* 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]
          GOOD MORNING. 
          [10.2. Reconvene General Session 10:00 a.m. Tuesday, June 2, 2026]
WELL, THIS IS 10 O'CLOCK. 
          WE'RE GONNA GO AHEAD AND GET STARTED. 
          UH, WELCOME ERCOT, BOARD OF DIRECTORS AND GUESTS. 
          I'M BILL FLORES, THE BOARD CHAIR. 
          I HEREBY RECONVENE AND CALL TO ORDER THE JUNE 1ST AND SECOND 2026 MEETINGS OF THE BOARD OF DIRECTORS. 
          UH, THIS MEETING IS BEING WEBCAST LIVE TO THE PUBLIC ON ERCOT WEBSITE. 
          I WOULD LIKE TO PROVIDE PUC CHAIRMAN THOMAS GLEASON, THE 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 OF DULY POSTED WITH THE SECRETARY OF STATE FOR JUNE 2ND, 2026. 
          THANK YOU, CHAIRMAN GLEASON. 
          UH, THE ANTITRUST ADMONITION, THE SECURITY MAP ARE INCLUDED WITH THE MEETING MATERIALS. 
          UH, AS I INDICATED YESTERDAY, THE BOARD RECEIVED A, A REQUEST ON BEHALF OF GIDEON POWELL, CEO OF CHO, INC, TO PROVIDE IN-PERSON COMMENTS. 
          WE WILL TAKE UP MR. POWELL'S COMMENTS LATER TODAY DURING OUR DISCUSSION OF TWO REVISION REQUESTS UNDER AGENDA ITEM 15.14 REGARDING THE BATCH ZERO PROCESS FOR LARGE LOAD INTERCONNECTIONS. 
          CHAD, HAVE WE RECEIVED ANY OTHER REQUESTS FOR COMMENT? NO OTHER REQUESTS. 
          OKAY, VERY GOOD. 
          UH, AGENDA ITEM 11 IS FIRST 
          [11. CEO Update]
ON OUR CALENDAR THIS MORNING. 
          UH, IT'S OUR CEO UPDATE BY PABLO VEGAS. 
          PABLO, GOOD MORNING. 
          THANK YOU, CHAIR FLORES, AND THANK YOU EVERYBODY FOR YOUR INTEREST IN THE IMPORTANT WORK THAT WE ARE DOING AT ERCOT. 
          UM, TODAY I WANNA COVER A, A FEW KIND OF STRATEGIC TOPICS THAT ARE AT THE FOREFRONT OF ALL OF OUR CONVERSATIONS. 
          UH, RIGHT NOW, I WANNA GIVE A VERY, VERY BRIEF, UM, DISCUSSION ON THE LOAD FORECAST THAT WAS COVERED A COUPLE TIMES YESTERDAY. 
          SO I'M NOT GONNA, I'M GONNA TRY TO BE AS NON-REDUNDANT AS I CAN ON THAT TOPIC. 
          I DO WANT TO TOUCH ON THE BACK ZERO PROCESS, STEP BACK A LITTLE BIT, LOOK AT KIND OF WHAT IT REPRESENTS, WHAT ARE THE COMPONENTS OF IT, AND WHERE WE ARE HEADED LONG TERM WITH THIS, UH, BATCH CONSTRUCT. 
          AND THEN I'LL TALK A LITTLE BIT ABOUT SOME OF THE PROGRESS WE'VE MADE ON SENATE BILL SIX, UH, WHAT WE'RE SEEING IN TERMS OF CAPACITY CAPABILITIES THIS SUMMER, SOME CHANGES SINCE LAST SUMMER. 
          AND THEN, AS I ALWAYS DO, I'LL FINISH WITH SOME THANKS AND RECOGNITION FOR SOME OF THE GREAT WORK THAT'S BEEN DONE ACROSS, UH, OUR ORGANIZATION. 
          SO WITH WITH REGARDS TO THE LONG-TERM LOAD FORECAST, AS IT WAS NOTED YESTERDAY, WE RECEIVED IN A FAIRLY SIGNIFICANT INCREASE OVER THE LO THE LOAD FO FORECAST IN 2025. 
          UM, IT PROJECTED APPROXIMATELY 367,000 MEGAWATTS OF, UH, PEAK GENERATION BY 2032, REPRESENTING MORE THAN FOUR TIMES THE 2026 PEAK. 
          UM, OF OUR SYSTEM. 
          THIS, UM, FORECAST IS CONSIST OF TWO MAIN COMPONENTS. 
          I LIKE TO ALWAYS TRY TO MAKE SURE FOLKS UNDERSTAND WHAT GOES INTO THIS. 
          THERE'S A BASE FORECAST THAT WE DEVELOP THAT IS BASED ON EXPECTED RESIDENTIAL AND COMMERCIAL BUSINESS GROWTH, AS WELL AS FACTORING IN ITEMS LIKE ROOFTOP SOLAR ADDITIONS AND EXPECTED ELECTRIC VEHICLE GROSS, UH, GROWTH. 
          THAT BASE FORECAST, UH, COMES IN AT ABOUT 111,000 MEGAWATTS OUT OF THAT 367,000. 
          AND THEN THE SECOND SIGNIFICANT COMPONENT THAT GOES INTO IT IS THE LARGE LOAD ADDITIONS THAT ARE PROVIDED BY THE TRANSMISSION OPERATORS THAT ARE WORKING CLOSELY WITH THE CUSTOMERS THAT ARE EXPRESSING INTEREST IN DEVELOPING THEIR SITES, UH, ON THE ERCOT SYSTEM. 
          AND THAT, UH, COMPONENT CONSISTED OF OVER 250 GIGAWATTS OF THAT LARGE LOAD. 
          AS NOTED YESTERDAY, WE ACKNOWLEDGE THAT THIS IS NOT WHAT WE EXPECT TO COME ONLINE. 
          IT IS TOO HIGH OF A FIGURE BASED ON REA REALISTIC EXPECTATIONS. 
          AND, AND I WANNA EMPHASIZE HOW CRITICAL THAT WE GET THIS LONG-TERM LOAD FORECAST. 
          RIGHT? THE LOAD FORECAST IS PROBABLY ONE OF THE MOST CONSEQUENTIAL AND IMPORTANT DATA ELEMENTS THAT WE USE IN ERCOT FOR MANY FACETS OF OUR OPERATIONS AND PLANNING. 
          WE USE IT IN FOR RESOURCE ADEQUACY PLANNING. 
          WE USE IT FOR TRANSMISSION PLANNING. 
          IT IS CRITICAL FOR OUTAGE FORECASTING, SO BEING ABLE TO HELP TRANSMISSION OPERATORS AND GENERATING GENERATOR OPERATORS TO PLAN THEIR OUTAGES IN THE FUTURE. 
          AND THERE ARE SIGNIFICANT REPORTS THAT ARE BASED OFF OF THAT LONG-TERM LOAD FORECAST. 
          THE ERCOT BUDGET IS BASED OFF OF THAT LONG-TERM LOAD FORECAST. 
          SO THERE ARE MANY ASPECTS THAT ARE DRIVEN DIRECTLY FROM THIS, UH, CORE PIECE OF DATA THAT WE NEED TO MAKE SURE IS AS ACCURATE AS POSSIBLE. 
          AT THAT MAY 7TH PUBLIC UTILITY COMMISSION WHERE IT WAS DISCUSSED, UM, WE DISCUSSED THE PREFERENCE TO TRY TO ADJUST THAT IN SOME WAY. 
          WE COULD DO IT EITHER USING THE HISTORICAL METHOD THAT WE USED LAST YEAR, WHICH WAS LOOKING AT ACTUAL REALIZED RATES OF ADDITIONS, OR WE COULD USE SOMETHING LIKE THE PROPOSED BACK ZERO ENTRY CRITERIA THAT IS BEING DEVELOPED TODAY AS A WAY TO MODIFY THAT. 
          UM, AND SO EITHER ONE OF THEM I THINK IS GOING TO LEAD TO A MORE REALISTIC OUTCOME. 
          WE'RE STILL WORKING ON THAT WITH STAKEHOLDERS, GETTING COMMENTS THROUGH THE PUBLIC UTILITY COMMISSION PROCESS. 
          AND, UM, AND SO IN THE END, WE WILL END UP, I THINK, GETTING TO A MUCH MORE ACCURATE AND REALISTIC NUMBER THAT IS GONNA BE VERY USABLE FOR THE PURPOSE OF TRANSMISSION 
          [00:05:01]
PLANNING AND RESOURCE ADEQUACY AND RELIABILITY FORECASTING. 
          THERE ARE SOME CHANGES THAT WE'VE REQUESTED AS A RESULT OF THAT. 
          ONE OF THOSE IS WE'VE REQUESTED A GOOD CAUSE EXCEPTION TO NOT FILE THE MAY CDR REPORT. 
          THAT'S OUR CAPACITY, DEMAND AND RESERVE REPORT THAT IS BASED DIRECTLY ON WHAT THE LOAD THE LONG-TERM LOAD FORECAST IS. 
          SO WITHOUT HAVING THAT COMPLETE, IT'S NOT GONNA BE A VERY USEFUL REPORT IN ITS PLACE. 
          WE HAVE INSTEAD FILED AN UPDATED VIEW, A SNAPSHOT OF EXPECTED GENERATION RESOURCE CAPACITY. 
          SO IT'S THE CAPACITY SIDE OF THAT REPORT, BUT WE'RE NOT INCLUDING IN THOSE FILINGS AND EXPECTATION OF, UH, THE LOAD FORECAST OR THE PLANNING RESERVES THAT WOULD BE AFFILIATED WITH THAT. 
          AND WE'VE ALSO ASKED FOR AN EXCEPTION TO NOT FILE THE 2026 REGIONAL TRANSMISSION PLAN. 
          AGAIN, THE BATCH PROCESS THAT WE'RE NOW GETTING INTO IS GOING TO BE DEALING WITH CREATING THE NEXT ITERATION OF A TRANSMISSION PLAN THAT'S GONNA BE DRIVING THE INFRASTRUCTURE INVESTMENTS. 
          AND SO WE THINK THAT THERE'S VERY LITTLE VALUE IN EXPANDING THE, UH, RESOURCES TO DO THAT. 
          AND SO BOTH OF THOSE, UH, ARE UNDER CONSIDERATION AND COULD BE DISCUSSED BY THE COMMISSION AS EARLY AS LATER THIS MONTH. 
          SO I'D, I'D LIKE TO SPEND A FEW MINUTES ON THE, UM, ON THE BATCH STUDY PROCESS. 
          AND, YOU KNOW, THIS HAS REALLY FELT LIKE A JOURNEY IN A LOT OF WAYS BECAUSE IT'S HAD SUCH INTENSITY BEHIND IT AND SO MUCH FOCUS. 
          BUT IN REALITY, IT'S ONE OF THE FASTEST PLANNING GUIDE AND, UH, NODAL PROTOCOL REVISION PROCESSES THAT WE'VE EVER DEVELOPED IN THE ERCOT MARKET. 
          AND IT'S BEEN DONE UNDER AN EXTREMELY HIGH PRESSURE, HIGH SCRUTINY ENVIRONMENT THAT HAS REQUIRED IT TO BE, UM, EXTREMELY THOUGHTFUL AND CAREFULLY CONSIDERED. 
          THE CONCEPT OF THIS BATCH WAS FORMALIZED WITH THE PUCT. 
          JUST BACK IN DECEMBER AND JANUARY. 
          WE FOCUSED TIME ON LISTENING TO STAKEHOLDERS, UH, MAKING SURE THAT WE COULD UNDERSTAND WHAT THE PERSPECTIVES ARE ON WHAT WOULD BE IMPORTANT IN A REVISED PROCESS ON INTERCONNECTING LARGE LOADS. 
          AND THEN A COUPLE MONTHS LATER IN MARCH, WHICH WAS JUST THREE MONTHS AGO, THE VERY FIRST DRAFT OF THE PIGGER 1 45 WAS PUT FORTH FOR DISCUSSION THAT WAS APPROVED IN ON MAY 19TH A COUPLE WEEKS AGO. 
          LOOKING AHEAD, WE'VE GOT THE BOARD DISCUSSION AND APPROVAL POTENTIAL FOR THAT TODAY, AND THEN THE PUCT CONSIDERATION OF THAT IN THE WEEKS AHEAD. 
          AND THEN BY AUGUST 7TH, THAT'S GONNA BE THE DATE BY WHICH THE TRANSMISSION SERVICE PROVIDERS AND DISTRIBUTION SERVICE PROVIDERS ARE GONNA BE NOTIFIED ON THE SPECIFIC STATUS OF THEIR LARGE LOAD CUSTOMERS AND WHETHER IT'S GONNA, AND THAT STATUS BASICALLY MEANS WHETHER THEY'RE GONNA BE INCLUDED IN THE BATCH SERIAL, WHETHER THEY MET THE CRITERIA OR, AND IF IT IS INCLUDED, WHETHER IT HAS BEEN DESIGNATED AS A BASE LOAD PROJECT OR ONE THAT IS GONNA BE CONSIDERED A STUDIED LOAD, WE'LL THEN EXECUTE THOSE BATCH LOAD, UM, STUDIES IN BEGINNING IN AUGUST. 
          AND BY APRIL 9TH OF NEXT YEAR, WE'RE GONNA COMMUNICATE THOSE STUDY RESULTS, INCLUDING THE AMOUNT OF TRANSMISSION CAPACITY THAT HAS BEEN ALLOCATED BY YEAR TO THE STUDIED LOADS WITHIN VAX ZERO. 
          AND WE'LL ALSO COMMUNICATE WHAT ARE THE NEEDED TRANSMISSION PROJECTS AND IMPROVEMENTS AS WELL AS THEIR EXPECTED COSTS. 
          THOSE LARGE LOAD CUSTOMERS ARE GONNA HAVE UNTIL JUNE 8TH TO MAKE A FINAL COMMITMENT TO PROCEED WITH THOSE PROJECTS AND TO MAKE ANY NECESSARY FINANCIAL SECURITY AND SITE CONTROL REQUIREMENTS. 
          I, I THINK IT'S REALLY IMPORTANT TO ALSO TO STEP BACK A LITTLE BIT AND THINK ABOUT KIND OF WHAT WE'RE DOING HERE, BECAUSE THIS IS AN ISSUE THAT IS AFFECTING THE WHOLE GLOBE AND CERTAINLY THE COUNTRY. 
          EVERYBODY IS TRYING TO FIGURE OUT HOW TO DO THIS IN A RELIABLE, STABLE WAY. 
          AND SO WHEN YOU THINK ABOUT, YOU KNOW, THE LAST SIX MONTHS, THE COMMUNITY OF THE ERCOT MARKET ACROSS ALL THE STAKEHOLDERS, THE REGULATORY BODIES AND ERCOT ITSELF HAVE BEEN WORKING TOGETHER IN A VERY SHORT TIME TO SET A PATTERN AND SOLVE A PROBLEM THAT IS A CRITICAL ENERGY USE PROBLEM ACROSS THIS NATION. 
          I THINK WHEN WE GET THIS DONE, IT'LL BE THE FIRST STEP IN THAT SOLUTION SET ACTUALLY BEING DEFINED. 
          IT WON'T BE PERFECT. 
          THERE WILL BE THINGS THAT WE'RE GONNA BE ABLE TO IMPROVE UPON IT IN THE NEXT BATCH AS WE DEFINE KIND OF THE ONGOING PROCESS. 
          BUT I THINK IT'S IMPORTANT TO REFLECT ON THE SIGNIFICANCE OF HOW MUCH OF A CHANGE THIS ACTUALLY REPRESENTS IN THE WAY THAT THE LARGE LOAD INTERCONNECTION PROCESS IS WORKING. 
          AND THAT WE POTENTIALLY COULD BE SOLVING A NATIONAL ISSUE ON HOW TO DO THIS IN A WAY THAT CAN BE DONE RELIABLY STABLY WITH CONSIDERATION FOR THE ECONOMIC GROWTH CONSIDERATIONS, WITH CONSIDERATION FOR THE COST IMPLICATIONS, AND WITH CONSIDERATION FOR THE RELIABILITY AND STABILITY OF THE GRIDS THAT NEED THESE, UH, THAT ARE GONNA SUPPORT THESE ASSETS. 
          SO THE COMPONENTS OF THIS, YOU KNOW, ARE, ARE REALLY THE, THE, THE KEY PARTS OF WHAT INSIDE OF BACTERIA. 
          AND WE'VE TALKED A LOT ABOUT IT AS, YOU KNOW, JUST KIND OF THE STUDY. 
          BUT REALLY THERE'S A, THERE'S A FEW THINGS THAT I WANNA MAKE SURE THAT I CALL OUT HERE. 
          THE, OBVIOUSLY MOST OF THE ATTENTION HAS BEEN FOCUSED ON THE INCLUSION 
          [00:10:01]
CRITERIA. 
          IT'S BEEN TAKING UP A LION'S SHARE OF THE DISCUSSION, WHICH IS A REALLY KEY ISSUE DEFINING WHICH PROJECTS ARE REAL, WHICH ARE NON SPECULATIVE, THAT HAVE, YOU KNOW, IDENTIFIED CUSTOMERS AND THE RESOURCES TO ACTUALLY DEVELOP AND TO UTILIZE THE INFRASTRUCTURE THAT IS GONNA BE COMMITTED FOR THEM AND BUILT FOR THEM IN A WAY THAT CONSIDERS THE, UH, COST PRUDENCY FOR, UH, RATE PAYERS ACROSS TEXAS, CUSTOMERS ACROSS THE ERCOT MARKET TO PAY FOR, UH, WITH OBVIOUSLY THE ALLOCATION OF THOSE COSTS, ONE OF THE KEY CONSIDERATIONS TO BE, TO BE SURE THAT IT'S DONE FAIRLY AND SUPPORTED BY THOSE THAT ARE DRIVING THE INFRASTRUCTURE INVESTMENTS. 
          IN ADDITION TO THAT ENTRY CRITERIA, THE BATCH UH, PROCESS IS OF COURSE GONNA CONSIST OF THE CORE SYSTEM-WIDE STUDY ITSELF. 
          THAT'S THAT KIND OF SECOND TRUNK OF WORK THAT'S, UH, THAT'S GONNA HAPPEN BETWEEN AUGUST AND APRIL. 
          IT'S GOING TO, UH, CONSIST OF STUDYING THE OVERALL TRANSMISSION SYSTEM AND ASSESS HOW IT WILL SERVE THE REQUESTED LOAD AND ALLOCATE THE AVAILABLE TRANSMISSION CAPACITY THAT WE HAVE OVER THE NEXT SIX YEARS. 
          BUT IT'S ALSO GONNA IDENTIFY THE NEEDED TRANSMISSION TO FULLY MEET ALL OF THE FULL LOAD EXPECTATIONS IN THAT BATCH. 
          THAT'S SOMETHING THAT I THINK WE HAVE HAS TO BE SAID OVER AND OVER AGAIN THAT, YOU KNOW, WE FOCUS A LOT ON THE FACT THAT THERE'S GONNA BE AN ALLOCATION OF TRANSMISSION OVER THE COURSE OF THE FIVE TO SIX YEAR PERIOD, BUT THE END PROCESS IS GOING TO DELIVER A SOLUTION TO SERVE ALL OF IT 100% OF IT. 
          AND SO THAT'S WHY IT'S SO CRITICAL THAT AS WE FINISH THAT AND WE SEE EXACTLY WHAT IT'S GONNA TAKE, THAT THE COMMITMENT AND THE EXPECTATION OF THOSE CUSTOMERS TO MOVE FORWARD AND TO DEVELOP IS CERTIFIED IN A WAY THAT PROTECTS ALL OF THE CONSUMERS IN TEXAS. 
          BECAUSE FOLLOWING THAT, THERE IS THIS COMMITMENT GATE WHERE THOSE CUSTOMERS ARE GONNA HAVE TO MAKE A COMMITMENT WITH FINANCIAL SECURITY AND WITH THE SIGNED INTERCONNECTIONS AND WITH THE COMMITMENTS LONG TERM TO UTILIZE THE INFRASTRUCTURE THAT IS GONNA BE BUILT FOR THEM TO SERVE 100% OF WHAT THEY HAVE ASKED FOR IN THE BACK ZERO. 
          FOLLOWING THAT, IF THERE ARE CHANGES TO CUSTOMER'S EXPECTATIONS AND PLANS, THEN THERE WILL BE A REFINEMENT STEP THAT WILL BE DONE, WHICH IS ONLY GONNA BE A RETRACTION POTENTIALLY OF SAYING, OKAY, IF THIS PROJECT OR THAT PROJECT IS NOT NEEDED, THEN WE WILL PULL BACK AND REFINE THE STUDY TO MAKE SURE THAT ONLY THE TRANSMISSION THAT IS NEEDED TO SERVE ALL OF THE LOAD THAT REMAINS AFTER THAT COMMITMENT GATE IS WHAT IS INVESTED IN AND WHAT IS WHAT IS DEVELOPED. 
          AND THEN FINALLY, THE OUTPUT OF THAT IS GOING TO BE AN ACTIONABLE TRANSMISSION PLAN THAT IS THEN GOING TO DRIVE TRANSMISSION AND INFRASTRUCTURE INVESTMENT OVER THE NEXT SIX YEARS, BE BEYOND THE ZERO PROCESS, THE BACK ZERO PROCESS. 
          WE'RE REALLY LOOKING AT A FUNDAMENTAL CHANGE GOING FORWARD TO HOW WE LOOK AT DOING TRANSMISSION PLANNING. 
          WE HAVE HISTORICALLY HAD, HAD MULTIPLE PATHWAYS ON BEING ABLE TO JUSTIFY AND BUILD TRANSMISSION WITHIN THE ERCOT SYSTEM THAT HAS CREATED BECAUSE OF THE VOLUME AND THE PACE OF THE CHANGES THAT WE'VE EXPERIENCED. 
          A VERY COMPLICATED SITUATION THAT THE B ZERO HAS BEEN DESIGNED TO TRY TO ADDRESS AND THE ONGOING BATCH TO ADDRESS. 
          SO FUNDAMENTALLY, WHAT WE'RE LOOKING TO DO LONG TERM DOWN THE ROAD IS TO DEVELOP THAT COMPREHENSIVE APPROACH FOR DEVELOPING TRANSMISSION THAT'LL BRING TOGETHER THE RTP, THE RPG, THE BATCH CONSTRUCT, ALL INTO AN INTEGRATED TRANSMISSION PLAN SO THAT WE TAKE A VERY GOOD LOAD FORECAST THAT'S WELL VETTED AND REPRESENTS EXACTLY, WE KNOW WHAT WE THINK IS GONNA HAPPEN ECONOMICALLY. 
          WE PUT TOGETHER A TRANSMISSION PLAN TO SERVE ALL OF THAT CONSISTENTLY PROVIDING CERTAINTY TO THOSE CUSTOMERS AND CERTAINTY TO CONSUMERS IN THE STATE AND TO HOW WE'RE GONNA DEVELOP INFRASTRUCTURE. 
          AND THEN WE GO AHEAD AND BUILD THAT AS A RESULT COMING RIGHT OUT OF THERE. 
          AND WE DON'T HAVE OTHER STEPS ALONG THE WAY THAT MAKE THAT LONGER PROTRACTED. 
          AND SO WE WANNA KEEP THE EFFICIENCIES THAT OUR MARKET IS KNOWN FOR BEING ABLE TO DEVELOP TRANSMISSION FASTER THAN ANY PLACE ELSE IN THE NATION. 
          BEING ABLE TO SUPPORT ECONOMIC GROWTH AT A PACE THAT NO PLACE ELSE IN THIS COUNTRY CAN SUPPORT THAT IS STILL A DRIVING OBJECTIVE AND AN EXPECTATION OF THE REVISIONS THAT WE'RE LOOKING AT FROM BATCH ZERO AND THEN GOING INTO BATCH ONE IN THE LONG TERM. 
          LET ME PAUSE THERE. 
          IF THERE'S ANY QUESTIONS ON THE BATCH THAT HAVE NOT BEEN ADDRESSED IN CONVERSATIONS WE'VE HAD YESTERDAY OR WITH THIS, I DON'T SEE ANY. 
          I HAD A QUICK QUESTION. 
          UH, YES. 
          HOW MANY GIGAWATTS OF LOAD, UH, MEET THE BATCH CRITERIA FOR BOTH BASE AND ALLOCATED LOAD IN THE BATCH AT BATCH ZERO? SO RIGHT NOW, SO THAT'S AN, THAT'S AN EVOLVING NUMBER BECAUSE WE'RE IN THE, WE'RE AT THE STAGE RIGHT NOW WHERE WE ARE STILL, UM, EVALUATING THE STUDIES THAT HAVE COME IN FROM THE TRANSMISSION AND DISTRIBUTION COMPANIES, MAKING SURE THAT WE VALIDATE WHETHER OR NOT THERE'S CONFLICTING OR NOT, AND, UH, DETERMINING WHICH ARE GONNA BE BASE LOAD AND WHICH ARE GONNA BE STUDIED AND, AND WHICH MEET THE CRITERIA. 
          THERE'S PROBABLY A, I'D SAY A RANGE, UH, THAT IF I WERE TO LOOK, GIVE YOU A NUMBER TODAY, IT'D PROBABLY BE ABOUT 35 GIGAWATTS OR SO. 
          THAT WOULD PROBABLY BE IN THAT BASE LOAD DEFINITION AND MAYBE AROUND 65 GIGAWATTS THAT WOULD BE IN THAT STUDIED ALLOCATION. 
          SO CLOSE TO AROUND A HUNDRED GIGAWATTS TOTAL IN THAT BACK ZERO DEFINITION THAT COULD SHIFT, THAT MIX COULD SHIFT AND MORE OF THAT BASE LOAD 
          [00:15:01]
COULD GROW BASED ON THE VALIDITY OF NEW, OF THE STUDY PROCESS THAT WE, UH, EXECUTE OVER THE NEXT SIX WEEKS OR SO LEADING UP TO, UH, THAT JULY 9TH, UH, DEADLINE. 
          SO THAT'S ABOUT THE SCALE SIZE OF HOW THINGS ARE LOOKING AT THIS POINT. 
          SO IT'S A FAIRLY SIZABLE AMOUNT OF LOAD THAT'S GONNA BE EVALUATED IN THE, IN THE BATCH STUDY. 
          OKAY. 
          I WANTED TO HIGHLIGHT THE FACT THAT, UM, THERE'S BEEN SOME PROGRESS ON ONE OF THE SENATE BILL SIX, UM, REQUIREMENTS, AND THAT, THAT THAT REQUIREMENT IS THAT WE STUDY AND REVIEW PROPOSED NET METERING ARRANGEMENTS THAT ARE INVOLVING LARGE LOADS THAT ARE CO-LOCATING WITH A GENERATING RESOURCE THAT IS IN EXISTENCE AS OF SEPTEMBER 1ST, 2025. 
          AND THIS IS REALLY IMPORTANT TO NOTE THAT THIS WHOLE NET METERING, UH, CONSTRUCT WITHIN SENATE BILL SIX IS FOCUSED ON RESOURCES THAT ARE ONLINE AND RUNNING AT SEPTEMBER 1ST, OR BEFORE ANYTHING THAT IS NEW THAT IS COMING ALONG WITH A BRING YOUR OWN GENERATION CONCEPT THAT WE HEAR A LOT ABOUT WITH THE NEW DATA CENTERS THAT ARE BUILDING WOULD NOT BE, UH, SUBJECT TO THOSE PROVISIONS. 
          BECAUSE THIS LAW IS FOR THOSE THAT ARE CO-LOCATING WITH GENERATING RESOURCES AS OF SEPTEMBER, 2025. 
          AND SO AS OF MAY, UH, 2026, THE PUC HAS APPROVED TWO NET METERING ARRANGEMENTS, UM, THAT HAVE, UH, CONDITIONS ASSOCIATED WITH IT. 
          THOSE CONDITIONS OR, YOU KNOW, REQUIRE THE LOAD TO BE ABLE TO CURTAIL AND THE CO-LOCATED GENERATION RESOURCE THAT IT'S CO-LOCATED WITH TO BE ABLE TO MAKE ITS CAPACITY AVAILABLE TO THE SYSTEM WITHIN 30 MINUTES OF AN ERCOT INSTRUCTION IN ORDER TO AVOID OR MITIGATE AN ACTUAL OR ANTICIPATED EEA OR TRANSMISSION EMERGENCY, WE'RE GOING TO, WHEN PRACTICABLE ERCOT WILL ISSUE PUBLIC NOTICES THAT IF THE GRID CONDITIONS ARE TIGHTENING, THAT CO-LOCATED FACILITIES MAY NEED TO TAKE ACTION. 
          SO THOSE THAT FALL UNDER THIS PROVISION. 
          AND THEN IF, UH, THE CONDITIONS DETERIORATE OR DO NOT IMPROVE, THEN WE WOULD BE IN A POSITION TO INSTRUCT THE FACILITY OWNER, THE FACILITY OWNERS TO ACT BASED ON THE REQUIREMENTS OF THE, UH, OF THE NET METERING PROVISIONS. 
          WE'RE GONNA BE INCORPORATING THESE INSTRUCTIONS INTO A LARGE LOAD CURTAILMENT MANAGER. 
          UH, THIS IS, UH, AND THERE'S GONNA BE AN NPR PROCESS THAT'S GONNA DE DESCRIBE EXACTLY HOW THAT'S GOING TO WORK IN ORDER TO STANDARDIZE THE DEPLOYMENT OF THESE RESOURCES WHEN WE NEED TO HAVE THIS CURTAILMENT AND WE NEED TO HAVE GENERATION PUT BACK ON THE GRID THAT NEEDS TO BE AUTOMATED. 
          AND SO THAT WE'RE GONNA BE DEVELOPING THIS CURTAILMENT MANAGER TO BE ABLE TO ENABLE THAT. 
          SO THIS IS, UH, A NOTABLE ADVANCEMENT IN A COUPLE OF THE PROVISIONS CENTER BILL SIX, I JUST WANTED TO HIGHLIGHT THAT, UH, WE'VE HAD TWO OF THOSE PROJECTS MOVE FORWARD. 
          SO LOOKING AHEAD, UH, TO THIS SUMMER, UM, YOU KNOW, WE, WE'VE SEEN SOME FAIRLY SIGNIFICANT ADDITIONS IN CAPACITY, UH, SINCE LAST SUMMER OVER ALMOST 11,000 GIGAWATTS OF NEW CAPACITY. 
          AND YOU CAN SEE THE LARGE MAJORITY OF IT, UH, CONTINUES TO BE WITH STORAGE AND SOLAR. 
          THAT'S WHAT WE'VE SEEN HISTORICALLY OVER THE LAST FEW YEARS DRIVING MOST OF THE ADDITIONS ON THE GRID. 
          UH, THOSE MAKE UP OVER, UH, 9,000 MEGAWATTS OF THE ADDITIONS. 
          BUT WHAT IS, UH, I WANNA HIGHLIGHT IS THE, UH, GROWING GAS NUMBER THAT WE SEE ON THIS SLIDE. 
          WE HAVEN'T SEEN A NUMBER OF THIS SIZE WITHIN AN, IN AN ANNUAL CHANGE IN QUITE A FEW YEARS, OVER 1500 MEGAWATTS OF COMBINED NATURAL GAS AND DIESEL. 
          I THINK THERE WAS A QUESTION YESTERDAY ABOUT HOW MUCH HAS BEEN SUPPORTED BY THE TF JULIE, I THINK YOU MIGHT HAVE HAD THAT QUESTION. 
          AND THE TEXAS ENERGY FUND IS ABOUT 900 MEGAWATTS OF THIS, UH, OF THE 1200 OR SO OF THIS THAT IT IS NATURAL GAS. 
          AND SO IT'S ABOUT THREE QUARTERS OF THE, OF THE TOTAL DRIVEN BY THE, UH, THE TF UH, LOAN PROGRAM THAT IS OUT THERE. 
          UM, WE ARE, YOU KNOW, THIS ALSO MEANS THAT WE'RE IN THE, UH, OFFICIAL, UH, SUMMER INSPECTION CYCLE RIGHT NOW. 
          AND SO, UM, DAVE ELLE UNDER CHRISTIE'S TEAM, THEY'RE OUT, UH, DOING INSPECTIONS, MAKING SURE THAT THESE, THE FACILITIES GENERATING AND TRANSMISSION FACILITIES ARE ABLE TO OPERATE AND HAVE WEATHERIZED FOR THE EXTREME HEAT, UH, OF THE SUMMER THAT WE EXPECT. 
          AND SO THAT'S, UH, THAT'S A REALLY IMPORTANT PART OF OUR RELIABILITY PROCESS THAT IS NOT JUST WINTER FOCUSED. 
          WE DO IT IN THE, WE DO IT IN THE SUMMER AS WELL. 
          UM, AND THEN ONE LAST QUICK HIGHLIGHT. 
          I WANNA JUST POINT OUT THAT WE HAVE PUBLISHED TWO MORE REPORTS FOR THIS SUMMER. 
          JUNE AND JULY ARE OUT. 
          BOTH OF THEM ARE SHOWING FAIRLY LOW CHANCES OF RELIABILITY, RISK OR CONCERNS. 
          UM, YOU KNOW, AS WE CONTINUE TO SEE LOAD GROWTH COMING ON, THAT, THAT PROFILE AND PICTURE OBVIOUSLY CAN EVOLVE AND WE EXPECT IT TO EVOLVE. 
          BUT WHAT WE HAVE PUBLISHED AT THIS POINT IS STILL SHOWING FAIRLY ADEQUATE, UM, UH, CAPACITY AND, UH, LOW LIKELIHOOD OF, UH, OF, UH, EMERGENCY CONDITIONS GOING INTO THE, UH, JUNE AND JULY MONTHS. 
          AND IN ADDITION, WE'VE TALKED A LOT IN THE LAST FEW BOARD MEETINGS ABOUT THE SPECIFIC, UM, SUPPORT RESOURCES THAT WE HAVE. 
          UH, ONE EXAMPLE OF THE SOUTH TEXAS IROL, UM, WE HAVE THE LIFECYCLE MOBILE POWER UNITS THAT WERE INSTALLED AROUND SAN ANTONIO. 
          THEY ARE AVAILABLE AND READY FOR SERVICE IF THEY'RE NEEDED THIS SUMMER. 
          SO WANNA JUST MAKE THE POINT THAT THAT IS STILL AN AVAILABLE RESOURCE FOR RELIABILITY 
          [00:20:01]
PURPOSES. 
          AND THEN IN ADDITION, THE BRO THREE UNIT, WHICH WAS BROUGHT ONLINE, UH, LAST WINTER, IS GOING TO ALSO BE AVAILABLE AND THEY'RE AVAILABLE FOR DISPATCH AND WITH THE RELIABILITY MUST RUN CONTRACT THAT, UH, WE HAVE WITH THEM. 
          SO THAT'S ANOTHER RESOURCE THAT'LL BE A AVAIL THAT WILL CONTINUE TO BE AVAILABLE THROUGH THIS SUMMER. 
          I WANNA HIGHLIGHT THE, UM, EVOLUTION OF THE DISPATCHABLE RELIABILITY RESERVE SERVICE, UH, KIND OF WHERE WE ARE WITH THAT. 
          UH, WITH THAT PROJECT. 
          THIS IS A PRETTY SIGNIFICANT CHANGE. 
          AGAIN, THIS IS THE MOST SIGNIFICANT ANCILLARY SERVICE CHANGE THAT WE'RE GONNA SEE SINCE ECRS UH, CAME ONLINE BACK IN, UH, 2023. 
          THE, UH, THE DRIVER FOR THE DRRS IS, UM, IS THE STATUTE, UH, THAT PASSED IN, UH, 2023. 
          AND ONE OF THE DRIVERS IS THAT WITH ANY NEW, UH, DRRS THAT IS, UH, PURCHASED, UH, PROCURED FOR THE PURPOSE OF PROVIDING ANCILLARY SERVICES WILL BE REQUIRED TO REDUCE RUCK. 
          AND SO WHILE RUCKS ARE NEEDED, UH, FOR ADDRESSING SYSTEM RELIABILITY AND SOME CONGESTION, UH, RISKS, THEY DO REDUCE MARKET EFFICIENCY AND THEY INCREASE UPLIFT COSTS. 
          UM, AND I THINK KEITH POINTED THIS OUT YESTERDAY, WE HAVE SEEN A PRETTY SIGNIFICANT DECREASE IN RUX JUST BECAUSE OF THE RTC PLUS B IMPLEMENTATION, ABOUT 80% REDUCTION IN RUX THROUGH THE FIRST QUARTER OF THIS YEAR. 
          AND, UH, THIS IS ONE OF THE EXPECTED BENEFITS THAT WE, UH, EXPECTED TO SEE COMING OUT OF RTC. 
          WE'VE BEEN WORKING WITH COLLABORATIVELY WITH STAKEHOLDERS ON THE DESIGN OF DRRS AND TO DETERMINE SOME OF THE KEY PARAMETERS. 
          WE'VE HAD THREE TACK LED WORK LED WORKSHOPS ADDRESS ADDRESSING MAJOR DESIGN QUESTIONS THIS YEAR. 
          WE'VE GOT NPRR 1309, WHICH IS THE BASE STATUTORY REQUIREMENT OF THE DRRS UP FOR A VOTE IN THE MEETING TODAY. 
          AND WE'VE HAD SOME MAJOR DESIGN EVOLUTIONS OVER THE LAST FEW YEARS SINCE 2023. 
          UH, WE'VE UPDATED THE KIND OF THE THINKING AROUND HOW DRRS COULD BE LEVERAGED. 
          RIGHT NOW. 
          WE'VE GOT CURRENT MULTIPLE NP RRR THAT ARE BEING CONSIDERED TO DEFINE FULLY THE PARAMETERS AND OPERATIONS OF HOW DRRS COULD WORK. 
          ONE OF THOSE IS NPRR 13 10 13 10 DEFINES A RELEASE FACTOR FOR THE DISPATCHABLE RELIABILITY RESERVE SERVICE THAT COULD SERVE AS A RESOURCE ADEQUACY SUPPORT TOOL WITHOUT MAKING SIGNIFICANT DESIGN MARKET CHANGES, JUST ADDING IN A FEATURE INTO THAT ANCILLARY SERVICE THAT COULD BE LEVERAGED IN THE FUTURE IF IT WAS NEEDED. 
          UM, WE'RE GONNA BE DOING LATER THIS FALL, A RELIABILITY ASSESSMENT THAT IS GONNA LOOK AT HOW THE ERCOT GRID IS POSITIONED TO MEET THE RELIABILITY STANDARD THAT WAS DEFINED A COUPLE OF YEARS AGO. 
          AND THE DRRS PLUS WITH A RESOURCE ADEQUACY FEATURE COULD BE ONE OF THE POTENTIAL SOLUTIONS IF THERE WAS A NEED TO DO SOMETHING TO IMPROVE THE RELIABILITY STANDARD PER UH, OBJECTIVES. 
          AND SO THAT'S SOMETHING THAT WILL BE, UH, EVALUATED, UH, I THINK IN CONJUNCTION WITH, AS WE LOOK AT THE RESULTS OF THAT RELIABILITY STANDARD WORK. 
          AND THERE'S ALSO A QUESTION ABOUT THE ROLE OF E ENERGY STORAGE RESOURCES. 
          SO THERE WILL BE ANOTHER NPRR THAT IS GONNA BE DEFINED, UM, TO CONSIDER WHETHER, UH, THE ROLE AND THE DURATION REQUIREMENTS OF ENERGY STORAGE RESOURCES AND IF, IF THAT CAN BE IMPLEMENTED AT THE SAME TIME THAT WE WOULD IMPLEMENT THE, UH, THE CORE 1309. 
          OCCASIONALLY I'D LIKE TO HIGHLIGHT A FEW OF THE, UM, RESEARCH AND INNOVATION PROJECTS THAT WE ARE DOING, UM, IN OUR GRID, UH, IN OUR GRID ORGANIZATION. 
          AND, YOU KNOW, TODAY I WANNA HIGHLIGHT, UM, A LARGE LOAD MODELING INITIATIVE AND AN ENERGY STORAGE RESOURCE OPTIMIZATION INITIATIVE THAT WE'VE BEEN WORKING ON. 
          SO WE RECENTLY COMPLETED A LARGE LOAD MODELING INITIATIVE WITH TEXAS A AND M UNIVERSITY. 
          SO WE REALLY NEED TO UNDERSTAND THE PERFORMANCE CHARACTERISTICS OF LARGE LOADS, ESPECIALLY WHEN IT COMES TO TRANSMISSION LEVEL STUDIES. 
          AND SO WHAT WE'RE DOING WITH THIS WORK WITH, UH, TEXAS A AND M, THESE MODELS HAVE THAT WE'VE DEVELOPED, HAVE HELPED US TO UNDERSTAND MANY OF THE UNIQUE OPERATING CHARACTERISTICS OF THEIR BEHAVIOR, UH, MUCH BETTER. 
          AND THE STABILITY TEAM HAS BEEN ABLE TO USE THESE MODELS TO RECREATE CERTAIN GRID EVENTS THAT HAVE OCCURRED HISTORICALLY THAT WOULD'VE BEEN VERY DIFFICULT TO DO, AND TO ASSESS HOW IT AFFECTED THE GRID ABSENT HAVING THESE NEW MODELS. 
          SO WE'RE GONNA BE CONTINUING TO WORK WITH A AND M AND DEVELOPING ADDITIONAL MODELS. 
          WE PLAN TO SHARE THOSE WITH THE INDUSTRY SO THAT WE CAN GATHER FEEDBACK ON IT, AND THAT WE CAN CONTINUE TO WORK TOGETHER TO DESIGN THE REQUIREMENTS OF OUR TRANSMISSION SYSTEM THAT REALLY BEST REFLECT THE UNIQUE PERFORMANCE OF THESE LARGE, LARGE LOADS THAT ARE COMING ONLINE. 
          AND ANOTHER INITIATIVE THAT WE'RE WORKING ON IS THIS ENERGY STORAGE, UH, STATE OF CHARGE OPTIMIZATION. 
          BATTERY ENERGY STORAGE HAS OBVIOUSLY VERY UNIQUE CHARACTERISTICS THAT HELPS IT TO MAINTAIN THE RELIABILITY OF THE POWER SYSTEM. 
          THEY CAN RESPOND VERY QUICKLY TO FREQUENCY REGULATION AND, AND, UH, NET LOAD BALANCING, BUT THEY'RE ALSO LIMITED DURATION. 
          AND SO MEANING THAT WHAT A BATTERY DOES NOW IN TERMS OF ITS DECISION TO CHARGE OR TO DISCHARGE RIGHT NOW DIRECTLY AFFECTS WHAT IT CAN DO LATER. 
          SO THIS INITIATIVE IS A FIRST STEP IN DEVELOPING TOOLS THAT ENSURE THAT STORED ENERGY IS GOING TO BE AVAILABLE FOR CRITICAL PERIODS. 
          [00:25:02]
ONE ANALYSIS SCENARIO SCENARIO FOCUSES ON ROCKS AND STORAGE WAS DRASTICALLY, UH, THE STORAGE WAS STRATEGICALLY CHARGED DURING PERIODS OF NET NET LOAD AND ENERGY PRESERVED FOR DISCHARGE DURING A HIGH NET LOAD OR CONSTRAINED PERIOD DURING THE R STUDY HORIZON THAT WE DID, WHICH RESULTED IN A MUCH MORE EFFICIENT UTILIZATION OF RUX OVER TIME BECAUSE RUCKS ARE LOOKING AT TO WHAT IS GOING TO BE AVAILABLE IN A FUTURE HOUR. 
          AND IF IT CAN FACTOR IN THE EXPECTATIONS AROUND STATE OF CHARGE FOR A BATTERY, WE CAN BE MORE EFFICIENT AND POTENTIALLY MORE LIMITED IN THE USE OF RUX DURING THAT TIME PERIOD. 
          THIS ENERGY STORAGE PROOF OF CONCEPT REPRESENTS A VERY IMPORTANT STEP, STEP FORWARD TO ENSURING THAT STORED ENERGY IS NOT JUST AVAILABLE, BUT IS STRATEGICALLY POSITIONED TO SUPPORT SYSTEM RELIABILITY WHEN IT MATTERS MOST FOR THE GRID. 
          WE'RE NOW MOVING FROM A PROOF OF CONCEPT STAGE TOWARDS DEVELOPING ADDITIONAL TECHNICAL TECHNICAL CAPABILITIES AND POSSIBLE PROTOCOL CHANGES TO MAKE THE CAPABILITY AVAILABLE FOR OPERATIONAL USE. 
          THIS TOOL IS DESIGNED FOR ONLY THE MOST CRITICAL CONDITIONS WHEN THE GRID IS UNDER REAL STRESS AND EVERY AVAILABLE RESOURCE MATTERS. 
          SO THIS IS GONNA BE, AGAIN, A COUPLE OF THE KEY FOCUS AREAS. 
          WE'VE GOT A WHOLE ROADMAP THAT VENCAT TALKS ABOUT PERIODICALLY DURING OUR TECHNOLOGY AND SECURITY COMMITTEES, BUT THESE ARE A COUPLE OF THE STRATEGIC, UH, FOCUS AREAS THAT I WANTED TO HIGHLIGHT THAT ARE HAVING AN IMPACT ON THE WORK THAT WE'RE DOING TODAY. 
          AND THEN FINALLY, I WANNA CLOSE WITH, UM, WITH THE RECOGNITION AND THANK, YOU KNOW, THE GROUP OF EMPLOYEES THAT HAVE WORKED ON THIS WHOLE BATCH ZERO CONCEPT OVER THE LAST, UH, SIX PLUS MONTHS. 
          IT, THIS INCREDIBLE GROUP OF PEOPLE HAS WORKED IN LONG DAYS, NIGHTS, WEEKENDS, HOLIDAYS TO GET THIS TO, TO WHERE IT IS. 
          THERE'S 28 PEOPLE ACROSS 10 DEPARTMENTS THAT ARE NOTED ON HERE. 
          THEY'VE WORKED ON THE REVISION REQUESTS, THEY'VE SUPPORTED ALL THE DATA REQUESTS FROM THE INDUSTRY, THE ESCALATIONS, AND PREPARING TO RUN THE BATCH STUDY AND MAKING SURE THAT THE CURRENT PROCESS KEEPS RUNNING ALL ALONG IN THE INTERIM AND DOING ALL OF IT UNDER ENORMOUS SCRUTINY AND ENORMOUS PRESSURE TO GET THIS WORK DONE AS QUICKLY AS POSSIBLE. 
          THERE HAVE BEEN OVER 80 STAKEHOLDER MEETINGS, OVER 500 AVERAGE PARTICIPANTS FOR EACH OF THE WORKSHOPS THAT WE'VE HAD. 
          200 PLUS HOURS OF LIVE DISCUSSIONS WITH STAKEHOLDERS. 
          NINE OPEN MEETING DISCUSSIONS ON THIS TOPIC, UH, 200 SURVEY RESPONSES COLLECTED, AND EVERY SINGLE ONE OF THEM REVIEWED AND ANALYZED CAREFULLY, NINE PUBLISHED COMMENTS RELATED TO THE THAT ERCOT HAS PUBLISHED RELATED TO PAYER 1 45 AND NPR 1325. 
          AND I WANNA ALSO RECOGNIZE THE CRITICALLY IMPORTANT AND PART PARTNERSHIP WITH THE PUCT THAT HAS ENABLED ALL OF THIS TO GET DONE IN THE TIME PERIOD THAT IT GOT DONE. 
          IT WOULD NOT HAVE BEEN POSSIBLE WITHOUT CLEAR LEADERSHIP FROM CHAIR GLEASON AND THE ACTIVE ENGAGEMENT OF EACH OF THE COMMISSIONERS AND THE PUCT STAFF TO MAKE SURE THAT WE COULD GET THIS DONE BY TODAY. 
          SO A BIG THANKS TO THE EMPLOYEES AND TO EVERYBODY THAT WAS INVOLVED IN DOING THIS. 
          SO WITH THAT, I'LL CONCLUDE MY COMMENTS, CHAIR FLORES, AND IF THERE'S ANY QUESTIONS, I'D WELCOME THEM. 
          AND GRAY REPORT ON PABLO. 
          AND I WANT TO ECHO, UH, KUDOS TO EVERYONE FROM TEAM C**K, TEAM, PUCT, AND ALSO THE TAG STAKEHOLDERS THAT WERE PART OF, UH, UH, THE BATCH ZERO PROCESS. 
          IT WAS AMAZING WORK AND AN INCREDIBLY SHORT PERIOD OF TIME. 
          ANY QUESTIONS FOR PABLO? ANY COMMENTS? OKAY, WITH THAT, WE'LL MOVE ON. 
          THANK YOU, PABLO. 
          UH, 
          [12. Update on Texas Economy]
WE'LL NOW WELCOME PIUS, UH, TO PRESENT AGENDA ITEM 12, UPDATE ON THE TEXAS ECONOMY. 
          UM, MS IS A LABOR ECONOMIST AT THE FEDERAL RESERVE BANK OF TEXAS, WORKING ON REGIONAL ECONOMIC GROWTH AND DEMOGRAPHIC CHANGE. 
          SHE MANAGES THE REGIONAL AND MICROECONOMICS GROUP IN THE DALLAS FED RESEARCH DEPARTMENT. 
          UH, PIA, PLEASE PROCEED WHEN READY. 
          AND WELCOME BACK. 
          IT'S GOOD TO SEE YOU AGAIN. 
          AH, THANK YOU SARAH. 
          THANKS FOR HAVING ME BACK. 
          I APPRECIATE BEING HERE AND, UM, I WISH YOU ALL GOOD MORNING, UH, BRING YOU THIS YEAR, THE ROLLERCOASTER THEME BECAUSE, UH, IT'S, UH, INTERESTING TIMES, UH, FOR MANY OF US FOR , CERTAINLY FOR THE FEDERAL RESERVE. 
          SO SOMETIMES IT CAN BE HARD TO SEE WHERE YOU'RE HEADED WHEN YOU'RE UPSIDE DOWN ON THE ROLLERCOASTER. 
          UH, BUT, UH, WITH THAT, UH, BEFORE I BEGIN, LET ME, UH, ISSUE OUR STANDARD DISCLAIMER. 
          IT'S, UH, OUR VIEWS, OF COURSE, ME AND MY CO-AUTHOR, UH, ROBERT LAY, AND SO THEY DON'T REFLECT THE VIEWS OF THE FEDERAL RESERVE SYSTEM. 
          SO LET'S START WITH AN OVERVIEW. 
          I WANTED, UH, POINT OUT, YOU KNOW, THERE'S REALLY SOME GOOD NEWS THAT TEXAS ECONOMIC GROWTH HAS REALLY SPED UP THIS YEAR. 
          WE'RE SEEING THAT JOB AND OUTPUT GROWTH HAVE ACCELERATED AND, UH, CONSUMPTION DESPITE HIGHER PRICES, CONSUMPTION APPEARS RESILIENT. 
          UM, CERTAINLY THE DATA CENTER CONSTRUCTION AND OTHER, REALLY WHAT WE'RE SEEING MORE BROADLY IS A KIND OF A MANUFACTURING BOOM IN THE STATE AND BROADLY IN THE NATION AS WELL. 
          IT'S HELPING OFFSET WHAT WE'RE SEEING ALSO IN RESIDENTIAL CONSTRUCTION, WHICH IS A DOWNTURN. 
          UH, HOUSING MARKETS ARE WEAK IN TEXAS IN PARTICULAR. 
          AND, UM, OF COURSE HIGHER FUEL COSTS, UH, ARE PUTTING PRESSURE ON SPENDING, UM, IN OTHER SECTORS OF, OF, OF RETAIL MARKETS. 
          OUR FORECAST IS CALLING FOR CONTINUED GROWTH. 
          SO THAT'S GOOD. 
          UH, AGAIN, THE 
          [00:30:01]
OUTLOOK IS A LITTLE BIT CLOUDED BY THE IRAN WAR. 
          UM, AND THE OTHER MAIN CONCERN THAT WE HAVE IN THE SHORT RUN IS, UM, STALLED LABOR FORCE GROWTH. 
          AND I'LL GO MORE INTO THAT HERE IN A MINUTE. 
          UM, SO ON THE KIND OF THE TAILWINDS, UH, THERE'S A TREMENDOUS MOMENTUM IN AI INVESTMENT, AS YOU KNOW, AND, UM, DATA CENTER CONSTRUCTION ON IS, IS IS ONGOING AND THERE'S MASSIVE INVESTMENT OBVIOUSLY IN THIS AI TECHNOLOGY. 
          UM, WE ALSO HAVE VERY EXPANSIONARY FISCAL POLICY NATIONALLY, AND SO THAT'S HELPING BOOST GROWTH. 
          UM, AND HERE IN TEXAS, THE HIGHER OIL PRICES, WHILE THEY MAKE IT, YOU KNOW, HARDER FOR CONSUMERS, UM, BECAUSE WE'RE SUCH A MASSIVE PRODUCER AND EXPORTER OF OIL AND GAS, UH, REALLY HIGHER OIL PRICES WE EXPECT AND THE MODELS PREDICT WILL ADD TO GROWTH ON THAT. 
          UM, LOWER TARIFFS THIS YEAR, COMPARED TO LAST YEAR ARE ALSO HELPING KIND OF BOOST OUR OUTLOOK, UM, FOR TEXAS. 
          UM, IN TERMS OF HEADWINDS, UM, AS WE LOOK AT OUR FORECAST, THE HEADWINDS ARE SIMILAR TO WHAT THEY WERE LAST YEAR. 
          UM, SO, BUT SOME OF THEM ARE INTENSIFYING AND SOME OF THEM ARE, ARE LESS INTENSE. 
          SO, SO, UM, WE'RE, WE'RE NOT DEALING WITH KIND OF THE HIGH LEVEL OF TARIFFS THAT WE DEALT WITH LAST YEAR, BUT WE ARE DEALING WITH REALLY LOW RATES OF, UM, IN MIGRATION INTO THE STATE. 
          AND WE'LL LOOK AT THAT ALSO, OF COURSE, GEOPOLITICAL UNCERTAINTY, UH, IN THE MIDDLE EAST. 
          UM, AND THEN FEDERAL GOVERNMENT CUTBACKS ARE WEIGHING ON THE EDUCATION AND HEALTH SECTORS IN OUR STATE AND AFFECTING THE SAFETY NET, UM, FOR SOME, UH, TEXAN FAMILIES. 
          AND THEN OF COURSE, AGAIN, AS I MENTIONED, HIGHER INFLATION IS REDUCING THE PURCHASING POWER OF CONSUMERS IN OUR STATE. 
          SO LET'S GET STARTED WITH, UH, LOOKING AT JOB GROWTH REALLY, AND, AND, AND OUTPUT GROWTH. 
          THOSE ARE KIND OF SOME OF OUR MAIN INDICATORS. 
          UM, SO THIS IS THE ANNUAL JOB GROWTH AND THE LAST BAR HERE, UH, IN BLUE IS TEXAS JOB GROWTH YEAR TO DATE. 
          AND SO REALLY WHAT YOU'LL NOTICE IS THAT, UH, IN 2025, WE HAD VERY WEAK GROWTH. 
          WE HAD 0.6% JOB GROWTH IN TEXAS, WHICH WAS VERY LOW. 
          THE NATION HAD EVEN LOWER JOB GROWTH, ALMOST DIDN'T CREATE ANY JOBS AT ALL, 0.1. 
          UM, AND SO THAT WAS VERY CONCERNING. 
          WE ARE VERY HAPPY THIS YEAR TO SEE, UH, REALLY A BOUNCE BACK. 
          WE'RE AVERAGING 1.5% JOB GROWTH SO FAR THIS YEAR AT AN ANNUALIZED RATE, AND THE US IS ABOUT 0.6, SO WE'RE STILL NOT WHERE WE ARE TYPICALLY, UH, HISTORICALLY, UH, BUT IT'S STILL A ROBUST PACE OF GROWTH. 
          SO, UM, WE'RE HAPPY TO SEE THAT. 
          UM, THE OTHER INTERESTING THING IS THAT, UM, WE DON'T, THIS IS GDP GROWTH ALSO FOR TEXAS AND BLUE AND THE US AND RED. 
          BUT THE INTERESTING THING HERE IS THAT, UM, WELL WE DON'T HAVE 2026 DATA YET, BUT THROUGH 2025, YOU CAN SEE THAT WE STILL HAD PRETTY GOOD GDP GROWTH IN TEXAS AND, UM, THE NATION, DESPITE VERY LOW RATES OF JOB GROWTH. 
          SO 2.3% GDP GROWTH IN TEXAS, 2% IN THE US WE AVERAGE TYPICALLY HIGHER THAN THAT, BUT THAT'S STILL A RESPECTABLE RATE OF GROWTH. 
          AND GIVEN THAT WE DIDN'T CREATE MANY JOBS LAST YEAR, IT REALLY IMPLIES A VERY HIGH RATE OF PRODUCTIVITY. 
          AND OF COURSE, PRODUCTIVITY IS THE SECRET SAUCE THAT MAKES, YOU KNOW, UH, THAT MAKES US ALL BETTER OFF, UH, WHEN PRODUCTIVITY GROWTH IS, IS IS HIGHER. 
          SO, SO WE WERE ABLE TO GROW OUTPUT WITHOUT REALLY GROWING JOBS. 
          UM, THE OTHER THING THAT'S INTERESTING IS THAT WE DIDN'T CREATE A LOT OF JOBS, BUT WE ALSO, UNEMPLOYMENT RATE, HOWEVER, WAS, WAS STABLE AND SO, AND, AND CONTINUES TO BE STABLE THIS YEAR. 
          SO I'M SHOWING YOU TWO MEASURES OF UNEMPLOYMENT HERE. 
          ONE IS THE HEADLINE RATE, THAT'S THE LOWER NUMBER. 
          SO FOR TEXAS AND US, YOU CAN SEE WE'RE AT ABOUT 4.3%, UM, UNEMPLOYMENT, UM, CURRENTLY, AND THAT'S BEEN RELATIVELY STABLE. 
          IT WAS PRETTY STABLE, UH, FOR MOST OF LAST YEAR. 
          THE OTHER MEASURE I'M SHOWING YOU IS A BROADER MEASURE OF UNEMPLOYMENT THAT INCLUDES PEOPLE THAT HAVE STOPPED LOOKING FOR JOBS BECAUSE THEY WERE DISCOURAGED, OR PEOPLE WHO ARE SETTLING FOR A PART-TIME JOB, EVEN THOUGH THEY WOULD LIKE A FULL-TIME JOB. 
          SO THAT BROADER MEASURE IS CALLED THE U SIX. 
          AND, UM, SO WE WERE CONCERNED LAST YEAR BECAUSE THAT WAS MOVING UP HIGHER. 
          UM, AND SO, UH, WE WERE WATCHING THAT CAREFULLY. 
          AND THEN INTERESTINGLY, THIS YEAR SO FAR IT'S ACTUALLY MOVED DOWN. 
          SO WE'RE NOT REALLY SEEING, UH, ANY BROAD SLACK IN THE LABOR MARKET. 
          IN FACT, UM, THE LABOR MARKET AS FAR AS UNEMPLOYMENT IS LOOKING PRETTY GOOD. 
          UM, SO THERE ARE OTHER THINGS THOUGH GOING ON, WHICH ARE SOME CONSTRAINTS ON GROWTH. 
          AND SO, UM, AND I THINK I MENTIONED THIS WHEN I CAME LAST YEAR, AND I TRIED TO ALWAYS BRING THIS IN. 
          THE MAIN REASON THAT TEXAS IS ABLE TO GROW SO MUCH FASTER THAN THE NATION, WE TYPICALLY GROW TWICE AS FAST AS A NATION IN AN AVERAGE YEAR. 
          UM, AND THAT'S REALLY BECAUSE OF MIGRATION. 
          AND SO IT'S MIGRATION FROM OTHER STATES, UH, AND IT'S MIGRATION FROM OTHER COUNTRIES. 
          AND THIS IS WHERE WE'RE SEEING, UH, BIG DECLINES. 
          UM, SO THIS IS NET MIGRATION INTO TEXAS BY YEAR AND DIVIDED 
          [00:35:01]
INTO INTERNATIONAL AND DOMESTIC. 
          AND SO YOU CAN SEE KIND OF WHERE WE WERE IN 20 22, 20 23, AND 2024, WE HAD TREMENDOUS, UH, NET MIGRATION INTO THE STATE. 
          BOTH IT WAS PREDOMINANTLY, I MEAN, IT WAS BOTH DOMESTIC AND INTERNATIONAL, I GUESS IN 2024, IT WAS PREDOMINANTLY INTERNATIONAL. 
          SO WE HAD THIS INCREDIBLE RECORD IN MIGRATION TO THE STATE. 
          OH, WELL OVER 400,000 NET PEOPLE, UH, IN ADDITION ON, UH, PER YEAR. 
          AND THEN IN 2025 THAT REALLY DROPPED DOWN ALMOST BY 50%. 
          AND WE'RE PROJECTING THAT THIS YEAR IT'LL FALL, UH, YOU KNOW, ACTUALLY BY MORE THAN 50%. 
          UM, SO THIS IS A CHALLENGE IN THE SENSE THAT CERTAIN INDUSTRIES, CERTAINLY IN TEXAS RELY ON NOT JUST PRODUCTIVITY GROWTH, BUT ACTUAL ACTUAL GROWTH, GROWTH ALONG THE EXTENSIVE MARGIN, LIKE MORE BO MORE BODIES . 
          SO, SO THERE'S THAT. 
          UM, AND THEN, UM, UH, YEAH, SO, AND THEN HOW DO YOU GROW JOBS AT, AT, AT SUCH A HIGH PACE, THE PACE AT WHICH WE'RE ACCUSTOMED TO, UH, WITHOUT THE WORKERS. 
          SO THIS IS SOMETHING THAT WE'RE WATCHING AND THIS IS SOMETHING THAT COULD BE CONSTRAINING, UM, THE OUTLOOK. 
          NOW, DESPITE THIS OF COURSE, UH, LIKE I MENTIONED, TEXAS HAS GROWN JOBS AT A PRETTY GOOD CLIP SO FAR THIS YEAR. 
          SO WHERE ARE WE SEEING THIS JOB GROWTH BY INDUSTRY? AND THIS IS PRETTY INTERESTING. 
          SO HERE I'M KIND OF LOOKING AT THE MAIN SECTOR SO YOU CAN SEE EXACTLY WHERE WE'RE GROWING THE JOBS. 
          AND I CIRCLED THE TWO THAT I THINK ARE THE, YOU KNOW, THE BIGGEST CONTRIBUTORS. 
          AND, AND, AND SO ONE IS PROFESSIONAL AND BUSINESS SERVICES, WHICH DIDN'T REALLY GROW LAST YEAR AT ALL, BUT IS REALLY EXPANDING VERY QUICKLY THIS YEAR. 
          6.1% ANNUALIZED GROWTH SO FAR THIS YEAR IN PROFESSIONAL AND BUSINESS SERVICES, VERY UNUSUAL. 
          SO WHEN YOU, THAT'S REALLY MOSTLY WHITE COLLAR WORK, AND THOSE ARE REALLY HIGH PAID JOBS. 
          A LOT OF THEM ARE IN DALLAS AND AUSTIN. 
          UH, BUT WHEN YOU LOOK MORE CLOSELY AT WHAT'S DRIVING THAT NUMBER SO FAR THIS YEAR, IT'S A LOT OF TEMPS EMPLOYMENT SERVICES. 
          SO IF FIRMS ARE HIRING A RECORD NUMBER OF TEMPS SO FAR THIS YEAR, WE'RE REALLY KIND OF TRYING TO DIG INTO THAT. 
          IT'S VERY UNUSUAL. 
          IF YOU GUYS HAVE ANY IDEA WHAT'S GOING ON, CERTAINLY SHOOT ME AN EMAIL. 
          BUT, BUT THAT, THE GOOD NEWS ABOUT TEMP EMPLOYMENT GROWTH IS USUALLY IT MEANS THAT DEMAND FOR WORKERS IS PICKING UP. 
          AND SO THAT, YOU KNOW, IN, IN A FEW MONTHS, WE SHOULD SEE THAT PLAY OUT IN, IN STRENGTHEN LABOR DEMAND AND JOB GROWTH MORE BROADLY. 
          SO THAT'S, THAT'S CERTAINLY A POSITIVE SIGN ABOUT TEMPS. 
          BUT WHEN YOU'RE HIRING PEOPLE TEMPORARILY AND YOU'RE NOT HIRING THEM PERMANENTLY, ALSO COULD MEAN THAT YOU ARE, UH, UNCERTAIN ABOUT THE PERSISTENCE OF LABOR DEMAND. 
          SO YOU ARE WANNA NOT LIKE PLUNGE RIGHT IN AND HIRE SOMEBODY PERMANENTLY, BUT YOU'RE JUST, UH, DOING, DOING IT TEMPORARILY. 
          SO TILL YOU CAN SEE, YOU KNOW, IS THIS A PICKUP IN DEMAND THAT YOU'RE EXPERIENCING AS A FIRM? IS THAT, IS THAT GONNA STICK AROUND? UM, AND LASTLY, IT COULD REFLECT, UM, DIFFICULTY FINDING WORKERS ON YOUR OWN. 
          SO IT'S HARD, UH, YOU'RE SPENDING A LOT OF TIME AND RESOURCES SEARCHING FOR WORKERS. 
          YOU MAY JUST, UM, OPT OUT AND JUST TURN TO AN EMPLOYMENT AGENCY, UM, AND TO KIND OF NOT, NOT SPEND SO MANY RESOURCES ON SEARCH. 
          AND THAT COULD BE REFLECTING SOME OF THE LABOR SHORTAGES IN THE LABOR MARKET. 
          SOME OF THAT IS RELATED TO THE IMMIGRATION, UM, SITUATION WE'RE EXPERIENCING. 
          UH, AND THE DECLINE IN DOMESTIC MIGRATION, IT IS, UM, CERTAINLY THE LABOR, UM, FORCE IS, UM, DEPENDING ON WHICH NUMBER YOU LOOK AT IS EITHER NOT GROWING AT ALL, UH, OR WORSE. 
          UM, AND SO VERY LITTLE LABOR FORCE GROWTH, IT'LL BE INTERESTING TO SEE HOW THAT'S GONNA DEVELOP GOING FORWARD AND WHETHER THE TEMP, UH, MOMENTUM WE'RE SEEING IN EMPLOYMENT SERVICES IS PART OF THAT. 
          UM, THE OTHER REALLY INTERESTING DEVELOPMENT IS CONSTRUCTION EMPLOYMENT GROWTH. 
          AND SO WE SAW THAT LAST YEAR AND UH, WE'RE SEEING IT EVEN, YOU KNOW, UH, BIGGER BOOST IN CONSTRUCTION EMPLOYMENT THIS YEAR. 
          WE'VE LIKE NEVER, I CAN'T REMEMBER A TIME WE'VE SEEN SUCH HIGH GROWTH IN CONSTRUCTION EMPLOYMENT. 
          AND AGAIN, IT'S NOT RESIDENTIAL, IT'S NOT APARTMENTS AND IT'S NOT SINGLE FAMILY HOMES 'CAUSE THAT CONSTRUCTION ACTIVITY HAS GONE DOWN, NOT UP. 
          SO, YOU KNOW, I THINK YOU GUYS CAN GUESS, YOU KNOW WHAT I'M GONNA SAY ON CONSTRUCTION EMPLOYMENT. 
          UM, BUT MAKE YOU WAIT A LITTLE BIT, UH, BUILD THE EXCITEMENT HERE IN THE ROOM. 
          UH, OKAY, SO WHAT IS HAPPENING IN CONSTRUCTION? OKAY, SO THIS IS CONSTRUCTION CONTRACT VALUES. 
          UM, AND SO LOOK AT THE TOTAL LINE IS GOING UP, THAT'S THE BLACK LINE. 
          AND THEN THE RESIDENTIAL, AGAIN, THAT'S APARTMENTS IN IN IN SINGLE FAMILY HOMES. 
          SO THAT'S KIND OF WENT DOWN SIGNIFICANTLY LAST YEAR AND HAS KIND OF BEEN STABLE AT A LOWER LEVEL. 
          UM, SO, YOU KNOW, LAST YEAR WE WERE TALKING ABOUT A, A RECESSION IN RESIDENTIAL CONSTRUCTION ACTIVITY. 
          UM, AND SO WHY IS THAT HAPPENING? WELL, BASICALLY BECAUSE HOUSE PRICES ARE FALLING, UM, YOU KNOW, IF YOU, HERE I'M SHOWING YOU HOUSE PRICES YEAR OVER YEAR CHANGING IN THE US IN RED, SO THOSE ARE SLIGHTLY POSITIVE. 
          AND IN TEXAS AND BLUE AND THEN DALLAS, ONES THAT ARE IN THE KIND OF TEAL LINE. 
          SO IN DALLAS HOME PRICES ARE ACTUALLY FALLING, UH, IN TEXAS AS A WHOLE, THEY'RE 
          [00:40:01]
ALMOST ZERO, UH, GROWTH YEAR ON YEAR IF YOU ADJUST FOR INFLATION, THAT'S A NEGATIVE NUMBER. 
          UM, SO COMBINED WITH FALLING PRICES, UH, YOU KNOW, WE ALSO HAVE HIGH MORTGAGE RATES AND THEY JUST MOVED UP AGAIN LAST WEEK. 
          UM, SO THAT'S REALLY MAKING, GETTING INTO A NEW HOME, VERY UNAFFORDABLE FOR TEXAS FAMILIES. 
          UM, SO THAT'S REALLY SUPPRESSING CONSTRUCTION IN THE RESIDENTIAL SECTOR. 
          SO WHAT IS GROWING? LET'S GET BACK TO IT. 
          UM, SO WHAT'S GROWING IS HERE, THE GREEN LINE AND THE BLUE LINE. 
          SO WHAT'S THE GREEN LINE? GREEN LINE IS NON BUILDING. 
          SO IF YOU LOOK, THAT'S CONSTRUCTION ACTIVITY, POWER PLANTS, UH, WATER INFRASTRUCTURE, THOSE TYPES OF, UH, YOU KNOW, ROADS AND THINGS. 
          AND THAT'S REALLY, AND, AND THAT, THAT GREEN LINE IS VERY VOLATILE AND IT REALLY MOVED UP SURGED LAST YEAR. 
          AND SO WE THINK IT'S RELATED TO THE POWER INFRASTRUCTURE CERTAINLY AND ALSO THE IMPROVEMENTS WE'RE DOING AT WATER INFRASTRUCTURE IN THE STATE AND OTHER INFRASTRUCTURE IMPROVEMENTS. 
          SO THAT'S A POSITIVE DEVELOPMENT, BUT IT SPIKES AND THEN IT'LL COME BACK DOWN. 
          UM, THE NON-RESIDENTIAL IS THE, IS THE BLUE LINE, AND THAT'S REALLY MORE WHAT I'M GONNA TALK ABOUT THAT'S REALLY BEEN TRENDING UP, UM, SINCE 20 21, 20 22. 
          AND THAT'S WHERE THE DATA CENTERS ARE . 
          SO LET'S LOOK MORE CLOSELY AT THAT DATA CENTER ACTION. 
          SO THAT'S THE LIGHT BLUE LINE HERE. 
          YOU SEE, IT'S REALLY BEEN, UM, EXPONENTIAL GROWTH IN THE CONSTRUCTION ACTIVITY AROUND DATA CENTERS. 
          UH, REALLY OVERALL, LAST YEAR IT WAS ABOUT 11 BILLION OR ABOUT 5.7% OF TOTAL CONSTRUCTION ACTIVITY WAS JUST DATA CENTERS. 
          BUT IF YOU, BY THE END OF THE YEAR, GIVEN IT WAS, WAS RISING ALL LAST YEAR, IT WAS CLOSER TO TO 9% OF TOTAL CONSTRUCTION ACTIVITY. 
          SO YOU THINK JUST DATA CENTERS, THAT'S A TREMENDOUS SHARE OF CONSTRUCTION ACTIVITY GROWTH, THAT'S JUST DATA CENTERS. 
          UM, TEXAS RATES PRETTY HIGH ON DATA CENTER CONSTRUCTION. 
          WE ARE NUMBER TWO IN THE NATION. 
          WE'RE CONSISTENTLY NUMBER TWO AFTER VIRGINIA. 
          UM, AND SO YOU CAN UNDERSTAND WHY IF YOU WANNA BUILD A DATA CENTER, UH, AND YOU HAVE YOUR PICK, UH, OF ANY STATE, UH, IN THE COUNTRY, THAT IT MAKES A LOT OF SENSE TO COME TO TEXAS. 
          CHEAP LAND PRICES, UH, YOU KNOW, EASY, RELATIVELY EASY PERMITTING, UH, AND RELATIVELY LOW ELECTRICITY PRICES THANKS TO ERCOT. 
          UH, SO THESE ARE ALL, UM, REASONS TO COME TO TEXAS AND YOU KNOW, FRANKLY, YOU KNOW, I LOOK AT THESE DATA AND I THINK IT COULD EVEN LIKE CATAPULT US INTO THE TOP STATE FOR DATA CENTER CONSTRUCTION. 
          AND I DON'T KNOW IF Y'ALL THINK THAT'S GOOD NEWS OR BAD NEWS. 
           CERTAINLY MORE CHALLENGES FOR OUR CO UM, SO ONE CONCERN WITH DATA CENTERS OF COURSE IS WHAT IT'S GONNA DO TO ELECTRICITY PRICES. 
          AND, UM, SO, SO SO FAR PRETTY GOOD. 
          LET ME SHOW YOU SOME. 
          THIS IS RETAIL ELECTRICITY PRICES. 
          SO IT'S NOT JUST WHOLESALE ELECTRICITY, IT'S ACTUALLY INCLUDES TRANSMISSION AND DISTRIBUTION. 
          SO, UM, THIS IS REALLY HOW ELECTRICITY PRICES, INFLATION ADJUSTED, HAVE DEVELOP, YOU KNOW, HAVE EVOLVED SINCE 2015. 
          CALIFORNIA, THAT'S NOT A DATA CENTER THING, I DON'T THINK IT'S MOSTLY TRANSMISSION AND DISTRIBUTION. 
          THEY HAVE HAD A LOT OF FIRES THAT HAVE DESTROYED A LOT OF THEIR INFRASTRUCTURE AROUND ELECTRICITY TRANSMISSION. 
          AND SO THEY'VE HAD TO REBUILD THAT. 
          THEY'VE FACED A LOT OF COSTS, UH, FIXED COSTS IN THEIR ELECTRICITY PRICES. 
          SO THAT'S REALLY, UH, BEEN DRIVING THEIR PRICES UP QUITE A BIT OVER THIS PERIOD OF TIME. 
          TEXAS IS THE BOTTOM LINE. 
          IT'S THE BLUE LINE AGAIN, AND THERE IF YOU ADJUST FOR INFLATION, YOU CAN SEE ELECTRICITY. 
          RETAIL ELECTRICITY PRICES ARE ACTUALLY DOWN, UH, FROM 2015. 
          SO WE'RE REALLY NOT SEEING THE DATA CENTER CONSTRUCTION, WHICH HAS BEEN MASSIVE PLAY OUT IN ELECTRICITY PRICES HERE YET. 
          UM, BUT YOU CAN SEE IN VIRGINIA A. LITTLE BIT, IT LOOKS LIKE DEFINITELY IN VIRGINIA STARTED LAST YEAR IN PARTICULAR, THAT ORANGE LINE TO MOVE UP. 
          WE THINK THAT'S THE NUMBER ONE STATE FOR DATA CENTER CONSTRUCTION. 
          WE'RE THINKING THAT'S SPILLING OVER INTO ELECTRICITY PRICES AND, AND THAT, THAT WOULD MAKE SENSE. 
          WE ACTUALLY HAVE SOME REALLY INTERESTING RESEARCH AT THE DALLAS FED, AND I WANTED TO SHARE THE CONCLUSIONS OF THAT RESEARCH, UH, BY MY COLLEAGUES, OWEN K AND RE TAYLOR AND THEIR CO-AUTHOR. 
          AND THEY'RE ACTUALLY MEASURING A LOT OF THESE THINGS EXACTLY, UH, WITH GREAT DATA THAT THEY WERE ABLE TO GET ON DATA CENTER CONSTRUCTIONS, UH, AND OPENINGS AND UH, AND ELECTRICITY PRICES. 
          AND THAT CERTAINLY MAKE A LOT OF ASSUMPTIONS ABOUT LOW GROWTH AND SO FORTH. 
          BUT, UH, BUT THEY LOOK AT WHOLE THE IMPACT OF DATA CENTERS ON WHOLESALE ELECTRICITY PRICES, AND HERE'S WHAT THEY FIND. 
          SO LOOKING BACKWARD, THEY FIND THAT, UH, NEW DATA CENTERS OR DATA CENTERS IN TOTAL HAVE ADDED ABOUT 3%, UM, TO WHOLESALE ELECTRICITY PRICES IN OUR REGION IN THE ERCOT REGION, UM, IN THE PERIOD 2021 TO 2025. 
          SO 3% IS, IS NOT MUCH. 
          UM, AND SO, AND THAT'S SIGNIFICANTLY LESS THAN THE NATIONAL AVERAGE. 
          SO, SO LIKE I SAID ON THE PRIOR SLIDE, DOESN'T SEEM LIKE WE'RE SEEING A LOT OF PRESSURE ON PRICES HERE YET. 
          FORWARD-LOOKING. 
          HOWEVER, CONTINUED DATA CENTER CONSTRUCTION 
          [00:45:01]
AND OPENINGS ARE EXPECTED TO ADD ABOUT 10% TO WHOLESALE ELECTRICITY PRICES IN THE ERCOT REGION IN 2026 TO 2028. 
          UM, SO THAT'S STILL BELOW THE NATIONAL AVERAGE , YOU KNOW, COULD BE WORSE. 
          UM, SO THAT'S KIND OF, UM, THAT'S KIND OF WHAT WE'RE DEALING WITH. 
          AND CERTAINLY, UM, THE WORKING PAPER IS AVAILABLE ONLINE AT THE DALLAS FED WEBSITE. 
          SO I ENCOURAGE YOU TO GO AND LOOK AT THE ASSUMPTIONS THAT THEY MAKE TO GET THESE RESULTS. 
          AND THEN, OR EVEN BETTER INVITE THEM AND SPEAK TO THE BOARD. 
          UM, SO YOU CAN HEAR FIRSTHAND FROM THEIR RESEARCH. 
          BUT I REALLY TOOK AWAY GOOD NEWS TIMES TWO, WHICH IS KIND OF MY LAST BULLET ON THE SLIDE, WHICH IS FROM READING THEIR PAPER. 
          FROM WHAT I UNDERSTAND, IT MEANS THAT, UM, ERCOT REGION PRICE INCREASES REALLY ARE LOWER THAN THE NATIONAL AVERAGE DESPITE ALL THE DATA CENTER CONSTRUCTION. 
          AND WE ARE STILL PROJECTED TO HAVE THE LOWEST WHOLESALE PRICES FOR ELECTRICITY IN THE NATION, AT LEAST OVER THE NEXT TWO YEARS OR SO. 
          UM, ALTHOUGH NOT NEARLY BY AS MUCH AS BEFORE. 
          SO THERE'S THAT. 
          UM, SO I HOPE YOU ENJOYED THAT RESEARCH. 
          UM, LET'S TURN TO, UM, TRADITIONAL ENERGY. 
          SO OIL AND GAS MARKETS, LET'S SAY. 
          UM, AND TALK A LITTLE BIT ABOUT DEVELOPMENTS THERE. 
          SO WE MENTIONED THE GEOPOLITICAL UNCERTAINTY, UNCERTAINTY, WE MENTIONED THE IRAN WAR IN PARTICULAR, AND AS YOU KNOW, IT'S DONE A LOT TO OIL PRICES. 
          AND HERE I'M TRYING TO SHOW YOU JUST HOW QUICKLY OIL PRICES MOVED SHARPLY HIGHER WITH THE IRAN WAR, WHICH STARTED IN MARCH. 
          UM, SO HERE, YOU KNOW, WHEN I TURNED IN MY SLIDES, WTI WAS ABOVE A HUNDRED. 
          I THINK TODAY IT'S CLOSER TO $92 A BARREL. 
          UM, AND THAT'S OF COURSE FAR ABOVE THE BREAK EVEN PRICE FOR DRILLING A NEW WELL IN THE PERMIAN, UH, WHICH IS CLOSER TO MAYBE $55. 
          UM, AND SO YOU'D THINK WITH THESE HIGH PRICES, SURELY TEXAS OIL COMPANIES OR NATIONAL OIL COMPANIES THAT OPERATE IN THE PERMIAN, WELL SURELY GO OUT THERE AND DRILL MORE. 
          WELL, OF COURSE, THE UNCERTAINTY HERE IS HOW LONG THESE PRICES WILL LAST. 
          AND SO MOST PEOPLE DON'T THINK THEY WILL LAST THAT LONG. 
          UH, NOT LONG ENOUGH TO MOTIVATE MORE DRILLING, WHICH REALLY TO DRILL A NEW WELL AND BRING IT ONLINE FOR PRODUCTION, UH, CAN TAKE SIX TO 12 MONTHS. 
          SO REALLY TO WARRANT MORE DRILLING ON THE BASE OF THIS PRICE SURGE, IT WOULD REALLY HAVE TO BE MORE LONG TERM, UM, THAN WE EXPECT IT TO BE. 
          I THINK ANALYSTS KEEP EXPECTING THE IRAN WAR TO BE RESOLVED. 
          UH, LAST I HEARD, YOU KNOW, IT'S, YOU KNOW, BY THE END OF THE SUMMER, BUT OF COURSE THIS KEEPS GETTING MOVED OUT. 
          UM, YOU KNOW, AS IT AS IT CONTINUES, WE SEE IN THAT BLUE LINE A LITTLE UPTICK IN TEXAS RIG COUNT, BUT CERTAINLY NOTHING TO WRITE HOME ABOUT. 
          AGAIN, FOR THE REASONS, UM, THAT I'M MENTIONING. 
          UM, THERE ARE OTHER HEADWINDS THAT, UH, TEXAS OIL PRODUCERS FACE, UM, AND THAT'S CERTAINLY, UM, SOME OF THE USUAL CONCERNS. 
          BUT ONE MAJOR ONE, UM, AND I'LL GET TO THAT IN A MINUTE, IS CERTAINLY THE FACT THAT WHEN YOU TAKE THE OIL OUT, YOU ALSO TAKE OUT, YOU GET A LOT OF ASSOCIATED NATURAL GAS AND THERE'S NOWHERE TO, THERE'S NOWHERE TO PUT IT. 
          UH, PIPELINES, GAS PIPELINES OUT OF THE PERMIAN ARE FULL, AND SO THERE'S NO TAKEAWAY CAPACITY. 
          SO IT'S A, IT'S ACTUALLY A COST FOR THE OIL PRODUCER TO TRY TO MOVE OUT HIS GAS AS IF HE TRIES TO INCREASE PRODUCTION OF OIL. 
          UM, WE HAVE SOME, IF YOU'RE INTERESTED, REALLY THIS, THE CLOSURE OF THE STRAIT OF HORUS HAS SHUT IN A LOT OF OIL PRODUCTION. 
          THAT'S KIND OF WHY THE OIL PRICES HAVE MOVED OUT, MOVED UP. 
          UM, RIGHT NOW WE THINK ABOUT, UM, I THINK THE GLOBAL PRODUCTION OF OIL OR THE SHUT IN OIL PRODUCTION IS ABOUT 13% OF THE GLOBAL TOTAL. 
          SO BETWEEN 10 AND 15 MILLION BARRELS PER DAY. 
          HERE'S SOME ESTIMATES I'M SHARING WITH YOU ON THE, ON THE LEFT FOR DIFFERENT COUNTRIES IN TERMS OF, YOU KNOW, THE SHUT IN IS BAD BECAUSE WHEN YOU SHUT THE WELL IN, YOU HAVE TO STOP IT FROM PRODUCING. 
          AND THEN OF COURSE, IN ORDER TO START IT BACK UP AGAIN, YOU GOTTA GO IN AND, AND BUILD UP THE PRESSURE IN THE WELL AND GET THE OIL TO COME OUT. 
          SO THAT TAKES TIME TOO. 
          SO ON THE RIGHT I'M KIND OF SHARING WHAT ANALYSTS THINK IS HOW LONG IT'LL TAKE TO BRING THAT SHUT IN PRODUCTION BACK IN THE MIDDLE EAST. 
          AND SO WE THINK, UH, YOU KNOW, FOUR TO SIX MONTHS IS REALLY KIND OF WHAT THE EXPECTATIONS. 
          SO ONCE THE HOSTILITY SEES THE STRAIGHT OF HORROR MOVES IS OPEN, WE'RE STILL EXPECTING, UM, YOU KNOW, IT'LL TAKE FOUR TO SIX MONTHS TO GET THAT OIL PRODUCTION BACK UP. 
          IN THE MEANTIME, HERE IN THE US WE'RE THE NUMBER ONE PRODUCER OF OIL IN THE WORLD. 
          WE'RE PRODUCING, YOU KNOW, 13 AND A HALF TO 14 MILLION BARRELS PER DAY. 
          WE'RE EXPORTING AS MUCH AS WE CAN, BUT WE'RE AT CAPACITY. 
          WE'RE REALLY AT CAPACITY. 
          AND SO THERE'S REALLY NOTHING WE CAN DO TO ADDRESS THIS OIL SHORTAGE MORE THAN WHAT WE'RE CURRENTLY DOING. 
          UM, SO AS A RESULT, WHEN WE ASKED IN THE DALLAS FED ENERGY SURVEY, UH, REALLY ONLY, UH, OUR ENERGY PRODUCERS, UH, HERE IN TEXAS AND NEW MEXICO ONLY EXPECT A SMALL 
          [00:50:01]
INCREASE IN US OIL PRODUCTION THIS YEAR AS A RESULT OF THE IRAN WAR. 
          SO THEY'RE SAYING ABOUT 250,000, UH, BARRELS PER DAY, IN ADDITION, UM, TO THE 5.8, UH, THAT WE'RE PRODUCING NOW IN TEXAS AND 5.8 MILLION. 
          AND SO, UM, THAT'S A VERY SMALL INCREASE. 
          MIGHT BE A LITTLE BIT MORE, AND THEN THEY THINK IT'S, SO IT'LL BE A LITTLE BIT MORE THIS YEAR, A LITTLE BIT MORE NEXT YEAR, BUT WE'RE NOT REALLY EXPECTING BIG INCREASES IN OIL PRODUCTION AS A RESULT OF WHAT'S GOING ON NOW. 
          UM, AND THEN OF COURSE, I MENTIONED EARLIER ONE CONSTRAINT ON THESE OIL PRODUCERS IS THAT THIS NATURAL GAS THAT COMES OUT WITH THE OIL IS, UH, COSTLY TO GET RID OF BECAUSE THERE'S NO PIPELINE CAPACITY. 
          SO THIS WAHA PRICE OF GAS IS NEGATIVE, WHICH MEANS THAT OIL PRODUCERS HAVE TO PAY COMPANIES TO TAKE THAT GAS AWAY WHEN THEY PRODUCE OIL. 
          AND SO THAT'S ALSO A CONSTRAINT ON THEM. 
          ALSO, AN INCENTIVE TO GO AND PRODUCE AND BUILD MORE POWER PLANTS IN THE PERMIAN AND TAKE ADVANTAGE OF NEGATIVE GAS PRICES, RIGHT, TO PRODUCE CHEAP ELECTRICITY. 
          SO THAT'S KIND OF THE UPSIDE OF THIS, AND I THINK SOME OF THAT'S HAPPENING IN THE OIL FIELDS. 
          THERE'S CERTAINLY MORE POWER PLANT CONSTRUCTION, UM, IN WEST TEXAS. 
          UM, OKAY, SO MOVING RIGHT ALONG. 
          I WANTED TO TALK A LITTLE BIT ABOUT TRADE. 
          AS I MENTIONED TO YOU, UM, TWO REALLY IMPORTANT DEVELOPMENTS LAST YEAR, THE BIG INCREASE IN TARIFFS, UM, AND THEN THE FACT THAT TEXAS IS THE NUMBER ONE TRADING STATE IN THE NATION. 
          SO WE'RE A MUCH SMALLER ECONOMY THAN, FOR EXAMPLE, CALIFORNIA, BUT WE HAVE MANY, MANY MORE EXPORTS, UM, THAN CALIFORNIA. 
          AND SO WE ARE A VERY IMPORTANT EXPORTER AND IMPORTER IN THE, IN, IN THE NATION. 
          AND THIS IS WHAT HAPPENED TO TARIFF RATES, THE REALIZED TARIFF RATES, NOT LIKE THE HEADLINE TARIFF RATES, YOU MIGHT SEE THE NEWSPAPER, BUT STILL A REALLY SIGNIFICANT INCREASE LAST YEAR. 
          SO THIS IS THE TAX ON IMPORTS, UM, AND IT WENT FROM ABOUT AN AVERAGE OF ABOUT 2%, UM, TO OVER 10% LAST YEAR. 
          AND THEN OF COURSE, INTERESTINGLY WITH THE A EPA RULING HERE IN FEBRUARY, UH, WHEN SOME OF THOSE TARIFFS WERE RULED, UH, YOU KNOW, UNCONSTITUTIONAL, UM, THEY WENT AWAY. 
          AND SO YOU CAN SEE THAT THE TARIFF RATE HAS DROPPED, UM, SIGNIFICANTLY SINCE ITS PEAK. 
          BUT IN THE MEANTIME, UH, YOU KNOW, IF YOU TAX SOMETHING, YOU HAVE LESS OF IT. 
          SO WE DID SEE A DECLINE IN IMPORTS LAST YEAR OF ABOUT FIVE AND A HALF PERCENT. 
          AND THAT'S KIND OF THE FIRST BAR HERE. 
          THE SECOND BAR I'M TRYING TO SHOW YOU, THIS IS ACTUALLY WORKED BY MY COLLEAGUE KAY MUI. 
          AND SO THIS IS FOR THE US HE'S SHOWING YOU A DECLINE IN IMPORTS OF 5.5%. 
          LAST YEAR IN CANADA, A DECLINE OF 13.5%, CHINA DECLINE OF 42%. 
          UM, MEXICO IMPORTS ACTUALLY WENT UP SLIGHTLY FROM MEXICO, AND THAT'S MOSTLY BECAUSE IN THE LAST BAR WE ARE BUYING, UM, A LOT OF COMPUTER AND ELECTRONIC PRODUCTS FROM MEXICO. 
          THEY MAKE STUFF THAT GOES INTO THE DATA CENTERS. 
          WE'RE BACK TO DATA CENTERS, UH, CAN'T GET AWAY FROM IT. 
          SO, UM, THE AI BOOM, UH, IS FUELING A LOT OF IMPORTS, ESPECIALLY IN THESE COMPUTER AND ELECTRONIC EQUIPMENT. 
          SO THAT'S, AND YOU CAN SEE IT HERE AGAIN. 
          SO IN TERMS OF THE OUTLOOK, UM, THIS IS KIND OF WHAT WE'RE CONCERNED WITH GOING FORWARD. 
          SO THIS IS INFLATION. 
          THIS IS CPI INFLATION, WHICH IS THE ONLY ONLY MEASURE WE HAVE FOR TEXAS. 
          I'M SHOWING YOU TEXAS IN BLUE AND, UM, US CPI INFLATION IN RED. 
          AND YOU CAN, I'M SHOWING YOU BOTH THE HEADLINE MEASURE AND THE SOLID LINE AND THE CORE MEASURE, WHICH STRIPS OUT FOOD AND ENERGY. 
          THAT'S THE DASH LINE. 
          AND SO YOU CAN JUST SEE HOW SHARPLY THESE INCREASED, UH, WITH THE, UH, START OF THE WAR IN IRAN. 
          UM, SO MUCH OF THIS IS, UH, OIL, OIL PRICES OF COURSE. 
          SO THAT REALLY FOR THE CONSUMER, IT'S GASOLINE PRICES. 
          UM, SO THAT INCREASES THE COST OF TRANSPORTATION SERVICES, WHICH MANY FIRMS ARE OBVIOUSLY USING TRANSPORTATION SERVICES. 
          UM, SO IT CAN TRICKLE THROUGH THE ECONOMY. 
          AND SO WE ARE SEEING SHARP INCREASES. 
          STILL INTERESTING THAT TEXAS HAS MUCH LOWER INFLATION STILL EVEN NOW, UM, THAN THE US. 
          UM, AND SO SOME OF THAT'S RELATED TO THE FACT THAT OUR HOUSE PRICES AND RENTS HAVE BEEN FALLING. 
          SO, YOU KNOW, THAT'S MIXED, MIXED NEWS. 
          UH, BUT, UM, SO HERE YOU CAN KIND OF SEE THAT OBVIOUSLY THIS HIGHER INFLATION IS GONNA MAKE IT HARDER FOR THE FED, UH, TO LOWER, YOU KNOW, INTEREST RATES, UM, BECAUSE OBVIOUSLY, UM, UH, THE INFLATION TARGET FOR THE FED IS 2%. 
          AND SO CURRENTLY THE US INFLATION RATES, WHETHER YOU LOOK AT THIS MEASURE OR OTHER MEASURES, WE'RE REALLY FAR FROM 2%. 
          UM, WHAT ARE TEXAS BUSINESSES SAYING ABOUT THEIR OUTLOOK? THEY'RE STILL IN POSITIVE TERRITORY ON THEIR OUTLOOKS, BUT THEY'RE LESS OPTIMISTIC THAN THEY WERE. 
          AND I THINK SOME OF THIS DOWNSHIFTING IN THESE LINES THAT I'M SHOWING YOU, WHICH IS FUTURE INVESTMENT, FUTURE CAPITAL EXPENDITURE, 
          [00:55:01]
FUTURE COMPANY OUTLOOK, AND FUTURE BUSINESS ACTIVITY, THOSE ARE ALL THINGS THAT WE ASK IN OUR BUSINESS OUTLOOK SURVEYS, UH, FOR OUR TEXAS COMPANIES, THEY'VE ALL COME DOWN SIGNIFICANTLY. 
          THEY CAME DOWN WITH THE, UM, START OF THE YEAR ONE WAR. 
          YOU CAN ALSO SEE REALLY HOW BULLISH, UH, COMPANIES WERE COMING INTO THIS YEAR. 
          WE REALLY HAD A VERY ROBUST OUTLOOK. 
          UM, AND SO WE STILL HAVE A POSITIVE OUTLOOK FOR THIS YEAR, BOTH IN TEXAS AND THE US, BUT, UM, IT'S NOT AS POSITIVE AS IT WAS. 
          UM, SO LET ME CONCLUDE AND I'M HAPPY TO TAKE YOUR QUESTIONS. 
          UM, SO THE, UH, TEXAS ECONOMY IS GROWING FASTER THIS YEAR, UH, AFTER WHAT WAS REALLY A WEEK 2025, ESPECIALLY AS IT CONCERNS JOB GROWTH. 
          UM, THE LABOR MARKET IS LOOKING, CONTINUES TO LOOK RESILIENT, UH, WITH HIGHER JOB GROWTH AND LOW END EMPLOYMENT. 
          OUR FORECAST FOR THIS YEAR IS CURRENTLY RUNNING PRETTY HIGH. 
          IT'S RUNNING AT 1.8% JOB GROWTH. 
          AND, UM, WE KEEP WORRYING THAT WE'RE NOT GONNA GET THERE BECAUSE WE KEEP LOOKING AT THE LABOR FORCE GROWTH. 
          AND AS I TOLD YOU, IT'S EITHER ZERO OR NEGATIVE DEPENDING ON WHICH MEASURE YOU'RE LOOKING AT. 
          AND THAT IS, AGAIN, RELATED TO THE, TO THE MIGRATION TO THE STATE AND THE IMMIGRATION INTO THE STATE. 
          SO THAT'S KIND OF OUR CONCERN. 
          UM, THE AI BOOM CONTINUES TO BOOST REALLY CONSTRUCTION ACTIVITY AND MANUFACTURING IN OUR STATE AND THE NATION. 
          UM, SO THE OUTLOOK, UH, FOR THE REST OF THE YEAR IS, AGAIN, CONTINUED GROWTH. 
          UM, THE RISKS, WE MENTIONED LABOR FORCE GROWTH, WE MENTIONED CONSUMERS, UM, THEY'RE NEGATIVELY AFFECTED BY THE HIGHER INFLATION. 
          RIGHT NOW IT LOOKS LIKE CONSUMPTION STILL IS PRETTY SOLID. 
          UM, BUT THEY MAY BE DIPPING INTO THE CREDIT CARDS , UH, TO KIND OF SUSTAIN SOME OF THAT, UH, SPENDING. 
          AND SO, YOU KNOW, WE REALLY HAVE TO WATCH THAT, UH, BECAUSE IF THE PURCHASING POWER IS REDUCED BY HIGHER PRICES, HOW WELL, UM, HOUSEHOLDS, UH, CONTEND, UM, YOU KNOW, WITH, WITH THE NEEDS, UH, THAT THEY HAVE IN TERMS OF PAYING FOR HOUSING AND FOOD AND SO FORTH. 
          UM, AT THE SAME TIME, WE'RE WATCHING PRESSURE ON THE SAFETY NET IN TEXAS AND REALLY, I GUESS, ACROSS THE NATION, BUT THERE'S BEEN CUTS, UH, TO, TO HIGHER EDUCATION CERTAINLY, UM, AND TO CERTAIN HEALTH PROGRAMS AND FOOD STAMP PROGRAMS, FOR EXAMPLE, THAT ARE ADVERSELY AFFECTING, UM, YOU KNOW, UM, SOME, SOME HOUSEHOLDS. 
          AND SO WE'RE WATCHING THAT. 
          UM, AND THEN THE OTHER THING THAT WE'RE WATCHING IS KIND OF MORE OF A LONG-TERM CONCERN. 
          UM, SO THE, OUR FREE TRADE AGREEMENT WITH MEXICO IS A BIG REASON THAT TEXAS, UM, YOU KNOW, IS, IS THE NUMBER ONE EXPORTER, UM, IN THE NATION. 
          AND SO THAT'S THE U-S-M-C-A AGREEMENT. 
          IT USED TO BE THE NAFTA AGREEMENT. 
          UH, NOW IT HAS A DIFFERENT NAME, BUT IT'S STILL A REALLY IMPORTANT TOOL WITH WHICH WE USE TO TRADE WITH, WITH MEXICO AND CANADA. 
          AND SO IT'S UP FOR REVIEW HERE, UM, IN JULY. 
          AND SO WE'RE HOPING, UM, YOU KNOW, FOR GOOD OUTCOME THAT THEY KEEP THE AGREEMENT IN PLACE, UH, WITH MAYBE SOME, SOME MINOR REVISIONS, BUT IT'S, IT'S IMPORTANT, UH, FOR TEXAS, UH, FOR, FOR OUR ECONOMY. 
          AND, UM, THAT, THAT'S ALL I HAD. 
          AND SO THANK YOU SO MUCH. 
          I WELCOME YOUR QUESTIONS. 
          UH, THANK YOU, PIA. 
          I PARTICULARLY LIKE THE TITLE OF SLIDE ON SLIDE THREE, IT TWIST AND TURNS OVERVIEW, AND THAT WAS . 
          GREAT. 
          ANY QUESTIONS FOR PIA? I'LL ASK A QUESTION. 
          OKAY, JULIE. 
          PIA, THANK YOU FOR THE PRESENTATION, UH, THE RESEARCH IN YOUR INTERPRETATION OF THE RESEARCH. 
          MY QUESTIONS ABOUT THE TEXAS ECONOMY GROWTH, YOU MENTIONED LABOR IS THE NUMBER ONE CONSTRAINT ON THERE RIGHT NOW. 
          IF THERE WAS SUFFICIENT LABOR, WHAT, WHAT WOULD BE NEXT IN TERMS OF A CONSTRAINT? AND IS LACK OF INFRASTRUCTURE ON THAT SHORT LIST? UM, YOU KNOW, SPECIFICALLY ROADS, WATER, ELECTRICITY? YEAH, SO, SO THAT'S A GOOD QUESTION. 
          UM, I'M NOT SURE I HAVE AN ANSWER. 
          SO GENERALLY, THE WAY WE SEE TEXAS HAS BEEN REALLY PRO-GROWTH, AND THAT INCLUDES INFRASTRUCTURE. 
          SO WHETHER IT'S ROADS, OKAY, WE MAY BE BUILDING TOLL ROADS. 
          I KNOW PEOPLE DON'T LIKE TOLL ROADS, BUT YOU KNOW, IT MAKES, IT MEANS THERE'S A ROAD THERE. 
          SO WE'VE BEEN, WE'VE BEEN REALLY AGGRESSIVE IN BUILDING INFRASTRUCTURE BUILDING HOMES, UM, AND, UH, YOU KNOW, UH, WE'RE, WE'RE AGGRESSIVE ABOUT EXPANDING OUR, OUR OUR AND, AND ENSURING THE RELIABILITY OF OUR, YOU KNOW, OBVIOUSLY OUR GRID. 
          AND SO I THINK GENERALLY, ALTHOUGH I'M, I'M SURE THERE'S MEASURES OF INFRASTRUCTURE THAT WOULD SHOW MAYBE THE QUALITY OF INFRASTRUCTURE IS NOT WHAT IT SHOULD BE, BUT GENERALLY WE THINK THAT THE STATE HAS BEEN GOOD IN KEEPING UP WITH GROWTH. 
          UM, AND CERTAINLY LOOK AT THE PORTS AND WHAT WE'RE BUILDING IN TERMS OF EXPORT INFRASTRUCTURE, LNG, UM, EXPORTS, WHICH HAS BEEN JUST BOOMING. 
          UM, SO I HAVE TO SAY WE'VE BEEN GOOD ON GROWTH AND I'M, I, I HATE TO 
          [01:00:01]
THINK THAT I'M MISSING SOMETHING, BUT THAT'S KIND OF MY TALKING POINT ON INFRASTRUCTURE FOR TEXAS IS WHERE WE'RE REALLY PRO-GROWTH STRAIGHT FOR. 
          UM, AND, AND SO THAT'S AN AREA WHERE, COMPARED TO OTHER STATES, WE TEND TO DO WELL. 
          OH, WATER . 
          OKAY, I KNEW I WAS FORGETTING SOMETHING. 
          OKAY, SO WATER, THAT MAY BE SOMETHING WHERE WE COULD DO MORE. 
          UM, BECAUSE, UM, AND THAT'S REALLY TRICKY ON, UH, WATER INFRASTRUCTURE BECAUSE THAT GETS VERY, UM, YOU KNOW, THAT'S BECAUSE IF YOU, YOU KNOW, IF YOU, IF YOU NEED MORE WATER OVER HERE, YOU'RE TAKING IT FROM SOMEWHERE ELSE, SOMEONE ELSE OVER HERE, AND THAT CAN GET REALLY CONTENTIOUS AND VERY POLITICAL AND DIVISIVE. 
          SO I THINK THAT'S ONE AREA ON WATER WHERE WE COULD REALLY DO BETTER. 
          BUT IT'S HARD. 
          IT'S HARD WHEN YOU LOOK AT THE WATER SUPPLY AND WATER DEMAND, YOU KNOW, THE BIGGEST USERS OF WATER IN THE STATE ARE ACTUALLY FARMERS AND RANCHERS, SO THEY USE OVER 50% OF, OF TEXAS WATER. 
          UM, BUT SO THERE'S LIKE, YEAH, WE HAVE WATER, BUT YOU'RE GONNA , YOU KNOW, GOOD LUCK  TAKING THAT FROM THE PEOPLE THAT ARE USING IT AND GIVING IT TO SOMEONE ELSE AND SAYING THAT, YOU KNOW, THEY'RE, THEY SHOULD HAVE IT. 
          SO, UM, WE'RE WORRIED, LIKE FOR IN CORPUS CHRISTI, WE HAVE, UM, DEFINITELY VERY SEVERE WATER SHORTAGES, A LOT OF INDUSTRY, UM, THAT'S AN AREA WHERE THEY'RE, THEY WENT THROUGH A BIG BOOM, UH, LOTS OF INDUSTRY MOVED IN, THEY HAD WATER REQUIREMENTS. 
          UM, THEY WERE PROMISED A LOT OF WATER, AND THEN WE DIDN'T FOLLOW UP ON THE SUPPLY SIDE. 
          SO THAT'S DEFINITELY, I'M GLAD I REMEMBERED THAT. 
          THANKS FOR THE QUESTION, JILL. 
          CHAIR GLEASON, THANK YOU FOR THIS PRESENTATION. 
          I, I THINK THIS IS REALLY INSTRUCTIVE AS WE THINK ABOUT DATA CENTER AND DEVELOPMENT IN, IN THE STATE. 
          SO ON SLIDE 19, YOU TALK ABOUT YOUR PROJECTION THAT BETWEEN 2026 AND 2028, A 10% INCREASE IN WHOLESALE PRICES BASED ON DATA CENTER DEVELOPMENT. 
          YOU ALSO SHOWED ON A PREVIOUS SLIDE THE DIVERGENCE BETWEEN STATE GDP AND UM, NATIONAL GDP OF ABOUT 15% IN 2025. 
          DO YOU ASSUME THAT ACCOMPANYING THOSE ELECTRIC PRICE INCREASES FROM 26 TO 28 WILL BE A FURTHER DIVERGENCE IN STATE GDP AND NATIONAL GDP BECAUSE OF DATA CENTER DEVELOPMENT IN THIS STATE, MEANING WE'RE GONNA SEE ELECTRICITY PRICES GROW UP, BUT ARE WE ALSO GONNA SEE IN ACCOMPANYING INCREASE IN STATE GDP BECAUSE OF ALL THAT DEVELOPMENT OVER THOSE YEARS? YES, ABSOLUTELY. 
          I MEAN, IT'S, IT'S, IT'S BILLIONS, TENS OF BILLIONS OF INVESTMENT IN OUR STATE. 
          UM, SO, UM, THAT'S DEFINITELY GONNA INCREASE. 
          UM, YOU KNOW, AT THE VALUE OF OUTPUT IT HAS, UH, RELATIVELY SMALL EFFECTS ON EMPLOYMENT. 
          SO I THINK THE BROOKINGS INSTITUTE PUBLISHED A PAPER ON THE EMPLOYMENT EFFECTS OF, OF DATA CENTERS, AND I THINK THAT'S ONLY ONE, ONE TO TWO JOBS PER MILLION DOLLARS OF INVESTMENT . 
          SO IT'S NOT LIKE BUILDING A WALMART, YOU KNOW, WHICH WOULD CREATE, YOU KNOW, HUNDREDS OF JOBS. 
          UH, BUT, UH, BUT IT, SO IT HAS VERY SMALL EMPLOYMENT EFFECTS, BUT OF COURSE IT HAS BIGGER GDP EFFECTS. 
          UM, IT HAS, UM, YEAH, IT'S GONNA INCREASE, UH, OBVIOUSLY ELECTRICITY PRICES, BUT IT ALSO INCREASES THE BUILD OUT AS, OR CAUGHT AS EXPERIENCING, RIGHT. 
          UM, AND, AND, AND PUC, THE BUILD OUT OF THE INFRASTRUCTURE FOR, SO, YOU KNOW, IT INCREASED DEMAND FOR ELECTRICITY, INCREASED SUPPLY OF ELECTRICITY. 
          UM, SO, UM, I THINK, YEAH, THE, YOU KNOW, SOME OF THE CRITICISMS ARE, ARE VALID, UM, FOR THE DATA CENTER, BUT, BUT AT THE SAME TIME IT'S CONTRIBUTING TO GROWTH. 
          ABSOLUTELY. 
          WHAT, SO THAT'S AN INTERESTING POINT. 
          WHEN YOU TALK ABOUT EMPLOYMENT, SO ONE TO TWO JOBS PER MILLION DOLLARS OF SPEND, IS THAT PERMANENT JOBS OR TEMPORARY JOBS OR ALL JOBS? I THINK IT'S PERMANENT JOBS. 
          YEAH. 
          SO THIS IS NOT OUR PAPER. 
          THIS IS ACTUALLY THIS BROOKINGS PAPER, UM, THAT JUST WAS PUBLISHED. 
          UM, AND I THINK THAT'S WHAT THEY CONCLUDED THAT IS PERMANENT JOBS. 
          SOME OF THEM I THINK, UH, ARE IN THE INFORMATION SECTOR. 
          SO IT DOES CREATE SOME HIGH SKILLED, HIGHLY PAID JOBS, ESPECIALLY AROUND, UM, YOU KNOW, UM, UM, HIGH TECH. 
          SO, UH, IT'S NOT JUST CONSTRUCTION JOBS. 
          IT DOES CREATE SOME PERMANENT JOBS IN THE INFORMATION SECTOR. 
          YEAH, AND I GUESS THE ONLY THING I WOULD SAY TO THAT IS, YOU KNOW, THE DEFINITION OF A PERMANENT JOB, A LOT OF THESE CAMPUSES ARE GONNA BE BUILT OUT FOR FIVE, 10 YEARS AND MAKE LONG-TERM CONSTRUCTION JOBS, MANY OF WHICH ARE REALLY HIGH PAYING ACTUALLY. 
          AND SO I THINK LIKE MOST THINGS, HOW YOU DEFINE THAT TERM IS REALLY IMPORTANT BECAUSE I THINK OVER THE LONG RUN FOR THE NEXT DECADE, THIS REALLY WILL, YOU KNOW, END UP CREATING A LOT OF WHAT I WOULD CONSIDER PERMANENT CONSTRUCTION JOBS. 
          YEAH. 
          I DIDN'T SEE THE BREAKOUT, UM, FOR CONSTRUCTION. 
          UM, BUT CERTAINLY AS LONG AS THEY'RE BEING BUILT, THEY'RE CREATING CONSTRUCTION 
          [01:05:01]
JOBS, BUT AFTER THEY'RE NO LONGER BEING BUILT, THEN THAT CONSTRUCTION EMPLOYMENT EFFECT SHOULD TAPER OFF. 
          YEAH, I THINK MOST, MOST WORKERS WOULD CONSIDER, YOU KNOW, A 10 YEAR, YOU KNOW, BUILD OUT AND HAVING THAT JOB PRETTY, PRETTY PERMANENT. 
          SO. 
          YEAH. 
          YEAH. 
          I DON'T, UM, YEAH, I, I, YEAH, PERMANENT VERSUS TEMPORARY. 
          YEAH. 
          WE THINK OF BEING IN MONTHS VERSUS YEARS. 
          I AGREE. 
          ANY OTHER QUESTIONS FOR PIA? I HAVE A COUPLE. 
          I JUST WANTED TO, UH, COUPLE OF QUESTIONS ON SLIDE 18. 
          UM, YOU SHOW THE INFLATION ADJUSTED, UH, CHANGE IN PRICES FOR ELECTRICITY. 
          IT JUST LOOKS TO ME LIKE EVEN AFTER A 10% INCREASE WERE THAT TO ACTUALLY HAPPEN, TEXAS IS STILL BELOW WHERE IT WOULD BE IN 2015 ON AN INFLATION ADJUSTED BASIS. 
          IS THAT A FAIR ASSUMPTION? UM, THESE ARE, UM, SO THE 10% IS WHOLESALE AND THIS IS RETAIL. 
          OH, OKAY. 
          YEAH. 
          SO I DON'T KNOW WHAT'S GONNA HAPPEN TO RETAIL 'CAUSE WELL, SIR, AS YOU KNOW, MORE BETTER THAN I DO IS THAT WELL, BY THE TIME YOU GET FROM THE WHOLESALE TO THE RETAIL, YOU GOTTA ADD IN ALL THE TRANSMISSION DISTRIBUTION, ALL THE FIXED COSTS. 
          SO, UM, YEAH. 
          SO I CAN'T SAY FOR SURE. 
          OKAY. 
          BUT, UM, YEAH. 
          AND THE SECOND THING BACK TO THE, TO THE BROOKINGS DATA CENTER STUDY FOR A MINUTE, DID, DO YOU KNOW IF THEY, I HAVEN'T SEEN IT. 
          DO YOU KNOW IF THEY ANALYZE THE FOLLOW ON VIRTUOUS CYCLE IMPACT OF THE INCREASES IN LOCAL PROPERTY TAX BASES THAT GET INVESTED IN EDUCATION? OH, GOOD QUESTION. 
          AND LOCAL INFRASTRUCTURE AND THINGS LIKE THAT. 
          YEAH, THAT IS ANOTHER BENEFIT IS CERTAINLY THE TAX, UM, REVENUE, THE ADDITIONAL TAX REVENUE. 
          UM, SO THAT'S ANOTHER BENEFIT, BUT I DON'T REMEMBER IF THEY LOOKED SPECIFICALLY AT THAT. 
          UM, BUT YEAH, THAT'S, I'M GLAD YOU MENTIONED IT BECAUSE I DIDN'T, I DIDN'T MENTION IT, BUT THAT IS, THAT'S ANOTHER BENEFIT. 
          OKAY. 
          I DON'T SEE ANYBODY ELSE THAT WANTS TO ASK ANY QUESTIONS. 
          PIA, THANKS FOR COMING BACK AND WE'LL LOOK FORWARD TO BRINGING YOU BACK THIS TIME. 
          SURE. 
          UH, THANK YOU SIR. 
          THANK YOU SO MUCH. 
          ALRIGHT, WE'RE GONNA MOVE 
          [13. Consent Agenda]
ON TO, UH, MORE EXCITING STUFF. 
          AND NOW THAT WE'VE TALKED ABOUT ECONOMICS, UM, AGENDA ITEM 13 IS A CONSENT AGENDA. 
          UH, IT INCLUDES, UH, AGENDA ITEM 13.1 UNOPPOSED REVISION REQUEST, WHICH HAVE BEEN RECOMMENDED BY TAC FOR APPROVAL. 
          UH, WE MADE A DECISION TO EXCLUDE ONE, EXCUSE ME, TWO OF THE UNANIMOUSLY APPROVED ITEMS FROM TAC SO THAT WE, BECAUSE WE BELIEVE THEY WEREN'T FURTHER, UH, DISCUSSION. 
          AND THAT HAS TO DO WITH PGA 1 45 AND, AND NPRR, UH, 1325. 
          SO WE'LL HAVE THOSE DISCUSSIONS WHEN WE GET INTO AGENDA ITEM 15.1. 
          UH, SO WE'RE GONNA TAKE UP THE, UH, BATCH ZERO, UH, UH, EXCUSE ME. 
          UM, SO CHAD, DO YOU, UH, CAN YOU WALK US THROUGH THE BUDGET IMPACTS OF THE UNOPPOSED, UH, REVISION REQUEST EXCEPT FOR, UH, 1325 AND 1 45? YES, CHAIR. 
          UH, THERE ARE 16 REVISION REQUESTS ON THE CONSENT AGENDA. 
          NONE OF THEM HAVE AN ERCOT FULL-TIME EQUIVALENT IMPACT. 
          TWO OF THEM NPR 1315 AND PICKER 1 43 HAVE AN ERCOT BUDGET IMPACT OF LESS THAN 10,000. 
          AND THOSE REVISION REQUESTS CAN BE ABSORBED BY OUR OPERATIONS AND MAINTENANCE BUDGET. 
          I WOULD CALL OUT NPR 1264, WHICH IS THE CREATION OF THE NEW ENERGY ATTRIBUTE CERTIFICATION PROGRAM, WHICH HAS AN ERCOT BUDGET IMPACT BETWEEN 150,200 50,000 AND A PROJECT DURATION OF FOUR TO SIX MONTHS TO IMPLEMENT PHASE TWO. 
          SO THE BOARD MAY RECALL THAT THIS TOPIC WAS DISCUSSED BACK IN JUNE OF 2025, AND WE MOVE FORWARD THROUGH THE STAKEHOLDER PROCESS. 
          THIS WILL ALLOW US TO MOVE FORWARD WITH A THIRD PARTY ADMINISTRATOR TO ADMINISTER THIS PROGRAM. 
          UH, ERCOT WILL GO OUT FOR AN RFP AFTER THE PEC APPROVES IT AND THEIR JULY TIMEFRAME. 
          AND THEN ULTIMATELY, WE'LL PRESENT QUALIFIED ADMINISTRATORS THROUGH A SERIES OF WORKSHOPS AND ULTIMATELY GET TAC RECOMMENDATION THAT'LL END UP COMING TO THE BOARD FOR BOARD APPROVAL. 
          AS FAR AS THE THIRD PARTY ADMINISTRATOR, I THINK WITH THE TIMELINE THAT WE'RE ON, UH, THE EARLIEST YOU WOULD SEE THAT WOULD BE AT THE DECEMBER BOARD MEETING WHERE YOU'RE MAKING A DECISION ON THE THIRD PARTY ADMINISTRATOR UNDER THIS NPR 1264. 
          AND AS YOU INDICATED, PICKER 1 45 HAS A SEPARATE IMPACT ANALYSIS THAT WE CAN TALK ABOUT ONCE WE GET TO, TO THAT ITEM. 
          SO THAT, I'M HAPPY TO ANSWER ANY QUESTIONS. 
          OKAY. 
          THANKS, CHAD. 
          ANY QUESTIONS ON THE UNPOSED UH, REVISION REQUEST? OKAY, IF NOT, I'LL ENTERTAIN A MOTION TO APPROVE, UH, THOSE ITEMS TO MOVED. 
          OKAY. 
          THANK YOU, CHRIS. 
          THANKS, BILL FOR THE SECOND. 
          ALL IN FAVOR, A AYE. 
          ANY OPPOSED, ANY ABSTENTIONS? OKAY. 
          THE UNOPPOSED REVISION REQUEST HAVE BEEN APPROVED. 
          AGAIN, WE'LL TALK ABOUT, UH, FIGURE 1 45 AT NPR 1325 IN A FEW MINUTES. 
          NEXT IS AGENDA ITEM 14, THE 2026 SUMMER OUTLOOK, WHICH INCLUDES TWO SUB ITEMS. 
          [14.1 2026 Summer Weather and Operations Outlook]
THE FIRST IS AGENDA ITEM 14.1, THE 2026 SUMMER WEATHER AND OPERATIONS OUTLOOK PRESENTED 
          [01:10:01]
BY DAN WOODFIN DAM. 
          GOOD MORNING. 
          GOT FOUR TOPICS TO SHARE WITH YOU. 
          WEATHER LOAD, NEW TOOLS AND TRANSMISSION THAT ARE ALL THINGS THAT WE WILL ARE LOOKING AT FOR THIS SUMMER. 
          UM, FIRST WEATHER WITH THE, THE UPCOMING, UM, KIND OF THE STRENGTHENING EL KIND OF REALLY SIGNIFICANT EL NINO. 
          UM, THE WEATHER PROFILE THAT WE LIKELY TO SEE OVER THE NEXT FEW MONTHS IS A LITTLE MORE EVEN UNCERTAIN THAN USUAL. 
          UM, OUR METEOROLOGISTS BELIEVE WE'RE, WE'RE PROBABLY LOOKING AT, UH, CLOSE TO NORMAL TEMPERATURES AND, UM, AND RAINFALL DURING THIS PERIOD, NORMAL BEING OVER THE LAST 15 YEARS. 
          SO IT WON'T BE EXTREME LIKE, UH, 2023, ALTHOUGH THERE IS SOME POTENTIAL FOR THAT. 
          BUT IF YOU LOOK AT THE LAST 15 YEARS, THOSE YEARS ARE SIGNIFICANTLY HOTTER. 
          SO THE NORMAL FOR THE LAST 15 YEARS SIGNIFICANTLY HOTTER THAN SAY THE LAST 130 YEARS. 
          SO THIS WOULD BE A HOT YEAR IF YOU LOOKED OVER THE, SINCE 19 18 95. 
          UM, THE METEOROLOGIST ARE SAYING IT COULD BE AS AS HOT AS 2023, BUT THAT WILL DEPEND HOW LONG THIS KIND OF RAINY PERIOD THAT WE'RE SEEING NOW. 
          AND LOOKS LIKE IT'S GONNA BE AGAIN THIS WEEK, UH, HOW LONG THAT LASTS. 
          IF IT'LL LAST, UH, YOU KNOW, MORE INTO JUNE, THEN WE'RE LESS LIKELY TO SEE THE LONGER IT LASTS, THE LESS LIKELY WE'LL SEE A A HOT PERIOD. 
          AND THE GOOD NEWS IS THAT, UH, WITH THIS STRENGTHENING EL NINO, I'M SURE MOST OF YOU HAVE SEEN THIS ON THE NEWS, THAT THIS LIKELIHOOD IS THAT WE'LL HAVE FEWER HURRICANES IN THE ATLANTIC BASIN THIS YEAR. 
          ALTHOUGH, AS WE ALL RECOGNIZE, IT ONLY TAKES ONE. 
          AND SOMETIMES THOSE THINGS SPIN UP DOWN IN THE GULF RATHER THAN COMING ACROSS THE ATLANTIC. 
          SO THERE, THERE'S STILL SOME POTENTIAL AND WE'VE GOTTA BE PREPARED FOR THAT. 
          WE'VE DONE OUR, OUR USUAL TRAINING, UH, FOR, FOR HURRICANE PREPAREDNESS. 
          SO IN TERMS OF LOAD, WE'VE TALKED A LOT ABOUT LOAD FORECAST, KIND OF LOOKING AT LONG TERM, BUT LOOKING AT KIND OF WHAT ARE WE EXPECTING FOR THIS SUMMER? WE'VE HAD, UH, LAST YEAR WAS A FAIRLY MILD YEAR. 
          WE'VE HAD SEVERAL YEARS IN A ROW WHERE WE'VE BEEN IN THE 84, 85, UH, GIGAWATT RANGE DEPENDING ON WHAT THE, THE TEMPERATURES ARE. 
          UH, WE'VE SEEN SOME CRYPTO GROWTH. 
          WE'VE ALSO SEEN LOAD, LARGE LOAD GROWTH THAT WE'VE BEEN TALKING A LOT. 
          SOME OF THAT'S ALREADY STARTING TO, TO PLAY OUT. 
          AND SO WE'RE LOOKING AT THIS SUMMER BEING WITHOUT DEMAND RESPONSE AT, AT A LITTLE OVER 92 GIGAWATTS. 
          NOW WE WOULD EXPECT TO SEE, UH, A LITTLE OVER 4,000 MEGAWATTS OF DEMAND RESPONSE WE TYPICALLY HAVE WITH THE CRYPTOS TURNING OFF AND OTHER THINGS. 
          AND SO WE'D GET DOWN TO, UH, METERED DEMAND OF AROUND 88, BUT THAT WOULD STILL BE A NEW ALL TIME PEAK DEMAND FOR THE SUMMER. 
          FROM A TRANSMISSION PERSPECTIVE, WE'RE SHOWING THIS A LITTLE DIFFERENT. 
          WE USUALLY DO, I USUALLY POINT OUT SPECIFIC HOT SPOTS. 
          WE'RE SHOWING IT MORE GRAPHICALLY THIS YEAR. 
          UM, EVERY YEAR WE DO A OR STUDY OF KIND OF WHERE DO WE NEED CONSTRAINT MANAGEMENT PLANS? WHERE, WHERE DO WE SEE PROBLEMS THAT WE COULD DON'T, IT DOESN'T APPEAR THAT WE COULD RESOLVE WITH RE-DISPATCH GIVEN THE LOAD GROWTH, GIVEN THE AMOUNT OF TRANSMISSION ON THE SYSTEM. 
          AND SO WE, WE LOOK AT THAT EVERY SUMMER. 
          WE DEVELOP PLANS FOR HOW, HOW ARE WE GONNA DEAL WITH THESE? SO THIS GRAPHICALLY USES THOSE CONGESTION MANAGEMENT PLANS THAT WE'VE HAD TO DEVELOP AND THE NUMBER OF 'EM TO INDICATE WHERE WE'RE LIKELY TO SEE PROBLEMS, UH, THIS SUMMER IN TERMS OF TRANSMISSION AND HOW YOU'LL SEE THAT IN THE GRAY BARS. 
          THOSE ARE THE NUMBERS OF PLANS BY AREA THAT WE HAD LAST YEAR. 
          THEY'RE A LITTLE HIGHER IN MOST PLACES THIS YEAR. 
          AS YOU CAN SEE, FAR WEST HAS BY FAR THE, THE MOST OF THESE, WHICH IS WHAT YOU'D EXPECT. 
          'CAUSE WE'RE SEEING A LOT OF, A LOT OF LOAD GROWTH IN THAT AREA AND THERE'S LOTS OF TRANSMISSION COMING, BUT, BUT IT, IT'S NOT ALL THERE YET. 
          AND THEN, UM, UM, SOME IN WEST AND ALSO SOME IN NORTH CENTRAL, SOUTH CENTRAL. 
          SO THAT, THAT KIND OF GIVES YOU A GRAPHIC OVERVIEW OF WHERE WE, WHERE WE MIGHT SEE TRANSMISSION ISSUES THIS SUMMER. 
          FROM AN OPERATIONAL PERSPECTIVE, WE'VE, WE'VE GOT A COUPLE OF DIFFERENT KINDS OF NEW TOOLS THAT WE'VE DEVELOPED AND WE'D LIKE TO SHARE THIS, THIS, UH, EVERY YEAR AS WHAT, WHAT ARE, WHAT ARE KIND OF SOME OF THE NEW TOOLS THAT WE'RE GONNA BE USING. 
          ONE IS, UH, SOMETHING THAT YOU APPROVED AT THE LAST MEETING, WHICH IS WE, MOST OF OUR ANCILLARY SERVICES GET RELEASED BY RTC PLUS B BASED ON ON PRICE CURVES. 
          SO THAT'S HOW A SC WILL KIND OF AUTOMATICALLY RELEASE THOSE. 
          BUT OUR OFFLINE NONS SPIN, THE OPERATORS STILL HAVE TO MAKE A DECISION TO DEPLOY THAT. 
          WE'VE HAD A SERIES OF TOOLS IN PLACE FOR HOW TO DO THAT. 
          AS THE SYSTEM CONTINUES TO EVOLVE, WE'VE, WE'VE EVOLVED THAT, UH, UH, WHAT THOSE TOOLS LOOK LIKE. 
          AND SO THIS, UH, O-B-D-R-R THAT YOU PASSED LAST TIME AND 
          [01:15:01]
THE PC IS NOW APPROVED, WE'LL BE USING THAT THIS SUMMER. 
          IT ALLOWS US TO TAKE INTO ACCOUNT STATE OF CHARGE OF THE BATTERIES WHEN DETERMINING WHEN TO, UH, RELEASE THAT NONS SPIN. 
          AND THE SECOND THING IS SOMETHING THAT WE TALKED ALSO ABOUT YESTERDAY, THE LARGE LOAD CURTAILMENT MANAGER, WHICH IS, UH, THIS TOOL THAT WILL ULTIMATELY ALLOW US TO IMPLEMENT, UH, THE CURTAILMENT OF THE LARGE LOAD IN AN ORGANIZED WAY. 
          WE TALKED ABOUT THIS IN THE TNS SECTION YESTERDAY, BUT SPECIFICALLY WHAT WILL BE IN PLACE FOR THIS SUMMER IS THE ABILITY TO USE IT TO FORECAST AND THEN DEPLOY THE, UH, NET METERED, UH, THAT PABLO TALKED ABOUT EARLIER, THE NET METERED SITES WHERE YOU'VE GOT A NEW DATA CENTER THAT'S CO-LOCATED WITH AN EXISTING PRIOR TO, UH, SEPTEMBER OF LAST YEAR, UH, UH, GENERATOR. 
          AND THOSE ARE BEING APPROVED BY THE COMMISSION. 
          SO WE NEED TO BE, HAVE THAT IN PLACE FOR THIS SUMMER. 
          AND SO IT SHOULD BE THERE SOON. 
          AND THEN SPECIFICALLY, UH, ONE OTHER TRANSMISSION THING I WANNA TALK ABOUT. 
          'CAUSE WE'VE TALKED ABOUT THIS LAST TIME. 
          UM, THE, UH, FAR WEST, UH, ISSUE WHERE WE'VE GOT A LOT OF LOAD GROWTH, WE'VE STARTED TO SEE SOME TRANSMISSION LIMITATIONS THERE. 
          UM, WHAT WE'VE, WE HAD WERE, UH, CONSIDERING THIS BASED ON THE FORECAST OF WHERE THE, UH, LOAD GROWTH WAS EXPECTED TO BE BASED ON SURVEYS THAT WE'D DONE PREVIOUSLY, UH, FROM THE TRANSMISSION OWNERS IN THE AREA. 
          WHAT WE'RE SEEING IS IT MAY NOT BE THE, THAT LOAD GROWTH MAY NOT BE TRACKING AS SIGNIFICANTLY, UH, GROW GROWING AS FAST AS WHAT WE ARE ORIGINALLY THINKING. 
          LAST TIME WE TALKED ABOUT THIS, UM, YOU CAN SEE THAT WE'RE STILL THROUGH, THROUGH THE PERIOD, WE'VE BASICALLY BEEN UNDER THAT KIND OF NO OUTAGE TYPE LIMIT SHOWN IN THE CURRENT LINE HERE, BUT THERE'S STILL SIGNIFICANT AMOUNT OF GROWTH THAT COULD HAPPEN ONCE THOSE PLACES START TO, UH, TO PUT THE, THE, THE LOAD IN PLACE. 
          UM, AND SO WHAT WE'RE, WE'RE DOING IS, IS UPDATING, WE'RE GONNA BE UPDATING THE NUMBERS. 
          WE'VE, WE'VE ISSUED THIS RFI OUT TO THE, THE TRANSMISSION PROVIDERS TO GET UPDATED INFORMATION. 
          THAT'S TO SEE, OKAY, ARE WE EXPECTING THIS TO CONTINUE TO, TO NOT GROW AS FAST OR IS IT COMING AND IT'S JUST NOT THERE YET. 
          IT'S PROBABLY THE LATTER, BUT WE NEED A BETTER VIEW OF WHEN THAT'S EXPECTED. 
          AND SO THEY'RE SUPPOSED TO HAVE THIS DATA BACK TO US BY THE END OF THIS MONTH. 
          WE'LL BE ABLE TO SHARE THAT WITH YOU AT THE NEXT MEETING. 
          JUST WANTED TO GIVE YOU AN UPDATE ON THAT. 
          DAN. 
          DAN, JUST QUICK ON THE GRAPH, UHHUH  THERE, THERE'S A VERY LARGE LIFT IN THE CRYPTO NUMBER. 
          CAN YOU, CAN YOU GIVE US A LITTLE COLOR ON THAT? YEAH, SO, SO THE CRYPTO, THIS WAS BASED OFF OF KIND OF LAST YEAR'S LONG TERM LOAD FORECAST NUMBERS OR THE NUMBERS THAT WERE IN THERE. 
          AND, UH, IT WAS EXPECTED THAT THAT WAS GONNA HAVE RAMPED UP MORE BY NOW. 
          UM, AND SO WE'RE, THAT'S, YOU KNOW, IT COULD BE, THERE'S, THERE'S A LITTLE BIT OF HEISENBERG PROBABLY GOING ON HERE WHERE WE'VE TALKED A LOT ABOUT THIS AREA AND IT MAY BE THAT IT, UH, THAT PEOPLE RESPOND TO THE FACT THAT THE EXPECTATION IS THAT THERE'S GONNA BE MORE HIGHER PRICES AND, AND MORE CONSTRAINT INTO THAT AREA. 
          AND SO THAT LOAD MAY BE SLOWING DOWN UNTIL SOME OF THE TRANSMISSION GETS THERE. 
          YEAH. 
          HEY, SO ON THE CONGESTION MANAGEMENT PLAN, I MEAN, IT'S A SUBSTANTIVE INCREASE, RIGHT? SO KIND OF PUT THAT IN PERSPECTIVE FROM WHERE WE WERE THAT THE, THE AMOUNT OF LO LOCAL LOAD SHED THAT WE COULD BE THINKING ABOUT. 
          AND THEN JUST AS WE GO FORWARD, A LOT OF THESE TRANSMISSION PROJECTS ARE NOT GONNA BE COMPLETED FOR AN EXTENDED PERIOD OF TIME. 
          AND WHAT THAT MEANS AS WE GO FORWARD IN THE FUTURE. 
          YEAH, SO, UM, BASICALLY THESE, THE CONGEN, LEMME GO BACK TO THAT ONE. 
          UM, THE CONGESTION MANAGEMENT PLANS, WE, WE, WE DEVELOP THESE KIND OF A LOT OF TIMES ON THE FLY. 
          THESE ARE ONES THAT ARE DEVELOPED, UH, KIND OF LOOKING MORE SEASONAL STUDIES MM-HMM . 
          AND THEY ASSUME CERTAIN AMOUNT OF LOAD GROWTH AND SO FORTH. 
          UM, BUT WE DON'T ACTUALLY NEED TO IMPLEMENT THEM UNLESS THAT LOAD GROWTH ACTUALLY OCCURS. 
          AND WE ACTUALLY SEE THE OVERLOADS IN OUR CONTINGENCY ANALYSIS. 
          SO THIS IS MORE OF A BEING PREPARED, RIGHT? JUST IN CASE, UH, BASED ON THOSE PROJECTIONS. 
          UM, AS FAR AS PERSPECTIVE GOES, I, YOU KNOW, THE MOST OF THEM ARE LOCALIZED. 
          AND SO I WOULDN'T EXPECT, UH, AND, AND ALMOST BY DEFINITION, THESE ARE NOT THINGS THAT WE DO PRE-CON CONTINGENCY, IT'S ONLY IF A TRANSMISSION LINE ACTUALLY TRIPS, WHICH IS A PRETTY LOW, UH, LIKELIHOOD, UH, THAT WE WOULD ACTUALLY HAVE TO IMPLEMENT MOST OF THEM. 
          BUT YOU SEE THAT JUST GIVEN WHERE WE'RE AT. 
          I MEAN, IT DEPENDS ON LOAD GROWTH, THOSE LIKELY, YES, THAT PLANNING TO CONTINUE FAIRLY AGGRESSIVELY UNTIL WE CAN 
          [01:20:01]
ALLEVIATE SOME OF THOSE CONSTRAINTS. 
          I THINK THAT'S PROBABLY RIGHT AS YOU SEE THINGS LOCALLY GROWING MORE THAT MAY, UH, THAT WE MAY NEED MORE, UH, KIND OF THESE PLANS JUST TO MAKE SURE WE'VE GOT AN INSURANCE POLICY. 
          YES, THANK YOU. 
          OKAY. 
          OKAY. 
          ANY OTHER QUESTIONS FOR DAN? ALRIGHT, UH, THANKS DAN. 
          [14.2 2026 Summer Markets Outlook]
UH, NEXT IS AGENDA ITEM 14.2, THE 2026 SUMMER MARKETS OUTLOOK THAT'S GONNA BE PRESENTED BY KEITH COLLINS. 
          KEITH, WELL THERE IT IS. 
          THANK YOU. 
          UH, THAT'S DAN'S, NOW WE GO FORWARD. 
          YEAH. 
          14. 
          YEP, THAT'S IT. 
          ALRIGHT, PERFECT. 
          ALRIGHT, GOOD MORNING. 
          UM, I'M HERE TO PRESENT THE SUMMER MARKETS OUTLOOK AND, UH, I THINK WHAT'S WHAT'S INTERESTING HERE IS ULTIMATELY WHAT WE'RE GONNA SEE IN A SECOND HERE IS THAT, UH, FORWARD PRICES ARE TRENDING LOWER, BUT ONCE YOU FACTOR IN THE GAS PRICES, IT'S, IT'S GENERALLY PRETTY FLAT. 
          OKAY? SO STARTING WITH THE FORWARD POWER PRICES FOR SUMMER 2026, WHAT WE DO IS WE COMPARE THAT OVER THE LAST FEW YEARS AND ULTIMATELY THE LINE YOU SEE IN THE MIDDLE IS 2026 LOOKING OUT FOR, UH, ESSENTIALLY THROUGH THE SUMMER MONTHS. 
          AND WHAT WE, WHAT WE SEE HERE IS, IS AGAIN, IT LOOKS LIKE IT'S, IT'S TRENDING A BIT DOWN RELATIVE TO THE OTHER PRICES. 
          AND, AND WHILE THAT IS TRUE, WHAT WE HAVE TO DO IS THINK ABOUT WHAT'S, WHAT'S ALSO GOING ON IN THE GAS MARKET AT THE SAME TIME. 
          AND, AND SO WHAT WE HAVE HERE IS A HISTORIC VIEW OF WHAT GAS PRICES HAVE BEEN DOING, UH, ON A DAILY LEVEL OVER THE LAST SEVERAL YEARS. 
          AND WHAT WE SEE HERE IS THAT THE TREND IN 2026 IS, HAS GENERALLY BEEN A BIT DOWN, UH, RELATIVE TO, UH, 2025 IN PARTICULAR, AND, AND A BIT MORE COMPARABLE THAN WE SAW IN, UH, I BELIEVE CLOSER TO 2023. 
          UM, AND SO, UH, WHEN WE GO AHEAD AND, AND LOOK AT THE FORWARD GAS PRICES, AND THAT'S WHAT WE SEE REFLECTED HERE ON THE LEFT, UM, IS THAT THE, THE BLUE BARS ARE, ARE A LITTLE BIT DOWN, UH, RELATIVE TO WHAT WE SAW OVER, OVER LAST YEAR. 
          AND WHEN WE FACTOR IN THE DECLINE IN THE POWER PRICES AND THE DECLINE IN THE, THE GAS PRICES, UH, THE HEAT RATES, WHICH ARE, ARE SHOWN IN THE RIGHT HAND CHART ARE, UH, GENERALLY ABOUT THE SAME AS WHAT WE SAW IN 2025. 
          SO, SO EVEN THOUGH POWER PRICES ARE LOWER, GAS PRICES ARE LOWER, THE HEAT RATES ARE SUCH THAT THEY'RE GENERALLY FACTORING IN ABOUT THE SAME, WHICH REALLY MEANS THAT PRICES THIS YEAR ARE VERY SIMILAR TO LAST YEAR ON A HEAT RATE BA ON AN ADJUSTED, UH, GAS PRICE BASIS. 
          AND SO, UM, I I THINK THERE'S, THERE'S POTENTIALLY A FEW DIFFERENT REASONS FOR THAT. 
          OBVIOUSLY, EXPECTATIONS, AS DAN SORT OF SAID, UM, NORMAL OVER THE LAST 15, LAST 15 YEARS, BUT, BUT HOT, I THINK THAT'S GENERALLY, UH, NOT UNLIKE WHAT WE SAW LAST YEAR AS WELL. 
          SO SOME OF THOSE EXPECTATIONS ON WHETHER, UH, DEFINITELY FACTORING INTO WHAT WE'RE SEEING HERE, UH, WHEN WE LOOK AT FORWARD PRICE TRENDS OR LONG-TERM FORWARD PRICE TRENDS. 
          I THINK, YOU KNOW, THE CAUTION HERE IS THAT GENERALLY THIS IS NOT AS, AS LIQUID, BUT IT IS, IT IS THE BEST PRICE THAT WE DO HAVE. 
          AND, AND WHAT WE HAVE HERE IS, IS A VIEW OF WHAT THESE PRICES ARE FOR 26, 27, 28, 29 30, UM, AND WHAT THAT SNAPSHOT IN TIME A YEAR AGO, SIX MONTHS AGO, ET CETERA. 
          AND GENERALLY, UH, WHAT WE SEE THERE ARE, UH, UH, LOWER, UH, LOWER POWER PRICES AGAIN, THAT, THAT CAN BE A FUNCTION OF THE GAS PRICE AS WELL, UH, AND, AND WHAT THAT IS. 
          BUT, BUT I THINK IT'S JUST PRETTY CRITICAL TO NOTE THAT WHEN WE TALK ABOUT INCREASING LOADS, UH, AND INCREASING DEMAND ON THE SYSTEM, WHAT WE'RE NOT SEEING IS, UH, WE HAVEN'T SEEN THAT REFLECTED ANY, ANY, UH, FORWARD PRICING AT, AT THIS TIME IN TERMS OF, UH, WHAT THESE FORWARD PRICE TRENDS ARE SHOWING. 
          AND SO, UH, AGAIN, THERE, THERE COULD BE, UH, EXPECTATIONS ON WHAT THOSE LOADS WILL BE COMING, UH, OUT OF THE BATCH, UH, PROCESS. 
          UH, UH, COULD, COULD BE SOMETHING THAT COULD HELP, UH, PROVIDE MORE CLARITY AND UNCERTAINTY, UH, CLARITY AND CERTAINTY. 
          UH, BUT RIGHT NOW WE'RE IN A PERIOD OF UNCERTAINTY AND, AND I THINK THESE, THESE PRICES ARE EFFECTIVELY REFLECTING THAT. 
          UH, AND THEN THE FINAL CHART IS JUST ANOTHER, IS SORT OF A SEASONAL VIEW OF, OF THE CHART WE JUST SHOWED YOU. 
          UH, THE OTHER ONE'S AN ANNUAL VIEW. 
          OBVIOUSLY THE, THERE'S A SEASONAL VIEW GOING FORWARD. 
          [01:25:01]
UH, BUT I'LL PAUSE HERE AND SEE IF THERE ARE ANY, ANY QUESTIONS ON THE SUMMER, UH, FORWARD PRICE OUTLOOK. 
          ANY QUESTIONS? OKAY, THANKS KEITH. 
          ALRIGHT, THANK YOU. 
          ALRIGHT. 
          ALL RIGHT, NOW TIME FOR MORE FUN STUFF. 
          UH, I'D LIKE TO INVITE KAITLYN SMITH, CHAIR OF THE TECHNICAL ADVISORY COMMITTEE TO PRESENT AGENDA ITEM 15, THE TAC REPORT. 
          KAITLYN, PLEASE PROCEED WITH YOURT REPORT TO AGENDA ITEM 
          [Items 15.1.1.1 & 15.1.1.2]
15.1 0.1, WHICH IS NPR 1308. 
          IT'S A BOARD PRIORITY RELATED TO NOER 2 82, LARGE COMPUTATIONAL LOAD RIDE THROUGH REQUIREMENTS, AND ALSO AGENDA ITEM 15, NOER 2 82, LARGE COMPUTATIONAL LOAD RIDE THROUGH REQUIREMENTS. 
          AND WE'LL GET ON WITH THE OTHER ONES AFTER THAT. 
          OKAY. 
          I HAVE A VERY LONG REPORT, SO GET THE, GET THE HOOK OUT. 
          UM, I'M KAITLYN SMITH. 
          I'M CHAIR OF THE TECHNICAL ADVISORY COMMITTEE. 
          IN OUR APRIL AND MAY, UH, MONTHS, WE HAD THREE FULL DAYS, THREE FULL DAYS OF TAC MEETINGS. 
          WE HAD A FOURTH SCHEDULED. 
          SO, UH, WE, BUT WE DIDN'T NEED IT, SO CHAD GOT OFF THE HOOK FOR DINNER, BUT WE RECOMMENDED APPROVAL OF 23 REVISION REQUESTS AND ENDORSED SIX REGIONAL PLANNING GROUP PROJECTS. 
          UM, THOSE ARE QUITE HIGH NUMBERS FOR BOTH. 
          HERE'S THE LIST OF THE 18 REVISION REQUESTS THAT WERE UNOPPOSED. 
          I WAS GONNA HIGHLIGHT, UH, NPRR 1264, BUT, BUT CHAD DID THAT. 
          UM, AS YOU GUYS KNOW, YOU, YOU HEARD ABOUT THAT AT THE BOARD. 
          IT WAS A, A LONG STAKEHOLDER PROCESS. 
          AND THEN, AS WE'VE NOTED, UM, 1325 AND PIGGER 1 45, THE BATCH ZERO PROCESS ARE ON THE UNPOSED LIST. 
          SO IF ANYONE WANTS TO CHEER OR DANCE, YOU CAN DO THAT. 
          HERE IS THE LIST OF REVISION REQUESTS THAT DO HAVE OPPOSING VOTES. 
          AND THEN ON OUR HIGHLIGHTS, HERE ARE THE, UH, SIX RPG ITEMS. UM, I, I'M NOT GONNA COVER THESE. 
          CHRISTIE COVERED THEM YESTERDAY AND YOU HAVE ALREADY VOTED ON THEM, BUT, UH, WE ENDORSED SIX PROJECTS OVER TWO MEETINGS. 
          WE HAD ONE ABSTENTION ON ONE OF THE PROJECTS, TECH PRIORITY ITEMS. UM, SO TODAY I THINK IS A MILESTONE. 
          UM, WE HAVE ADDRESSED MANY OF THESE. 
          UM, AND, YOU KNOW, WE'RE, WE'RE ASKING FOR BOARD APPROVAL FOLLOWING THE RECOMMENDATION OF TAC TODAY CONTRACTS FOR CAPACITY BATCH ZERO STUDY PROCESS, UH, DISPATCHABLE RELIABILITY RESERVE SERVICE, LARGE ELECTRONIC, LARGE ELECTRONIC LOAD RIDE THROUGH REQUIREMENTS. 
          UM, I THINK THAT'S LARGE COMPUTATIONAL LOADS NOW. 
          AND THEN, UH, FIRM FUEL SUPPLY SERVICE. 
          WE DO HAVE MORE IN PROCESS. 
          I THINK MOST OF THESE ARE DUE BY THE END OF THE YEAR. 
          UM, ENERGY STORAGE, RESOURCE INCLUSION, AND DRS AS YOU KNOW, AFTER STAKEHOLDER AND THEN COMMISSION DISCUSSION, THE DIRECTION WAS TO HAVE ESR PARTICIPATION IN DRS IN A SEPARATE NPRR, BUT TO HOPEFULLY IMPLEMENT THAT AT THE SAME TIME AS THE START OF IMPLEMENTATION OF DRS THAT NPR WAS FILED ON FRIDAY. 
          UH, BATCH STUDY CONTINUED. 
          MY UNDERSTANDING IS THAT WE WILL AIM TO HAVE THOSE REVISION REQUESTS TO THE FEBRUARY BOARD. 
          UM, SO THIS IS, YOU KNOW, HOW WE'RE TRANSITIONING FROM OUR CURRENT PROCESS THEN TO BATCH ZERO, WHICH IS A TRANSITIONAL BATCH, AND THEN TO THE ONGOING BATCH STUDY ON THE 12 MONTH CADENCE. 
          WE HAVE A LONGER TIMEFRAME TO DO THIS, BUT WE ALSO, UH, KNOW MORE AND I THINK WE'LL CONTINUE TO KNOW MORE, UM, LEARN MORE ABOUT HOW THE BATCH ZERO FEEDS INTO THE TRANSMISSION PLAN. 
          WE HAD A LOT OF ASKS DURING BATCH ZERO THAT WE DID NOT GET TO. 
          I THINK WE WILL CONTINUE TO HEAR THOSE ASKS. 
          SO I THINK IT'LL BE, YOU KNOW, A LONGER TIMEFRAME, BUT I THINK WE WILL, PEOPLE WILL EXPECT MORE. 
          SO A LOT OF POLICY DEC DISCUSSIONS AND DECISIONS STILL TO BE MADE. 
          ERS ENHANCEMENT. 
          UM, THIS PR WAS FILED LAST WEEK AS WELL. 
          UM, THIS IS SORT OF TAKING THE SPIRIT OF SOMETHING IN SB SIX, WHICH IS CUTTING DOWN ON LOAD PARTICIPATION AND DEMAND RESPONSE IF THAT LOAD IS ALREADY CURTAILING IN RESPONSE TO PRICE BECAUSE THEY'RE SORT OF SELF DEPLOYING AS IF THEY WERE ALREADY IN THAT SERVICE. 
          UM, I DON'T KNOW IF KEITH IS GONNA SPEAK MORE TO IT, BUT IT ESTABLISHES A, A BASELINE THAT YOU HAVE TO QUALIFY FOR. 
          SO A, A LOAD WITH A DYNAMIC SHAPE WON'T QUALIFY OR, UM, HAS TO SELECT A, A BASELINE TO PARTICIPATE, AND I BELIEVE THAT WE WANT BY THE END OF THE YEAR. 
          YEP. 
          UM, GENERATION FIRMING, THE SIMPI WAS FILED IN APRIL, SO A LITTLE BIT LONGER AGO, UM, 
          [01:30:01]
IMPLEMENTS SOME NEW GENERATION FIRMING PROGRAMS THAT WAS ORIGINALLY IN HB 1500 WAS IMPLEMENTED INTO PUC RULE. 
          SO NOW WE NEED TO IMPLEMENT IT INTO PROTOCOL. 
          UM, THE, THE LAW APPLIES TO RESOURCES WITH A SIGNED INTERCONNECT AGREEMENT AFTER JANUARY 1ST, 2027, UM, AFTER THOSE RESOURCES HAVE A YEAR OF EXPERIENCE AFTER COMMISSIONING. 
          SO PRACTICALLY THAT'S, YOU KNOW, MAYBE TWO, TWO AND A HALF YEARS AFTER THAT JAN 1 20, 27 DATE. 
          BUT BECAUSE OF THOSE RESOURCES, IT APPLIED TO THOSE RESOURCES THAT AT THAT TIME, WE NEED TO PASS THIS BY THE END OF THE YEAR FIRM FUEL SUPPLY SERVICE, UM, NPR 1335 ALSO FILED LAST WEEK. 
          SO WE HAD A VERY BUSY MARKET RULES TEAM, I THINK, UM, TO IMPLEMENT THE PROTOCOLS THAT THE PC RECENTLY ADOPTED, UM, FOR PHASE THREE OF THE FIRM FUEL SUPPLY SERVICE. 
          AND THEN THE, UM, A BIG ITEM ON HERE IS THE 2027 ANCILLARY SERVICE METHODOLOGY. 
          WE DO THIS EVERY YEAR TO DETERMINE ANCILLARY SERVICE PROCUREMENT FOR THE FOLLOWING YEAR. 
          UM, A COUPLE OF YEARS AGO WE ADDED COMMISSION APPROVAL. 
          SO IN ORDER TO GET ALL THE APPROVALS BY THE END OF THE YEAR, WE HAVE TO START THIS NOW. 
          SO IT CAN BE APPROVED, UH, BY THIS BOARD IN SEPTEMBER AND RECEIVE COMMISSION APPROVAL BY THE END OF THE YEAR. 
          WE IMPLEMENTED THE PROBABILISTIC MODEL, UH, FOR THIS YEAR. 
          YOU MAY REMEMBER THAT LAST YEAR WE HAD SOME VERY, UH, SPIRITED DISCUSSIONS AROUND THIS, ESPECIALLY AROUND, UH, NONS SPIN AND ECRS, UH, PROCUREMENT. 
          I TOLD CHAIRMAN GLEASON I WOULD BRING THIS UP. 
          HE BROUGHT UP THE, UH, CONSERVATIVE OPERATIONS AND, AND WHEN DO WE NEED TO THINK ABOUT REVISITING THAT? UM, AND THAT'S ALREADY BEEN A TOPIC OF DISCUSSION AMONG STAKEHOLDERS. 
          I WILL SAY, YOU KNOW, WE WERE HAPPY TO HEAR FROM OUR AND THE IMM THAT THEY ARE COLLABORATING ON THIS, AND SO HOPEFULLY THOSE DISCUSSIONS WILL GO SMOOTHLY THIS YEAR. 
          ANY QUESTIONS BEFORE I GET TO THE ALL RIGHT. 
          UM, FIRST PRIORITY REVISION REQUEST WITH OPPOSING VOTES NO G 2 82. 
          UM, LARGE COMPUTATIONAL LOAD READ THROUGH REQUIREMENTS ESTABLISHES FREQUENCY AND VOLTAGE READ THROUGH REQUIREMENTS FOR THESE LOADS. 
          UM, ON APRIL 29TH, TECH VOTED TO RECOMMEND APPROVAL OF NO G 2 82 AS RECOMMENDED BY ROSS BEFORE US. 
          WE DID HAVE TWO OPPOSING VOTES. 
          BOTH OF THOSE WERE INDUSTRIAL CONSUMERS, AND WE HAD FOUR ABSTENTIONS. 
          THOSE WERE THE SMALL COMMERCIAL CONSUMER, UH, COOPERATIVE SEGMENT, INDEPENDENT GENERATOR SEGMENT, AND IRE SEGMENT. 
          UM, WE DID NOT RECEIVE THE OPPOSING VOTE EX UM, EXPLANATION, BUT WE DID SEE, UH, COMMENTS FILED BY TIEC WHO WOULD REPRESENT THE INDUSTRIAL CONSUMERS ON MAY 21ST. 
          THOSE COMMENTS FOCUS ON ERCOT LEGAL AUTHORITY TO IMPOSE REQUIREMENTS ON END USE CONSUMERS, UM, WHO WE TYPICALLY THINK OF BEING THE ONES THAT WE SET THE GRID UP TO RELIABLY SERVE. 
          UM, WE HEARD, I THINK I'VE SPOKEN TO THIS, I'VE SPOKEN ABOUT THIS AT THE BOARD BEFORE. 
          WE HAD A DISCUSSION, UM, BETWEEN THOSE TWO PARTIES, TIC AND ERCOT AT A PREVIOUS TECH LEADING UP TO THE VOTE. 
          YOU KNOW, IT'S REALLY A DEBATE ON THE INTERPRETATION OF THE LAW, RIGHT? AND PIRA CONSUMERS ARE NOT LISTED IN AN EXPLICIT LIST OF ENTITIES SUBJECT TO ERCOT PROTOCOLS. 
          BUT HOWEVER, IN PR, AS WE ALL KNOW, ERCOT IS REQUIRED TO ENSURE THE RELIABILITY AND ADEQUACY OF THE ELECTRICAL NETWORK. 
          UM, TIAC HAD AN ALTERNATE PROPOSAL, WHICH WOULD BE TO HAVE THAT TSPS CONTINUE TO HAVE REQUIREMENTS, BUT I THINK THERE'S SOME QUESTION AND ABILITY FOR THE TSPS TO SEE THE, THE FREQUENCY AND VOLTAGE ISSUES IN REAL TIME. 
          WE HAD A COUPLE OF OTHER DISCUSSION POINTS. 
          UH, THE MOST NOTABLE WAS ABOUT THE APPLICABILITY DATE. 
          THIS IS AN ISSUE WE'VE TALKED ABOUT, UM, FOR A WHILE. 
          AND THE, THE NOER WAS THE SECOND ITERATION OF A REVISION REQUEST ON THIS TOPIC. 
          SO WHEN THE NOER WAS FILED, THE APPLICABILITY DATE WAS BASICALLY THE FILING DATE. 
          UM, SO WE DID RECEIVE SOME COMMENTS CONCERNED ABOUT THE, THE POLICY OF HAVING A DATE, APPLICABILITY DATE SET BEFORE THE ACTUAL EFFECTIVE DATE. 
          AND, UH, NPR 1309 GOES ALONG WITH THAT NOER, AND IT'S THE, THE DEFINITION, I THINK WE NEED TO, UH, STOP HERE, STOP YOUR REPORT HERE, AND THEN FINISH THE DISCUSSION OF 13 0 8 2 8 2. 
          SO STAND BY CLOSE AND THEN WE'LL HAVE A VOTE ON THAT. 
          SO, UH, AT THIS POINT IN TIME, I'D LIKE TO, WILL THE BOARD HAVE ANY QUESTIONS ON KAITLYN'S REPORT TO THIS POINT, PARTICULARLY ON 1308 AND 2 82? OKAY, WITH 
          [15.1.1.3 ERCOT Comments on NOGRR282 and NPRR1308]
THAT, I'M GONNA INVITE JEFF BILLOW AND NATHAN BIG 
          [01:35:01]
B TO, UH, PRESENT I AGENDA ITEM 15.3 OR CO UH, COMMENTS ON NUMBER 2 82 AND NPR 1308. 
          UH, IT'S MY UNDERSTANDING THAT THE STAFF RECOMMENDS APPROVAL OF NUMBER 2 82 IS MODIFIED BY THE ERCOT BRIT COMMENTS, UH, DATED MAY THE 11TH AND THAT WERE INCLUDED IN THE MEETING MATERIALS. 
          UH, JEFF AND NATHAN, PLEASE HIGHLIGHT WHAT WAS RECOMMENDED, THE MAY 11TH COMMENTS WHILE YOU'RE GOING THROUGH YOUR PRESENTATION. 
          YEAH, OKAY. 
          WILL DO. 
          YEAH. 
          SO, UM, WHEN I TALK TO PEOPLE OUTSIDE OF TEXAS, UH, I, I GET ASKED MORE ABOUT, UH, THIS, THE VOLTAGE RIDE THROUGH ISSUES MORE, MORE SO THAN, UH, BATCH. 
          UH, AND, AND, UH, AND THAT'S BECAUSE THIS IS AN EXTREMELY IMPORTANT TOPIC FOR INDUSTRY. 
          AND THE REASON IT IS IMPORTANT IS BECAUSE, UH, AS WE'VE ALREADY SEEN ON OUR SYSTEM, WE'VE HAD A NUMBER OF EVENTS WHERE THE LARGE COMPUTATIONAL LOADS, UH, WILL TRIP FOR WHAT WE WOULD CONSIDER NORMAL EVENTS ON THE SYSTEM. 
          A, A NORMAL FAULT ON THE SYSTEM, UH, THAT THESE, UH, LOADS ARE, ARE TRIPPING OFF. 
          AND THAT, UH, CREATES A RELIABILITY ISSUE. 
          AND AS WE THINK ABOUT THE, UH, CONTINUED GROWTH OF, OF THESE TYPES OF FACILITIES ON THE SYSTEM, UH, IF WE DO NOT ADDRESS THIS NOW, THEN THIS IS GOING TO GROW IN, INTO AN ISSUE THAT COULD BECOME, UH, EITHER VOLTAGE OR, UH, AND OR FREQUENCY, UH, STABILITY ISSUE. 
          UH, AND, AND SO FROM A, UM, FROM A RELIABILITY PERSPECTIVE, THAT THIS IS REALLY A, A CRITICAL PIECE. 
          UH, I THINK DAN COVERED YESTERDAY SOME STUDIES AROUND, UH, WE, WE'VE LOOKED AT OTHER ALTERNATIVES SUCH AS TRANSMISSION IMPROVEMENTS OR MAYBE SOME MARKET, UH, UH, TYPE PRODUCTS THAT COULD, UH, ENHANCE THIS. 
          BUT, BUT AT THE END OF THE DAY, THE REALLY, THE, THE ULTIMATE SOLUTION IS AT THE FACILITIES IS TO REQUIRE THE FACILITIES TO BE ABLE TO MEET THESE, UH, CERTAIN RIDE THROUGH REQUIREMENTS. 
          UM, AND, AND SO THAT'S THE, THE RELIABILITY NEED FOR THIS. 
          UM, DID, DID ALSO, UH, WANT TO, UM, UH, HIGHLIGHT AS, AS, UH, CHAIR FLORES MENTIONED THAT WE FILED COMMENTS, UH, BECAUSE WE REALIZED THAT A PREVIOUS VERSION OF COMMENTS HAD, UH, INADVERTENTLY OMITTED A A COUPLE OF DATES. 
          UH, SO THE, SO WE ADDED THOSE DATES BACK IN ON OUR BLUES, THAT THE MAY 11TH, UH, COMMENTS, SO THIS IS AFTER THE TECH VOTE. 
          UH, JUST WANTED TO ADD THOSE BACK IN, BUT DID NOT, UH, SUBSEQUENTLY CHANGE FROM, UH, WHAT, WHAT THE INTENT WAS, UH, INITIALLY. 
          SO, UM, WITH, WITH THAT, UM, I'LL LET NATHAN SPEAK, UH, ON THE, UM, ON THE, UH, LEGAL SIDE. 
          GOOD MORNING. 
          UH, THANK YOU, JEFF. 
          UM, I'M JUST HERE TO BRIEFLY COVER THE LEGAL JUSTIFICATION FOR NOER 2 82 AND NPR 1308. 
          I THINK, UH, KAITLYN SMITHED A GREAT JOB, UH, SUMMARIZING THE GIST OF THAT DEBATE AT TAC, BUT I DID WANT TO, UH, GO DOWN IN A SLIGHTLY DEEPER LEVEL DETAIL TO TALK ABOUT ERCO POSITION. 
          OBVIOUSLY, THE TEXAS INDUSTRIAL ENERGY CONSUMERS AND THE TEXAS BLOCKCHAIN COUNCIL BOTH SUBMITTED COMMENTS, UM, REGARDING ERCOT JURISDICTION, UH, OR ITS AUTHORITY TO REGULATE PURE RETAIL CUSTOMERS AS THEY PHRASED IT. 
          AND, UH, YOU KNOW, THAT'S AN IMPORTANT QUESTION, IMPORTANT CONSIDERATION. 
          WE HAVE TAKEN A HARD LOOK AT THAT, AND OUR CONCLUSION IS THAT, UH, ERCOT SHOULD BE UNDERSTOOD TO HAVE THE AUTHORITY TO IMPOSE REGULATIONS ON PURE RETAIL CUSTOMERS WHEN THAT IS NECESSARY TO ENSURE SYSTEM RELIABILITY. 
          AND WE BELIEVE THAT IS THE JUSTIFICATIONS JEFF POINTED OUT. 
          THERE HAVE BEEN A NUMBER OF EVENTS WHERE YOU'VE SEEN THESE LARGE LOADS TRIPPING OFF, UM, THAT'S ATTRACTED ATTENTION, NOT JUST AT ERCOT, BUT UM, AT THE NERC LEVEL AS WELL. 
          THERE'S NATIONAL INTEREST IN, UH, TRYING TO FIND A WAY TO, TO SOLVE THIS PROBLEM. 
          AND ERCOT AS A LEADER HERE IS, UH, TAKING THE LEAD IN, IN DEVELOPING A STANDARD FOR RIDE THROUGH YOU FOR THE ERCOT REGION. 
          UM, THE, THE PRIMARY JUSTIFICATION THAT WE WOULD POINT TO FOR OUR AUTHORITY TO, UH, IMPOSE RELIABILITY BASED STANDARDS, UM, WOULD BE SECTION 39.1 51 OF PIRA, WHICH REQUIRES ERCOT AS THE PUC DESIGNATED INDEPENDENT ORGANIZATION FOR THE ERCOT REGION TO ENSURE THE RELIABILITY AND ADEQUACY OF THE REGIONAL ELECTRICAL NETWORK. 
          UH, WE DON'T TALK ABOUT THIS PROVISION, UM, EVERY DAY AT ERCOT, BUT IT IS REALLY THE, THE GIST OF WHAT WE DO, THE PRIMARY MOTIVATION FOR OUR ROLE, UH, HERE UNDER STATE LAW. 
          AND, AND THAT REALLY PROVIDES THE JUSTIFICATION FOR THE MAJORITY OF RELIABILITY RELATED REQUIREMENTS, UH, REVISION REQUESTS, NPR, GERS, PIGGERS THAT BEAR ON THE RELIABILITY OF THE SYSTEM. 
          SO THAT'S A, A VERY LARGE NUMBER OF REVISION REQUESTS THAT YOU WILL SEE, YOU KNOW, COMING THROUGH, UM, THE PIPELINE, UH, HERE AT ERCOT. 
          SO THINGS LIKE GENERATOR RIDE THROUGH THINGS LIKE INTERCONNECTION STANDARDS, UM, ALL THOSE THINGS RELATE TO, UM, UH, TO RELIABILITY AND ULTIMATELY FIND THEIR LEGAL FOUNDATION IN THIS GRANT OF AUTHORITY UNDER PURA. 
          [01:40:01]
UM, AND THAT'S NOT JUST AN AUTHORIZATION, IT'S REALLY A MANDATE TO ENSURE THE RELIABILITY OF THE SYSTEM. 
          SO WHEN WE SEE A THREAT TO RELIABILITY, IT IS INCUMBENT ON ERCOT, ERCOT AND THE PC COLLECTIVELY ULTIMATELY TO ACT, TO ENSURE THE RELIABILITY OF THE SYSTEM. 
          OF COURSE, ERCOT HAS DELEGATED AUTHORITY UNDER THE PC'S RULES 25 360 1 B TO ENSURE, UH, THE RELIABILITY OF THE SYSTEM, UM, CONSISTENT WITH THE STATUTORY GRANT OF AUTHORITY. 
          SO THE PRIMARY, UM, THE PRIMARY ARGUMENT THAT TIEC AND, UH, TO SOME EXTENT THE TEXAS BLOCKCHAIN COUNCIL HAD PREVIOUSLY MADE, UM, IS THAT THERE ARE TWO COMPETING PROVISIONS IN PIRA THAT COULD BE CONSTRUED TO SUGGEST A CONSTRAINT ON OTTS AUTHORITY. 
          AND ONE OF THOSE IS 39 1 51 J, WHICH SPELLS OUT A NUMBER OF, OF TYPES OF PARTICIPANTS THAT, THAT, UH, ARE REQUIRED TO FOLLOW RULES. 
          AND OUR INTERPRETATION OF THAT IS SIMPLY THAT THE LEGISLATURE WAS, WAS INDICATING THAT THOSE ENTITIES THAT ARE SUBJECT TO THE PUR FRAMEWORK MUST FOLLOW OR CUT RULES. 
          UM, THAT IS AN ESSENTIAL PART OF THE REGULATORY FRAMEWORK. 
          THAT'S THE LOGIC FOR THAT REQUIREMENT AS WE SEE IT. 
          IT WAS NOT INTENDED TO IMPLICITLY FORECLOSE ANY ABILITY OF THE COMMISSION OR ERCOT TO REGULATE ENTITIES THAT MAY NOT FALL WITHIN THAT, THAT LITANY. 
          THOSE WERE THE, THE CAST OF CHARACTERS THE COMMISSION HAD IDENTIFIED IN SB SEVEN, YOU KNOW, BACK IN 1999. 
          AND, AND THE COMMISSION, THE LEGISLATURE WANTED TO MAKE SURE THAT THOSE ENTITIES ARE SUBJECT TO THE REQUIREMENTS, UM, OF, OF THAT ERCOT AND THE PDC ESTABLISH, UH, REALLY ERCOT IN THIS PROVISION, UM, THAT ERCOT ESTABLISHES. 
          AND SO THAT FROM OUR PERSPECTIVE IS THE PURPOSE OF THAT PROVISION, NOT TO IMPLICITLY FORECLOSE ERCOT REGULATIONS THAT MAY IMPACT OTHER ENTITIES. 
          UM, ERCOT ALREADY HAS RULES THAT HAVE, HAVE TO REACH OUTSIDE THE FORMAL MARKET PARTICIPANT REGISTRATION FRAMEWORK. 
          FOR EXAMPLE, UM, OUR PLANNING GUIDE REQUIRES ANY ENTITY THAT IS PROPOSING TO INTERCONNECT A GENERATOR TO THE SYSTEM TO FOLLOW THE INTERCONNECTION PROCESS. 
          WE HAVE, WE HAVE AN, AN ENTITY CALLED AN INTERCONNECTING ENTITY UNDER THE PLANNING GUIDE THAT DESCRIBES THE, THE, THE ENTITY THAT IS SEEKING TO INTERCONNECT A GENERATOR TO THE, THE SYSTEM SO THAT THAT ENTITY IS SUBJECT TO THAT REGULATORY FRAMEWORK, EVEN THOUGH THEY ARE NOT A REGISTERED MARK PARTICIPANT NECESSARILY. 
          UM, SO THAT'S A GOOD EXAMPLE. 
          ANOTHER, ANOTHER EXAMPLE OF A, A TYPE OF PARTICIPANT THAT IS, IS NOT IN THE ENUMERATED, UH, LIST IN PIRA, IS A QUALIFIED SCHEDULING ENTITY. 
          QSE ARE AN ESSENTIAL PART OF OUR FRAMEWORK. 
          THEY ARE THE ENTITIES WE COMMUNICATE WITH, UM, ON BEHALF OF, OF GENERATORS AND, AND, UM, WE ALSO, UM, SETTLE WITH FOR THE PURPOSES OF, OF, UH, SALES AND PURCHASES OF, OF, OF ENERGY ON THE SYSTEM. 
          AND THOSE ENTITIES ARE NOWHERE TO BE FOUND IN THE PLAIN LANGUAGE OF PURE. 
          UM, AND SO, YOU KNOW, IF, IF WE LACKED AUTHORITY TO, UH, TO REGULATE ANY ENTITY THAT WAS NOT IN THAT LIST, WE WOULD LACK AUTHORITY OVER QSC, AND THAT THAT JUST DOESN'T WORK, RIGHT. 
          AND SELF GENERATORS IS ANOTHER SPECIES OF OF ENTITY OUT THERE. 
          THERE'S JUST NOT, UM, LISTED IN PUR, UH, AGAIN, I THINK A COUNTERPOINT TO THE ARGUMENT THAT WE SHOULD STRICTLY CONSTRUE 1 51 J AS IMPLICITLY, UH, FORECLOSING A REGULATION OF OTHER ENTITIES NOT SPECIFIED. 
          THE OTHER PRIMARY PROVISION, UM, THAT TI C'S POINT TO IS 39 1 51 SUBSECTION L, WHICH PROHIBITS REQUIREMENTS THAT ADVERSELY AFFECT OR IMPEDE ANY MANUFACTURING OR OTHER INTERNAL PROCESS OPERATION ASSOCIATED WITH AN INDUSTRIAL GENERATION FACILITY EXCEPT TO THE MINIMUM EXTENT NECESSARY TO ASSURE THE RELIABILITY OF THE TRANSMISSION NETWORK. 
          AND IT'S THAT LAST CLAUSE THAT IS REALLY CRITICAL BECAUSE, UM, THE LEGISLATURE OBVIOUSLY RECOGNIZED THE IMPORTANCE OF ENSURING LIABILITY, BUT OF COURSE, THIS PROVISION DOESN'T, EVEN IN THE FIRST INSTANCE, SUGGEST THAT WE CANNOT, UH, IMPOSE REQUIREMENTS ON CUSTOMERS AS A GENERAL ARGUMENT, IF THAT WERE TRUE, THIS PROVISION WOULD WOULDN'T BE NECESSARY AT ALL. 
          SO, YOU KNOW, WE, WE THINK THAT THAT ARGUMENT, UM, FROM REDUNDANCY CLEARLY, UH, REBUTS THE, THE ARGUMENT THAT TIC MADE THAT WE HAVE NO AUTHORITY TO REGULATE CUSTOMERS AS, AS CAITLYN INDICATED. 
          UM, TIC HAS PROPOSED AN ALTERNATIVE. 
          WE JUST DON'T THINK THAT THAT'S REALLY A SUFFICIENT, UH, SOLUTION TO THE SIGNIFICANT RIDE THROUGH RISK THAT WE'RE SEEING. 
          AND THAT, UH, PROPOSAL WAS TO CONVERT THE REQUIREMENTS IN NUMBER 2 82 INTO NON-BINDING GUIDELINES. 
          UM, WE THINK THERE'S AN OBVIOUS DEFECT THERE BECAUSE IF CUSTOMERS ARE NOT REQUIRED TO COMPLY WITH THESE REQUIREMENTS, THEN THEY, THEY REALLY AREN'T ANY GOOD. 
          IF, IF THE LAW, UM, YOU KNOW, CANNOT IM IMPOSE A BINDING REQUIREMENT ON AN ENTITY, THEN IT, IT, IT, IT, IT DOESN'T DO ANYTHING. 
          UM, AND RELYING ON THE TDS PS TO MANAGE THAT RELATIONSHIP ALSO DOESN'T 
          [01:45:01]
WORK BECAUSE WE CAN'T ASSURE THAT WE'RE GONNA HAVE CONSISTENT STANDARDS FROM SERVICE AREA TO SERVICE AREA. 
          THE PRIMARY RISK THAT WE'RE TRYING TO ADDRESS HERE IS A RISK TO FREQUENCY. 
          SO YOU HAVE A VOLTAGE EXCURSION OR A FREQUENCY EXCURSION THAT LEADS TO THE TRIP OF THE LOAD, WHICH CAUSES OVER FREQUENCIES AND ON THE SYSTEM, AND THAT CAN CAUSE A TRIP OF GENERATORS OR OTHER LOADS ON THE SYSTEM. 
          AND THAT'S THE RISK WE'RE TALKING ABOUT. 
          THAT'S A SYSTEM-WIDE PHENOMENON THAT ONLY ERCOT AS THE BALANCING AUTHORITY AS THE INDEPENDENT SYSTEM OPERATOR FOR THE ENTIRE ERCOT REGION HAS THE LEGAL CAPACITY, THE STRUCTURAL CAPACITY TO RESOLVE THE INDIVIDUAL UTILITIES DO NOT HAVE THAT VISIBILITY, THAT THAT CAPABILITY OR THAT LEGAL DUTY TO MANAGE SYSTEM FREQUENCY. 
          AND THAT'S WHY THIS IS APPROPRIATE AS A SYSTEM-WIDE REQUIREMENT, NOT AS A-T-D-S-P SPECIFIC SERVICE AREA REQUIREMENT. 
          SO, UH, IN A NUTSHELL, THAT'S OUR POSITION ON, ON THE LAW, AND, UM, WE BELIEVE THAT, UM, ERCOT HAS THIS AUTHORITY AND THAT REASON THAT THE BOARD HAS SUFFICIENT GROUNDING FOR, UH, RECOMMENDING APPROVAL OF THESE REVISION REQUESTS. 
          THANKS, NATHAN. 
          AND JEFF, ANY QUESTIONS FOR NATHAN? UH, YEAH, PEGGY? YEAH, JUST QUICKLY, UH, JUST TO SUMMARIZE, I THINK I GOT THIS CORRECT. 
          I JUST WANT TO CLARIFY THAT THE PURE 3 9 1 51 J, WHICH IS THE OPERATIVE ARGUMENT, IT DOES NOT LIMIT JU UH, ERCO AUTHORITY OVER THE LISTED ENTITIES. 
          AND YOU SAID THAT, UH, WE HAVE MANY PROTOCOLS THAT GO BEYOND THAT LIST, AND I, PRESUMABLY THE INDUSTRIALS WERE PART OF DEVELOPING THOSE PROTOCOLS, IS THAT CORRECT? I LOOKED AT THE VOTING RECORDS, BUT CERTAINLY THE, THE INDUSTRIAL CONSUMERS HAVE BEEN PART OF THE STAKEHOLDER PROCESS HERE AT ERCOT THAT DID APPROVE, UM, YOU KNOW, DOZENS AND DOZENS OF REQUIREMENTS, UM, THAT WOULD BEAR ON QUALIFIED SCHEDULING ENTITIES WHO ARE, UM, NOT EXPLICITLY INCLUDED IN THAT LIST. 
          CORRECT. 
          RIGHT. 
          AND I UNDERSTAND TIEC ALSO ARGUES THAT ERCOT DOESN'T HAVE THE EXPERTISE TO REGULATE IN THIS AREA. 
          WHAT'S OUR RESPONSE TO THAT? SO, YOU KNOW, I, I THINK EXPERTISE IS ALWAYS A, AN IMPORTANT CONSIDERATION, RIGHT? AND, AND THAT'S WHY WE, AND AND FROM MY PERSPECTIVE, I THINK THAT'S WHY WE HAVE A STAKEHOLDER PROCESS IN ORDER TO GATHER THAT INFORMATION IN ORDER TO DEVELOP THE APPROPRIATE REQUIREMENTS. 
          YOU KNOW, SIMILARLY, THE PDC HAS A, A NOTICE AND COMMENT PROCESS WHERE THEY CAN COLLECT FEEDBACK ON A PROPOSAL, GET THAT FEEDBACK, CONSIDER IT, AND DEVELOP AND IMPROVE THAT PROPOSAL. 
          UM, YOU KNOW, AS IT AS IT MATERIALIZES, UM, YOU KNOW, ERCOT DOESN'T HAVE DIRECT KNOWLEDGE OF, YOU KNOW, GENERATOR MECHANICS EITHER, RIGHT? AND YET WE'VE, WE HAVE REGULATED GENERATOR RIDE THROUGH FOR MANY YEARS, AND SO WE'VE RELIED ON, UM, INFORMATION FROM THE MARKET TO INFORM THOSE STANDARDS. 
          AND, UH, WE TAKE THAT VERY SERIOUSLY. 
          WE, UH, WE MADE THAT VERY CLEAR WHEN WE SET OUT, UM, WITH THIS PROPOSAL IN MID-NOVEMBER TO COLLECT THAT FEEDBACK. 
          WE HAVE COLLABORATED, UM, WITH MANY MEMBERS OF THE, THE DATA CENTER INDUSTRY TO DEVELOP THESE REQUIREMENTS AND MADE A NUMBER OF CHANGES BASED ON THAT FEEDBACK. 
          AND SO WE THINK THAT IS CRITICAL AND ESSENTIAL, BUT CERTAINLY, YEAH, ERCOT STRUCTURALLY IS NOT IN A POSITION, UM, TO HAVE, YOU KNOW, FIRSTHAND KNOWLEDGE OF, OF THESE ISSUES. 
          OUR JOB IS TO ENSURE GRID RELIABILITY, BUT THAT REQUIRES COOPERATION WITH THE OWNERS OF THESE FACILITIES TO ENSURE THAT THESE REQUIREMENTS ARE REASONABLE, UM, THAT THEY ARE TAKING INTO CONSIDERATION, UM, THE, THE CAPABILITIES OF THESE ASSETS AND, UM, SO THAT THEY ULTIMATELY, UH, MAKE SENSE TO, YOU KNOW, PROMOTE, UM, PROMOTE GROWTH IN THE, IN THE ERCOT REGION IN A WAY THAT THAT MAINTAINS RELIABILITY. 
          DO I SEE A HAND OVER HERE? YES. 
          CHRIS, UH, JUST NATHAN, UM, YOU MENTIONED NERC. 
          CAN YOU TELL US A LITTLE BIT ABOUT WHERE THEY STAND, THE ON REQUIREMENTS AROUND THIS ISSUE AND, UH, HOW WE MAY OR MAY NOT LINE UP? RIGHT. 
          SO NERC APPEARS TO BE IN THE VERY EARLY STAGES OF REGULATING THESE RISKS. 
          UM, YOU KNOW, BACK IN SEPTEMBER OF LAST YEAR, THEY HAD ISSUED A LEVEL TWO NERC ALERT AND HAD REQUESTED A SIGNIFICANT AMOUNT OF INFORMATION FROM, UM, ENTITIES AROUND THE COUNTRY AS TO THE CURRENT STATUS OF THEIR, UM, THEIR INFORMATION GATHERING AND, AND REGULATORY EFFORTS. 
          AND, UM, THAT INITIAL NRC ALERT WAS ISSUED BECAUSE OF SOME OF THESE LARGE LOAD TRIPS THAT HAD BEEN OBSERVED AROUND THE COUNTRY, INCLUDING AT LEAST ONE EVENT HERE IN TEXAS. 
          AND, YOU KNOW, SO THOSE EVENTS, UM, QUICKLY RAISED ALARMS AT NERC. 
          AND, UH, FOLLOWING THAT LEVEL TWO ALERT, UM, THEY ANNOUNCED AN EFFORT TO, UH, TO INITIATE A REGULATORY FRAMEWORK FOR LARGE COMPUTATIONAL LOADS, UM, AS THEY'RE CALLING THEM. 
          AND THEY ARE IN THE PROCESS OF, UM, TRYING TO ZERO IN ON DEFINITIONS FOR THE COMPUTATIONAL LOAD ENTITIES, ENTITIES THAT 
          [01:50:01]
WILL BE SUBJECT TO THESE REGULATIONS, AND TO REALLY ESTABLISH A SCOPE FOR THE REGULATORY CHANGES THAT ARE COMING. 
          THE INITIAL PHASE OF, UH, OF RELIABILITY STANDARDS THAT NER IS CURRENTLY CONTEMPLATING, UH, INCLUDE STANDARDS THAT DEAL WITH MODELING COMMUNICATIONS, UM, INTERCONNECTION PROCESSES, UH, COMMISSIONING, THAT SORT OF THING. 
          UM, THEY HAVE ISSUED A, A LEVEL THREE ALERT, UM, IN, IN EARLY MAY, UM, THAT IS ONLY THE THIRD LEVEL THREE ALERT ISSUED IN MEC'S HISTORY, UM, INDICATING A SIGNIFICANT CONCERN THAT, UM, THAT ENTITIES, RCS AND MBAS RELIABILITY COORDINATORS, BALANCING AUTHORITIES THAT THESE ENTITIES NEED TO TAKE THESE ACTIONS. 
          UM, THEY'RE ESSENTIAL ACTIONS AS DEFINED IN THIS NERC ALERT TO, UM, TO ENSURE THE RELIABILITY OF THE GRID. 
          AND, UM, AND A LOT OF THAT INVOLVES MODELING, INVOLVES COMMISSIONING COMMUNICATION PROCESSES, UM, AND NERC VIEWS THOSE AS KIND OF THE, THE BUILDING BLOCKS, THE FOUNDATION FOR A FRAMEWORK ON WHICH THEY CAN ESTABLISH OTHER STANDARDS. 
          RIDE THROUGH RISK IS CERTAINLY ONE OF THE ISSUES, UM, THAT THEY HAVE IDENTIFIED. 
          THERE ARE A COUPLE OF WHITE PAPERS THAT HAVE INFORMED THESE EFFORTS, AND SO IT DEFINITELY APPEARS THAT NERC IS MOVING IN THE DIRECTION OF, UH, REGULATING RIDE THROUGH. 
          BUT I THINK MY UNDERSTANDING IS THAT THEY ARE IN THE PROCESS OF DOING ADDITIONAL RESEARCH TO, TO, UH, TO EVALUATE APPROPRIATE REQUIREMENTS. 
          AND, AND IF, UM, IF THEY, UH, AT, AT THE APPROPRIATE TIME, THEY MAY PROCEED IN PHASE TWO NEXT YEAR WITH SOME ADDITIONAL REQUIREMENTS. 
          BUT I DON'T THINK RIGHT THERE IS IN SCOPE FOR PHASE ONE. 
          IT'S REALLY ABOUT ESTABLISHING THE, THE FOUNDATIONAL REGULATORY FRAMEWORK, INCLUDING REGISTRATION OF COMPUTATIONAL LOADS FOR THE PURPOSES OF THOSE REGULATIONS. 
          SURE. 
          YEAH. 
          SO, NATHAN, JUST TO BE CLEAR, NOTHING IN TIA'S COMMENTS CONTENDS THAT THIS IS AN ISSUE THAT DOESN'T NEED TO BE ADDRESSED. 
          IT, THEY JUST SAY THAT IT'S SHOULD NOT BE ADDRESSED IN THE MANNER YOU ARE RECOMMENDING. 
          I THINK THAT'S ACCURATE. 
          THEY'RE, THEY AGREE THAT THIS IS A RELIABILITY RISK. 
          THEY SUGGEST THAT IT SHOULD BE, UH, ADDRESSED IN A DIFFERENT MANNER, HOWEVER WE BELIEVE IT, IT, IT NEEDS TO BE ADDRESSED IN A MANNER THAT ENSURES THAT IT IS RESOLVED AND ISN'T LEFT OPEN. 
          OKAY. 
          THANK YOU. 
          UH, IF WE DON'T HAVE ANY OTHER QUESTIONS, WE'LL GO AHEAD AND PUT THIS MATTER UP FOR CONSIDERATION. 
          AS I PREVIOUSLY MENTIONED THIS AS A BOARD PRIORITY ITEM. 
          UH, SO I'LL ENTERTAIN A MOTION TO ADOPT NPR 1308 AS RECOMMENDED BY TAC AND TO ADOPT NO 2 82 AS MODIFIED BY THE MAY 11TH, 2026. 
          ERCOT COMMENTS BILL HAS MADE, THE MOTION JOHN HAS SECONDED IS, UH, ALL IN FAVOR, AYE. 
          AYE. 
          ANY OPPOSED? ANY ABSTENTIONS? OKAY. 
          UM, NPR 1308 AND OVER 2 82 0 8 ARE, UH, APPROVED. 
          UH, NOW 
          [Items 15.1.2.1 & 15.1.2.2]
WE'RE GONNA GO BACK TO KAITLIN AND WE'RE GONNA TALK ABOUT AGENDA ITEM 15.2, 15.1, UH, DOGAR 2 83, WHICH IS A BOARD PRIORITY RELATED TO NPR 1309 DISPATCHABLE RELIABILITY RESERVE ANCILLARY SERVICE AND AGENDA ITEM 15 TWO, WHICH IS NPR 1309 ITSELF, THE DISPATCHABLE RELIABILITY RESERVE, ANCILLARY SERVICE OF KAILYN. 
          PLEASE PROCEED. 
          OKAY. 
          UM, NPR 1309 DEVELOPS DRS AS AN ANCILLARY SERVICE. 
          WE'VE TALKED ABOUT THIS ONE A LOT. 
          UM, IT'S THE IMPLEMENTATION OF A SERVICE CREATED BY THE LEGISLATURE. 
          WE ARE CURRENTLY HOLDING OFF ON DRS PLUS, WHICH WAS A ADDITIONAL NPRR UNTIL THE RELIABILITY STANDARD STUDY TALKS. 
          AND THEN, AS I NOTED EARLIER, WE HAVE, UH, ESR PARTICIPATION IN DRS AND A, A SEPARATE NEW NPRR. 
          SO THIS CREATES, UH, THE ANCILLARY SERVICE, THE DEMAND CURVE FOR IT, ALL OF THAT. 
          UM, AND THEN THE OTHER THING THAT WE HAVE ADDED TO THIS NPRR IS REDUCING THE NONS SPEND DURATION REQUIREMENT FROM FOUR HOURS TO TWO HOURS UPON IMPLEMENTATION OF THIS SERVICE, WHICH WOULD LIKELY ALSO BE A A FOUR HOUR SERVICE. 
          UM, NPR 1309 WAS ENDORSED BY TAC AT THE APRIL 29TH TAC MEETING. 
          WE HAD ACTUALLY FIVE NO VOTES AND ONE ABSTENTION, UM, OPPOSING VOTES FROM THE INDEPENDENT GENERATOR AND COOPERATIVE SEGMENTS, AND AN ADDITIONAL ABSTENTION ALSO FROM THE COOPERATIVE SEGMENT. 
          IT, IT SOUNDS LIKE A LOT OF NO VOTES. 
          UM, BUT I DO THINK THIS IS A, A PRETTY GOOD SUCCESS STORY. 
          WE WENT INTO THE MEETING ACTUALLY WITH TWO DIFFERENT SUBSTANTIVE ISSUES THAT I WOULD SAY WE'RE STILL AT ODDS. 
          SO, YOU KNOW, THINKING ABOUT TWO, TWO ISSUES WHERE PEOPLE ARE POTENTIALLY NOS THAT COULD BE EIGHT TO 10 NOS. 
          SO I, I THINK WE DID A PRETTY GOOD JOB WITH THIS ONE. 
          UM, WE HAD A ROBUST DISCUSSION REGARDING WHAT THE SHORTAGE PRICING FLOOR SHOULD BE. 
          SO WHEN WE DON'T PROCURE ENOUGH, UM, THIS FLOOR KICKS IN. 
          ORIGINALLY IT WAS SET TO ONE PENNY, UM, 
          [01:55:01]
AND THEN AFTER SOME DISCUSSION AT PRS OR CUT, REVISE THEIR POSITION TO A $10 PRICE FLOOR, THAT'S ULTIMATELY WHAT TAC VOTED THROUGH. 
          BUT WE DID GET SOME INITIAL PUSHBACK ON THAT, THAT FLOOR LEVEL FROM CONSUMERS. 
          AND SO WE TOOK A FIRST VOTE WITH THE, THE PENNY PRICE FLOOR THAT FAILED. 
          THE OTHER BIG ISSUE HEADING INTO TAC WAS THE NONS SPEND DURATION. 
          SO SORT OF REVERSE OF, OF THAT. 
          COMING OUT OF PRS, WE HAD AGREED TO KEEP NONS SPIN AT, AT THE FOUR HOUR DURATION, EVEN UPON IMPLEMENTATION OF DRS, BUT WE HEARD FROM ERCOT AND THE IMM AND COMMISSION STAFF SUPPORT FOR MOVING THAT DURATION TO TWO HOURS. 
          THE THOUGHT BEING THAT DRS WILL COVER THE NEEDS FOR A FOUR HOUR SERVICE. 
          THE OPPOSING VOTES LEFT WERE DUE TO CHANGING THE NONS SPEND DURATION FROM FOUR HOURS TO TWO HOURS. 
          ONE OF THE COMMENTS WAS THAT, YOU KNOW, LOWERING THAT DURATION WAS NOT NECESSARY TO IMPLEMENTATION OF, OF DRS, AND THAT DOING SO MAY ACTUALLY BE COUNTER TO THE STATUTE, WHICH HAS A GOAL OF REDUCING RUCKS. 
          UM, ON THAT ISSUE, COMMENTERS ALSO FELT THAT LOWERING THE, THE DURATION FOR NONS SPEND MAY BE PREMATURE, AS ERCOT HAS DISCRETION ON, UM, THE, THE DURATION OF DI DRS, IT COULD ACTUALLY BE MORE THAN FOUR HOURS. 
          AND THEN ADDITIONALLY, OPPOSING VOTERS FELT THAT DRS, EVEN WITHOUT DRS PLUS, SHOULD FURTHER THE GOAL OF A RELIABILITY STANDARD AND NOT JUST, UH, ADDRESS OPERATIONAL UNCERTAINTY. 
          AND NOER 2 83 GOES ALONG WITH, UM, 1309 AND HAS THE SAME VOTING RECORD. 
          OKAY. 
          THANK YOU CALY. 
          AND WHILE WE INVITE, UH, KEITH TO COME UP AND GIVE C**K COMMENTS ON NPR 1309, I WANT TO GO BACK TO, UH, AGENDA ITEM 15 FOUR FOR A MINUTE. 
          AND TO STATE FOR THE RECORD THAT, UH, THE BOARD RECEIVED WRITTEN COMMENTS FROM SB ENERGY AND ALSO FROM THE TEXAS INDUSTRIAL CONSUMERS REGARDING THE LARGE COMPUTATIONAL LOAD RIDE THROUGH REQUIREMENTS REVISION REQUEST, BOTH SETS OF COMMENTS WERE INCLUDED IN THE MEETING MATERIALS TODAY. 
          AND AS FAR AS I UNDERSTAND, THERE WERE NO OTHER COMMENTS OR, OR, UH, REQUESTS FOR PUBLIC COMMENT ON. 
          IS THAT CORRECT? THAT'S CORRECT, CHAIR. 
          OKAY, THANK YOU. 
          JUST WANNA MAKE SURE THAT WAS IN THE RECORD. 
          SO KEITH, YOU'RE GOING TO NOW PRESENT THE, UH, ERCOT COMMENTS ON NPR 1309. 
          ALRIGHT? YES. 
          UH, I, I'LL BE BRIEF HERE, BUT, UM, KAITLYN DID COVER SOME OF THE ITEMS THAT, THAT I WANTED TO KNOW. 
          YEP. 
          KEITH, COULD YOU GIVE US THE PAGE NUMBER AND DILIGENT, UH, PAGE NUMBER AND DILIGENT IS 3 57. 
          THANK YOU. 
          YEP. 
          OKAY. 
          SO, UM, JUST VERY BRIEFLY, THERE'S A SEQUENCE OF, OF, UH, NPRS KAITLYN MENTIONED THIS, IT WAS MENTIONED BEFORE. 
          THE ONLY THING I WILL NOTE IS THAT THE E-S-R-N-P-R IS 13 4 0, 13 40 IS THE NEW ONE. 
          AND IT WAS FILED LAST WEEK. 
          SO REALLY, AND, AND, AND AGAIN, THIS IS JUST TO HIGHLIGHT SOME OF THE COMMENTS THAT CAITLYN MADE. 
          THERE ARE, UH, JUST A FEW ITEMS, UH, OF, UH, WHERE, WHERE SOME OF THE CONTENTION WAS IN THE STAKEHOLDER PROCESS. 
          I JUST WANNA COVER THESE QUICKLY. 
          UH, THE FIRST ONE HAD TO DO WITH THE, THE USE OF THE ANSLEY SERVICE DEMAND CURVE FOR THE DRS PRODUCT. 
          UH, AS, AS YOU KNOW, THIS IS A, AN AREA OF DISCUSSION A LOT LAST YEAR IN TERMS OF HOW WE WERE GOING TO UTILIZE DEMAND CURVES IN THE, UH, REAL TIME, UH, CO-OP OPTIMIZATION. 
          THIS DOES CHANGE HOW THINGS HAVE BEEN DONE HISTORICALLY. 
          UH, ONE OF THE CHANGES THAT WAS MADE IN, IN THE PROCESS THAT WAS A JUST JOINT DISCUSSION BETWEEN, UH, ERCOT AND THE IMM WAS TO CRAFT WHAT THAT, UH, DEMAND CURVE WOULD LOOK LIKE. 
          UH, THERE WAS SOME, UH, DEBATE AND DISCUSSION AROUND WHETHER OR NOT THAT SHOULD OR SHOULD NOT BE UTILIZED. 
          I THINK OUR VIEW, ALONG WITH THE IMMS VIEW, WAS THAT, UH, TO INCORPORATE IT AS A WAY TO ENSURE THAT THE PROPER, UM, UH, SEQUENCING OF THE RESERVES WOULD HAPPEN APPROPRIATELY IN THE, THE REAL TIME CO-OP AUTHORIZATION PROCESS. 
          AND THAT'S WHERE THIS, THIS CONSTRUCT CAME FROM. 
          UH, THERE WERE OTHERS THAT FELT THAT, UH, THE CURVES SHOULD REST OUTSIDE OF THAT PROCESS, BUT, BUT, UH, US ALONG WITH THE, UH, THE IMM FELT THAT THIS WAS APPROPRIATE. 
          SECONDLY, AS, AS KAITLYN DID COVER, THERE WAS DISCUSSIONS AROUND WHAT THE, WHAT A FLOOR WOULD LOOK LIKE. 
          AND ULTIMATELY THERE WERE DIFFERENT VIEWS. 
          UH, THERE WAS A VIEW THAT IT SHOULD BE CONSISTENT WITH WHAT IS USED WITH, WITH NONS SPIND AT $15. 
          UH, THERE WAS A VIEW THAT IT SHOULD BE AT A PENNY. 
          AND, UH, THE ERCOT VIEW WAS THAT AT $10, UH, UH, FOR THE FLOOR WOULD, WOULD BE A SWEET SPOT IN TERMS OF, UH, NOT, UH, BEING IN CONFLICT WITH WHAT WE WERE DOING WITH THE OTHER RESERVE PRODUCTS, UH, BUT ALSO RECOGNIZING THAT, UH, THE, THE PENNY FLOOR WASN'T, UH, 
          [02:00:01]
WASN'T SUFFICIENT ENOUGH. 
          AND THEN FINALLY, UH, THE DURATION REQUIREMENT, AGAIN, THIS WAS SOMETHING THAT WAS A PART OF THE JOINT PROPOSAL THAT, UH, ERCOT AND THE IMM, UH, HAD CRAFTED, UH, THAT DID, UH, DID HIGHLIGHT THE REDUCTION OF THE NONS SPIND DURATION. 
          UH, BUT I DO WANT TO NOTE THAT, UH, WHAT WE, WHILE WE DID INDICATE THE DURATION, UH, WAS SOMETHING THAT WE FELT COULD GO TO TWO HOURS. 
          UH, THERE WAS STILL NEEDS FOR A STUDY TO DETERMINE WHAT THE REQUIREMENT, UH, WOULD BE FOR NONS SPIN AS, AS ASSOCIATED WITH THAT, THAT PARTICULAR POINT. 
          SO THOSE WERE THE, THE THREE POINTS OF, OF CONTENTION, UH, ALONG WITH THIS, UH, NPRR. 
          UH, BUT I'M HAPPY TO ANSWER ANY QUESTIONS THAT FOLKS MAY HAVE. 
          DOES BOARD HAVE ANY QUESTIONS FOR KEITH? ALRIGHT. 
          UH OH, COURTNEY, I'M SORRY. 
          YEAH, THIS IS KEITH AND CAITLIN, MAYBE JUST DEPENDING, UM, FIRST I CAN YOU WALK THROUGH WHY WE'RE IN A PROTOCOL ON DRRS AND WE'RE LOOKING AT NONS SPIN, A TOTALLY DIFFERENT ANCILLARY SERVICE. 
          LIKE I'M CONFUSED WHY THOSE TWO ARE ACTUALLY BEING COMMINGLED. 
          AND THEN YESTERDAY, UM, WE HAD A BIG DISCUSSION ON THE PCR AND HOW THAT NUMBER AND USING THAT IS REALLY SOMETHING WE NEED TO LOOK AT BECAUSE OF BATTERY STATE OF CHARGE. 
          UM, AND, AND SO WITH THAT BEING WHAT WE'RE THINKING ABOUT, AND WITH THAT BEING WHAT WE'RE SEEING IN THE MARKET, WHY WOULD WE BE LOOKING AT CHANGING NONS SPEND FROM FOUR HOUR TO TWO HOUR? OKAY. 
          UM, SO THE, THE QUESTION IS, WELL, WHY, WHY HAS NONS BEEN A PART OF THIS? AND, AND THE BIG REASON FOR THAT HAS TO DO WITH THE FACT THAT THE DRS DURATION IS FOUR HOURS. 
          AND THERE WAS SOME OVERLAP BETWEEN WHAT NONS SPEND TODAY IS DOING AT FOUR HOURS. 
          AND IF YOU WERE TO IMPLEMENT A DRS WITH A FOUR HOUR DURATION, IS THERE POTENTIAL DOUBLE COUNTING, UH, OF THE NONS SPIN, WHAT THAT'S TRYING TO DO AND, AND WHAT, UM, WHAT DRS IS TRYING TO DO? AND, AND THE REALITY IS THERE IS SOME OVERLAP. 
          IT IS NOT A PERFECT OVERLAP. 
          UH, AND SO, UH, THE, THE, THE FEELING WAS THAT FOR A REQUIREMENT, UH, OF DRS AT FOUR HOURS, YOU COULD COVER SOME OF THE CONCERN WITH THE DRS PRODUCT FOR THE FOUR HOUR DURATION. 
          UH, AND THEN THE NONS SPEND DURATION BEING AT A LOWER, UH, DURATION, UH, WOULD COVER THE REMAINING CONCERNS. 
          UH, UH, BUT, BUT STILL THE REQUIREMENT WOULD NEED TO BE DETERMINED. 
          BUT THE, THE DURATION COULD OPERATE AT THAT TWO HOURS WITH THE, THE DURATION OF DRS AT THE FOUR HOURS. 
          SO HOPEFULLY THAT GIVES YOU A SENSE AS TO WHY THIS WAS, WAS DISCUSSED. 
          IT DOES, BUT IF YOU CAN ALSO TALK ABOUT YESTERDAY WHEN WE TALKED ABOUT PRS AND THE STATE OF CHARGE, AND THAT BEING EVEN MORE OF A CONCERN, AGAIN, IT SEEMS WE WOULDN'T WANT TO HAVE SHORTER DURATION OF, OF AN ANCILLARY SERVICE BECAUSE WE'RE WORRIED ABOUT NOT HAVING ENOUGH OF A CERTAIN STATE OF CHARGE. 
          AND, AND I THINK THERE'S, UM, A AGAIN, I THINK THAT THERE, THERE, TO THE EXTENT THAT THERE'S SOME OVERLAP IN TERMS OF WHAT THE DRS WOULD COVER TO THE EXTENT THAT THE NONS SPIND DURATION, EVEN AT THE SHORTER PERIOD, UM, YOU CAN COVER WITH REQUIREMENT, NOT NECESSARILY DURATION. 
          SO, SO AGAIN, THERE'S DIFFERENT WAYS TO SLICE THIS UP, UH, BUT I THINK ERCOT DID FEEL COMFORTABLE THAT YOU COULD COVER THE NEEDS WITH THE DRS AT FOUR HOURS. 
          AND AS WE DO OUR STUDY, UM, DETERMINE WHAT TYPE OF REQUIREMENT WOULD COME OUT OF, UH, UH, WHAT KIND OF REQUIREMENT FOR NONS SPIND AND WHAT KIND OF REQUIREMENT FOR THE DRS COULD COVER THE REMAINDER OF THE NEEDS. 
          OKAY. 
          ANY OTHER QUESTIONS? OKAY. 
          UH, FOR THE BOARD'S KNOWLEDGE, THE BOARD DIDN'T RECEIVE ANY REQUESTS FOR COMMENT IN PERSON UNDER THIS AGENDA ITEM. 
          SO AS A REMINDER, UH, DOGAR, UH, 2 83 IS A BOARD PRIORITY REVISION REQUEST. 
          IF THERE'S NO FURTHER DISCUSSION, I'LL ENTERTAIN A MOTION TO ADOPT NPR 1309 AND NO. 
          2 83. 
          THANKS, JOHN SECOND BY KATHLEEN. 
          ALL IN FAVOR? AYE. 
          AYE. 
          ANY OPPOSED? ANY ABSTENTIONS? OKAY. 
          THOSE ARE ADOPTED. 
          MOVE ON TO THE NEXT AGENDA ITEM, WHICH IS AGENDA ITEM 
          [15.1.3 NPRR1315, Changes to Process of Evaluating the Potential Needs for Additional Capacity and Mitigated Offer Cap]
15.1, 0.3 NPR 1315 CHANGES TO THE PROCESS OF EVALUATING THE POTENTIAL NEEDS FOR ADDITIONAL CAPACITY AND MITIGATED OFFER CAP. 
          UH, CAITLIN, PLEASE, UH, GIVE US YOUR UPDATE ON THIS. 
          OKAY. 
          UM, 1315 IS WHAT WE'VE BEEN CALLING CONTRACTS FOR CAPACITY. 
          UH, KEITH WILL GO THROUGH THIS, OR ERCOT HAS, HAS REALLY GOOD INFORMATION ON THIS. 
          UM, IN THE PAST, THEY HAVE ISSUED FOUR CONTRACTS FOR CAPACITY SINCE THE FALL OF 2023. 
          UM, THESE HAVE NOT BEEN ABLE TO PROCURE ANY CAPACITY. 
          YOU 
          [02:05:01]
KNOW, THE, THE RFPS HAVE BEEN SORT OF A SHOCK TO THE SYSTEM FOR STAKEHOLDERS. 
          PRETTY UNUSUAL WHEN WE FIRST SAW ONE IN, IN 2023, AND THEY COULD ONLY BE ISSUED, UH, THE SEASON AHEAD. 
          SO IT'S A SHORT TIMEFRAME TO RESPOND AND THEN A SHORT CONTRACT. 
          SO IT'S NOT, YOU KNOW, LIKE A NORMAL PPAA GENERATOR WOULD DO. 
          UM, SO ERCOT SOUGHT TO CODIFY THIS AUTHORITY AND KIND OF EXTEND THE LENGTH, UM, THAT THEY COULD LOOK OUT TO HAVE A CONTRACT, UM, YOU KNOW, FOR CERTAIN AREAS OF THE GRID. 
          THIS IS A, A TOOL IN THE TOOLBOX THAT OUR CUT NEEDS. 
          SO MAKING SURE THE PROCESS, UH, FOR PROCUREMENT IS NARROW AND TRANSPARENT IS REALLY THE GOAL FOR STAKEHOLDERS HERE. 
          UM, AS I SAID, NPR 1315 CODIFIED THE PROCESS, EXPANDED THE TIMEFRAME. 
          OUR CUT COULD LOOK AHEAD AND SAY THEY NEED CONTRACTS FOR UP TO TWO YEARS, CLARIFIES SETTLEMENTS, UH, SPECIFIES THAT WE'RE LOOKING AT LOCAL OR REGIONAL CONSTRAINT ISSUES. 
          REVISES THE MITIGATED OFFER CAP FOR THESE ISSUES. 
          UH, WE DID VOTE TO RECOMMEND APPROVAL OF 1315. 
          WE HAD A ROBUST DISCUSSION AT TECH MOSTLY AROUND DOING THIS REGIONAL VERSUS FOR SYSTEM-WIDE CAPACITY AND MAKING SURE THE LANGUAGE WAS CONSISTENT. 
          THERE WAS A LOT OF ROBUST DISCUSSION LEADING UP TO TAC I THINK A COUPLE OF DEDICATED WORKSHOPS. 
          AND I THINK THIS ONE WAS A, A GOOD EXAMPLE OF COLLABORATION WITH ERCOT. 
          AS I SAID, YOU KNOW, SORT OF THE, THE KNEE JERK REACTION WAS KIND OF NO WAY. 
          CONTRACTS FOR CAPACITY IS, IS NOT WHAT WE DO. 
          THIS IS A MARKET WHERE GENERATORS RISK THEIR OWN INVESTMENT, AND THAT'S HOW WE ULTIMATELY GET RELIABILITY. 
          AND WE SHOULDN'T HAVE CONTRACTS AND PRICES THAT INTERFERE WITH THAT. 
          BUT, YOU KNOW, WE HAVE SITUATIONS WITH THE FAST PACED LOAD GROWTH AND, AND ERCOT NEEDS THE, THE RELIABILITY TOOL FOR THAT. 
          SO KEITH AND HIS TEAM DID A REALLY GOOD JOB OF, OF WORKING WITH STAKEHOLDERS TO NARROW THIS AND ALSO TO LOOK AT PRICE FORMATION IN A WAY THAT HOPEFULLY PRICES COULD TELL US ABOUT THESE SITUATIONS IN ADVANCE. 
          AND THEN DURING AS WELL, UM, WE HAD JUST ONE OPPOSING VOTE. 
          WE HAD FIVE ABSTENTIONS. 
          WE HAD ONE PERSON WHO SAID, I HATE THIS, BUT YES. 
          UM, SO, YOU KNOW, I THINK IT'S JUST SOMETHING WHERE WE HAD TO COLLABORATE WITH OUR CO AND I THINK IT, IT WAS A GOOD RESULT. 
          THE OPPOSING VOTE WAS REALLY ABOUT WANTING MORE CHECKS AND BALANCES TO PREVENT THE OVERUSE OF CONTRACTS FOR CAPACITY. 
          UM, THE CONTRACTS WOULD GET PUC APPROVAL ON, I BELIEVE, BOARD APPROVAL BEFORE BEING ENTERED, ENTERED INTO, BUT THEY WANTED TO SEE MORE EX ANDANTE APPROVAL, UM, USE OF THE SAME CONSISTENT LOAD FORECASTS, THAT KIND OF THING. 
          AND THEN ALSO A LOT OF DISCUSSION ABOUT PRICE FORMATION. 
          UM, A DISCRETE ISSUE ABOUT INCLUDING THE CONTRACT FOR CAPACITY AND THE, THE PRICE ADDERS. 
          AND I BELIEVE THAT'LL BE ADDRESSED IN A, A SUBSEQUENT NPRR OR CURRENT NPRR. 
          THAT REMINDS ME OF MY DAYS IN CONGRESS. 
          I HATE THIS, BUT YES,  OKAY. 
          IT WAS, IT WAS VERY GOOD VOTE OR SPEAKER FLOW CONTROL, I THINK THE IMM OBJECT, I HAD, UH, UH, CONCERNS ABOUT THIS ONE. 
          SO JEFF, IF YOU'D LIKE TO COMMENT, UH, HEAD TOWARD THE, THE PODIUM AND WE'LL GET YOU QUEUED UP HERE IN A SECOND. 
          ANY QUESTIONS FOR KAITLYN ON THIS? IT'LL TAKE THE WHOLE TIME TO GET THE PODIUM TALL ENOUGH FOR JEFF. 
          OKAY. 
          UH, KEITH COLLINS 
          [15.1.3.1 ERCOT Comments on NPRR1315]
IS GONNA PRESENT, UH, COMMENTS AND THEN JEFF WILL, WILL KEY YOU UP AFTER THAT. 
          OKAY. 
          UM, NOT TO, TO RADIATE, UH, I'LL JUST COVER SOME POINTS. 
          I KNOW KAITLYN, UM, MA MADE SOME, SOME GOOD POINTS HERE. 
          BUT, UH, THE FIRST THING IS THAT THIS PROCESS, UH, HAS BEEN SOMETHING THAT WE STUDIED AND EVALUATED BASED ON WHAT WE HAD SEEN COME OUT OF PREVIOUS, UH, MRA AND CONTRACT FOR CAPACITY PR PRACTICES. 
          AND WHAT WE FOUND WAS, AS PART OF THE LESSONS LEARNED, THAT PARTICULARLY THE, THE TIMING OF OF THIS IS, IS A BIT OF A CHALLENGE. 
          AND SO IT WAS IMPORTANT TO RECONSIDER SOME THINGS IN ORDER TO MAKE IT MORE EFFECTIVE. 
          SO IT WAS, THERE WERE EXISTING PROCESSES TO SOME EXTENT, AND HOW CAN WE MAKE THOSE PROCESSES BETTER? AND SO THERE THERE WAS A LOT OF DISCUSSION AND COLLABORATION THROUGHOUT THE STAKEHOLDER PROCESS. 
          UH, WHAT WHAT STARTED, UH, WAS, WAS CHANGED AND MODIFIED AND ADD ADDED TO. 
          AND, UH, WE WILL BE, UH, WORKING ON A SUBSEQUENT NPR 1214, UH, THAT WILL HOPEFULLY ADDRESS SOME OF THE PROBLEMS AND ISSUES THAT WERE, WERE IDENTIFIED IN THIS PROCESS, UH, BUT NOT CAPTURED EXPLICITLY IN 1315. 
          UH, 
          [02:10:01]
SO THERE WERE SEVERAL MODIFICATIONS, UH, THAT ARE COMING OUT OF NPR 1315, UH, NOTATION REQUIREMENTS, EXTENDING THE HORIZON, UH, REVISIONS TO THE MOD, UH, MITIGATED OFFER CAP. 
          SO THERE WAS A SERIES OF THINGS THAT WERE DONE TO HELP, UH, MAKE SOME IMPROVEMENTS, UH, IN, IN THE PROCESSES AS WE MOVE FORWARD. 
          UH, THE BENEFITS AS, AS, AS, AS CAITLIN NOTED AS, AND I ALLUDED TO, IS PARTICULARLY GIVING IT MORE RUNWAY. 
          UH, IT'S, IT'S HARD WHEN, WHEN WE LOOK OUT ONE SEASON AND THE PROCESS DOESN'T ALLOW FOR MUCH, MUCH TURNAROUND TIME. 
          AND SO IT WAS, IT WAS A CLASSIC EXAMPLE OF, UH, THE PROCESS WAS, WAS, WAS SUCH THAT IT WOULD, UH, ESSENTIALLY BE DESIGNED TO NOT, UH, PROMOTE ANY, ANY RESOURCES IN THESE PROCESSES. 
          AND SO, UH, BY GIVING US MORE TIME, WE THINK IT'LL BE MORE SUCCESSFUL. 
          UH, AND, AND SOME OF THE CHANGES WILL MINIMIZE SOME OF THE DISTORTIONS THAT, THAT WE SEE THAT THAT COULD OCCUR WITHOUT, WITHOUT THE CHANGE. 
          UH, AS, AS CAITLIN NOTED, IT WAS, UH, IT WASN'T UNANIMOUS AS, AS YOU KNOW, UH, THE I MEMO WILL HAVE, UH, HAVE SOME COMMENTS HERE. 
          BUT I DO WANT TO STRESS THAT THIS WAS, I THINK, A REALLY GOOD EXAMPLE OF, OF, UH, AGAIN, YOU KNOW, THERE, THERE MAY BE SOME DISDAIN IN THE PROCESS, BUT THERE WAS A LOT OF DISCUSSION AND COLLABORATION THAT WENT ALONG WITH TRYING TO MAKE SOMETHING, UH, WORK, UH, AND WORKABLE. 
          AND, AND I THINK WE FOUND SOMETHING THAT WORKED FOR US AND FOR THE STAKEHOLDERS. 
          AND, UH, IF IT'S SOMETHING THAT MOVES FORWARD AS SOMETHING THAT IS, IS LIKELY TO BE USED AS PART OF, OF, OF THE FAR WEST, UH, SHOULD, SHOULD IT BE DEEMED APPROPRIATE? UH, SO, UM, THAT'S THE END OF MY COMMENTS, UH, AND HAPPY TO TAKE ANY QUESTIONS. 
          OKAY. 
          ANY QUESTIONS FOR KEITH? ALRIGHT, THANKS, KEITH. 
          THE BOARD DIDN'T REQUEST FOR ANY IN-PERSON COMMENTS UNDER THIS AGENDA ITEM. 
          UH, WE'VE NOTED THAT THE INDEPENDENT MARKET MONITOR OPPOSED NPR 1315 DURING THE STAKEHOLDER PROCESS. 
          AND JEFF, WOULD YOU SPEND A COUPLE OF MINUTES, A COUPLE OF MINUTES, THREE MINUTES OKAY. 
          TO, TO SHARE YOUR PERSPECTIVES? YEAH, THANK YOU. 
          UH, AND I, I, I WOULD LIKE TO COMMEND, UH, ERCO AND THE STAKEHOLDERS IN THE PROCESS FOR, I, I AGREE WITH KEITH. 
          THERE WERE IMPROVEMENTS THAT WERE MADE DURING THE PROCESS, AND IT'S ALWAYS NICE TO SEE THAT HAPPEN, UM, IN THE, AT THE END OF THE DAY. 
          SO I RECOGNIZE THAT FOR LOCAL AREAS, IT IS, IT, IT CAN BE A CIRCUMSTANCE WHERE A CONTRACTED CAPACITY IS NECESSARY IN ORDER TO, UH, PRESERVE RELIABILITY. 
          THE, THE, THE MAIN, UM, I GUESS DISPUTE THAT WE HAD WITH WHERE THIS LANDED WAS WITH THE, THE SYSTEM LEVEL, YOU KNOW, BEING ABLE TO CONTRACT AT A SYSTEM LEVEL FOR ANTICIPATED EMERGENCIES. 
          AND THIS FOLDS BACK INTO, YOU KNOW, WHAT I'VE BEEN DISCUSSING FOR QUITE A WHILE, WHICH IS ERCOT SYSTEM NEEDS TO HAVE, UM, NEEDS TO EXPERIENCE RELATIVE SHORTAGES IN ORDER TO GET PRICES HIGHER, IN ORDER TO INCENT NEW INVESTMENT. 
          IF YOU GO OUT AND FRONT RUN THAT FROM HAPPENING, UH, SO THAT YOUR CONTRACTING, UH, AHEAD OF, UH, THE SHORTAGES, UM, RESULTING IN HIGHER IN-MARKET REVENUES AND INCENTING NEW GENERATION, THEN YOU'VE, YOU'VE DISTURBED THAT PROCESS. 
          YOU, YOU NOT ONLY DISTURBED PRICE FORMATION, BUT YOU ALSO, UM, SUPPRESSED THE, THE INCENTIVE PROCESS FOR NEW GENERATION. 
          AND SO THE ISSUE THAT WE REALLY HAD WAS THAT THERE WASN'T, IN OUR VIEW, ENOUGH SPECIFICITY AROUND WHAT WOULD CONSTITUTE AN EMERGENCY CIRCUMSTANCE, UH, IN ORDER FOR FORWARD PROCUREMENT FOR SYSTEM LEVEL EMERGENCIES TO TAKE PLACE. 
          I'M HOPING THAT AS SUBSEQUENT PROCESSES, UH, EVOLVE THAT WE'LL BE ABLE TO GET THAT, UH, TO BE MORE SPECIFIC, BECAUSE I WOULD LIKE TO MAKE SURE THAT THOSE, THOSE ASSESSMENTS, UM, DO ALLOW FOR ENOUGH INCREASE IN REVENUE THAT THE TEXAS MARKET MODEL CAN WORK. 
          AND THANK YOU. 
          THANK YOU, JEFF. 
          UH, WOODY, DID YOU, JEFF, DON'T LEAVE. 
          HEY, JEFF, DON'T LEAVE. 
          . 
          YOU, YOU GET ANOTHER MINUTE. 
          QUICK, QUICK QUESTION. 
          UM, IF WE WERE TO USE THIS TOOL AND WE RESETTLE THE MARKET, WOULD THAT TAKE CARE OF THE PROBLEM? I MEAN, IF YOU RERUN THE MARKET AS IF THIS GENERATION WASN'T THERE, WOULDN'T YOU STILL GET THE PRICES THAT YOU, THAT THE, THAT YOU NEED AS A SIGNAL? SO THAT'S, THAT'S AN INTERESTING, I THINK THERE'S TWO COMPONENTS TO THAT. 
          ONE IS IF YOU'RE FORWARD CONTRACTING, UH, YOU'D HAVE TO RERUN IT PERSISTENTLY. 
          UM, AND SO THAT WOULDN'T BE IT, YOU KNOW, BECAUSE OF A, OF A, OF A RUCK OR, YOU KNOW, AN FFSS CALL, THAT WOULD BE JUST A, YOU, YOU WOULD BE BASICALLY RUNNING TWO MARKETS PERSISTENTLY FOR THE DURATION OF THESE CONTRACTS. 
          SO WHAT WHAT THAT DOES IS IT WOULD KIND OF CREATE TWO DIFFERENT PRICES. 
          IT ALSO, I, AND I, I, I THINK THIS IS A REASONABLE ASSERTION IS FROM A DEVELOPER PERSPECTIVE, I'M, I'M, YOU KNOW, I HAVEN'T DEVELOPED YET. 
          I'M LOOKING FOR PRICE SIGNALS. 
          I SEE THAT YOU'RE RERUNNING IN ORDER TO GET THOSE PRICE SIGNALS 
          [02:15:01]
IN THERE. 
          BUT I'M WONDERING WHEN IS THAT GONNA END? BECAUSE WE NOW HAVE TWO DIFFERENT MARKETS. 
          WE'VE GOT THIS LOWER PRICED MARKET, AND WE'RE, AND, AND TEXAS CONSUMERS ARE PAYING FOR THE CONTRACTED ENERGY. 
          AND I'VE GOT THIS HIGHER PRICED MARKET THAT COMES OUT OF A SIMULATION, AND I CAN SEE THOSE, IT'S PROVIDING A SIGNAL, BUT WHEN, WHEN IS THAT GONNA END? WHEN IS THAT, YOU KNOW, IS IT THREE OR FOUR OR FIVE CONTRACTS BEFORE IT'S DETERMINED THAT THAT'S JUST TOO MUCH FOR, YOU KNOW, THAT'S TOO MUCH. 
          IF WE'RE ALREADY PAYING FOR, UH, THE GENERATION, IT'S JUST TOO MUCH TO PUT ON CONSUMERS TO PAY FOR THAT AND THEN ALSO PAY THE HIGHER PRICE. 
          I, I THINK HAVING, I THINK ALLOWING THE PRICE TO COME UP, AND AGAIN, IT REALLY COMES DOWN TO WHAT YOU, WHAT WOULD CONSTITUTE AN EMERGENCY FOR YOU IF, YOU KNOW, I WOULD IMAGINE AT A SYSTEM LEVEL, ANY REASONABLE DETERMINATION OF AN EMERGENCY CIRCUMSTANCE THAT WOULD TRIGGER THIS TYPE OF CAPACITY CONTRACTING, YOU COULD EASILY DEMONSTRATE THAT IT WOULD BE A VERY HIGH PRICE. 
          UH, IN THAT SCENARIO. 
          IT WOULD PRODUCE A VERY HIGH, MAYBE NOT ALL THE TIME, OBVIOUSLY, BUT HIGH ENOUGH DURING PEAK PERIODS. 
          SO I, SO I THINK FROM, FROM A INVESTMENT SIGNAL PERSPECTIVE, HAVING ONE MARKET, ONE PRICE IS BETTER. 
          I UNDERSTAND AT SOME POINT, RELIABILITY TAKES OVER. 
          I'M, I'M JUST HOPING ENOUGH SPECIFICITY CAN BE PROVIDED THAT, THAT WE CAN DETERMINE THAT THAT'S AT A VERY HIGH LEVEL. 
          OKAY. 
          ANY OTHER QUESTIONS FOR JILL? I HATE TO DO, BUT I NEEDED THAT. 
          A QUICK QUESTION. 
          HOPEFULLY YOU CAN GIMME A QUICK RESPONSE. 
          YOU SAID AT THE BEGINNING, I THINK, UM, AT THE BEGINNING THAT THE ERCOT MARKET NEEDS TO EXPERIENCE RELATIVE SHORTAGES. 
          MM-HMM . 
          WHAT IS THE MEANING OF RELATIVE THERE? ARE YOU USED JUST SAYING, WE NEED TO EXPERIENCE SHORTAGES? YES. 
          UH, THAT'S A GOOD QUESTION. 
          SO I WAS ASKED A QUESTION IN THE FALL, UM, IF I WAS, IF I WAS IMPLYING THAT THE LIGHTS NEED TO GO OUT IN, IN TERMS OF, IN, YOU KNOW, IN ORDER FOR THE MARKET TO FUNCTION. 
          AND SO I START USING THE TERM RELATIVE SHORTAGE, BECAUSE THAT WASN'T AT ALL WHAT I WAS IMPLYING. 
          I WAS JUST IMPLYING THAT THE ERCOT SYSTEM NEEDS TO EXPERIENCE MORE TIGHTNESS AND SOME SHORTAGE IN ITS RESERVE CAPACITY THAT'S AVAILABLE IN ORDER TO TRIGGER HIGHER PRICES IN THE SHORTAGE PRICING MECHANISM. 
          THE, THE, THEY CALL 'EM THE, AS SDCS, THEY, UH, AND SO WE SERVICE DEMAND CURVES. 
          AND SO RELATIVE SHORTAGE MIGHT MEAN I HAVE 10% LESS RESERVES THAN I NEED, OR 15% LESS RESERVES THAN I NEED FOR A PERIOD OF HOURS DURING CERTAIN PERIODS DURING THE YEAR. 
          OKAY. 
          THANK YOU, JEFF. 
          THANK YOU. 
          I THINK WE'VE HAD A PRETTY ROBUST DISCUSSION ON THIS ONE. 
          IF THERE'S NO FURTHER DISCUSSION, I'LL ENTERTAIN A MOTION TO ADOPT NPR 1315. 
          SO MOVED. 
          THANK YOU, PEGGY. 
          SECOND. 
          SECOND FROM CHRIS. 
          ALL IN FAVOR? AYE. 
          ANY OPPOSED? ANY ABSTENTIONS? OKAY. 
          1315 HAS BEEN ADOPTED. 
          UH, NOW FOR 
          [Items 15.1.4.1 & 15.1.4.2]
THE BIG ENCHILADA, UH, CAITLYN, PLEASE PROCEED WITH THE GEN ITEM 15.14, THE BATCH ZERO PROCESS FOR LARGE LOAD INTERCONNECTIONS. 
          THIS IS NPR 1325 AND A BIGGER 1 45. 
          OKAY. 
          IT IS THE BIG ENCHILADA. 
          I, THIS IS SO IMPORTANT THAT OUR FORMER TAX CHAIR, CLIFF IS LISTENING. 
          SO HELLO TO CLIFF. 
          UM, BUT AGAIN, THIS ONE WAS UNOPPOSED. 
          UM, SO THANK YOU TO ERCOT AND STAKEHOLDERS, AND ESPECIALLY MARTHA HENSON. 
          UH, THIS TOOK A LOT OF WORK AND I THINK THE OUTCOME WAS, UH, PRETTY PHENOMENAL. 
          WE DID HAVE ONE OF ABSTENTION, UM, AND THEN THE NPRR RELATED TO IT WAS UNANIMOUS. 
          SO EVEN BETTER, NO, UH, NO ABSTENTIONS AND NO NOS. 
          UM, THAT'S 1325, UH, QUICKLY, 1325 DEFINES ESSENTIAL TERMINOLOGY RELATED TO TRANSITIONAL LARGE LOAD INTERCONNECTION PROCESS, THE BATCH ZERO PROCESS AND MODIFIES THE RPG PROCEDURES. 
          SO GOING BACK TO PIGGER 1 45, UM, THERE IS A LOT IN THIS. 
          ERCOT HAS AN EXTENSIVE PRESENTATION ON ALL THE THINGS INCLUDED IN THIS PIGGER. 
          SO I DON'T THINK I'LL GO THROUGH THESE. 
          AS PABLO SAID EARLIER, UM, A LOT OF THE TIME WAS SPENT ON THE ELIGIBILITY FRAMEWORK. 
          UM, SO, YOU KNOW, WITHIN ALL LOAD REQUESTS, WE WERE CREATING THREE CATEGORIES. 
          SO BASE LOAD FOR BATCH ZERO, THOSE ARE LOADS THAT DON'T NEED TO BE RESTUDIED AND, AND GET THE FULL ALLOCATION OF THEIR REQUEST. 
          AND THEN TWO STUDY LOAD FOR BATCH ZEROS, THAT WAS, WE WILL GET SOME ALLOCATION AND THEN LOADS THAT ARE NOT INCLUDED IS THE THIRD GROUP. 
          SO I WOULD SAY, YOU KNOW, THAT ADDED A SORT OF UNUSUAL ASPECT TO THIS, THAT WE WERE TRYING TO DEVELOP POLICY AND A SITUATION WHERE THERE ARE IMMEDIATE WINNERS AND LOSERS. 
          SO THERE ARE A LOT OF FAIRNESS QUESTIONS RAISED AS WELL AS POLICY QUESTIONS IN THE PROCESS. 
          AND SO IT'S SORT OF DIFFICULT TO 
          [02:20:01]
DETERMINE WHEN, YOU KNOW, WE JUST HAVE TO MOVE ON AND, AND MAKE THE BEST POLICY WE CAN. 
          UM, BUT AS YOU KNOW, WE SPEND AN EXTRAORDINARY AMOUNT OF TIME IN THE STAKEHOLDER PROCESS ON THIS REVISION REQUEST. 
          ERCOT HAD, UM, MANY WORKSHOPS, AND THEN BY DESIGN WE HAD THE PICKER 1 45 AT SEVERAL MEETINGS FOR EACH VOTING STAKEHOLDER BODIES. 
          SO AT PRS AND AT ROSS AND AT TAC MULTIPLE TIMES. 
          AND, AND AGAIN, YOU KNOW, THANK YOU TO ERCOT AND MARTHA AND, UH, COMMISSION STAFF FOR THEIR COORDINATION ON THIS. 
          BETWEEN THE, THE LAST TWO TAC MEETINGS WHERE WE CONSIDERED THIS, WE HAD, UH, ABOUT 15 NEW SETS OF COMMENTS FROM ERCOT AND FROM STAKEHOLDERS. 
          UM, AND THE, YOU KNOW, THE ALERT IS THAT PIGGER 1 45 HAS PASSED THE RECORD FOR FILED DOCUMENTS AND A REVISION REQUEST THAT WAS PREVIOUSLY HELD BY NOER 2 45. 
          SO WE PASSED A RECORD. 
          UM, AND I THINK THAT'S, YOU KNOW, GREAT, BUT I'M NOT GONNA WORK ON ANY MORE REVISION REQUESTS THAT END IN 45, UM, . 
          BUT AT THE, THE LAST MEETING, WE DIS WE DISCUSSED SEVERAL ISSUES. 
          UM, ONE WAS REGARDING INCLUSION OF PROJECTS THAT HAD BEEN PROCESSED IN CERTAIN RPG PROJECTS INSTEAD OF THROUGH THE INDIVIDUAL LLIS. 
          UM, THERE IS AN ISSUE REGARDING THE STUDY DATE BY WHICH A PROJECT COULD SUBMIT STUDIES AND HAVE IT GUARANTEED TO BE REVIEWED BY ERCOT. 
          UM, THERE IS AN ISSUE AROUND PROJECTS THAT WOULD BE, UH, NET METERED WITH EXISTING GENERATION. 
          THERE WERE STILL QUITE A FEW CONCERNS ABOUT SPECIFIC CRITERIA TO SHOW PROJECT MATURITY AS WELL AS THE FEES. 
          AND THEN I WOULD SAY A, A RECURRING THEME THAT WE'LL CONTINUE TO HEAR ABOUT. 
          UM, IT WAS AROUND THE, THE TREATMENT AND SET UP FOR, UH, PROJECTS THAT BRING THEIR OWN GENERATION OR OUR CLRS AND SHOULD THEY HAVE, YOU KNOW, FAST PASS OR, OR DIFFERENT TREATMENT FOR GETTING ALLOCATED, UM, RATHER THAN A LOAD THAT NEEDS ALWAYS COMPLETE FIRM SERVICE. 
          SO THOSE ARE THINGS I THINK YOU'LL CONTINUE TO HEAR ABOUT, AND YOU'RE GONNA HEAR MORE FROM ICA AND I BELIEVE ONE STAKEHOLDER RIGHT NOW. 
          SO I'M DONE. 
          BUT I'M HAPPY TO ANSWER ANY QUESTIONS. 
          OKAY. 
          ANY QUESTIONS FOR KAILYN? DON'T GO TOO FAR. 
          WE MAY NEED YOU BACK, SO THANK YOU. 
          ALL RIGHT. 
          ALRIGHT, UH, WE'RE 
          [15.1.4.3 ERCOT Comments on NPRR1325 and PGRR145]
GONNA ASK JEFF BEO TO COME AND PRESENT ERCOT COMMENTS ON NPR 1325 AND P 1 45. 
          UH, SO BEFORE I GET INTO THE DETAILS ON P 1 45, I JUST WANTED TO TAKE A MOMENT TO APPRECIATE HOW WE GOT TO WHERE WE'RE AT TODAY. 
          AND I THINK PABLO DID A GOOD JOB EARLIER OF, UH, GIVING, UM, UH, ACCOMMODATIONS TO, TO, UH, THOSE WHO HELPED GET US HERE. 
          UH, I, I DID WANT TO HIGHLIGHT A FEW SPECIFIC CALL OUTS. 
          UH, FIRST, UH, AT THE FEBRUARY 6TH OPEN MEETING, CHAIRMAN GLEASON GAVE US THE GOAL OF BEING HERE AT THE JUNE BOARD MEETING WITH REVISION REQUESTS. 
          AND THAT WAS SORT OF OUR, UH, PUT A MAN ON THE MOON BY THE END OF THE DECADE MOMENT. 
          UH, AND WE RALLIED, UH, IN INTERNALLY, UH, MATT MARINAS LED AN EFFORT TO REALLY GATHER, UH, AND PUT TOGETHER A PLAN OF STAKEHOLDER ENGAGEMENT. 
          UM, AND I WANT TO CALL OUT, UH, CAITLIN AND, UH, MARTHA HENSON TECH LEADERSHIP WHO, YOU KNOW, HELPED SUPPORT THAT, THAT STAKEHOLDER ENGAGEMENT PLAN. 
          UH, AND SO WE, WE, YOU KNOW, OBVIOUSLY HAD A LOT OF, UH, ENGAGEMENT WITH STAKEHOLDERS WHERE THEY WERE REALLY, UH, PLUGGED INTO THIS. 
          AND WE GOT A LOT OF GOOD FEEDBACK, AS CAITLIN MENTIONED, UH, RECORD NUMBER OF FILINGS ON THE PICKER. 
          UH, AND THAT REALLY HELPED US TO SHARPEN THE, UH, REVISION REQUEST AS WE WENT ALONG. 
          UM, I ALSO WANT TO SPEC, SPECIFICALLY CALL OUT, UH, AG SPRINGER, CHRISTINA SWITZER AND EVAN ROW. 
          UH, PABLO MENTIONED THAT WE HAD FOLKS WHO WORKED, UH, VERY LATE NIGHTS AND WEEKENDS, UH, TO MAKE THIS HAPPEN. 
          AND, AND SO WE COULD HAVE MET THAT GOAL BY JUST SLAPPING SOMETHING TOGETHER AND, AND, YOU KNOW, GETTING IT HERE. 
          UH, BUT THOSE THREE INDIVIDUALS IN PARTICULAR, UH, THEY, UH, WE DID NOT ASK THEM TO WORK THOSE KINDS OF HOURS. 
          UH, WE DON'T EXPECT OUR EMPLOYEES TO DO THAT, BUT THEY DID ANYWAY BECAUSE THEY WANTED TO MAKE SURE THAT WHAT WE BROUGHT WAS QUALITY. 
          UH, AND, AND SO I WANT TO, UH, THANK THEM FOR THAT. 
          UM, AND, AND THEN, UH, ALSO, YOU KNOW, THE, THE, UH, AND PABLO HAD A, A SLIDE WITH THE, UH, DID 28 OR OR 30 PEOPLE WHO WERE INVOLVED, BUT THAT THIS WAS NOT JUST THOSE INDIVIDUALS. 
          THIS WAS REALLY ACROSS THE COMPANY, UH, THAT REALLY EVERYBODY WAS ALIGNED ON KNOWING THAT THIS WAS IMPORTANT AND MAKING SURE THAT WE GOT HERE. 
          AND, AND SO JUST A, A COUPLE OF EXAMPLES IS WHEN I HAVE, UH, MATERIALS THAT I HAVE TO SUBMIT FOR THE BOARD, UH, KIM AND, AND PENNY WERE GRACIOUS 
          [02:25:01]
IN LETTING ME MISS MY DEADLINES AND, AND, AND GET THOSE IN LATE. 
          UH, WHEN I ASKED, UH, ONE OF MY TEAM ASKED JPS TEAM FOR, UH, VIRTUAL MACHINES BECAUSE WE WANTED TO START RUNNING PILOTS TO MAKE SURE THAT WHAT WE HAD WRITTEN DOWN, WE COULD ACTUALLY, UH, UH, PRODUCE THOSE RESULTS. 
          WE, WE COULD RUN THOSE ENGINEERING SITES. 
          SO WE STARTED RUNNING ENGINEERING PILOTS. 
          AND SO THEY STOOD UP IN A PROCESS THAT NORMALLY TAKES MONTHS. 
          THEY STOOD UP 10 VIRTUAL MACHINES IN A COUPLE OF WEEKS TO, TO ALLOW US TO DO THAT. 
          SO, UH, SO ANYWAY, SO, YOU KNOW, JUST WANTED TO THANK, UH, THOSE, UH, FOLKS AND, AND, UH, I THINK ONE OF OUR CORE VALUES AT ERCOT IS BETTER TOGETHER AND REALLY DEMONSTRATED THAT THROUGH THIS, UH, EFFORT. 
          UH, SO WITH THAT, I WANT TO, UH, YOU KNOW, GET INTO THE DETAILS AND REALLY RESTATE THE PROBLEM STATEMENT, UH, WHICH IS THAT OUR EXISTING PROCESS REALLY WAS NOT DESIGNED FOR THE VOLUME OF LARGE LOAD INTERCONNECTION REQUESTS THAT WE HAVE BEEN EXPERIENCING. 
          UH, AND, AND WE'VE SEEN THAT I, I'VE PRESENTED THIS SLIDE NUMEROUS TIMES, BUT IT, IT, IT IS REALLY THE ISSUE OF, WE, WE HAVE THESE, UH, UH, PROJECTS THAT ARE STUDIED INDIVIDUALLY AND THAT CREATES CERTAIN PROBLEMS WHEN WE'RE TRYING TO MAKE SURE THAT WE CAN SERVE ALL OF THIS LOAD RELIABLY, AND IT RE CAUSES US TO HAVE TO GO BACK AND DO A BUNCH OF RE STUDIES. 
          AND THAT HAS CREATED UNCERTAINTY FOR THE DEVELOPERS THAT ARE ALSO, UH, PROJECTS THAT JUST HAVE NOT BEEN ABLE TO, UH, GET THROUGH THAT PROCESS. 
          UM, AND, AND SO WE'RE, WE'RE HAVE THIS, UH, ISSUE WHERE WE NEED TO MOVE AWAY FROM THAT TO MORE OF A, A FACTUAL PROCESS. 
          CAN INTERRUPT FOR A MINUTE? YEAH, PLEASE. 
          WE'VE SEEN THIS A COUPLE OF TIMES. 
          DOES THE BOARD WANNA GO THROUGH IT AGAIN? IF YOU DO, I'M FINE, BUT PABLO AND CHAD, ARE YOU OKAY? WE COVERED OKAY. 
          I THINK WE'VE COVERED THIS, SO, OKAY. 
          OKAY. 
          I'M SO GO TO THE NEXT ONE. 
          OKAY, THANKS. 
          UH, AND, AND I, I THINK PABLO COVERED THIS REALLY WELL, SO I, I WON'T GO INTO DETAILS ON THE, UH, BUILDING BLOCKS THAT IS IN THE PIGGER. 
          UM, I DI DID WANNA TALK ABOUT THE ELIGIBILITY BECAUSE THAT IS THE ISSUE THAT, UH, REALLY BUBBLED UP A LOT DURING THE, UH, STAKEHOLDER PROCESS. 
          UH, AND, AND IF YOU THINK ABOUT, UH, ELIGIBILITY AS WE'VE DEFINED IN, IN RE 1 45 THERE, THERE'S REALLY SORT OF A COUPLE OF FILTERS THERE. 
          SO ONE IS THE STUDY FILTERS. 
          HOW WERE THOSE PROJECTS THAT ARE, SO THERE'S 400 SOMETHING GIGAWATTS OUT THERE, UH, I PRESENTED YESTERDAY THAT ARE, THAT HAVE REQUESTED INTERCONNECTION, WHERE, WHERE ARE THOSE PROJECTS AT IN THE STUDY PROCESS? AND, AND SO THAT WAS ONE FILTER WE WANTED TO MAKE SURE THAT WE WERE, AGAIN, THIS IS A TRANSITIONAL BATCH, SO BATCH ONE WILL BE OPEN FOR ANYBODY TO PARTICIPATE, BUT FOR BATCH ZERO, WE NEEDED TO HAVE A, UH, MORE NARROW FOCUS. 
          AND SO WE WANTED TO FOCUS ON PROJECTS THAT WERE MATURE IN THAT STUDY PROCESS. 
          UH, AND THEN THE, THE OTHER FILTER IS, IS REALLY AROUND, UH, MORE, UH, PROJECT READINESS AND LOOKING AT THINGS LIKE FINANCIAL COMMITMENT, SITE CONTROL AND, AND THOSE SORTS OF THINGS. 
          AND SO BASED ON THOSE, THERE ARE, UH, THREE INDIVIDUAL, UH, KIND OF CATEGORIES THAT EACH, EACH LOAD WILL BE PUT INTO. 
          ONE IS BASE LOAD, WHICH MEANS YOU'VE REQUESTED A THOUSAND MEGAWATTS. 
          WE'VE SHOWN THROUGH THE STUDIES WE CAN RELIABLY SERVE THAT A THOUSAND MEGAWATTS. 
          YOU HAVE A GREEN LIGHT TO CONNECT THOSE 1000 MEGAWATTS TO THE SYSTEM. 
          STUDY LOAD CATEGORY IS, YOU'VE REQUESTED A THOUSAND MEGAWATTS, BUT THROUGH BATCH ZERO, WE WILL DETERMINE BY YEAR HOW MUCH OF THAT CAN WE RELIABLY SERVE. 
          AND WE WILL COME UP WITH A TRANSMISSION PLAN TO GET YOUR, YOUR FULL MEGAWATTS. 
          UH, AND THEN THE, THE MAJORITY OF LOAD WILL BE IN THAT EXCLUDED LOAD, UH, BUCKET. 
          AND, AND THAT MEANS THAT FOR BATCH ZERO FOR THIS TRANSITION, YOU'RE NOT INCLUDED IN THAT IN, IN THIS PARTICULAR STUDY, BUT YOU ARE ELIGIBLE FOR INCLUSION IN, UH, A LATER BATCH. 
          UM, AND, AND SO I MENTIONED THOSE, THOSE STUDY PATHWAYS. 
          UH, AND THERE'S REALLY SIX, I'M GONNA WALK THROUGH EACH OF THESE. 
          SO ONE IS OBVIOUSLY, IF, IF YOU HAVE PREVIOUSLY ENERGIZED, YOU HAVE GONE THROUGH A PREVIOUS INTERCONNECTION PROCESS, THOSE LOADS WILL BE INCLUDED AS BASE LOAD AND BATCH ZERO. 
          UH, AND THEN THE NEXT CATEGORY ARE THOSE LOADS THAT ARE ALMOST ENERGIZED. 
          SO THEY HAVE GONE THROUGH A PREVIOUS INTERCONNECTION STUDY PROCESS. 
          THEY'RE ALMOST ENERGIZED. 
          AND WE'RE MEASURING THAT BY LOOKING AT WHETHER THEY ARE IN THE, UH, QUARTERLY STABILITY ASSESSMENT OR THEY WERE IN, UH, LAST, UH, WINTER. 
          WE WENT THROUGH THIS INTERIM VOLTAGE RIGHT THROUGH. 
          SO THOSE ARE FOR LOADS THAT ARE ALMOST ENERGIZED. 
          AND SO THOSE WOULD ALSO BE INCLUDED, UH, AS BATCH ZERO. 
          UH, AND THEN THERE ARE THOSE PROJECTS THAT WERE INCLUDED. 
          THOSE PROJECTS, THOSE LOADS WERE INCLUDED IN A REGIONAL PLANNING GROUP PROJECT. 
          UH, SO THOSE LOADS LED TO THE NEED FOR AN RPG PROJECT, SUCH AS THE, UM, UH, THE, THE ONES THAT THE BOARD EN ENDORSED, UH, YESTERDAY. 
          UH, AND SO IF THOSE STUDIES ARE VALID, AND, AND I'LL TALK ABOUT WHAT THAT MEANS IN A MINUTE. 
          IF, IF THOSE STUDIES ARE VALID, THEN THAT LOAD IS ELIGIBLE TO BE BASE LOAD. 
          IF THE STUDY IS NOT VALID, THEN THEY WOULD BE STUDY LOAD. 
          AND SO WHAT DOES VALID MEAN? VALID MEANS THAT WHEN WE LOOK AT THAT 
          [02:30:01]
STUDY, IT INCLUDES ALL OTHER LARGE LOADS THAT HAVE A VALID STUDY, THAT THOSE LOADS WERE INCLUDED IN THAT STUDY. 
          AND SO THAT, THAT MEANS THAT WE KNOW THAT WE CAN RELIABLY, FROM A TRANSMISSION PERSPECTIVE, WE CAN RELIABLY SERVE THAT LOAD AS WELL AS ALL OTHER LOADS THAT HAVE COME BEFORE THEM IN THE PROCESS. 
          UH, SO THAT'S WHAT WE MEAN BY VALID STUDIES. 
          WE HAVE TO CHECK TO MAKE SURE ALL, ALL THOSE OTHER LOADS WERE INCLUDED IN THAT STUDY. 
          AND THEN A STUDY THAT IS RPG, LIKE WAS THE PERMIAN BASIN RELIABILITY PLAN, WHICH THE COMMISSION APPROVED THAT TRANSMISSION PLAN IN 2024. 
          UH, SO THAT, UH, ANY LOADS THAT WERE INCLUDED IN THAT STUDY. 
          AGAIN, THIS IS AN R PG RPG LIKE STUDY THAT, THAT, THAT IS A VALID STUDY FOR THOSE LOADS TO COME IN AND BE CONNECTED. 
          AND SO THOSE LOADS WOULD BE ELIGIBLE FOR BASE LOAD TREATMENT. 
          UH, AND THEN OBVIOUSLY WE HAVE THE LEGACY LARGE LOAD INTERCONNECTION STUDY PROCESS, EITHER THE, THE PREVIOUS INTERIM PROCESS OR THE CURRENT FIGURE ONE 15 PROCESS, UH, LOADS THAT GO THROUGH THAT PROCESS. 
          IF THEY HAVE A VALID STUDY, THEN THOSE LOADS WILL BE INCLUDED AS BASE LOAD OR ELIGIBLE FOR BASE LOAD AND BATCH ZERO. 
          UH, IF THEY, UM, AGAIN, SAME VALIDITY, UH, CRITERIA. 
          IF, IF THEY DON'T HAVE A BALANCED STUDY, THEN THEY ARE ELIGIBLE TO BE INCLUDED AS STUDY LOAD. 
          AND THEN FINALLY, UH, THOSE PROJECTS THAT WERE INCLUDED IN A NET METERING ARRANGEMENT THAT WAS FILED WITH THE COMMISSION BEFORE MARCH 4TH, UH, THEN THAT IS THEIR, UH, FOR THOSE LOADS, THAT IS THEIR VALID STUDY ENTRY, UH, PATHWAY INTO, UH, BATCH ZERO. 
          SO WHAT, WHAT DOES THIS LOOK LIKE IN TERMS OF, UH, GIGAWATTS? I'M GONNA START WITH THE, THE BAR CHART. 
          I'M GONNA START AT THE BOTTOM. 
          UH, SO IN, IN THAT FIRST, UH, CATEGORY, UH, THAT 23.9 GIGAWATTS, THAT, THOSE ARE LOADS THAT HAVE MET THE, UH, THEY'VE COMPLETED THE LARGE LOAD INTERCONNECTION STUDY PROCESS, UH, AS OF MARCH 4TH. 
          AND WHEN WE FILED THE PIGGER, WE, WE DID A CHECK AND ALL OF THOSE LOADS HAD VALID STUDIES. 
          UH, AND SO THOSE ARE ALL, ALL OF THOSE LOADS ARE ELIGIBLE TO BE INCLUDED AS BASE LOAD IN BATCH ZERO. 
          UM, AND THEN THE SECOND CATEGORY ARE LOADS THAT HAVE COMPLETED THAT INTERCONNECTION PROCESS, UH, SINCE MARCH 4TH, BETWEEN MARCH 4TH AND MAY 19TH WHEN WE TOOK THIS SNAPSHOT, UH, IN SOME OF THOSE, WE HAVE LOOKED AT THOSE AND WE HAVE SAID, THOSE, STU, YOUR STUDIES ARE VALID. 
          AND SO THAT'S 7.4 GIGAWATTS. 
          SOME OF THOSE WE HAVE SAID YOUR STUDIES ARE NOT VALID. 
          AND SO WE'VE SENT THAT INFORMATION BACK TO THE TSP AND, AND TOLD THEM THAT THEY NEED TO MAYBE DO SOME RE RE UH, DO THAT RE STUDY, UH, OF THOSE LOADS WITH ADDITIONAL LOADS THAT THEY DID NOT INCLUDE IN THE STUDY ORIGINALLY. 
          AND THERE ARE SOME LOADS THAT ARE, UH, METH THAT, UH, CRITERIA, BUT WE'RE STILL EVALUATING THOSE. 
          UM, AND, AND THEN AS YOU WORK UP THE LIST, I WON'T WON'T READ ALL OF THE DIFFERENT CATEGORIES HERE. 
          THERE ARE LOADS THAT, UH, HAVE SOME STUDY COMPLETION, BUT MAYBE NOT ALL HAVE NOT MET ALL OF THEIR REQUIREMENTS. 
          UH, AND, AND SO THAT'S HOW WE, WE STACK THE, UH, THE BAR CHART TO GET TO THE, UH, THE 400 SOMETHING GIGAWATTS THAT ARE, UH, IN THE PROCESS. 
          AND THAT AL ALSO WANNA HIGHLIGHT THAT, UM, BUCKET SEVEN IS, MOST OF THOSE LOADS ARE ACTUALLY INCLUDED IN THE, UH, IN, IN THE, THE COLUMN ON THE RIGHT, THE LARGE ARY CONNECTION STUDIES. 
          UM, BUT WE ARE IN THE PROCESS OF D DETERMINING WHERE WHICH OF THOSE, UM, SIX BUCKETS E EACH OF THOSE LOADS ARE, UM, WILL FALL IN ULTIMATELY. 
          UM, AND, AND THEN JUST, UH, BE, BECAUSE THIS, UH, HAS COME UP IN THE COMMENTS, I WANT TO JUST TAKE A MINUTE TO WALK THROUGH WHAT, UH, WE REFER TO AS THE LATTER METHODOLOGY, WHICH IS, UH, THAT WE HAVE A, AS WE ARE LOOKING AT THAT STUDY VALIDITY ISSUE, UH, THE WAY THAT WE ARE DETERMINING THAT IS BY WHEN YOUR VALID STUDY WAS COMPLETED. 
          UH, AND SO WE WILL ORDER THOSE. 
          AND, AND SO YOU SEE THE FIRST STEP IS JUST TO ORDER. 
          AS THOSE STUDIES COME IN, WE'RE GONNA ORDER THEM, AND THEN WE WILL START AT THE TOP OF THE LIST AND WE WILL WORK DOWN THE LIST AND SEE, OKAY, DID, DID YOUR STUDY THAT DIDN'T INCLUDE ALL OTHER LARGE LOADS THAT WERE AHEAD OF YOU ON THE LIST. 
          AND SO WHEN WE GET TO THE FIRST ONE, RPGA LOADS ONE AND TWO, THAT THEY'RE AT THE TOP OF THE LIST. 
          SO, SO THEY PASS THAT TEST. 
          NEXT STUDY HAD EVERYTHING, THE NEXT STUDY HAD EVERYTHING, BUT WHEN WE GET TO, UH, WHAT WE REFER TO AS LLIS LOAD TWO, UH, MAYBE IT DID NOT INCLUDE THAT THEIR STUDY DID NOT INCLUDE LLIS LOAD ONE AND THEY'RE IN THE SAME AREA. 
          SO THEY WOULD FAIL THAT VALIDITY CHECK. 
          UH, AND THEN THE TSP WOULD NEED TO GO BACK AND ADD THAT LOAD IN AND RE-STUDY THAT. 
          AND IF THEY ACCOMPLISH THAT BY JULY 10TH, THEN THEY ARE ALLOWED TO PASS THAT TEST. 
          AND SO THIS IS, AGAIN, IMPORTANT FROM A RELIABILITY PERSPECTIVE. 
          WE CAN'T LET MORE LOAD ONTO THE SYSTEM THAN WE KNOW THAT WE HAVE STUDIED THAT, THAT WE CAN RELIABLY SERVE FROM A TRANSMISSION PERSPECTIVE. 
          UM, THEN I WANT TO SHIFT GEARS HERE TO THE, UM, THE PCLR AND THE WL POND. 
          I'M, I'M GONNA START ON THE RIGHT HAND SIDE AND THEN AND, UH, GO BACKWARDS AND, AND WORK LEFT. 
          UH, SO IF YOU REMEMBER, UH, YESTERDAY, IF YOU WERE AT TNS, YOU HEARD NVIDIA TALK ABOUT THIS CONCEPT 
          [02:35:01]
OF FLEXIBLE LOADS AND, AND LOADS THAT CAN COME IN AND, AND BE FLEXIBLE. 
          AND SO MAYBE THERE ARE SOME NUMBER OF HOURS OF THE YEAR WHERE THEY HAVE TO REDUCE THEIR CONSUMPTION, BUT MOST OF THE YEAR THEY, THEY CAN, UH, CONSUME THE, THE, THE FULL AMOUNT THAT THEY WANT TO CONSUME. 
          UM, AND THE, THE FRAMEWORK THAT WE PUT IN PLACE TO ALLOW THAT IS THE, UH, PCLR FRAMEWORK. 
          AND SO THAT IS WHERE THE LOAD IS ACTUALLY DISPATCHABLE. 
          SO AS WE SEE TRANSMISSION CONSTRAINTS ON THE SYSTEM, UH, THEY, THEY CAN ACTUALLY MOVE DOWN. 
          SO AS AN EXAMPLE, IF THEY HAVE A 150 MEGAWATT LOAD, UH, AND WE SEE THAT WE CAN ONLY RELIABLY SERVE A HUNDRED MEGAWATTS WITH THE TRANSMISSION SYSTEM, THEN THEY WOULD BE DISPATCHABLE TO WHERE MAYBE MOST DAYS THEY CAN CONSUME THAT ONE 50. 
          BUT IF WE SEE TRANSMISSION CONSTRAINTS, THEN OUR SCED SYSTEM WILL AUTOMATICALLY BACK THEM DOWN. 
          THEY HAVE TO BE ABLE TO, TO RECEIVE THAT SIGNAL AND AUTOMATICALLY BACK DOWN TO A HUNDRED MEGAWATTS TO, TO, UH, PRESERVE THE RELIABILITY OF THE SYSTEM. 
          UH, AND SO WHEN WE, UH, WE INITIALLY FILED THE, THE PICKER AND NPRR ON MARCH 4TH, ON APRIL 17TH, WE FILED COMMENTS THAT ADDED INTO THAT, THAT PICKER. 
          THIS IS NOT A SEPARATE PIGGER, THIS IS IN THAT INCLUDED IN, IN THAT PIGGER 1 45 AND, AND NPR 1325. 
          WE INCLUDED THOSE COMMENTS THAT WILL, WOULD ALLOW THAT, UH, THAT, THAT, THAT PCLR TO HAPPEN. 
          UM, AND THEN ON MAY 2ND, WE ADDED THE WL PUN CONSTRUCT, WHICH IS WITHDRAWAL LIMITED PRIVATE USE NETWORK. 
          UH, AND THAT ALLOWS LOADS TO GET CREDIT FOR BRINGING NEW GENERATION WITH THEM, UH, TO WHERE WE WOULD ALLOW THEM TO CONNECT MORE MEGAWATTS TO THE SYSTEM. 
          IT, IT'S NOT A FAST PASS TO BE ABLE TO CONNECT TO THE SYSTEM FASTER. 
          IT JUST MEANS THAT THEY CAN MORE QUICKLY, THEY CAN CONSUME THE, THE, UH, LOAD THAT THEY WANT. 
          SO AS AN EXAMPLE, IF THEY HAVE A 1000 MEGAWATT LOAD, BUT THE SYSTEM CAN REALLY ONLY ACCOMMODATE 100 MEGAWATTS BECAUSE OF TRANSMISSION CONSTRAINTS. 
          IF THEY'RE ALSO BRINGING A THOUSAND MEGAWATTS OF GENERATION, THEN WHERE BEFORE IF THEY DIDN'T BRING THAT GENERATION, WE WOULD LIMIT THEM TO A HUNDRED MEGAWATTS. 
          IF THEY'RE BRINGING GENERATION, THEY CAN CONNECT THE FULL 1000 MEGAWATTS AND, AND JUST MAKE SURE THAT THEY'RE OPERATING IN SUCH A WAY THAT THEY WOULD NEVER CONSUME MORE THAN 100 MEGAWATTS FROM THE GRID. 
          SO THEY'RE ABLE TO CONNECT MORE LOAD QUICKER IN THAT WAY. 
          AGAIN, INTRODUCE THAT CONCEPT ON, UH, MAY 2ND. 
          AND, UM, YOU KNOW, TO, UH, CAITLIN'S POINT EARLIER, THERE'S, UH, WE, WE HAVE A, A A LOT OF STAKEHOLDERS THAT HAD A LOT OF IDEAS FOR HOW TO ENHANCE BOTH PCLR AND W PON. 
          I THINK WE'RE REALLY INTERESTED IN THOSE IDEAS, BUT WE'RE NOT ABLE TO GET THOSE IN FOR BATCH ZERO, BUT WE'LL BE WORKING ON THAT GOING FORWARD. 
          UM, AND JUST, UM, ON, ON THE STUDY TIMELINE FOR BATCH ZERO, UH, SO, UH, I, I'VE GOT MORE DETAILS ON WHAT'S COMING UP IN THE NEXT COUPLE OF MONTHS, BUT ESSENTIALLY THE, THE STUDY WILL START IN AUGUST, UH, AND WE WILL RUN, WE'VE ACTUALLY ALREADY STARTED BUILDING THE MODELS FOR BATCH ZERO, UH, BUT WE WILL START RUNNING THOSE MODELS, UH, IN SEPTEMBER ONCE THE, THE, UH, CASES ARE COMPLETELY BUILT. 
          UM, AND WE WILL ALSO BE RUNNING STABILITY STUDIES, AND THEN ON APRIL 9TH IS WHEN WE WILL COME OUT WITH OUR FINAL REPORT, AND THEN THAT STARTS THAT 60 DAY WINDOW FOR THE DEVELOPERS TO MAKE THEIR COMMITMENT TO DETERMINE IF, IF THEY WANT TO, UH, MOVE FORWARD, UH, AND, AND, UH, AND ACCEPT THE MEGAWATT ALLOCATIONS AND THE FINANCIAL COMMITMENTS THAT ARE REQUIRED AT THAT TIME. 
          UH, SO THAT, THAT'S HIGH LEVEL. 
          UH, YOU WANNA PAUSE HERE AND, AND MENTION, I DON'T HAVE A SEPARATE SLIDE ON OUR IMPACT ANALYSIS, BUT, UH, BUT, UH, BECAUSE WE ARE, UM, TAKING WORK AND WE ARE DOING THIS ADDITIONAL, UH, STUDY WORK FOR BUILDING THE MODELS, RUNNING THE STEADY STATE ANALYSIS, RUNNING THE STABILITY ANALYSIS, UH, THAT IS AN ADDITIONAL FTE IMPACT ON ERCOT. 
          UH, AND SO WE'VE, OUR, OUR IA IS FOR 18 FTES TO ACCOMPLISH THAT WORK. 
          UM, AND UH, IN ADDITION TO THAT, WE HAVE, UM, UH, I THINK IT'S A 300 K TO 400 K UH, PROJECT TO ENABLE THE PCLR, UH, SO THAT WE CAN INTEGRATE THAT INTO OUR SYSTEMS. UH, SO THAT'S, THAT'S WHAT'S IN THAT IA. 
          I THINK I'LL ALSO NOTE ON THE IMPACT ANALYSIS IS, UH, WHILE WHAT'S IN P 1 45 IS JUST FOR A SINGLE BACHELOR STUDY, WE ARE ANTICIPATING THAT WE WILL BE MOVING, UH, INTO A ONGOING BATCH STUDY PROCESS. 
          AND SO THOSE FTES ARE REALLY, YOU KNOW, ANTICIPATED TO MOVE AND, AND, AND, UH, YOU KNOW, CONTINUE ON IN, UH, THE ONGOING BATCH WORK. 
          UM, SO YOU, I'D LIKE TO ASK A QUESTION. 
          YEP. 
          ON, ON SLIDE SEVEN, YOU'RE, I'M JUST TRYING TO SUMMARIZE AT A VERY HIGH LEVEL, YOU BATCH ZEROS GOING TO MODEL ROUGHLY 450 GIGAWATTS OF LOAD, UH, BATCH ZERO. 
          LEMME GO BACK TO, UM, THIS. 
          SO, SO FOR, FOR THAT 400, UH, IN SOMETHING GIGAWATTS 
          [02:40:01]
OF LOAD, UM, THOSE E EACH OF THOSE WE WILL CATEGORIZE AS EITHER BASE LOAD, RIGHT STUDY LOAD OR EXCLUDED LOAD. 
          RIGHT NOW WE'RE EXPECTING THAT BETWEEN THE BASE LOAD AND THE STUDY LOAD, THAT'S GOING TO BE FROM A STUDY PERSPECTIVE THAT'S ROUGHLY A HUNDRED GIGAWATTS, MAYBE A LITTLE BIT MORE THAN A HUNDRED GIGAWATTS THAT WOULD BE ELIGIBLE, UH, FROM A STUDY PERSPECTIVE. 
          NOW, THERE IS ALSO THAT, THAT FILTER OF FINANCIAL COMMITMENTS AND SITE CONTROL REQUIREMENTS AND THOSE OTHER PROJECT READINESS, UH, MILESTONES THAT, THAT ARE IN THE PIGGER RIGHT NOW, WE DON'T KNOW HOW MUCH OF THAT LOAD WILL QUALIFY UNDER THAT FINANCIAL COMMITMENT BECAUSE IT HAD NOT GOTTEN TO THAT DEADLINE YET TO PROVIDE THAT FINANCIAL COMMITMENT PIECE. 
          OKAY. 
          WELL, MY QUESTION WAS GONNA BE HOW DOES THE SIZE AND GIGAWATTS OF BATCH ZERO COMPARE TO THE EXISTING MODELS FOR OUR EXISTING TRANSMISSION SYSTEM? YEAH, SO, UM, YEAH, SO, SO THIS LOAD WOULD BE IN ADDITION TO THE, AND THESE ARE I THINK 20, 32 NUMBERS HERE. 
          SO LET'S, LET'S SAY IT'S A HUNDRED GIGAWATTS THAT, UH, COME IN AS BASE LOAD AND STUDY LOAD. 
          RIGHT NOW OUR 2032 FORECAST, UM, I THINK IS 110, 110 ISH GIGAWATTS. 
          UH, AND SO THIS WOULD PUT US A LITTLE OVER 200 GIGAWATTS OF TOTAL LOAD IN THE MODEL. 
          UH, AND AGAIN, THAT'S ASSUMING THAT ALL OF IT QUALIFIES FROM A FINANCIAL COMMITMENT PERSPECTIVE. 
          AND, AND SO TO PUT THAT, UH, IN REFERENCE TO PREVIOUS STUDIES, I THINK OUR RTP LAST YEAR WAS IN THE ONE 50 TO ONE 60 GIGAWATT RANGE. 
          SO IT, IT IS A JUMP ABOVE THE RTP. 
          UM, SO WE HAVE, UM, STARTED, UH, WE CALL THE BACHELOR READINESS, UH, MEETINGS WITH, UH, STAKEHOLDERS, UH, SO THAT WE ARE HAVING MEETINGS ON A WEEKLY BASIS TO GET THEM PREPARED FOR THE DEADLINES THAT ARE COMING UP AND MAKING SURE THAT THEY UNDERSTAND WHAT IS P 1 45 IS A, IT'S A LONG, UH, DOCUMENT, IT HAS A LOT OF REQUIREMENTS. 
          AND SO WE WANT TO MAKE SURE THAT THEY'RE PREPARED TO KNOW EXACTLY WHAT THE DEADLINES ARE FOR THEM TO SUBMIT THEIR INFORMATION AND WHAT INFORMATION, UH, IS GOING TO BE REQUIRED FOR THEM TO, TO, UH, SUBMIT TO US. 
          UH, IT ALS ALSO, WE ARE PUTTING TOGETHER SOME FORMS, SOME STANDARD FORMS THAT WHEN, UH, PEOPLE ARE SENDING IN, WHEN THE, THE TSPS ARE, ARE SENDING IN, UM, THESE ATTESTATIONS THAT ARE REQUIRED THAT MAKE MAKING SURE THAT THEY HAVE KIND OF A, A STANDARD FORMS THAT WE'RE RECEIVING SOME CONSISTENCY IN THOSE. 
          UH, AND SO WE STARTED THOSE MEETINGS ON MAY 15TH. 
          WE'LL CONTINUE UNTIL, I THINK JULY 9TH IS OUR LAST, UH, READINESS MEETING. 
          UH, SO WE WE'RE TODAY WE'RE, UM, ANTICIPATING BOARD APPROVAL TODAY, UH, COMMISSION APPROVAL AFTERWARDS. 
          AND THEN WITH THAT, THE EXISTING PROCESS WILL END ON JULY 10TH. 
          AND THAT IS ALSO THE DEADLINE FOR THE, UH, THE DEVELOPERS TO SUBMIT ALL OF THEIR INFORMATION TO THE TSPS AND DSPS. 
          AND THEN THE TSPS AND DSPS HAVE TWO WEEKS TO GATHER THAT INFORMATION AND PACKAGE IT UP, SEND IT TO ERCOT ON JULY 24TH. 
          UH, AND THEN WE HAVE TWO WEEKS TO REVIEW THAT. 
          AND SO OUR DEADLINE TO SEND THAT INFORMATION BACK AND NOTIFY THE TSPS AND DSPS, WHICH LOADS WILL BE INCLUDED AS BASE LOAD, WHICH ARE STUDY LOAD AND WHICH ARE EXCLUDED. 
          UH, OUR, OUR DEADLINE TO MAKE THAT NOTIFICATION IS AUGUST 7TH. 
          UH, BUT SO THAT, THAT IS THE DATE IN WHICH WE WILL SORT OF KNOW THAT, THAT E EXACTLY HOW MUCH IS, IS IT A HUNDRED GIGAWATTS? IS IT 50 GIGAWATTS? HOW MUCH IS ACTUALLY QUALIFIED IS ON AUGUST 7TH, UH, WITH, WITH ASTERISK THERE THAT THERE IS A CURE PERIOD. 
          IF THE MODEL INFORMATION THAT THEY SENT US, IF THERE IS DEFICIENCIES IN THAT MODEL, THEN WE'VE GIVEN THEM A CURE PERIOD UNTIL THE END OF AUGUST. 
          AND SO THERE COULD BE SOME THAT AREN'T ABLE TO GET US THAT INFORMATION THAT WOULD THEN FALL OUT. 
          UH, BUT WE THINK WE'LL HAVE A PRETTY GOOD IDEA OF WHERE THAT LOAD IS GONNA BE, UH, AROUND AUGUST 7TH. 
          AND THEN, UH, LAST LAST THING I HAD IS, UM, JUST TO TALK A LITTLE BIT ABOUT SOME OF THE, THE, UH, ISSUES THAT WERE RAISED AT TAC. 
          I THINK CAITLYN LAID IT OUT, UH, PRETTY WELL, UM, BUT WON'T GO INTO A LOT OF DETAIL ON THESE. 
          BUT, UH, DID WANT TO HIGHLIGHT, UH, THAT WE HAD SOME, UH, DISCUSSIONS ABOUT, UH, IT WAS REALLY ABOUT, UH, ALL THREE OF THESE ARE REALLY ABOUT, UH, CHANGING ELIGIBILITY REQUIREMENTS AS WE HAVE LAID THEM OUT IN P ONE TO 45. 
          UM, AND, AND THERE'S AGAIN, VARIOUS VERSIONS OF THIS, BUT THEY ARE AROUND OPENING THAT UP SO THAT ADDITIONAL LOADS WOULD BE ABLE TO QUALIFY TO GET 
          [02:45:01]
INTO, UH, VASH ZERO. 
          UM, AS WE WERE JUST DISCUSSING, WE AL AL ALREADY JUST WITH THE REQUIREMENTS THAT WE HAVE, WE ALREADY HAVE A HUNDRED GIGAWATTS OR SO THAT WOULD BE ELIGIBLE TO BE INCLUDED AND AS WE THINK THAT THAT'S A REASONABLE, UH, LIMITATION FOR THE STUDY. 
          UM, AND SO WITH THAT, I'LL PAUSE AND AND SEE IF THERE ARE, UM, ANY QUESTIONS FOR ME. 
          S THANK YOU JEFF. 
          UH, NOT A QUESTION JUST MAYBE FOR THE LAST TIME. 
          UM, 'CAUSE I KNOW YOU DON'T LOVE TO, UH, HAVE PRAISE PUT UPON YOU, BUT YOU'RE ALWAYS GENEROUS WITH THANKING EVERYONE ELSE. 
          BUT I WANT TO SAY AGAIN THAT I VIEW YOU AND BARKSDALE TOGETHER AS THE LINCHPIN THAT HELD ALL THIS TOGETHER. 
          AND YOUR WILLINGNESS TO MEET WITH AND MEANINGFULLY ENGAGE WITH ALL STAKEHOLDERS, WITH ALL DIFFERENT PERSPECTIVES ON EVERY ONE OF THESE ISSUES IS REALLY THE REASON THAT WE'RE HERE TODAY. 
          AND YOU DESERVE A LOT OF THANKS AND, AND PRAISE FOR, UH, EVERYTHING YOU'VE DONE IN THIS PROCESS. 
          THANK YOU. 
          AND JUST ONE, MAYBE ONE MORE THING REALLY QUICKLY. 
          UM, TYPICALLY WE TAKE 30 DAYS BETWEEN BOARD APPROVAL AND BRINGING THIS TO THE COMMISSION, ASSUMING THE BOARD APPROVES THIS TODAY WOULD BE MY INTENTION TO PUT THIS ON THE JUNE 18TH OPEN MEETING FOR THE PUC TO DELIBERATE, UM, THIS ISSUE. 
          THANKS JUDGE LEASON. 
          ANY OTHER QUESTIONS OR COMMENTS FOR JEFF? NO. 
          OKAY. 
          I DON'T SEE ANY. 
          ALRIGHT, JEFF, THANK YOU, UH, FOR THAT. 
          UM, THE BOARD RECEIVED TWO SETS OF WRITTEN COMMENTS FROM TRU PAT CHOA INC. 
          WHICH ARE INCLUDED DEBATING MATERIALS. 
          UH, GORDON PAL IS HERE TO SPEAK IN PERSON, I THINK MR. PAL OVER HERE ON THE RIGHT SIDE. 
          SO MR. POWELL, IF YOU WOULD, UH, PLEASE PROCEED. 
          YOUR COMMENTS WERE FAIRLY COMPREHENSIVE, SO TO THE EXTENT THAT YOU CAN JUST, UH, GIVE US THE HIGHLIGHTS OF THOSE OR ANYTHING, ANY NEW MATERIAL THAT WOULD BE HELPFUL, YES, I WILL NOT BE READING THOSE, UM, EXTREMELY NUANCED AND DETAILED COMMENTS. 
          OH, THANK YOU. 
          UM, I AM GONNA READ SOMETHING, BUT IF I'M GOING TOO LONG, JUST TELL ME TO SHUT UP. 
          WON'T HURT MY FEELINGS. 
          CHAIRMAN, BOARD MEMBERS, ERCOT STAFF AND FELLOW TEXANS. 
          MY NAME IS GIDEON POWELL AND MY FAMILY HAS SPENT THREE GENERATIONS INVESTING IN TEXAS ENERGY INFRASTRUCTURE. 
          MY GRANDDAD WAS A WILDCATTER. 
          MY LATE FATHER LORD W POWELL JR. 
          WAS ONE OF THE LAST OF A DYING BREED OF TEXAS WILDCATTERS. 
          AND AMONGST THE FIRST OF A NEW GENERATION OF ENERGY WILDCATTERS, I FIND MYSELF FOLLOWING IN LIKE THOUSANDS OF TEXAS FAMILIES BEFORE US. 
          WE LIVE THE SAME BASE OF BARGAIN THAT HELPED US BUILD THIS STATE. 
          TAKE RISK WHEN SUCCESS IS UNCERTAIN, INVEST CAPITAL, BUILD INFRASTRUCTURE THAT EMPLOYEES PEOPLE PAY TAXES AND HELP MAKE ENERGY MORE RELIABLE AND ABUNDANT. 
          IN 2018, WHEN MY TEAM FIRST APPLIED FOR A HUNDRED MEGAWATT LOAD INTERCONNECTION, IT SOUNDED CRAZY TO DEVELOP POWERED LAND CAMPUS IN WEST TEXAS, BUT THE RULES WERE CLEAR IF WE WANTED TO DEVELOP A LARGE POWERED LAND CAMPUS FOR LARGE COMPUTE USERS WITHOUT UNNECESSARILY BURDENING TEXAS RATE PAYERS, WE SHOULD BUILD OUR OWN SUBSTATION. 
          SO WE DID, AND MY WIFE AND I PERSONALLY GUARANTEED A LETTER OF CREDIT JUST MONTH AFTER THE BIRTH OF OUR NOW 8-YEAR-OLD DAUGHTER. 
          I SHARE THAT BECAUSE IT'S ONE OF THE MANY EXAMPLES THAT REINFORCES WHAT HAS MADE TEXAS A GREAT PLACE TO INVEST. 
          TEXAS WORKS WHEN PEOPLE CAN UNDERSTAND THE RULES, RELY ON THE PROCESS, AND MAKE LONG-TERM INVESTMENTS IN GOOD FAITH. 
          FAST FORWARD TO DECEMBER 15TH, 2025 WHEN THE CURRENT LARGE LOAD INTERCONNECTION FRAMEWORK BECAME MEMORIALIZED IN ERCOT RULES. 
          ERCOT HAD MORE THAN THREE TIMES THE PRIOR YEARS LEVEL OF INTERCONNECTION REQUEST. 
          THE ERCOT I FIRST ENTERED IN 2018 HAD CHANGED. 
          THE SCALE HAD CHANGED AND CHOA RECOGNIZED THAT THE BAR NEEDED TO BE HIGHER. 
          THAT'S WHY CHOICE SUPPORTS THE INTENT OF PIGGER 1 4 5. 
          ERCOT IS AN ECOLOGICAL SYSTEM WHERE GENERATION AND LOAD MUST REMAIN IN BALANCE EVERY SECOND OF EVERY DAY. 
          CHOI APPRECIATES THE WORK OF EVERY SINGLE ERCOT STAFF MEMBER THAT THEY PERFORM EVERY SINGLE DAY, 24 7, TO MAINTAIN THE FREQUENCY THE TEXANS NEED. 
          MY QUESTION TODAY IS ABOUT GOVERNANCE AND TRANSITION CONSISTENCY. 
          BEFORE ASKING THAT QUESTION, I WANT TO ACKNOWLEDGE SOMETHING POSITIVE. 
          I APPRECIATE THE WORK ERCOT ENCORE AND THE STAKEHOLDERS UNDERTOOK TO VALIDATE 150 MEGAWATTS OF PROJECT VENUS LOAD INTO BAT BATCH ZERO BASE. 
          THE EFFORT REINFORCED MY BELIEF THAT TRANSPARENCY, OBJECTIVE CRITERIA AND COLLABORATIVE PROBLEM SOLVING STRENGTHENED THE THE CONFIDENCE IN THE ERCOT PROCESS. 
          AND IT DEMONSTRATED 
          [02:50:01]
THAT MATURE ORIGINATING PROJECTS CAN BE EVALUATED THROUGH OBJECTIVE CRI CRITERIA WITHOUT REOPENING REOPENING BATCH ZERO BROADLY OR INVALIDATING PREVIOUSLY APPROVED STUDIES OR UNDERMINING ADMINISTRATIVE ABILITY. 
          WE BELIEVE THAT VALIDATION SUCCEEDED IN PART BECAUSE OF ERCOT REVIEW OF THE SOUTHERN DFW PROJECT, WHICH IDENTIFIED APPROXIMATELY 2.9 GIGAWATTS OF ADDITIONAL LOAD SERVING CAPABILITY BEYOND THE ORIGINAL PLANNING ASSUMPTIONS, THE BOARD'S APPROVAL OF THE 2024 RPG PROJECT SUGGESTS AN EVEN LARGER OPPORTUNITY. 
          ERCO T'S REVIEW IDENTIFIED SIX, APPROXIMATELY 16 GIGAWATTS OF ADDITIONAL LOAD SERVING CAPABILITY ASSOCIATED WITH THOSE PROJECTS MORE THAN FIVE TIMES THE CAPACITY IDENTIFIED THROUGH THE SOUTHERN DFW VALIDATION EFFORT. 
          FROM MY PERSPECTIVE, THIS IS AN IMPORTANT GOVERNANCE LESSON. 
          IF OBJECTIVE VALIDATION SUCCESSFULLY ACCOMMODATED, ORIGINATING LOADS WITHIN THE SOUTHERN DFW PLANNING RECORD WITHOUT INVALIDATING PREVIOUSLY APPROVED STUDIES, THEN THE SAME OBJECTIVE PROCESS SHOULD BE APPLIED TO THE LOADS ASSOCIATED WITH THE 2024 RPG PROJECTS. 
          ACCORDINGLY, I WOULD RESPECTFULLY ASK THE BOARD TO DIRECT KOTT TO PERFORM THE SAME VALIDATION ANALYSIS FOR THE FOUR NUMBERS RPG PROJECTS 40 42, 41 43, APPLYING THE SAME OBJECTIVE CRITERIA AND COLLABORATIVE APPROACH THAT SUCCESSFULLY VALIDATED THE FIRST 150 MEGAWATTS OF PROJECT VENUS AND THE OTHER ORIGINATING LOADS ASSOCIATED WITH THE SOUTHERN DFW PROJECT. 
          I WOULD ALSO RESPECTFULLY ASK THAT THIS WORKS BE COMPLETED ON A TIMELINE THAT GIVES EFFECTIVE LOADS OF MEANINGFUL OPPORTUNITY TO SATISFY THE JULY 10TH DEADLINE FOR SUBMITTING SUPPORTING MATERIALS TO THE TRANSMISSION SERVICE PROVIDERS. 
          OTHERWISE, PROJECTS THAT ULTIMATELY VALIDATE COULD BE EXCLUDE EXCLUDED FROM BATCH ZERO BASE DUE TO TIMING CONSTRAINTS RATHER THAN SUBSTANTIVE INELIGIBILITY. 
          THE QUESTIONS BEFORE THE BOARD IS THIS ARE SIMILARLY SITUATED PROJECTS, AND MORE IMPORTANTLY, PROJECTS THAT FOLLOW THE RULES INVESTED BEFORE THE STANDARDS CHANGED BEING EVALUATED UNDER THE SAME OBJECTIVE AND TRANSPARENT STANDARDS. 
          YEARS AGO, AND IN OUR CASE 2023, MANY DEVELOPERS MADE SUBSTANTIAL INVESTMENTS IN TEXAS BASED ON THE ERCOT AND T-D-T-S-P PROCESSES THAN IN EFFECT. 
          SINCE THEN, ERCOT HAS BEEN MOVING TOWARD A NEW FRAMEWORK, WHILE MANY PROJECTS REMAIN IN TRANSITION BETWEEN THOSE TWO WORLDS. 
          SO I RESPECTFULLY ASK, IS THE BOARD SATISFIED THAT THE OBJECTIVE CRITERIA ARE GOVERNING PROJECT ADVANCEMENT TODAY THAT MATTERS BEYOND ANY, ANY INDIVIDUAL COMPANY. 
          IT MATTERS BECAUSE TEXAS NEEDS SERIOUS DEVELOPERS WILLING TO INVEST LONG-TERM INFRASTRUCTURE CAPITAL TEXAS NEEDS SUBSTANTIALLY MORE FLEXIBLE LOAD. 
          I SO APPRECIATE THE PCLR AND THE W PUN. 
          THAT IS ONE OF THE MOST PIONEERING AND IMPORTANT THINGS FOR EVERY SINGLE ELECTRIC GRID ON EARTH. 
          WE ALSO NEED NEW DISPATCHABLE GENERATION BATTERIES, SUBSTATIONS, TRANSMISSION SOLUTIONS, AND THE PRIVATE CAPITAL. 
          WILLING TO INVEST BEFORE EVERY ANSWER IS OBVIOUS. 
          IT MATTERS TO COMMUNITIES WAITING FOR INFRASTRUCTURE INVESTMENT. 
          IT MATTERS TO FUTURE GENERATORS AND DEVELOPERS DECIDING WHERE TO BUILD. 
          THREE YEARS AGO, IN 2023, CHOA SUBMITTED LOAD REQUEST UNDER THE RULES AND PROCESSES. 
          THEN IN EFFECT, WE FOLLOWED THE INSTRUCTIONS, WE MADE SIGNIFICANT INVESTMENTS, AND WE SUBMITTED APPROXIMATELY 2,400 MEGAWATTS OF LOAD AT OUR VENUS SITE ALONE. 
          TO DATE, 150 MEGAWATTS HAS BEEN VALIDATED INTO BATCH ZERO BASE, AND FOR THAT WE'RE GRATEFUL. 
          WE APPRECIATE THAT OUTCOME AND VIEW IT AS EVIDENCE THAT OBJECTIVE VALIDATION CAN SUCCESSFULLY DISTINGUISH MATURE PROJECTS FROM SPECULATIVE REQUESTS. 
          WE'RE NOT ASKING FOR SPECIAL TREATMENT. 
          WE'RE SIMPLY ASKING ER ERCOT TO CONTINUE THE SAME VALIDATION PROJECTS PROJECT PROCESS, AND APPLY OBJECTIVE STANDARDS CONSISTENTLY TO EARLY CREDENTIALED LOADS THAT WERE RELIED UPON IN TRANSMISSION PLANNING. 
          IN MANY CASES, ORIGINATING LOADS HELP JUSTIFY TRANSMISSION INVESTMENTS AND PLANNING ASSUMPTIONS THAT ULTIMATELY BENEFITED OTHER LOADS AND OTHER PROJECTS. 
          THAT IS WHY CONSISTENT VALIDATION MATTERS. 
          CAPITAL DEPENDS ON TRUST, TRUST THAT THE RULES ARE CLEAR, TRUST THAT STANDARDS ARE APPLIED CONSISTENTLY. 
          TRUST THAT WHEN TEXAS RAISES THE BAR AS IT SHOULD, THE TRANSITION IS ADMINISTERED TRANSPARENTLY AND CONSISTENTLY. 
          CHOICE SUPPORTS THE HIGH STANDARDS AND THE CLEANING UP OF THE QUEUE. 
          WE, WE SUPPORT EXPANDING THE TOOLS AVAILABLE TO ERCOT SO THAT THEY CAN ENHANCE RELIABILITY AND AFFORDABILITY FOR TEXANS. 
          MY ASK IS THAT TEXAS RAISES THE BAR IN A WAY THAT PROTECTS RELIABILITY, PROTECTS RATE PAYERS AND HONORS THE SERIOUS STAKEHOLDERS WHO INVESTED EARLY UNDER THE RULES. 
          TEXAS GAVE THEM BECAUSE THE QUESTION BEFORE THE BOARD IS NOT WHETHER EVERY PROJECT ADVANCES THE PRO. 
          THE QUESTION IS WHETHER TEXAS CONTINUES TO REWARD BEHAVIORS THAT HELP MAYOR ERCOT THE MOST RESPECTIVE 
          [02:55:01]
GRID IN THE WORLD. 
          EARLY PARTICIPATION PLANNING, VISIBILITY, CAPITAL COMMITMENT, INFRASTRUCTURE INVESTMENT, AND WORKING COLLABORATIVE COLLABORATIVELY THROUGH RPG AND PLANNING PROCESSES WITH GOOD FAITH ENGAGEMENT. 
          IF THE BOARD IS CONFIDENT THESE SAFEGUARDS ARE IN PLACE, I'D APPRECIATE UNDERSTANDING WHAT OBJECTIVE CRITERIA ERCOT IS USING TO ENSURE PROJECTS ARE CONSI ARE TREATED CONSISTENTLY. 
          AND IF IMP IMPROVEMENTS ARE STILL NEEDED, I'M CONFIDENT TEXANS CAN ADDRESS THEM OPENLY, CONSTRUCTIVELY, AND IN A MANNER THE STRENGTHS AND TRUST IN THE ERCOT AND PROVERBS PRESERVES THE ENTREPRENEURIAL SPIRIT THAT HELPED MAKE TEXAS THE ENERGY CAPITAL OF THE WORLD. 
          I BELIEVE THIS BOARD HAS AN OPPORTUNITY TO DEMONSTRATE THAT TEXAS CAN MODERNIZE THIS PROCESSES, IMPROVE ACCOUNTABILITY, STRENGTHEN RELIABILITY, AND PRESERVE THE TRUST THAT'S MADE TEXAS THE MOST SUCCESSFUL ELECTRICITY MARKET IN THE WORLD. 
          THANK YOU FOR YOUR SERVICE, YOUR LEADERSHIP, AND YOUR CONSIDERATION. 
          THANK YOU MR. POWELL. 
          ANY QUESTIONS FOR MR. POWELL? OKAY. 
          WE APPRECIATE YOU BEING HERE TODAY. 
          THANK YOU FOR YOUR, UH, COMMENTS AND YOUR ADDITIONAL, UH, UH, COMMENT, UH, YOUR WRITTEN COMMENTS AND YOUR VERBAL COMMENTS. 
          AND WE THANK YOU FOR YOUR INVESTMENT IN TEXAS. 
          WE, UH, IF THERE'S NO FURTHER ANY FURTHER DISCUSSION ON 1325 OR ONE FORTY FIVE BEFORE WE CALL FOR A VOTE, I DON'T SEE ANY. 
          SO I'LL ENTERTAIN A MOTION TO ADOPT NPR 1325 AND TO ADOPT PIGGER 1 45 AS RECOMMENDED BY TAC IN THE, UH, MAY 19TH, 2026 TAC REPORT WITH A RECOMMENDED EFFECTIVE DATE OF JULY THE 11TH FOR BATCH ZERO AND WITHDRAWAL LIMITED PRIVATE USE NETWORK AND UPON SYSTEM IMPLEMENTATION FOR PROVISIONAL CONTROLLABLE LOAD RESOURCE. 
          DO I HAVE A MOTION ON THAT, KATHLEEN? I HAVE A SECOND. 
          JULIE. 
          OKAY. 
          ALL IN FAVOR? AYE. 
          ANY OPPOSED? ANY ABSTENTIONS? OKAY. 
          1325 NPR 1325 AND PERIOD 1 45 HAVE BEEN ADOPTED. 
          UH, WE, I'M FINISHED ON THIS ENCHILADA YET. 
          SO BEFORE WE GET TO THE NEXT AGENDA ITEM, ON BEHALF OF THE ERCOT BOARD, I WANNA SAY THANK YOU TO THE STAKEHOLDER COMMUNITY, UH, FOR THE AMOUNT OF WORK THAT'S BEEN PUT IN THE POLICY DISCUSSIONS AROUND THE BATCH ZERO FRAMEWORK. 
          YOU'VE SEEN THE METRICS ABOUT, YOU KNOW, SET A RECORD FOR MOST COMMENTS EVER ON A, UH, ON, ON A STAKEHOLDER PROCESS. 
          UH, THIS WAS A MONUMENTAL EFFORT TO DO THIS TYPE OF POLICY CHANGE THROUGH THE PROCESS IN, IN LESS THAN FOUR MONTHS, THESE TWO REVISION REQUESTS WILL GO DOWN AS MOST COMMENTED. 
          POLICY CHANGE, THAT STAKE ER, ERCOT STAKEHOLDER PROCESS. 
          AS I MENTIONED, THAT TELLS YOU A LOT ABOUT THE LEVEL OF INTEREST IN SUCH A CHANGE, BUT ALSO THE FACT THAT CAME TO US AS A UNANIMOUS DECISION FROM TAC. 
          I ESPECIALLY WANT TO COMPLIMENT KAITLYN AND MARTHA FOR THE DEDICATION AND COORDINATING ALL OF THE STAKEHOLDER MEETINGS AND FOR THE WORKSHOP SO THAT EVERYBODY HAD A VOICE IN THE PROCESS TO CLOSE. 
          I WANNA FURTHER HIGHLIGHT THE EXTRAORDINARY LEADERSHIP EFFORTS OF THE ERCOT TEAM AND THE PUC TEAM AND WORKING CLOSELY TOGETHER TO DEVELOP THIS CHANGE AND TO ADDRESS STAKEHOLDER COMMENTS AS EFFECTIVELY AND AS EFFICIENTLY AS POSSIBLE. 
          JEFF, MATT AND GEE, CHRISTINA AND THE REST OF ERCOT TEAM BARKSDALE, JESSE, AND THE REST OF THE PUC TEAM. 
          YOU SHOULD FEEL PROUD OF WHAT YOU ACCOMPLISHED AND WE SALUTE YOU FOR IT. 
          WE'RE NOT DONE. 
          SO GET STRAP ON FOR, UH, BATCH ONE, BOARD MEMBERS. 
          ANY OTHER FEEDBACK? OKAY, THANK YOU. 
          NOW WE HAVE COMMITTEE 
          [16.1 Finance and Audit (F&A) Committee Report]
REPORTS AND AGENDA ITEM 16. 
          CHRIS CREMEL, CHAIR OF THE, UM, FINANCE AND AUDIT COMMITTEE WILL PRESENT AJE ITEM 16.1, THE FINANCE AND AUDIT COMMITTEE REPORT. 
          CHRIS, PLEASE PROCEED WITH YOUR REPORT. 
          THANK YOU, CHAIRMAN FLORES, UH, FOR THE F AND A COMMITTEE, UH, REPORT, UH, WE MET YESTERDAY. 
          CHAD SEALEY AND STAFF PROVIDED STATUS OF REPORTS SUBMITTED TO ERCOT ETHICS POINT SYSTEM. 
          CHAD ALSO PROVIDED THE HUMAN RESOURCES SUMMARY REPORT. 
          HEY CHRIS, I THINK YOU'RE, THIS WOULD BE A PUBLIC, UM, DISCUSSION THAT SEEMS LIKE THE EXECUTIVE SESSIONS DISCUSSION, SO WE DON'T HAVE ANYTHING SIGNIFICANT TO REPORT. 
          I APOLOGIZE. 
          THAT WAS SIMPLE. 
          UH, PEGGY, HE 
          [16.2 Human Resources and Governance (HR&G) Committee Report]
CHAIR OF THE FINANCE, UH, EXCUSE ME, CHAIR OF THE HUMAN RESOURCES AND GOVERNANCE COMMITTEE WILL PRESENT AGENDA ITEM 16.2, THE HUMAN RESOURCES AND GOVERNANCE COMMITTEE REPORT. 
          PEGGY, PLEASE PROCEED WITH YOUR REPORT. 
          YES, WE'LL HAVE A VERY QUICK REPORT. 
          WE HAD A VERY LIGHT AGENDA IN GENERAL SESSION. 
          THE ONLY SUBSTANTIVE MATTER THAT WE LOOKED AT WAS THE, UH, COMMITTEE SELF-EVALUATIONS THAT WILL BE GOING TO THE VARIOUS COMMITTEES FOR LATER IN THE YEAR. 
          THAT CONCLUDES MY REPORT. 
          [03:00:02]
ALL RIGHT. 
          NEXT WE HAVE, UH, 
          [16.3 Technology and Security (T&S) Committee Report]
JOHN SWENSON, CHAIR OF THE TECHNOLOGY AND SECURITY COMMITTEE WHO WILL PRESENT A JET ITEM 16.3, THE TECHNOLOGY AND SECURITY COMMITTEE REPORT. 
          JOHN, PLEASE PROCEED. 
          WE HAD A FULL SESSION, WHICH I WILL ATTEMPT TO SUMMARIZE IN THE SPIRIT THAT MY FELLOW DIRECTORS HAVE JUST DONE. 
          UM, WE STARTED WITH A DISCUSSION OF AI INFRASTRUCTURE AND LARGE LOAD GROWTH. 
          WE HAD TWO GUEST SPEAKERS FROM NVIDIA, UM, WHO TALKED ABOUT WORK THEY'RE DOING TO ARCHITECT THIS A, A TECHNOLOGY FOR THESE AI DATA CENTERS THAT ALLOW THEM TO BE LOAD RESPONSIVE. 
          UH, AND YOU'VE HEARD SOME FEEDBACK ON THAT ALREADY. 
          UM, IT, IT, IT IS SOMETHING THAT IS STILL IN DEVELOPMENT. 
          UM, BUT I THINK IT PROVIDES, UH, MORE, IT, IT'S HOPE. 
          IT'S A HOPEFUL DEVELOPMENT AND I THINK IT PROVIDES US WITH SOME, UM, INFORMATION THAT WE CAN START ASKING LARGE DATA CENTER LARGE LOADS ABOUT WHEN THEY COME TO INTERCONNECT TO THE GRID. 
          UM, SO THAT WAS VERY HELPFUL. 
          THEN WE THEN HAD A PROJECT UPDATE. 
          UM, AS YOU ALL KNOW, THE LAST YEAR HAS REALLY, THE IT TEAM IN PARTICULAR HAS BEEN CONSUMED WITH DOING RTC. 
          UM, NOW WE'RE SORT OF BACK TO A NORMAL PROFILE OF, OF, OF PROJECTS. 
          WE HAVE SOMETHING LIKE 60 IN THE HOPPER AT THE MOMENT. 
          UM, AND WE LOOKED AT THOSE PROJECTS. 
          WE TRIED TO DO SOME PRIORITIZATION. 
          UH, THEY'RE, THEY'RE IN THE AREAS OF, UH, THE DATA CENTER UPGRADE, UH, WHICH WE DID. 
          WE DID TALK ABOUT IDENTITY ACCESS MANAGEMENT AND THE WEBSITE UPGRADE. 
          UM, WE DID A, WE, WE HAD A, A LITTLE BIT OF A DEEP DIVE ON THE WEBSITE REDESIGN. 
          THE WEBSITE HAS BEEN MORE OR LESS AS IT IS NOW FOR ABOUT 16 YEARS. 
          UH, AND SO THEY'VE DONE QUITE A BIT OF USER-CENTERED DESIGN WORK TO UNDERSTAND WHAT WOULD MAKE IT MORE USABLE BY THE PUBLIC AT LARGE AND MARKET PARTICIPANTS. 
          SO WE, WE WENT THROUGH THAT AND THAT'LL BE COMING LATER THIS YEAR. 
          UM, WE'VE ALLUDED TO TWO NEW OPERATIONAL TOOLS. 
          THE LARGE LOAD CURTAILMENT MANAGER, UH, WITH JEFF JUST TALKED ABOUT AND THE RTOC, WHICH I DON'T REMEMBER. 
          IT'S A REAL-TIME COMMUNICATION TOOL THAT ALLOWS US TO TALK TO MARKET PARTICIPANTS AND BASICALLY COORDINATE ACTIVITIES PARTICULARLY IN, UH, LOAD SHE KIND OF ENVIRONMENTS. 
          UM, AND SO THOSE TOOLS ARE BOTH BEING ROLLED OUT AS, AS WE SPEAK THROUGHOUT THE REST OF THIS YEAR. 
          AND THEN WE HAD A GENERAL SESSION THAT LOOKED AT, UH, NEXT TOPICS. 
          SO THAT CONCLUDES MY REPORT. 
          I THANK YOU JOHN. 
          ANY QUESTIONS FOR ANY OF THE COMMITTEE CHAIRS FOR THEIR, ON THEIR REPORTS? I DON'T SEE ANY. 
          [Convene Executive Session]
OKAY. 
          AT THIS TIME THE BOARD WILL ADJOURN GENERAL SESSION AND CONVENE AN EXECUTIVE SESSION. 
          UH, FOLLOWING EXECUTIVE SESSION. 
          THERE ARE TWO VOTING ITEMS ANTICIPATED, UH, DURING THE, THE GENERAL SESSION. 
          SO GENERAL SESSION WILL RECONVENE AT THE CONCLUSION OF THE EXECUTIVE SESSION. 
          UH, AT THAT TIME WHEN WE RECONVENE, WE'LL ALSO HAVE AN UPDATE REGARDING BOARD MEMBERSHIP. 
          A GENERAL SESSION OF THE ERCOT BOARD OF DIRECTORS MEETING IS NOW RECESSED AND THE WEBCAST WILL BE CONCLUDED. 
          CHAIR GLEASON, THIS MEETING, THE PUBLIC UTILITY COMMISSION OF TEXAS WILL STAND IN RECESS. 
          SO MY RECOMMENDATION IS THAT WE GRAB LUNCH AND TRY TO BE BACK HERE FOR EXECUTIVE SESSION IN 10 MINUTES. 
          SO THAT'D BE A 1303. 
          UH, 1313. 
          UH, 
          [Reconvene General Session]
GOOD AFTERNOON. 
          I'M BILL FLORES ERCOT BOARD CHAIR AND I'M HEREBY RECONVENING THE MEETING OF ERCOT BOARD OF DIRECTORS. 
          I'VE CONFIRMED THAT QUO IS PRESENT IN PERSON BEFORE WE MOVE ON TO OUR OTHER BUSINESS. 
          UH, ACTUALLY WE DON'T NEED TO OPEN UP PUC MEETING. 
          UH, WE DON'T HAVE A QUORUM THERE. 
          [18. Vote on Matters from Executive Session]
WE HAVE TWO VOTING ITEMS FOR AGENDA ITEM 18, VOTE ON THE MATTERS FROM EXECUTIVE SESSION. 
          UH, FIRST I'LL ENTERTAIN A MOTION FOR BOARD APPROVAL OF THE CONTRACT MATTER DISCUSSED DURING EXECUTIVE SESSION UNDER AGENDA ITEM ES 2.2 0.1. 
          SO MOVED. 
          THANK YOU BILL. 
          AND A SECOND, SECOND, SECOND FOR PEGGY. 
          ALL IN FAVOR, AYE. 
          AYE. 
          ALL. 
          UH, ANY OPPOSED? ANY ABSTENTIONS? THAT MATTER IS APPROVED. 
          SECOND, I'LL ENTERTAIN A MOTION FOR BOARD APPROVAL OF THE LITIGATION MATTER DISCUSSED DURING EXECUTIVE SESSION UNDER AGENDA ITEM EES 2.2. 
          POINT TWO. 
          JOHN, THANK YOU. 
          UH, SECOND JULIE. 
          ALL IN FAVOR? AYE. 
          ANY OPPOSED? ANY ABSTENTIONS? OKAY. 
          THAT MATTER IS ALSO APPROVED. 
          [Additional Item]
UH, BEFORE WE ADJOURN, I'D LIKE TO SHARE AN UPDATE REGARDING BOARD MEMBERSHIP. 
          TODAY WILL BE LINDA ANOS LAST MEETING. 
          LINDA'S TERM ENDS AT THE END OF JUNE, AND I WANT TO THANK HER FOR THREE YEARS OF BEING PART OF THE ERCOT BOARD AND HER SERVICE TO 27 MILLION HARD WORK IN TEXAS. 
          HER ABILITY TO CUT THROUGH THE CLUTTER AND ASK THE HARD QUESTIONS HAS BEEN INVALUABLE TO OUR LEADERSHIP AND ON BEHALF OF THE BOARD. 
          WE WISH HER THE BEST OF LUCK. 
          UH, THANK YOU. 
          THIS MEETING OF THE ERCOT BOARD OF DIRECTORS HAS NOW ADJOURNED AND THE WEBCAST WILL BE CONCLUDED.
* 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.