE, THE INCREASING LOAD, UM, THAT WE'RE SEEING IN THE FORECASTS, EVEN ON THE LOW ENDS. 
          UH, WE, WE EXPECT TO, TO CONTINUE TO HAVE, UH, SUFFICIENT LOW GROWTH IN THE, IN THE ERCOT SYSTEM. 
          AND THAT'S EXPECTED TO PERSIST OVER OVER THE NEXT SEVERAL YEARS. 
          THE THE SECOND POINT IS WE, WE'VE ALSO TALKED ABOUT, UH, SUPPLY CHAINS. 
          THIS ACTUALLY CAME UP AT YESTERDAY'S TNS DISCUSSION IN TERMS OF SOME OF THE, THE LIMITATIONS ON, ON BEING ABLE TO, UH, UH, ACQUIRE, UH, DIFFERENT TECHNOLOGIES, PARTICULARLY ON THE GAS SIDE, UH, IN TERMS OF TURBINES AND THE, THE LIMITATIONS OF, OF BEING ABLE TO ADD, 
          [02:10:01]
UH, THAT, AT LEAST THAT TECHNOLOGY TO, TO THE SUPPLY MIX, UH, IN THE, IN THE LONG TERM. 
          AND ULTIMATELY, IT'S THAT FOUR TO FIVE YEARS PERIOD RATHER THAN IN, IN THE 1, 2, 3, 4 YEAR PERIOD. 
          SO THERE, THERE'S A PERIOD WHERE THINGS, UH, ARE LIKELY TO HAVE MORE SUPPLY OPTIONS AND IN A PERIOD WHERE THERE'S LESS. 
          AND THAT'S BEEN SOMETHING THAT WE'VE BEEN DISCUSSING, UH, OVER THE LAST SEVERAL MONTHS. 
          AND, AND AGAIN, AT THE TNS YESTERDAY. 
          AND WHEN WE COMBINE THESE, THESE TWO POINTS OF INCREASING LOAD AND LIMITATIONS ON SUPPLY, UH, THIS DOES PRESENT SOME, SOME POTENTIAL GRID RELIABILITY CHALLENGES AND RESOURCE ADEQUACY CHALLENGES. 
          AND THIS HAS BEEN SOMETHING THAT WE'VE HIGHLIGHTED IN, IN VARIOUS REPORTS, WHETHER IT'S THE CDR REPORT IN OUR E THREE ANALYSIS A FEW YEARS AGO, OUR AURORA ANALYSIS LAST YEAR. 
          SO, SO AGAIN, THESE ARE THINGS THAT, THAT WE'VE, WE SEE COMING AND AN ANTICIPATE, BUT IT REALLY SETS A LOT OF THE STRATEGIC CHALLENGES AND, AND ITEMS THAT WE'RE GONNA DISCUSS THIS MORNING AND, AND HOW WE ADDRESS THIS OR HOW WE MIGHT ADDRESS THIS. 
          SO WHEN WE THINK OF THE LONG-TERM, REALLY THE, THE IDEA IS TO PROMOTE EFFECTIVE AND EFFICIENT LONG-TERM SOLUTIONS TO HELP PROMOTE THAT RELIABILITY AND USING, UH, AND, AND IN THE SLIDE, I, I SORT OF HIGHLIGHT TWO, TWO POINTS. 
          ONE IS ENABLING THE TRANSMISSION SYSTEM TO ALLOW FOR THAT GROWTH, BOTH ON THE LOAD SIDE AND THE SUPPLY SIDE. 
          SO THERE'S A LOT OF DISCUSSION ON THE 7 65 KV EXPANSION TO ALLOW THAT BACKBONE TO DO THAT. 
          AND THEN ON THE MARKET SIDE, WE'VE TALKED ABOUT, AND ON THE RESOURCE SIDE, WE'VE TALKED ABOUT INCENTIVIZING A, A BALANCED PORTFOLIO. 
          AND, UH, NPR 1310 IN PARTICULAR IS A GOOD EXAMPLE OF HOW, UH, WE'VE, WE WE'RE PROMOTING A SOLUTION THAT IN OUR MIND, HELPS TO, TO DO THAT. 
          AND, AND AGAIN, THIS IS A GOOD LONG-TERM SOLUTION. 
          AND, AND WE LOOK AT AS, AS A LONG-TERM SOLUTION, UH, PARTICULARLY BECAUSE OF THOSE LIMITATIONS WHERE EVEN IN THE EVENT THAT WE CAN DESIGN IT, DEVELOP IT, IMPLEMENT, IT, PROVIDE SIGNALS, IT'S STILL GONNA TAKE, UH, A FEW YEARS FOR THOSE SIGNALS TO, UH, TO RESULT IN, IN MEANINGFUL ADDITIONS ON THE SYSTEM. 
          AND THAT HAS TO DO A LOT WITH THOSE LIMITATIONS THAT WE TALKED ABOUT JUST A FEW MOMENTS AGO. 
          BUT THERE ARE POTENTIAL, UH, SHORT-TERM SOLUTIONS OR MID TO, TO SHORT TERM SOLUTIONS. 
          AND, AND ONE OF THOSE IS DEMAND RESPONSE THAT CAN HELP BRIDGE THAT GAP BETWEEN THE SHORTER, THE SHORTER TERM PERIOD AND, AND THE LONGER TERM PERIOD. 
          AND THERE'S A FEW THINGS THAT WE THINK WE CAN DO TO, TO HELP DO THAT. 
          AND, AND A LOT OF THIS IS, SOME OF THIS IS UNDERWAY. 
          SOME OF THIS IS, IS, UH, POTENTIALLY UNDERWAY. 
          SO, UH, THE FIRST ONE IS WE HAVE SOME EXISTING PROGRAMS, OUR ERS EMERGENCY RESPONSE SERVICE, WE HAVE OUR A DER PILOT, FOR EXAMPLE. 
          AND, AND THOSE SOLUTIONS ARE, HAVE THE POTENTIAL, UH, TO BE MODIFIED AND, AND, UH, HELP, HELP PROMOTE, UM, UH, UH, FURTHER DEMAND RESPONSE SOLUTIONS. 
          UH, WE'VE BEEN SUPPORTING, UH, THE DEVELOPMENT OF THE LARGE LOAD RESPONSE PROGRAM UNDER SENATE BILL SIX. 
          THIS WAS SOMETHING THAT, UH, REBECCA, UH, ALLUDED TO, AND I BELIEVE, UH, JEFF, UH, JEFF AND DAN TALKED ABOUT THIS A LITTLE BIT ALONG WITH THE CONTROLLABLE LOAD RESOURCES. 
          SO EVEN IN THAT LARGE LOAD SENSE, THERE'S A LOT OF, OF DISCUSSION ABOUT DEMAND SOLUTIONS TO HELP, HELP, UH, IMPROVE RESOURCE ADEQUACY. 
          AND THEN, AND THEN THE FINAL ONE IS SOMETHING THAT WE HAVE BEEN WORKING ON OVER THE LAST SEVERAL MONTHS, WHICH IS REACHING UNTAPPED RESIDENTIAL DEMAND RESPONSE. 
          WE BELIEVE THERE'S POTENTIAL THERE, AND WE'VE HAD NPR 1296 UNDER DISCUSSION, THE STAKEHOLDER PROCESS AS WELL. 
          AND AGAIN, THE, THEY'RE ALL HITTING DIFFERENT AREAS OF THE, THE DEMAND RESPONSE, UH, UH, UNIVERSE. 
          UH, SO THERE'S LARGE LOADS, RESIDENTIAL LOADS, COMMERCIAL LOADS, ET CETERA. 
          AND SO WHEN WE LOOK AT, UH, SOME STRATEGIC QUESTIONS FOR THE, FOR THE BOARD AND, AND FOR THE STAKEHOLDERS AND, AND, AND FOLKS TO THINK ABOUT IS, WELL, CAN THE DEMAND RESPONSE ADDRESS THE NEAR TERM RESOURCE ADEQUACY CONCERNS? ARE THE CURRENT DEMAND RESPONSE INCENTIVES ALIGNED WITH OUR RESOURCE NEEDS? BECAUSE THOSE HAVE CHANGED, IN PARTICULAR, WITH THE, THE ADVENT OF SOLAR IN PARTICULAR, WE'VE SEEN A SHIFT OF WHEN PEAK PERIODS ARE HISTORICALLY BEEN IN THAT FOUR OR FIVE O'CLOCK, UH, IN THE AFTERNOON PERIOD TO SHIFTING TO LATER IN THE EVENING. 
          UH, HAS THE RESIDENTIAL DEMAND RESPONSE, UH, CAN WE EFFICIENTLY, UH, TAP THAT TO HELP ADDRESS RELIABILITY? AND CAN OUR EXISTING PROGRAMS BE IMPROVED, UH, AND, AND ENHANCED, UH, TO EXPAND THEIR POTENTIAL? SO THESE, I THINK, ARE, ARE SOME 
          [02:15:01]
QUESTIONS THAT WE'VE BEEN THINKING ABOUT AND, AND THINGS THAT, UH, WE THINK THE, THE BOARD SHOULD BE THINKING ABOUT AS WELL. 
          AND SO HERE'S SOME, SOME POINTS ABOUT WHY WE THINK DEMAND RESPONSES IS A GOOD FIT FOR THE ERCOT SYSTEM. 
          AND, AND I'LL START WITH THAT FIRST ONE, WHICH IS THE SPEED OF DEPLOYMENT. 
          AND IN TERMS OF THAT TIMELINE THAT WE DISCUSSED, UH, THERE'S, THERE'S A BIT OF A GAP BETWEEN WHEN RESOURCES POTENTIALLY, UH, CAN BE, UH, ACQUIRED AND INSTALLED AND, AND ACTIVATED IN A SYSTEM, PARTICULARLY THOSE THERMAL RESOURCES AND WHAT WE CAN DEVELOP IN, IN SORT OF THE MORE NEAR TERMS OR MONTHS VERSUS YEARS. 
          AND, AND THERE'S A, THERE'S A CONCEPT THAT I WANTED TO, TO THROW OUT, WHICH, WHICH IS KIND OF THE TIME VALUE OF RELIABILITY. 
          I KNOW WE, WE THINK ABOUT THE TIME VALUE OF MONEY, BUT THERE IS A TIME VALUE OF RELIABILITY. 
          AND, AND I THINK THE SPEED OF DEPLOYMENT REALLY, REALLY SPEAKS TO THAT. 
          UH, IF YOU CAN GET RESOURCES SOONER, THERE'S, THERE'S VALUE THERE IN THE NEAR TERM VERSUS, UH, ABLE TO RESOLVE ISSUES IN THE FUTURE. 
          BUT THAT ALSO SPEAKS TO THAT RESOURCE GAP, UH, THE SUPPLY CHAINS AND, AND, UH, THAT, THAT GROWING RESOURCE AVAILABILITY GAP THAT WE SEE. 
          AND, AND I JUST WANNA HIGHLIGHT TOO, THAT WE TALKED ABOUT AVAILABILITY. 
          THAT IS SOMETHING THAT WE HAD DISCUSSED, UH, OVER THE LAST COUPLE YEARS IN TERMS OF HIGHLIGHTING. 
          THAT'S A, A DESIGN ELEMENT THAT, THAT WE WANTED TO FOCUS ON. 
          AND, AND AGAIN, DEMAND RESPONSE CAN HELP FILL THAT AVAILABILITY GAP, UH, COST EFFECTIVENESS. 
          UH, WHEN YOU LOOK AT OTHER PROGRAMS, UH, AND AGAIN, IT DEPENDS ON THE PARTICULAR PROGRAM, BUT IT CAN BE COST EFFECTIVE RELATIVE TO OTHER, OTHER REGIONS, OTHER MARKETS. 
          THERE IS UNTAPPED POTENTIAL. 
          AND, AND AGAIN, THE SENSE THAT IT COULD BE IN THE GIGAWATT RANGE. 
          UH, MEGAWATTS ARE NICE, GIGAWATTS ARE NICER, AND ULTIMATELY THERE'S A LOT OF NEW ENABLING TECHNOLOGIES, WHETHER IT'S SMART THERMOSTATS, AND, AND OBVIOUSLY WE'VE SEEN A LOT MORE WITH HOME BATTERIES, PARTICULARLY IN OUR A DR PROGRAM AND NEW TECHNOLOGIES AND NEW BUSINESS MODELS THAT HAVE BEEN, THAT HAVE GROWN AROUND THAT. 
          SO WE THINK THAT THERE'S A LOT OF POTENTIAL, UH, IN, AND, AND THAT, UH, DEMAND RESPONSE CAN BE A GOOD, GOOD FIT FOR, FOR ERCOT IN A SYSTEM. 
          SO WHAT, WHAT WE'VE DONE IS WE, WE, UH, EXAMINED AND PUT TOGETHER A, UM, AN ANALYSIS, AND WE REACHED OUT TO CHARLES RIVER ASSOCIATES TO PROVIDE A HIGH LEVEL OVERVIEW AND, AND EXAMINATION OF THE CURRENT AND PROPOSED PROGRAMS WITHIN THE ERCOT SYSTEM. 
          AND TO HELP PROVIDE A COMPARISON. 
          I THINK SORT OF THE SCOPE OF THIS REPORT WASN'T NECESSARILY TO, UH, I THINK IT, WE LOOKED AT AS A GOOD STRATEGIC DOCUMENT, SOMETHING THAT THE, THE BOARD CAN LOOK AT AS, AS AN OVERVIEW. 
          BUT, UM, THERE COULD BE SOME DRILL DOWN GOING FORWARD IN TERMS OF, IS THERE A PARTICULAR ANALYSIS WE NEED TO DO GOING FORWARD? BUT FOR RIGHT NOW, I THINK IT DOES A GOOD JOB OF, OF FOCUSING ON THE HIGH LEVEL, UM, AND, AND PAINTING THE PICTURE ON WHERE PROGRAMS ARE, WHAT ARE SOME OF THE CHALLENGES AND, AND WHAT ARE SOME OF THE POTENTIAL RECOMMENDATIONS FOR GOING FORWARD. 
          SO THAT'S WHERE I'LL, I'LL JUMP INTO SOME OF THE CHALLENGES THAT WERE IDENTIFIED IN, IN THE REPORT. 
          THE, THE CHARLES RIVER ASSOCIATES REPORT, UH, THEY DID HIGHLIGHT THE, THE SAME SCARCITY CHALLENGE AS DEMAND IS GROWING AND AS GENERATION RESOURCES ARE POTENTIALLY OUTPACED BY THAT DEMAND INCREASE, UH, THEY DID IDENTIFY, UH, THEY DID TALK ABOUT FOUR CP AS A, IT'S A TRANSMISSION COST ALLOCATION METHOD, BUT THAT METHOD HISTORICALLY ALIGNED WITH THE PEAK PERIODS OF THE DAY, UM, AND THE PEAK PERIODS OF THE YEAR. 
          UH, BUT NOW WHAT WE'RE SEEING IS OBVIOUSLY WINTER BEING A PERIOD WHERE LOADS, UH, TEND TO TO BE, UH, TO BE HIGH IF, UH, GROWING AND, AND IF NOT, UH, REACHING LEVELS CLOSE TO THE, THE SUMMER PEAKS. 
          UM, BUT ALSO DURING THE DAY IN THE SUMMER PERIODS, WE'RE SEEING, AS I NOTED EARLIER, A SHIFT TOWARDS THOSE EVENING, EVENING HOURS, UH, AS OPPOSED TO THE MIDDAY HOURS. 
          UH, WHERE HISTORICALLY WE'VE HAD, UH, BOTH FOUR CP AND PEAK LOADS. 
          THERE ARE RETAIL DEMAND RESPONSE PROGRAMS TODAY. 
          THEY DO EXIST. 
          UH, THE, THE, THE REPORT DID NOTE THEY ARE NOT INTEGRATED NECESSARILY WITH THE ERCOT, UH, SYSTEM AND HOW WE OPERATE. 
          UH, THERE'S THE ERS PROGRAM. 
          ONE OF THE THINGS THAT THEY NOTED AND WE HAD HIGHLIGHTED TO THE BOARD BACK IN THE FALL IS THAT WE'VE SEEN A GROWING, A LARGE GROWING INSTANCE OF HIGHLY PRICE SENSITIVE RESOURCES. 
          THESE ARE PRIMARILY CRYPTO MINING, CRYPTOCURRENCY, MINING RESOURCES, AND THEY'RE DRIVING DOWN OUR ERS CLEARING PRICES TO POTENTIALLY INEFFICIENT, UH, INEFFICIENTLY LOW LEVELS. 
          AND THAT HAS THE POTENTIAL OF DRIVING OUT OTHER RESOURCES THAT WOULD NOT HAVE BEEN FOR THE, IN THE PROGRAM, BUT FOR THE ERS PAYMENTS. 
          AND THEN FINALLY, WE 
          [02:20:01]
HAVE OUR AGGREGATED, UH, DISTRIBUTED ENERGY RESOURCE PILOT. 
          UH, AND THAT HAS EFFECTIVELY BROADENED, UH, THE, THE LEVEL OF, UH, ALLOWING THESE DISTRIBUTION CONNECTED RESOURCES TO BE AND ENGAGE DIRECTLY IN THE MARKETS. 
          BUT THERE ARE SOME POTENTIAL OPPORTUNITIES AND TECHNICAL AND PARTICIPATION CHALLENGES THAT COULD BE OVERCOME TO INCREASE, UM, UH, WIDEN THE PARTICIPATION IN THOSE PROGRAMS. SO THEN THAT GETS TO THE, UM, ALRIGHT, GETS TO THE TAKEAWAYS, UH, FROM FROM THE REPORT. 
          THE, THE FIRST ONE IS THAT IS CONSISTENT WITH, WITH WHAT WE WERE JUST TALKING ABOUT AS DEMAND RESPONSE, OFFERING A NEAR TERM SOLUTION AS OPPOSED TO SOME OF THESE LONGER TERM SOLUTIONS THAT WE'VE BEEN, UM, DISCUSSING. 
          UH, THERE IS A IMPROVED, WE CAN IMPROVE ALIGNMENT OF THE RETAIL PROGRAMS, UM, TO HELP, UH, IMPROVE, YOU KNOW, THE, THE, THE, THE NEEDS OF THE SYSTEM. 
          THEY DID IDENTIFY THAT THE RESIDENTIAL DEMAND RESPONSE PROGRAM CAN FILL A GAP THAT EXISTS, UH, BY TARGETING, UH, UH, DEMAND RESPONSE DURING THESE NET LOAD PERIODS AND DOING THAT ACROSS THE YEAR. 
          AND THAT'S SOMETHING THAT IS, IS PRESENTLY NOT, UH, NOT INCLUDED IN SOME OF THESE PROGRAMS. AND THEN ULTIMATELY, WHEN YOU LOOK AT SOME OF THE COMPENSATION LEVELS, IT CAN BE ROUGHLY COMPARABLE TO SOME OF THE OTHER PROGRAMS. FOR INSTANCE, THE CALIFORNIA ISO DOES HAVE A RETAIL DEMAND RESPONSE PROGRAM THAT IS ROUGHLY SIMILAR. 
          I THINK, AGAIN, IT'S A CAPACITY PROGRAM, UH, AND IT'S NOT AN ENERGY PROGRAM, BUT I THINK, I THINK MOST FOLKS WOULD, WOULD AGREE THAT HAVING AN ENERGY, UH, PROGRAM, UM, BASED ON ACTUAL PERFORMANCES IS, UH, IS PREFERRED RELATIVE TO A CAPACITY PRODUCT. 
          AND THEN FINALLY, THEY, THEY DID TALK ABOUT ERS AND, UH, THE NEED TO ADDRESS THE, UH, INEFFICIENT LOW PRICING THROUGH, UH, POTENTIAL LIMITATIONS ON, ON RESOURCE PARTICIPATION AND, AND FOCUSING ON RESOURCES THAT SELF DEPLOY, WHICH, WHICH BRINGS ME TO, UH, ERCOT CONCLUSIONS AND THINGS THAT WE SEE IS, IS IMPORTANT WITH, WITH RESPECT TO DEMAND RESPONSE. 
          WE, WE THINK THAT IT COULD BE A, A, A CRITICAL RELIABILITY BRIDGE SOLUTION, UH, AS THIS LOW GROWTH IS OCCURRING. 
          AND, UH, AS WE ANTICIPATE GENERATION, PARTICULARLY THAT THERMAL GENERATION DEVELOPMENT IN, IN YEARS THAT ARE BEYOND 2030, UH, THE CURRENT DEMAND RESPONSE TENDS TO BE MISALIGNED WITH THE, THE SYSTEM NEEDS, AGAIN, THE TIME OF YEAR, TIME OF DAY, OUR EXISTING PROGRAMS LIKE ERS AND OUR A DR CAN BE ENHANCED TO IMPROVE EFFICIENCIES AND EFFECTIVENESS. 
          UH, AND THAT INCLUDES THE PRICING OF THE ERS AND ENHANCING A DR TO BETTER TARGET CONGESTION AND CODIFY THE PROGRAM FROM A PILOT AND A PROTOCOL, UH, PROGRAM SPECIFICALLY. 
          AND THEN ALSO TO TARGET DEMAND RESPONSE, UH, RESIDENTIAL DEMAND RESPONSE TO HELP FILL A GAP. 
          SO THAT'S, THOSE ARE THE CONCLUSIONS THAT, THAT WE'VE TAKEN AWAY FROM BOTH THE ANALYSIS AND OUR VIEW OF, OF THE POTENTIAL FOR DEMAND RESPONSE AND, AND THE PROGRAMS IN, IN OUR SYSTEM. 
          AND THAT, THAT BRINGS US TO THE NEXT STEPS, UH, AND ULTIMATELY WORKING TO IDENTIFY ANY NEAR TERM IMPLICATIONS IN, IN BOTH OUR CURRENT AND PROPOSED PROGRAMS, WORKING ALONG WITH P-U-C-P-U-C STAFF, UH, SEEKING FURTHER GUIDANCE WHERE APPROPRIATE, UH, WORKING WITH STAKEHOLDERS TO ENHANCE AND PROMOTE DEMAND RESPONSE SOLUTIONS, INCLUDING OUR RESIDENTIAL DEMAND RESPONSE AND, UM, EVALUATING RESIDENTIAL DEMAND RESPONSE. 
          UH, PARTICULARLY AS PART OF THAT ANALYSIS OF THE RELIABILITY STANDARD ASSESSMENT, THERE'S AN OPPORTUNITY TO INCLUDE RESIDENTIAL DEMAND RESPONSE ALONG WITH OUR DISPATCHABLE RELIABILITY RESERVE SERVICE PLUS AND POTENTIALLY OTHER SOLUTIONS AS PART OF THAT STUDY. 
          SO THOSE ARE OUR NEXT STEPS. 
          AND, UH, THAT TAKES ME TO THE END OF MY PRESENTATION. 
          I'LL BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE. 
          THANK YOU, KEITH. 
          ANY QUESTIONS FOR KEITH? HEY, KEITH. 
          IS THIS A, UM, SO YOU SAID THIS IS A RELIABILITY BRIDGE MM-HMM . 
          SO IS THIS VIEWED AS A SHORT-TERM PROGRAM, A PILOT PROGRAM, A LONG-TERM PROGRAM? AND HOW WOULD YOU DESCRIBE THAT? I THINK, I THINK THE IDEA IS THAT WE, WE CAN USE IT LONG-TERM AS WELL. 
          UH, IT'S SOMETHING THAT YOU CAN DEVELOP IN THE, THE SHORT TERM AND IT CAN HAVE BENEFITS BOTH SHORT TERM AND LONG TERM. 
          BUT I THINK WHAT WE'RE ALSO ANTICIPATING IS THAT, YOU KNOW, LOADS WILL CONTINUE TO GROW AS WELL. 
          AND SO, UH, THERE IS, THERE'S POTENTIALLY A LIMIT OF HOW MUCH YOU CAN GET. 
          UM, BUT I THINK THERE'S DEFINITELY A LOT OF POTENTIAL TO HELP WITH THAT BRIDGE. 
          AND THEN WE'LL HAVE MORE RESOURCES THAT, UH, INCLUDING DEMAND RESPONSE AND OTHER RESOURCES AS WELL. 
          AND 
          [02:25:01]
WHAT'S THE PERSPECTIVE OF OTHERS IN TERMS OF THE PRICING ASSOCIATED WITH THIS PRODUCT? SO WITH, WITH REGARDS TO THE RESIDENTIAL DEMAND RESPONSE PROGRAM, I THINK THERE'S, UH, THERE'S SOME OF THE VIEW, UH, THAT, THAT WE MAY HEAR IN A MOMENT TOO, IS THAT IT SHOULD BE INTEGRATED INTO THE PRICING. 
          I THINK WE'VE, WE'VE HEARD THAT AND WE HAVE, UH, UH, MODIFIED THE PROPOSAL TO INCLUDE A MECHANISM TO HELP ADDRESS SOME OF THE PRICING CONCERNS. 
          AND I THINK THE SECOND CONCERN WE'VE HEARD IS THAT POTENTIALLY IT'S TOO EXPENSIVE. 
          AND WHAT WE HAVE DONE IS WE'VE DONE A, UH, COST COMPARISON. 
          PART OF IT WAS COVERED IN THE, THE, THE REPORT FROM THE CHARLES RIVER ASSOCIATES. 
          AND I THINK THE MORE WE EVALUATE THE, THE LEVEL AND THE COST, IT IS, IT IS NOT THAT INCONSISTENT. 
          IT'S KIND OF IN THE MIDDLE, IS MAYBE THE BEST WAY TO SAY IT, COMPARED TO WHAT OTHER REGIONS AND OTHER PROGRAMS, IT'S A LITTLE HARD TO DO A COMPARISON BECAUSE A LOT OF THE OTHER PROGRAMS THAT EXIST IN OTHER REGIONS TEND TO BE CAPACITY. 
          CAPACITY. 
          YEAH. 
          UM, BUT, BUT AGAIN, I THINK THERE ARE, WHEN YOU, WHEN YOU LOOK AT THE MECHANISMS AND THE CAPACITY, THERE ARE A CAPACITY PAYMENT AND SOMETIMES THEY HAVE A CAPACITY, UM, UH, THERE'S A CLAW BACK POTENTIALLY, RIGHT? SO THEN IT'S A, WELL, HOW MUCH ARE YOU ACTUALLY PAYING THEM BECAUSE YOU MAY PAY THEM, THEY PERFORM OR NOT PERFORM, AND THEN THERE'S A, A CLAWBACK. 
          SO, SO IT'S HARD TO SORT OF SAY THAT IT'S A COMPLETE APPLE TO APPLE, BUT IT'S DEFINITELY FRUIT. 
          OKAY. 
          THANK YOU. 
          KEITH, COULD I ASK CHAIRMAN, ASK, WOULD, WOULD YOU SAY THAT THIS IS THE ONLY THING THAT WE CAN DO IN THE SHORT TERM TO ADDRESS THE LOAD GROWTH PROBLEM? OR ARE THERE OTHER ALTERNATIVES THAT WE SHOULD BE LOOKING AT? WELL, I, I THINK WHEN, WHEN WE LOOK AT THE TYPE OF RESOURCES THAT WE'RE DEFINITELY ANTICIPATING IN THE COMING YEARS, UH, IS, IS PROBABLY TO LOOK A LITTLE BIT LIKE WHAT WE'VE SEEN OVER THE LAST FEW YEARS, WHICH IS SOLAR AND STORAGE. 
          AND I THINK THAT, UM, THERE'S OBVIOUSLY SOME, SOME CHANGES FOR INCENTIVES FOR THE SOLAR, THE TAX CREDIT CHANGES, THE FIRMING CHANGES THAT WE TALKED ABOUT YESTERDAY. 
          UM, AND THEN STORAGE. 
          HISTORICALLY WE'VE SEEN THE SHORT TERM STORAGE AND, AND WE HAVEN'T SEEN THE LONG TERM STORAGE. 
          SO I THINK, UH, WE'VE STUDIED THAT, UH, LAST YEAR IN OUR AURORA ANALYSIS, AND THAT DOES CREATE SOME POTENTIAL RELIABILITY CHALLENGES. 
          UH, I THINK OUR SENSE WAS THAT LOAD RESPONSE CAN HELP WITH THAT AS WELL, BUT I THINK A LOT OF THE OTHER RESOURCE DEVELOPMENT THAT WE SEE TENDS TO BE A LITTLE FURTHER OUT. 
          AND SO WHEN YOU'RE LOOKING AT A NEARER TERM ISSUE, UH, IN THE, THE 1, 2, 3, 4 YEARS IS DIFFERENT THAN POTENTIAL SOLUTIONS THAT CAN COME IN FIVE YEARS. 
          AND, AND WE'VE TALKED IN THE TNS ABOUT NUCLEAR OR, UH, GEOTHERMAL AND, UH, EVEN GAS, UH, AND LONG-TERM STORAGE, THOSE ARE ALL GREAT POTENTIAL RESOURCES, BUT I, I THINK EVEN IN THOSE DISCUSSIONS, THOSE TEND TO BE FURTHER OUT SOLUTIONS. 
          YEAH. 
          WELL THAT, THAT'S MY POINT. 
          I MEAN, IT'S NOT OBVIOUS TO ME LOOKING AT ALL THE TECHNOLOGIES THAT WE'VE LOOKED AT THAT OTHER THAN JUST ADDING MORE WIND AND SOLAR AND, AND MAYBE BATTERIES FOR PEAK SHAVING, THAT THERE'S ANY OTHER ALTERNATIVE OTHER THAN DEMAND RESPONSE THAT THAT'S I GUESS THE POINT. 
          YEP. 
          YEAH, I THINK, I THINK, JOHN, THAT'S A REALLY, REALLY GOOD POINT. 
          AND THAT'S HOW WE'VE BEEN THINKING ABOUT THIS IS HOW DO WE, HOW DO WE PUT TOOLS IN THE RELIABILITY TOOLBOX THAT MEET DIFFERENT NEEDS AT DIFFERENT TIME PERIODS? I THINK THAT'S THE OBJECTIVE THAT WE'RE TRYING TO THINK THROUGH. 
          AND SO KEITH JUST DESCRIBED KIND OF THREE TIERS OF DEMAND RESPONSE CAPABILITIES. 
          ONE OF THEM AT THE LARGE INDUSTRIAL SIZE LOAD, WHICH SENATE BILL SIX PROVIDES FOR A NEW LARGE INDUSTRIAL LOAD RESPONSE PROGRAM THAT WE'RE GONNA BE DEVELOPING. 
          THAT'S ONE OPPORTUNITY. 
          WE'VE GOT OUR ERS PROGRAM, WHICH IS LARGELY, UH, GEARED TOWARDS MORE COMMERCIAL SIZE, UH, UH, CUSTOMERS. 
          AND THAT COULD POTENTIALLY BE EXPANDED, CHANGED, ADJUSTED IN A WAY TO BE MORE EFFECTIVE IN THAT CLASS. 
          AND I THINK THERE'S POTENTIAL GROWTH OPPORTUNITY THERE. 
          AND THEN THE MISSING PIECE IN OUR PORTFOLIO HAS ALWAYS BEEN ON THE RESIDENTIAL SIDE IN TERMS OF A SCALABLE PROGRAM. 
          WE DO HAVE PROGRAMS TODAY, AND I THINK WE'LL HEAR FROM, UH, POTENTIALLY OTHERS THAT, YOU KNOW, THAT THERE ARE EXISTING PROGRAMS TODAY THAT ARE AVAILABLE TO OFFER A DEMAND RESPONSE TO, UH, RESIDENTIAL CONSUMERS. 
          WE HAVE SEEN, YOU KNOW, LIMITED UPTAKE IN PARTICIPATION IN THOSE PROGRAMS. AND I THINK ONE OF THE BIGGER FACTORS IN THAT IS THAT THERE'S A PRICE HURDLE TO INCENTIVIZE RESIDENTIAL CONSUMERS TO CHANGE THEIR BEHAVIOR AND TO ALLOW FOR, UH, PARTICIPATION IN A PROGRAM LIKE THIS. 
          THE INTENT BEHIND THIS PROGRAM IS TO HELP CLEAR THAT PRICE HURDLE. 
          WELL, AND I WOULD ADD TO THAT AS A, AS A, AN AUSTIN ENERGY CUSTOMER, IT'S COMPLETELY OPAQUE TO ME AS A CONSUMER, EVEN A CONSUMER WHO WANTS TO PARTICIPATE IN DEMAND RESPONSE. 
          IT'S COMPLETELY OPAQUE TO ME WHAT I NEED TO BE DOING AT WHAT TIMES OF THE DAY. 
          AND, AND AUSTIN ENERGY'S PROGRAM, I THINK IS PARTICULARLY WEAK 
          [02:30:01]
IN THIS REGARD. 
          YEAH. 
          SO THAT'S, I THINK THAT'S, THERE'S AN OPPORTUNITY HERE TO HAVE A, HOPEFULLY A CLEAR UNDERSTANDING OF WHAT THAT VALUE PROPOSITION IS. 
          IT IS HIGHER THAN PERHAPS A TRADITIONAL MARKET SIGNAL, BUT THE TRADITIONAL MARKET SIGNAL IS INTENDED TO DEVELOP LONG-TERM INFRASTRUCTURE, AS KEITH JUST POINTED OUT, AT THE EARLIEST WE'RE LOOKING AT IS ACROSS A FI, YOU KNOW, FIVE YEAR PLUS HORIZON TO BE ABLE TO SEE THAT MANIFEST ITSELF. 
          SO WHAT DO WE DO OVER THE NEXT FIVE YEARS? SO WE WANNA TRY TO PUT THINGS IN THE TOOLBOX TO DEAL WITH THAT NEXT FIVE YEAR PERIOD, AND IDEALLY, YOU KNOW, YOU KNOW, HAVE OPTIONS THAT THEN CAN BE LEVERAGED IN A COST IN THE MOST COST EFFECTIVE WAY POSSIBLE TO DELIVER THAT KIND OF RELIABILITY. 
          AND I THINK, I GUESS THE POINT I'M TRYING TO MAKE IS THAT DO WE NEED TO DO WHAT BANDERA HAS DONE IN TERMS OF GIVING CONSUMERS VISIBILITY INTO WHAT THEY'RE USING WHEN THEY'RE USING IT, AND MAKE BEING ABLE TO MAKE INTELLIGENT CHOICES, UH, AS OPPOSED TO THE CURRENT SYSTEM, WHICH AS I SAID, IS COMPLETELY OPAQUE. 
          YEAH. 
          BUT IN THE MEANTIME, I MEAN, WHAT ARE OUR OPTIONS? I MEAN, TO YOUR POINT, YOU KNOW, YOU'RE WAITING TO DEVELOP NEW RESOURCES, WHICH HAVE A LONG LEAD TIME. 
          SO WHAT, WHAT ARE THE PRACTICAL OPTIONS THAT WE HAVE TO PROVIDE TOOLS TO MAINTAIN RELIABILITY? I MEAN, DEMAND RESPONSE SEEMS TO BE ONE OF THEM. 
          IN THE LONGER TERM, PERHAPS WITH, AS WE WORK ON MARKET DESIGN AND HAVING THE RIGHT INCENTIVES IN PLACE, MAYBE THAT CHANGES WITH THE ADVENT OF ADDITIONAL CAPACITY ON THE SYSTEM, WHETHER THAT BE THROUGH THE MARKET OR THROUGH DATA CENTERS. 
          BUT WE'RE REALLY IN A BIND IT SEEMS, IN THE, IN THE NEAR TERM, IN TERMS OF RESOURCES THAT WE CAN CONTROL. 
          AND, AND TO THAT POINT, WE, WE WANNA MAKE SURE THAT WHATEVER WE DO IN THE SHORT TERM DOESN'T HARM OUR LONG TERM POTENTIAL EXACTLY. 
          TO DEVELOP A BALANCED RESOURCE SET. 
          AND THAT'S ONE OF THE FEATURES, I DON'T KNOW IF KEITH, YOU MENTIONED THAT FULLY, BUT THAT IN THE PROPOSED RDR CONCEPT, THE RESIDENTIAL DEMAND RESPONSE, THERE WOULD BE A RESTORATION OF THE PRICE, THE WHOLESALE PRICE WHEN IT'S USED IN ORDER TO NOT DISINCENTIVIZE TRADITIONAL MARKET INVESTMENTS BASED ON SCARCITY CONDITIONS THAT ARE EMERGING, WHICH IS, I THINK IS REALLY IMPORTANT. 
          I AGREE, ABSOLUTELY. 
          THAT'S WHY I WAS ASKING IS IT A PILOT OR IS IT, YOU KNOW, BUT SO IT'LL EVOLVE IN TERMS OF PRICING. 
          YEAH, IT ABSOLUTELY WILL. 
          AND IN THE SHORT TERM HAS TO, IT'S INTENDED TO, IT'S INTENDED TO BE DESIGNED IN A WAY THAT WOULD NOT HARM WHOLESALE PRICE SIGNALS TO HELP SEND THE RIGHT MESSAGE AROUND WHAT'S GOING ON WITH GRID SCARCITY. 
          SORRY, KEITH, IN, IN TERMS OF THE BASKET OF THINGS THAT WE CAN DO HERE IN SHORT TERM MM-HMM . 
          UM, ALSO IN THE REPORT, THERE'S SOME MENTION OF THE A DER PILOT. 
          CORRECT. 
          AND, BUT THERE ARE CONSTRAINTS OR TECHNICAL ISSUES. 
          CAN YOU, CAN YOU PROVIDE US A LITTLE BIT MORE COLOR ON THAT AND ALSO A LITTLE BIT OF A SENSE OF SCALE HERE BECAUSE, UH, THE DEMAND RESPONSE, YOU KNOW, I THINK WE ALL HAVE A, WE HAVE AN IDEA THAT THAT HAS POTENTIAL FOR, YOU KNOW, RELATIVELY LARGE SCALE MM-HMM . 
          UM, BUT WITH THE A DER, HOW MUCH SCALE POTENTIAL DO WE HAVE AND DO WE HAVE A SENSE FOR BOTH? I, I THINK THE A DER IS, UH, AS AN EXAMPLE, WE WERE IN THE TENS OF, OF MEGAWATTS JUST A YEAR OR TWO AGO. 
          WE'RE, WE'RE NOW CAPPING IT AT, THERE'S A CAP IN THERE, BUT IT'S, IT'S, IT'S LIKE A HUNDRED, RIGHT? SO YOU'VE GONE FROM TENS TO HUNDREDS AND, AND THE POTENTIAL IS, IS PRETTY HIGH. 
          UH, POTENTIALLY THERE ARE SOME, SOME CHALLENGES WE'VE SEEN. 
          1, 1, 1 ISSUE THAT THAT IS, HAS BEEN BROUGHT UP AND SOMETHING THAT WE'RE, WE'RE THINKING ABOUT IS WHEN, WHEN THOSE TYPES OF RESOURCES ARE DEPLOYED, IT TENDS TO BE OVER A LARGER REGION. 
          UM, BUT WHEN YOU HAVE CONSTRAINTS, YOU COULD HAVE RESOURCES THAT ARE ON, YOU KNOW, THE HIGH SIDE AND THE LOW SIDE OF THE CONSTRAINT, AND YOU'RE DEPLOYING BOTH AT THE SAME TIME. 
          SO HAVING A, A MORE TARGETED APPROACH TO DEALING AND MANAGING CONGESTION WITH THESE RESOURCES IS AN EXAMPLE OF SOMETHING THAT COULD BE DONE TO IMPROVE, UH, THE PERFORMANCE OF THAT. 
          AND THEN, UM, AS, AS IT DOES IT TODAY, THE A DR IS PRIMARILY, UH, UH, A RESIDENTIAL BATTERY STORAGE PROGRAM. 
          WHEN YOU LOOK AT THE TYPES OF RESOURCES THAT HAVE PARTICIPATED, UM, I THINK THE ORIGINAL THOUGHT WAS, WELL, COULD IT EXPAND TO, TO MORE THAN THAT? AND, AND ULTIMATELY IT'S, IT'S MORE GEARED TOWARDS A RESIDENTIAL STORAGE. 
          AND SO IF THAT'S THE CASE, THEN IT'S ALSO FACTORING IN SOME OF THE THINGS THAT WE'VE BEEN TALKING ABOUT WITH, WITH STATE OF CHARGE AND THINKING ABOUT HOW THAT FACTORS INTO THE, THE PROGRAM. 
          THERE ARE SOME CHALLENGES AND THINKING ABOUT THAT, PARTICULARLY WHEN YOU THINK ABOUT, WELL, IT'S PARTICIPATING IN ANCILLARY SERVICES AND WHAT DOES THAT MEAN? AND SOME OF THE CHALLENGES THAT DAN WAS TALKING ABOUT YESTERDAY. 
          SO ARE THERE ANY ACTIONS THAT WE, THAT WE SHOULD TAKE OR, OR, YOU KNOW, CONSIDER TAKING THEN TO GET THIS MOVING? 'CAUSE THIS IS AN, AN EVERYTHING, LET'S GET EVERYTHING GOING KIND OF SITUATION. 
          I THINK WHAT'S WHAT'S REALLY HELPFUL FROM, FROM, FROM US, FROM A BOARD PERSPECTIVE IS I THINK WE'RE, WE'RE LOOKING TO EXPLORE SOME OF THE SPECIFICS 
          [02:35:01]
OF THESE PROGRAMS TO MAKE ENHANCEMENTS. 
          AND I THINK, UM, HAVING, HAVING THE SUPPORT THAT YES, DEMAND RESPONSE IS IMPORTANT, WE WANT TO EXPEDITE THIS SO THAT WE CAN, UM, HELP ADDRESS OUR, OUR RESOURCE ADEQUACY CHALLENGES. 
          I THINK THAT'S REALLY, YOU KNOW, A NICE, UM, NICE SIGNAL FROM THE BOARD THAT WHEN WE'RE WORKING ON THESE, UH, PROGRAMS, THAT IT'S IMPORTANT TO, TO MOVE THESE THINGS ALONG QUICKLY, THAT THERE ARE SOME DETAILS AND, AND, AND MY, YOU KNOW, WE'RE GONNA WORK THROUGH THE STAKEHOLDER PROCESS AND WITH THE REGULATORS TO HELP DEAL WITH SOME OF THE SPECIFICS OF THESE, THESE CHALLENGES. 
          UM, BUT, BUT I THINK HAVING THAT END GOAL IN MIND, UH, IS, IS IMPORTANT, WILL HELP DRIVE THIS FORWARD. 
          CHAIRMAN GLEASON KEITH, UH, ON THE PREVIOUS SLIDE, YOU TALK ABOUT PRICING FOR A DER. 
          IS THAT REALLY A DISCUSSION ABOUT MOVING FROM ZONAL TO NODAL PRICING? OR IS THAT MORE ENCOMPASSING THAN THAT? NO, I, I THINK THAT'S WHAT'S AN INTERESTING QUESTION IS, IS IT, IS IT NODAL OR IS IT SUB ZONAL? UH, THOSE ARE SOME CHALLENGES THAT WE'RE THINKING ABOUT AND HOW THAT WOULD WORK. 
          BUT YES, IT'S DEFINITELY TALKING ABOUT A SUB ZONAL PRICING AND HOW THAT WILL LOOK OR MATERIALIZE IS PROBABLY STILL TO BE CONSIDERED. 
          BUT, UM, THAT'S, THAT'S PART OF THE CHALLENGE THERE IS TO TRY TO TARGET HOW IT CAN BE USEFUL FROM A CONGESTION PERSPECTIVE. 
          OKAY. 
          AND THEN ON 1296, YOU KNOW, RIGHT NOW WE'RE, WE'RE TALKING THROUGH CHANGES TO THE CONE VALUE. 
          HOW WILL THOSE DISCUSSIONS IMPACT 1296 AND, AND THE, UH, THE COSTS AROUND IT? WELL, AS, AS IT'S PRESENTLY, UM, CONSTRUCTED, THERE IS A OPERATIONAL CONE VALUE THAT'S A PART OF HOW THE PRICING MECHANISM IS, IS DESIGNED. 
          AND SO TO THE EXTENT THAT THE COMMISSION WERE TO UPDATE THE OPERATIONAL CONE VALUE, THEN THAT WOULD FACTOR INTO THE, THE WAY THE RDR PROGRAM WORKS. 
          I ACTUALLY HAVE A QUESTION FOR CHAIRMAN GLEASON, AND THAT IS, MY, MY UNDERSTANDING IS THAT THE PUC IS NOT SUPPORTIVE OF THIS APPROACH. 
          CAN YOU GIVE US HERE IN THE LOWLY ERCOT BOARD SOME INSIGHT INTO WHY, WHEN YOU SAY THIS APPROACH, JOHN, ARE YOU TALKING ABOUT RESIDENTIAL DEMAND RESPONSE? YEAH, SO I, I, I THINK YOU'RE, YOU'RE HAVING A, A DISCUSSION ABOUT TWO GOOD THINGS. 
          I THINK OVERALL DEMAND RESPONSE IS A REALLY GOOD THING, BUT I THINK WE'RE ALSO STRUGGLING WITH, YOU KNOW, WE NEED MORE THERMAL DISPATCHABLE UNITS TO, TO COME ONLINE. 
          YOU WANT THOSE MEGAWATTS THERE TO PROVIDE THAT PRICE SIGNAL. 
          SO I THINK THERE'S A TENSION THERE POTENTIALLY. 
          SO I THINK IT'S, I, I DON'T KNOW THAT I WOULD CHARACTERIZE IT AS THE COMMISSION BEING NOT IN FAVOR OF THIS AS MUCH AS JUST WANTING TO WORK THROUGH ALL OF KIND OF THE PRIMARY, SECONDARY, AND TERTIARY IMPACTS OF A DECISION LIKE THAT AND WHAT IT COULD DO TO THE OVERALL MARKET. 
          I THINK IF YOU SAW THE, THE TWO HEARINGS THAT PABLO AND I TESTIFIED IN THE LAST COUPLE WEEKS, BOTH IN THE HOUSE AND THE SENATE, THERE'S DEFINITELY DESIRE AT THE LEGISLATURE TO ENABLE AND EMPOWER RESIDENTIAL CUSTOMERS TO BENEFIT FROM PROGRAMS LIKE THIS. 
          SO I THINK, UH, AGAIN, I WOULDN'T CHARACTERIZE IT NECESSARILY AS, AS THE PUC OR STAFF IS AGAINST IT AS MUCH AS WE JUST WANT TO MAKE SURE THAT WE UNDERSTAND THE FULL IMPACT OF THE DECISION THAT'S BEING PUT BEFORE US. 
          YEAH. 
          I, I, LOOK, I THINK THAT'S FINE, BUT AS YOU JUST HEARD, I MEAN, WE HAVE NO WAY OF SATISFYING THAT DISPATCHABLE DEMAND IN THE SHORT TERM. 
          I MEAN, AS MUCH AS WE MIGHT WANT PEOPLE TO BUILD MORE GENERATION, THEY'RE NOT GONNA BUILD IT OUTSIDE OF WHAT'S ALREADY SCHEDULED UNTIL 2032. 
          SO WHAT ARE WE SUPPOSED TO DO IN THE MEANTIME? YEAH, I, AGAIN, I THINK THAT WE'RE, WE'RE LOOKING AT ALL OPTIONS IN FRONT OF US. 
          I, I DON'T, I DON'T KNOW THAT THERE IS A DESIRE TO TAKE ANY OF THESE OPTIONS OFF OF THE TABLE. 
          I JUST THINK IT WOULD BE IMP PRUDENT FOR THE COMMISSION TO, AT THIS JUNCTURE, AS COMMISSIONERS GET BEHIND SOMETHING COMPLETELY WITHOUT UNDERSTANDING THE FULL IMPACT OF IT. 
          I THINK YOU'VE SEEN, UH, YOU KNOW, PARTICULARLY FROM FROM THIS COMMISSION, THE DESIRE TO FULLY STUDY ALL OF THESE AS OPTIONS. 
          UM, BUT AGAIN, I WANT TO UNDERSTAND THE FULL IMPACT OF WHAT I'M DOING BECAUSE AS YOU KNOW, THE COMMISSION, NOT THE BOARD HAS THE FINAL SAY IN WHAT, WHAT GETS APPROVED. 
          AND SO BEFORE, I THINK WE ENDEAVOR TO, TO DO THAT, WE NEED TO KNOW THE FULL IMPACT OF THE DECISION WE'RE MAKING. 
          I, I, I ACCEPT THAT. 
          I JUST DON'T WANT US TO WASTE A LOT OF TIME IF THE COMMISSION IS ALREADY MADE UP, IT'S MIND. 
          OKAY. 
          THANK YOU, KEITH. 
          UH, VISTA WAS GOING, UH, HAS ASKED A COMMENT, SO I'M SORRY. 
          CAN I, I'M SORRY. 
          I'M SORRY, JUDGE, QUESTION REAL QUICK. 
          THIS IS A RELATED QUESTION. 
          ONE OF THE BENEFITS OF A D YARD THAT YOU MENTIONED IS REDUCED CONGESTION, ESPECIALLY IF IT'S CORRECTLY PLACED GEOGRAPHICALLY, AND MAYBE I'M GONNA ASK WOODY THIS QUESTION, JUST REMIND US IN THE RELIABILITY STUDY, IS CONGESTION ONE OF THE VARIABLES STUDIED IN THE RELIABILITY STUDY? IT'S NOT. 
          SO THIS IS A TYPICAL EXAMPLE WHERE IF WE'RE PLANNING 
          [02:40:01]
RESOURCE ADEQUACY WITH ONE SET OF TOOLS AND TRANSMISSION WITH ANOTHER SET OF TOOLS, AND WE DON'T BRING THEM TOGETHER, ESPECIALLY ON TOPICS LIKE CONGESTION, WE MISS SOMETHING IN THAT PROCESS. 
          UM, SO THE, THE TRANSMISSION STUDIES WILL INCLUDE CONGESTION, RIGHT? SO CONGESTION, WE ADDRESS SOLUTION THROUGH RESOURCE ADEQUACY BY HAVING A DERS. 
          OH, I MEAN, IDEALLY THE WAY THE MARKET WOULD WORK IS INVESTORS WOULD WANT TO PUT PLANTS IN PLACES WHERE PRICES ARE THE HIGHEST, WHERE THERE IS CONGESTION. 
          AND SO THEY BUILD A PLANT WHERE THERE'S HIGH CONGESTION AND THAT SOLVES THAT CONGESTION. 
          OKAY. 
          LET'S HOPE IT WORKS THAT WAY. 
          OKAY, THANK YOU, KEITH. 
          UH, NED HAS ASKED TO TESTIFY ON BEHALF OF RA. 
          OKAY. 
          ALL RIGHT. 
          GOOD MORNING, EVERYONE. 
          UM, GOOD DISCUSSION ALREADY. 
          I THINK YOU, YOU STARTED GETTING INTO SOME OF THE, THE, THE QUESTIONS AND POINTS OF FEEDBACK THAT, UM, I WANTED TO, TO TEE UP. 
          SO, UM, ALREADY DONE SOME OF THE WORK,  WORK THAT I WAS HOPING TO DO. 
          SO, UM, THANK YOU FOR THAT. 
          THANK YOU FOR THE OPPORTUNITY TO SPEAK AND PROVIDE A FEW THOUGHTS. 
          UM, I APPRECIATE THE WAY THAT KEITH FRAMED THIS DISCUSSION AS A STRATEGIC ONE. 
          UM, YOU KNOW, WE HAD A LOT OF DISCUSSION AT THE LAST TAC MEETING ABOUT, YOU KNOW, STRATEGY VERSUS TACTICS. 
          MAYBE CAITLIN WILL GIVE YOU AN UPDATE ABOUT , ABOUT THAT. 
          UM, BUT YOU KNOW, WHEN WE, WHEN VISTA THINKS ABOUT THIS PARTICULAR TOPIC AS A STRATEGIC ONE, UM, WHAT WE THINK ABOUT IS BOTH, NOT, NOT WEATHER, BUT UH, BOTH HOW CAN YOU ADDRESS THE NEEDS OF THE NEXT FIVE YEARS, BUT ALSO HOW DO YOU LINE THAT UP WITH THE NEEDS OF THE NEXT 15 TO 50 YEARS, RIGHT? AND I THINK SOME OF THE THINGS Y'ALL WERE JUST, Y'ALL WERE JUST DISCUSSING IS HOW DO YOU TRY TO GET THE MOST RESOURCE, MOST OUTTA THE RESOURCES YOU HAVE IN THE NEAR TERM? AND ALSO MAKE SURE THAT YOU'RE CONTINUING TO HAVE THE RIGHT INCENTIVES FOR THE LONG TERM, FOR THE INVESTMENTS THAT THE SYSTEM NEEDS OVER THE LONG TERM TO MEET THE, THE NEEDS OF LOADS OF ALL OF ALL DIFFERENT TYPES. 
          SO, UM, WITH THAT AS KIND OF A FRAME OF MIND STARTING POINT, I WANT TO GO AHEAD AND JUST JUMP RIGHT TO THE TWO KEY CONCLUSIONS AND KEY TAKEAWAYS THAT I WANNA LEAVE YOU WITH. 
          UH, THE FIRST ONE IS, IT'S NOT A QUESTION OF CAN DEMAND RESPONSE HELP ADDRESS NEAR TERM RESOURCE ADEQUACY, UH, ADEQUACY CONCERNS. 
          IT'S HOW CAN DEMAND RESPONSE HELP ADDRESS NEAR TERM RESOURCE ADEQUACY CONCERNS? AND THEN FROM THERE, WE JUMP TO THE SECOND ORDER QUESTION, WHICH IS, HOW SHOULD DEMAND RESPONSE HELP TO MEET THOSE NEAR TERM RESOURCE ADEQUACY CONCERNS? AND THAT'S, THAT'S REALLY WHAT I WAS TRYING TO, UM, ADD TO THIS SLIDE AND RIGHT HERE, UM, TRY TO KEEP IT PRETTY HIGH LEVEL AND, AND ASK WHAT IS THE CONTEXT IN WHICH WE'RE TRYING TO RESOLVE THIS AND HOW DOES THAT INTERACT WITH THOSE LONG TERM SIGNALS? BECAUSE, UM, YOU KNOW, WHAT WE DON'T WANT TO HAVE HAPPEN IS THAT WE SET A STRATEGIC OBJECTIVE FOR ONE PARTICULAR PART OF THE MARKET THAT DOESN'T ALIGN WITH THE STRATEGIC OBJECTIVES OF THE OTHER. 
          IF YOU GET THOSE CROSSWISE, THEN YOU KNOW, THIS IS A RISK. 
          ANYTIME YOU TAKE, SAY, AN ALL OF THE ABOVE APPROACH TO ANY PROBLEM IS YOU MIGHT HAVE ONE OF THE OPTIONS ABOVE WORKS CROSSWISE WITH THE OTHER, AND YOU END UP CANCELING THEM OUT. 
          UM, OR WORSE, YOU END UP IN A, IN A WORSE PLACE, BUT YOU SPEND A LOT OF TIME IN A LOT OF MONEY AND A LOT OF ENERGY ON IT. 
          SO WE WANNA BE MINDFUL OF THAT AND, AND YOU KNOW, I KNOW Y'ALL DO AS WELL AS WE THINK ABOUT HOW DOES THAT, UH, HOW DOES THAT WORK WITH OUR OVERARCHING OBJECTIVES? SO TAKING A STEP BACK THERE, I WANNA START OFF BY POSITING THAT THE OVERARCHING OBJECTIVE THAT STAKEHOLDERS AND, AND ERCOT AND THE COMMISSION ALL SHARE, IS THAT WE WANT SUSTAINABLE RELIABILITY THROUGH COMPETITIVE MARKETS. 
          KIND OF A TWO-PARTER. 
          FIRST PART THERE IS SUSTAINABLE RELIABILITY. 
          THAT IS MEETING THE RELIABILITY OBJECTIVES OF THE SYSTEM AND OF THE STATE THROUGH MARKET OUTCOMES, RIGHT? SO WE WE'RE NOT REQUIRING OUT OF MARKET TOOLS, OUT OF MARKET PROGRAMS. WE ACTUALLY HAVE THE MARKET, UH, DRIVING THOSE RESULTS. 
          THAT'S WHAT I THINK WE ALL WANT BECAUSE THAT'S THE LIST HAND ON YOU LET THE MARKET DO ITS MAGIC, YOU GET THE MOST VALUE FOR THE LOWEST COST, UM, OVER TIME AND THEN COMPETITIVE MARKETS. 
          THAT'S THE SECOND PART THERE. 
          AND, AND SO THE QUESTION IS, WHAT KIND OF COMPETITIVE MARKETS DO WE HAVE? WELL, CURRENTLY THE ERCOT MARKET IS AN ENERGY ONLY MARKET, AND THAT MEANS THAT WE HAVE TO DEPEND CRITICALLY ON THAT REAL TIME PRICE FORMATION TO SEND SIGNALS BOTH IN REAL TIME TO DEMAND RESPONSE AND TO GENERATION RESOURCES TO, TO BRING SUPPLY OR BACK OFF DEMAND IN REAL TIME. 
          SO THAT IS A, THAT IS SOMETHING THAT CAN HAPPEN IN SHORT TERM, THAT PRICE SIGNAL IN REAL TIME CAN HELP ACHIEVE THAT. 
          AND I'LL ACTUALLY POSIT THAT'S IN THAT INCLUDES RESIDENTIAL DEMAND RESPONSE. 
          IT MAY NOT BE A DIRECT PAYMENT, BUT THERE IS CERTAINLY A STRONG INCENTIVE FOR ANY LOAD SERVING 
          [02:45:01]
ENTITY THAT IS SERVING RESIDENTIAL CONSUMERS TO GET AN INTERNAL RATE OF RETURN FROM TRYING TO MA UH, MANAGE THAT. 
          THE REAL ISSUE IS YOU NEED A MARKET PRICE SIGNAL THAT CREATES THAT INTERNAL RATE OF RETURN, AND THAT'S THE SAME PRICE SIGNAL THAT YOU'RE DEPENDING ON TO INCENTIVIZE GENERATION OVER THAT LONG TERM, UH, HORIZON. 
          AND FOR THAT TO WORK, SO NOT ONLY DO YOU NEED THAT PRICE FORMATION, BUT YOU ALSO NEED TO HAVE CONFIDENCE IN THE MARKET POLICIES. 
          AND THAT MEANS THAT WHEN YOU SEE THOSE PRICE SIGNALS, YOU LET THOSE PRICE SIGNALS WORK AND WE AVOID THE TEMPTATION TO JUMP IN WITH POLICIES THAT CAN UNDERCUT THAT PRICE FORMATION. 
          AND THAT'S PART OF WHAT I THINK THE LARGER CONCERN HAS BEEN THAT STAKEHOLDERS HAVE HAD. 
          I DON'T WANNA SPEAK FOR ALL STAKEHOLDERS, BUT I'LL AT LEAST, YOU KNOW, SPEAK FOR MYSELF IS, UH, IN, IN PARTICULAR TO THE RDR, THE RESIDENTIAL DEMAND RESPONSE PROGRAM, IT IS TARGETED SPECIFICALLY AT NET PEAK LOAD HOURS, WHICH ARE THE TIME PERIODS WHERE IN A RENEWABLES HEAVY SYSTEM, YOU TEND TO SEE THE MOST PRICE FORMATION, AND THAT'S WHAT CREATES THOSE LONG-TERM PRICE SIGNALS. 
          AND, AND THAT'S THE CONCERN THAT WE'VE HAD. 
          I DO WANT TO, UH, RECOGNIZE AND APPRECIATE, AS KEITH SAID, ERCOT HAS PUT FORWARD SOME, SOME, UH, MODIFICATIONS TO THAT PROPOSAL TO TRY TO ADDRESS THAT, UH, THROUGH THE RELIABILITY DEPLOYMENT PRICE ADDER. 
          I WILL SAY IN WHAT WE'VE REVIEWED ON, UH, OF THAT APPROACH, IT'S NOT EXACTLY ONE FOR ONE, YOU CAN GET THE MARKET DISTORTIVE IMPACTS IN CERTAIN HOURS THAT MAY NOT BE COVERED, UM, BY THE, UH, THE RDPA TREATMENT. 
          SO IT'S A LITTLE SCATTERSHOT AND YOU GET ONLY PARTIAL COVERAGE AND YOU STILL GET SOME DISTORTIVE EFFECTS. 
          AND THAT'S THE CONCERN THAT, THAT WE STILL HAVE. 
          WE'RE, WE'RE REALLY HAPPY TO CONTINUE TALKING ABOUT THAT WITH ARCOT AND TRY TO FIND A, A BETTER WAY FORWARD, UH, BECAUSE LIKE I SAID, OUR POSITION IS NOT CAN DEMAND RESPONSE HELP MEET THOSE NEAR TERM CHALLENGES. 
          IT'S HOW CAN WE DO THAT AND HOW SHOULD WE DO THAT? SO, UM, I KNOW OF, UH, WE'VE ALREADY HAD A LITTLE BIT OF DISCUSSION ON THIS, I'LL JUST OBSERVE A COUPLE ITEMS. ONE IS THE PERCEPTION OF UNTAPPED DEMAND RESPONSE IS THE SAME, UH, THAT YOU HAVE AS THE PERCEPTION OF UNTAPPED INVESTMENT IN GENERATION RESOURCES. 
          UM, IT'S, IT'S ACTUALLY BEEN SOMEWHAT UNCANNY IN SOME OF THE DISCUSSIONS WE'VE HAD WHERE YOU COULD ALMOST TAKE DEMAND RESPONSE AND DISPATCHABLE GENERATION AND SWAP THOSE TERMS OUT AND YOU WOULD BE HAVING THE SAME EXACT CONVERSATION. 
          IT ALL COMES DOWN TO WHAT ARE THE MARKET, THE MARKET STRUCTURE, THE MARKET PRICE SIGNALS WE'RE SENDING AND THE INCENTIVES THAT WE'RE SETTING, UM, THAT RHETORICAL SYMMETRY REFLECTS THE MARKET SYMMETRY, RIGHT? WE, WE KNOW THAT THERE'S A POTENTIAL THERE, BUT THE MARKET SIGNAL ISN'T QUITE THERE. 
          SO, UM, LIKE I SAID, IN AN ENERGY ONLY MARKET, WE HAVE TO RELY ON THAT REAL TIME ENERGY PRICE. 
          UH, THAT'S WHAT'S GONNA SEND THE ECONOMIC SIGNALS FOR DEMAND RESPONSE AND FOR ENTRY AND EXIT FROM RESOURCES IN AN ENERGY ONLY MARKET. 
          THERE'S NO SAFETY NET, UH, AS, UH, KEITH ACKNOWLEDGED, AND AS YOU'LL SEE IN THE CHARLES RIVERS ASSOCIATES REPORT, THE VAST MAJORITY OF REVENUES FOR DEMAND RESPONSE IN THE OTHER MARKETS THAT WE'RE BEING COMPARED TO, THEY ALL HAVE CAPACITY MARKETS. 
          AND THAT'S WHERE THE VAST MAJORITY OF THAT VALUE COMES FROM. 
          THAT'S NOT A LUXURY THAT WE HAVE CURRENTLY IN THE ERCOT MARKET. 
          AND SO IT'S A CRITICAL FIRST ORDER CONDITION THAT WE NEED TO BE KEEPING IN MIND AS WE, AS WE THINK ABOUT HOW DO WE, HOW DO WE ADDRESS, UH, HOW DO WE INTEGRATE DEMAND RESPONSE INTO THE ERCOT MARKET SINCE WE DON'T HAVE THE, THAT SAME, UH, THAT SAME DYNAMICS. 
          UH, THE OTHER PIECE THAT I THINK IS IMPORTANT TO NOTE IS THAT MANY LOADS CAN BE FLEXIBLE, BUT THEY DON'T ALWAYS WANT TO BE FLEXIBLE. 
          AND THERE IS A DIFFERENCE IN WHAT YOU GET FROM DEMAND RESPONSE VERSUS RESOURCES IN THAT YOU CAN, YOU CAN GO TO MA TO DEMAND RESPONSE AND, AND UTILIZE THAT, AND THAT CAN HELP A LOT, BUT THERE'S THERE CUSTOMERS CAN GET TIRED OF THAT. 
          I KNOW THAT FROM PERSONAL EXPERIENCE, I'M ALSO AN AUSTIN ENERGY CUSTOMER AND, UM, I, I KNOW THAT THERE HAVE BEEN PLENTY OF TIMES WHERE I OR MY WIFE HAVE GONE AND OVERRIDDEN IT ON THE THERMOSTAT BECAUSE, YOU KNOW, EVEN A FEW DEGREES CAN SOMETIMES BE VERY, UH, VERY IMPACTFUL. 
          YOU KNOW, PARTICULARLY WHEN WE HAD A YOUNG, A YOUNG CHILD WHO WAS TRYING TO GET TO NAP, UH, YOU KNOW, THERE ARE CERTAIN CONSTRAINTS THAT OVERRIDE THAT PRICE SIGNAL FOR FOR RESIDENTIAL CONSUMERS. 
          SO, UM, GOING DOWN THE SLIDE A LITTLE BIT, I ALREADY ANSWERED THE FIRST ONE. 
          UM, CAN DEMAND RESPONSE ADDRESS THE NEAR TERM RESOURCE ADEQUACY CONCERNS? YES. 
          QUESTIONS. 
          HOW, NOT IF, BUT HOW ARE THE, ARE THE CURRENT RESIDENTIAL DEMAND RESPONSE AND INCENTIVES ALIGNED WITH SYSTEM NEEDS? I ACTUALLY THINK RIGHT NOW THE ANSWER IS YES, BECAUSE WE HAVE A LOT OF, UH, THE LAST FEW YEARS HAVE BEEN RELATIVELY ABUNDANT IN TERMS OF RESOURCES, LOW IN TERMS OF LOAD. 
          SO THE PRICE SIGNAL HASN'T QUITE BEEN THERE. 
          SAME, SAME EXACT ISSUE THAT WE'VE SEEN, UH, WE'VE TALKED ABOUT FROM A RESOURCE ADEQUACY INVESTMENT STANDPOINT. 
          UH, CAN DEMAND RESPONSE, RESIDENTIAL DEMAND RESPONSE BE EFFICIENTLY TAPPED? I THINK THE ANSWER IS YES, WITH CERTAIN LIMITS, UM, YOU KNOW, 
          [02:50:01]
CONSIDER HOW MUCH YOU ACTUALLY ARE GONNA DEPEND ON THAT. 
          AND I THINK IT'S IMPORTANT TO NOTE THERE FOR THE LOAD GROWTH THAT WE HAVE COMING, SENATE BILL SIX HAS ALREADY GIVEN US A LOT OF THE LOAD FLEXIBILITY TOOLS THAT WE NEED TO ADDRESS THAT DIRECTLY FROM THE SOURCES OF THAT LOAD GROWTH. 
          UM, AND IMPORTANTLY IN THE STATUTE, IT ADDRESSES THE PRICE FORMATION CONCERN. 
          SO THERE'S A KIND OF A, A NEATLY PACKAGED, UM, COMBINATION OF FACTORS THERE. 
          AND CAN EXISTING DEMAND RESPONSE PROGRAMS BE IMPROVED? UM, I THINK POSSIBLY THAT'S, THAT'S WHAT WE'RE HAVING THE DISCUSSION ABOUT. 
          THE, AND THE IMPORTANT THING IS HOW DO YOU DO THAT IN KEEPING WITH THE, THE MARKET STRUCTURE THAT WE HAVE. 
          SO, UM, THE ONLY OTHER ITEM THAT I CAN THINK OF OFF THE TOP OF MY HEAD THAT I JUST WANNA ADDRESS FROM SOME OF THE CONVERSATION THAT Y'ALL WERE HAVING IS, YOU KNOW, SUPPLY CHAIN AND WHAT OTHER SOURCES OF, UH, SUPPORT THERE ARE FOR THE LOAD GROWTH IN THE NEAR TERM. 
          THERE IS A LOT OF CAPACITY GENERATION CAPACITY ON THE SYSTEM CURRENTLY THAT SITS AT A MODERATE CAPACITY FACTOR, SAY IN THE 40 TO 60% RANGE, WHERE THERE IS ROOM ON EXISTING RESOURCES TO FLEX UP AND, AND MEET A LOT OF THAT LOAD DURING THE, THE VAST MAJORITY OF HOURS IN THE YEAR. 
          UM, THERE ARE STILL RESOURCES COMING ONTO THE SYSTEM. 
          AGAIN, RECOGNIZE A LOT OF THOSE ARE EITHER INTERMITTENT OR, OR DURATION LIMITED, BUT THERE ARE RESOURCES NONETHELESS. 
          AND SENATE BILL SIX, LIKE I SAID, GIVES SOME OF THOSE LOAD FLEXIBILITY TOOLS TO, UH, THE COMMISSION IN ERCOT TO REALLY MANAGE DURING THOSE, THOSE FEW PEAK HOURS. 
          SO WE CAN STILL MAINTAIN A LOT OF RELIABILITY AND MEET A LOT WITH THE RESOURCES THAT WE HAVE, UM, WHILE WE, YOU KNOW, WAIT FOR SOME OF THE NEWER, UH, NEWER RESOURCES TO DEVELOP. 
          AND WE ARE SEEING THAT RESPONSE IN THE, THE GENERATION INTERCONNECTION QUEUE. 
          IT'S, IT'S THERE AND IT'LL BE COMING. 
          UM, AND SO IT'S REALLY HOW DO WE MANAGE IN THE MEANTIME? AND THERE'S A ROLE FOR, FOR LOAD FLEXIBILITY TO PLAY IN THERE. 
          WE JUST NEED TO MAKE SURE THAT WE DO IT RIGHT AND, UM, NOT GET CROSSWISE WITH OUR OTHER OBJECTIVES. 
          SO THANK YOU. 
          ANY QUESTIONS FOR NED? OKAY. 
          I'VE GOT A QUESTION. 
          SO NED, YOU'VE, YOU SEE BOTH SIDES OF THE COIN, RIGHT? WITH RA, SO YOU'VE GOT THE GENERATION SIDE, YOU'VE GOT THE LOAD SIDES, AND WHAT KEITH KIND OF PUT UP THERE IS THE CURRENT STRAW MAN IN TERMS OF HOW WE LOOK AT THIS. 
          WHAT WOULD YOU PROPOSE AT KIND OF GIVEN YOUR SEAT THAT IS HANDLED DIFFERENTLY HERE? TH THANK YOU FOR THAT QUESTION. 
          SO YOU'RE, YOU'RE RIGHT. 
          YEAH. 
          VISTRA DOES SEE BOTH SIDES OF THE, OF THE EQUATION HERE. 
          WE ARE THE LARGEST GENERATOR IN OUR CUP. 
          WE'RE ALSO ONE OF THE LARGEST RETAIL ELECTRIC PROVIDERS. 
          AND SO WE HAVE, WE SERVE LOADS, WE'RE VERY MINDFUL OF, UH, OF COSTS AND OF, UM, YOU KNOW, WE WERE ACTUALLY SOME OF THE, WE WERE THE FIRST RETAIL ELECTRIC PROVIDER TO, UH, OFFER A FLEXIBLE DEMAND, UH, FLEXIBLE THERMOSTAT PROGRAM. 
          WE'VE GOT, UH, VIRTUAL POWER PLANT OFFERINGS. 
          WE'VE BEEN, UH, VERY ACTIVE IN THAT SPACE. 
          WE WERE THE FIRST TO INTRODUCE A FREE NIGHTS AND, UH, AND SOLAR DAYS AND, AND THOSE KINDS OF PRODUCTS THAT HELP TO ALIGN INCENTIVES. 
          UH, I THINK THE, THE FIRST ORDER PREFERENCE IS ALWAYS GOING TO BE USE THE ENERGY PRICE SIGNAL FOR BOTH SUPPLY AND DEMAND TO WORK AROUND THE SAME OBJECTIVE. 
          THAT'S ALWAYS GONNA BE THE CLEANEST WAY TO GO. 
          IF YOU HAVE TO GO THE ROUTE OF HAVING A SEPARATE PROGRAM, IT'S CRITICAL THAT THE AMOUNT OF THAT, UH, THE QUANTITY, THE CAPACITY THAT IS BEING SUBSIDIZED AND AND UTILIZED IN THOSE PROGRAMS CAN BE CLEANLY ACCOUNTED FOR AND ADJUSTED IN THE MARKET PRICE. 
          AND YOU WANT TO GET AS CLOSE AS YOU CAN. 
          IT'S NEVER GONNA BE PERFECT, BUT YOU WANT TO GET AS CLOSE AS YOU CAN. 
          AND THAT'S BEEN AN ISSUE THAT I THINK A LOT OF FOLKS IN THE MARKET HAVE, HAVE BEEN, UM, HAVE REALLY BEEN FOCUSED ON FOR, FOR A LONG TIME AS MORE AND MORE DEMAND RESPONSE PROGRAMS HAVE KIND OF CROPPED UP OVER THE YEARS. 
          CAN I THANK YOU COMMENT. 
          I MEAN, I'D LIKE TO TAKE ISSUE A LITTLE BIT WITH YOUR COMMENTS ABOUT THE SYMMETRY BETWEEN THE DEMAND SIDE AND AND GENERATION SIDE, BECAUSE I DON'T THINK THERE IS SYMMETRY. 
          I I THINK THE GENERATION SIDE IS INCREDIBLY GOOD AT LOOKING AT PRICE SIGNALS AND I THINK THE RETAIL DEMAND SIDE IS TERRIBLE. 
          THIS, THIS WAS MY POINT ABOUT IT'S OPAQUE. 
          PEOPLE DON'T KNOW WHEN PRICES ARE AT THEIR MAXIMUM. 
          THEY JUST KNOW BECAUSE THEY GET A BLENDED BILL FROM THEIR RETAIL ENERGY PROVIDER. 
          SO THERE ISN'T THAT SYNERGY TODAY OR SO THAT THERE, THERE ISN'T THE RIGHT PRICE SIGNAL COMING TO RETAIL TODAY. 
          AND WHAT WE'RE TRYING TO DO IS FIGURE OUT A WAY TO GET MORE OF THAT INTO THE RETAIL CONSUMER SO THAT WE DO GET A DEMAND RESPONSE SYSTEM THAT WORKS AT THE RETAIL LEVEL. 
          YOU KEEP MIXING UP INDUSTRIAL DEMAND RESPONSE, WHO I WOULD ACKNOWLEDGE ARE PRETTY GOOD AT UNDERSTANDING WHAT THE PRICE SIGNAL IS TELLING THEM WITH RETAIL CUSTOMERS WHO ARE NOT GOOD AT ALL AT UNDERSTANDING THAT, AND THE RETAILERS IN GENERAL AREN'T GOOD AT PASSING IT THROUGH. 
          SO THAT'S WHY I THINK PART OF THE PROBLEM WE'RE 
          [02:55:01]
TRYING TO SOLVE HERE. 
          OKAY. 
          THANKS JOHN. 
          THANKS NA. 
          ALRIGHT, THANK YOU. 
          ALRIGHT, UH, CHAD, DID ANYONE ELSE SIGN UP TO COMMENT PUBLICLY? NO. 
          OKAY. 
          WITH THAT WE'RE 
          [12. CEO Update]
GONNA MOVE TO AGENDA ITEM 12, THE CEO UPDATE. 
          PABLO. 
          THANK YOU. 
          GOOD MORNING AND THANK YOU CHAIR FLORES, UH, AND FELLOW BOARD MEMBERS AND EVERYBODY FOR YOUR INTEREST IN THE, UM, IMPORTANT WORK WE ARE DOING IN ERCOT. 
          UM, TODAY I'M GONNA TOUCH BRIEFLY ON A COUPLE OF TOPICS WE'VE COVERED. 
          SO I'M NOT GONNA GO IN THIS TO THE SAME DEGREE OF, UH, DETAIL, BUT JUST WANNA TRY TO SET SOME CONTEXT AROUND THE LONG-TERM LOAD FORECAST AND, UH, SOME OF THE PERSPECTIVES ON THE INFORMATION THAT WE HAVE. 
          AT THIS POINT WHERE WE'RE GOING WITH THAT, I WANNA TALK A LITTLE BIT ABOUT, UH, HOW THIS LARGE LOAD INTERCONNECTION PROCESS HAS EVOLVED AND KIND OF WHAT WE SEE AS THE OPPORTUNITY HERE AHEAD OF US. 
          AND THEN COVER A COUPLE OF OPERATIONAL AND RECOGNITION ITEMS LIKE I LIKE TO DO EACH TIME WE GET THE OPPORTUNITY TO GET TOGETHER. 
          SO BEGINNING WITH THE, UM, WITH THE, UH, LARGE LOAD FORECAST, UH, I GUESS I'D LIKE TO START BY SAYING, YOU KNOW, 2026 IS REALLY AN IMPORTANT TRANSITIONAL YEAR IN THIS LOAD FORECAST. 
          WE'VE GONE, LAST YEAR WAS ALSO TO SOME DEGREE A TRANSITIONAL YEAR, BUT THIS YEAR I THINK IS THE YEAR WE'RE GONNA ACTUALLY FINISH THAT TRANSITION, UH, TO, UH, A PROCESS AND A STANDARD THAT'S GOING TO HELP CREATE SOME CONSISTENCY IN WHAT WE CAN EXPECT FROM THIS LOAD FORECAST GOING FORWARD. 
          THIS INFORMATION, WHICH YOU SAW YESTERDAY, BREAKS DOWN THE LOAD FORECAST BETWEEN THE, UH, ERCOT ECONOMETRIC FORECAST AND THAT WHICH WAS SUBMITTED BY THE TRANSMISSION SERVICE PROVIDERS, WHICH ARE THE DISCRETE AMOUNTS OF LOAD, UH, IN THE MEDIUM SIZE CATEGORY BETWEEN 25 AND 75 MEGAWATTS, AND THOSE THAT ARE OVER 75, UH, MEGAWATTS. 
          I WANNA UNPACK THE GREEN BARS JUST A LITTLE BIT TO CLARIFY WHAT'S IN THE ERCO ECONOMETRIC LOAD. 
          WHAT WE HAVE IN THERE IS OUR BASE ECONOMIC GROWTH THAT WE EXPECT OVER THIS, UH, TIME HORIZON. 
          THESE ARE IN THE GREEN BARS THAT START AT THAT, UH, 98, 90 TO 98, UH, GIG RANGE, AND THEY EVOLVE TO 111 OVER THE, UH, SIX YEAR PERIOD. 
          WE ALSO HAVE IN THERE, BEYOND THE BASE LOAD, UH, WE'VE GOT ELECTRIC VEHICLE ADOPTION, EXPECTED PHOTOVOLTAIC, ROOFTOP SOLAR ADOPTION, AND THE OFFSET TO, UH, LOAD INCREASES AS A RESULT OF THAT EXPECTED CRYPTO MINING GROWTH AT, AT EXISTING, UH, FACILITIES. 
          SO THE EXISTING FACILITIES THAT ARE ALREADY OPERATING EXPECTED GROWTH. 
          AND THEN THE LAST IS THE POTENTIAL RAMP AT EXISTING, UH, LARGE ELECTRONIC LOADS. 
          SO THAT'S WHY IN 2026, YOU SEE THIS SHADED, UH, SECTION WHERE IT'S A RANGE OF 90, UH, THOUSAND 500 MEGAWATTS UP TO 98,087 MEGAWATTS THAT THOSE ARE AT OPERATING DATA CENTERS TODAY THAT HAVE THE POTENTIAL TO RAMP UP BASED ON THEIR APPROVAL TO ENERGIZE AND TO, UH, ADD LOAD AT THOSE SITES. 
          BUT IT'S SHOWN AS A SHADED BECAUSE THERE IS NOT CERTAINTY AS TO WHEN OR IF THOSE LOADS WILL RAMP UP TO THOSE LEVELS. 
          SO THIS IS A RANGE REPRESENTING THEIR POTENTIAL TO DO SO. 
          AND THAT RANGE EXISTS IN ALL OF THE FUTURE NUMBERS AS WELL, WHERE WE HAVE EXISTING OPERATING SITES THAT THEY COULD INCREASE THEIR AMOUNTS ON THE, ON THE LARGE LOAD SIDE. 
          I WANTED TO PROVIDE A LITTLE BIT OF DETAIL AS TO KIND OF WHAT WENT INTO THIS, BECAUSE I'VE GOT A LOT OF QUESTIONS OVER THE LAST, UH, COUPLE OF WEEKS IN TERMS OF, WELL, IN THE LAST MODEL THAT WE HAD WHEN WE RECEIVED A, HAD A TOTAL FORECAST OF ABOUT 232 GIGAWATTS, AND WE MADE SOME ADJUSTMENTS, UH, TO THAT USING HISTORICAL DEVELOPMENT CYCLES. 
          QUESTIONS AS TO, WELL, WHAT WENT INTO THAT FORECAST THAT WENT INTO THIS ONE? WHAT IS THE CRITERIA DIFFERENCE? WHY DID IT GO UP SO MUCH WHEN THERE WAS A CHANGE IN CRITERIA? SO THE CRITERIA THAT WAS ESTABLISHED, UH, FOR INCLUSION IN THE LARGE ELECTRONIC OR THE LARGE LOAD COMPONENT OF THE FORECAST, UM, THE LOAD NEEDED TO MEET ONE OF THREE CRITERIA IN ORDER TO QUALIFY. 
          ONE, THEY HAD TO EITHER HAVE POSTED A SECURITY IN THE AMOUNT OF A HUNDRED THOUSAND DOLLARS PER MEGAWATT OF CONTRACT AT PEAK. 
          SO THAT'S A FAIRLY SIZABLE, UH, HURDLE THAT THEY WOULD HAVE TO, UH, BE ABLE TO CLEAR, OR, AND THIS IS IMPORTANT, THESE ARE ALL ORS, THIS IS NOT. 
          AND SO THEY HAVE TO MEET ONE OF THESE HURDLES IN ORDER TO BE INCLUDED. 
          THE SECOND IS THAT THEY HAVE TO EITHER, THEY HAVE TO HAVE POSTED A FINANCIAL SECURITY TO THE DISTRIBUTION OF TRANSMISSION SERVICE PROVIDER IN AN AMOUNT THAT WAS EQUAL TO THEIR EXPECTED COST FOR EQUIPMENT THAT HAD A LEAD TIME OF AT LEAST SIX MONTHS, AND THE SERVICES ASSOCIATED WITH INTERCONNECTING THAT LARGE LOAD. 
          SO IF THEY MET THAT CRITERIA, THAT WOULD ALLOW FOR INCLUSION IN THIS FORECAST. 
          AND THEN THE THIRD, IF, IF THERE WASN'T ONE OF THE FIRST TWO, THE THIRD THAT THEY COULD CLEAR WAS A PAYMENT OF A CONTRIBUTION IN NATIVE CONSTRUCTION, OBVIOUSLY, UH, OFTEN CALLED KAYAK IN AN AMOUNT THAT'S 
          [03:00:01]
EQUAL TO THE DISTRIBUTION SERVICE PROVIDERS OR THE TRANSMISSION SERVICE PROVIDERS EXPECTED COST TO INTERCONNECT THAT LARGE LOAD CUSTOMER THAT ARE DIRECTLY ATTRIBUTABLE TO THAT LARGE LOAD CUSTOMER. 
          AND, AND SO THAT COULD INCLUDE THE DEVELOPMENT OF, UH, UH, NEW TRANSMISSION LINES THAT WOULD BE REQUIRED TO SERVE THAT FACILITY. 
          UM, UH, IT COULD BE ANY UPDATES TO THE EXISTING TRANSMISSION NETWORK SPECIFICALLY TO CONNECT THAT CUSTOMER, UH, OR ANY SYSTEM UPGRADE COST THAT WOULD BE DIRECTLY ASSOCIATED WITH THAT CUSTOMER. 
          SO ONE OF THOSE THREE CRITERIA HAD TO BE MET FOR IT TO BE INCLUDED INTO THE FORECAST. 
          AND SO JUST WANTED TO HELP UNPACK THAT A LITTLE BIT BECAUSE THERE'S BEEN A LOT OF DISCUSSIONS ON HOW DID WE GET FROM ONE SET OF NUMBERS, WHICH WAS SOMEWHAT CONSTRAINED COMPARED TO THIS ONE IN SUCH A SHORT PERIOD OF TIME, AND, AND THAT THE REASON IS THE CRITERIA REALLY CHANGED FROM THE LAST ONE TO THIS ONE. 
          UM, THIS FORECAST, I THINK, SHOULD BE CONSIDERED PRELIMINARY AT THIS POINT. 
          UM, AS DISCUSSED IN THE PUC OPEN MEETING LAST FRIDAY, THERE IS CLEARLY A NEED TO BE ABLE TO CHANGE, UH, AND ADJUST THIS TO REFLECT WHAT IS A HIGHER LIKELY REALITY ON WHAT WILL CONNECT INTO THE ERCOT GRID. 
          AND AS WE'VE TALKED ABOUT BEFORE, THIS LOAD FORECAST NUMBER IS SUCH A CRITICAL NUMBER IN TOTAL BECAUSE IT REPRESENTS, UM, UH, THE KEY PIECE OF INFORMATION IN OUR TRANSMISSION PLANNING PROCESSES, UH, IN OUR RELIABILITY STUDY WORK, IN OUR RELIABILITY REPORTING TO NERC IN THE WAY THAT WE SET THE POTENTIAL FOR OUTAGES OF GENERATORS AND TRANSMISSION OPERATORS IN THE FUTURE. 
          IT HELPS TO SET THE BUDGET FOR OUR ORGANIZATION. 
          IT IS A CORE PIECE OF INFORMATION THAT IS USED IN VIRTUALLY ALL OF OUR CORE, UH, PROCESSES. 
          SO WE'VE GOTTA FIGURE OUT HOW TO GET THIS NUMBER RIGHT. 
          THERE IS A RULEMAKING UNDERWAY TODAY THAT IS GOING TO FURTHER CLARIFY AND ESTABLISH LARGE LOAD INTERCONNECTION STANDARD REQUIREMENTS. 
          THAT WORK WILL BE DONE TOWARDS THE END OF THIS YEAR. 
          THAT WILL THEN BE INCORPORATED INTO REQUIREMENTS FOR 2027, WHICH IS WHY I DESCRIBED THIS YEAR AS A TRANSITION YEAR, BECAUSE WE'RE STILL IN THIS INTERMEDIATE STAGE WHERE WE HAD A PORTION OF THE RULEMAKING COMPLETED ASSOCIATED WITH THIS, BUT NOT THE FULL RULEMAKING COMPLETED. 
          ONCE BOTH PIECES ARE DONE, THEN I THINK WE'RE GONNA HAVE A CRISPER AND CLEANER SET OF REQUIREMENTS THAT WILL HELP TO DRIVE WHAT GETS INCLUDED INTO THE FORECAST, AND THEN WHAT DRIVES ALL THE SUBSEQUENT TRANSMISSION PLANNING INVESTMENT REQUIREMENTS. 
          PABLO, I HAVE A QUESTION FOR YOU. 
          YEAH, PLEASE. 
          WOULD IT BE FAIR TO SAY THAT THOSE THREE CRITERIA ARE NOT NECESSARILY ALL EQUAL? ABSOLUTELY. 
          FIRST ONE ABSOLUTELY IS OBVIOUSLY PRETTY CUT AND DRIED. 
          I MEAN, A HUNDRED THOUSAND TIMES YOUR MEGAWATTS IS THE PRIZE. 
          THE OTHER TWO SEEM TO BE FAIRLY SUBJECTIVE OR COULD BE THOUGHT OF AS SUBJECTIVE. 
          IS THAT A FAIR AND, AND THEY'RE, AND THEREFORE MORE DIFFICULT TO ACTUALLY QUANTIFY THE REAL CRITERIA ASSOCIATED WITH THEM? YEAH, I, I THINK THERE'S DEFINITELY DIFFERENT DEGREES OF DIFFICULTY IN CLEARING EACH ONE OF THOSE. 
          THE PRICE HURDLE, WHICH IS THE FIRST ONE, IS A HIGH HURDLE BECAUSE IF YOU'RE LOOKING AT A GIGAWATT SITE, YOU'RE LOOKING AT A HUNDRED MILLION DOLLARS OF SECURITY THAT WOULD HAVE TO BE POSTED TO CLEAR THAT HURDLE. 
          THAT'S A SIGNIFICANT FINANCIAL REQUIREMENT TO BE COUNTED IN A LOAD FORECAST. 
          WHEREAS WORKING WITH A TRANSMISSION SERVICE PROVIDER, YOU MAY FIND THAT FOR YOUR PROJECT, THERE MAY NOT BE A NEED FOR A LOT OF LONG LEAD TIME EQUIPMENT TO BE ORDERED. 
          SO THAT SECOND CRITERIA MIGHT BE MUCH EASIER FOR ONE PROJECT VERSUS ANOTHER ONE, BECAUSE THERE MAY BE VERY LITTLE LONG LEAD TIME EQUIPMENT TO BE ORDERED. 
          SO THEREFORE, THE HURDLE TO CLEAR THAT DEPOSIT REQUIREMENT MIGHT BE SIGNIFICANTLY DIFFERENT. 
          AND THEN KAYAK SIMILARLY, YOU KNOW, DEPENDING ON THE NATURE OF THE PROJECT AND THE, AND THE TRANSMISSION FACILITY. 
          SO ABSOLUTELY, THEY'RE VERY DIFFERENT KINDS OF CRITERIA. 
          OKAY. 
          THE, THE NEXT SLIDE JUST BREAKS THIS DOWN A LITTLE BIT FURTHER INTO THE DIFFERENT TYPES OF LOADS THAT MAKE UP THIS, UH, OVERALL. 
          SO THE, THE TOTAL IS 243, UH, THOUSAND MEGAWATTS. 
          THE, THE BALANCE IS WHAT'S IN THE ERCOT ECONOMETRIC LOAD. 
          AND SO THE BREAKDOWN IS, AS YOU CAN EXPECT, LARGELY IN DATA CENTERS, 228,000 OF THAT IS DATA CENTERS. 
          THAT'S ABOUT 93% OF THE TOTAL. 
          THERE'S NOT A, A BIG NUMBER IN IN ANY OF THE OTHERS, OIL AND GAS. 
          NOT TO GET CONFUSED, THIS DOESN'T MEAN THAT THIS IS THE, THE PERMIAN, UH, FORECAST. 
          THE PERMIAN FORECAST HAS ALREADY BEEN INCORPORATED INTO THE ERCOT BASED LOAD FORECAST AFTER THE WORK DONE LAST YEAR. 
          SO THIS IS NET NEW INCREMENTAL, UH, OIL AND GAS ON TOP OF WHAT WE TALKED ABOUT IN LAST YEAR'S FORECAST. 
          AND THEN A SMALL AMOUNT IN CRYPTO AND IN INDU OTHER INDUSTRIAL PROCESSES. 
          JEFF DID AN OUTSTANDING JOB OF COVERING OUR, UM, OUR LARGE LOAD. 
          I MEAN OUR, UH, YEAH, OUR LARGE LOADING CONNECTION PROCESS. 
          I'M NOT GONNA SPEND A LOT OF TIME ON THIS. 
          I GUESS I JUST WANNA PUT A LITTLE BIT INTO CONTEXT OF HOW THIS HAS EVOLVED. 
          YOU KNOW, PRE 2022, UM, YOU KNOW, LARGE LOADS WOULD WORK DIRECTLY WITH THE TRANSMISSION AND DISTRIBUTION SERVICE PROVIDERS IN ORDER TO, UH, PLAN THEIR INTER THEIR INTERCONNECTION PROCESS. 
          AND THERE WAS NO ERCOT WIDE KIND OF COORDINATION THAT, UH, THAT OCCURRED FOR THIS. 
          AND SO AS DEMAND GREW, THERE WAS A RISK THAT THE SYSTEM WIDE TRANSMISSION RELIABILITY IMPACTS 
          [03:05:01]
WERE NOT BEING FULLY EVALUATED IN THIS PROCESS BEFORE. 
          AND SO IN 2022, WE INTRODUCED AN INTERIM PROCESS INTO HOW TO CONNECT LARGE LOADS. 
          AND IF YOU REMEMBER, WE INITIATED THE LARGE FLEXIBLE LOAD TASK FORCE BACK IN THAT TIME PERIOD. 
          AND, AND LET'S LOOK AT THAT NAME REAL QUICK, LARGE, FLEXIBLE LOADS, BECAUSE THE CONVERSATION BACK THEN WAS MOSTLY AROUND CRYPTO MINING FACILITIES, WAS REALLY WHAT WAS DRIVING A LOT OF THE GROWTH FORECAST AT THAT TIME. 
          AND SO THAT TASK FORCE STARTED TO TAKE ON WHAT WAS MORE OF A NEAR TERM TWO YEAR VIEW ON WHAT NEEDED TO BE CHANGED IN ORDER TO BETTER EVALUATE THE SYSTEM WIDE NEEDS. 
          IT EVOLVED OVER THAT TWO, THREE YEAR PERIOD TO REALLY INCORPORATE THE DATA CENTERS, THE NON CRYPTO DATA CENTERS THAT WERE COMING INTO TEXAS AND TO, UH, YOU KNOW, BE RESPONSIVE TO THEIR NEEDS. 
          BUT INITIALLY IT WAS ALL AROUND, YOU KNOW, LARGE FLEXIBLE LOADS VERSUS, UH, TRADITIONAL DATA CENTERS OR AI DATA CENTERS. 
          SO THOSE, THE MULTIPLE PATHWAYS THAT WERE AVAILABLE THROUGH THAT INTERIM PROCESS STILL LED TO FRAGMENTED STUDIES AND NO SINGLE INTEGRATED VIEW OF THE TRANSMISSION SYSTEM AS PART OF THE INTERCONNECTION PROCESS ITSELF. 
          AND SO THAT LED TO THE INTRODUCTION OF PIGGER ONE 15, WHICH WAS, UH, PUT IN PLACE IN 2025, JUST A LITTLE OVER A YEAR AGO. 
          AND THAT CREATED A UNIFIED PROCESS FOR THE LARGE LOAD INTERCONNECTIONS, BUT IT WAS A SEQUENTIAL PROCESS. 
          UM, YOU KNOW, IT, IT HAD A SINGLE INTERCONNECTION STUDY PROCESS FOR ALL LARGE LOADS, BUT THE PROBLEM WAS THAT THE HIGH VOLUMES THAT STARTED TO COME IN LED TO THIS, UH, RE-STUDY DOOM LOOP THAT WE ARE TRYING, THAT WE ARE STUCK IN TODAY AND WORKING TO GET OURSELVES OUT OF. 
          AND SO WE RECOGNIZED WE NEEDED SOMETHING THAT WAS GONNA HANDLE THE VOLUME THAT WAS EMERGING AS, AS SOON AS THIS PIG BECAME EFFECTIVE, WE REALIZED IT WAS ALREADY OUT OF DATE, GIVEN THE NATURE OF HOW THE GROWTH WAS STARTING TO COME TO THE STATE OF TEXAS. 
          AND SO THAT LED TO WHAT IS NOW PR 1 45 THAT JEFF HAS UNPACKED, UM, PRETTY CLEARLY. 
          AND THIS IS A ONE-TIME SYSTEM-WIDE BATCH STUDY PROCESS FOR ALL LOADS, REGARDLESS OF ENERGIZATION TIMELINES. 
          IT WILL LOOK AT A PERIOD OF FIVE YEARS INTO THE FUTURE AND LOOK TO EFFECTIVELY IDENTIFY THE TRANSMISSION NEEDS AND THE TRANSMISSION AVAILABILITY FOR THOSE LOADS OVER THAT FIVE YEAR PERIOD AND BE AN INPUT INTO THEN A FUTURE BATCH STUDY PROCESS, WHICH IS GONNA BE REGULAR BATCH STUDIES THAT HAVE A CLEAR SET OF, UH, UH, ENTRY KIT CRITERIA. 
          AND THAT WILL INTEGRATE FULLY WITH OUR CURRENT RTP AND RPG TRANSMISSION PLANNING PROCESS. 
          WHERE THIS ALL NEEDS TO LEAD TO IS A CLEAR SET OF CRITERIA COMING INTO, UH, A, A REALISTIC FORECAST. 
          THE PROJECT'S EXPECTED TO MOVE FORWARD, STUDIED AND EVALUATED AGAINST THE TRANSMISSION SYSTEM OF THE NEXT FIVE YEARS, IDENTIFY WHERE INCREMENTAL INVESTMENTS ARE NEEDED TO SERVE THAT, DRIVE THAT INTO A TRANSMISSION PLANNING PROCESS THAT THEN LEADS TO THE TRANSMISSION APPROVALS, THE CCNS AND THE INDIVIDUAL TRANSMISSION SERVICE PROVIDERS MOVING FORWARD WITH EACH OF THOSE PROJECTS BASED ON A FULLY INTEGRATED PROCESS WHERE ALL OF THIS CONNECTS TO RESOURCE ADEQUACY, BECAUSE WE HAD A LITTLE BIT OF THIS CONVERSATION YESTERDAY IS IN THE UNDERLYING ASSUMPTIONS. 
          SO THE UNDERLYING ASSUMPTIONS OF THAT LOAD FORECAST IS THE KEY PIECE OF INFORMATION THAT SITS IN THE RELIABILITY STUDY ANALYSIS, AS WELL AS IN THE BACK STUDY ANALYSIS, AS WELL AS THE EXPECTED GENERATION SUPPLY GROWTH THAT IS GONNA BE USED TO EVALUATE BOTH. 
          AND SO THOSE TWO KEY ASSUMPTIONS WORKING TOGETHER WITH TWO STUDIES MATCHED TOGETHER ARE GONNA GIVE US A MUCH BETTER PICTURE OF WHAT'S NEEDED FOR THE ERCOT MARKET IN TERMS OF INCENTIVIZING A RESOURCE MIX TO MEET RELIABILITY NEEDS OF THE FUTURE, AND LAYING OUT A ROADMAP AND A PLAN FOR TRANSMISSION SYSTEM THAT CAN MEET ALL OF THE NEEDS OF THE EXPECTED GROWTH IN THE SYSTEM AS WELL. 
          AND THAT'S HOW THOSE AND ARE INTENDED TO WORK TOGETHER. 
          I'LL PAUSE THERE IF THERE'S ANY QUESTION, ANY FURTHER QUESTIONS ON THIS, PABLO. 
          SO IS IT FAIR TO SAY, GIVEN WHERE WE'RE AT IN THE TIMING OF THE BATCH ZERO, THAT WHERE WE SIT FOR LIKE THE UPCOMING YEAR IN TERMS OF RESOURCE ADEQUACY AND AND LOAD FORECAST IS NOT GONNA BE OPTIMAL? I MEAN, BECAUSE WE'VE GOT OVERLAPPING PROCESSES, BUT THAT WE WOULD SEE A MUCH ENHANCED PROCESS BY THE TIME WE GET TO THE SAME TIME NEXT YEAR? YEAH, I, I THINK THAT'S A, I THINK THAT'S A FAIR WAY TO PUT IT, BECAUSE WE'LL HAVE HAD THE BENEFIT AT THAT POINT OF HAVING AN ADJUSTED LOAD FORECAST LEVERAGED WITH THE CRITERIA THAT WILL BE FINALIZED IN THE NEXT MONTH OR SO FOR BACK ZERO. 
          AND WE'LL HAVE A SET OF PROJECTS THAT ARE THEN GONNA BE STUDIED, WHICH WILL THEN GIVE US A PICTURE OF WHAT THE EXISTING AND PLAN TRANSMISSION SYSTEM FOR THE NEXT FIVE YEARS CAN SUPPORT. 
          SO THAT IS A, GONNA BE A FIXED, YOU KNOW, YOU KNOW, VALUE IN TERMS OF WHAT'S AVAILABLE. 
          AND THEN YOU COUPLE THAT THEN WITH THE RELIABILITY STANDARD WORK THAT'S GONNA HAPPEN LATER THIS SUMMER, AND YOU'LL HAVE A PICTURE OF WHAT THE POTENTIAL GAPS ARE IN RESOURCES SPECIFIC TO MEET THOSE SAME SET OF ASSUMPTIONS, THE SAME SET OF LOAD GROWTH ASSUMPTIONS. 
          [03:10:01]
AND SO THAT WILL HELP US UNDERSTAND, OKAY, IS THE MARKET DESIGN GONNA GET US TO THE RESOURCE MIX THAT WE NEED, OR WE'RE GONNA HAVE TO MAKE CHANGES TO, TO GET THERE. 
          OKAY, THANK YOU. 
          YEAH. 
          SO BY THE TIME ALL THAT COMES TOGETHER NEXT YEAR, WE SHOULD HAVE THEN AN INTEGRATED SET OF ASSUMPTIONS AND INPUTS THAT HELP TO MAKE THIS A MUCH SMOOTHER PROCESS. 
          PABLO, THIS IS A VERY GOOD PRESENTATION AND I ESPECIALLY APPRECIATE JEFF'S WORK. 
          UH, THIS SLIDE ADDRESSES PHASES OF POTENTIAL CHANGES FOR THE LARGE LOAD INTERCONNECT PROCESS. 
          IF, IF WE WERE GONNA DRAW ON TOP OF IT THE PROCESS WE ARE RUNNING IN THE BACKGROUND FOR LARGE LOADS IN THE INTERCONNECTION PROCESS, WE'RE ACTUALLY STILL USING THE PRE 2022 PROCESS. 
          IS THAT NOT CORRECT? WE'RE ACTUALLY USING THE PIGGER ONE 15 PROCESS, PIGGER ONE 15 PROCESS, YEAH. 
          ONE 15 PROCESS. 
          SO IF I'M A LARGE LOAD, AM I STILL MOVING THROUGH THE PROCESS ACCORDING TO PIGGER 1 1 5? YEAH, I THINK THE SHORT ANSWER IS YES, BUT I IF FOR A BETTER LONGER ANSWER, LEMME LET JEFF ANSWER. 
          YEAH, THAT'S RIGHT. 
          SO THE, IF YOU ARE A LARGE LOAD TODAY, THEN YOU ARE GOING THROUGH THE PICKER ONE 15 PROCESS, THAT THAT PROCESS WILL END ON JULY 10TH. 
          IT, IT ASSUMING, UH, A DRAFT OF PICKER 1 45, THAT THAT'S WHAT GETS ADOPTED, THAT PROCESS WILL END ON JULY 10TH. 
          SO I I, I DO THINK THAT THERE ARE TSPS AND LOADS THAT ARE LOOKING AT THAT AND UNDERSTAND THAT IT, IF THEY START THE PROCESS TODAY, THEY MAY NOT BE ABLE TO FINISH THAT. 
          BUT IF YOU ARE IN THE MIDDLE OF THAT PROCESS, THEN THOSE LOADS ARE TRYING TO COMPLETE THAT PROCESS BEFORE JULY 10TH SO THAT IT SETS THEM UP FOR THEIR POSITION AND GOING INTO BATCH ZERO. 
          YEAH. 
          OKAY. 
          THANK YOU FOR THOSE QUESTIONS. 
          UM, WE, THERE IS ANOTHER OPERATIONAL CHANGE THAT I WANT TO, UH, JUST HIGHLIGHT BRIEFLY IF YOU'RE FAMILIAR. 
          WE EVERY, YOU KNOW, SEASON, UH, THAT WE GO THROUGH MAINTENANCE CYCLES, THE SPRING MAINTENANCE CYCLE, AND THE FALL MAINTENANCE CYCLE. 
          THIS IS WHEN GENERATORS AND TRANSMISSION OPERATORS TAKE THE OPPORTUNITY UNDER LOWER LOAD SCENARIOS TO BE ABLE TO DO MAINTENANCE ON THEIR POWER PLANTS AND ON THE TRANSMISSION SUBSTATIONS AND LINES. 
          AND IT'S CRITICAL THAT WE PLAN OUT HOW MUCH OF THAT OUTAGE CAN BE MANAGED ON A DAY-TO-DAY BASIS THROUGHOUT A SEASON IN ORDER TO ENSURE WE KEEP RELIABILITY THROUGHOUT THE SEASON. 
          AND SO WE HAVE HISTORICALLY USED A PROCESS, UH, AFFECTIONATELY CALLED THE MURDER POCK, BUT IT ACTUALLY STANDS FOR THE MAXIMUM DAILY RESOURCE PLANNED OUTAGE CAPACITY. 
          IT'S A GREAT ACRONYM. 
          UM, AND WE ARE REPLACING THAT WITH A NEW PROCESS THAT IS BEING INSTITUTED THIS, UH, THIS SEASON THAT'S CALLED THE RESOURCE PLANNED OUTAGE LIMIT. 
          AND THAT IS WHAT'S SHOWN HERE, IS THE NEW RPA, UH, PROCESS THAT WE'VE GOT. 
          THE FUNDAMENTAL DIFFERENCES BETWEEN THESE TWO IS THAT THE, UM, THE, THE M-D-R-P-O-C PROCESS WAS REALLY, UH, MORE OF A, A STATIC DETERMINISTIC APPROACH TO LOOKING AT THE FUTURE EXPECTATIONS OF, UH, CAPACITY FOR TAKING OUTAGES. 
          AND WHAT WE WANTED TO INTRODUCE WAS MORE OF A RISK-BASED PROBABILISTIC ANALYSIS THAT KIND OF EXPOSES THE RISK ON A DAILY, ON A DAILY BASIS THROUGHOUT A PERIOD SO THAT WE CAN HAVE A BETTER OPTIMIZATION OF THE OUTAGE WINDOWS FOR THOSE THAT ARE TAKING OUTAGES TODAY. 
          WE'RE NOT AS RESPONSIVE AND FLEXIBLE TO THE NEEDS OF THE GENERATORS AND THE TRANSMISSION OPERATORS BECAUSE OF THE DETERMINISTIC APPROACH WE'VE BEEN USING. 
          THIS IS GONNA GIVE US, I THINK, A MUCH MORE RICH SET OF INFORMATION TO ANALYZE RISK AND USE A MORE PROBABILISTIC ANALYSIS ON THE POTENTIAL RISKS DURING THE, DURING THE SPRING SEASON TO PROVIDE THOSE OUTAGE WINDOWS. 
          SO THIS IS A CHANGE, UH, THIS SPRING THAT I THINK IS GONNA HELP WITH, UH, WITH THAT OPPOR THAT IMPORTANT OPERATING PROCESS IN OUR, UH, SEASONAL WORK. 
          AND THEN I'M GONNA WRAP WITH A COUPLE OF, UH, QUICK HIGHLIGHTS. 
          UM, FIRST OFF, WE HAD OUR INNOVATION SUMMIT, UH, LAST MONTH. 
          REALLY, REALLY GREAT TURNOUT. 
          OVER 805 ATTENDEES, UH, THIS YEAR, MORE THAN, UH, 560 OF THEM WERE IN PERSON. 
          WE, UH, HAD A, A BROAD RANGE OF, UH, OF, UH, PANELS AND SESSIONS. 
          I OPENED IT UP WITH A, WITH A KEYNOTE CONVERSATION THAT CHAD MODERATED, UH, BETWEEN MYSELF AND FINON. 
          SLY FINON IS THE CEO OF THE, UH, NATIONAL ELECTRIC SYSTEM OPERATOR. 
          THIS IS THE GRID OPERATOR FOR GREAT BRITAIN. 
          AND WE HAD A GREAT CONVERSATION ABOUT SOME OF THE CONTRASTING CHALLENGES AND OPPORTUNITIES BETWEEN OUR RESPECTIVE GRIDS. 
          AND FROM THERE WE DOVE INTO CONVERSATIONS AROUND ARTIFICIAL INTELLIGENCE, OUR INNOVATION PROGRAMS. WE TALKED ABOUT OUR INNOVATION ROADMAP AND WHERE WE'RE HEADED. 
          WE HEARD FROM ISO ISO INNOVATIONS FROM AROUND THE ISO COMMUNITY AND, UM, AND ALSO HAD A LIVE WIRE Q AND A WITH EXECUTIVES FROM THE, UH, FROM THE ERCOT TEAM. 
          REALLY, REALLY GOOD FEEDBACK ON THIS. 
          WE ARE ALREADY IN THE PROCESS OF PLANNING OUR NEXT INNOVATION SUMMIT. 
          EACH ONE HAS CONTINUED TO GET BETTER WITH BROADER PARTICIPATION AND DEEPER AND RICHER CONVERSATIONS AROUND THE OPPORTUNITIES THAT INNOVATION IS GONNA PLAY IN DRIVING SUCCESS IN, UH, IN OUR INDUSTRY. 
          [03:15:03]
AND I JUST WANNA BRING EVERYONE'S ATTENTION TO OUR LATEST, UM, STATE OF THE GRID REPORT. 
          THIS QR CODE CAN BE SCANNED, IS AVAILABLE FOR, UH, FOR THE DIGITAL COPY. 
          AND, YOU KNOW, THIS REPORT HIGHLIGHTS REALLY HOW THE OVERALL MARKET AND THE GRID HAS EVOLVED OVER THE LAST YEAR. 
          THIS IS THE SECOND ANNUAL REPORT WE'VE PUBLISHED. 
          WE'RE GONNA MAKE THIS AN ANNUAL OCCURRENCE. 
          UM, YOU KNOW, WE HAVE BEEN EXPERIENCING THE FASTEST GROWTH AMONG ANY GRID IN THE UNITED STATES FROM 24 TO 25. 
          SO WE'VE ALWAYS BEEN A FAST-GROWING GRID, BUT WE HAVE REALLY TAKEN OFF IN RECENT YEARS. 
          IT TALKS ABOUT OUR RELIABILITY INVESTMENTS, OUR INNOVATION FOCUS. 
          IT HIGHLIGHTS, UH, THE GROWTH THAT WE'RE SEEING, NOT ONLY ON THE DEMAND SIDE, BUT ALSO ON THE GENERATION SIDE. 
          UM, WE SAW MORE THAN, YOU KNOW, 16,000 MEGAWATTS OF POWER ADDED TO THE ERCOT GRID IN 2025. 
          A TREMENDOUS, UH, ACCOMPLISHMENT, MORE THAN 500 MILES OF NEW TRANSMISSION LINES ADDED OR UPGRADED. 
          AND SO I ENCOURAGE YOU TO READ THROUGH THIS REPORT. 
          IT'S A BRIEF READ, GIVES YOU A NICE SNAPSHOT ON REALLY WHAT'S BEEN THE FOCUS AND THE PROGRESS OF THE ERCOT GRID OVER THE 2025 PERIOD. 
          AND I WANNA CLOSE WITH A, YOU KNOW, A SIGNIFICANT THANK YOU TO ALL OF THOSE INVOLVED WITH HELPING TO PUT TOGETHER THAT INNOVATION SUMMIT. 
          UH, ESPECIALLY I WANNA CALL OUT, UH, UH, PRASHANT, UH, BISHNU, VENKAT, CHARLOTTE SCHUSTER, ALL OF YOU SPENT A TREMENDOUS AMOUNT OF TIME MAKING SURE THAT WE HAD A REALLY WELL STRUCTURED PROGRAM, UH, READY FOR, UH, WHAT WAS TRULY A PRIME TIME CONFERENCE TYPE EVENT. 
          AND SO THANK YOU VERY MUCH FOR ALL THE INVESTMENT OF TIME AND WORK TO MAKE THAT HAPPEN. 
          AND I'LL, THAT CONCLUDES MY COMMENTS CHAIR. 
          UM, AND IF THERE ARE ANY QUESTIONS, I'M WELCOME TO TAKE ANY FOLLOW UP QUESTIONS. 
          OKAY. 
          ANY QUESTIONS FOR PABLO? OKAY, GREAT REPORT, PABLO. 
          AND, UH, CONGRATS ON THE, UH, GREAT INNOVATION SUMMIT. 
          THANK YOU CHAIR FORRES, AND TO THANKS TO THE TEAM FOR PUTTING THAT TOGETHER. 
          ALRIGHT, WE'LL MOVE TO THE NEXT AGENDA ITEM. 
          [13. Consent Agenda]
AGENDA. 
          ITEM 13 IS A CONSENT AGENDA, INCLUDING ITEM 13.1 UNOPPOSED REVISION REQUEST RECOMMENDED BY ATTACK FOR APPROVAL. 
          CHAD, PLEASE WALK US THROUGH THE, UH, BUDGET IMPACTS OF THE, UH, REVISION REQUEST. 
          OKAY, CHAIRMAN, THIS IS A PRETTY SHORT CONSENT AGENDA. 
          SEVEN REVISION REQUESTS FOR APPROVAL. 
          TWO OF THEM HAVE MINOR BUDGET IMPACTS, LESS THAN 50,000. 
          THAT'S NPR ONE THREE TWO THREE, AND O-B-D-R-R 55. 
          NONE OF THEM HAVE A FTE IMPACT. 
          HAPPY TO ANSWER ANY QUESTIONS. 
          ANY QUESTIONS? ANY QUESTIONS FOR CHAD ON THE CONSENT AGENDA? ANY DISCUSSION ON THE CONSENT AGENDA? UH, IF THERE'S NO FURTHER DISCUSSION, I'LL ENTERTAIN A MOTION TO APPROVE THE CONSENT AGENDA AS REQUESTED. 
          SOMEONE, KATHLEEN AND LINDA, THANK YOU. 
          UH, ALL IN FAVOR? AYE. 
          AYE. 
          ANY OPPOSED? ANY ABSTENTIONS? THE CONSENT AGENDA IS 
          [14. Update on Board Priority Revision Requests: NPRR1309, Dispatchable Reliability Reserve Service Ancillary Service, and NOGRR282, Large Electronic Load Ride-Through Requirements]
APPROVED. 
          NEXT IS AGENDA ITEM 14, THE UPDATE ON BOARD PRIORITY REVISION REQUEST NPRR 1309 DISPATCHABLE RELIABILITY RESERVE ANCILLARY SERVICE AND GERD 2 82, LARGE ELECTRONIC LOAD RIDE THROUGH REQUIREMENTS. 
          UH, KEITH COLLINS, JEFF BILLOW, AND TAC CHAIR CAITLYN SMITH ARE PRESENTING. 
          UH, KEITH, JEFF AND TA KATLIN. 
          CAITLYN, PLEASE PROCEED WHEN READY. 
          THANK YOU, MR. CHAIR. 
          I'M KEITH COLLINS WILL COVER THE, UH, NPR 1309 AND, UH, JEFF WILL COVER THE, UH, 1308. 
          SO BACK IN DECEMBER, THE BOARD HAD IDENTIFIED NPR 1309, WHICH IS RESPONSIVE TO, UH, THE HOUSE BILL 1500, UH, TO DEVELOP A DISPATCHABLE RELIABILITY RESERVE SERVICE. 
          UH, WE HAVE HAD SEVERAL DISCUSSIONS IN THE STAKEHOLDER PROCESS. 
          WE HAVE HELD WORKSHOPS, UH, THAT FOCUSED ON BOTH NPR 1309 AND NPR 1310 IN JANUARY, FEBRUARY AND MARCH. 
          THERE WAS A-P-U-C-T STAFF, UH, MEMO AND PRESENTATION AT THE COMMISSION A FEW WEEKS BACK, UH, WHERE THERE WAS DISCUSSION ABOUT HOW TO PROCEED WITH ENERGY STORAGE RESOURCES. 
          THERE WAS DISCUSSION IN THE STAKEHOLDER PROCESS THAT HAD PROCEEDED THAT AS TO WHETHER OR NOT THAT SHOULD BE INCLUDED IN NPR 1309. 
          UH, THE MEMO HAD HAD RECOMMENDED NOT, UH, ADDING, UH, THE ENERGY STORAGE RESOURCES TO 1309 AND THAT, UH, IT SHOULD BE CARVED OUT OF NPR 1310 INTO A SEPARATE NEW NPR. 
          I CAN STATE THAT WE ARE ACTIVELY WORKING, UH, ON A, UH, WE HAVE A, AN ADVANCED DRAFT AT THIS POINT. 
          WE EXPECT THAT TO BE AVAILABLE IN THE COMING WEEKS, UH, TO HAVE THAT NEW, UH, NEW NPR. 
          UH, AND, AND ULTIMATELY THE MODIFIED 1310 AS WELL. 
          UH, 1310, UH, 1309, UH, WAS VOTED ON AT THE LAST PRS MEETING, WHICH WAS ON APRIL 15TH. 
          [03:20:01]
AND OUR UNDERSTANDING IS THAT ATTACK VOTE IS LIKELY AT THE APRIL 29TH MEETING. 
          THERE ARE, THERE IS AN OUTSTANDING ITEM THAT IS STILL TO BE DRESSED, UH, THAT WILL BE DISCUSSED AT THE TAC IN TERMS OF, HAS TO DO WITH THE ANCILLARY SERVICE DEMAND CURVES, AND PARTICULARLY THE, THE FLOOR ASSOCIATED WITH THAT. 
          AND, UH, WE EXPECT THERE TO BE SOME FURTHER DISCUSSION. 
          BUT, UH, WE, WE DO ANTICIPATE THAT, UH, THE VOTE IS LIKELY AT THE NEXT TAC MEETING ON APRIL 29TH. 
          AND THE FINAL POINT ON NPR 1310, THAT WAS, UH, THAT REMAINS TABLED UNTIL THE RELIABILITY STANDARD ASSESSMENT, WHICH WILL TAKE PLACE LATER THIS SUMMER. 
          AND SO THAT ONE IS, IS THAT ONE DID NOT HAVE URGENT STATUS, AND THAT ONE WILL PROCEED ON, ON A SEPARATE TIMELINE. 
          SO I'LL PAUSE AND SEE IF THERE ARE ANY QUESTIONS THAT YOU HAVE FOR ME. 
          SO I THINK WHAT YOU'RE SAYING IS THERE'LL BE ANOTHER NPRR 1311 OR SOMETHING THAT WILL INCLUDE THE BATTERIES, IS THAT THERE WILL BE ANOTHER ONE, IT'LL PROBABLY BE IN THE 1330S, LET'S SAY, BUT YES, IT WILL HAVE, UH, THE ESR AS A, AS A SEPARATE ITEM. 
          YES. 
          COULD YOU SHARE A LITTLE BIT MORE ABOUT THE RATIONALE OF WHY WE NEED TO WAIT ON THE RELIABILITY STUDY? WELL, I THINK THE, THE THOUGHT THERE WAS, THERE, THERE WAS A COUPLE REASONS, BUT I THINK THE, THE PRIMARY REASON IS THE TIMING ON 1310, IT DID NOT HAVE THE URGENT STATUS. 
          THE 1309, ON THE OTHER HAND, DID RECEIVE THE THIRD, THE URGENT STATUS. 
          AND GIVEN THE, UH, THE PLETHORA OF, OF DIFFERENT ITEMS THAT THE STAKEHOLDERS WERE WORKING ON, FOCUSING ON 1309, AND THE OTHER ITEMS TO GET IT TO THE JUNE BOARD, UH, FELT MORE DOABLE THAN TRYING TO ALSO CONCURRENTLY DO 1310. 
          SO THAT WAS ONE OF THE REASONS WHY, UH, AND THERE WERE A FEW OTHERS. 
          WELL, I'M ASKING TECHNICALLY, WHAT ARE WE GONNA LEARN FROM THE RELIABILITY STUDY THAT WILL ADD VALUE TO 1310? SO THAT'S, THAT'S SORT OF THE SET. 
          THAT WAS ANOTHER REASON WHY IT WAS DELAYED WAS WHEN WE DID OUR INITIAL ANALYSIS OF, UH, 1310 WITH AURORA. 
          THERE WAS THE, THE WAY THAT IT WAS STUDIED WAS, UM, IT IS SORT OF A CARTON HORSE TYPE OF ISSUE WHERE THE NPR WASN'T DONE, BUT WE WERE DOING A STUDY BEFORE YOU HAD THE NPR WRITTEN. 
          AND SO NOW THAT WE HAVE THE NPR WRITTEN, WHAT YOU'LL LEARN ADDITIONALLY IS HOW DOES THOSE SPECIFIC REQUIREMENTS AS DETAILED SPECIFICALLY, HOW IS THAT, UH, HOW IS, CAN WE DO AN ANALYSIS OF, OF THAT? AND THAT'S WHAT'S GONNA HAPPEN DURING THE RELIABILITY STANDARD ASSESSMENT. 
          AND SO IT'S, IT'S POSSIBLE IT'LL BE VERY SIMILAR TO THE INITIAL STUDY, BUT, BUT, UH, OR AT LEAST SIMILAR, BUT THE, UH, THERE WAS A, UH, A DESIRE IN THE STAKEHOLDER PROCESS TO, TO LOOK AT THAT SPECIFICALLY. 
          OKAY. 
          IS IT JUST TURNER? THANK YOU. 
          OKAY. 
          CALIN, IF, IF YOU DON'T MIND, I WAS GONNA WEIGH IN HERE. 
          UM, KAITLYN SMITH, UH, CHAIR OF THE TECHNICAL ADVISORY COMMITTEE. 
          I JUST, SINCE THIS IS THE FIRST TIME I'M SPEAKING, I WOULD NOTE AT THE OUTSET, UH, MARTHA AND I HAVE BEEN PLANNING ON HOW TO HANDLE ALL THE PRIORITY NPRS AND GERS, UH, REALLY HAVING DISCUSSIONS SINCE LAST DECEMBER, AND WE DIDN'T WANT TO OVERWHELM OURSELVES AT THE LAST MINUTE. 
          AND THAT WAS BEFORE WE GOT TO THE BATCH LOAD PICKER. 
          SO, UH, THANK YOU, UH, CHAIRMAN GLEASON FOR THAT ONE. 
          BUT REALLY, UH, WE HAVE SCHEDULED A LOT OF ADDITIONAL STAKEHOLDER WORKSHOPS. 
          MARTHA'S MADE A LOT OF DETAILED CHARTS. 
          UM, AND AS WE LOOK AT THE TIME BETWEEN NOW AND, AND JUNE, WE HAVE A REGULAR APRIL TECH MEETING NEXT WEEK, WE HAVE A SPECIAL TECH MEETING, MAY 12TH, AND THEN WE HAVE TURNED OUR REGULAR MAY TECH MEETING INTO A TWO DAY EVENT. 
          AND SO, UH, WE, WE LEARNED THIS FROM KEITH, YOU KNOW, WE'RE PUTTING US BP ON NOTICE THAT WE CAN HAVE LONGER AND MORE FUN MEETINGS AS WELL. 
          SO THAT'S ANOTHER THING WE ARE ACCOMPLISHING. 
          AND, YOU KNOW, USUAL THANK YOU TO MARTHA HENSON, WHO'S THE TECH VICE CHAIR, BLAKE HOLT, THE WMS CHAIR, AND DIANA COLEMAN, THE PRS CHAIR. 
          AND, UH, ANN, WHO STILL REALLY LIKES MY PHONE CALLS. 
          UM, SO ON 1309, THE PRS HAS TAKEN A VOTE ON THIS. 
          AND THE, THE EFFECT OF THE URGENCY WAS THAT IT DOESN'T NEED TO GO BACK TO PRS FOR ANOTHER VOTE. 
          TYPICALLY IT WOULD BE TWO VOTES. 
          UM, AND SO WE DO EXPECT TO TAKE A VOTE ON IT AT AT T NEXT WEDNESDAY. 
          AT THE PRS, THERE ARE A LOT OF DISCUSSIONS ON TWO ISSUES THAT WERE CHANGED IN THE IMM JOINT, IMM OR CAUGHT COMMENTS AHEAD OF THE MEETING. 
          THOSE WERE, AS KEITH SAID, THE, THE CHANGING OF THE PRICE FLOOR AND THE DRRS, UM, A SDC AS PART OF INCLUDING DRS AND THE METHODOLOGY FOR AGGREGATING DISAGGREGATING, THE A-O-R-D-C AND CREATING THOSE INDIVID INDIVIDUAL DEMAND CURVES. 
          AND THEN, UM, THERE HAD BEEN A CHANGE IN THE COMMENTS TO THE NONS SPIN 
          [03:25:01]
DURATION UPON IMPLEMENTATION OF D-R-S-P-R-S ESSENTIALLY DIDN'T ACCEPT THAT EDIT THAT CHANGED THE NONS SPIND DURATION. 
          AND THEY DID ACCEPT THE, THE CHANGE TO THE PRICE FLOOR, BUT THERE SEEMED TO STILL BE DISCUSSION OUTSTANDING ON THE PRICE FLOOR. 
          I, I BELIEVE WE WILL SEE IMM COMMENTS AHEAD OF TAC AND MAYBE COMMENTS FROM OTHER PARTIES. 
          AND SO I, I THINK WE WILL TAKE A VOTE ON THIS ATTACK NEXT WEEK. 
          UM, I THINK WE'LL HAVE SOME SUBSTANTIVE DISCUSSION, BUT, BUT I EXPECT THIS TO BE ENDORSED AT ATTACK NEXT WEEK. 
          OKAY. 
          GOOD. 
          ANY QUESTIONS? YEAH, REMIND, REMIND US THE DURATION QUESTION ON THE NONS SPIN WAS FOUR TO EIGHT HOURS. 
          IS THAT WHAT IT WAS? THE DURATION ON NONS SPIN IS CURRENTLY FOUR HOURS. 
          WE EXPECT THAT THE DURATION ON DRS WILL BE FOUR HOURS. 
          SO THE THOUGHT WAS THAT UPON IMPLEMENTATION OF THE, THE FOUR HOUR PRODUCT IN DRRS, THAT WE COULD LOWER THE NONS SPEND DURATION TO TWO HOURS. 
          THAT HAD BEEN THE PROPOSAL AND, AND THE IMM AND ERCOT COMMENTS. 
          OKAY. 
          PRS DID, DID NOT EXPECT ACCEPT THOSE THOUGH. 
          SO WE WILL, UM, AS IT STANDS, IT WOULD BE FOUR HOURS FOR NONS SPEND. 
          WE DO HAVE, YOU KNOW, 18 MONTHS, TWO YEARS UNTIL DRS UM, IMPLEMENTATION. 
          SO WHAT WAS SUGGESTED WAS THAT WE CONTINUE TO HAVE THOSE DISCUSSIONS, ESPECIALLY IN THE ANCILLARY SERVICE METHODOLOGY. 
          AND I GUESS FOLLOW UP QUESTION, I KNOW, I KNOW THAT YOU PERSONALLY WANTED TO SEE THE BATTERIES IN 1309. 
          ARE YOU OKAY WITH THIS SORT OF PHASED APPROACH OR? I AM. 
          OKAY. 
          SO ON BEHALF OF JUPITER, I'M OKAY WITH WHAT, WHAT I BELIEVE THE COMMISSION DIRECTED. 
          SO WE RECEIVED A COMMISSION, UH, OPINION OR DIRECTION AT AN OPEN MEETING IN THE COURSE OF THAT, WHICH I UNDERSTOOD TO BE A, A SEPARATE NPRR SO THAT WE COULD REALLY HAVE ROBUST DISCUSSIONS AROUND STATE OF CHARGE AND DURATION, BUT TO IDEALLY BE IMPLEMENTED AT THE SAME TIMEFRAME AS DRS GO LIVE. 
          OKAY, THANK YOU. 
          BECAUSE, YOU KNOW, WE DO HAVE, WE NEED TO GET STARTED ON IMPLEMENTATION, BUT WE DO HAVE SORT OF A LONG I IMPLEMENTATION TIME, UM, AND SOMEBODY FROM ERCOT COULD CORRECT ME IF I'M WRONG, TO CONTINUE TO DISCUSS THINGS LIKE DURATION, ESPECIALLY CHANGES TO, TO OTHER SERVICES. 
          THANK YOU. 
          AND THEN I GUESS, UH, I, I COULD ADD TO THE EARLIER QUESTION ON, UH, 1310, THE, THE STAKEHOLDER DISCUSSION, THERE WAS LARGELY COMMENTS, UM, THAT WERE OPPOSED TO, TO 1310. 
          WE DID GET SOME COMMENTS IN SUPPORT, BUT THE COMMENTS THAT WERE IN SUPPORT DIDN'T SAY, YOU KNOW, WE LOVE DRS PLUS, THEY SAID, WE NEED A RESOURCE ADEQUACY MECHANISM, YOU KNOW, AS SOON AS POSSIBLE. 
          WE DON'T KNOW IF IT'S THIS. 
          SO WITH THE TIMING OF THE RELIABILITY STANDARDS STUDY BEING A COUPLE MONTHS FROM NOW, STAKEHOLDERS FELT THAT HAVING THAT INFORMATION WOULD BE HELPFUL TO THOSE DISCUSSIONS. 
          OKAY. 
          THANK YOU, CAITLYN. 
          ALRIGHT, ANY QUESTIONS FOR, UH, KEITH? JEFF OR CAITLYN ON 1309 AND 2 82? JEFF STILL NEEDS TO DO 2 82. 
          OH, OKAY. 
          ALRIGHT, JEFF. 
          ALL RIGHT. 
          THANK YOU. 
          GOOD MORNING. 
          SO AGAIN ON, UM, NPR 1308 AND NORE 2 82. 
          I BRIEFLY MENTIONED THIS YESTERDAY IN, IN MY UPDATE, BUT THE BACKGROUND ON THIS IS, UH, THE, THERE'S THIS PHENOMENA WHERE WHEN WE HAVE SYSTEM DISTURBANCES ON THE GRID, THAT THE, UH, LARGE ELECTRONIC LOADS THEY CAN, UH, TRIP OFF. 
          AND IF YOU GET TOO MANY OF THEM TRIPPING OFF AT THE SAME TIME, THEN THAT CAN CREATE INSTABILITY ON THE SYSTEM. 
          UM, AND, AND SO WE, UH, INTRODUCED IN NOVEMBER, UH, THE NPRR AND THE NOER, UH, THE, THE BULK OF THE REQUIREMENTS ARE LAID OUT IN THE NOER. 
          UH, THE 1308 JUST HAS THE, UH, DEFINITION AND, AND SOME LATE BREAKING NEWS IS THAT, UH, WHAT WE WERE CALLING A LARGE ELECTRONIC LOAD. 
          UH, WE'VE ACTUALLY CHANGED THAT NAME, UH, TO LARGE COMPUTATIONAL LOAD. 
          UM, AND, AND SO WE WILL, THIS PRESENTATION, IT'S STILL LEL, BUT YOU'LL, YOU'LL SEE IT LCL GOING FORWARD. 
          UM, AND, AND SO WE'VE, UH, THE, THE, IN DECEMBER, THE BOARD DESIGNATED THESE AS PRIORITY REVISION REQUESTS. 
          UH, BEEN WORKING, UH, THROUGH THE STAKEHOLDER PROCESS WITH THESE, UM, AT, UH, AP AT THE APRIL 2ND, ROS MEETING, UH, ROS ENDORSED, UH, BOTH THE NPRR AND THE NGER WITH, UH, UH, 93%, UH, APPROVAL ON, IN BOTH OF THOSE, UH, THEY DID HAVE SOME, UM, ABSTENTIONS IN ADDITION TO THE, THE NO VOTES. 
          UM, AND THEN, UH, MORE LATE BREAKING NEWS. 
          SO PRS VOTED ON THE NPRR, UH, LAST WEEK, AND THEY ALSO, UH, APPROVED THE, UM, UH, OR ENDORSED THE, UH, NPRR AND I THINK IT WAS ROUGHLY, UH, 93%, UH, APPROVAL AS 
          [03:30:01]
WELL. 
          SO THESE ARE, UH, BOTH ON TRACK FOR THE JUNE, UH, BOARD MEETING. 
          UM, I WANTED TO GIVE A LITTLE BIT OF COLOR AROUND THE COMMENTS THAT WE'VE RECEIVED. 
          AND, YOU KNOW, MAYBE WHAT, WHY, WHY DID WE HAVE THE ABSTENTIONS AND THE NO VOTES? UH, SO I THINK WHAT WE HEARD WAS, UM, THAT, UH, THERE, THERE WERE NO, A COUPLE OF ISSUES. 
          SO ONE IS PER KAT'S, UH, A AUTHORITY TO BE ABLE TO PLACE REQUIREMENTS ON CUSTOMERS. 
          SO THIS IS PUTTING REQUIREMENTS THAT THE, THE LOADS THEMSELVES THAT THEY ARE ABLE TO RIDE THROUGH, UH, THESE, THESE NORMAL VOLTAGE DISTURBANCES THAT HAPPEN, HAPPEN ON THE GRID RIDE THROUGH, MEANS THAT THEY WOULD NOT TRIP OFFLINE, THAT THEY'D STAY CONNECTED IN, IN CONSUMING POWER. 
          UH, SO THAT, THAT THE FIRST ISSUE WAS THAT ER ER'S ABILITY TO PUT THOSE REQUIREMENTS ON THE CUSTOMERS. 
          UM, AND THEN, UH, I THINK THAT THE SECOND ISSUE THAT GOT A LOT OF DISCUSSION AT THE SUBCOMMITTEE LEVEL WAS ON THE EXEMPTION DATE. 
          AND, UH, SO THERE WERE SUGGESTIONS THAT WE MOVE THAT EXEMPTION DATE FORWARD. 
          UH, HOWEVER, ERCOT SEES A RISK TO THAT, UH, SINCE THAT, UM, THAT NOVEMBER 14TH DATE, IF WE WERE TO MOVE THAT TO EVEN APRIL 1ST, THEN WE WOULD HAVE AN ADDITIONAL 14 GIGAWATTS OF LOADS THAT WOULD BE EXEMPT FROM THESE REQUIREMENTS. 
          AND THAT JUST CREATES MORE LOADS THAT WOULD POTENTIALLY BE ON THE SYSTEM THAT WOULD, UM, EXACERBATE THAT RISK. 
          AND, AND SO WE DON'T SEE THAT AS REALLY TENABLE. 
          UM, AND, AND THEN THROUGH THE, THE COMMENT PROCESS, SEVERAL STAKEHOLDERS HAD TECHNICAL COMMENTS IN WHICH WE ATTEMPTED TO ADDRESS THROUGH LANGUAGE CHANGES. 
          UM, SO THAT'S, THAT IS, UH, ALL THAT I HAVE. 
          AGAIN, THESE ARE ON TRACK FOR JUNE, UH, BOARD CONSIDERATION. 
          OKAY, THANK YOU, JEFF. 
          UH, CAITLIN, OR ANY QUESTIONS FOR JEFF? OKAY. 
          CALIN, UM, SAME THING. 
          UH, THE, THESE ARE ON TRACK TO BE VOTED AT TAC NEXT WEEK. 
          UM, WE HAVE THIS NOTICE FOR A VOTE. 
          WE'LL HAVE DISCUSSION, BUT I WOULD BE A LITTLE BIT LESS SURPRISED IF THIS ONE ISN'T READY FOR A, A VOTE AT TAC NEXT WEEK THAN DRSI. 
          I THINK WE WILL ATTEMPT IT. 
          UM, BUT WE DO HAVE TIME WITH THOSE SPECIAL TAC MEETINGS IN MAY. 
          YOU KNOW, I THINK JEFF ACCURATELY CONVEYED THESE POLICY POINTS FROM A STAKEHOLDER POINT OF VIEW AS WELL. 
          UM, THE, THE DATE IS AN OUTSTANDING ISSUE. 
          PEOPLE ARE DISCUSSING OR COUNCIL'S AUTHORITY TO PLACE REQUIREMENTS ON END USE. 
          CONSUMERS IS STILL UP FOR DISCUSSION. 
          AND THEN SOME OF THE, THE TECHNICAL ISSUES AS WELL. 
          UM, I THINK WE'RE WELL POSITIONED FOR A VOTE, BUT, BUT IF THERE IS, UH, YOU KNOW, COMMENTS OR OR ATTEMPT TO TO TABLE THIS, I THINK WE WOULD STILL BE WELL POSITIONED TO GET THIS TO JUNE BOARD. 
          OKAY. 
          ANY QUESTIONS FOR CAITLIN ON 2 82? OKAY. 
          UH, KAITLIN, UH, WHY DON'T YOU STAY THERE? YOU'RE NEXT. 
          UH, WE'RE GONNA, 
          [15. TAC report]
UH, SEGUE TO AGENDA ITEM 15, THE TAC REPORT, AND KAITLYN IS GONNA MAKE THAT PRESENTATION IS READY. 
          ALL RIGHT. 
          I'M JUST SO MUCH SHORTER THAN JEFF IS. 
          ALRIGHT. 
          UM, SO HERE'S OUR REGULAR TECH REPORT AND WE WILL BE PRESENTING ON THE ISSUES WE'VE TACKLED IN FEBRUARY AND MARCH TAX. 
          SO, AS CHAD NOTED, WE HAD SORT OF A SHORT LIST OF REVISION REQUESTS. 
          THEY WERE ALL UNOPPOSED. 
          HERE IS THE LIST OF THOSE SEVEN REVISION REQUESTS. 
          UM, I THINK AS YOU HAVE, UM, GATHERED SO FAR, WE HAVE REALLY INCREASED FOCUS ON ONGOING PRIORITY REVISION REQUESTS AND RPG PROJECTS. 
          IN, IN THIS TIME THOUGH, HERE ARE OUR FEBRUARY MARCH TECH HIGHLIGHTS. 
          UM, WE CONFIRMED THE 2026 PRS VICE CHAIR. 
          UM, WE, WE HAD CONFIRMED ONE IN JANUARY, BUT THE PREVIOUS VICE CHAIR, UH, WAS OFFERED ANOTHER OPPORTUNITY AT CONSTELLATION. 
          THAT WAS ANDY WYNN. 
          HE IS, UH, SORT OF A MARKET DESIGN EXPERT AND HAD BEEN INTEGRAL TO OUR STAKEHOLDER COMMITTEE, SO WE MISS ANDY. 
          UM, BUT WE DID GET A REALLY EXPERIENCED AND GREAT LEADER TO STEP UP ERIC BLAKEY. 
          AND SO WE CONFIRMED ERIC AS THE 2026 PRS VICE CHAIR ON LLWG LEADERSHIP. 
          THIS WAS JUST A LATE CONFIRMATION THE WAY THE THE TAC AND LLWG MEETINGS LINED UP. 
          WE WEREN'T ABLE TO DO THIS BEFORE THE FEBRUARY BOARD. 
          UM, WE VOTED UNANIMOUSLY TO APPROVE BOB WHITMEYER FROM LONG LONGHORN POWER AND, UH, PATRICK GVO FROM ERCOT. 
          THEY ARE BOTH RETURNING IN THOSE ROLES. 
          UM, AS YOU WOULD EXPECT, THIS IS A WORKING GROUP WITH THE MOST STAKEHOLDER ENGAGEMENT AND INTEREST. 
          SO WE'RE, WE'RE GRATEFUL FOR ALL THE TIME THEY SPEND ON THAT. 
          WE SUNSET THE, UH, REALTIME CO-OP OPTIMIZATION PLUS BATTERIES TASK FORCE. 
          [03:35:01]
AS YOU GUYS ARE WELL AWARE. 
          UH, WE WENT LIVE WITH, UH, REALTIME CO-OP OPTIMIZATION IN DECEMBER. 
          UM, WE USE A TASK FORCE INSTEAD OF A, A WORKING GROUP WHEN IT'S SORT OF A LIMITED DURATION, UH, PROJECT. 
          AND, UH, WHEN IT'S ALSO CROSS-FUNCTIONAL, SO WE DON'T HAVE TO GO TO, YOU KNOW, WHOLESALE MARKET AND RELIABILITY COMMITTEES. 
          WE HAD KEPT THIS COMMITTEE OPEN A LITTLE BIT LONGER AFTER GO LIVE, JUST TO MAKE SURE WE SORT OF HAD THE LIST OF ALL THE ISSUES THAT WE STILL NEEDED TO TACKLE A LOT OF THINGS, UM, THAT MAYBE WERE LAST MINUTE CORRECTIONS OR A LOT OF THINGS THAT WERE NOT MAYBE CRITICAL PATH TO RTC THAT WE SAID WE COULD DO LATER, OR REQUIRED SOME EXPERIENCE OR SOME DATA FROM RTC. 
          MOST OF THOSE ITEMS WILL MOVE TO THE WHOLESALE MARKET SUBCOMMITTEE, THE REGIONAL PLANNING GROUP ITEMS. UH, CHRISTIE, YOU KNOW, COMPREHENSIVELY COVERED THESE YESTERDAY. 
          UM, I'LL TAKE 'EM UP A LITTLE BIT OUT OF ORDER ON THE, THE CHARTER. 
          AS CHRISTIE NOTED YESTERDAY, UM, THIS CHANGE WAS TO REFLECT NPRR 1274, WHICH PASSED THE BOARD IN DECEMBER OF LAST YEAR. 
          UH, THE, THE CHANGE UPDATED THE MONEY VALUES FOR INFLATION AND, AND THOSE VALUES QUALIFY RPG PROJECTS FOR DIFFERENT TIERS OF REVIEW. 
          UH, I THINK I'M NOTING THAT FIRST TO HIGHLIGHT THAT THE, THE PROCESS FOR RPG REVIEW IS MORE SPECIFIED AND, AND FORMALIZED IN SOME OF OUR OTHER PROCESSES. 
          AND, AND THE BOARD, YOUR APPROVAL OF RPG PROJECTS IS, IS VERY MEANINGFUL AS A REGULATORY ACTION. 
          IT, IT MAY BE THE ONLY ACTION A PROJECT ON A TRANSMISSION PROJECT UNTIL WE GET TO A CCN OR UNTIL WE GET TO THAT COMPREHENSIVE RATE CASE. 
          SO AT TECH, WE'RE REALLY TAKING SERIOUSLY OUR ROLE TO REVIEW AND TO INFORM YOU. 
          UM, AND OF COURSE, WITH ALL THE LOAD GROWTH WE'RE SEEING, WE ARE SEEING GREATER QUANTITY OF PROJECTS AND GREATER INTEREST IN PROJECTS. 
          SO THE KIND OF NUMBER OF OUR DISCUSSIONS AND, AND THE TIME WE'RE SPENDING ON THIS HAS INCREASED. 
          WE'VE SPENT A LOT OF TIME IN THE LAST PRESENTATION AND EARLIER TALKING ABOUT THE PRIORITY REVISION REQUESTS THAT WE WILL GET TO YOU BY JUNE. 
          WE ALSO HAVE, I I AM TOLD SIX RPG PROJECTS BETWEEN NOW AND JUNE. 
          YOU KNOW, TYPICALLY LIKE TODAY YOU'RE SEEING ZERO TO TWO FROM TAC AT A BOARD MEETING. 
          SO BECAUSE OF THE, THE LOAD GROWTH, YOU, YOU ALL ARE, YOU ARE SEEING MORE OF THESE RPG PROJECTS. 
          SO THE SPECIFIC PROJECTS, UM, THE STACK PROJECT, THIS IS THEIR SECOND AMMONIA PROJECT. 
          AS, AS CHRISTIE NOTED ALSO THE, UM, ENCORE SOUTH DALLAS PROJECT. 
          UM, CHRISTIE ALSO SPOKE WELL TO THIS ORIGINALLY WAS AN ENCORE PROJECT SUBMITTED IN EARLY 2025. 
          SORT OF OTHER PROJECTS WERE ADDED TO THIS ONE. 
          I THINK IT SERVES ABOUT FOUR GIGAWATTS OF LOAD. 
          YOU KNOW, SERVING LOAD LIKE THAT IS, IS VERY GOOD AND TECH MEMBERS ARE JUST ENSURING THAT THEY'RE ASKING THE RIGHT QUESTIONS ABOUT, YOU KNOW, HOW DO WE GET FROM THE STARTING POINT TO THE ENDING POINT OF THESE PROJECTS. 
          UM, THE PRIORITY ITEMS, WE JUST SPOKE TO THESE, UM, YOU KNOW, I, I DO BELIEVE 1309 WILL BE ENDORSED BY TAC NEXT WEEK NOIR 2 83 AND, AND 1308, YOU KNOW, MAY MAYBE, MAYBE TABLED AT THAT MEETING, BUT WE WILL HAVE DISCUSSION. 
          AND I, I THINK PROBABLY A VOTE, THE BATCH LOAD PROJECT ERCOT AS, AS YOU HAVE HEARD ALREADY, HAS HELD SEVERAL BATCH LOAD WORKSHOPS. 
          UM, AND WE HAVE JUST STARTED CONSIDERING THESE REVISION REQUESTS AT VOTING GROUPS AS WELL. 
          UM, THE AUDIENCE IS SORT OF SLIGHTLY DIFFERENT, RIGHT AT THE, THE LOAD WORKSHOPS. 
          WE'RE GETTING A LOT OF THESE LOAD DEVELOPERS WHO ARE INTERESTED, INTERESTED SPECIFICALLY IN THIS, THEY MAY HAVE LESS EXPERIENCE WITH ERCOT AND ESPECIALLY ERCOT STAKEHOLDER WORK. 
          AND THEN AT THE VOTING GROUPS, YOU KNOW, THOSE, THOSE LOAD DEVELOPERS HAVE KIND OF LIMITED SEATING AS WE ALL DO, RIGHT? IT'S STRUCTURED SO THAT EACH SEGMENT HAS A LIMITED AMOUNT OF VOTING PEOPLE. 
          AND SO THERE'S SORT OF A TRANSITION TO GET EVERYBODY EDUCATED TO BE ABLE TO VOTE. 
          ERCOT DID JUST A PHENOMENAL JOB AT THAT, ROSS, YOU KNOW, REALLY GOING THROUGH THE BACKGROUND AND, AND EVERYWHERE WE'VE BEEN AND WHAT THE OUTSTANDING ISSUES ARE. 
          UM, SO, SO I THINK WE'RE MAKING REALLY GOOD PROGRESS. 
          THE, THE TARGET DATE FOR VOTING THOSE OUT OF ROSS IS MAY 7TH. 
          AND THEN WE WOULD HAVE THOSE AT THE, THE MAY 12TH OR MAY 20, MAY 19TH AND 20TH ATTACK MEETINGS. 
          AND SO THESE, UM, YEAH, GOING HERE, SO WE ARE AT THE, UM, 4 29 TAC MEETING FOR DRS. 
          SO I THINK WE'LL NOT NEED THOSE ADDITIONAL PRS MEETINGS, SO WE CAN GET, UM, 
          [03:40:01]
MAYBE A COOKIE OR MAYBE CHAD WILL LET OR GOT BY HIS DINNER FOR OUR TWO DAY TAC MEETING. 
          UM, AND THEN ON THE BATCH PROCESS, WE ARE HERE AND WE ARE TARGETING THAT, UM, ROSS MEETING ON MAY 7TH, AND THEN THE, THE TECH MEETING. 
          SO I THINK WE ARE EXACTLY AS PLANNED. 
          ANY QUESTIONS FOR CAITLYN? OKAY. 
          CALY, ANYTHING ELSE FOR YOU? I THINK THIS IS ENOUGH. 
          QUITE ENOUGH? YEAH. 
          YEAH. 
          . 
          OKAY. 
          WELL, CHAD WILL BUY, UH, THE DINNER. 
          DON'T WORRY ABOUT THAT. 
          UH, I'LL SPEAK ON YESTERDAY THAT, THAT'S WHY I ASKED ON THIS MICROPHONE. 
          WHAT'S THAT? THAT'S WHY I ASKED WHILE YOU WERE LISTENING. 
          YEAH. 
          UH, ANYWAY, THE, UH, I WANT TO THANK YOU AND MARTHA AND ALL OF THE TECH TEAM FOR WHAT YOU'VE BEEN DOING. 
          I MEAN, YOU'VE REALLY BEEN LEANING IN ON A LOT OF SPECIAL PROJECTS WITH SHORT TIME TABLES AND IT'S, UH, BEEN A VERY VALUE ADDED TO THE PROCESS. 
          THANK YOU. 
          AND I, I HIGHLIGHTED MOST OF THE MEMBERS, BUT, UM, THE ROSS CHAIR, SANDEEP BOKAR HAS SINCE HIS FIRST YEAR TO CHAIR AND HE'S REALLY JUMPED IN AND IT, IT'S BEEN, I'VE BEEN REALLY IMPRESSED. 
          AND ERCOT STAFF, UM, JEFF IS, IS AVOIDING MY EYE CONTACT, BUT ERCOT STAFF HAS BEEN REALLY PHENOMENAL ON, ON THESE ISSUES WITH US TOO. 
          THAT'S GREAT. 
          THANK YOU. 
          ALRIGHT, 
          [16. Reliability Monitor Update ]
WITH THAT WE'LL MOVE TO AGENDA ITEM 16, THE RELIABILITY MONITOR UPDATE. 
          THIS IS A STANDING ITEM THAT WE RECEIVE ONCE A YEAR TO DISCUSS THE HIGHLIGHTS OF RELIABILITY MONITOR PROGRAM. 
          ANDY GALLO WILL PRESENT THIS. 
          ANDY, THANK YOU. 
          GOOD MORNING. 
          AS YOU MENTIONED, THIS IS A, A SOMETHING WE DO EVERY YEAR IN APRIL AND, UM, OH, I GUESS I'M TALLER THAN CAITLYN. 
          THERE YOU GO. 
          UM, AND SO THE PURPOSE OF THIS MEETING OR THIS PRESENTATION IS TO UPDATE YOU ALL ABOUT THE ACTIVITIES THAT WE, THE RELIABILITY MONITOR HAS HAD IN THE PAST YEAR OR SINCE THE LAST TIME YOU WERE UPDATED. 
          THERE'S NO ACTION OR ANYTHING THAT WE'RE ASKING FOR. 
          IT'S FOR DISCUSSION PURPOSES ONLY. 
          UM, THE KEY TAKEAWAYS FROM THE PRESENTATION IS THAT WE HAVE OPENED 460 INVESTIGATIONS OF MARKET PARTICIPANTS AND ERCOT, UH, SINCE WE TOOK OVER THIS ROLE IN NOVEMBER, 2022. 
          OF THOSE WE'VE REFERRED 215 TO THE PUBLIC UTILITY COMMISSION'S ENFORCEMENT DIVISION, UH, SOME OF WHICH RESULTED IN SIGNIFICANT FINES, WHICH WILL BE, I WILL MENTION LATER, UM, DUE TO THE HIGH INTAKE VOLUME, AS YOU CAN SEE, THERE'S BEEN A LOT OF, UH, INCIDENT REVIEWS OPENED. 
          UH, WE DID WORK WITH THE PUC ENFORCEMENT STAFF TO CREATE WHAT WE'VE CALLED A STREAMLINED PROCESS FOR LOWER OR, UH, LOWER RISK OR LOWER IMPACT MATTERS. 
          AND WE'VE HAD ABOUT 78 OF THESE INCIDENT REVIEWS THAT HAVE FALLEN INTO THAT CATEGORY. 
          WE JUST FOUND THAT WE WERE, WE AND THE COMMISSION STAFF WERE BEING SORT OF OVERWHELMED WITH ALL OF THESE MATTERS, AND THEY WEREN'T A ONE SIZE FITS ALL. 
          SOME OF 'EM ARE JUST ADMINISTRATIVE AND RELATIVELY STRAIGHTFORWARD MATTERS, AND SO THAT CREATE LESS RISKS. 
          SO WE DECIDED TO TRY AND CREATE THIS STREAM OR NOT TRY TO, WE DID CREATE A STREAMLINED PROCESS TO ADDRESS THOSE. 
          SO A LITTLE BIT OF BACKGROUND ON THE RELIABILITY MONITOR AND ITS RESPONSIBILITIES UNDER, UH, THE TEXAS ADMINISTRATIVE CODE SECTION THAT YOU SEE THERE. 
          UH, THE, THE RELIABILITY MONITOR UNDER THE COMMISSION'S DIRECTION AND SUPERVISION MONITORS, INVESTIGATES AUDITS AND REPORTS TO THE COMMISSION ON RELIABILITY RELATED REQUIREMENTS. 
          SO THESE ARE BASICALLY JUST THE KEEPING THE LIGHTS ON KIND OF THINGS. 
          THESE ARE NOT, YOU KNOW, SETTLEMENT ISSUES OR, YOU KNOW, REGISTRATION ISSUES. 
          THIS IS, THIS IS THE KEEPING THE LIGHTS ON KIND OF STUFF. 
          AND WE ALSO PROVIDE SUBJECT MATTER ADVICE, EXPERTISE, ANALYSIS REPORTS AND TESTIMONY IF NEEDED DURING ENFORCEMENT PROCEEDINGS. 
          UH, IN THE TIME THAT WE'VE BEEN DOING THIS SINCE NOVEMBER, 2022, THERE HAVE BEEN NO, UH, ENFORCEMENT HEARINGS OR ANYTHING THAT WE'VE BEEN INVOLVED IN. 
          WE HAVE WORKED QUITE A BIT WITH ENFORCEMENT STAFF ON BACK AND FORTH WITH QUESTIONS, UH, WHERE THEY'VE ASKED US TO MAYBE SUPPLEMENT SOME OF THE INFORMATION THAT WE'VE SENT. 
          SO THE BOTTOM LINE HERE IS THAT THE RELIABILITY MONITOR'S GOAL IS TO SUPPORT THE ENFORCEMENT DIVISION OVER AT THE COMMISSION ON COMPLIANCE, AND THAT WE ACT INDEPENDENTLY OF ERCOT ITSELF. 
          SO ERCOT INC IF YOU THINK OF IT THAT WAY, WE HAVE ESTABLISHED SOME PROCEDURES, UH, FOR HANDLING THESE MATTERS AS THEY GET BROUGHT TO OUR ATTENTION. 
          THE FIRST STEP BEING THAT, UH, WE RECEIVE SOME INFORMATION REGARDING POSSIBLE NON-COMPLIANCE. 
          AND THEN THE FIRST STEP THAT WE DO IS, IS IT RELIABILITY RELATED, AS I WAS MENTIONING EARLIER, IS IT, IS IT A KEEPING THE LIGHTS ON KIND OF ISSUE? UH, IF IT IS, THEN IT MOVES ON FOR AN INCIDENT REVIEW BY THE RELIABILITY MONITOR. 
          IF IT IS NOT RELIABILITY, UH, RELATED, THEN WE, WE REFER IT OVER TO ERCOT 
          [03:45:01]
LEGAL STAFF WHO HANDLE IT DURING THE NORMAL PROCEDURES THAT THEY USE FOR COMPLIANCE MATTERS, UM, WITHIN ERCOT. 
          SO BASICALLY WE TRIAGE THESE INCIDENTS OF POTENTIAL NON-COMPLIANCE AND THEN, UH, AND THEN SEND THEM ON THE PATHS AS I'VE DISCUSSED. 
          AND THE IMPORTANT THING TO REALIZE HERE, OR TO KEEP IN MIND HERE IS THAT WE'RE ONLY LOOKING AT STATE LEVEL REQUIREMENTS. 
          THIS IS UNDER THE PUBLIC UTILITY REGULATORY ACT. 
          PUBLIC UTILITY COMMISSION RULES AND, UH, ERCOT PROTOCOLS, OPERATING GUIDES AND OTHER BINDING DOCUMENTS. 
          IN OTHER WORDS, IF IT'S NERC RELATED, IF IT'S FEDERAL, UH, IT GOES TO ERCOT COMPLIANCE. 
          AND OF COURSE, IF IT'S AN ENFORCEMENT MATTER, IT WOULD GO TO TEXAS RELIABILITY ENTITY. 
          NOW, THE FIRST STEP IN THAT PROCESS, AS I MENTIONED, IS THAT WE RECEIVE INFORMATION REGARDING A POSSIBLE NON-COMPLIANCE. 
          HOW DO WE RECEIVE THOSE? COULD BE ANY NUMBER OF WAYS. 
          UH, ONE COULD BE A DIRECT NOTIFICATION BY A MARKET PARTICIPANT, A SELF-REPORT. 
          UH, WE HAVE HAD, MY RECOLLECTION IS AT LEAST TWO OF THOSE IN THE TIME WE'VE BEEN WORKING ON, ON THESE MATTERS. 
          UH, IT COULD BE THAT PUBLIC UTILITY COMMISSION ENFORCEMENT STAFF ASKS US TO INVESTIGATE A PARTICULAR ISSUE, UM, OR PERHAPS EVEN A ERCOT OPERATIONS PERSON, THEY MAY CALL AND SAY, HEY, WE'RE HAVING A PROBLEM WITH THIS ONE, YOU KNOW, ENTITY THAT DOESN'T SEEM TO BE COMPLYING WITH THE REQUIREMENTS. 
          AND SO THEY'LL, THEY'LL REFER THE MATTER TO US. 
          UM, BUT IT CAN ALSO BE THROUGH RE ROUTINE, ROUTINE COMPLIANCE MONITORING THAT WE DO. 
          UH, AND ERCOT DOES. 
          SO THE ERCOT COMPLIANCE OFFICE DOES REGULAR, UH, MONTHLY REVIEW OF OPERATOR LOGS, MIS DATA, ALL THAT KIND OF STUFF. 
          AND, AND WE ALSO, AS THE RELIABILITY MONITOR, DO SOME OF THAT. 
          AND THE VAST MAJORITY OF THESE INCIDENTS THAT WE'VE HAD, UH, SINCE NOVEMBER, 2022, HAVE INVOLVED EITHER ERCOT STAFF FINDING IT, UH, THROUGH ROUTINE COMPLIANCE MONITORING OR RELIABILITY MONITOR STAFF FINDING AN ISSUE BASED ON THIS ROUTINE MONITORING THAT WE DO. 
          IT'S NOW TURNING OUR ATTENTION TO, UH, THE 2026 ACTIVITIES THAT WE'VE GOT GOING ON RIGHT NOW IN THE RELIABILITY MONITOR. 
          THE FIRST THING IS WE ARE WORKING ON REFRESHING, UH, THE PUBLIC WEBPAGE. 
          IF YOU GO TO, UH, ERCOT PUBLIC WEBPAGE ERCOT.COM AND YOU GO TO THE ABOUT AREA, YOU'LL SEE A LINK THERE FOR THE RELIABILITY MONITOR PROGRAM. 
          AND, UH, IT'S BEEN PRETTY MUCH THE SAME PAGE SINCE WE FIRST STARTED UP BACK IN, UH, LATE 2022. 
          SO WE'RE TRYING TO DO A REFRESH AND MAYBE FIND SOME OR, UH, POST SOME MORE RELEVANT INFORMATION. 
          WE ALSO PLAN THIS YEAR TO DO SOME MORE TRAINING FOR ERCOT EMPLOYEES AND MARKET PARTICIPANTS. 
          WHEN WE FIRST TOOK UP THIS ROLE, UH, AND I THINK IT WAS MID 2023 OR SO, WE HAD SOME WORKSHOPS WHERE WE EXPLAINED ALL OF THE GOINGS ON OF THE ERM AND ITS ROLE, UH, AND RESPONSIBILITIES BOTH TO ERCOT EMPLOYEES INTERNALLY SO THEY COULD UNDERSTAND THE IMPORTANCE OF REFERRING MATTERS OVER TO THE RELIABILITY MONITOR AND FOR MARKET PARTICIPANTS SO THAT THEY COULD UNDERSTAND THE ROLE THAT WE WERE UNDERTAKING. 
          WE WANT TO DO THAT AGAIN NOW, UH, THIS YEAR AS SORT OF A REFRESHER OR ANOTHER OPPORTUNITY FOR NEW FOLKS, UH, IN THIS SPACE. 
          WE ALSO HAVE A COUPLE OF AUDITS GOING ON. 
          UH, WE ARE ER, UH, AUDITING ERCOT WEATHERIZATION INSPECTIONS UNDER THE PUBLIC UTILITY COMMISSION RULE 25 POINT 55, UH, JUST TO MAKE SURE THAT ERCOT IS DOING WHAT IT'S SUPPOSED TO DO UNDER THE WEATHERIZATION REQUIREMENTS IN THAT RULE. 
          AND THEN WE ARE, UH, AUDITING RESOURCE ENTITY COMPLIANCE WITH AUTOMATIC VOLTAGE REGULATOR TESTING REQUIREMENTS. 
          THERE IS A REQUIREMENT IN THE, UH, OPERATING GUIDES FOR, UH, RESOURCES TO TEST THEIR AVS ON A RECURRING BASIS. 
          AND SO WE ARE MAKING SURE THAT, UH, THERE IS EVIDENCE THAT THAT WORK IS BEING DONE. 
          AND THEN OF COURSE, THERE'S JUST THE ONGOING INCIDENT REVIEWS OF POTENTIAL VIOLATIONS THAT I WAS TALKING ABOUT EARLIER. 
          WE THOUGHT IT MIGHT BE HELPFUL FOR YOU TO SEE SOME PERFORMANCE METRICS, UH, BASED ON THE 460 TOTAL INCIDENT REVIEWS THAT WE HAD THROUGH THE END OF MARCH OF THIS YEAR. 
          UH, WHEN WE GET THESE INCIDENTS REVIEWS IN, WE PRIORITIZE THEM, UH, AS EITHER CRITICAL, HIGH, MEDIUM, LOW, OR WHAT WE CALL SERP, WHICH IS THE STREAMLINED INCIDENT REVIEW PROCESS. 
          UM, AND YOU CAN SEE THERE THAT, UM, AS YOU WOULD EXPECT, THERE'S A BELL CURVE, UM, THAT MOST OF THE, UH, PRIORITIES ARE MEDIUM, UH, BUT WE HAVE, UH, A SHARE OF ALL OF THOSE. 
          AND THEN FOR STATUS, UH, ON THE RIGHT HAND SIDE THERE, YOU CAN SEE THAT WE'VE GOT, UH, SOME THAT WERE CLOSED. 
          BASICALLY WE DID AN INITIAL INVESTIGATION, DETERMINED THERE WAS NO POTENTIAL VIOLATION AND JUST CLOSED THE MATTER. 
          UH, WE HAVE, YOU KNOW, CLOSE TO 200 STILL IN PROGRESS. 
          UH, THEN WE HAVE THAT GROUP THAT WE, THAT I MENTIONED, HAVE BEEN REFERRED TO THE COMMISSION, AND THEN, UH, THERE'S A LITTLE OVER 50 WITH 
          [03:50:01]
THE ENFORCEMENT, UH, AT THE COMMISSION OPEN, AND IT LOOKS LIKE RIGHT ABOUT 50 WHERE THE ENFORCEMENT OVER AT THE COMMISSION HAS BEEN COMPLETED. 
          SO THE KEY TAKEAWAY HERE BEING THAT OF THOSE 460 INCIDENT REVIEWS, WE'VE REFERRED ABOUT 215 OF THEM OVER TO THE ENFORCEMENT DIVISION. 
          AND, UH, THAT HAS YIELDED APPROXIMATELY $5.2 MILLION IN ADMINISTRATIVE PENALTIES, UH, ISSUED BY THAT, UH, COMMISSION STAFF THROUGH THE ENFORCEMENT PROCEDURE. 
          GOT A QUESTION, WHAT HAPPENS TO THOSE PENALTY DOLLARS? MY UNDERSTANDING IS THEY JUST GO INTO THE STATE'S GENERAL FUND. 
          THAT'S, THAT'S CORRECT. 
          ADMINISTRATIVE PENALTIES BY LAW FOR ALL STATE AGENCIES GO INTO THE GENERAL FUND. 
          I KEEP TRYING TO LOBBY FOR A BONUS FOR THE RELIABILITY MONITOR, BUT I GET A LOT OF CRICKETS. 
          SO JUST ONE MORE QUESTION PLEASE. 
          YEAH. 
          SO, UH, THIS GRAPH, UH, ON THE PRIOR PAGE GOES FROM NOVEMBER 22 TO MARCH 26. 
          YEAH. 
          THIS PAGE, THE PRIOR ONE. 
          YEAH. 
          HOW LONG DOES A INSTANT REVIEW TYPICALLY TAKE? WHAT'S THE KIND OF, WHAT'S THE TIMELINE FOR IT MOVING THROUGH YOUR PROCESS? I CAN'T SAY ANYTHING OTHER THAN IT DEPENDS. 
          80 20 RULE, UM, MONTHS, I WOULD SAY IT'S DEFINITELY MONTHS. 
          UM, WE HAVE WORKED WITH COMMISSION STAFF, THE ENFORCEMENT STAFF TO, TO PRIORITIZE THESE THINGS, RIGHT? SO YOU'LL, THAT'S WHY YOU'LL NOTICE, WELL, I GUESS YOU CAN'T REALLY SEE IT IN THIS DATA. 
          I COULD SHOW IT IN DATA THAT WE KEEP, UH, ON OUR SHAREPOINT SITE. 
          MOST OF THE ONES THAT GO LONG ARE THE LOWER IMPACT ONES, RIGHT? WE, WE PRIORITIZE IF IT'S A CRITICAL IMPACT, ONE, WE TRY TO MO WE DON'T TRY TO, WE MOVE IT UP TO THE TOP AND WE PUT MORE ATTENTION TO THAT. 
          WHAT WE HAVE HAD IS, AND WE'VE LEARNED OVER TIME SINCE NOVEMBER, 2022, WE'VE HAD TO HIRE MORE STAFF. 
          IT'S THE, THE NUMBER WAS JUST TOO MUCH FOR WHAT WE HAD AT THE BEGINNING. 
          SO WE DID GET SORT OF A BOTTLENECK, BUT WE ARE ALMOST FULLY STAFFED NOW. 
          WE SHOULD BE ABOUT MID-MAY COMPLETELY STAFFED BOTH ON THE COMPLIANCE SIDE AND ON THE LEGAL SIDE, AND HOPE THAT THEY WILL START MOVING EVEN FASTER. 
          THANK YOU. 
          I HOPE THAT HELPS. 
          YEAH, THIS WAS, I THOUGHT, PROBABLY GONNA BE ONE OF THE MOST INTERESTING SLIDES FOR MARKET PARTICIPANTS AND FOR THE BOARD. 
          AND THAT IS, UH, WE PUT TOGETHER THIS LIST OF THE MOST FREQUENT KINDS OF VIOLATIONS OR POTENTIAL VIOLATIONS THAT WE'VE UNCOVERED, UNCOVERED BASED ON THOSE 460 INCIDENT REVIEWS. 
          AND YOU CAN SEE BY FAR, UH, PRIMARY FREQUENCY RESPONSE LEADS THE PACK, AND THEN VOLTAGE SUPPORT SERVICE COMES IN NEXT. 
          AND OF COURSE THEN YOU CAN SEE THE REST OF THEM, UH, ALL THE WAY DOWN TO WHERE WE'VE LUMPED TOGETHER OTHER, UM, I THOUGHT, I PERSONALLY THOUGHT THIS WAS INTERESTING, JUST SO THAT YOU COULD SEE THE KINDS OF THINGS THAT WE'RE, WE'RE SEEING, THAT WE'RE SEEING ON A MORE REGULAR BASIS FROM A TRENDING STANDPOINT. 
          AND THEN, UH, I'D ALSO LIKE TO TALK A LITTLE BIT ABOUT OUR BUDGET FOR CALENDAR YEAR 2025. 
          AND I'M NOT SURE BUDGET, ACTUALLY, AS I THINK ABOUT IT IS THE RIGHT WORD. 
          IT'S ACTUAL EXPENDITURES. 
          UM, WE, WE SPENT A LITTLE OVER $2 MILLION, AS YOU CAN SEE THERE, UH, WHICH IS JUST A, A HAIR MORE THAN IT WAS IN 2024. 
          I THINK THAT'S LIKE 0.8% OR SOMETHING. 
          I DID THE MATH, UH, UH, EARLIER OR LAST WEEK. 
          UM, THOSE COSTS ARE, UH, BROKEN DOWN INTO BASICALLY THREE TIERS. 
          UM, THERE'S THE DIRECT COSTS, WHICH IS THINGS LIKE, UH, OR THINGS THAT ARE DIRECTLY AND SOLELY ATTRIBUTABLE TO THE PROGRAM, LIKE OUR SALARIES AND BENEFITS AND EMPLOYEE EXPENSES. 
          UH, AS OF RIGHT NOW WE HAVE 7.8 FTES, UH, WORKING ON THESE MATTERS. 
          UM, AND THEN AS YOU CAN SEE THERE, WE HAVE TIER ONE INDIRECT COSTS AND TIER TWO INDIRECT COSTS. 
          UM, SOME TIER ONE IS ON DISCRETE DRIVERS THAT AREN'T DIRECTLY OR SOLELY ATTRIBUTABLE TO THE RELIABILITY MONITOR. 
          AND THEN, UH, TIER TWO IS, UH, SORT OF THE MORE GENERAL ACCOUNTING COSTS, CORPORATE COMMUNICATIONS, CYBERSECURITY, THE THINGS THAT SORT OF GO ACROSS ALL OF ERCOT THAT WE SH THAT WE ARE PARTLY RESPONSIBLE FOR. 
          SO YOU CAN SEE THE NUMBER IS, UH, IS STAYING RELATIVELY STABLE, UH, FROM YEAR TO YEAR. 
          AND THEN I GUESS I WON'T REALLY TALK ABOUT THESE 'CAUSE THESE ARE APPENDICES, BUT THIS IS THE, UH, THE, THE SETTLEMENTS. 
          SO THIS IS OBVIOUSLY IN YOUR PACKET OF INFORMATION. 
          SO THIS IS THE SETTLEMENTS THAT I TALKED ABOUT, UM, THAT ARE EITHER, UH, ACTUALLY RECOVERED SO FAR OR THAT ARE PENDING. 
          AND THAT'S THAT $5.2 MILLION THERE AT THE END, YOU CAN SEE. 
          SO, UH, WITH THAT, UM, THAT'S ALL I HAVE PREPARED AND I'D BE WILLING TO ANSWER ANY QUESTIONS IF YOU HAVE THEM. 
          THANK YOU. 
          ANDY. 
          ANY QUESTIONS FOR ANDY? YOU'RE WELCOME. 
          OKAY. 
          QUESTION IF I COULD, DO WE SEE REPEAT VIOLATORS OUT OF CURIOSITY? AND HOW FREQUENTLY DOES THAT HAPPEN? AND ARE THE ADMINISTRATIVE PENALTIES ADEQUATE ENOUGH 
          [03:55:01]
IN YOUR OPINION? WOW. 
          UM, YES, WE ABSOLUTELY SEE REPEAT OFFENDERS. 
          WE SEE A LOT OF REPEAT OFFENDERS. 
          I COULD GIVE YOU A LIST OF, YOU KNOW, OUR PROBLEM CHILDREN, UH, PRETTY EASILY BASED ON, YOU KNOW, THE RECORDS THAT WE KEEP. 
          UM, AND THEN, YOU KNOW, ARE THE PENALTIES SUFFICIENT? I, I DON'T, I MEAN, THAT'S MORE OF AN ENFORCEMENT DIVISION QUESTION. 
          UM, I MEAN, I COULD TELL YOU AS, YOU KNOW, SOMEBODY WHO WORKS FOR ERCOT AND IS INTERESTED IN THE IDEA OF KEEPING THE LIGHTS ON. 
          UH, I KNOW THAT, UM, JB YOU KNOW, FROM FROM DICE HAS OFTEN SAID, UH, UH, AND BARKSDALE, UH, HIS PREDECESSOR IN THAT ROLE HAVE BOTH SAID THEY'RE REALLY NOT AS MUCH INTERESTED IN FINDING COMPANIES AS GETTING THEM INTO COMPLIANCE. 
          SO I KNOW A LOT OF THE TIMES WHAT THEY'LL DO AS PART OF A SETTLEMENT IS THERE WILL BE A FINE, BUT THEN MAYBE THEY HAVE TO HIRE A COMPLIANCE PERSON OR THEY HAVE TO ESTABLISH A COMPLIANCE OFFICE, OR THEY HAVE TO IMPLEMENT INTERNAL CONTROLS TO PREVENT A RECURRENCE OF THE EVENT. 
          SO THEY TRY, AND IT SEEMS TO ME THEY FIND A BALANCE BETWEEN HURTING YOUR WALLET. 
          WELL, ALTHOUGH EVEN HIRING NEW STAFF OBVIOUSLY HURTS WALLETS TOO, RIGHT? OR EFFECTS WALLETS. 
          UM, AND I THINK MY EXPERIENCE IS THEY'VE BEEN PRETTY, PRETTY GOOD AT, AT COMING UP WITH THAT BALANCE. 
          THANK YOU. 
          I KNOW THAT'S A LITTLE BIT OF AN UNFAIR QUESTION. 
          I WAS REALLY MORE IN CONTEXT WITH THE REPEAT OFFENDERS AND JUST THE FREQUENCY OF, OF THAT. 
          SO NO, THANK YOU COMMISSIONER. 
          IT MAY BE GOOD TO KNOW, UM, THE MAXIMUM PENALTY PER EVENT IS SET IN STATUTE, BUT AS FAR AS HOW OUR ENFORCEMENT DIVISION ACTUALLY HANDLES REPEAT OFFENDERS, BARKSDALE MAY HAVE SOME MORE CONTEXT ON THAT. 
          ALRIGHT, THANK YOU CHAIRMAN, THIS IS BARKSDALE ENGLISH WITH COMMISSION STAFF. 
          UM, YOU'RE ABSOLUTELY RIGHT. 
          CHAIRMAN GLEASON. 
          UM, AND ALSO ANDY, YOU, YOU'RE SPOT ON. 
          HER COMPLIANCE FIRST ORGANIZATION, REPEAT OFFENDERS. 
          UM, WE WILL, WE'LL KEEP A DATABASE OF, OF EVERY ENFORCEMENT ACTION THAT, UH, WE TAKE. 
          AND SO AS A NEW REFERRAL COMES IN, WE'LL GO BACK AND LOOK AT THE COMPLIANCE HISTORY FOR THAT ENTITY. 
          AND IF THAT ENTITY HAS BEEN FOUND TO HAVE BEEN IN VIOLATION OF THE COMMISSION'S RULES OR, OR CUT PROTOCOLS FOR THE SAME TYPE OF EVENT, THEN WE WILL ESCALATE THE ADMINISTRATIVE PENALTY AND THE PUNISHMENT SIDE OF OUR ENFORCEMENT ACTION CORRESPONDINGLY. 
          UM, AND IT COULD, YOU KNOW, GO ALL THE WAY TO REVOCATION OR, YOU KNOW, SOMETHING PRETTY DRASTIC IF IT, IF IT GETS PRETTY SERIOUS. 
          YOU'RE WELCOME. 
          OKAY. 
          THANK YOU, COMMISSIONER. 
          THANK YOU ANDY. 
          [Items 17.1.1 - 17.1.3]
WITH THAT WE'LL MOVE ON TO AGENDA ITEM 17 COMMITTEE REPORTS. 
          UH, CHRIS CRUMBLE, THE CHAIR OF THE FINANCE AND AUDIT COMMITTEE HAS THREE VOTING ITEMS TODAY. 
          AND AGENDA ITEM 17.1, THE FINANCE AND AUDIT COMMITTEE REPORT. 
          CHRIS, THANK YOU CHAIRMAN FLORES. 
          YES, THE COMMITTEE HAS, UH, HAD, UH, THREE VOTING ITEMS TO RECOMMEND TO THE BOARD FOR APPROVAL. 
          UH, COMMITTEE MEMBERS VOTED TO RECOMMEND BOARD ACCEPTANCE OF ALL THREE SETS OF ERCOT 2025 AUDITED FINANCIAL STATEMENTS. 
          UH, THESE ARE FINANCIAL STATEMENTS FOR ONE, ERCOT CONSOLIDATED TWO, THE TEXAS ELECTRIC MARKET STABILIZATION FUNDING M AND THE TEXAS ELECTRIC MARKET STABILIZATION FUNDING. 
          N UH, ALL THREE OF THE OPINIONS WERE UNMODIFIED OR CLEAN, IF YOU WILL. 
          THERE WERE NO REPORTED ITEMS TO NOTE. 
          UH, I WOULD SAY THAT THE PRIMARY ITEM OF INTEREST FOR THE FINANCIAL STATEMENTS WAS THE 2025 REFINANCING, UH, WHICH RESULTED IN THE ISSUANCE OF THE TEXAS ELECTRIC MARKET STABILIZATION FUNDING M SERIES 2025 AND REDEMPTION OF THE SERIES 2021. 
          SO, UH, CHAIRMAN FLORES, MAY I MAKE A MOTION PLEASE? ON BEHALF OF THE FINANCE AND AUDIT COMMITTEE, I MOVE THAT THE BOARD ACCEPT THE 2025 FINANCIAL STATEMENTS AUDIT REPORTS FOR ERCOT CONSOLIDATED TEXAS ELECTRIC MARKET STABILIZATION FUNDING M AND TEXAS ELECTRIC MARKET STABILIZATION FUNDING N AS PRESENTED BY BAKER TILLY. 
          DO I HEAR A SECOND? UH, JOHN, THANK YOU. 
          ALL IN FAVOR? AYE. 
          ANY OPPOSED? ANY ABSTENTIONS? THE FINANCIAL STATEMENTS ARE APPROVED. 
          OKAY. 
          A SHORT NOTE ON OUR COMMITTEE DISCUSSIONS, 
          [17.1 Finance and Audit (F&A) Committee Report]
UH, JUST FOR BOARD AWARENESS HERE. 
          IN ADDITION TO THE VOTING ITEMS, THE COMMITTEE MEMBERS DISCUSSED THE STANDING COMMITTEE BRIEFS ON FINANCIAL PERFORMANCE, AND WE RECEIVED REPORTS ON THE INVESTMENTS AND DEBT COMPLIANCE. 
          UH, THE COMMITTEE DISCUSSED THE FIRST FULL VIEW OF THE 2026 FINANCIAL FORECAST VERSUS THE BUDGET, AND WE NOTED INTEREST INCOME IS, UH, REALLY THE LARGEST VARIANCE, AND THAT'S DUE TO INTEREST EARNED ON A HIGHER THAN BUDGETED CONGESTION, REVENUE RIGHTS, AUCTION RECEIPTS BALANCE. 
          AND WITH THAT, UH, MY REPORT 
          [04:00:01]
IS CONCLUDED. 
          OKAY. 
          THANK YOU, CHRIS. 
          UH, ANY, UH, QUESTIONS FOR CHRIS AND THE FINANCE AND AUDIT COMMITTEE REPORT? I DON'T, SANDY, SO WE'RE GONNA MOVE 
          [17.2 Human Resources and Governance (HR&G) Committee Report]
ON TO AGENDA ITEM 17.2. 
          PEGGY, HE CHAIR OF THE HUMAN RESOURCES AND GOVERNANCE COMMITTEE HAS ONE VOTING ITEM FOR US TODAY. 
          PEGGY. 
          THANK YOU, CHAIR FLORES. 
          UH, THE HUMAN RESOURCES AND GOVERNANCE COMMITTEE HAD A LIGHT AGENDA YESTERDAY, AND AS BILL MENTIONED, WE HAD ONE VOTING ITEM THAT I WILL GET TO AT THE END OF MY REPORT. 
          FIRST, WE HEARD FROM, UH, DON HERMS. SHE PRESENTED THE HUMAN RESOURCES OPERATIONAL REPORT AND PROVIDED UPDATES ON KEY HR ACTIVITIES AND METRICS. 
          WE ALSO RECEIVED THE, UH, THREE ANNUAL REPORTS UPDATES, THE ANNUAL STATUS REPORT FROM THE RETIREMENT PLAN COMMITTEE, THE ANNUAL STATUS REPORT ON HEALTH AND WELFARE, AND THE RESULTS OF THE COMPANY'S 2025 OBJECTIVES AND KEY RESULTS IN THE NEW 2026 OKRS. 
          WE ALSO, UH, RECEIVED A REPORT FROM BRANDON GLEASON ON THE, UH, BYLAWS, LITIGATION, AND, AND THE STATUS BEFORE THAT TEXAS BUSINESS COURTS. 
          AND BOTTOM LINE OF THAT IS NOTHING'S HAPPENED. 
          IT'S STILL PENDING. 
          UH, UH, AND THEN, UH, 
          [17.2.1 Reaffirmation of the Board Policies and Procedures]
CHAD SEALEY DISCUSSED THE BOARD POLICIES AND PROCEDURES AND, AND THIS IS THE ONE VOTING ITEM, THE COMMITTEE APPROVED RECOMMENDING THAT THE BOARD REAFFIRM THE ERCOT BOARD POLICIES AND PROCEDURES WITH NO CHANGES. 
          AND IF IT'S OKAY WITH Y'ALL, MAKE A MOTION TO THAT. 
          THE BOARD REAFFIRM, UH, THE BO BOARD ERCOT BOARD POLICY AND PROCEDURES. 
          DO I HEAR IT? SEE A SECOND. 
          OKAY. 
          THANK YOU, JULIE. 
          ALL IN FAVOR? AYE. 
          AYE. 
          ANY OPPOSED? ANY ABSTENTIONS? OKAY. 
          THE BOARD POLICIES ARE REAFFIRMED. 
          THAT CONCLUDES MY REPORT. 
          OKAY, THANK YOU PEGGY. 
          UH, NEXT, 
          [17.3 Technology and Security (T&S) Committee Report]
UH, JOHN SWETT, THE CHAIR OF THE TECHNOLOGY AND SECURITY COMMITTEE WILL PRESENT AGENDA ITEM 17.3, THE TECHNOLOGY AND SECURITY COMMITTEE REPORT. 
          JOHN? THANK YOU, MR. CHAIRMAN. 
          UM, MANY OF THE MEMBERS OF THE BOARD WERE IN THE FIRST PART OF THIS SESSION, SO I WON'T GO INTO A LOT OF DETAIL. 
          WE DID HAVE A GUEST SPEAKER, AS WE NORMALLY DO. 
          DR. PAUL BROWNING CAME AND TALKED TO US ABOUT AN INTRIGUING IDEA OF USING HYDROGEN AS A SUPPLEMENT FOR EXISTING NATURAL GAS POWER GENERATION SOLUTIONS. 
          AND, AND TALKED ABOUT A PLANT THAT IS CURRENTLY IN OPERATION IN UTAH DOING THAT. 
          UM, THERE ARE SIMILAR, UH, CONDITIONS IN TEXAS. 
          UH, WE HAVE SALT DOMES THAT COULD BE USED FOR STORAGE. 
          UH, IT'S NOT CLEAR THAT THE ECONOMICS OF HYDROGEN MAKE THIS A VIABLE SOLUTION IN THE NEAR TERM. 
          UH, BUT IT'S INTERESTING ONE TO THINK ABOUT. 
          AND PARTICULARLY AS WE THINK ABOUT FIRMING, PERHAPS THE NOTION OF USING SALT DOMES FOR FIRMING STORAGE, UH, FOR NATURAL GAS IS, IS ONE THAT, UH, HAS SOME MERIT WORTH LOOKING INTO. 
          UM, SECOND MAJOR TOPIC WAS, UH, THE COMPANY'S STRATEGIC PLAN FOR AI. 
          AS I THINK YOU ALL KNOW, UH, THE BOARD HAD ASKED THE COMMITTEE TO UNDERTAKE, UH, FIRST OF ALL PUT AI IN FORMALLY INTO ITS CHARTER, WHICH WE DID LAST TIME, AND THEN THIS TIME TO START TO DEVELOP A FORMAL PLAN FOR THE DEPLOYMENT OF AI ACROSS ERCOT. 
          UM, AND THEN CAME FORWARD WITH A, A PLAN TO DO THAT. 
          WE APPROVED THAT PLAN AS A COMMITTEE. 
          IT DOESN'T NEED TO COME TO THE FULL BOARD. 
          UM, AND WE ARE NOW WORKING ON BUILDING OUT THE DETAILS OF THAT PLAN. 
          THERE ARE HALF A DOZEN PROJECTS UNDERWAY. 
          UM, LOOKING AT THINGS LIKE BUILDING A TRUSTED FOUNDATION FOR THE DATA, MAKING SURE THAT THE USE OF AI IS RESPONSIBLE AND MAKING SURE IT ADDS VALUE TO ERCOT AND TO THE MARKETPLACE. 
          AND THEN, AS WE ALWAYS DO, WE HAD AN UPDATE ON PROJECTS, UM, WITH THE COMPLETION OF RTC PLUS B. 
          WE'VE NOW SORT OF RESUMED OUR NORMAL CADENCE OF PROJECTS, WHICH IS ROUGHLY, WE HAVE ROUGHLY 55 TO 60 PROJECTS UNDERWAY AT ANY ONE POINT IN TIME. 
          AND, AND WE DO NOW WE HAVE A COUPLE OF BIG ONES THAT I'LL HIGHLIGHT FOR YOU. 
          UH, ONE IS IN THE SECURITY AREA. 
          UH, IDENTITY AND ACCESS MANAGEMENT IS REALLY THE PROVISION OF CONTROLS AS TO WHO CAN GET INTO THE SYSTEM. 
          UM, WE HAVE AN IDENTITY AND ACCESS MANAGEMENT SYSTEM TODAY. 
          IT'S RELATIVELY OLD AND WE'RE IN THE PROCESS OF UPDATING IT. 
          SO WE GOT AN UPDATE ON THAT. 
          THAT'S A, THAT'LL BE A MULTI-YEAR PROJECT, AT LEAST A COUPLE. 
          UM, WE ARE ALSO LOOKING AT THE NEXT PHASE OF UPGRADE FOR OUR DATA CENTERS. 
          YOU RECALL THAT WE DID DATA CENTER UPGRADE FIVE FINISHED THAT ABOUT A YEAR AGO. 
          IT'S TIME TO START. 
          THESE THINGS HAVE AN ECONOMIC LIFE OF ABOUT FIVE YEARS. 
          IT TAKES A COUPLE YEARS TO PLAN THEM. 
          SO WE'RE NOW IN THE PROCESS OF STARTING ECCO, THE, THE PLANNING FOR DATA CENTER SIX. 
          UH, AND WE'LL BE BRINGING THAT FORWARD. 
          THESE ARE RELATIVELY LARGE PROJECTS IN THE ORDER OF A HUNDRED MILLION DOLLARS. 
          UH, SO IT'S SOMETHING THAT REQUIRES A FAIR BIT OF WORK. 
          UH, AND AND LASTLY, I JUST HIGHLIGHT THE FACT THAT, UM, WE HAVE A WEBSITE UPGRADE. 
          UH, THE ERCOT.COM WEBSITE 
          [04:05:01]
UPGRADE IS, IS GOING ON RIGHT NOW. 
          UM, AND YOU'LL CONTINUE TO SEE SOME CHANGES TO THAT OVER THE COURSE OF THE NEXT THREE OR FOUR MONTHS. 
          UH, THAT CONCLUDES MY REPORT. 
          OKAY, THANK YOU JOHN. 
          I APPRECIATE, UH, YOUR WORK AND THE COMMITTEE'S WORK. 
          UH, THE LAST ITEM BEFORE WE GO INTO EXECUTIVE SESSION IS ITEM AGENDA, ITEM 18, OTHER BUSINESS. 
          IS THERE ANY OTHER BUSINESS, ANY BOARD MEMBER WISH, WISH TO RAISE? OKAY WITH THAT. 
          [Convene Executive Session]
AT THIS TIME, THE BOARD WILL ADJOURN GENERAL SESSION AND CONVENE AN EXECUTIVE SESSION. 
          FOLLOWING EXECUTIVE SESSION. 
          THERE ARE SEVERAL VOTING ITEMS ANTICIPATED, UH, THAT WILL COME BACK UP. 
          SO, GENERAL SESSION WILL RECONVENE AT THE CONCLUSION OF THE EXECUTIVE SESSION, GENERAL SESSION. 
          THE ERCOT BOARD OF DIRECTORS MEETING IS NOW RECESSED IN THE WEBCAST WILL BE CONCLUDED. 
          CHAIR GLEASON, THIS MEETING, THE PUBLIC UTILITY COMMISSION OF TEXAS WILL STAND IN RECESS. 
          [Reconvene General Session]
HELLO, THIS IS BILL FLORES ERCOT, BOARD CHAIR, AND WE ARE RECONVENING THE GENERAL SESSION OF THE ERCOT BOARD OF DIRECTORS. 
          I'VE CONFIRMED THAT A, A QUO IS BEEN PRESENT. 
          AND PERSON, BEFORE WE MOVE ON TO BUSINESS, I'D LIKE TO ASK PUC CHAIRMAN THOMAS GLEASON, WE'D LIKE TO RECONVENE THE PUC OPEN MEETING. 
          YES, SIR. 
          THANK YOU, MR. CHAIRMAN. 
          THIS MEETING, THE PUBLIC UTILITY COMMISSION OF TEXAS WILL RECONVENE AT 2:17 PM UH, THANK YOU CHAIRMAN GLEASON. 
          WE HAVE 
          [19. Vote on Matters from Executive Session]
HAVE, UH, TWO ITEMS TO VOTE ON FROM GENERAL, UH, FROM EXECUTIVE SESSION. 
          UH, FIRST OF ALL, FOR AGENDA ITEM 19, I'LL ENTERTAIN A MOTION FOR BOARD APPROVAL OF THE PERSONNEL MATTER DISCUSSED DURING EXECUTIVE SESSION UNDER AGENDA ITEM ES 2.3 0.21. 
          OKAY. 
          UH, THANK YOU A SECOND. 
          ALL IN FAVOR? AYE. 
          ANY OPPOSED? ANY ABSTENTIONS? NEXT FOR GEN ITEMS 
          [Items 20-22  ]
20 THROUGH 22, I'LL ENTERTAIN A MOTION TO APPROVE THE SELECTION OF BAKER TILLY IS THE INDEPENDENT FINANCIAL AUDITOR TO PERFORM THE FOLLOWING FOR THE YEAR ENDING DECEMBER 31ST. 
          2026 IS DISCUSSED IN AN IN AGENDA ITEM ES 2.3 0.1. 
          FIRST, THE FINANCIAL STATEMENTS AUDIT, SERVICER CERTIFICATE REPORT, AND FORM NINE 90 REVIEW FOR ERCOT INC. 
          TWO, THE FINANCIAL STATEMENT AUDIT AND CONSOLIDATION PROCEDURES FOR TEXAS ELECTRIC MARKET STABILIZATION FUNDING MLLC AND THREE, THE FINANCIAL STATEMENTS, AUDIT AND CONSOLIDATION PROCEDURES FOR TEXAS ELECTRIC MARKETS STABILIZATION FUNDING. 
          AND LLCI HAVE A MOTION ON THAT. 
          CHRIS, THANK YOU. 
          AND A SECOND FROM BILL. 
          ALL IN FAVOR? AYE. 
          AYE. 
          ANY OPPOSED? ANY ABSTENTIONS? OKAY. 
          THAT ITEM IS APPROVED. 
          UH, THANK YOU. 
          THIS MEETING, THE ERCOT BOARD OF DIRECTORS IS NOW ADJOURNED AND THE WEBCAST IS CONCLUDED. 
          CHAIRMAN LEASON, THIS MEETING OF PUBLIC UTILITY COMMISSION OF TEXAS IS HEREBY ADJOURN. 
          ALRIGHT.
* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.