WEBVTT 00:00:16.926 --> 00:00:19.340 (gavel banging) 00:00:19.340 --> 00:00:21.740 This meeting of the Public Utility Commission of Texas 00:00:21.740 --> 00:00:23.260 will come to order to consider matters 00:00:23.260 --> 00:00:24.220 that have been duly posted 00:00:24.220 --> 00:00:27.810 with the Secretary of State of Texas for June 11th, 2021. 00:00:27.810 --> 00:00:30.390 For the record, my name is Peter Lake 00:00:30.390 --> 00:00:32.173 and with me today is Will McAdams. 00:00:33.800 --> 00:00:35.990 Mr. Jenae, let's start with the consent items. 00:00:35.990 --> 00:00:38.020 Could you please walk us through those? 00:00:38.020 --> 00:00:39.180 Good morning Commissioners. 00:00:39.180 --> 00:00:41.460 By individual ballot, the following items were placed 00:00:41.460 --> 00:00:43.450 on your Consent Agenda. 00:00:43.450 --> 00:00:45.703 Items 15 and 26. 00:00:47.212 --> 00:00:48.840 Is there a motion to approve those items? 00:00:48.840 --> 00:00:49.673 So moved. 00:00:49.673 --> 00:00:50.813 Second? 00:00:50.813 --> 00:00:51.646 All in favor, say aye. 00:00:51.646 --> 00:00:52.479 Aye. 00:00:52.479 --> 00:00:53.791 Motion passes. 00:00:53.791 --> 00:00:57.120 At this time we'll open up for general public comment. 00:00:57.120 --> 00:01:00.730 Oral comments related to a specific agenda item 00:01:00.730 --> 00:01:02.380 will be heard when that item is taken up. 00:01:02.380 --> 00:01:04.740 This is reserved for general comments 00:01:04.740 --> 00:01:07.040 related to business of the Commission. 00:01:07.040 --> 00:01:10.230 Speakers will be limited to three minutes each. 00:01:10.230 --> 00:01:13.850 Operator, please go ahead and provide instructions 00:01:13.850 --> 00:01:16.320 to the public on how they can be recognized 00:01:16.320 --> 00:01:17.623 if they wish to speak. 00:01:18.670 --> 00:01:19.503 Yes, sir. 00:01:19.503 --> 00:01:22.250 Ladies and gentlemen, if you do have a public comment, 00:01:22.250 --> 00:01:26.400 please press one, then zero on your phone. 00:01:26.400 --> 00:01:28.160 You may remove yourself from queue 00:01:28.160 --> 00:01:31.550 at any time by pressing one, zero again. 00:01:31.550 --> 00:01:33.930 And if you are using a speaker phone, 00:01:33.930 --> 00:01:37.360 please pick up the handset before pressing the numbers. 00:01:37.360 --> 00:01:39.880 Once again, if you have a public comment at this time, 00:01:39.880 --> 00:01:42.360 it is one, then zero, one moment through. 00:01:42.360 --> 00:01:43.510 Thank you, Colin. 00:01:52.733 --> 00:01:53.940 And again, ladies and gentlemen, 00:01:53.940 --> 00:01:55.290 if you do have a public comment 00:01:55.290 --> 00:01:57.683 it is one, then zero at this time. 00:02:02.000 --> 00:02:03.490 And we do have one line in queue. 00:02:03.490 --> 00:02:04.503 One moment, sir. 00:02:20.581 --> 00:02:23.410 And we'll go to the line of Chris Kilpatrick. 00:02:23.410 --> 00:02:24.310 Your line is open. 00:02:26.330 --> 00:02:28.836 Hi, thank you for allowing me to speak. 00:02:28.836 --> 00:02:33.836 I am a corresponder of electric services. 00:02:34.460 --> 00:02:36.890 Wanted to talk just a little bit 00:02:36.890 --> 00:02:40.861 about my thoughts about ending the moratorium. 00:02:40.861 --> 00:02:42.979 I know it's been spoken before, 00:02:42.979 --> 00:02:45.770 saying that there are a lot allowed programs out there 00:02:45.770 --> 00:02:47.940 that help people now. 00:02:47.940 --> 00:02:51.710 So, I would like to try and lift the order. 00:02:51.710 --> 00:02:53.534 I am one of those people that have been trying 00:02:53.534 --> 00:02:56.920 desperately to get financial help. 00:02:56.920 --> 00:02:58.770 A lot of these places are telling us 00:02:58.770 --> 00:03:03.010 that we have to wait eight weeks or more 00:03:03.010 --> 00:03:07.180 just to have our files reviewed before we even know 00:03:07.180 --> 00:03:11.010 if we're going to be denied or accepted into the program, 00:03:11.010 --> 00:03:14.670 which at this time, does not give anyone enough time to 00:03:14.670 --> 00:03:17.363 get arrangements taken care of. 00:03:18.410 --> 00:03:21.940 Also with those arrangements, I myself, 00:03:21.940 --> 00:03:25.800 had one to where they were going to allow me 00:03:25.800 --> 00:03:27.914 to do a deferred plan. 00:03:27.914 --> 00:03:32.240 Once things were set up, I showed a zero balance due 00:03:34.380 --> 00:03:36.820 and before I could pay anything, 00:03:36.820 --> 00:03:40.005 because I had nothing to pay from what it showed, 00:03:40.005 --> 00:03:42.640 I was taken off that deferred plan. 00:03:42.640 --> 00:03:45.840 And now I'm not able to actually get back on that plan. 00:03:45.840 --> 00:03:47.870 So, I also now have to switch. 00:03:47.870 --> 00:03:49.243 So it's things like this that I think 00:03:49.243 --> 00:03:53.300 that the moratorium does need to be kept in place 00:03:53.300 --> 00:03:56.820 for the time being while people aren't able to 00:03:56.820 --> 00:04:00.050 access a better way to get their bills paid, 00:04:00.050 --> 00:04:02.583 especially with the summer heat coming up. 00:04:03.730 --> 00:04:04.563 Thank you. 00:04:06.470 --> 00:04:08.833 Thank you, Mr. Kilpatrick, for your comments. 00:04:09.920 --> 00:04:11.170 Anyone else in the queue? 00:04:19.360 --> 00:04:20.960 Anyone else in the queue, Colin? 00:04:22.140 --> 00:04:24.650 Yes sir, we'll go to the line of Wendy Howard. 00:04:24.650 --> 00:04:25.723 Your line is open. 00:04:30.550 --> 00:04:32.263 And Ms. Howard, your line is open. 00:04:37.260 --> 00:04:38.820 I have no comment on this matter. 00:04:38.820 --> 00:04:41.603 I'm sorry, I was just trying to get myself out of queue. 00:04:43.049 --> 00:04:43.882 Because I had nothing to pay 00:04:43.882 --> 00:04:44.910 from what it showed. 00:04:44.910 --> 00:04:47.122 She's the one that wants to talk-- 00:04:47.122 --> 00:04:48.588 One moment, please. 00:04:48.588 --> 00:04:50.963 Another line in conference. 00:04:53.070 --> 00:04:57.423 We have Keith Speed, your line is open. 00:04:58.970 --> 00:05:00.130 Okay, yes. 00:05:00.130 --> 00:05:02.100 My name is Keith Speed 00:05:02.100 --> 00:05:06.680 and I manage a small manufacturing company in Dallas. 00:05:06.680 --> 00:05:10.510 We sell almost exclusively to school districts, 00:05:10.510 --> 00:05:14.190 primarily in Texas, but in some other states as well. 00:05:14.190 --> 00:05:19.190 And ANGI is our electric provider and, you know, 00:05:19.440 --> 00:05:22.200 due to COVID, our sales in 2020 00:05:22.200 --> 00:05:26.560 were about 50% less than our 2019 sales. 00:05:26.560 --> 00:05:30.450 Quite frankly, we're just lucky to still be in business 00:05:30.450 --> 00:05:32.223 with every little bit. 00:05:34.450 --> 00:05:38.510 But the schools were closed partially, 00:05:38.510 --> 00:05:42.890 which directly, they were closed totally or partially, 00:05:42.890 --> 00:05:45.650 which directly affected our sales. 00:05:45.650 --> 00:05:47.640 Our electric bills are normally 00:05:47.640 --> 00:05:51.703 about eight to $1,200 per month. 00:05:52.570 --> 00:05:56.780 And due to the February storm, 00:05:56.780 --> 00:06:00.240 our bill went up, that one month, 00:06:00.240 --> 00:06:02.553 went up to almost $40,000. 00:06:04.830 --> 00:06:06.520 We were struggling financially 00:06:06.520 --> 00:06:09.083 before we got that electric bill. 00:06:10.690 --> 00:06:13.328 Anyway, all of our combined payables 00:06:13.328 --> 00:06:17.410 don't even come up to $40,000. 00:06:17.410 --> 00:06:20.970 So, we're just asking that some way or another, 00:06:20.970 --> 00:06:25.043 we can get some relief on this issue. 00:06:26.840 --> 00:06:28.960 Thank you for listening to me. 00:06:28.960 --> 00:06:29.793 Thank you. 00:06:32.920 --> 00:06:36.240 And next, we'll go to the line, one moment please 00:06:37.760 --> 00:06:40.533 of Steve Crawford, your line is open. 00:06:42.070 --> 00:06:43.990 Good morning. 00:06:43.990 --> 00:06:45.910 We're another ANGI customer. 00:06:45.910 --> 00:06:50.100 And we have been laden with ancillary service charges 00:06:50.100 --> 00:06:53.290 as a pass-through with either no description 00:06:53.290 --> 00:06:56.040 or abilities to understand what those descriptions are. 00:06:56.920 --> 00:06:59.524 Furthermore, just like the previous caller, our bills 00:06:59.524 --> 00:07:01.733 with these charges are typically, 00:07:03.240 --> 00:07:05.380 what we're seeing on this ancillary service charge 00:07:05.380 --> 00:07:08.840 is four times the normal amount that we would normally pay. 00:07:08.840 --> 00:07:12.390 We have tactically sought communications 00:07:12.390 --> 00:07:13.660 with the energy provider, 00:07:13.660 --> 00:07:15.620 regarding the lines of communication, 00:07:15.620 --> 00:07:20.260 regarding terms and/or negotiating this rate. 00:07:20.260 --> 00:07:21.930 Up to this point, there has been, 00:07:21.930 --> 00:07:23.570 our broker has been working with them 00:07:23.570 --> 00:07:26.680 diligently trying to open those lines of communication 00:07:26.680 --> 00:07:29.830 and understand not only what those charges are, 00:07:29.830 --> 00:07:34.330 but to negotiate terms along with any other business. 00:07:34.330 --> 00:07:36.930 This is a hit to us, especially in February, you know, 00:07:36.930 --> 00:07:40.340 being a short month and I represent Huckins Honda. 00:07:40.340 --> 00:07:42.820 As you can imagine, during that time, 00:07:42.820 --> 00:07:45.300 we actually, you know, there was a little or no income 00:07:45.300 --> 00:07:48.010 during that point of time when we were laden 00:07:48.010 --> 00:07:50.200 with the these ancillary service charges. 00:07:50.200 --> 00:07:52.110 We're asking for two things: 00:07:52.110 --> 00:07:54.810 one that the moratorium for disconnects be extended 00:07:54.810 --> 00:07:56.310 while we worked through this. 00:07:56.310 --> 00:07:59.340 Furthermore, we would appreciate any type 00:07:59.340 --> 00:08:03.365 of avenues and/or abilities from this Commission 00:08:03.365 --> 00:08:08.187 that would engage our provider in negotiating these terms. 00:08:08.187 --> 00:08:10.580 I thank you for your time. 00:08:10.580 --> 00:08:11.880 Thank you, Mr. Crawford. 00:08:15.064 --> 00:08:17.143 Just one moment, please. 00:08:20.680 --> 00:08:24.400 We'll go to the line of Maribel Marino. 00:08:24.400 --> 00:08:25.313 Your line is open. 00:08:26.950 --> 00:08:28.914 Hi, thank you so much for taking my call. 00:08:28.914 --> 00:08:33.914 I worked for a retail electric provider, Windrose Energy. 00:08:33.970 --> 00:08:36.870 We're a small electric company 00:08:36.870 --> 00:08:41.760 and I'm calling about the winter weather advisory 00:08:41.760 --> 00:08:44.970 being lifted, on concerns and comments on that. 00:08:44.970 --> 00:08:48.460 I know last time you guys mentioned on the last meeting 00:08:48.460 --> 00:08:52.820 about programs and assistance and different payment plans 00:08:52.820 --> 00:08:54.453 and yes, we do have those. 00:08:55.330 --> 00:08:58.020 We do have customers call us for assistance, 00:08:58.020 --> 00:09:01.530 but then you also have customers that have not paid 00:09:01.530 --> 00:09:05.287 since January are not accepting our calls, 00:09:05.287 --> 00:09:07.990 are not returning our emails, 00:09:07.990 --> 00:09:11.420 are not having any kind of line of communication with us 00:09:11.420 --> 00:09:15.655 and to a small business, electric company as ours, 00:09:15.655 --> 00:09:18.286 it's really affecting us as well. 00:09:18.286 --> 00:09:22.470 And again, we sent out normal emails 00:09:22.470 --> 00:09:24.220 normal calls, normal everything, 00:09:24.220 --> 00:09:26.247 and there's just, you're gonna have good customers 00:09:26.247 --> 00:09:27.890 and you're gonna bad customers. 00:09:27.890 --> 00:09:32.160 And unfortunately, there are a lot of assistance out there 00:09:32.160 --> 00:09:35.520 that are helping customers pay and you know, 00:09:35.520 --> 00:09:37.620 2-1-1 and all the other programs that you guys 00:09:37.620 --> 00:09:40.160 stated in June meetings. 00:09:40.160 --> 00:09:42.454 I feel that lifting this moratorium 00:09:42.454 --> 00:09:46.920 is also gonna help this small business, electric companies, 00:09:46.920 --> 00:09:49.319 which we're trying to stay alive as well 00:09:49.319 --> 00:09:51.675 as electric companies. 00:09:51.675 --> 00:09:53.220 We're not huge like TSU. 00:09:53.220 --> 00:09:56.250 We're reliant, so we can survive months and months 00:09:56.250 --> 00:09:58.010 and months without customers not paying 00:09:58.010 --> 00:09:59.300 their electric bills. 00:09:59.300 --> 00:10:01.300 So lift in this here would really help 00:10:01.300 --> 00:10:04.310 the small business electric companies 00:10:04.310 --> 00:10:06.370 to have the customers start calling us 00:10:06.370 --> 00:10:07.910 to try ask for assistance, 00:10:07.910 --> 00:10:09.370 to ask for payment arrangements 00:10:09.370 --> 00:10:10.430 or defer payment plans, 00:10:10.430 --> 00:10:13.910 because right now and not just existing customers 00:10:13.910 --> 00:10:15.540 that are not calling us but 00:10:15.540 --> 00:10:17.850 we also get a lot of fraud customers that are 00:10:17.850 --> 00:10:22.090 consistently enrolling fraudulently. 00:10:22.090 --> 00:10:24.400 And we can't even disconnect customers right now 00:10:24.400 --> 00:10:25.980 because of the moratorium. 00:10:25.980 --> 00:10:27.970 So again, I want to thank you guys 00:10:27.970 --> 00:10:31.463 for taking my call and listening to my concerns. 00:10:32.410 --> 00:10:33.310 Thank you ma'am. 00:10:37.255 --> 00:10:39.080 And there are no other lines 00:10:39.080 --> 00:10:40.380 for comments at this time. 00:10:42.570 --> 00:10:44.277 Thank you operator. 00:10:44.277 --> 00:10:46.530 Having nobody else wishing to 00:10:46.530 --> 00:10:49.560 address the Commission, public comment is now closed. 00:10:49.560 --> 00:10:51.773 We'll move on to the main agenda. 00:10:53.690 --> 00:10:55.370 I don't have anything for item one, do you? 00:10:55.370 --> 00:10:56.650 I do not. 00:10:56.650 --> 00:10:58.980 Alright, item two, 00:10:58.980 --> 00:11:01.283 which we just heard a lot of comment about, 00:11:01.283 --> 00:11:05.053 that you filed a memo recently on that. 00:11:06.460 --> 00:11:07.743 Any updated thoughts? 00:11:09.330 --> 00:11:13.243 Look, I'm taking all those comments to heart. 00:11:14.270 --> 00:11:15.760 My memo still stands. 00:11:15.760 --> 00:11:20.570 I believe that the emergency provisions, 00:11:20.570 --> 00:11:23.821 the emergency orders need to be lifted. 00:11:23.821 --> 00:11:26.940 In my view, the emergency has passed 00:11:26.940 --> 00:11:31.940 and we need a catalyst in the market to 00:11:35.570 --> 00:11:39.350 break this log jam, to get people contacting the reps. 00:11:39.350 --> 00:11:40.580 And again, from the diocese, 00:11:40.580 --> 00:11:42.270 I would urge every consumer subject 00:11:42.270 --> 00:11:45.130 to a disconnect moratorium to contact their rep 00:11:45.965 --> 00:11:50.150 and ask for a deferred payment plan. 00:11:50.150 --> 00:11:53.330 Under rules, they are required to offer that 00:11:53.330 --> 00:11:56.036 for up to five billing cycles. 00:11:56.036 --> 00:11:59.259 We need you to at least ask for that 00:11:59.259 --> 00:12:02.670 so that at the least, over those five billing cycles, 00:12:02.670 --> 00:12:07.670 you can manage or break down the total obligation 00:12:09.907 --> 00:12:12.613 that has been incurred up to this point. 00:12:13.830 --> 00:12:18.940 I think long-term, and the reason I filed my memo 00:12:18.940 --> 00:12:21.450 and when I filed my memo is because 00:12:21.450 --> 00:12:23.930 weather is a pressing condition. 00:12:23.930 --> 00:12:27.400 I wanted to start this so that we could at least get ahead 00:12:27.400 --> 00:12:30.730 of the summer months and the immediate summer moratoriums, 00:12:30.730 --> 00:12:33.400 we've already had one going into effect 00:12:33.400 --> 00:12:38.400 because of the heat index threshold being achieved. 00:12:38.700 --> 00:12:41.440 So we're going to see that more and more. 00:12:41.440 --> 00:12:46.057 The longer we stay in this kind of regulatory limbo, 00:12:46.057 --> 00:12:49.700 the more these consumers are going to just be rolling 00:12:49.700 --> 00:12:53.267 these large averages into the fall. 00:12:53.267 --> 00:12:55.763 Having heard the testimony, 00:12:57.460 --> 00:13:02.460 I would say any type of plans that 00:13:02.630 --> 00:13:05.940 appear to be circumventing Commission rules 00:13:05.940 --> 00:13:07.660 with terms of service agreements 00:13:08.533 --> 00:13:11.610 are certainly subject to, 00:13:11.610 --> 00:13:14.920 I believe we need to look at that on a case by case basis. 00:13:14.920 --> 00:13:17.550 I think we need these small commercial 00:13:17.550 --> 00:13:20.830 and even residential consumers calling into the Commission. 00:13:20.830 --> 00:13:23.010 Let us start working these problems 00:13:23.010 --> 00:13:25.580 because ultimately, this event is going to cause us 00:13:25.580 --> 00:13:30.530 to refine the left and right limits 00:13:30.530 --> 00:13:33.340 of what both consumers can expect 00:13:33.340 --> 00:13:36.523 and for market participants to operate within. 00:13:37.360 --> 00:13:40.490 If people are getting loose with their terms and conditions 00:13:40.490 --> 00:13:43.370 to where it's circumventing the intent 00:13:43.370 --> 00:13:45.350 of both the law and Commission rules, 00:13:45.350 --> 00:13:46.790 then I want to be a Commissioner 00:13:46.790 --> 00:13:49.240 and I'm sure you do, to take a look at that. 00:13:49.240 --> 00:13:50.073 Absolutely. 00:13:50.073 --> 00:13:51.800 And that's why we have our customer protection division. 00:13:51.800 --> 00:13:52.633 You bet. 00:13:52.633 --> 00:13:53.810 And they do a great job 00:13:53.810 --> 00:13:56.860 and let us start working the problem. 00:13:56.860 --> 00:13:59.080 But anyway, having said all that, 00:13:59.080 --> 00:14:01.630 that's my defense of the memo. 00:14:01.630 --> 00:14:03.930 I stand behind it, love to know your thoughts. 00:14:06.110 --> 00:14:07.360 Appreciate the update. 00:14:07.360 --> 00:14:08.193 As I said before, 00:14:08.193 --> 00:14:10.680 this is a delicate balance between financial impact 00:14:10.680 --> 00:14:12.450 on consumers and households 00:14:13.340 --> 00:14:16.220 and the economic health of electric providers 00:14:16.220 --> 00:14:17.883 in our competitive marketplace. 00:14:20.720 --> 00:14:24.253 It's a tough challenge to find that balance. 00:14:25.780 --> 00:14:27.450 But at this point, I think you're right. 00:14:27.450 --> 00:14:30.810 We do need to move forward with lifting that, 00:14:30.810 --> 00:14:35.367 but I would say one, we need to encourage 00:14:35.367 --> 00:14:38.330 every consumer who's facing this kind of challenge 00:14:38.330 --> 00:14:40.983 to contact our customer protection division. 00:14:41.890 --> 00:14:44.240 That's available on our website. 00:14:44.240 --> 00:14:47.130 And the other thing I'd say 00:14:47.130 --> 00:14:51.930 is if we're going to lift this disconnect moratorium, 00:14:51.930 --> 00:14:56.870 say we need to not have that go in effect for seven days. 00:14:56.870 --> 00:14:58.162 Okay. 00:14:58.162 --> 00:15:03.162 Give folks some time to prepare for that. 00:15:04.160 --> 00:15:06.070 And I would also say that 00:15:06.070 --> 00:15:09.320 once the disconnect notice is lifted, 00:15:09.320 --> 00:15:10.703 the moratorium is lifted, 00:15:11.610 --> 00:15:16.610 any retail electric provider who plans 00:15:17.220 --> 00:15:21.500 on implementing a disconnect needs to send an updated 00:15:21.500 --> 00:15:23.768 disconnect notice to the customers. 00:15:23.768 --> 00:15:28.768 Customers deserve to know their current standing 00:15:28.860 --> 00:15:31.040 with their electric provider, 00:15:31.040 --> 00:15:34.550 current balances, and only once that new, 00:15:34.550 --> 00:15:36.960 updated disconnect notice has been provided 00:15:38.520 --> 00:15:42.170 can that provider start the normal process 00:15:42.170 --> 00:15:43.880 to an actual disconnect. 00:15:43.880 --> 00:15:44.713 Does that make sense? 00:15:44.713 --> 00:15:45.620 I 100% agree with that. 00:15:45.620 --> 00:15:46.830 So let me recapture this. 00:15:46.830 --> 00:15:49.540 And I kind of heard similar feedback. 00:15:49.540 --> 00:15:51.840 So, to recapture what you just said, 00:15:51.840 --> 00:15:56.220 we expect reps to re-notice all of their customers 00:15:56.220 --> 00:16:01.220 that are behind, subject to the the moratorium being lifted 00:16:01.220 --> 00:16:04.110 and that we understand that customers have been sent, 00:16:04.110 --> 00:16:06.690 some customers have been sent disconnect notices 00:16:06.690 --> 00:16:08.620 in the past during the moratorium, 00:16:08.620 --> 00:16:10.640 but we believe that such previous communication 00:16:10.640 --> 00:16:13.747 would not serve as an adequate notice under 00:16:13.747 --> 00:16:16.270 what we're discussing now. 00:16:16.270 --> 00:16:17.320 That's my belief, yes. 00:16:17.320 --> 00:16:18.800 Okay, so that's mine. 00:16:18.800 --> 00:16:21.010 I state this for staff as we start to work 00:16:21.010 --> 00:16:24.720 through this on a case-by-case basis, you know, 00:16:24.720 --> 00:16:26.370 we're both saying the same thing. 00:16:27.990 --> 00:16:28.823 Agreed. 00:16:29.677 --> 00:16:32.600 Does that timing work for you? 00:16:32.600 --> 00:16:36.890 Yeah, I'll be glad for whatever I can get, you know, 00:16:36.890 --> 00:16:41.170 on this reconciling this policy issue. 00:16:41.170 --> 00:16:43.448 Yeah, well, I don't want customers 00:16:43.448 --> 00:16:48.448 and consumers to be shell shocked by 00:16:48.640 --> 00:16:50.821 an immediate I don't either. 00:16:50.821 --> 00:16:53.550 implementation of that. 00:16:53.550 --> 00:16:56.440 And I do feel strongly that the customers 00:16:56.440 --> 00:17:00.270 should know an updated balance, updated standing. 00:17:00.270 --> 00:17:02.434 Some customers may be on payment plans already 00:17:02.434 --> 00:17:04.440 but there's an entire universe of possibilities 00:17:04.440 --> 00:17:06.210 but they should know, before disconnected, 00:17:06.210 --> 00:17:07.710 they should know they're standing with their provider. 00:17:07.710 --> 00:17:10.350 Ultimately, I think, with what we were talking 00:17:10.350 --> 00:17:11.940 about at the last open meeting 00:17:11.940 --> 00:17:14.350 and now the the seven day bridge into 00:17:14.350 --> 00:17:15.410 the moratorium being lifted, 00:17:15.410 --> 00:17:19.190 that's 14 days of additional notice, 00:17:19.190 --> 00:17:22.230 plus the 10 days of notice of disconnection 00:17:22.230 --> 00:17:24.480 that are already provided for in rules. 00:17:24.480 --> 00:17:28.480 So, that's a healthy amount of time to get the word out. 00:17:28.480 --> 00:17:31.310 Everybody subject to this needs to be in touch 00:17:31.310 --> 00:17:32.620 with their rep after this. 00:17:32.620 --> 00:17:36.000 And I urge the press to promote this as broadly 00:17:36.000 --> 00:17:38.480 as possible so that the general public knows, 00:17:38.480 --> 00:17:40.390 get in touch with your retail provider. 00:17:40.390 --> 00:17:43.670 Get them on notice that you want a deferred payment plan 00:17:43.670 --> 00:17:45.920 and then get the call on the PUC 00:17:45.920 --> 00:17:48.590 if they push back on you so that we can work those. 00:17:48.590 --> 00:17:50.570 I'm sure Mr. Barlow and our communications team 00:17:50.570 --> 00:17:52.360 can help facilitate 00:17:52.360 --> 00:17:54.463 getting that information out to the public. 00:17:56.390 --> 00:17:59.360 Is there a motion to issue an order consistent 00:17:59.360 --> 00:18:01.090 with the discussion we've had 00:18:01.090 --> 00:18:04.790 if the diocese finding that good cause no longer exists 00:18:04.790 --> 00:18:07.050 for granting exceptions to the rules listed 00:18:07.050 --> 00:18:10.930 in the Commission's order issued February 21, 2021? 00:18:10.930 --> 00:18:12.940 So with one condition on this, 00:18:12.940 --> 00:18:15.470 and I think we've talked through this with staff 00:18:15.470 --> 00:18:16.890 and I'd like this read in 00:18:18.920 --> 00:18:20.780 as one additional condition. 00:18:20.780 --> 00:18:25.170 On March 26th of 2020, the Commission issued 00:18:25.170 --> 00:18:29.320 an order in project 50664 directing all retail 00:18:29.320 --> 00:18:31.470 electric providers to offer a deferred payment plan 00:18:31.470 --> 00:18:36.040 to customers upon request regardless of qualification. 00:18:36.040 --> 00:18:38.550 An order issued under July 16th, 2020 00:18:38.550 --> 00:18:40.170 renewed this directive. 00:18:40.170 --> 00:18:43.303 I would also move as an add on 00:18:43.303 --> 00:18:45.370 to what you just stated, 00:18:45.370 --> 00:18:48.910 to continue this specific exception to Commission rules 00:18:48.910 --> 00:18:52.803 under the November 12th, 2021 directive. 00:18:53.850 --> 00:18:55.140 So moved. 00:18:55.140 --> 00:18:56.870 And seconded all in favor, say aye. 00:18:56.870 --> 00:18:59.193 Aye Aye, motion passes. 00:19:00.150 --> 00:19:02.610 Stephen, does that satisfy your? 00:19:02.610 --> 00:19:03.711 Yes, sir. 00:19:03.711 --> 00:19:07.350 That directive will end on November 12th 00:19:07.350 --> 00:19:09.660 unless the Commission acts before that day 00:19:09.660 --> 00:19:12.703 to do something else. Right. 00:19:12.703 --> 00:19:14.734 All right. Commissioners? 00:19:14.734 --> 00:19:15.567 Yes ma'am? 00:19:15.567 --> 00:19:17.950 Just to be clear that we understand 00:19:17.950 --> 00:19:21.982 your direction explicitly, that is the order will call 00:19:21.982 --> 00:19:26.705 for the moratorium to end seven days from now. 00:19:26.705 --> 00:19:27.538 Correct. 00:19:27.538 --> 00:19:29.430 And following that seven day period 00:19:29.430 --> 00:19:32.770 is when the reps are authorized to begin 00:19:32.770 --> 00:19:35.280 sending the 10 day disconnect notices. 00:19:35.280 --> 00:19:36.396 Yes ma'am. Is that correct? 00:19:36.396 --> 00:19:37.710 That is correct. Thank you very much. 00:19:37.710 --> 00:19:40.743 Thank you for that clarification. 00:19:40.743 --> 00:19:44.240 I don't have anything for items three through 10. 00:19:44.240 --> 00:19:45.544 You, Will? I do not. 00:19:45.544 --> 00:19:47.668 All right. 00:19:47.668 --> 00:19:49.568 That'll take us to item 11, Mr. Jenae, 00:19:50.440 --> 00:19:51.790 please lay that out for us. 00:19:54.430 --> 00:19:58.200 Commissioners, before you is docket item 11, I'm sorry, 00:19:58.200 --> 00:20:01.110 is docket for 47647 is the application 00:20:01.110 --> 00:20:05.848 of Rencon Water Supply Corporation to amend their CCN. 00:20:05.848 --> 00:20:08.330 You have before you a proposed order 00:20:08.330 --> 00:20:11.610 that would add a little over 10,000 acres 00:20:11.610 --> 00:20:14.433 to their certificated service area. 00:20:14.433 --> 00:20:19.003 I filed a memo that proposes changes to that proposed order. 00:20:20.610 --> 00:20:22.560 This seems like a pretty deliberate and thorough process. 00:20:22.560 --> 00:20:26.740 Staff did a good job of making sure it was 00:20:28.175 --> 00:20:30.500 at appropriate scale. 00:20:30.500 --> 00:20:31.740 Any thoughts on this, Will? 00:20:31.740 --> 00:20:34.985 Yeah, as I looked at the maps filed 00:20:34.985 --> 00:20:38.470 and just as we work together on these cases, 00:20:38.470 --> 00:20:43.434 the way I kind of was viewing the application here, 00:20:43.434 --> 00:20:48.370 it didn't appear to box in any existing, adjacent utilities. 00:20:48.370 --> 00:20:52.500 So, again, that mission creep or land grab phenomenon 00:20:52.500 --> 00:20:57.030 that we're always so concerned about was not present here. 00:20:57.030 --> 00:21:01.870 So, it looked consistent with existing Commission policy. 00:21:01.870 --> 00:21:03.380 Agreed, motion to approve 00:21:03.380 --> 00:21:04.980 the proposed order with corrections? 00:21:04.980 --> 00:21:06.740 So moved. 00:21:06.740 --> 00:21:08.560 Second, all in favor, aye. 00:21:08.560 --> 00:21:10.373 Aye Aye, motion passes. 00:21:11.227 --> 00:21:14.570 Next, 12 was removed from the agenda. 00:21:14.570 --> 00:21:16.453 13 is our next item, Mr. Jenae? 00:21:16.453 --> 00:21:19.900 Item 13 is docket number 50197. 00:21:19.900 --> 00:21:22.376 It's the application of Timber Cross Partners 00:21:22.376 --> 00:21:25.170 for authority to change their rates. 00:21:25.170 --> 00:21:28.200 What you have before you is a draft preliminary order 00:21:28.200 --> 00:21:30.223 and chairman, you filed a memo on this. 00:21:31.460 --> 00:21:32.293 I did. 00:21:32.293 --> 00:21:33.190 Did you have a chance to review that, Will? 00:21:33.190 --> 00:21:34.720 I did. 00:21:34.720 --> 00:21:36.570 The additional questions you asked, 00:21:36.570 --> 00:21:38.420 I completely agree with. 00:21:38.420 --> 00:21:42.314 I think just drilling down on what 00:21:42.314 --> 00:21:44.780 information is being provided, you know, 00:21:44.780 --> 00:21:46.853 to justify it is more than appropriate. 00:21:47.970 --> 00:21:49.800 So, I'm all on board with your memo. 00:21:49.800 --> 00:21:50.710 I appreciate it. 00:21:50.710 --> 00:21:53.626 I think it's important in a case like this 00:21:53.626 --> 00:21:55.440 to make sure we have a clear understanding 00:21:55.440 --> 00:21:56.750 of how they're reconciling 00:21:58.710 --> 00:22:00.470 the proposed flat rate revenues 00:22:00.470 --> 00:22:03.914 with what is a variable rate level of costs 00:22:03.914 --> 00:22:06.330 and how, both for the customer's production, 00:22:06.330 --> 00:22:11.283 and to ensure ongoing integrity of that operation. 00:22:12.880 --> 00:22:15.760 I'd entertain a motion to issue that preliminary order 00:22:15.760 --> 00:22:16.690 with the additional, 00:22:16.690 --> 00:22:18.640 including the additional issues we've discussed. 00:22:18.640 --> 00:22:21.442 Yeah, move to approve the draft preliminary order 00:22:21.442 --> 00:22:23.800 as modified by your memo. 00:22:23.800 --> 00:22:24.633 Second. 00:22:24.633 --> 00:22:25.466 All in favor, say aye. 00:22:25.466 --> 00:22:26.793 Aye, motion passes. 00:22:27.670 --> 00:22:29.200 Next item is number 14. 00:22:29.200 --> 00:22:30.560 Mr. Jenae? 00:22:30.560 --> 00:22:34.050 Item 14 is docket 50678. 00:22:34.050 --> 00:22:37.090 It's the application of Utilities Investment Company 00:22:37.090 --> 00:22:39.540 to amend their CCN. 00:22:39.540 --> 00:22:41.860 Before you, you have a revised, 00:22:41.860 --> 00:22:43.850 it's actually the second revised proposed order 00:22:43.850 --> 00:22:48.680 dated June 9th that would add 3,500 acres approximately 00:22:48.680 --> 00:22:50.763 to its certificated service area. 00:22:51.716 --> 00:22:55.630 This company currently serves 257 customers 00:22:55.630 --> 00:22:59.603 but they are expecting to serve near 6,000 in the future. 00:23:00.610 --> 00:23:01.443 Thank you. 00:23:01.443 --> 00:23:05.990 I know this is addressing substantial growth 00:23:05.990 --> 00:23:08.250 and some early concerns staff had 00:23:08.250 --> 00:23:10.220 about the true need for that growth 00:23:10.220 --> 00:23:12.563 and requests for that service had been addressed. 00:23:13.750 --> 00:23:14.897 With that, I mean, I think it's, 00:23:14.897 --> 00:23:16.800 that problem being addressed, 00:23:16.800 --> 00:23:19.510 it seems pretty straightforward. 00:23:19.510 --> 00:23:20.343 Agreed. 00:23:20.343 --> 00:23:21.176 Growth follows track. 00:23:21.176 --> 00:23:24.580 So, the need is established. 00:23:24.580 --> 00:23:25.490 All right, is there a motion 00:23:25.490 --> 00:23:28.650 to approve the revised proposed order? 00:23:28.650 --> 00:23:29.510 So moved. 00:23:29.510 --> 00:23:31.030 Second, all in favor, say aye. 00:23:31.030 --> 00:23:33.200 Aye, motion passes. 00:23:33.200 --> 00:23:34.390 15 was consented. 00:23:34.390 --> 00:23:37.840 Next item is 16, Mr. Jenae? 00:23:37.840 --> 00:23:42.210 Item 16 is docket 52077. 00:23:42.210 --> 00:23:44.230 This is Commission staff's petition 00:23:44.230 --> 00:23:47.354 for an order appointing a temporary manager 00:23:47.354 --> 00:23:49.573 for this utility. 00:23:50.720 --> 00:23:54.790 We have scheduled a separate open meeting 00:23:54.790 --> 00:23:58.113 to conduct a hearing on this petition. 00:23:59.650 --> 00:24:00.483 All right, thank you sir. 00:24:00.483 --> 00:24:04.540 At this point, the current open meeting of the Commission 00:24:04.540 --> 00:24:08.350 will recess at 9:57 AM from this open meeting 00:24:08.350 --> 00:24:11.373 to take up item in the separate hearing. 00:24:12.360 --> 00:24:14.190 I would wait just a couple minutes 00:24:14.190 --> 00:24:16.570 to make sure our court reporter is 00:24:16.570 --> 00:24:19.156 getting their stuff switched on. 00:24:19.156 --> 00:24:21.633 All right, we will stay recessed for a minute or two. 00:24:40.432 --> 00:24:43.320 All right, at this point, we will now convene 00:24:43.320 --> 00:24:46.370 this separate hearing and call up staff. 00:24:46.370 --> 00:24:48.475 Call open meeting for the items that we posted. 00:24:48.475 --> 00:24:50.930 I will convene this open meeting for items 00:24:50.930 --> 00:24:52.320 duly posted to the Secretary of State 00:24:52.320 --> 00:24:55.120 for June 11th, 2021. 00:24:55.120 --> 00:24:57.970 At this point, the Commission calls staff to present 00:24:57.970 --> 00:25:00.100 on this issue. 00:25:00.100 --> 00:25:01.500 Good morning, Commissioners. 00:25:01.500 --> 00:25:04.730 I call to order docket number 52077, 00:25:04.730 --> 00:25:07.289 which is Commission staff's petition for an order 00:25:07.289 --> 00:25:10.822 appointing a temporary manager for Anne Robinson, DBA, 00:25:10.822 --> 00:25:13.430 Beachview Acres Water Association. 00:25:13.430 --> 00:25:15.410 This is Katy Marks assisting the Commissioners 00:25:15.410 --> 00:25:17.620 and the purpose of this hearing is to determine whether 00:25:17.620 --> 00:25:20.180 a temporary manager should be appointed. 00:25:20.180 --> 00:25:23.950 We had a pre-hearing conference on Wednesday, June 9th, 2021 00:25:23.950 --> 00:25:27.390 at 8:30 AM and we admitted three exhibits 00:25:27.390 --> 00:25:29.113 which should be in front of you. 00:25:30.850 --> 00:25:33.400 Exhibit one is the affidavit of Tammy Davis, 00:25:33.400 --> 00:25:37.740 which was filed by Commission staff on June 4th, 2021. 00:25:37.740 --> 00:25:40.410 Exhibit 2 is the affidavit of Patricia Garcia, 00:25:40.410 --> 00:25:43.980 filed by Commission staff on June 4th, 2021. 00:25:43.980 --> 00:25:47.620 The third exhibit is marked as Hillco Exhibit One 00:25:47.620 --> 00:25:51.360 and was filed by Hillco on June 9th, 2021 00:25:51.360 --> 00:25:54.564 and is the application of Beachview Acres Water Association 00:25:54.564 --> 00:25:57.980 and Hillco United Services, Inc., 00:25:57.980 --> 00:26:02.260 DBA Hillco H2O for a sale transfer or merger 00:26:02.260 --> 00:26:05.690 of facilities and certificate rights in Hill County. 00:26:05.690 --> 00:26:08.913 No witnesses were sworn at the pre-hearing conference. 00:26:08.913 --> 00:26:10.423 Any questions so far? 00:26:11.949 --> 00:26:12.939 None from me, thank you. 00:26:12.939 --> 00:26:14.434 None. So at this time, 00:26:14.434 --> 00:26:15.267 we'll take appearances. 00:26:15.267 --> 00:26:17.210 We'll start with Commission staff. 00:26:17.210 --> 00:26:19.509 Good morning, Commissioners and your honor. 00:26:19.509 --> 00:26:21.270 My name is Justin Adkins. 00:26:21.270 --> 00:26:24.131 I'm appearing on behalf of Commission staff. 00:26:24.131 --> 00:26:25.973 Do we have anyone from Hillco? 00:26:30.160 --> 00:26:30.993 Hearing nothing, 00:26:30.993 --> 00:26:33.070 have you heard from Ms. Robinson, Mr. Adkins? 00:26:33.070 --> 00:26:34.190 I have not. 00:26:34.190 --> 00:26:35.637 Perfect. 00:26:35.637 --> 00:26:37.660 Therefore, we'll move to opening statements. 00:26:37.660 --> 00:26:39.910 Do you have an opening statement? 00:26:39.910 --> 00:26:41.783 Yes, I do, just a short one. 00:26:42.622 --> 00:26:47.510 Commissioners, Beachview Acres has abandoned operations 00:26:47.510 --> 00:26:50.583 of its public water system in Hill County. 00:26:52.140 --> 00:26:56.410 The abandonment was constituted by numerous violations 00:26:56.410 --> 00:26:59.780 and Hillco was previously appointed temporary manager 00:26:59.780 --> 00:27:04.780 of the water system by the TCEQ, June 1st, 2020 00:27:06.481 --> 00:27:11.104 and has continued serving as temporary manager since then. 00:27:11.104 --> 00:27:15.820 All these facts are laid out in staff's petition 00:27:15.820 --> 00:27:20.820 and so, as the judge noted, there is an STM application 00:27:21.792 --> 00:27:25.963 at issue in docket number 51549. 00:27:28.153 --> 00:27:33.153 Hillco basically agrees to act as temporary manager 00:27:33.741 --> 00:27:37.140 during the pendency of this docket 00:27:37.140 --> 00:27:41.080 and I will note that, while we haven't heard from 00:27:41.080 --> 00:27:44.380 Anne Robinson, the owner of Beachview Acres, 00:27:44.380 --> 00:27:49.380 she did sign an affidavit for the STM application. 00:27:51.180 --> 00:27:52.013 That's all. 00:27:53.810 --> 00:27:55.880 I assume, Mr. Adkins, you don't have any witnesses 00:27:55.880 --> 00:27:57.030 to present this morning? 00:27:57.030 --> 00:27:58.320 That's correct. 00:27:58.320 --> 00:28:00.624 Commissioners, do you have any questions? 00:28:00.624 --> 00:28:01.992 I don't have any questions. Will? 00:28:01.992 --> 00:28:03.407 I don't either. 00:28:03.407 --> 00:28:04.750 Do you have any closing arguments? 00:28:04.750 --> 00:28:05.830 I do not. 00:28:05.830 --> 00:28:08.530 Perfect, does anyone have anything else? 00:28:08.530 --> 00:28:10.030 Hearing nothing, we are adjourned. 00:28:10.030 --> 00:28:11.220 Thank you. 00:28:11.220 --> 00:28:12.630 So sorry, you close this opening 00:28:12.630 --> 00:28:15.340 and then we'll reconvene meeting previously. 00:28:15.340 --> 00:28:20.330 All right, this hearing is hereby concluded, 10:01 AM 00:28:20.330 --> 00:28:24.810 and the Commission will resume its normal public meeting. 00:28:24.810 --> 00:28:26.580 Give us just a moment. 00:28:51.670 --> 00:28:52.503 Thank you. 00:28:53.430 --> 00:28:56.100 This regular hearing of the Commission 00:28:56.100 --> 00:29:01.100 or this public meeting is now reconvened at 10:02 AM. 00:29:04.785 --> 00:29:07.830 Any other thoughts more broadly? 00:29:07.830 --> 00:29:11.812 No, I think with the recent filings, 00:29:11.812 --> 00:29:15.604 issues that have previously been highlighted 00:29:15.604 --> 00:29:18.600 have been somewhat resolved. 00:29:18.600 --> 00:29:22.703 So, I'm okay moving forward as recommended. 00:29:25.207 --> 00:29:28.122 These water systems are tough to address, 00:29:28.122 --> 00:29:31.723 so I appreciate Hillco taking this on. 00:29:34.030 --> 00:29:38.410 I'd entertain a motion to find, several findings. 00:29:38.410 --> 00:29:40.000 One, Beachview Acres Water Association 00:29:40.000 --> 00:29:41.363 has abandoned operations. 00:29:42.300 --> 00:29:45.220 To appoint Hillco as temporary manager for that utility, 00:29:45.220 --> 00:29:48.440 set temporary manager compensation at $12.00 00:29:48.440 --> 00:29:49.993 per connection per month. 00:29:50.896 --> 00:29:54.700 Waive the requirement for Hillco to post financial 00:29:54.700 --> 00:29:56.250 assurances with the Commission. 00:29:57.090 --> 00:30:01.060 And also, direct the Office of Policy and Docket Management 00:30:01.060 --> 00:30:04.710 to draft an order consistent with previous orders 00:30:04.710 --> 00:30:06.650 to appoint temporary managers. 00:30:06.650 --> 00:30:08.500 So moved. So moved. 00:30:08.500 --> 00:30:10.487 Second, all in favor, say aye. 00:30:10.487 --> 00:30:12.303 Aye. Aye, motion passes. 00:30:15.936 --> 00:30:19.737 I don't have anything for 17 and 18. 00:30:19.737 --> 00:30:20.993 Do you, Will? I do not. 00:30:21.964 --> 00:30:25.220 That'll take us to 19, Mr. Jenae. 00:30:25.220 --> 00:30:28.160 Item 19 is docket 50812. 00:30:28.160 --> 00:30:29.740 This is the application of 00:30:29.740 --> 00:30:32.180 Rayburn Country Electric Cooperative 00:30:32.180 --> 00:30:35.594 to amend their CCN for a transmission line. 00:30:35.594 --> 00:30:39.730 We have a proposal for decision to recommend 00:30:39.730 --> 00:30:43.040 to amend that line using Route West-C. 00:30:43.040 --> 00:30:46.990 A number of parties filed exceptions and replies. 00:30:46.990 --> 00:30:49.090 The ALJs did not amend the PFD 00:30:49.090 --> 00:30:51.160 in response to those exceptions. 00:30:51.160 --> 00:30:54.653 The Commission has granted oral argument on this matter. 00:30:56.968 --> 00:30:59.410 I know we have a number of votes in the queue 00:30:59.410 --> 00:31:00.521 for oral argument. 00:31:00.521 --> 00:31:02.090 Does that work with you to go ahead 00:31:02.090 --> 00:31:03.368 and hear those votes first? 00:31:03.368 --> 00:31:04.419 Yes sir. 00:31:04.419 --> 00:31:05.506 Go onto our discussion? 00:31:05.506 --> 00:31:06.571 You bet. 00:31:06.571 --> 00:31:08.380 All right, operator, could you please 00:31:09.270 --> 00:31:11.580 bring in folks for oral argument? 00:31:11.580 --> 00:31:14.170 I'll remind speakers that we're limiting 00:31:14.170 --> 00:31:18.093 oral argument to three minutes per person today. 00:31:20.590 --> 00:31:21.423 Yes sir. 00:31:21.423 --> 00:31:22.620 And again, ladies and gentlemen, 00:31:22.620 --> 00:31:24.940 if you wish to have, excuse me, 00:31:24.940 --> 00:31:27.990 if you do have a comment for oral argument, 00:31:27.990 --> 00:31:29.743 it is one, then zero, at this time. 00:31:30.940 --> 00:31:33.400 And we'll go to the line of Wendy Howard, 00:31:33.400 --> 00:31:34.423 your line is open. 00:31:37.421 --> 00:31:39.270 Good afternoon. 00:31:39.270 --> 00:31:42.080 Our family, I'm here on behalf of R.E.A. Capital 00:31:42.080 --> 00:31:44.160 and R.E.A. Cox, Jr. 00:31:44.160 --> 00:31:48.213 Our farm is located on Route West-C. 00:31:49.205 --> 00:31:51.720 Just to give you a little bit of background, 00:31:51.720 --> 00:31:56.570 in 1973, this land was a little framed house 00:31:56.570 --> 00:32:00.402 and 10 acres was bought by my parents. 00:32:00.402 --> 00:32:02.860 They married and began raising a family 00:32:02.860 --> 00:32:04.510 and over the course of the years, 00:32:05.460 --> 00:32:07.520 if finances would allow, 00:32:07.520 --> 00:32:09.400 they acquired the remaining property 00:32:09.400 --> 00:32:11.540 which eventually became what it is now, 00:32:11.540 --> 00:32:13.583 which is 336 acres. 00:32:14.714 --> 00:32:16.180 Their family was raised here. 00:32:16.180 --> 00:32:18.760 My sisters and I were raised here. 00:32:18.760 --> 00:32:20.283 FSA projects were raised. 00:32:21.760 --> 00:32:23.480 Crops were harvested. 00:32:23.480 --> 00:32:25.980 Family picnics were had on the back of trucks 00:32:25.980 --> 00:32:28.190 during harvest season and now, 00:32:28.190 --> 00:32:31.080 grandchildren occupy the property 00:32:31.080 --> 00:32:34.847 and enjoy football games and their own projects. 00:32:36.097 --> 00:32:37.680 In the early 2000s, 00:32:39.270 --> 00:32:41.820 the city of Irving put a pipeline through and honestly, 00:32:41.820 --> 00:32:45.733 that's been the beginning of the end for us, so to speak. 00:32:46.640 --> 00:32:49.030 Subsequent to that, North Texas Municipal Water District 00:32:49.030 --> 00:32:51.210 decided to put a second pipeline on. 00:32:51.210 --> 00:32:54.733 Those two pipelines can easily cover 300 feet, 00:32:55.570 --> 00:32:58.648 I'm sorry, approximately 200 feet and 28 acres of land. 00:32:58.648 --> 00:33:00.270 Now we're looking at an additional 00:33:00.270 --> 00:33:01.700 hundred feet of property being taken 00:33:01.700 --> 00:33:03.170 for a transmission line, 00:33:03.170 --> 00:33:06.170 which will encompass another 13 acres of land 00:33:07.110 --> 00:33:09.610 and result in approximately 13% of the acreage 00:33:09.610 --> 00:33:11.063 being taken for public use. 00:33:12.100 --> 00:33:14.395 It will fundamentally change how our property, 00:33:14.395 --> 00:33:16.200 how we utilize the property, 00:33:16.200 --> 00:33:18.110 how the property is barned. 00:33:18.110 --> 00:33:21.080 It bisects the middle of the track 00:33:21.080 --> 00:33:22.960 completely down the middle 00:33:22.960 --> 00:33:25.717 and while the pipelines are underground, 00:33:25.717 --> 00:33:27.810 the transmission line will be above ground 00:33:27.810 --> 00:33:31.323 and run right in front of the front porch of my Dad's home. 00:33:32.260 --> 00:33:34.090 We're not a developer. 00:33:34.090 --> 00:33:37.650 We're not a apartment complex. 00:33:37.650 --> 00:33:40.053 Owners operating for profit. 00:33:40.910 --> 00:33:44.211 We're literally a family farm that started, 00:33:44.211 --> 00:33:46.048 ya know, 40 years ago now 00:33:46.048 --> 00:33:50.053 and we're looking at just having this all taken. 00:33:51.580 --> 00:33:53.310 Like I said, the pipeline's gonna destroy 00:33:53.310 --> 00:33:55.953 our open space field and so, 00:33:55.953 --> 00:33:58.570 our position is that you're putting on 00:33:58.570 --> 00:34:00.223 the backs of a local farmer, 00:34:02.250 --> 00:34:05.640 the burden of a line that actually services property 00:34:05.640 --> 00:34:08.122 that is east, in East Collin County. 00:34:08.122 --> 00:34:10.390 It was undisputed that the project load 00:34:10.390 --> 00:34:12.550 will be in East Collin County 00:34:12.550 --> 00:34:14.390 and we're sitting on the west side 00:34:14.390 --> 00:34:17.190 bearing the burden of a line that won't even benefit us. 00:34:21.511 --> 00:34:26.178 And none of the benefits and our position is that West-C 00:34:27.870 --> 00:34:30.553 is the wrong route to choose. 00:34:31.430 --> 00:34:34.492 Property values are gonna be higher than have been 00:34:34.492 --> 00:34:37.340 anticipated or projected 00:34:37.340 --> 00:34:40.292 and the burden of the line should be put 00:34:40.292 --> 00:34:43.820 to the east. (alarm ringing) 00:34:43.820 --> 00:34:46.880 That's time, thank you for the commentary 00:34:46.880 --> 00:34:48.430 and the context, appreciate it. 00:34:53.170 --> 00:34:56.293 And one moment, please. 00:35:00.070 --> 00:35:03.220 Next, we'll go to the line of James Prizell. 00:35:03.220 --> 00:35:04.313 Your line is open. 00:35:05.210 --> 00:35:06.516 Thank you. 00:35:06.516 --> 00:35:07.349 Thank you, Commissioners. 00:35:07.349 --> 00:35:10.800 I'm James Prizell, I represent the W-4, W-7 00:35:10.800 --> 00:35:13.359 interveners in this case and I'll try to make, 00:35:13.359 --> 00:35:18.359 our position is we strongly support route east C, 00:35:18.660 --> 00:35:20.570 not west C, but east C, 00:35:20.570 --> 00:35:23.030 and we'd urge the Commissioners to seriously 00:35:23.030 --> 00:35:25.210 consider and adopt it. 00:35:25.210 --> 00:35:27.740 I'll try to make four quick points. 00:35:27.740 --> 00:35:30.280 First, point number one, route East C, 00:35:30.280 --> 00:35:33.550 as Ms. Howard eluded to, is the best route 00:35:33.550 --> 00:35:35.470 because it is the just route. 00:35:35.470 --> 00:35:38.000 It's a route that achieves economic 00:35:38.000 --> 00:35:42.187 and environmental justice because it assigns 00:35:42.187 --> 00:35:44.621 the burden of the line to the parties 00:35:44.621 --> 00:35:47.500 that are caused the load that have caused the need 00:35:47.500 --> 00:35:49.890 and that are the ones that will receive 00:35:49.890 --> 00:35:51.860 the benefits of the line. 00:35:51.860 --> 00:35:54.159 Those are all developers and parties 00:35:54.159 --> 00:35:57.070 on the east side of the study area. 00:35:57.070 --> 00:36:00.250 The water treatment plant doesn't benefit 00:36:00.250 --> 00:36:01.929 the west side owners. 00:36:01.929 --> 00:36:04.490 The evidence is clear in this case 00:36:04.490 --> 00:36:08.300 that the west side owners have contributed zero load 00:36:08.300 --> 00:36:10.600 to the need for this line. 00:36:10.600 --> 00:36:14.210 The 17.6 megawatts and the 40 megawatts of loads 00:36:14.210 --> 00:36:17.340 this company refers to are all from the plants, 00:36:17.340 --> 00:36:20.260 which the west side landowners don't benefit from 00:36:20.260 --> 00:36:23.399 or from east side or north and east side landowners 00:36:23.399 --> 00:36:26.210 that are real estate developers. 00:36:26.210 --> 00:36:29.345 Commissioners, PURA section 11.02 00:36:29.345 --> 00:36:32.713 requires or says that the purpose of PURA 00:36:32.713 --> 00:36:35.930 is to provide a regulatory system that ensures that 00:36:35.930 --> 00:36:40.203 rates, operations, and services are just and reasonable. 00:36:40.203 --> 00:36:43.760 Also, the McCombs School of Business Ethics Unwrapped 00:36:43.760 --> 00:36:46.640 website defines environmental justice 00:36:46.640 --> 00:36:49.440 as fairness in the allocation of benefits 00:36:49.440 --> 00:36:52.570 and burdens of environmental impacts. 00:36:52.570 --> 00:36:54.935 That's what's needed here, Commissioners. 00:36:54.935 --> 00:36:58.930 This line entirely is caused by the load 00:36:58.930 --> 00:37:02.130 on the east side and the need to serve the east side 00:37:02.130 --> 00:37:04.230 and not by the west side landowners 00:37:04.230 --> 00:37:08.070 and it is just frankly unjust to route the line 00:37:08.070 --> 00:37:10.470 over the west side landowners properties 00:37:10.470 --> 00:37:11.960 when they didn't cause the need 00:37:11.960 --> 00:37:14.190 and won't benefit from the line. 00:37:14.190 --> 00:37:15.596 West-C is unjust! 00:37:15.596 --> 00:37:17.830 East-C is just. 00:37:17.830 --> 00:37:20.000 Point number three-- You have one minute. 00:37:20.000 --> 00:37:20.953 I'm sorry? 00:37:20.953 --> 00:37:22.323 One minute remaining. 00:37:23.570 --> 00:37:24.616 Oh, thank you. 00:37:24.616 --> 00:37:28.440 East-C is actually the best route. 00:37:28.440 --> 00:37:32.490 It directly tracks along New Hope Road and Long Neck Road 00:37:32.490 --> 00:37:34.580 on the east side of the study area. 00:37:34.580 --> 00:37:36.610 That's where the development's gonna be. 00:37:36.610 --> 00:37:38.450 That's where the need is gonna be 00:37:38.450 --> 00:37:41.380 and if you would look at the videos that we offered, 00:37:41.380 --> 00:37:43.750 you'll see that it's the best route. 00:37:43.750 --> 00:37:48.060 It performs well under the criteria. 00:37:48.060 --> 00:37:50.150 It is the least opposed route. 00:37:50.150 --> 00:37:53.950 It performs reasonably on all criteria 00:37:53.950 --> 00:37:56.520 and best on many others and finally, 00:37:56.520 --> 00:38:00.110 point number four, the historic devastating new 00:38:00.110 --> 00:38:03.400 or the historic devastating winter event 00:38:03.400 --> 00:38:05.400 occurred after the hearing, 00:38:05.400 --> 00:38:06.637 but it demonstrated that (alarm ringing) 00:38:06.637 --> 00:38:09.113 the issue, and I'll just wrap up, 00:38:09.113 --> 00:38:12.250 that the issue of diversity is important. 00:38:12.250 --> 00:38:15.630 Your honor, TNMP versus Encore is an issue 00:38:15.630 --> 00:38:18.460 the Commission should look into in deciding this case. 00:38:18.460 --> 00:38:19.920 Thank you very much, Commissioners. 00:38:19.920 --> 00:38:21.833 Again, we recommend east C. 00:38:22.670 --> 00:38:24.370 Thank you for your participation, 00:38:24.370 --> 00:38:25.440 comments and context. 00:38:25.440 --> 00:38:26.273 Appreciate that. 00:38:27.140 --> 00:38:27.990 Thank you, sir. 00:38:30.420 --> 00:38:32.170 Okay, one moment, please. 00:38:37.750 --> 00:38:40.440 Next, we'll go to the line of Carl Galant. 00:38:40.440 --> 00:38:41.633 Your line is open. 00:38:43.120 --> 00:38:44.060 Thank you, Commissioners. 00:38:44.060 --> 00:38:46.540 This is Carl Galant on behalf of the applicant, 00:38:46.540 --> 00:38:49.330 Rayburn Country Electric Cooperative. 00:38:49.330 --> 00:38:51.840 With your permission, I'd like to reserve the balance 00:38:51.840 --> 00:38:56.840 of my time to close, pursuant to rule 22.262. 00:38:57.027 --> 00:38:59.730 Parties have already started their argument 00:38:59.730 --> 00:39:01.080 and I think it might be more efficient 00:39:01.080 --> 00:39:02.950 so that I can address questions and issues 00:39:02.950 --> 00:39:05.333 that you may have at the end of oral argument. 00:39:06.220 --> 00:39:07.053 That's fine. 00:39:11.520 --> 00:39:12.830 Next speaker, please. 00:39:12.830 --> 00:39:14.530 One moment, please, sir. 00:39:17.064 --> 00:39:17.897 I do apologize. 00:39:17.897 --> 00:39:21.933 I'm having some technical issues with my PC today. 00:39:32.580 --> 00:39:35.950 Okay and we'll go to the line of Matt Arth. 00:39:35.950 --> 00:39:37.093 Your line is open. 00:39:38.930 --> 00:39:40.210 Good morning, Commissioners. 00:39:40.210 --> 00:39:43.450 My name is Matt Arth and along with Carrie Culyer-Brown. 00:39:43.450 --> 00:39:46.330 We represent McKinney Leased Housing Associates, 00:39:46.330 --> 00:39:48.544 owner one in this proceeding. 00:39:48.544 --> 00:39:51.250 We do not have oral argument to present but, 00:39:51.250 --> 00:39:54.120 we just note that McKinney Leased Housing Associates 00:39:54.120 --> 00:39:58.370 owns the Kenwood affordable apartment complex, 00:39:58.370 --> 00:40:01.490 which has 10 habitable structures located on 00:40:01.490 --> 00:40:05.480 property directly affected by segments W-11 and W-12. 00:40:05.480 --> 00:40:07.710 We would just respectfully request the Commission 00:40:07.710 --> 00:40:12.359 to approve the PFD agreeing with Rayburn's staff 00:40:12.359 --> 00:40:14.120 and the clear majority of interveners 00:40:14.120 --> 00:40:15.970 to approve route West-C 00:40:15.970 --> 00:40:17.830 and we're available to answer any questions. 00:40:17.830 --> 00:40:19.010 Thank you. 00:40:19.010 --> 00:40:19.843 Thank you. 00:40:23.630 --> 00:40:25.080 One moment, please. 00:40:34.270 --> 00:40:38.640 Okay and we'll go to the line of Patrick Willoby McCave, 00:40:38.640 --> 00:40:39.540 your line is open. 00:40:40.646 --> 00:40:41.940 Good morning, Commissioners. 00:40:41.940 --> 00:40:43.510 My name is Patrick Willoby McCave 00:40:43.510 --> 00:40:45.330 and I am speaking for Bloomdale Nextpoint. 00:40:45.330 --> 00:40:48.260 Our land is on West-C, tap option A. 00:40:48.260 --> 00:40:50.100 We support west-K. 00:40:50.100 --> 00:40:53.020 We are on the northeast corner of Bloomdale and 75 00:40:53.020 --> 00:40:55.327 extending down Honey Creek to SM-543 00:40:55.327 --> 00:40:57.880 and our hard corner is overlooked by the Collin County 00:40:57.880 --> 00:40:59.240 Court Facility. 00:40:59.240 --> 00:41:00.900 We fall into the Honey Creek District 00:41:00.900 --> 00:41:02.830 of the McKinney 2040 plan 00:41:02.830 --> 00:41:04.960 and our land is deemed both employment mix 00:41:04.960 --> 00:41:06.270 and suburban living. 00:41:06.270 --> 00:41:08.910 In comparison, as described by Shafer Industries 00:41:08.910 --> 00:41:10.640 in this testimony to west-K, 00:41:10.640 --> 00:41:13.590 which is industrial district, according to the plans. 00:41:13.590 --> 00:41:15.770 I have worked with the company and partners for 15 years 00:41:15.770 --> 00:41:17.360 assisting with the discovering, purchase, 00:41:17.360 --> 00:41:19.770 and management of over $200 million of land. 00:41:19.770 --> 00:41:22.453 My specialty is suburban infill and rural land. 00:41:23.290 --> 00:41:26.100 In large part of our decision to invest 00:41:26.100 --> 00:41:29.490 in the city of McKinney and the McKinney 2040 plan 00:41:29.490 --> 00:41:31.580 and the very well run city and county government. 00:41:31.580 --> 00:41:34.050 We feel that the 2040 plan is the most detailed 00:41:34.050 --> 00:41:35.840 and comprehensive planning all of north Texas. 00:41:35.840 --> 00:41:38.600 It is a beacon per investment in McKinney. 00:41:38.600 --> 00:41:40.470 From our purchase in the fall of 2017, 00:41:40.470 --> 00:41:42.470 we have spent hundreds of thousands of dollars 00:41:42.470 --> 00:41:44.830 on the planning, pre-development, beautification, 00:41:44.830 --> 00:41:46.670 and maintenance of our properties. 00:41:46.670 --> 00:41:48.850 This includes a full property tree survey 00:41:48.850 --> 00:41:50.900 performed by half engineers and maps reading 00:41:50.900 --> 00:41:53.180 planned by half tree trimming and removal of trees 00:41:53.180 --> 00:41:56.070 and undergrowth to beautify the property. 00:41:56.070 --> 00:41:59.840 Grass cultivation, management, and other things. 00:41:59.840 --> 00:42:02.020 All of this was done with no development plan 00:42:02.020 --> 00:42:02.880 or sale in hand. 00:42:02.880 --> 00:42:04.800 It was performed as our part to be a good neighbor 00:42:04.800 --> 00:42:06.390 to the Collin County Courthouse, 00:42:06.390 --> 00:42:07.760 which overlooks our property. 00:42:07.760 --> 00:42:10.110 With our vision of attracting higher end development 00:42:10.110 --> 00:42:11.660 that will compliment the courthouse 00:42:11.660 --> 00:42:13.700 and the city of McKinney as a whole. 00:42:13.700 --> 00:42:16.270 We have had several offers over the course of our ownership 00:42:16.270 --> 00:42:18.780 to sell all or a portion of the land. 00:42:18.780 --> 00:42:20.650 Many of these have been financially lucrative 00:42:20.650 --> 00:42:21.800 and attractive offers. 00:42:21.800 --> 00:42:23.200 However, they did not fit our vision of 00:42:23.200 --> 00:42:26.110 working within the natural beauty of this property. 00:42:26.110 --> 00:42:28.798 We envision high-end restaurant, retail offices 00:42:28.798 --> 00:42:32.370 that works with Honey Creek and can include 00:42:32.370 --> 00:42:35.220 the broader populous with running parks 00:42:35.220 --> 00:42:38.139 and family-friendly options. 00:42:38.139 --> 00:42:38.972 You have one minute. 00:42:38.972 --> 00:42:42.240 We have also now worked with the city of McKinney 00:42:42.240 --> 00:42:43.940 to fit easements onto our property 00:42:43.940 --> 00:42:46.890 to benefit the city and Collin County residents, 00:42:46.890 --> 00:42:49.870 which the proposed elective station does not do. 00:42:49.870 --> 00:42:51.810 Tap option A places this station 00:42:51.810 --> 00:42:54.300 next to an elementary school and suburban living 00:42:54.300 --> 00:42:57.190 to benefit users far away from this placement. 00:42:57.190 --> 00:42:59.350 I appreciate the time to speak on this issue 00:42:59.350 --> 00:43:01.050 and thank you for your consideration. 00:43:01.050 --> 00:43:04.117 Our land is on West-C, tap option A 00:43:04.117 --> 00:43:05.733 and we support West-K. 00:43:06.590 --> 00:43:07.423 Thank you. 00:43:11.220 --> 00:43:12.870 And one moment, please. 00:43:16.570 --> 00:43:19.720 Okay, we'll go to the line of Landon Will. 00:43:19.720 --> 00:43:20.823 Your line is open. 00:43:23.340 --> 00:43:24.230 Thank you, Commissioners. 00:43:24.230 --> 00:43:25.260 My name is Landon Will. 00:43:25.260 --> 00:43:27.540 I'm here today on behalf of Bloomdale. 00:43:27.540 --> 00:43:32.540 We oppose the use of tap A and West-C. 00:43:32.720 --> 00:43:34.330 As is evident in the pleadings, 00:43:34.330 --> 00:43:37.180 the parties have put forward three routes, 00:43:37.180 --> 00:43:40.510 West-C, West-K, and east-C. 00:43:40.510 --> 00:43:43.550 East-C is the least opposed of the routes 00:43:43.550 --> 00:43:45.760 and is supported by Bloomdale. 00:43:45.760 --> 00:43:47.760 As there have been multiple speakers 00:43:47.760 --> 00:43:51.420 explaining East-C's merit, I will focus my comments 00:43:51.420 --> 00:43:54.660 on comparing west-C with west-K, 00:43:54.660 --> 00:43:57.070 the two most supported routes on the western 00:43:57.070 --> 00:43:58.420 side of the map. 00:43:58.420 --> 00:43:59.970 But I want to be clear. 00:43:59.970 --> 00:44:03.213 We would be happy with the selection of East-C as well. 00:44:04.100 --> 00:44:08.750 West-C and west-K could not more different routes. 00:44:08.750 --> 00:44:12.010 On one hand, west-C runs through a residential 00:44:12.010 --> 00:44:13.103 and rural area. 00:44:13.980 --> 00:44:16.970 While it only affects two habitable structures, 00:44:16.970 --> 00:44:21.040 it bisects property along almost its entire path. 00:44:21.040 --> 00:44:25.137 On the other hand, west-K is in an industrial area 00:44:25.137 --> 00:44:28.010 and while it affects seven more habitable structures 00:44:28.010 --> 00:44:30.730 than west-C, most of these are industrial 00:44:30.730 --> 00:44:33.540 or governmental owned repair facilities. 00:44:33.540 --> 00:44:36.490 West-K is also shorter than west-C. 00:44:36.490 --> 00:44:38.978 By a fifth less property than west-C, 00:44:38.978 --> 00:44:41.890 better paralleled than west-C, 00:44:41.890 --> 00:44:45.020 better aligned with community values that west-C, 00:44:45.020 --> 00:44:48.410 is opposed by fewer landowners than west-C, 00:44:48.410 --> 00:44:51.200 is environmentally superior to west-C, 00:44:51.200 --> 00:44:55.020 and has a lesser aesthetic impact than west-C. 00:44:55.020 --> 00:44:58.150 We have explained how west-K outperforms west-C 00:44:58.150 --> 00:45:01.270 in each of these categories in our exceptions and briefs, 00:45:01.270 --> 00:45:05.383 but I wish to briefly address one criterion here, costs. 00:45:06.240 --> 00:45:09.100 Estimated costs in this proceeding for tap A 00:45:09.100 --> 00:45:13.200 with west-C and tap B with west-C are close. 00:45:13.200 --> 00:45:14.927 Rayburn has estimated a difference in 00:45:14.927 --> 00:45:19.927 $1,133,581.20. You have one minute. 00:45:21.060 --> 00:45:23.500 Although Rayburn provided an estimate 00:45:23.500 --> 00:45:25.380 down to the penny, it's important to remember 00:45:25.380 --> 00:45:29.360 that they use a 15% contingency in creating these estimates. 00:45:29.360 --> 00:45:32.118 Essentially acknowledging that there's a large 00:45:32.118 --> 00:45:33.270 15% margin of error. 00:45:33.270 --> 00:45:35.370 The roughly $1.2 million difference 00:45:35.370 --> 00:45:38.960 is a 12% difference in comparison to the total costs 00:45:38.960 --> 00:45:40.950 or six percent, if you include the costs of the 00:45:40.950 --> 00:45:42.550 New Hope substation. 00:45:42.550 --> 00:45:44.260 No matter how you count it, 00:45:44.260 --> 00:45:47.870 this is within the 15% margin of error. 00:45:47.870 --> 00:45:50.020 Bloomdale urges the Commission to consider 00:45:50.020 --> 00:45:53.372 routing holistically using each of the routing criteria 00:45:53.372 --> 00:45:56.611 contained in PURA and the Commission's rules 00:45:56.611 --> 00:46:01.000 and not simply focusing on a rough cost estimate 00:46:01.000 --> 00:46:02.441 and habitable structure count. 00:46:02.441 --> 00:46:05.350 When a holistic approach is used, 00:46:05.350 --> 00:46:08.030 west-C is the superior, sorry, 00:46:08.030 --> 00:46:11.550 west-K is the superior of the western routes. 00:46:11.550 --> 00:46:13.090 Thank you. 00:46:13.090 --> 00:46:15.590 Thank you for your thoughts and the information. 00:46:18.880 --> 00:46:20.530 And one moment, please. 00:46:31.210 --> 00:46:35.453 Next, we'll go to the line of JD Ubank, your line is open. 00:46:43.140 --> 00:46:45.460 JD Ubank, your line is open. 00:46:52.320 --> 00:46:54.070 Okay, we'll go onto the next line. 00:46:54.070 --> 00:46:55.273 One moment, please. 00:46:56.170 --> 00:46:57.140 Good morning, Commissioners, 00:46:57.140 --> 00:46:58.860 and thank you for permitting oral argument. 00:46:58.860 --> 00:47:00.160 My name is JD Ubank. 00:47:00.160 --> 00:47:01.823 I am the son of Rick and Sherry Ubank, 00:47:01.823 --> 00:47:04.190 landowners on the west side of the study area 00:47:04.190 --> 00:47:07.640 who are part of the W-4, W-7 interveners in this docket. 00:47:07.640 --> 00:47:09.440 We disagree with the proposal for decisions 00:47:09.440 --> 00:47:11.690 recommendation of route west-C for this transmission line 00:47:11.690 --> 00:47:13.480 project because it is not the best route 00:47:13.480 --> 00:47:15.210 for the project or the community. 00:47:15.210 --> 00:47:17.070 We strongly believe that route east-C, 00:47:17.070 --> 00:47:19.240 the least opposed route and best performing route, 00:47:19.240 --> 00:47:21.200 with considering all routing criteria, 00:47:21.200 --> 00:47:23.000 is the true best fit route. 00:47:23.000 --> 00:47:24.720 A critical point we believe should be considered 00:47:24.720 --> 00:47:26.320 when assigned this case is adjustments 00:47:26.320 --> 00:47:28.340 and reasonable premise of PURA. 00:47:28.340 --> 00:47:30.330 In other words, the benefits and burdens of the project 00:47:30.330 --> 00:47:31.810 should be evaluated for each route 00:47:31.810 --> 00:47:33.580 under consideration in order to select 00:47:33.580 --> 00:47:35.700 a fair and equitable route. 00:47:35.700 --> 00:47:37.670 So, who is driving the need for this project 00:47:37.670 --> 00:47:39.290 and who will benefit from it? 00:47:39.290 --> 00:47:41.800 As shown in W-4, W-7, exhibit 48A 00:47:41.800 --> 00:47:44.490 which is a map of Rayburn's low project work paper, 00:47:44.490 --> 00:47:46.910 all development low growth within the routing study area 00:47:46.910 --> 00:47:48.909 originates on the east side from large real estate 00:47:48.909 --> 00:47:50.670 developers along New Hope Road, 00:47:50.670 --> 00:47:55.300 which is FM-1827 and Long Neck Road, which is FM-75. 00:47:55.300 --> 00:47:57.040 These developers will benefit from the additional 00:47:57.040 --> 00:47:58.810 service and capacity the transmission line 00:47:58.810 --> 00:48:00.520 will offer to the electric grid. 00:48:00.520 --> 00:48:02.910 In contrast, west side landowners do not need 00:48:02.910 --> 00:48:05.250 increased capacity or service and did not cause 00:48:05.250 --> 00:48:06.890 or contribute to any of the load growth 00:48:06.890 --> 00:48:09.120 that drives the need for the tranmission line. 00:48:09.120 --> 00:48:10.940 Additionally, the NTM Division facility 00:48:10.940 --> 00:48:13.233 that will be supplied by the line 00:48:13.233 --> 00:48:15.030 will not serve or benefit west side landowners. 00:48:15.030 --> 00:48:16.470 It, therefore, does not make sense 00:48:16.470 --> 00:48:17.770 for the Commission to approve a route 00:48:17.770 --> 00:48:19.978 that does not allocate the burdens 00:48:19.978 --> 00:48:21.670 of the transmission line to its beneficiaries. 00:48:21.670 --> 00:48:24.030 Route west-C or any western route, for that matter, 00:48:24.030 --> 00:48:25.561 would place the burdens of the line on west side landowners 00:48:25.561 --> 00:48:28.280 while east side landowners benefit 00:48:28.280 --> 00:48:31.080 from the additional capacity and service it will offer. 00:48:31.080 --> 00:48:32.700 There is a reasonable solution to this problem, 00:48:32.700 --> 00:48:34.940 however, and it is route east-C. 00:48:34.940 --> 00:48:36.690 Not only does route east-C parallel to 00:48:36.690 --> 00:48:38.877 farm to market roads for over two-thirds of its length 00:48:38.877 --> 00:48:41.540 but it also justly and fairly imposes a burden 00:48:41.540 --> 00:48:43.410 of the line on the east side landowners 00:48:43.410 --> 00:48:45.500 and the NTMWD that have caused the need 00:48:45.500 --> 00:48:47.100 for the transmission line and will benefit 00:48:47.100 --> 00:48:48.490 from its installation. 00:48:48.490 --> 00:48:49.870 The remaining third of the route's length 00:48:49.870 --> 00:48:51.320 that does not parallel the FM roads 00:48:51.320 --> 00:48:54.640 is justly routed along NTMWD facility properties. 00:48:54.640 --> 00:48:57.410 In comparison, route west-C has only 4.5 percent 00:48:57.410 --> 00:48:58.670 of its length of route in parallel 00:48:58.670 --> 00:49:00.370 to any compatible right of way, 00:49:00.370 --> 00:49:02.870 resulting in significant fragmentation of properties 00:49:02.870 --> 00:49:04.900 along nearly its entire length. 00:49:04.900 --> 00:49:06.080 If you'd not done so already, 00:49:06.080 --> 00:49:07.470 I would recommend reviewing the videos 00:49:07.470 --> 00:49:09.346 of route east-C that are You have one minute. 00:49:09.346 --> 00:49:12.090 W-4 and W-7, exhibits 46A through D 00:49:12.090 --> 00:49:13.970 that exemplify several of the reasons why route 00:49:13.970 --> 00:49:16.500 east-C makes the most sense for this project. 00:49:16.500 --> 00:49:18.900 I also want to mention the W-4, W-7 second alternative 00:49:18.900 --> 00:49:21.660 site proposal to move the currently unbilled 00:49:21.660 --> 00:49:23.840 New Hope substation from Rayburn's proposed site 00:49:23.840 --> 00:49:26.940 near the southwest corner of NTMW property 00:49:26.940 --> 00:49:29.640 to a location near or in the vicinity of the northeast 00:49:29.640 --> 00:49:31.710 corner of NTMW property. 00:49:31.710 --> 00:49:33.220 Locating the substation in this area 00:49:33.220 --> 00:49:35.460 provides additional benefits for the project. 00:49:35.460 --> 00:49:37.700 The location places this substation closer 00:49:37.700 --> 00:49:39.790 to the NTMW facility and future real estate developments 00:49:39.790 --> 00:49:42.460 on the east side of the study area. 00:49:42.460 --> 00:49:45.020 It is not constrained by the NTMW facility 00:49:45.020 --> 00:49:47.180 or town of New Hope when running distribution lines 00:49:47.180 --> 00:49:50.040 and it shortens route east-C and reduces its cost, 00:49:50.040 --> 00:49:52.800 making it the third least costly route. 00:49:52.800 --> 00:49:54.240 As discussed in detail in our briefs, 00:49:54.240 --> 00:49:55.910 Rayburn did not seriously evaluate 00:49:55.910 --> 00:49:57.320 or consider this proposed site 00:49:57.320 --> 00:49:59.310 and we believe it deserves thorough investigation 00:49:59.310 --> 00:50:00.952 and inquiry due to its merit. 00:50:00.952 --> 00:50:02.420 (alarm ringing) We did discuss the merits 00:50:02.420 --> 00:50:04.830 of route east-C in detail in our previous filings. 00:50:04.830 --> 00:50:06.680 I won't go into specifics again here. 00:50:06.680 --> 00:50:08.290 But I wanted to emphasize some of its additional 00:50:08.290 --> 00:50:09.810 compelling strengths that make it the true 00:50:09.810 --> 00:50:11.050 best fit route for the project. 00:50:11.050 --> 00:50:12.270 You're at time, sir. It upholds the 00:50:12.270 --> 00:50:14.940 community's values, it minimizes fragmentation 00:50:14.940 --> 00:50:16.660 and has construction and maintenance benefits 00:50:16.660 --> 00:50:18.940 due to the ease of access from highways paralleling 00:50:18.940 --> 00:50:20.850 and its lack of flood plain crossing, 00:50:20.850 --> 00:50:22.700 unlike all western routes. 00:50:22.700 --> 00:50:24.490 It preserves the integrity of the environment. 00:50:24.490 --> 00:50:26.390 It creates no new fragmentation of trees 00:50:26.390 --> 00:50:28.305 and woodland-- You're at time, Mr. Ubank. 00:50:28.305 --> 00:50:30.493 Thank you for your commentary and the information. 00:50:33.700 --> 00:50:34.823 Next speaker, please. 00:50:36.260 --> 00:50:38.133 Yes sir, one moment, please. 00:50:48.870 --> 00:50:53.870 And our next speaker is from the line of Sherry Ubank, 00:50:54.270 --> 00:50:55.393 your line is open. 00:50:56.590 --> 00:50:58.690 Thank you and good morning, Commissioners. 00:50:58.690 --> 00:51:00.150 My name is Sherry Ubank. 00:51:00.150 --> 00:51:03.220 I live in the western side of the study area of this case 00:51:03.220 --> 00:51:06.660 and I'm one of the W-4 to W-7 interveners. 00:51:06.660 --> 00:51:09.620 The recommended route, west-C, does not run 00:51:09.620 --> 00:51:12.809 through my property, traverse my property lines, 00:51:12.809 --> 00:51:16.030 have any impact on the area where I live. 00:51:16.030 --> 00:51:18.190 You might wonder why am I continuing to be 00:51:18.190 --> 00:51:20.345 involved in this case? 00:51:20.345 --> 00:51:23.030 The reason is that I live here on part of a community 00:51:23.030 --> 00:51:25.840 of landowners and neighbors and friends 00:51:25.840 --> 00:51:28.140 and I'm gonna talk about what makes common sense 00:51:28.140 --> 00:51:29.380 for our community. 00:51:29.380 --> 00:51:31.393 We support route east-C. 00:51:33.340 --> 00:51:36.300 Route east-C is the least opposed route. 00:51:36.300 --> 00:51:38.880 That's versus all of the western routes 00:51:38.880 --> 00:51:40.730 and all of the eastern routes. 00:51:40.730 --> 00:51:43.263 It's the least opposed and there's reasons for that. 00:51:43.263 --> 00:51:46.060 I'm sure you've read through the briefs 00:51:46.060 --> 00:51:49.800 and the reasons, but a new reason became, 00:51:49.800 --> 00:51:51.010 it happened in February. 00:51:51.010 --> 00:51:53.740 I mean, the most important fact about choosing 00:51:53.740 --> 00:51:57.750 route east-C became apparent and it was after 00:51:57.750 --> 00:51:59.630 the time of the hearings that was the unusual 00:51:59.630 --> 00:52:01.060 nature of it. 00:52:01.060 --> 00:52:02.590 I really think you need to be considering this 00:52:02.590 --> 00:52:04.040 in your decision. 00:52:04.040 --> 00:52:06.130 We receive our power from a co-op, 00:52:06.130 --> 00:52:07.840 Grayson Collin Electric. 00:52:07.840 --> 00:52:10.070 This power source is Encore. 00:52:10.070 --> 00:52:13.581 During February, then the power was shut off and on, 00:52:13.581 --> 00:52:17.570 and off and on, we had similar stories 00:52:17.570 --> 00:52:20.050 of frozen pipes and being freezing cold. 00:52:20.050 --> 00:52:23.470 I was walking around the house with my ski clothes. 00:52:23.470 --> 00:52:25.720 The reason is my number one reason to support 00:52:25.720 --> 00:52:30.350 route east-C is because it ends in tap option C. 00:52:30.350 --> 00:52:35.310 Tap option C's power source is Texas New Mexico Power. 00:52:35.310 --> 00:52:37.570 The western routes and tap option A 00:52:37.570 --> 00:52:40.660 and tap option B are Encore. 00:52:40.660 --> 00:52:43.590 If we use either of those tap options 00:52:43.590 --> 00:52:46.710 of the western routes, we are gonna just have Encore. 00:52:46.710 --> 00:52:48.353 If we can go to C, 00:52:49.250 --> 00:52:52.600 that gives us another option. 00:52:52.600 --> 00:52:54.820 I mean, that just seems to make so much sense to me. 00:52:54.820 --> 00:52:57.410 During February, one of our friends of east 00:52:57.410 --> 00:52:59.590 that had Texas New Mexico Power 00:52:59.590 --> 00:53:00.450 didn't have any disruption You have one minute left. 00:53:00.450 --> 00:53:02.450 of their power and I'm not saying 00:53:02.450 --> 00:53:05.130 that they're a better source of power than Encore. 00:53:05.130 --> 00:53:08.850 I'm just saying, our community wants a second option 00:53:08.850 --> 00:53:13.850 available with TNMP in case something happens ever again. 00:53:14.110 --> 00:53:17.690 I mean, that is compelling for our service area. 00:53:17.690 --> 00:53:20.560 Route east-C can make our electrical service 00:53:20.560 --> 00:53:22.693 here better and more reliable. 00:53:23.580 --> 00:53:26.760 You all can have a huge impact upon our community 00:53:26.760 --> 00:53:29.840 by choosing route east-C that'll offer us 00:53:29.840 --> 00:53:31.433 a second power source. 00:53:32.700 --> 00:53:36.010 I really want to retain my optimism and belief 00:53:36.010 --> 00:53:39.160 that a community and the little guy can still impact 00:53:39.160 --> 00:53:41.240 a governmental decision. 00:53:41.240 --> 00:53:43.380 I hope that the new Commission can see 00:53:43.380 --> 00:53:46.830 the logic and the reasoning of route east-C 00:53:46.830 --> 00:53:49.710 being a much better choice than the route 00:53:49.710 --> 00:53:51.810 that's currently recommended. 00:53:51.810 --> 00:53:55.350 We would like to have diversification of power 00:53:55.350 --> 00:53:58.980 in our area through Grayson Collin Electric Company. 00:53:58.980 --> 00:54:00.541 (alarm ringing) 00:54:00.541 --> 00:54:01.392 Thank you, Ms. Ubank. 00:54:01.392 --> 00:54:02.225 Appreciate those points. 00:54:02.225 --> 00:54:03.179 Perfect timing (laughs) 00:54:03.179 --> 00:54:04.210 Thank you. You landed it 00:54:04.210 --> 00:54:05.370 right on the dot. 00:54:08.320 --> 00:54:11.270 And next, we'll go to the line of Heather Strait. 00:54:14.470 --> 00:54:17.560 Hi, my name is Heather Strait. 00:54:17.560 --> 00:54:20.200 I'm a part of R.E.A. Capital LP 00:54:20.200 --> 00:54:23.540 and daughter of R.E.A. Cox, Jr. 00:54:23.540 --> 00:54:25.060 I have a Master's degree in real estate 00:54:25.060 --> 00:54:27.750 and land economics and multiple years experience 00:54:27.750 --> 00:54:30.788 in real estate valuation and real estate lending. 00:54:30.788 --> 00:54:35.610 My position is that we are on west-C, 00:54:35.610 --> 00:54:38.790 but we support west-K or east-C 00:54:38.790 --> 00:54:43.510 because they picked, the primary reason they 00:54:43.510 --> 00:54:47.041 picked west-C was because they said it was the cheapest 00:54:47.041 --> 00:54:50.003 or the most cost efficient. 00:54:52.730 --> 00:54:55.350 But we feel they have highly undervalued the properties 00:54:55.350 --> 00:54:57.887 to the west of the North Texas plant. 00:54:57.887 --> 00:55:01.360 They have our property valued at $17,000 an acre. 00:55:01.360 --> 00:55:05.860 We currently have acreage less than a mile away 00:55:05.860 --> 00:55:08.003 under contract for six times that. 00:55:10.570 --> 00:55:14.494 So, we feel that the property west of the plant 00:55:14.494 --> 00:55:16.970 is not the cheapest route. 00:55:16.970 --> 00:55:19.600 Again, we support west-K or east-C. 00:55:19.600 --> 00:55:20.433 Thank you. 00:55:21.910 --> 00:55:24.287 Thank you for the thoughts and information. 00:55:25.730 --> 00:55:28.810 And next, we'll go to the line of 00:55:28.810 --> 00:55:31.423 R.E.A. Cox, your line is open. 00:55:34.810 --> 00:55:35.643 Yes? 00:55:38.120 --> 00:55:39.123 Yes sir, go ahead. 00:55:41.757 --> 00:55:42.590 Can you hear me? 00:55:42.590 --> 00:55:44.850 Yes sir, the floor is yours. 00:55:44.850 --> 00:55:46.513 This is R.E.A. Cox, Jr. 00:55:52.315 --> 00:55:54.660 I represent R.E.A. Capital. 00:55:54.660 --> 00:55:56.680 I started the whole operation myself 00:55:56.680 --> 00:55:58.043 in the early 1970s. 00:55:59.930 --> 00:56:02.070 I haven't been a developer, haven't been anything. 00:56:02.070 --> 00:56:04.970 I've just been a, I put a land together 00:56:04.970 --> 00:56:08.193 for my children's inheritance, as well as my retirement. 00:56:10.750 --> 00:56:14.410 I do not support west-C at all. 00:56:14.410 --> 00:56:19.223 It enables all my properties in McKinney ETJ currently. 00:56:21.140 --> 00:56:25.110 It affects more acres than anything taken 00:56:25.110 --> 00:56:27.060 on these lines from a single landowner. 00:56:29.215 --> 00:56:32.476 I do support west-K or east-C and I do think east-C 00:56:32.476 --> 00:56:36.262 would be the preferable field because of 00:56:36.262 --> 00:56:39.437 today's distance of it 00:56:39.437 --> 00:56:41.523 if everybody really studied their list. 00:56:44.830 --> 00:56:47.320 Also, I wanna emphasize one more time, 00:56:47.320 --> 00:56:51.223 nobody is losing more property than I am, nobody. 00:56:52.642 --> 00:56:55.386 Not in number of acres, road furnishes, 00:56:55.386 --> 00:56:57.610 division of the current property, 00:56:57.610 --> 00:56:59.970 there's nobody on your list I see. 00:56:59.970 --> 00:57:03.930 I don't see why I should be the guy that 00:57:03.930 --> 00:57:05.290 is supposed to burden a free web 00:57:05.290 --> 00:57:09.177 of pipelines and power lines and everything else 00:57:09.177 --> 00:57:10.320 that's coming through and I'm sure there's more 00:57:10.320 --> 00:57:12.962 coming behind this if this happens. 00:57:12.962 --> 00:57:17.268 I just feel like it's totally unfair 00:57:17.268 --> 00:57:18.953 in the state of Texas. 00:57:20.420 --> 00:57:21.820 Thank you. 00:57:21.820 --> 00:57:22.670 Thank you, sir. 00:57:25.360 --> 00:57:28.410 And there are no further lines, sir. 00:57:28.410 --> 00:57:29.243 Thank you, operator. 00:57:29.243 --> 00:57:30.990 At this point, could you bring back Rayburn? 00:57:30.990 --> 00:57:31.910 Excuse me one second, 00:57:31.910 --> 00:57:35.290 this is Rustin Taywater with Commission staff. 00:57:35.290 --> 00:57:37.490 Good morning, Commissioners. 00:57:37.490 --> 00:57:39.343 We don't have much in the way of oral argument. 00:57:39.343 --> 00:57:41.670 We just wanted to note that staff continues 00:57:41.670 --> 00:57:44.010 to support route west-C as the route 00:57:44.010 --> 00:57:46.697 that best meets the requirements of PURA 00:57:46.697 --> 00:57:47.898 and the Commission's rules 00:57:47.898 --> 00:57:50.608 that's outlined in staff testimony and briefing. 00:57:50.608 --> 00:57:54.150 Staff also generally supports adoption of the PFD 00:57:54.150 --> 00:57:55.910 subject to the minor exceptions outlined 00:57:55.910 --> 00:57:57.730 in our May 17 filing. 00:57:57.730 --> 00:58:00.260 Staff is happy to answer any question y'all may have. 00:58:00.260 --> 00:58:01.690 Thank you for the time. 00:58:01.690 --> 00:58:04.070 Appreciate it, Rustin. 00:58:04.070 --> 00:58:05.230 Excuse me, Chairman Mike. 00:58:05.230 --> 00:58:07.460 We do have one additional person in queue. 00:58:07.460 --> 00:58:09.360 Would you like to take that line, sir? 00:58:09.360 --> 00:58:10.193 Sure. 00:58:11.330 --> 00:58:13.980 That is from the line of William McCollum. 00:58:13.980 --> 00:58:14.933 Your line is open. 00:58:16.290 --> 00:58:17.950 Thank you, my name is William McCollum. 00:58:17.950 --> 00:58:20.693 I own 18 acres and I'm opposed to west-C. 00:58:21.608 --> 00:58:25.840 Joseph Wellmuth and Jordon Fawn are both recognized 00:58:25.840 --> 00:58:27.480 as first families in McKinney. 00:58:27.480 --> 00:58:29.380 They were my great-great-grandfathers. 00:58:30.320 --> 00:58:34.620 JB Wellmuth move to McKinney in 1845. 00:58:34.620 --> 00:58:36.710 The first church and school in McKinney 00:58:36.710 --> 00:58:38.010 were in the Wellmuth home. 00:58:39.020 --> 00:58:41.760 My land in question has been passed down to family 00:58:41.760 --> 00:58:42.963 through the strong line. 00:58:44.320 --> 00:58:46.220 I also am related to Collin McKinney, 00:58:46.220 --> 00:58:48.310 one of seven individuals to sign Texas 00:58:48.310 --> 00:58:50.423 Declaration of Independence with Mexico. 00:58:51.530 --> 00:58:54.250 My property is near the McLaren Cemetery. 00:58:54.250 --> 00:58:56.660 Over a quarter of the graves in the cemetery 00:58:56.660 --> 00:58:57.773 are family relatives. 00:58:58.720 --> 00:59:02.770 My brother and I inherited the land from our mother in 2005. 00:59:02.770 --> 00:59:04.810 My brother wanted to sell the 18 acres. 00:59:04.810 --> 00:59:08.810 He actually listed it with Debbie Holiday for $500,000, 00:59:08.810 --> 00:59:11.480 but I'm proud of my McKinney heritage. 00:59:11.480 --> 00:59:13.150 I didn't agree with my brother, 00:59:13.150 --> 00:59:17.023 so I bought his half of the property for $250,000. 00:59:18.030 --> 00:59:20.397 I also said specifically in my will, 00:59:20.397 --> 00:59:21.843 it be passed onto my children. 00:59:22.780 --> 00:59:25.000 I understand Rayburn doesn't value the land 00:59:25.000 --> 00:59:27.110 based on my family history. 00:59:27.110 --> 00:59:31.353 I stand to lose about $20,000 an acre if they use west-C. 00:59:32.310 --> 00:59:35.190 West-C is residential and rural. 00:59:35.190 --> 00:59:37.770 West-K, however, is industrial and designated 00:59:37.770 --> 00:59:40.683 for future rail industrial service park. 00:59:42.110 --> 00:59:45.230 There also is a loop proposed around McKinney 00:59:45.230 --> 00:59:48.343 that has local paths and all of them attach to my property. 00:59:49.370 --> 00:59:51.720 If I lose acreage for west-C, 00:59:51.720 --> 00:59:53.520 and then I lose acreage to the loop, 00:59:55.040 --> 00:59:57.520 I lose my ag exemption and will eventually 00:59:57.520 --> 00:59:58.443 lose the property. 00:59:59.640 --> 01:00:02.890 In conclusion, I am opposed to west-C 01:00:02.890 --> 01:00:05.423 and support west-K or east-C. 01:00:07.330 --> 01:00:08.180 Thank you, sir. 01:00:12.240 --> 01:00:15.310 And there are no other lines in queue, sir. 01:00:15.310 --> 01:00:16.143 Thank you, operator. 01:00:16.143 --> 01:00:19.061 Could you please bring back the speaker from Rayburn? 01:00:19.061 --> 01:00:19.920 Carl Galant. 01:00:19.920 --> 01:00:24.341 Carl Galant from Rayburn to close out. 01:00:24.341 --> 01:00:25.174 At this time, Mr. Galant, 01:00:25.174 --> 01:00:28.863 if you could please press one, then zero, on your phone. 01:00:34.490 --> 01:00:35.440 One moment, please. 01:00:38.177 --> 01:00:40.473 And Mr. Galant, your line is open. 01:00:41.500 --> 01:00:42.333 Thank you. 01:00:42.333 --> 01:00:43.166 Thank you, Commissioners. 01:00:43.166 --> 01:00:44.860 This is Carl Galant on behalf of 01:00:44.860 --> 01:00:47.582 Rayburn Country Electric Cooperative. 01:00:47.582 --> 01:00:51.551 I want to address just a few items briefly 01:00:51.551 --> 01:00:53.133 and then address some of the information 01:00:53.133 --> 01:00:56.961 that clarify what is and is not in the record. 01:00:56.961 --> 01:01:00.280 This project is needed to serve existing 01:01:00.280 --> 01:01:03.774 and future load growth in this highly developing area, 01:01:03.774 --> 01:01:06.000 northeast of McKinney, 01:01:06.000 --> 01:01:07.900 as well as a very large waste water 01:01:07.900 --> 01:01:09.270 treatment facility owned by 01:01:09.270 --> 01:01:11.710 North Texas Municipal Water District. 01:01:11.710 --> 01:01:14.630 No party has contested a need for the project 01:01:14.630 --> 01:01:19.630 and in fact, several recognize that it is needed. 01:01:19.660 --> 01:01:22.150 Three routes have become the focus of the case, 01:01:22.150 --> 01:01:23.280 as you've heard. 01:01:23.280 --> 01:01:26.667 Route west-C, which the PFD recommends. 01:01:26.667 --> 01:01:31.000 Route west-K and route east-C. 01:01:31.000 --> 01:01:33.140 There are advantages and disadvantages 01:01:33.140 --> 01:01:37.090 to each of these routes, as the parties have discussed. 01:01:37.090 --> 01:01:40.030 Importantly, however, all three are viable, 01:01:40.030 --> 01:01:43.390 constructable, and meet the need for the project. 01:01:43.390 --> 01:01:45.370 Rayburn is ready to build this project 01:01:45.370 --> 01:01:49.080 on any of those routes if selected by the Commission. 01:01:49.080 --> 01:01:53.270 I do, however, need to point out certain issues 01:01:53.270 --> 01:01:55.430 that are not in the record. 01:01:55.430 --> 01:01:59.400 For instance, the comments today about winter storm Uri, 01:01:59.400 --> 01:02:01.270 none of that is in the record. 01:02:01.270 --> 01:02:03.263 None of it is substantiated. 01:02:04.160 --> 01:02:05.480 As this Commission knows, 01:02:05.480 --> 01:02:09.397 ERCOT's orders to shed load apply at the distribution level, 01:02:09.397 --> 01:02:11.670 not the transmission level, 01:02:11.670 --> 01:02:14.660 and they applied during winter storm Uri 01:02:14.660 --> 01:02:16.900 to every load serving into the intercon, 01:02:16.900 --> 01:02:19.770 whether that was Rayburn's member, Grayson Collin, 01:02:19.770 --> 01:02:22.070 Encore, or TNMP. 01:02:22.070 --> 01:02:23.810 To suggest that the choice of a 01:02:23.810 --> 01:02:25.890 transmission interconnection, in this case, 01:02:25.890 --> 01:02:28.920 could prevent future outages in a winter storm, 01:02:28.920 --> 01:02:31.412 show that this is a red herring. 01:02:31.412 --> 01:02:33.550 ERCOT's directive to shed load 01:02:33.550 --> 01:02:36.670 don't turn on the transmission interconnections. 01:02:36.670 --> 01:02:38.950 Furthermore, there is record evidence 01:02:38.950 --> 01:02:41.600 indicating that tab option C 01:02:41.600 --> 01:02:45.020 is not a more diverse transmission source. 01:02:45.020 --> 01:02:48.119 Attachment five to exhibit one of the application 01:02:48.119 --> 01:02:51.450 shows that Encore's transmission line is 01:02:51.450 --> 01:02:53.210 a loop transmission line. 01:02:53.210 --> 01:02:55.650 Comes in from the north and from the south 01:02:55.650 --> 01:02:57.800 to tap options A or B, 01:02:57.800 --> 01:03:00.780 whereas TNMP's interconnection at tap option C 01:03:00.780 --> 01:03:03.670 is a radial extension. 01:03:03.670 --> 01:03:08.390 So, in fact, Encore's source is more diverse. 01:03:08.390 --> 01:03:10.809 Regardless, any of these tap options, 01:03:10.809 --> 01:03:12.790 either transmission source will 01:03:12.790 --> 01:03:14.680 meet the need for this project. 01:03:14.680 --> 01:03:16.720 The bottom line is winter storm Uri 01:03:16.720 --> 01:03:18.520 is not a basis upon which to make a 01:03:18.520 --> 01:03:20.824 routing decision in this case. 01:03:20.824 --> 01:03:23.030 You have half a minute left. Briefly address the 01:03:23.030 --> 01:03:25.210 second alternative site. 01:03:25.210 --> 01:03:29.040 Rayburn did, in fact, evaluate this alternative site 01:03:29.040 --> 01:03:31.350 when it was raised very late in the case, 01:03:31.350 --> 01:03:33.550 during cross-rebuttal testimony. 01:03:33.550 --> 01:03:35.620 The evidence is clear that there is a 01:03:35.620 --> 01:03:37.740 eight-foot diameter outfall pipeline 01:03:37.740 --> 01:03:41.000 being built by North Texas at that location. 01:03:41.000 --> 01:03:42.870 North Texas says it's not feasible 01:03:42.870 --> 01:03:45.033 to locate a substation there. (alarm ringing) 01:03:45.033 --> 01:03:47.630 Rayburn's witnesses, who are experts in siting, 01:03:47.630 --> 01:03:49.850 routing and building transmission facilities say 01:03:49.850 --> 01:03:51.623 it's not feasible to locate there. 01:03:52.770 --> 01:03:55.740 Rayburn also testified as to other reasons why 01:03:55.740 --> 01:03:57.900 the second alternative site is inferior 01:03:57.900 --> 01:03:59.600 to the site that it is chosen, 01:03:59.600 --> 01:04:01.590 namely road access and proximity 01:04:01.590 --> 01:04:02.903 to existing circuitry. 01:04:04.010 --> 01:04:06.690 Finally, Rayburn can not condemn North Texas 01:04:06.690 --> 01:04:09.530 as a political subdivision of this state. 01:04:09.530 --> 01:04:11.860 This is the record evidence. 01:04:11.860 --> 01:04:12.930 Thank you, sir. 01:04:12.930 --> 01:04:13.763 You're reached your time. 01:04:13.763 --> 01:04:15.283 I appreciate you closing for us. 01:04:18.140 --> 01:04:23.110 That will, thank you, anybody else, operator? 01:04:23.110 --> 01:04:23.943 Yes sir. 01:04:23.943 --> 01:04:27.460 We do have a line up, Bridget Paul. 01:04:27.460 --> 01:04:28.463 Your line is open. 01:04:29.989 --> 01:04:30.822 Yes, hi. 01:04:30.822 --> 01:04:32.932 My name is Bridget Paul and I live in the 01:04:32.932 --> 01:04:37.932 twin community off of highway five. 01:04:38.866 --> 01:04:41.100 Thank you, Commissioners, for listening to us 01:04:41.100 --> 01:04:44.107 and for all of the citizens that have talked today. 01:04:44.107 --> 01:04:45.820 I just wanted to say that ya know, 01:04:45.820 --> 01:04:47.840 as we begin hearing about this project 01:04:47.840 --> 01:04:50.900 from Rayburn, one thing we have never understood 01:04:50.900 --> 01:04:54.030 is why they decided that pinning the tab 01:04:54.030 --> 01:04:59.030 and putting all these lines in our home communities here 01:05:00.210 --> 01:05:04.150 and one of those tap options is nextdoor to 01:05:04.150 --> 01:05:05.680 an elementary school. 01:05:05.680 --> 01:05:08.090 We've just never understood why that was the best choice 01:05:08.090 --> 01:05:10.230 or why they thought that was the best choice 01:05:10.230 --> 01:05:12.790 given that they did have the east-C route, 01:05:12.790 --> 01:05:15.748 which would have been located in the New Hope communities, 01:05:15.748 --> 01:05:20.748 given that ya know, to help give supply 01:05:21.450 --> 01:05:23.670 and energy supply to the New Hope community. 01:05:23.670 --> 01:05:25.800 We have never understood it from the McKinney side 01:05:25.800 --> 01:05:28.467 why they feel like our little community, 01:05:28.467 --> 01:05:31.124 our little area needs to bear the burden of the project. 01:05:31.124 --> 01:05:34.558 They obviously have lines and costs 01:05:34.558 --> 01:05:37.710 and all those things, but from a citizen standpoint, 01:05:37.710 --> 01:05:40.230 it just does not make sense being that 01:05:40.230 --> 01:05:42.950 this project is specifically built 01:05:42.950 --> 01:05:46.746 based upon the load need for New Hope to burden 01:05:46.746 --> 01:05:50.650 the McKinney community with a tap line 01:05:50.650 --> 01:05:53.843 either right by the community, the community training center 01:05:53.843 --> 01:05:56.290 for the police and firemen, 01:05:56.290 --> 01:05:58.287 or either right by an elementary school. 01:05:58.287 --> 01:06:01.477 There's tons of lines and taking up tons 01:06:01.477 --> 01:06:05.072 throughout our entire career for housing additions 01:06:05.072 --> 01:06:06.510 in the area. 01:06:06.510 --> 01:06:08.810 That just has never made sense to us. 01:06:08.810 --> 01:06:10.800 So, from my standpoint as a citizen, 01:06:10.800 --> 01:06:13.500 that is not necessarily directed affected by it, 01:06:13.500 --> 01:06:16.340 I still do not understand this decision. 01:06:16.340 --> 01:06:19.070 I agree with the interveners and several other 01:06:19.070 --> 01:06:21.976 people that have spoken that the east-C route makes sense 01:06:21.976 --> 01:06:24.740 especially since that is the community that 01:06:24.740 --> 01:06:26.540 needs the project the most 01:06:26.540 --> 01:06:29.304 and they should bear the burden of this project 01:06:29.304 --> 01:06:32.500 with the tap lines, with the property. 01:06:32.500 --> 01:06:34.200 You have one minute left. Wherever the lines need 01:06:34.200 --> 01:06:36.710 to be put, thank you for your time. 01:06:36.710 --> 01:06:37.543 Thank you. 01:06:40.500 --> 01:06:44.390 All right, that will conclude oral arguments 01:06:44.390 --> 01:06:45.393 on this item. 01:06:46.590 --> 01:06:50.140 We've obviously heard a lot of testimony 01:06:50.140 --> 01:06:53.921 about the route of the line but there are a few issues 01:06:53.921 --> 01:06:58.009 I'd like to raise before we get to that point. 01:06:58.009 --> 01:07:03.009 This project stipulates or assumes, 01:07:04.070 --> 01:07:06.720 not only does this go west of our treatment plant, 01:07:06.720 --> 01:07:10.080 which is a substantial, important project in north Texas, 01:07:10.080 --> 01:07:13.600 but it also assumes incredible amount of 01:07:13.600 --> 01:07:14.763 general load growth. 01:07:16.230 --> 01:07:17.890 While nobody will argue that north Texas 01:07:17.890 --> 01:07:19.250 is a high growth area, 01:07:19.250 --> 01:07:22.840 I didn't see a lot of supporting data 01:07:22.840 --> 01:07:25.473 or methodology in that assertion from Rayburn. 01:07:29.505 --> 01:07:33.660 That's initial concern from my perspective. 01:07:33.660 --> 01:07:36.810 In addition, didn't see a lot of 01:07:36.810 --> 01:07:40.910 real deep analysis on opportunities to utilize 01:07:40.910 --> 01:07:45.420 resources outside of the Rayburn universe, 01:07:45.420 --> 01:07:48.940 specifically the resources of Encore and TNMP 01:07:48.940 --> 01:07:51.233 and potential partnerships there. 01:07:53.750 --> 01:07:57.800 So, out of the gates, 01:07:57.800 --> 01:08:01.150 I'd really like to see some more supporting evidence 01:08:01.150 --> 01:08:03.070 from Rayburn on the general load growth 01:08:03.070 --> 01:08:06.810 of such a staggering scale before we move onto 01:08:06.810 --> 01:08:09.740 any potential decision on routing 01:08:09.740 --> 01:08:12.834 to ensure that we really do have that level of load growth. 01:08:12.834 --> 01:08:14.560 That's my initial thought. 01:08:14.560 --> 01:08:16.700 Yeah, I mean, if you hadn't said anything, 01:08:16.700 --> 01:08:20.770 I was gonna ask for a week delay on this, at least, 01:08:20.770 --> 01:08:25.264 to where myself and my staff could file a memo 01:08:25.264 --> 01:08:28.280 basically seeking out the information you just articulated. 01:08:28.280 --> 01:08:30.540 The amount of load growth. 01:08:30.540 --> 01:08:32.058 Does the transmission line-- 01:08:32.058 --> 01:08:36.730 and again, this is a plan that was outside 01:08:36.730 --> 01:08:39.992 of the normal ERCOT transmission planning process. 01:08:39.992 --> 01:08:43.430 So, we kinda have to be more circumspect 01:08:43.430 --> 01:08:45.050 with these proposals, I think, 01:08:45.050 --> 01:08:50.050 'cause it just is outside of that, ya know, 01:08:50.170 --> 01:08:52.310 evaluation process. 01:08:52.310 --> 01:08:56.380 So, in terms of the metrics around load growth, 01:08:56.380 --> 01:08:58.242 I would like to see that. 01:08:58.242 --> 01:09:03.242 Is a transmission line consideration here 01:09:03.750 --> 01:09:08.143 the appropriate means to match this need? 01:09:10.217 --> 01:09:11.860 Then, we had a couple more things 01:09:11.860 --> 01:09:13.829 that we were bouncing around, 01:09:13.829 --> 01:09:15.200 but if we could have more time to articulate that 01:09:15.200 --> 01:09:16.710 in a formalized memo, 01:09:16.710 --> 01:09:19.623 I think it would be well served for everybody. 01:09:20.570 --> 01:09:24.701 Okay, would you like to table this? 01:09:24.701 --> 01:09:28.130 I'd like to table it until our next open meeting 01:09:28.130 --> 01:09:29.830 to where we could file a memo 01:09:29.830 --> 01:09:33.610 and then, give you and staff the ability to 01:09:33.610 --> 01:09:36.440 sort of view that and then take next steps from there. 01:09:36.440 --> 01:09:37.273 Okay. 01:09:41.059 --> 01:09:43.276 Unless you're ready to refer this back. 01:09:43.276 --> 01:09:45.499 What's your thinking? No, that's fine. 01:09:45.499 --> 01:09:49.090 I was gonna offer to remand it to docket management 01:09:49.090 --> 01:09:51.330 with instructions to go solicit that information 01:09:51.330 --> 01:09:52.908 from Rayburn. That's fine. 01:09:52.908 --> 01:09:55.140 But if you need some more time to clarify 01:09:55.140 --> 01:09:56.900 what information you want, 01:09:56.900 --> 01:09:58.610 then we'll certainly take that time. 01:09:58.610 --> 01:10:01.185 Load growth was already on my list. 01:10:01.185 --> 01:10:04.220 Type of technologies used also, 01:10:04.220 --> 01:10:07.550 as you're going back on partner organizations. 01:10:07.550 --> 01:10:10.760 The IOUs, I'm fine with that. 01:10:10.760 --> 01:10:13.160 So if you wanna remand back to docket management, 01:10:13.160 --> 01:10:15.384 I'll follow your lead on it. 01:10:15.384 --> 01:10:18.900 Okay and I do wanna make sure 01:10:18.900 --> 01:10:22.830 we balance the desire for that more in-depth analysis 01:10:22.830 --> 01:10:24.410 and more detailed information, 01:10:24.410 --> 01:10:25.920 but I don't want it to be 01:10:27.603 --> 01:10:30.280 an overly onerous process that says to go 01:10:30.280 --> 01:10:31.530 west of our treatment plant, which we know 01:10:31.530 --> 01:10:33.423 is needed. That's right. 01:10:33.423 --> 01:10:36.820 That will need power soon, so I don't wanna 01:10:36.820 --> 01:10:39.673 delay the process too long but, 01:10:41.080 --> 01:10:42.660 we do need that additional information. 01:10:42.660 --> 01:10:45.260 Yeah and again, in the interest of expediency, 01:10:45.260 --> 01:10:48.130 if you wanna get it back to em so that we can 01:10:48.130 --> 01:10:49.780 start getting answers to those questions, 01:10:49.780 --> 01:10:50.803 I would support ya. 01:10:52.810 --> 01:10:53.643 Fair enough. 01:10:53.643 --> 01:10:55.430 Motion to remand this to docket management 01:10:55.430 --> 01:10:57.460 with instructions to get more comprehensive analysis 01:10:57.460 --> 01:10:59.550 justifying the assertion of general load growth 01:10:59.550 --> 01:11:03.630 and use of analysis of technologies. 01:11:03.630 --> 01:11:08.423 Technologies and partner organizations. 01:11:09.730 --> 01:11:11.550 Is there a motion? 01:11:11.550 --> 01:11:13.300 Stephen? Just to clarify 01:11:13.300 --> 01:11:17.120 the phrase technologies, we're talking distribution 01:11:17.120 --> 01:11:19.233 versus transmission. Correct, yeah. 01:11:21.280 --> 01:11:22.660 So moved. 01:11:22.660 --> 01:11:23.493 I second. 01:11:23.493 --> 01:11:24.326 All in favor, say aye. 01:11:24.326 --> 01:11:25.240 Aye. Aye. 01:11:25.240 --> 01:11:26.163 Motion passes. 01:11:27.710 --> 01:11:29.883 Next item is number 20, Mr. Jenae? 01:11:36.350 --> 01:11:39.790 Item 20 is docket 51257. 01:11:39.790 --> 01:11:43.730 This is a petition of East Texas Saltwater Disposal Company 01:11:43.730 --> 01:11:47.470 for a declaratory order and a request to open 01:11:47.470 --> 01:11:49.863 a pilot project implementation project. 01:11:51.190 --> 01:11:52.023 Thank you sir. 01:11:52.023 --> 01:11:54.810 This one, to me, was pretty clear 01:11:54.810 --> 01:11:57.400 that the pilot project had been canceled. 01:11:57.400 --> 01:12:01.230 While we do have certain related authorities 01:12:01.230 --> 01:12:05.325 to start a new one, I don't think this is 01:12:05.325 --> 01:12:07.690 the appropriate mechanism to do so 01:12:07.690 --> 01:12:09.920 and I certainly don't think it's the appropriate time 01:12:09.920 --> 01:12:11.883 given the legislation we've just been, 01:12:12.870 --> 01:12:14.270 that's just come out of the capital 01:12:14.270 --> 01:12:18.860 in terms of a broader evaluation of our system. 01:12:18.860 --> 01:12:20.858 No, my view, this wasn't what 01:12:20.858 --> 01:12:24.823 declaratory orders were designed for. 01:12:27.060 --> 01:12:31.240 So, I'm in line with you, I believe, on that one 01:12:31.240 --> 01:12:36.240 and I would move to reject the petitioner's request 01:12:36.330 --> 01:12:38.070 for a declaratory order. 01:12:38.070 --> 01:12:39.610 Second, all in favor, say aye. 01:12:39.610 --> 01:12:40.443 Aye. Aye. 01:12:40.443 --> 01:12:41.323 Motion passes. 01:12:43.840 --> 01:12:44.853 21, please sir. 01:12:45.780 --> 01:12:49.000 Item 21 is docket 51406. 01:12:49.000 --> 01:12:53.750 It's the application of Entergy Texas to amend its TCRF. 01:12:53.750 --> 01:12:56.250 Before you is a proposed order that would amend 01:12:56.250 --> 01:13:00.061 Entergy's TCRF in accordance with agreement of parties. 01:13:00.061 --> 01:13:03.573 The ALJ filed a memo amending the proposed order. 01:13:04.690 --> 01:13:06.973 This one seemed pretty straightforward to me. 01:13:08.810 --> 01:13:13.030 Move to approve with the corrected memo. 01:13:13.030 --> 01:13:14.010 Second, all in favor, say aye. 01:13:14.010 --> 01:13:14.870 Aye. Aye. 01:13:14.870 --> 01:13:15.833 Motion passes. 01:13:17.070 --> 01:13:18.313 Number 22, please sir. 01:13:19.340 --> 01:13:21.833 Item 22 is docket 51409. 01:13:21.833 --> 01:13:26.480 It's the application of City of San Antonio CPS 01:13:26.480 --> 01:13:28.570 to amend its wholesale transmission customer 01:13:28.570 --> 01:13:31.750 primary distribution voltage service tariff. 01:13:31.750 --> 01:13:35.000 Before you is a draft preliminary order. 01:13:35.000 --> 01:13:39.640 This one has a lot of big issues in it. 01:13:39.640 --> 01:13:40.473 Yep. 01:13:43.401 --> 01:13:47.120 This is a bigger issue 01:13:47.120 --> 01:13:50.410 than just this docket or the other similar docket 01:13:50.410 --> 01:13:51.660 that we've got coming up. 01:13:52.951 --> 01:13:57.284 I'm caught between the need for a more comprehensive 01:14:01.007 --> 01:14:05.910 and overarching approach to the challenge 01:14:05.910 --> 01:14:07.663 of these resources, 01:14:09.357 --> 01:14:11.890 balancing that with the need to 01:14:11.890 --> 01:14:14.405 move ahead to get these resources online 01:14:14.405 --> 01:14:19.360 and not leave stranded assets, if you will. 01:14:19.360 --> 01:14:20.949 No, I think that's right. 01:14:20.949 --> 01:14:24.803 Just for who is deploying them, ya know, 01:14:24.803 --> 01:14:28.780 not all the market participants are the same 01:14:28.780 --> 01:14:29.640 when it comes to this. 01:14:29.640 --> 01:14:33.310 So, I think we need to look, batteries need to pay for, 01:14:33.310 --> 01:14:35.120 in my view, batteries need to pay for tariffs 01:14:35.120 --> 01:14:36.470 related to hooking them up. 01:14:38.050 --> 01:14:39.770 Everybody's gotta be in on this. 01:14:39.770 --> 01:14:41.320 It's a valued technology. 01:14:41.320 --> 01:14:42.760 We need it deployed, 01:14:42.760 --> 01:14:45.773 but the appropriate assignment of costs. 01:14:47.760 --> 01:14:52.760 On this one though, I agree with the preliminary order. 01:14:54.957 --> 01:14:57.360 But I do think we need a long-term conversation 01:14:57.360 --> 01:14:58.640 on the nuances of batteries. 01:14:58.640 --> 01:15:00.380 I think we're gonna get that 01:15:00.380 --> 01:15:02.721 as we move through some of the projects 01:15:02.721 --> 01:15:05.610 related to SB3 and related legislation. 01:15:05.610 --> 01:15:07.929 Like we were just directed to 01:15:07.929 --> 01:15:09.340 start figuring that out That's right. 01:15:09.340 --> 01:15:11.590 on a shorter rather than longer time frame. 01:15:14.270 --> 01:15:16.010 So, I agree with you. 01:15:16.010 --> 01:15:19.960 I think the preliminary order, 01:15:19.960 --> 01:15:23.050 while an imperfect tool, is appropriate in this case, 01:15:23.050 --> 01:15:25.433 but I would also say that this topic is something 01:15:25.433 --> 01:15:28.620 that would be a prime candidate for our work sessions, 01:15:28.620 --> 01:15:31.520 for discussion and invitation of experts, 01:15:31.520 --> 01:15:34.720 participants to start working through these issues. 01:15:34.720 --> 01:15:36.070 Yeah, batteries time has come. 01:15:36.070 --> 01:15:39.070 We need to start talking about it in the open. 01:15:39.070 --> 01:15:40.220 Yep, absolutely. 01:15:40.220 --> 01:15:42.760 So with that, I would move to approve 01:15:42.760 --> 01:15:44.070 the preliminary order 01:15:44.070 --> 01:15:47.012 and there's not a corrective memo on this one, 01:15:47.012 --> 01:15:48.000 is there? No sir. 01:15:48.000 --> 01:15:49.330 Second, all in favor, say aye. 01:15:49.330 --> 01:15:50.200 Aye. Aye. 01:15:50.200 --> 01:15:51.823 Motion passes. 01:15:51.823 --> 01:15:54.103 Look, if you're in agreement, 01:15:54.103 --> 01:15:55.659 we'll look forward to including that 01:15:55.659 --> 01:15:57.820 on a work session agenda soon. 01:15:57.820 --> 01:15:58.653 Yes sir. 01:15:59.760 --> 01:16:01.283 Item 23, please sir. 01:16:01.283 --> 01:16:03.990 Item 23 is docket 51518. 01:16:03.990 --> 01:16:07.206 It is a nonstandard true-up for AEP Texas 01:16:07.206 --> 01:16:10.610 in accordance with the financing or the Commission issues 01:16:10.610 --> 01:16:13.120 in docket 39931. 01:16:13.120 --> 01:16:15.230 There's a proposed order that would amend 01:16:15.230 --> 01:16:18.641 AEP's tariff to adjust certain transition charges. 01:16:18.641 --> 01:16:22.060 Commission considered this at the April 7 open meeting 01:16:23.047 --> 01:16:25.030 and issued an order requesting AEP 01:16:25.030 --> 01:16:26.893 to supplement its application. 01:16:27.810 --> 01:16:30.195 That information was submitted and has been admitted 01:16:30.195 --> 01:16:32.450 into evidence in this docket. 01:16:32.450 --> 01:16:34.910 I filed a memo to revise the proposed order 01:16:34.910 --> 01:16:36.403 to reflect that filing. 01:16:37.770 --> 01:16:39.990 This one, I thought, was pretty straightforward. 01:16:39.990 --> 01:16:41.210 Any thoughts? 01:16:41.210 --> 01:16:43.937 No, they need the revenue to cover the transition costs. 01:16:43.937 --> 01:16:47.640 Ya know, as one segment declines, 01:16:47.640 --> 01:16:49.600 then the others have to take up the slack. 01:16:49.600 --> 01:16:53.880 So, in that sense, the staff order 01:16:56.150 --> 01:16:57.700 covers the justification requirements. 01:16:57.700 --> 01:17:00.100 So, I'd move to approve the final order 01:17:00.100 --> 01:17:00.990 and corrective memo. 01:17:00.990 --> 01:17:03.030 Second, all in favor, say aye. 01:17:03.030 --> 01:17:04.410 Aye. Aye. 01:17:04.410 --> 01:17:05.810 Motion passes. 01:17:05.810 --> 01:17:07.200 Item 24, please sir. 01:17:07.200 --> 01:17:09.760 Item 24 is docket 51606. 01:17:09.760 --> 01:17:12.360 It's the application of Medina Electric Cooperative 01:17:12.360 --> 01:17:14.210 for a wholesale transmission service 01:17:14.210 --> 01:17:16.920 at distribution voltage tariff. 01:17:16.920 --> 01:17:19.228 Before you is a draft preliminary order. 01:17:19.228 --> 01:17:20.061 Thank you, sir. 01:17:20.061 --> 01:17:22.730 I think this covers a lot of the same issues 01:17:22.730 --> 01:17:24.037 as the 51409. 01:17:28.236 --> 01:17:33.236 I think this is the correct preliminary order. 01:17:33.420 --> 01:17:36.213 Gets it right, it's an imperfect tool, 01:17:37.250 --> 01:17:39.760 but the right thing at this moment 01:17:39.760 --> 01:17:43.620 with the contingency that we will be taking up 01:17:43.620 --> 01:17:46.260 this issue in a more robust manner going forward. 01:17:46.260 --> 01:17:48.610 Yep, same thoughts apply as the previous project, 01:17:48.610 --> 01:17:51.540 so I'd move to approve the preliminary order. 01:17:51.540 --> 01:17:53.150 Second, all in favor, say aye. 01:17:53.150 --> 01:17:53.983 Aye. Aye. 01:17:53.983 --> 01:17:54.973 Motion passes. 01:17:56.160 --> 01:17:57.050 25, pleas sir. 01:17:57.050 --> 01:18:00.250 Item 25 is docket 51644. 01:18:00.250 --> 01:18:03.670 It's the application of SBS to implement 01:18:03.670 --> 01:18:07.390 a net surcharge associated with docket 49831, 01:18:07.390 --> 01:18:10.040 their last place rate case, 01:18:10.040 --> 01:18:12.360 to true-up their temporary rates. 01:18:12.360 --> 01:18:15.000 Before you is a second, correct proposed order 01:18:15.000 --> 01:18:17.270 that was filed on June 8th that would authorize 01:18:17.270 --> 01:18:20.644 SBS to basically surcharge and refund 01:18:20.644 --> 01:18:23.530 its customers the difference between the temporary 01:18:23.530 --> 01:18:25.830 and final rates in that docket. 01:18:25.830 --> 01:18:28.770 The second corrective order was really focused on 01:18:28.770 --> 01:18:30.433 fixing the tariff in this case. 01:18:32.505 --> 01:18:34.433 So, that's what you have before you. 01:18:35.554 --> 01:18:38.243 Another one that's fairly straightforward. 01:18:39.177 --> 01:18:42.000 I think the proposal really got it right, thoughts? 01:18:42.000 --> 01:18:43.810 Yeah, we're truing up true-ups 01:18:43.810 --> 01:18:46.000 and I think it's important to know how many times 01:18:46.000 --> 01:18:47.875 this has come under staff's review 01:18:47.875 --> 01:18:50.430 as they try to get the numbers right. 01:18:50.430 --> 01:18:54.846 So, no, I'd move to approve the order. 01:18:54.846 --> 01:18:56.782 However, with the order in paragraph 01:18:56.782 --> 01:18:59.790 and just make sure I'm gettin' this right, 01:18:59.790 --> 01:19:02.870 paragraph number six would remand back to OPDM 01:19:02.870 --> 01:19:04.850 to process the true-up mechanism 01:19:04.850 --> 01:19:06.890 through a compliance proceeding. 01:19:06.890 --> 01:19:10.533 Is that kinda where we settled on ongoing procedurally? 01:19:10.533 --> 01:19:13.990 I believe under order six in the proposed order, 01:19:13.990 --> 01:19:18.223 there will be a reconciliation of this surcharge. 01:19:19.090 --> 01:19:22.950 It'll take a filing and docket management can process that 01:19:22.950 --> 01:19:25.270 unless it gets too antagonistic. 01:19:25.270 --> 01:19:26.463 Yep, understood. 01:19:28.807 --> 01:19:29.640 So moved. 01:19:31.300 --> 01:19:33.432 Second, all in favor, say aye. 01:19:33.432 --> 01:19:34.265 Aye. Aye. 01:19:34.265 --> 01:19:35.490 Motion passes. 01:19:35.490 --> 01:19:37.840 Item 26 was consented 01:19:37.840 --> 01:19:40.210 and item 27 was removed from the agenda. 01:19:40.210 --> 01:19:43.210 I don't have anything for items 28 through 32. 01:19:43.210 --> 01:19:44.043 Nor I. 01:19:45.860 --> 01:19:50.697 That will get us to item 33 regarding ERCOT oversight. 01:19:54.109 --> 01:19:56.210 I don't have anything on this other than to provide 01:19:56.210 --> 01:20:00.180 you an update and the rest of the staff 01:20:00.180 --> 01:20:02.530 and the Commission with, 01:20:02.530 --> 01:20:05.863 on ERCOT's board meeting earlier this week, 01:20:06.950 --> 01:20:09.700 obviously, that overlap with the Governor's signing 01:20:09.700 --> 01:20:12.170 of SB2, which is a substantial change 01:20:12.170 --> 01:20:13.470 to that board's structure, 01:20:14.323 --> 01:20:18.060 for the time being, the old ERCOT board 01:20:18.060 --> 01:20:20.580 is continuing with business as usual but, 01:20:20.580 --> 01:20:23.685 limiting their scope to mission critical items 01:20:23.685 --> 01:20:26.565 to ensure we have continuity of operations and governance. 01:20:26.565 --> 01:20:30.720 In the meantime, I know the Lieutenant Governor 01:20:30.720 --> 01:20:35.420 and the speaker are working to implement SB2 01:20:35.420 --> 01:20:38.150 and in particular, the designation of the 01:20:38.150 --> 01:20:40.820 selection committee as directed in that legislation. 01:20:40.820 --> 01:20:42.890 They are working to implement that 01:20:42.890 --> 01:20:45.860 as quickly as possible. 01:20:45.860 --> 01:20:47.960 They're moving rapidly on it. 01:20:47.960 --> 01:20:50.080 So, that is in process 01:20:50.080 --> 01:20:55.080 and I appreciate all the stakeholders across the board 01:20:55.610 --> 01:20:58.590 who are helping make that a smooth transition. 01:20:58.590 --> 01:21:02.150 That's, as you know, a substantial change 01:21:02.150 --> 01:21:06.710 in our governance which was of course, the goal of SB2. 01:21:06.710 --> 01:21:07.543 Great. 01:21:08.410 --> 01:21:13.410 On that, as we just talk through mechanics and staff, 01:21:14.708 --> 01:21:17.560 I'd welcome their input on this 01:21:17.560 --> 01:21:20.833 'cause I know that I have been asked by stakeholders, 01:21:22.580 --> 01:21:26.121 including people that are on the ERCOT board, 01:21:26.121 --> 01:21:30.450 just on the mechanics side of SB2 implementation, 01:21:30.450 --> 01:21:32.460 but also some of the necessities of 01:21:35.200 --> 01:21:39.083 House Bill 1492 or 4492, Securitization. 01:21:41.330 --> 01:21:43.973 As we get into ERCOT processing, 01:21:43.973 --> 01:21:47.880 the ancillary service securitization 01:21:47.880 --> 01:21:50.713 and the RDPA securitization, 01:21:55.070 --> 01:21:57.410 what's the chicken or the egg in that situation, 01:21:57.410 --> 01:22:02.410 meaning will this board or at least ERCOT-- 01:22:02.420 --> 01:22:03.253 We're sorry. 01:22:03.253 --> 01:22:05.916 Your conference will end in five minutes. 01:22:05.916 --> 01:22:06.750 (laughing) 01:22:06.750 --> 01:22:08.037 Your time's up, Will. 01:22:08.037 --> 01:22:08.951 It's a brave new world. 01:22:08.951 --> 01:22:10.060 (laughing) 01:22:10.060 --> 01:22:13.530 Will ERCOT start a process of the opt-outs 01:22:13.530 --> 01:22:16.010 for market participants to narrow the scope 01:22:16.010 --> 01:22:21.010 of the pool of qualified folks for securitization? 01:22:22.960 --> 01:22:25.410 What are your views on that in terms of the mechanics 01:22:25.410 --> 01:22:28.020 as it relates to SB2 implementation? 01:22:28.020 --> 01:22:29.950 Commissioners, could I interrupt you just for a minute 01:22:29.950 --> 01:22:32.250 and can you talk to Colin and make sure 01:22:32.250 --> 01:22:34.530 this is not gonna terminate? 01:22:34.530 --> 01:22:35.363 Oh, that's true. 01:22:35.363 --> 01:22:36.693 I guess for the public's purpose. 01:22:39.110 --> 01:22:39.943 Yes sir. 01:22:39.943 --> 01:22:42.950 I actually just extended it by 30 minutes. 01:22:42.950 --> 01:22:43.783 Thank you sir. 01:22:43.783 --> 01:22:44.980 Thank you, Colin. 01:22:44.980 --> 01:22:46.023 You're welcome. 01:22:47.040 --> 01:22:48.538 So the question whether 01:22:48.538 --> 01:22:49.797 SB2 or 4492-- In terms of the decision-- 01:22:51.510 --> 01:22:54.140 well, it kinda goes hand in glove a bit, 01:22:54.140 --> 01:22:57.597 meaning SB2, we now have the board, 01:22:57.597 --> 01:23:00.870 which can make mission critical decisions still 01:23:00.870 --> 01:23:03.541 to ensure continuity of effort. 01:23:03.541 --> 01:23:06.180 But then, because of the short fuse 01:23:06.180 --> 01:23:09.067 on some of the things coming up with securitization, 01:23:09.067 --> 01:23:10.360 essentially how do you 01:23:10.360 --> 01:23:11.761 view that work? Yep, gotcha. 01:23:11.761 --> 01:23:14.500 So, first and foremost, 4492 and 1580 01:23:15.459 --> 01:23:16.890 are still on the Governor's desk. 01:23:16.890 --> 01:23:17.723 That's true. 01:23:17.723 --> 01:23:22.123 So, we're awaiting his consideration of that legislation. 01:23:22.123 --> 01:23:22.956 Yep. 01:23:23.960 --> 01:23:27.230 It really will defer to that but, 01:23:27.230 --> 01:23:29.440 in the event the Governor does sign it, 01:23:29.440 --> 01:23:34.210 the process of implementation will be 01:23:34.210 --> 01:23:38.170 a close coordination with PUC, with the Commission 01:23:38.170 --> 01:23:41.031 and ERCOT, current ERCOT 01:23:41.031 --> 01:23:43.795 executive team. Current ERCOT, okay. 01:23:43.795 --> 01:23:45.960 Especially the executive team 01:23:45.960 --> 01:23:48.451 in implementing that and the comptroller. 01:23:48.451 --> 01:23:52.182 All three of those agencies are directly 01:23:52.182 --> 01:23:54.870 identified in that legislation. 01:23:54.870 --> 01:23:58.270 So that will, pending the Governor's consideration, 01:23:58.270 --> 01:24:02.750 those three parties will be building out that process 01:24:02.750 --> 01:24:05.783 and you're correct in identifying that it is not a, 01:24:07.690 --> 01:24:11.790 it is a complicated process 01:24:11.790 --> 01:24:15.120 with several, lots of moving parts. 01:24:15.120 --> 01:24:18.960 But it is also something that, if signed, 01:24:18.960 --> 01:24:20.874 it is designed to really provide 01:24:20.874 --> 01:24:24.580 personal protection to consumers 01:24:24.580 --> 01:24:28.450 through that securitization, so something that 01:24:28.450 --> 01:24:33.450 would need to be implemented expeditiously, if signed. 01:24:34.252 --> 01:24:35.567 Okay. 01:24:35.567 --> 01:24:37.770 The ERCOT staff right now, 01:24:37.770 --> 01:24:40.240 pending the Governor's signature and the mechanics 01:24:40.240 --> 01:24:45.173 being adopted therein, can work out details, 01:24:47.540 --> 01:24:49.257 well eventually, can flow through the process 01:24:49.257 --> 01:24:51.640 and the Commission ultimately can handle 01:24:51.640 --> 01:24:53.410 any of that in the near term. 01:24:53.410 --> 01:24:55.510 So, for the purposes of stakeholders 01:24:55.510 --> 01:24:57.430 and markets out there watching this, 01:24:57.430 --> 01:24:59.676 we've got the ability to fly the plane. 01:24:59.676 --> 01:25:02.610 We're still gonna have the ability to fly the plane 01:25:02.610 --> 01:25:03.980 after adoption. Absolutely. 01:25:03.980 --> 01:25:05.850 So okay, just wanted to clarify. 01:25:05.850 --> 01:25:06.963 Absolutely. 01:25:08.198 --> 01:25:09.503 Very, very fair point. 01:25:12.685 --> 01:25:13.857 I don't have anything else on 34 through 38, do you? 01:25:16.620 --> 01:25:17.453 No sir. 01:25:18.610 --> 01:25:23.160 All right, we will be meeting in closed session today. 01:25:23.160 --> 01:25:27.350 So, having convened a duly noticed open meeting, 01:25:27.350 --> 01:25:31.600 Commission will, at 10:58 AM on June 11th, 01:25:31.600 --> 01:25:33.850 hold a closed session pursuant to Chapter 551 01:25:34.700 --> 01:25:37.200 of the Texas government code, sections 551.071, 01:25:37.200 --> 01:25:41.303 551.074 and 551.076. 01:26:17.430 --> 01:26:21.685 Commission of Texas concluded at 12:02 PM 01:26:21.685 --> 01:26:26.685 on June 11th, 2021 and the Commission will now resume its-- 01:26:27.670 --> 01:26:29.140 Take no action out of closed session. 01:26:29.140 --> 01:26:32.433 We took no action, no action was taken in closed session. 01:26:34.770 --> 01:26:38.773 Commission will resume its public meeting at 12:03 PM. 01:26:39.850 --> 01:26:43.163 I'm sorry, I got you off your script there, didn't I? 01:26:43.163 --> 01:26:45.793 It's fine, we can adapt. 01:26:46.840 --> 01:26:50.660 The chair of the Commission was remiss earlier 01:26:50.660 --> 01:26:53.070 in going through the agenda and neglected to call up 01:26:53.070 --> 01:26:54.710 item number 10. 01:26:54.710 --> 01:26:56.970 We will call that item up at this point 01:26:56.970 --> 01:26:58.463 with apologies to Mr. Barlow. 01:27:00.680 --> 01:27:02.460 Chairman Lake, Commissioner McAdams, 01:27:02.460 --> 01:27:03.420 thank you for a moment. 01:27:03.420 --> 01:27:05.570 Andrew Barlow on behalf of Commission staff. 01:27:05.570 --> 01:27:07.210 Wanted to provide you a requested update 01:27:07.210 --> 01:27:09.470 on our communications efforts, 01:27:09.470 --> 01:27:11.700 going with flying formation with ERCOT 01:27:11.700 --> 01:27:14.410 to continue our efforts to inform Texans, 01:27:14.410 --> 01:27:17.175 as the summer approaches, to make sure that they're prepared 01:27:17.175 --> 01:27:19.230 for any of the eventualities, ya know, 01:27:19.230 --> 01:27:22.160 as ERCOT manages the grid. 01:27:22.160 --> 01:27:24.311 Couple of the main things that we've been working on, 01:27:24.311 --> 01:27:26.375 I think we have a good communications plan in place. 01:27:26.375 --> 01:27:29.158 Couple of items, I think, of note. 01:27:29.158 --> 01:27:34.158 We have a good, working draft of the summer-specific page 01:27:34.890 --> 01:27:38.814 for the PUC that contains a variety of resources 01:27:38.814 --> 01:27:42.410 ranging from here's what happens on the grid 01:27:42.410 --> 01:27:43.680 when things start to heat up, 01:27:43.680 --> 01:27:45.930 has extensive information on how to find 01:27:45.930 --> 01:27:48.980 financial relief or assistance on bill payment. 01:27:48.980 --> 01:27:50.840 Also just talks about how to conserve energy, 01:27:50.840 --> 01:27:53.500 that kinda thing and we tried to present it in a way that 01:27:53.500 --> 01:27:56.484 makes it accessible, easy to find, 01:27:56.484 --> 01:27:58.800 and gives consumers an easy action to take 01:27:58.800 --> 01:28:00.970 and that can include how to file a complaint 01:28:00.970 --> 01:28:03.350 with the PUC, how to find conservation tips, 01:28:03.350 --> 01:28:05.620 what's the grid status, that sort of thing. 01:28:05.620 --> 01:28:07.320 So, that's in place. 01:28:07.320 --> 01:28:09.465 We're also working, as we discussed, 01:28:09.465 --> 01:28:11.520 on reporter education. 01:28:11.520 --> 01:28:16.520 We are currently setting a date of having a WebEx, 01:28:16.560 --> 01:28:19.010 inviting reporters from across the state 01:28:19.010 --> 01:28:21.869 from any media channel to join us on Thursday 01:28:21.869 --> 01:28:24.450 of next week where we're gonna have a presentation 01:28:24.450 --> 01:28:26.230 from ERCOT where we're just essentially 01:28:26.230 --> 01:28:28.880 gonna walk them through, here's what ERCOT does 01:28:28.880 --> 01:28:31.080 in the event of tied good conditions. 01:28:31.080 --> 01:28:34.380 Here's what happens should reserves drop 01:28:34.380 --> 01:28:35.290 to certain levels. 01:28:35.290 --> 01:28:37.070 That way, so they're just conversant. 01:28:37.070 --> 01:28:39.730 In the process, we'll also talk about what they 01:28:39.730 --> 01:28:41.440 should expect to hear from us 01:28:41.440 --> 01:28:43.220 and also then provide resources to them 01:28:43.220 --> 01:28:45.128 so that they can effectively tell the story 01:28:45.128 --> 01:28:46.480 to their audiences. 01:28:46.480 --> 01:28:48.770 The goal is to do this next week 01:28:48.770 --> 01:28:50.070 so that they're fully informed 01:28:50.070 --> 01:28:52.840 because with the first day of summer coming on June 20th, 01:28:52.840 --> 01:28:54.800 we felt that it was important to get this information 01:28:54.800 --> 01:28:56.620 in their hands so that they can make it 01:28:56.620 --> 01:28:58.860 part of their stories and as I mentioned, I believe, 01:28:58.860 --> 01:29:03.050 in our past conversation, two of the focal points 01:29:03.050 --> 01:29:04.980 for reporter outreach, I wanna really focus on 01:29:04.980 --> 01:29:06.520 meteorologists across the state. 01:29:06.520 --> 01:29:08.680 I really feel like when they're reporting on the weather, 01:29:08.680 --> 01:29:11.080 it's a natural segway for them to just discuss 01:29:11.080 --> 01:29:14.100 just some essentials on the grid and what people can expect. 01:29:14.100 --> 01:29:17.486 Also, obviously, consumer advocates in different markets 01:29:17.486 --> 01:29:21.420 because they seem to be, along with investigative reporters 01:29:21.420 --> 01:29:23.470 and even more so, they tend to be the ones that 01:29:23.470 --> 01:29:25.337 are really working on these issues 01:29:25.337 --> 01:29:27.500 and that pertains to everything from 01:29:27.500 --> 01:29:29.500 finding financial assistance for bills 01:29:29.500 --> 01:29:32.900 and just what the impact's on their audience's 01:29:32.900 --> 01:29:34.050 financial life will be. 01:29:35.241 --> 01:29:37.040 So, we are continuing to work closely 01:29:37.040 --> 01:29:39.510 with ERCOT on those issues and just putting 01:29:39.510 --> 01:29:42.420 the resources we can into place to inform folks. 01:29:42.420 --> 01:29:44.940 Also wanted to let you know that our goal today 01:29:44.940 --> 01:29:47.110 is to go ahead and get out a press release 01:29:48.047 --> 01:29:49.710 that will be shortly available for your review 01:29:49.710 --> 01:29:51.760 that talks about the ending of the disconnection 01:29:51.760 --> 01:29:54.420 for nonpayment moratorium with the accompanying 01:29:54.420 --> 01:29:56.410 resources for Texans so we can get them the 01:29:56.410 --> 01:29:59.297 information they need to get the resources 01:29:59.297 --> 01:30:00.210 and the help that they need to make sure 01:30:00.210 --> 01:30:03.350 that they're up-to-date on their bill payments. 01:30:03.350 --> 01:30:04.183 Excellent. 01:30:04.183 --> 01:30:06.420 Excellent point about the meteorologists. 01:30:06.420 --> 01:30:09.360 Could we also get our accompanying one-pagers 01:30:09.360 --> 01:30:11.930 on that to all the legislative offices 01:30:11.930 --> 01:30:13.340 so that that could be distributed? 01:30:13.340 --> 01:30:16.261 Yes, so both the one-pager 01:30:16.261 --> 01:30:18.800 and the accompanying infographic 01:30:18.800 --> 01:30:20.710 will both go live on the PUC site 01:30:20.710 --> 01:30:22.750 here probably within the next 90 minutes 01:30:22.750 --> 01:30:24.380 and those will be included in the email 01:30:24.380 --> 01:30:26.280 that Mike Hoak is preparing to send out 01:30:26.280 --> 01:30:28.165 to legislators this afternoon. 01:30:28.165 --> 01:30:29.855 Great. 01:30:29.855 --> 01:30:31.696 Good point. 01:30:31.696 --> 01:30:35.550 Is this the first, the PUC is working 01:30:35.550 --> 01:30:38.160 on the summer only page? 01:30:38.160 --> 01:30:39.680 Is that the first time we've done that 01:30:39.680 --> 01:30:41.510 or is that something we do? 01:30:41.510 --> 01:30:44.189 So, we did a winter storm event page. 01:30:44.189 --> 01:30:47.959 So, we just felt that in the interest of 01:30:47.959 --> 01:30:50.630 really providing a one-stop shop 01:30:50.630 --> 01:30:52.520 for people to get the information that they need. 01:30:52.520 --> 01:30:55.090 It really, more than anything, aggregates existing 01:30:55.090 --> 01:30:57.780 information but again, we are also creating 01:30:57.780 --> 01:30:59.791 some resources that really specifically, 01:30:59.791 --> 01:31:01.837 kind of in a single page format, 01:31:01.837 --> 01:31:04.670 with emphasis on easily understood graphics, 01:31:04.670 --> 01:31:06.120 easily understood language, 01:31:06.120 --> 01:31:08.373 with the ability to link to more detailed information 01:31:08.373 --> 01:31:12.050 so that customers, ya know, and even market participants 01:31:12.050 --> 01:31:14.500 can drill as deeply as they would like 01:31:14.500 --> 01:31:16.150 to get the level of information that they need 01:31:16.150 --> 01:31:16.983 in the moment. 01:31:17.950 --> 01:31:18.970 Excellent. 01:31:18.970 --> 01:31:20.620 I think that's a targeted resource. 01:31:20.620 --> 01:31:23.520 Going into summer, this is outstanding. 01:31:23.520 --> 01:31:28.140 Also too, we are in conversation again with T-DEM 01:31:28.140 --> 01:31:31.217 about how we can mesh with their communications networks 01:31:31.217 --> 01:31:36.030 that they use in the events of disasters of different scales 01:31:36.030 --> 01:31:37.900 and we're gonna be working with them. 01:31:37.900 --> 01:31:40.250 Also, in conversation about how do we 01:31:40.250 --> 01:31:43.100 execute on the legislative mandate 01:31:43.100 --> 01:31:46.861 to begin utilizing the emergency alert system 01:31:46.861 --> 01:31:49.970 in times of especially tight conditions. 01:31:49.970 --> 01:31:51.080 Excellent. 01:31:51.080 --> 01:31:52.360 Excellent work, Mr. Barlow. 01:31:52.360 --> 01:31:53.750 Thank you, sir. 01:31:53.750 --> 01:31:54.583 Thanks Andrew. 01:31:54.583 --> 01:31:55.523 Yes sir. 01:31:56.970 --> 01:31:57.870 I appreciate it. 01:32:00.760 --> 01:32:04.470 All right, having no further business, 01:32:04.470 --> 01:32:09.200 the open meeting of the Public Utility Commission 01:32:09.200 --> 01:32:10.200 is hereby adjourned. 01:32:11.108 --> 01:32:11.941 (gavel slams)