WEBVTT 00:00:07.825 --> 00:00:10.530 (gavel bangs) 00:00:10.530 --> 00:00:13.050 This meeting of the Public Utility Commission of Texas 00:00:13.050 --> 00:00:14.520 will come to order to consider matters 00:00:14.520 --> 00:00:16.040 that have been duly posted 00:00:16.040 --> 00:00:20.280 with the Secretary of State of Texas for July 15th, 2021. 00:00:20.280 --> 00:00:21.860 For the record, my name is Peter Lake. 00:00:21.860 --> 00:00:24.583 And with me today is Will McAdams and Lori Cobos. 00:00:25.570 --> 00:00:27.100 I apologize for the delayed start. 00:00:27.100 --> 00:00:30.377 We had a Senate confirmation hearing this morning. 00:00:30.377 --> 00:00:32.490 I'd like to congratulate Commissioner Cobos 00:00:32.490 --> 00:00:35.140 for a job very well done. 00:00:35.140 --> 00:00:38.993 Thank you, Chairman Lake. (audience applauding) 00:00:45.120 --> 00:00:49.280 Another brief announcement before we dive into our agenda. 00:00:49.280 --> 00:00:51.740 I am going to be recusing myself 00:00:51.740 --> 00:00:55.143 from any and all items related to HB 4492, 00:00:56.490 --> 00:00:59.590 and that securitization to ensure I can work directly 00:00:59.590 --> 00:01:03.030 with the ERCOT team and folks at the PUC, 00:01:03.030 --> 00:01:05.230 to make sure that such a critical piece 00:01:05.230 --> 00:01:09.340 of legislation is implemented efficiently 00:01:09.340 --> 00:01:12.693 and effectively as soon as possible, 00:01:14.003 --> 00:01:17.420 and with the full intent of the legislature. 00:01:17.420 --> 00:01:21.170 With that, we will move to our agenda. 00:01:21.170 --> 00:01:22.840 Mr. Journeay, can you walk us 00:01:22.840 --> 00:01:26.540 through our consent items on today's agenda? 00:01:26.540 --> 00:01:27.480 Good morning, Commissioners. 00:01:27.480 --> 00:01:29.150 By individual ballot, the following items 00:01:29.150 --> 00:01:32.023 were put on your consent agenda, items eight and nine. 00:01:33.970 --> 00:01:35.160 Is there a motion to approve 00:01:35.160 --> 00:01:37.590 the items just described by Mr. Journeay? 00:01:37.590 --> 00:01:39.900 So moved. Second. 00:01:39.900 --> 00:01:40.733 All in favor, say aye. 00:01:40.733 --> 00:01:42.340 Aye. 00:01:42.340 --> 00:01:43.173 Motion passes. 00:01:45.102 --> 00:01:48.480 At this time, we'll open for public comment. 00:01:48.480 --> 00:01:51.650 Oral comments related to a specific agenda item 00:01:51.650 --> 00:01:53.960 will be heard when that item is taken up. 00:01:53.960 --> 00:01:58.010 This public comment section is for general comments only. 00:01:58.010 --> 00:02:00.730 Speakers will be limited to three minutes. 00:02:00.730 --> 00:02:02.020 Mr. Journeay, do we have anyone 00:02:02.020 --> 00:02:04.063 from the public signed up to speak? 00:02:04.964 --> 00:02:06.960 Mr. Stan Brannon is here, 00:02:06.960 --> 00:02:09.060 would like to address the Commission, sir. 00:02:20.150 --> 00:02:23.470 Thank you, Commissioners for giving me time to speak. 00:02:23.470 --> 00:02:25.679 I'm Stan Brannon. 00:02:25.679 --> 00:02:30.220 I represent my wife, myself, and the nonprofit organization, 00:02:30.220 --> 00:02:32.630 Power Line Safety Initiative. 00:02:32.630 --> 00:02:34.440 I'm here today to speak to you 00:02:34.440 --> 00:02:38.980 about the upcoming compliance deadline of the HB 4150, 00:02:39.910 --> 00:02:43.770 the William Thomas Heath Power Line Safety Act. 00:02:43.770 --> 00:02:47.710 This act became law because of the death of our son 00:02:47.710 --> 00:02:52.710 and two other boy scouts in a power line accident in 2017. 00:02:53.100 --> 00:02:55.260 Since then, my wife and I have been involved 00:02:55.260 --> 00:02:57.993 in rulemaking processes of this act. 00:02:58.930 --> 00:03:03.930 We're personally committed to assuring ongoing public safety 00:03:04.240 --> 00:03:07.223 by tracking compliance and reporting under this act. 00:03:08.070 --> 00:03:11.090 At this time, we are concerned about the upcoming 00:03:11.090 --> 00:03:16.090 12-31-2021 deadline for compliance of power lines 00:03:17.020 --> 00:03:22.020 over the 178 lakes listed in this act. 00:03:22.050 --> 00:03:25.730 During a recent conversation with PUC executive director, 00:03:25.730 --> 00:03:30.730 we were informed that the PUC intends to create or require 00:03:30.800 --> 00:03:34.510 utilities with power lines over listed bodies of water 00:03:34.510 --> 00:03:38.180 to submit an affidavit of compliance to the PUC. 00:03:38.180 --> 00:03:40.380 In essence, this is a one-and-done report 00:03:40.380 --> 00:03:44.073 of compliance without benefit of public input. 00:03:44.990 --> 00:03:47.350 The main reason I'm here is to request 00:03:47.350 --> 00:03:49.950 that the compliance methodology 00:03:49.950 --> 00:03:52.330 be subject to formal rulemaking 00:03:52.330 --> 00:03:54.983 instead of being developed without public input. 00:03:56.120 --> 00:03:58.580 In our opinion, the intended 00:03:58.580 --> 00:04:01.290 course of action is less than adequate. 00:04:01.290 --> 00:04:04.190 We feel that compliance to this part of 4150 00:04:04.190 --> 00:04:07.090 should go through formal rulemaking. 00:04:07.090 --> 00:04:12.090 We feel that the utilities should have to prove compliance 00:04:13.020 --> 00:04:15.930 with more than just a signature of an employee, 00:04:15.930 --> 00:04:18.060 even if it is under oath. 00:04:18.060 --> 00:04:22.030 We suggest that an affidavit of compliance 00:04:22.876 --> 00:04:27.460 also be required to be signed by both the power utility 00:04:27.460 --> 00:04:29.993 and the controlling entity of that lake. 00:04:31.440 --> 00:04:34.570 This would better assure that all interested parties 00:04:35.850 --> 00:04:38.380 are taking responsibility and accountability 00:04:40.010 --> 00:04:41.520 for both safety of the lands 00:04:41.520 --> 00:04:44.053 and the safety of the people using those lakes. 00:04:45.320 --> 00:04:47.770 Furthermore, we feel the PUC should establish 00:04:47.770 --> 00:04:50.810 formal procedures for oversight, review, and inspection 00:04:50.810 --> 00:04:53.630 of power lines over these listed lakes. 00:04:53.630 --> 00:04:55.110 And finally, we would like to see 00:04:55.110 --> 00:04:59.163 some penalties spelled out for non-compliance. 00:05:00.330 --> 00:05:02.670 We've taken our time to compile 00:05:02.670 --> 00:05:06.083 some data of the listed lakes. 00:05:06.920 --> 00:05:11.920 And while we weren't able to mine deep enough at this time 00:05:12.320 --> 00:05:16.020 to find out which ones actually have power lines over them, 00:05:16.020 --> 00:05:17.403 I can say this. 00:05:18.370 --> 00:05:22.607 Of the 178 lakes listed, 121 or 68% 00:05:26.790 --> 00:05:31.790 also translates into about 56% of the acreage. 00:05:32.230 --> 00:05:33.260 You have one minute left, sir. 00:05:33.260 --> 00:05:35.240 Are controlled and or operated 00:05:35.240 --> 00:05:37.580 by small cities' river authorities 00:05:37.580 --> 00:05:40.840 and/or municipal water districts. 00:05:40.840 --> 00:05:44.210 We understand that the PUC has reached out to utilities 00:05:44.210 --> 00:05:48.160 to communicate this HB 4150 requirement. 00:05:48.160 --> 00:05:51.370 We also understand that the US Army Corps of Engineers 00:05:51.370 --> 00:05:53.530 and the Texas Parks and Wildlife Department 00:05:53.530 --> 00:05:56.090 are aware of the new regulations. 00:05:56.090 --> 00:05:59.180 However, we are concerned that many 00:05:59.180 --> 00:06:02.320 of the smaller entities may lack awareness 00:06:02.320 --> 00:06:05.530 and or understanding of these new requirements. 00:06:05.530 --> 00:06:06.743 Thank you for your time. 00:06:09.030 --> 00:06:09.863 Thank you, sir. 00:06:09.863 --> 00:06:11.200 I appreciate you being here. 00:06:12.040 --> 00:06:14.203 Look forward to continuing the conversation. 00:06:15.600 --> 00:06:17.680 Mr. Journeay, do we have anyone else- 00:06:17.680 --> 00:06:21.140 Not that I'm aware of. For public comment? 00:06:22.670 --> 00:06:24.693 Public comment is now closed. 00:06:26.160 --> 00:06:30.623 We will not be taking up items seven, 17, and 19, 00:06:31.810 --> 00:06:34.592 brings us to the first item on our agenda. 00:06:34.592 --> 00:06:36.842 Mr. Journeay, please lay out item number one. 00:06:39.230 --> 00:06:41.193 Item one is docket 51363. 00:06:41.193 --> 00:06:45.610 It's the joint application of TSTCI and TSA 00:06:45.610 --> 00:06:49.530 to improve their interstate access services tariff. 00:06:49.530 --> 00:06:52.080 A revised proposed order was filed on June 7th. 00:06:52.080 --> 00:06:54.420 Commissioner Cobos has filed a memo. 00:06:54.420 --> 00:06:55.253 Thank you, sir. 00:06:55.253 --> 00:06:59.555 I know staff has taken the time to be deliberate on this. 00:06:59.555 --> 00:07:01.843 I think it's gotten us to a good point. 00:07:01.843 --> 00:07:04.018 Cobos, any additional thoughts? 00:07:04.018 --> 00:07:05.560 Just to state that the memo 00:07:05.560 --> 00:07:07.670 contains proposed changes to the proposed order 00:07:07.670 --> 00:07:10.340 that more clearly state that the generic tariff 00:07:10.340 --> 00:07:13.330 is an interim solution and that we're granting 00:07:13.330 --> 00:07:15.320 a good cause exception to the Commission rules 00:07:15.320 --> 00:07:18.458 to allow for the approval of the tariff. 00:07:18.458 --> 00:07:20.470 So the first step in the process? 00:07:20.470 --> 00:07:23.420 Correct. Thank you. 00:07:23.420 --> 00:07:25.730 Now, I thought the same thing. 00:07:25.730 --> 00:07:30.450 I think the memo articulates the mechanics 00:07:30.450 --> 00:07:32.100 of accountability to where we move on 00:07:32.100 --> 00:07:37.100 to that next phase of these more specific approach 00:07:37.960 --> 00:07:41.453 for reviewing the tariffs, so I like it. 00:07:43.110 --> 00:07:43.960 Thank you, sir. 00:07:45.491 --> 00:07:46.324 In that case, is there a motion 00:07:46.324 --> 00:07:47.980 to approve the corrected proposed order 00:07:47.980 --> 00:07:51.230 with the recommended changes from Commissioner Cobos? 00:07:51.230 --> 00:07:52.440 So moved. Is there a second? 00:07:52.440 --> 00:07:54.000 Second. All in favor, say aye. 00:07:54.000 --> 00:07:55.320 Aye. 00:07:55.320 --> 00:07:56.233 Motion passes. 00:07:57.540 --> 00:07:58.783 Next item, please. 00:07:59.880 --> 00:08:01.080 Number three, I believe. 00:08:02.110 --> 00:08:03.260 We don't have anything. 00:08:03.260 --> 00:08:04.810 Oh, I'm sorry, sir, we do, three. 00:08:04.810 --> 00:08:07.740 Three, item three is docket 50812. 00:08:07.740 --> 00:08:09.950 It's application of Rayburn Country Electric Coop 00:08:09.950 --> 00:08:13.230 to amend their CCN for 138-kV 00:08:13.230 --> 00:08:15.800 transmission line in Collin County. 00:08:15.800 --> 00:08:18.360 A proposal for decision was issued, 00:08:18.360 --> 00:08:20.630 which recommended amending the CCN 00:08:21.470 --> 00:08:23.730 and approving Route West C, 00:08:23.730 --> 00:08:28.100 exceptions were filed, replies to those were filed. 00:08:28.100 --> 00:08:31.320 The ALJ has recently responded to those 00:08:31.320 --> 00:08:34.220 and made recommended changes to seven findings of fact, 00:08:34.220 --> 00:08:36.783 a conclusion of law, and an order in paragraph. 00:08:38.140 --> 00:08:41.080 The Commission heard oral argument on June 11th, 00:08:41.080 --> 00:08:43.780 and at the June 29th meeting remanded this matter 00:08:43.780 --> 00:08:46.910 to docket management for additional information. 00:08:46.910 --> 00:08:49.070 That information has been submitted. 00:08:49.070 --> 00:08:52.360 We've got a testimony from Rayburn 00:08:52.360 --> 00:08:57.360 and testimony from (indistinct) for interveners. 00:08:57.520 --> 00:08:59.140 The ALJ recently admitted 00:08:59.140 --> 00:09:01.560 the testimony with their attachments. 00:09:01.560 --> 00:09:05.473 Commissioner McAdams has filed a memo in this matter. 00:09:06.350 --> 00:09:07.530 Thank you. 00:09:07.530 --> 00:09:10.450 Needless to say, this has been a thorough process. 00:09:10.450 --> 00:09:12.393 I know you have some outstanding, 00:09:13.540 --> 00:09:16.500 or not outstanding, ongoing, continuing, 00:09:16.500 --> 00:09:19.960 and very legitimate issues. 00:09:19.960 --> 00:09:22.330 You wanna expound on your memo. 00:09:22.330 --> 00:09:24.350 Yeah, just at a high level, 00:09:24.350 --> 00:09:26.320 and then drill down a bit further, 00:09:26.320 --> 00:09:28.930 just to explain it in layman's terms 00:09:28.930 --> 00:09:31.070 on what I meant by the memo. 00:09:31.070 --> 00:09:33.020 Look, I think this was a great test case for us, 00:09:33.020 --> 00:09:35.750 given transmission-only cooperatives, 00:09:35.750 --> 00:09:39.070 the special components, and Commissioner Cobos, 00:09:39.070 --> 00:09:41.930 I'd love to hear any thoughts you have on it. 00:09:41.930 --> 00:09:46.930 Where I am trying to get to with the memo is more of a, 00:09:48.880 --> 00:09:50.670 I think we're gonna see more of these in the future, 00:09:50.670 --> 00:09:52.010 I think that's fair to say. 00:09:52.010 --> 00:09:54.630 And so if we can try to establish a template approach 00:09:54.630 --> 00:09:58.030 to where all these have a specific type of utility 00:09:58.030 --> 00:10:00.050 know what to expect when filing, 00:10:00.050 --> 00:10:01.830 it'll help us process those. 00:10:01.830 --> 00:10:03.120 We know what we're dealing with, 00:10:03.120 --> 00:10:05.010 especially in terms of the need evaluation. 00:10:05.010 --> 00:10:09.690 They do lay outside of that ERCOT planning model. 00:10:09.690 --> 00:10:13.180 And so I'm just trying to help square pegs, 00:10:13.180 --> 00:10:16.233 fit in round holes a little bit for our evaluation process. 00:10:17.281 --> 00:10:18.114 If you had any thoughts on that, 00:10:18.114 --> 00:10:20.793 and then I have a further drill down. 00:10:21.760 --> 00:10:24.440 Well, I agree with the direction of your memo. 00:10:24.440 --> 00:10:27.130 I think you've highlighted a very important policy issue, 00:10:27.130 --> 00:10:32.130 and that being, is we have future electric coop CCN cases. 00:10:34.510 --> 00:10:35.960 We need to be mindful of the fact 00:10:35.960 --> 00:10:40.960 that there is this crux of a policy issue 00:10:43.440 --> 00:10:46.900 between a transmission solution that's paid for 00:10:46.900 --> 00:10:49.250 and uplifted to all the ratepayers in ERCOT 00:10:49.250 --> 00:10:51.950 versus distribution solutions that are paid for 00:10:51.950 --> 00:10:55.643 by the specific customers of the distribution cooperative. 00:10:58.060 --> 00:11:00.080 And I think you've highlighted 00:11:00.080 --> 00:11:03.870 some of the costs and benefits associated with, 00:11:03.870 --> 00:11:06.530 or mainly benefits that are associated with pursuing 00:11:06.530 --> 00:11:10.120 a transmission solution versus a distribution solution. 00:11:10.120 --> 00:11:12.380 And we gotta be very mindful of that 00:11:12.380 --> 00:11:17.380 as we are expected to be mindful of ERCOT 00:11:18.730 --> 00:11:22.440 ratepayer costs that are specifically laid out 00:11:22.440 --> 00:11:25.350 in every customer's electricity bill as a line item. 00:11:25.350 --> 00:11:28.090 So I appreciate you highlighting 00:11:28.090 --> 00:11:30.450 a very important policy issue. 00:11:30.450 --> 00:11:33.700 And I think with respect to the direction 00:11:34.870 --> 00:11:37.620 or signal that you're sending to the parties 00:11:37.620 --> 00:11:39.160 about the additional information 00:11:39.160 --> 00:11:41.116 that you would like to see provided in the future, 00:11:41.116 --> 00:11:43.820 I commend you for your exhaustive list. 00:11:43.820 --> 00:11:45.270 I think that's very important 00:11:46.180 --> 00:11:48.890 that we have that information in the record, 00:11:48.890 --> 00:11:51.480 because we need to, one, determine if the line 00:11:51.480 --> 00:11:53.900 is needed and we need to have support for it. 00:11:53.900 --> 00:11:57.190 And that includes a load study. 00:11:57.190 --> 00:12:01.530 And also with our own evaluation of other alternatives 00:12:01.530 --> 00:12:05.040 that could potentially be less costly. 00:12:05.040 --> 00:12:09.270 So I agree with the direction of your memo. 00:12:09.270 --> 00:12:11.730 And I think, and this sort of relates to, 00:12:11.730 --> 00:12:15.710 it crosses over into other projects as well or cases, 00:12:15.710 --> 00:12:18.390 but the more information we have on the front end 00:12:18.390 --> 00:12:22.563 that allows us to expeditiously process these cases. 00:12:24.210 --> 00:12:26.840 Thomas has a great schedule now of implementation. 00:12:26.840 --> 00:12:30.690 We need to efficiently do this, 00:12:30.690 --> 00:12:32.750 and we need more information on the front end 00:12:32.750 --> 00:12:33.583 to be able to do that. 00:12:33.583 --> 00:12:35.230 'Cause remanding this back to docket management 00:12:35.230 --> 00:12:37.460 over and over on a case-by-case basis is just gonna bog 00:12:37.460 --> 00:12:39.020 the Commission and the Commission staff down. 00:12:39.020 --> 00:12:42.470 So I think the more we think about this 00:12:42.470 --> 00:12:45.700 as the three of us and get these processes in place 00:12:45.700 --> 00:12:49.000 is gonna pay off dividends in the future, very near future. 00:12:49.000 --> 00:12:50.610 I know it's encompassed in your memo, 00:12:50.610 --> 00:12:52.610 but I also wanna highlight the fact 00:12:52.610 --> 00:12:56.773 that local distribution costs should be local. 00:12:57.670 --> 00:12:58.960 Beneficiaries of that distribution 00:12:58.960 --> 00:13:01.650 is very different than a broader transmission asset. 00:13:01.650 --> 00:13:04.010 That benefits the reliability- That decision. 00:13:04.010 --> 00:13:07.170 Yeah, there's a reliability component in there as well, 00:13:07.170 --> 00:13:09.999 which I know you incorporated, but I wanted to highlight 00:13:09.999 --> 00:13:11.780 in our discussion. So if you're agreeable 00:13:11.780 --> 00:13:14.950 to the precepts of the memo, 00:13:14.950 --> 00:13:16.780 then I'd like to drill down a little further, 00:13:16.780 --> 00:13:21.210 just for further clarity for stakeholders and the industry. 00:13:21.210 --> 00:13:25.110 I believe it's important in radial transmission projects. 00:13:25.110 --> 00:13:27.850 Again, radial, where ERCOT has not performed 00:13:27.850 --> 00:13:30.420 a need analysis for us to make sure that the record 00:13:30.420 --> 00:13:33.040 is detailed and complete as we alluded to. 00:13:33.040 --> 00:13:34.840 Applicants in these cases have the burden 00:13:34.840 --> 00:13:37.770 to not only prove that there is need for the project, 00:13:37.770 --> 00:13:39.670 but also that a distribution solution 00:13:39.670 --> 00:13:42.810 is not the wiser course as we've kind of articulated. 00:13:42.810 --> 00:13:45.130 The cost of these radial transmission projects 00:13:45.130 --> 00:13:48.130 are socialized to all ERCOT ratepayers. 00:13:48.130 --> 00:13:49.700 I believe that the Commission should make certain 00:13:49.700 --> 00:13:51.510 that these cooperatives aren't unnecessarily 00:13:51.510 --> 00:13:54.570 passing along costs that should be born by their members. 00:13:54.570 --> 00:13:56.710 Again, this is just a highlight in overall policy 00:13:56.710 --> 00:13:58.410 that we're considering here. 00:13:58.410 --> 00:14:01.010 If you all agree, I believe you do with the memo, 00:14:01.010 --> 00:14:04.000 I propose that we direct Commission staff to send out 00:14:04.000 --> 00:14:07.233 to the trade groups, Texas Electric Cooperatives, 00:14:09.730 --> 00:14:11.480 to send this out to the trade groups 00:14:11.480 --> 00:14:13.000 so that they may ensure that their members 00:14:13.000 --> 00:14:15.160 are clearly and properly informed that we will be looking 00:14:15.160 --> 00:14:19.820 for detailed evidence of need in projects like these, 00:14:19.820 --> 00:14:22.000 just as a mechanical function. 00:14:22.000 --> 00:14:23.683 That makes sense to me. Okay. 00:14:24.680 --> 00:14:27.320 So. Oh, one further thing, sir. 00:14:27.320 --> 00:14:32.240 I'm assuming that all the Commission goes along with this, 00:14:32.240 --> 00:14:33.360 which sounds like they are. 00:14:33.360 --> 00:14:35.540 I'm gonna take this as direction from you 00:14:35.540 --> 00:14:38.770 to modify our standard preliminary orders 00:14:38.770 --> 00:14:42.610 and transmission CCN cases 00:14:42.610 --> 00:14:46.500 to incorporate and capture some of these concepts 00:14:46.500 --> 00:14:49.110 so that they're teed up at the front end of the case. 00:14:49.110 --> 00:14:50.853 Reading body language, I believe so, yes. 00:14:50.853 --> 00:14:52.283 That works for me. Yes. 00:14:53.160 --> 00:14:54.180 That would be very helpful. 00:14:54.180 --> 00:14:55.013 Are you- 00:14:56.590 --> 00:15:00.080 So with that, I'm not gonna change 00:15:00.080 --> 00:15:02.270 the basic tenets of the motion. 00:15:02.270 --> 00:15:05.230 I would move to approve the PFD. 00:15:05.230 --> 00:15:07.880 Okay, that was my question. Yeah, that is the question. 00:15:07.880 --> 00:15:10.360 Is there a second? Second. 00:15:10.360 --> 00:15:11.400 All in favor, say aye. 00:15:11.400 --> 00:15:12.283 Aye. 00:15:13.440 --> 00:15:14.500 Motion passes. 00:15:14.500 --> 00:15:15.720 And thank you for digging into that. 00:15:15.720 --> 00:15:17.500 Thanks, sir. Good work. 00:15:17.500 --> 00:15:20.083 Next item, please, Mr. Journeay. 00:15:25.330 --> 00:15:27.980 We will to reflect 00:15:32.020 --> 00:15:34.460 the process in this case after the PFD came out, 00:15:34.460 --> 00:15:36.450 we do need to modify the PFD 00:15:36.450 --> 00:15:39.180 to reflect those additional items, 00:15:39.180 --> 00:15:40.150 just so that you're aware 00:15:40.150 --> 00:15:41.880 when the order comes back for y'all. 00:15:41.880 --> 00:15:43.635 Okay, so I don't need to move to withdraw 00:15:43.635 --> 00:15:46.710 the motion or anything like that, right? 00:15:46.710 --> 00:15:48.800 I think it was implicit in your motion 00:15:48.800 --> 00:15:49.990 that we would incorporate that. 00:15:49.990 --> 00:15:52.890 I would like that, but just to make sure. 00:15:52.890 --> 00:15:54.619 It's necessary to document it. 00:15:54.619 --> 00:15:58.370 It's mainly some procedural history type items stuff. 00:15:58.370 --> 00:16:00.220 Will you please formally note that 00:16:00.220 --> 00:16:02.130 for the record so it is properly documented? 00:16:02.130 --> 00:16:05.007 Uh-uh. Got that? 00:16:05.007 --> 00:16:07.790 (audience laughing) 00:16:07.790 --> 00:16:11.490 Item four, sir, is docket 50830, is the application 00:16:11.490 --> 00:16:13.230 of Guadalupe Valley Electric Cooperative 00:16:13.230 --> 00:16:17.710 to amend their CCN for 138-kV transmission line 00:16:17.710 --> 00:16:20.230 in Caldwell and Gonzalez County. 00:16:20.230 --> 00:16:22.890 A proposal for decision was issued. 00:16:22.890 --> 00:16:24.883 No parties filed exceptions. 00:16:25.980 --> 00:16:30.670 The PFD recommended amending the CCN and using route one. 00:16:30.670 --> 00:16:34.515 The Commission has granted oral argument in this case. 00:16:34.515 --> 00:16:36.110 Thank you, sir. 00:16:36.110 --> 00:16:37.630 We should, if it works with you all, 00:16:37.630 --> 00:16:39.150 we'll start with the oral argument and move from there. 00:16:39.150 --> 00:16:40.483 Yes, sir. Yes. 00:16:43.680 --> 00:16:46.840 We unfortunately weren't on top of our game this morning 00:16:46.840 --> 00:16:48.490 and I don't have a list of who's coming. 00:16:48.490 --> 00:16:50.870 I know I saw some parties in here this morning, 00:16:50.870 --> 00:16:51.703 so I know there's people here, 00:16:51.703 --> 00:16:53.563 I think they want to talk, but- 00:16:54.420 --> 00:16:57.480 All right, parties who've been granted oral argument, 00:16:57.480 --> 00:17:01.363 please come to the witness table. 00:17:10.290 --> 00:17:14.043 Do we have time limit on these oral arguments, Mr. Journeay? 00:17:14.890 --> 00:17:16.140 At your direction, sir. 00:17:17.950 --> 00:17:19.080 Four minutes? 00:17:19.080 --> 00:17:22.160 Good for me. Four minutes. 00:17:22.160 --> 00:17:24.110 Oral arguments be limited four minutes. 00:17:29.750 --> 00:17:31.650 We could started with that in. 00:17:31.650 --> 00:17:33.860 Does that work for everybody involved? 00:17:33.860 --> 00:17:34.810 Fine with me. 00:17:36.324 --> 00:17:37.157 Good morning, Commissioners. 00:17:37.157 --> 00:17:38.490 My name is Carly Barton. 00:17:38.490 --> 00:17:40.753 I represent Denise and Greg Knievel. 00:17:41.633 --> 00:17:44.650 The Knievels were not able to come here today. 00:17:44.650 --> 00:17:46.500 Thought they would be able to do this telephonically. 00:17:46.500 --> 00:17:47.333 So I'm just going to read 00:17:47.333 --> 00:17:51.980 a quick statement by her for you today. 00:17:51.980 --> 00:17:53.830 It says, "I am Denise Knievel. 00:17:53.830 --> 00:17:57.120 I served in the United States Air Force for over 23 years. 00:17:57.120 --> 00:18:00.150 My service did not end in 2004 when I retired. 00:18:00.150 --> 00:18:03.390 I've been an officer for a NPO for many years, 00:18:03.390 --> 00:18:06.990 and my husband and I both served on our old HOA board. 00:18:06.990 --> 00:18:09.920 I volunteer at the Center for Intrepid 00:18:09.920 --> 00:18:12.760 on Brooke Army Medical Center. 00:18:12.760 --> 00:18:15.890 I currently work for an NPO that serves disabled veterans 00:18:15.890 --> 00:18:17.480 and a liaison with other veterans 00:18:17.480 --> 00:18:20.020 supporting NPOs around the United States. 00:18:20.020 --> 00:18:22.070 I don't sit back and let life happen 00:18:22.070 --> 00:18:26.270 despite the fact that I'm 100% disabled veteran with PTSD. 00:18:26.270 --> 00:18:27.710 It angers me that I feel the need 00:18:27.710 --> 00:18:30.750 to share that in order to somehow be heard. 00:18:30.750 --> 00:18:34.210 In 2017, I decided that we finally needed 00:18:34.210 --> 00:18:36.400 to make a move away from San Antonio. 00:18:36.400 --> 00:18:39.540 I couldn't take the noise and it was becoming too crowded. 00:18:39.540 --> 00:18:42.710 We carefully selected the property on Chalk Road. 00:18:42.710 --> 00:18:46.760 I want and need a place for peace and quiet. 00:18:46.760 --> 00:18:48.170 I need to relax. 00:18:48.170 --> 00:18:49.950 And I think I've earned that. 00:18:49.950 --> 00:18:51.580 And though the Scenic 304 Alliance 00:18:51.580 --> 00:18:53.150 does not deserve my understanding, 00:18:53.150 --> 00:18:56.230 I do understand they and all the other interveners 00:18:56.230 --> 00:18:59.580 do not want this project to affect their lives and property. 00:18:59.580 --> 00:19:03.070 And if I were wealthy enough to live along route 304 00:19:03.070 --> 00:19:05.120 and be able to afford the lawyers, 00:19:05.120 --> 00:19:06.860 I'd probably be right there with them 00:19:06.860 --> 00:19:08.480 pointing to another route. 00:19:08.480 --> 00:19:10.340 But the bottom line is route 12, 00:19:10.340 --> 00:19:14.270 the one we advocated for is shorter and less expensive, 00:19:14.270 --> 00:19:16.760 and we believe should have been chosen. 00:19:16.760 --> 00:19:19.370 We remain worried about the decreased property values, 00:19:19.370 --> 00:19:21.680 having new ingress and egress to our property 00:19:21.680 --> 00:19:23.870 other than under the proposed power lines, 00:19:23.870 --> 00:19:27.490 the possible dangers of EMF with my noise sensitivity 00:19:27.490 --> 00:19:29.350 to the buzzing in this case, 00:19:29.350 --> 00:19:31.600 and my increased stress over the situation. 00:19:31.600 --> 00:19:34.360 My husband and I made a conscious decision to stay 00:19:34.360 --> 00:19:38.150 in Texas because we both have come to love it here. 00:19:38.150 --> 00:19:41.540 He is originally from Ohio, and I am from upstate New York. 00:19:41.540 --> 00:19:43.720 I'm very aware of how the business of feeding, 00:19:43.720 --> 00:19:45.910 watering, and electrifying New York City 00:19:45.910 --> 00:19:48.150 affects the entire rest of the state. 00:19:48.150 --> 00:19:50.970 I love New York, but I do not like its politics, 00:19:50.970 --> 00:19:53.240 and the way everyone bows to New York City. 00:19:53.240 --> 00:19:54.820 I can't live like that. 00:19:54.820 --> 00:19:58.350 So we chose Texas because we like 00:19:58.350 --> 00:20:00.390 the Lone Star State mentality. 00:20:00.390 --> 00:20:01.330 Don't get me wrong. 00:20:01.330 --> 00:20:02.640 I understand the rest of the state 00:20:02.640 --> 00:20:04.740 needs resources found in the country 00:20:04.740 --> 00:20:07.080 where less people, money, and power live. 00:20:07.080 --> 00:20:08.725 It allows companies to prey on folks 00:20:08.725 --> 00:20:13.660 who can't afford high price, effective lawyers. 00:20:13.660 --> 00:20:15.560 We are among the folks who can't easily afford 00:20:15.560 --> 00:20:17.890 to fight these types of invasions and injustices. 00:20:17.890 --> 00:20:20.020 So I fear the practice of going to the counties 00:20:20.020 --> 00:20:22.730 who need the money and are least likely to fight back 00:20:22.730 --> 00:20:25.410 will only continue and get worse across the state. 00:20:25.410 --> 00:20:27.650 Welcome to New York South. 00:20:27.650 --> 00:20:29.083 Thank you, Commissioners. 00:20:29.083 --> 00:20:30.750 Thank you. 00:20:35.430 --> 00:20:36.560 Good morning, Chairman Lake, 00:20:36.560 --> 00:20:38.790 Commissioner McAdams, and Commissioner Cobos. 00:20:38.790 --> 00:20:40.730 My name is Jacob Lawlor. 00:20:40.730 --> 00:20:43.410 And I'm here today with Adrian Rodel, 00:20:43.410 --> 00:20:45.770 and along with Mark Davis, we represent the applicant, 00:20:45.770 --> 00:20:48.350 Guadalupe Valley Electric Cooperative. 00:20:48.350 --> 00:20:50.800 Also here today is Renee Hernandez, 00:20:50.800 --> 00:20:53.180 who is the cooperative system engineer 00:20:53.180 --> 00:20:55.593 and project lead for this transmission project. 00:20:56.460 --> 00:20:58.750 My comments today will be brief. 00:20:58.750 --> 00:21:00.010 In short, we want to highlight 00:21:00.010 --> 00:21:02.863 the importance and urgency of this project 00:21:02.863 --> 00:21:06.560 as it relates to Texas's water resources. 00:21:06.560 --> 00:21:08.450 As you know, this transmission line will serve 00:21:08.450 --> 00:21:11.853 a water treatment plant and about a dozen water wells, 00:21:12.900 --> 00:21:15.570 all of which will provide a critical water supply 00:21:15.570 --> 00:21:17.450 to the rapidly growing municipalities 00:21:17.450 --> 00:21:21.838 along the I-35 corridor between here in San Antonio. 00:21:21.838 --> 00:21:24.810 Due to the construction and supply schedule 00:21:24.810 --> 00:21:26.870 of those water facilities, 00:21:26.870 --> 00:21:30.480 this transmission line is expected to be energized 00:21:30.480 --> 00:21:33.620 on or before August of next year, 00:21:33.620 --> 00:21:35.883 so a little more than one year from now. 00:21:36.850 --> 00:21:38.680 The evidence in this case includes 00:21:38.680 --> 00:21:41.920 a thorough analysis that no alternatives, 00:21:41.920 --> 00:21:43.950 including distribution alternatives 00:21:45.100 --> 00:21:48.260 would adequately and effectively meet this need. 00:21:48.260 --> 00:21:50.893 This transmission project is the most effective, 00:21:52.620 --> 00:21:55.123 economic, and reliable solution. 00:21:58.020 --> 00:21:59.930 Not only is this transmission project 00:21:59.930 --> 00:22:01.923 needed to serve the water facilities, 00:22:03.240 --> 00:22:05.220 but neighboring customers and utilities 00:22:05.220 --> 00:22:08.840 will also benefit from the increased service quality 00:22:08.840 --> 00:22:12.223 in deferred system improvements on their own systems. 00:22:13.290 --> 00:22:14.903 This is a win-win project. 00:22:15.790 --> 00:22:19.200 Regarding routing, as we stated in our briefing 00:22:19.200 --> 00:22:22.150 and in our letter concerning the proposal for decision, 00:22:22.150 --> 00:22:23.500 all of the proposed routes 00:22:23.500 --> 00:22:25.880 will meet the need for this project. 00:22:25.880 --> 00:22:28.240 Although we recommended route 12 as the route 00:22:28.240 --> 00:22:32.220 that best addresses PURA and the Commission's rules, 00:22:32.220 --> 00:22:36.130 we agree that route one as recommended by the PFD 00:22:36.130 --> 00:22:37.903 is also a reasonable choice. 00:22:39.160 --> 00:22:42.390 Except in those fortunate few cases where you all 00:22:42.390 --> 00:22:44.113 are presented with a settlement, 00:22:45.970 --> 00:22:50.850 there are usually no easy routing choices in the CCN cases. 00:22:50.850 --> 00:22:52.800 We greatly appreciate your deliberation 00:22:52.800 --> 00:22:55.040 and timely action that will allow us 00:22:55.040 --> 00:22:58.760 to support Central Texas's water resources. 00:22:58.760 --> 00:22:59.720 Thank you for your attention 00:22:59.720 --> 00:23:02.180 and I'll reserve any remaining time for rebuttal. 00:23:02.180 --> 00:23:05.150 And we're also happy to answer any questions that you have. 00:23:05.150 --> 00:23:05.983 Thank you. 00:23:07.580 --> 00:23:08.413 Thank you. 00:23:08.413 --> 00:23:09.800 Good morning, Chairman Lake, 00:23:09.800 --> 00:23:11.860 Commissioners Kobos and McAdams. 00:23:11.860 --> 00:23:13.597 My name is Solidad Valenciano, 00:23:13.597 --> 00:23:14.460 and I'm one of the attorneys 00:23:14.460 --> 00:23:17.390 representing the Scenic 304 Alliance, 00:23:17.390 --> 00:23:21.000 a group of almost 20 neighbors who are impacted by 00:23:21.000 --> 00:23:25.323 and oppose any route that parallels state highway 304. 00:23:26.161 --> 00:23:29.510 Of the three focus route, one, 12, and 16, 00:23:29.510 --> 00:23:32.860 route 12 parallels state highway 304. 00:23:32.860 --> 00:23:34.630 We oppose route 12. 00:23:34.630 --> 00:23:37.030 We support the proposal for decision and respectfully 00:23:37.030 --> 00:23:40.210 ask that the Commission please adopt the PFD. 00:23:40.210 --> 00:23:42.770 The PFD recommends route one. 00:23:42.770 --> 00:23:45.100 One of the most notable facts in this case 00:23:45.100 --> 00:23:46.880 is that there were no exceptions 00:23:46.880 --> 00:23:50.110 to the May 21st PFD on July 12th. 00:23:50.110 --> 00:23:51.840 Judges Behara and Brite acknowledged 00:23:51.840 --> 00:23:53.450 that there had been no exceptions 00:23:53.450 --> 00:23:55.250 and filed a recommendation to the Commission, 00:23:55.250 --> 00:23:58.050 asking the PFD be adopted as written. 00:23:58.050 --> 00:24:00.310 We agree with Judges Behara and Brite. 00:24:00.310 --> 00:24:02.100 We believe they got it right. 00:24:02.100 --> 00:24:03.730 Judges Behara and Brite analyzed 00:24:03.730 --> 00:24:05.370 all of the applicable routing factors 00:24:05.370 --> 00:24:06.460 and determined that quote, 00:24:06.460 --> 00:24:09.000 route one best reflects and balances 00:24:09.000 --> 00:24:13.141 the factors set forth in PURA section 37.056c 00:24:13.141 --> 00:24:16.300 and 16 TAC section 25.101. 00:24:16.300 --> 00:24:19.360 Pages 31 through 34 of the PFD 00:24:19.360 --> 00:24:23.000 summarize their analysis and their recommendation. 00:24:23.000 --> 00:24:25.540 Judge Behara and Brite concluded that the focus routes, 00:24:25.540 --> 00:24:29.570 one, 12, and 16 different primarily in terms of costs, 00:24:29.570 --> 00:24:32.200 community values, and aesthetic values. 00:24:32.200 --> 00:24:33.650 Judges Behara and Brite acknowledged 00:24:33.650 --> 00:24:38.070 that while route 12 is less costly than routes one and 16, 00:24:38.070 --> 00:24:40.180 this is simply a function of length. 00:24:40.180 --> 00:24:42.310 The judges conclude that cost should, quote, 00:24:42.310 --> 00:24:44.270 not be given undue weight here, 00:24:44.270 --> 00:24:48.010 because all of the three focus routes are below the average 00:24:48.010 --> 00:24:51.140 and within the lower range of the dataset. 00:24:51.140 --> 00:24:55.540 GVEC and the PUC staff have not accepted to the PFD, 00:24:55.540 --> 00:24:57.540 and certainly not on the basis of choosing 00:24:57.540 --> 00:24:59.900 the shortest and the cheapest route. 00:24:59.900 --> 00:25:04.080 And GVEC's costs are only estimates at this point. 00:25:04.080 --> 00:25:05.910 Judges Behara and Brite concluded, quote, 00:25:05.910 --> 00:25:07.500 that the substantial record evidence 00:25:07.500 --> 00:25:11.670 provides a basis to weight community values more heavily. 00:25:11.670 --> 00:25:13.230 The evidence shows that the community values 00:25:13.230 --> 00:25:15.780 in these proceedings are the following three. 00:25:15.780 --> 00:25:18.890 One, maximizing the distance from the residences, 00:25:18.890 --> 00:25:22.020 maximizing parallel lane existing right away, 00:25:22.020 --> 00:25:24.410 and minimizing the visibility of the line. 00:25:24.410 --> 00:25:26.260 Taking each of these three in turn 00:25:26.260 --> 00:25:28.970 in terms of maximizing the distance from residences, 00:25:28.970 --> 00:25:31.950 the judges noted that the habitable structure count 00:25:31.950 --> 00:25:36.150 tabulated for route 12 included a habitable structure 00:25:36.150 --> 00:25:38.900 on every single segment of route 12, 00:25:38.900 --> 00:25:42.230 with the exception of their very short segment AU. 00:25:42.230 --> 00:25:43.810 They noted that route 12 was tied 00:25:43.810 --> 00:25:46.890 for the third highest capital structure count. 00:25:46.890 --> 00:25:50.530 The only habitable structures tabulated on route one 00:25:50.530 --> 00:25:54.060 are the same that are shared in common with route 12. 00:25:54.060 --> 00:25:56.200 And route one has the second lowest 00:25:56.200 --> 00:25:58.140 habitable structure count. 00:25:58.140 --> 00:26:00.010 Secondly, while Judges Behara and Brite 00:26:00.010 --> 00:26:03.130 concluded that parallel lane existing right away 00:26:03.130 --> 00:26:05.540 is neutral among these routes, 00:26:05.540 --> 00:26:09.650 it's worth noting that route one has the highest percentage 00:26:09.650 --> 00:26:11.800 of parallel lane existing electric 00:26:11.800 --> 00:26:13.160 right away. You have one minute. 00:26:13.160 --> 00:26:15.410 There is no existing electric right away 00:26:15.410 --> 00:26:19.390 on any of the Scenic 304 Alliance properties. 00:26:19.390 --> 00:26:23.460 This is not the case for the opponents of route one. 00:26:23.460 --> 00:26:25.830 In fact, the Nabels have a property 00:26:25.830 --> 00:26:28.993 that's already encumbered by existing distribution lines. 00:26:29.890 --> 00:26:32.420 Number three, GVEC's data shows that route 12 00:26:32.420 --> 00:26:37.410 is by far more visible than routes one and 16. 00:26:37.410 --> 00:26:39.760 Based on the substantial record evidence, 00:26:39.760 --> 00:26:42.380 Judges Behara and Brite concluded that route one is, 00:26:42.380 --> 00:26:46.100 quote, superior to the other route alternatives. 00:26:46.100 --> 00:26:47.550 We agree. 00:26:47.550 --> 00:26:50.210 Commissioners, on behalf of all of my clients, 00:26:50.210 --> 00:26:53.483 three of them who are here to also provide public comment, 00:26:54.370 --> 00:26:59.370 who live and regularly travel along scenic highway 304, 00:27:00.200 --> 00:27:02.760 a beautiful Texas road, I respectfully request 00:27:02.760 --> 00:27:06.190 that the Commission adopt the PFD in order of route one. 00:27:06.190 --> 00:27:07.653 Thank you. Thank you. 00:27:10.126 --> 00:27:11.360 Good morning, Commissioners. 00:27:11.360 --> 00:27:13.440 Brad Baylor represents parties in this proceeding, 00:27:13.440 --> 00:27:18.130 and asked that I might pass along that he received 00:27:18.130 --> 00:27:20.990 the approval of oral argument request yesterday, 00:27:20.990 --> 00:27:23.630 and asked to participate telephonically 00:27:23.630 --> 00:27:25.530 to represent or provide argument 00:27:25.530 --> 00:27:28.180 for his clients that they support the PFD. 00:27:28.180 --> 00:27:32.980 So I wanted to note Mr. Baylor's client's position 00:27:32.980 --> 00:27:34.430 for the record. Thank you. 00:27:36.343 --> 00:27:37.330 Good morning, Commissioners. 00:27:37.330 --> 00:27:40.620 My name is Rustin Tailwater with Commission staff. 00:27:40.620 --> 00:27:42.130 Staff has no oral argument today, 00:27:42.130 --> 00:27:44.590 but is happy to answer any questions you may have. 00:27:44.590 --> 00:27:45.423 Appreciate it. 00:27:47.703 --> 00:27:49.873 That will conclude oral arguments. 00:27:52.981 --> 00:27:54.750 We have our landowners. 00:27:54.750 --> 00:27:55.780 We're prepared to give a statement- 00:27:55.780 --> 00:27:56.613 Oh, please come up 00:27:56.613 --> 00:27:57.710 if you'd like to address the Commission. 00:27:57.710 --> 00:28:00.583 I'm sorry, I thought you were speaking for them. 00:28:09.900 --> 00:28:11.200 Good morning, Chairman Lake, 00:28:11.200 --> 00:28:13.960 Commissioners Cobos and McAdams. 00:28:13.960 --> 00:28:15.550 My name is Jim Benedict, 00:28:15.550 --> 00:28:19.020 and I'm here today with my wife, Jenice Benedict. 00:28:19.020 --> 00:28:20.490 Jenice and I are interveners 00:28:20.490 --> 00:28:23.080 and members of the Scenic 304 Alliance, 00:28:23.080 --> 00:28:28.080 a group of almost 20 neighbors who would be impacted 00:28:28.100 --> 00:28:32.173 and oppose any route that parallel state highway 304. 00:28:33.090 --> 00:28:35.530 I'm here today on behalf of myself 00:28:35.530 --> 00:28:38.660 and all of the members of the Scenic 304 Alliance 00:28:38.660 --> 00:28:42.440 and everyone who lives along state highway 304 00:28:42.440 --> 00:28:45.180 to support the proposal for decision 00:28:45.180 --> 00:28:48.650 and to respectively ask that you please 00:28:48.650 --> 00:28:51.550 adopt the proposal for decision. 00:28:51.550 --> 00:28:55.020 The proposal for decision recommends route one. 00:28:55.020 --> 00:28:58.913 And there are no exceptions to the proposal for decision. 00:29:00.371 --> 00:29:01.960 Jenice and I are among many property owners 00:29:01.960 --> 00:29:05.070 who live along the state highway 304. 00:29:05.070 --> 00:29:07.130 Together, the Scenic 304 Alliance 00:29:07.130 --> 00:29:09.540 submitted pages of testimony describing 00:29:09.540 --> 00:29:12.160 the impact that GVEC's proposed project 00:29:12.160 --> 00:29:16.330 would have on our home sites, on our tree cover, 00:29:16.330 --> 00:29:19.920 our water features, our improved entrances, 00:29:19.920 --> 00:29:23.160 and on our views of our property. 00:29:23.160 --> 00:29:26.810 We explained that highway 304 is the street we live on. 00:29:26.810 --> 00:29:31.253 Many of us sided our homes to look out towards highway 304. 00:29:32.430 --> 00:29:35.470 We sat almost daily on our porch 00:29:35.470 --> 00:29:37.450 and look out to the front of our property, 00:29:37.450 --> 00:29:41.493 which faces 304 and to this beautiful area. 00:29:42.680 --> 00:29:45.450 When my wife and I first learned about GVEC's plan 00:29:45.450 --> 00:29:48.597 to possibly build our project along state highway 304, 00:29:49.460 --> 00:29:52.490 we were pretty much heartbroken and devastated. 00:29:52.490 --> 00:29:54.170 We quickly learned that our neighbors 00:29:54.170 --> 00:29:56.340 shared the same sentiment. 00:29:56.340 --> 00:29:58.160 Being a part of these proceedings 00:29:58.160 --> 00:30:01.500 has been emotional, expensive, and stressful. 00:30:01.500 --> 00:30:03.860 We love our homes and we love the lives 00:30:03.860 --> 00:30:06.023 we have built along this beautiful highway. 00:30:07.000 --> 00:30:08.983 So you can imagine how relieved we were 00:30:08.983 --> 00:30:12.323 when the administrative law judges recommended route one, 00:30:13.210 --> 00:30:15.960 and we were even happier and relieved 00:30:15.960 --> 00:30:18.293 when no one filed exceptions. 00:30:19.410 --> 00:30:21.440 Their proposal for decision considered 00:30:21.440 --> 00:30:25.120 all of the routing factors, and zeroed in on the fact 00:30:25.120 --> 00:30:27.420 that while most of the routing factors 00:30:27.420 --> 00:30:29.730 for the three focus routes, 00:30:29.730 --> 00:30:34.730 routes one, 16, and 12 are very, very similar, 00:30:35.410 --> 00:30:39.853 that being community values and aesthetics rose to the top. 00:30:40.910 --> 00:30:43.970 The top community values were maximizing 00:30:43.970 --> 00:30:46.260 the distance of the line from homes 00:30:46.260 --> 00:30:49.033 and minimizing the visibility of the line. 00:30:50.120 --> 00:30:52.830 Therefore, this makes route 12, 00:30:52.830 --> 00:30:55.790 which has many homes that would see the line 00:30:55.790 --> 00:30:58.063 a very poor and sad choice. 00:30:58.930 --> 00:31:02.230 This makes route 12, which runs along the highly visible 00:31:02.230 --> 00:31:07.050 and tranquil state highway 304 a very poor choice. 00:31:07.050 --> 00:31:09.670 And this makes route 12, which will destroy 00:31:09.670 --> 00:31:12.330 the otherwise beautiful views for all travelers 00:31:12.330 --> 00:31:13.510 and residents- You have one minute. 00:31:13.510 --> 00:31:17.463 Along state highway 304 a very poor choice. 00:31:18.630 --> 00:31:22.060 In contrast, route one has very few homes 00:31:22.060 --> 00:31:26.570 and is located along a much less traveled county road. 00:31:26.570 --> 00:31:29.740 Mark and Amy Pearson, members of the Scenic 304 Alliance 00:31:29.740 --> 00:31:32.490 own property impacted by route one, 00:31:32.490 --> 00:31:34.240 and have agreed to accept the line 00:31:34.240 --> 00:31:37.057 on their property to save state highway 304. 00:31:38.970 --> 00:31:41.160 I have served as the original patriarch 00:31:41.160 --> 00:31:43.390 of this group for many months now. 00:31:43.390 --> 00:31:45.430 And I would be lying if I said 00:31:47.530 --> 00:31:50.100 I haven't lost a lot of sleep over this matter. 00:31:50.100 --> 00:31:52.120 We worried many nights that we would fail 00:31:52.120 --> 00:31:55.780 to convey just how important it is to preserve 00:31:55.780 --> 00:31:59.410 the community's views along state highway 304, 00:31:59.410 --> 00:32:01.750 and how important it is to us to protect 00:32:01.750 --> 00:32:06.143 our homes and land from the impacts of this project. 00:32:07.440 --> 00:32:11.143 So on behalf of my wife, Jenice Benedict, 00:32:12.030 --> 00:32:16.120 Marion and Marla Henegar, PML holdings, 00:32:16.120 --> 00:32:20.630 Perry and Marika Little, Jared and Colleen Brumme, 00:32:20.630 --> 00:32:24.503 Mark and Amy Pearson, The Flor Maria Loya Trust, 00:32:25.759 --> 00:32:29.310 Flor Maria Loya, Patti Hickman, 00:32:29.310 --> 00:32:33.600 Edward and Monica Martinez, Brandon Rothrock, 00:32:33.600 --> 00:32:37.390 Brittany Michele Partin, Mr. Fred Loya, 00:32:37.390 --> 00:32:40.640 and a few other laborers, including Ben Francesco, 00:32:40.640 --> 00:32:44.350 and Henry Baker, and myself, 00:32:44.350 --> 00:32:47.420 I humbly ask that you please adopt 00:32:47.420 --> 00:32:50.920 the proposal for decision in order of route one. 00:32:50.920 --> 00:32:52.220 Thank you. Thank you. 00:32:56.490 --> 00:32:59.490 Oral arguments are at this point concluded, 00:32:59.490 --> 00:33:01.173 unless anybody else, yes, ma'am. 00:33:08.130 --> 00:33:10.190 Can you hear me? Yes, ma'am. 00:33:10.190 --> 00:33:11.700 Good morning, Chairman Lake, 00:33:11.700 --> 00:33:13.873 Commissioners Cobos and McAdams. 00:33:14.750 --> 00:33:18.450 My name is Jenice Benedict, and I'm an intervener, 00:33:18.450 --> 00:33:22.150 and also a member of the Scenic 304 Alliance. 00:33:22.150 --> 00:33:25.210 As you know, we oppose route 12 and support 00:33:25.210 --> 00:33:30.210 the Administrative Law Judges' recommendation of route one. 00:33:31.700 --> 00:33:34.180 I am one of many who live on 304, 00:33:34.180 --> 00:33:35.650 and I can personally tell you, 00:33:35.650 --> 00:33:38.500 this has been a very tough process. 00:33:38.500 --> 00:33:41.550 Jim and I built our life on 304 00:33:41.550 --> 00:33:44.060 many years ago and have enjoyed the peace 00:33:44.060 --> 00:33:47.780 and tranquility more than I can express. 00:33:47.780 --> 00:33:49.840 We love it there so much that Jim and I 00:33:49.840 --> 00:33:54.300 built a beautiful barn that overlooks 304. 00:33:54.300 --> 00:33:56.470 I guess you could say we wanted the views 00:33:56.470 --> 00:33:59.560 rather we were at home or at work. 00:33:59.560 --> 00:34:03.230 Those views are our many heritage oaks 00:34:03.230 --> 00:34:07.680 and are at risk if route 12 is chosen. 00:34:07.680 --> 00:34:11.520 But I'm not here today to only talk about us. 00:34:11.520 --> 00:34:13.630 Instead, I want to share another 00:34:14.720 --> 00:34:17.000 intervener's message with you. 00:34:17.000 --> 00:34:20.360 That intervener is Fred Loya, 00:34:20.360 --> 00:34:22.660 who couldn't be here in time for the meeting 00:34:22.660 --> 00:34:25.480 as he is in El Paso this week. 00:34:25.480 --> 00:34:27.520 Fred is a friend to many of us 00:34:27.520 --> 00:34:30.420 in the neighborhood and he is my neighbor. 00:34:30.420 --> 00:34:33.730 I am honored to speak on his behalf. 00:34:33.730 --> 00:34:36.540 When Fred learned what was happening to his property, 00:34:36.540 --> 00:34:38.620 he was beyond concern. 00:34:38.620 --> 00:34:41.550 Loya Ranch is also called the White Ranch 00:34:41.550 --> 00:34:44.210 by many in the community because of the property's 00:34:44.210 --> 00:34:47.817 shiny white metal fence that borders along 304. 00:34:49.610 --> 00:34:52.213 This would be impacted by route 12. 00:34:53.240 --> 00:34:55.880 Like our property, Loya Ranch 00:34:55.880 --> 00:34:59.950 spans a long distance on route 12. 00:34:59.950 --> 00:35:01.520 Like our property, 00:35:01.520 --> 00:35:04.870 the Loya Ranch will lose many heritage oaks. 00:35:04.870 --> 00:35:08.080 And like our property, the Loya Ranch's views 00:35:08.080 --> 00:35:13.020 will be destroyed if route 12 is chosen. 00:35:13.020 --> 00:35:15.510 Fred Loya provided with testimony 00:35:15.510 --> 00:35:19.210 in this case and was eager to testify. 00:35:19.210 --> 00:35:22.210 He wanted so much for the Administrative Law Judges 00:35:22.210 --> 00:35:25.460 and Commissioners to know that the Loya Ranch 00:35:25.460 --> 00:35:28.590 means so much to him and his family. 00:35:28.590 --> 00:35:30.480 Not only do family and friends live 00:35:30.480 --> 00:35:32.910 on the four homes that I mentioned, 00:35:32.910 --> 00:35:35.760 there's also other homes further back on his property, 00:35:35.760 --> 00:35:38.380 as well as the recreation area. 00:35:38.380 --> 00:35:41.240 The walls of the main recreation area 00:35:41.240 --> 00:35:44.370 are 80% glass so that Fred's guests 00:35:44.370 --> 00:35:47.120 can enjoy the panoramic views. 00:35:47.120 --> 00:35:50.200 And Loya Ranch looks like a golf course, 00:35:50.200 --> 00:35:54.110 because Fred's efforts to keep it looking at its best. 00:35:54.110 --> 00:35:56.640 Not only does Fred put a lot of work in his property, 00:35:56.640 --> 00:35:58.420 Fred has a way with words. 00:35:58.420 --> 00:36:03.250 He describes his property as beautiful rolling hills 00:36:03.250 --> 00:36:08.250 with unimpeded, unsullied, pastorial scenery. 00:36:09.500 --> 00:36:11.600 Fred says, "I have a high hill 00:36:11.600 --> 00:36:12.970 toward the back of the property 00:36:12.970 --> 00:36:15.400 next to the main house from where we can enjoy 00:36:15.400 --> 00:36:18.920 all directions of unlimited view and beauty 00:36:18.920 --> 00:36:21.400 unequaled South Texas country. 00:36:21.400 --> 00:36:22.790 Many of my guests have told me 00:36:22.790 --> 00:36:24.480 they use this spot to meditate 00:36:24.480 --> 00:36:27.777 and contemplate the beauty that nature has given." 00:36:29.450 --> 00:36:30.893 Fred continues. 00:36:32.487 --> 00:36:34.700 "If segment A and B is chosen, 00:36:34.700 --> 00:36:38.650 then Scenic 304 Alliance could lose so much. 00:36:38.650 --> 00:36:40.167 We would lose-" You have one minute. 00:36:40.167 --> 00:36:42.980 "We would lose the beauty that surrounds 00:36:42.980 --> 00:36:44.650 our home and the street we live on. 00:36:44.650 --> 00:36:47.570 We would lose the tree line that protects our homes. 00:36:47.570 --> 00:36:49.680 Our water sources would be at risk. 00:36:49.680 --> 00:36:51.840 We would lose the peace and tranquility 00:36:51.840 --> 00:36:55.458 we feel when we drive to our property." 00:36:55.458 --> 00:36:58.650 I agree with Fred Loya. 00:36:58.650 --> 00:37:01.680 This is all very sad and makes us feel helpless. 00:37:01.680 --> 00:37:03.610 I hope that the Commission hears 00:37:03.610 --> 00:37:06.140 our concerns and takes them to heart, 00:37:06.140 --> 00:37:09.440 Our unobstructed sunsets and sunrises, 00:37:09.440 --> 00:37:13.017 our wildlife habitat, our homes, and our vistas, 00:37:13.017 --> 00:37:15.830 and our leisurely drives along state highway 304, 00:37:15.830 --> 00:37:18.793 they are all at risk, so I'm very saddened. 00:37:19.770 --> 00:37:22.423 And about our children's legacy, 00:37:23.620 --> 00:37:25.120 and to our neighbors' homes, 00:37:25.120 --> 00:37:29.543 and the peace and tranquility we gratefully enjoy. 00:37:30.970 --> 00:37:33.480 The electric transmission line 00:37:33.480 --> 00:37:36.450 would completely consume the vistas, 00:37:36.450 --> 00:37:40.360 what is essentially our front porches. 00:37:40.360 --> 00:37:42.870 This is devastating. 00:37:42.870 --> 00:37:47.870 In my opinion, state highway 304 is a scenic road 00:37:47.950 --> 00:37:52.430 to our community that truly values and enjoys it, 00:37:52.430 --> 00:37:54.260 and connects with our neighbors, 00:37:54.260 --> 00:37:57.303 and reflects a quiet serenity of life. 00:37:58.490 --> 00:37:59.837 We're not just upset- Thank you, ma'am. 00:37:59.837 --> 00:38:01.490 You've reached time. Okay. 00:38:01.490 --> 00:38:02.843 Thank you. Thank you. 00:38:05.040 --> 00:38:07.373 Come on up. One last one. 00:38:10.440 --> 00:38:11.520 Good morning. 00:38:11.520 --> 00:38:12.710 My name is Patti Hickman. 00:38:12.710 --> 00:38:16.480 I'm an intervener and a member of the Scenic 304 Alliance, 00:38:16.480 --> 00:38:18.240 a group of almost 20 neighbors 00:38:18.240 --> 00:38:20.680 who are impacted by and oppose any route 00:38:20.680 --> 00:38:25.120 that parallels state highway 304, in particular route 12. 00:38:25.120 --> 00:38:27.240 I'm here today on behalf of all the members 00:38:27.240 --> 00:38:30.040 of the Scenic 304 Alliance to support the proposal 00:38:30.040 --> 00:38:32.690 for decision and to respectfully ask 00:38:32.690 --> 00:38:36.410 that you please adopt the proposal for decision. 00:38:36.410 --> 00:38:38.270 I have two homes on my property. 00:38:38.270 --> 00:38:40.480 One that I rent and one that I live in. 00:38:40.480 --> 00:38:42.860 Route 12 would impact my property. 00:38:42.860 --> 00:38:45.550 I have lived on highway 304 for 35 years. 00:38:45.550 --> 00:38:48.790 When I moved here, I planted eight young live oak trees 00:38:48.790 --> 00:38:51.700 at the front gate along highway 304. 00:38:51.700 --> 00:38:55.200 They are now healthy and nice sized trees, beautiful trees. 00:38:55.200 --> 00:38:56.930 There are also two native post oaks 00:38:56.930 --> 00:38:58.650 and seven crepe myrtles near my gate. 00:38:58.650 --> 00:39:00.380 These trees have managed to prosper 00:39:00.380 --> 00:39:03.270 despite droughts and less than ideal soil. 00:39:03.270 --> 00:39:05.870 In the same area, I have built two small ponds 00:39:05.870 --> 00:39:07.600 on either side of my driveway, 00:39:07.600 --> 00:39:09.460 and I have an ornamental gate. 00:39:09.460 --> 00:39:12.650 The trees and ponds attract a good variety of birds, 00:39:12.650 --> 00:39:15.113 enough to say that I have a small bird sanctuary. 00:39:16.300 --> 00:39:18.120 All of this is very special to me, 00:39:18.120 --> 00:39:21.490 and it is all within the proposed path of route 12. 00:39:21.490 --> 00:39:23.050 Of course, I worry that these ponds, 00:39:23.050 --> 00:39:25.060 the trees, and my ornamental gate 00:39:25.060 --> 00:39:27.640 may prove difficult to maintain in the long run, 00:39:27.640 --> 00:39:30.680 assuming they are allowed to remain where they are. 00:39:30.680 --> 00:39:33.480 Losing the trees, the vegetative cover, the ponds, 00:39:33.480 --> 00:39:36.890 and possibly my ornamental gate would be upsetting, 00:39:36.890 --> 00:39:39.710 but to make it worse, the GVEC map shows 00:39:39.710 --> 00:39:41.830 there will probably be three concrete poles 00:39:41.830 --> 00:39:43.850 in my front yard with one pole 00:39:43.850 --> 00:39:46.040 within a few feet of my driveway. 00:39:46.040 --> 00:39:47.660 My home sits on a small rise 00:39:47.660 --> 00:39:49.320 about a thousand feet from the front gate, 00:39:49.320 --> 00:39:52.170 and I will have these poles and their multiple wires 00:39:52.170 --> 00:39:55.200 and circuitry in my view every day. 00:39:55.200 --> 00:39:56.610 I know there are times when there 00:39:56.610 --> 00:39:59.640 are no other good decisions for things like this, 00:39:59.640 --> 00:40:01.120 but this is not one of those times. 00:40:01.120 --> 00:40:03.510 The proposal for decision highlights 00:40:03.510 --> 00:40:05.390 that while most of routing factors 00:40:05.390 --> 00:40:08.660 for the three focus routes are very tight and similar, 00:40:08.660 --> 00:40:11.830 community values and aesthetics are distinguishable. 00:40:11.830 --> 00:40:14.730 The top community value was maximizing 00:40:14.730 --> 00:40:16.910 the distance of the line from homes 00:40:16.910 --> 00:40:19.010 and minimizing the visibility of the line. 00:40:19.900 --> 00:40:23.220 This makes route 12, which runs along the highly visible 00:40:23.220 --> 00:40:26.900 and tranquil state highway 304 a very poor choice. 00:40:26.900 --> 00:40:30.350 The very 10-mile section of highway 304 that is route 12 00:40:30.350 --> 00:40:31.840 is probably the prettiest part 00:40:31.840 --> 00:40:34.510 of highway 304's 50-mile length. 00:40:34.510 --> 00:40:37.040 Highway 304 is flanked with thoughtful tree cover, 00:40:37.040 --> 00:40:40.250 which shows that the families that live along highway 304 00:40:40.250 --> 00:40:42.730 truly care about the aesthetics of their property 00:40:42.730 --> 00:40:44.570 and of the surrounding community, 00:40:44.570 --> 00:40:46.530 and that they also value the wildlife 00:40:46.530 --> 00:40:48.870 that prospers in these beautiful trees. 00:40:48.870 --> 00:40:50.810 The decision of where to place this line 00:40:50.810 --> 00:40:53.580 should work to protect this pleasant road drive 00:40:53.580 --> 00:40:56.080 on highway 304 that would be destroyed 00:40:56.080 --> 00:40:59.700 if this enormous electric transmission line is built on it. 00:40:59.700 --> 00:41:01.840 The best alternative is route one, 00:41:01.840 --> 00:41:04.670 which is what the administrative law judges concluded, 00:41:04.670 --> 00:41:06.640 and no one filed exceptions. 00:41:06.640 --> 00:41:08.680 Please allow me to close by saying 00:41:08.680 --> 00:41:10.680 that I sincerely love- One minute. 00:41:10.680 --> 00:41:11.800 Sincerely love this property. 00:41:11.800 --> 00:41:14.510 And I do not want to see this change happen on it. 00:41:14.510 --> 00:41:17.180 It will be dramatic and irreversible. 00:41:17.180 --> 00:41:18.740 Anyone who knows me knows that I spend 00:41:18.740 --> 00:41:20.970 most evenings on my front porch swing, 00:41:20.970 --> 00:41:22.840 where I watch the sunset over the top 00:41:22.840 --> 00:41:25.010 of the oak trees at my front gate. 00:41:25.010 --> 00:41:26.610 Please allow me to spend the rest 00:41:26.610 --> 00:41:29.270 of my golden years enjoying this view. 00:41:29.270 --> 00:41:30.820 Thank you. Thank you, ma'am. 00:41:36.080 --> 00:41:37.790 If there's no one else 00:41:37.790 --> 00:41:39.293 who would like to address the Commission, 00:41:39.293 --> 00:41:41.823 this will conclude oral arguments. 00:41:44.820 --> 00:41:47.303 As we discussed this, Commissioners, I think, 00:41:48.525 --> 00:41:51.143 to start out, I think the ALJ did a good job. 00:41:52.160 --> 00:41:54.020 None of these are ever easy, of course, 00:41:54.020 --> 00:41:56.933 but at the end of the day, this made sense to me. 00:41:59.990 --> 00:42:01.420 Agreed. 00:42:01.420 --> 00:42:04.100 Now, I think, and by the way, 00:42:04.100 --> 00:42:05.800 ma'am, thank you for your service. 00:42:07.020 --> 00:42:11.080 I think when reviewing this, look, 00:42:11.080 --> 00:42:15.060 both the ALJ staff, and I believe, probably the Commission, 00:42:15.060 --> 00:42:16.550 we take great pains to avoid 00:42:16.550 --> 00:42:21.550 as many homesteads as possible, as many structures. 00:42:22.290 --> 00:42:25.060 And if you look at the price, 00:42:25.060 --> 00:42:27.253 this is almost two million more, 00:42:29.665 --> 00:42:31.960 that ALJ went out of its way 00:42:31.960 --> 00:42:33.870 to try to avoid those home sites. 00:42:33.870 --> 00:42:38.860 And I agree, or habitable structures of center line. 00:42:38.860 --> 00:42:42.590 So we're doing what we can, 00:42:42.590 --> 00:42:44.930 I think, everybody at the Commission, 00:42:44.930 --> 00:42:46.823 so I believe they did a good job. 00:42:48.690 --> 00:42:50.775 We try to stay out of people's yards. 00:42:50.775 --> 00:42:55.610 Yeah, it's $2 million for almost 30% fewer homesteads. 00:42:55.610 --> 00:42:56.443 That's right. 00:42:56.443 --> 00:42:57.990 That's the cost benefit. 00:42:57.990 --> 00:42:58.823 Yep. 00:42:59.660 --> 00:43:01.910 All right, is there a motion to adopt the proposal 00:43:01.910 --> 00:43:03.910 for decision and approve route one? 00:43:03.910 --> 00:43:06.070 So moved. Second. 00:43:06.070 --> 00:43:07.360 All in favor, say aye. 00:43:07.360 --> 00:43:08.220 Aye. 00:43:08.220 --> 00:43:09.790 Motion passes. 00:43:09.790 --> 00:43:12.090 Next item please, Mr. Journeay. 00:43:12.090 --> 00:43:14.450 Item five is docket 51611, 00:43:14.450 --> 00:43:18.333 is the application of Sharyland Utilities to change rates. 00:43:19.326 --> 00:43:20.910 A proposed order was filed in this. 00:43:20.910 --> 00:43:24.863 Commission considered it at the June 11th meeting, 00:43:26.200 --> 00:43:31.103 and remanded it back to obtain additional information. 00:43:32.090 --> 00:43:33.687 The revised agreement was filed. 00:43:33.687 --> 00:43:36.930 The ALJs issued a revised proposed order on July 8th, 00:43:36.930 --> 00:43:40.050 and then filed corrections to that order on July 13th. 00:43:40.050 --> 00:43:42.100 And unfortunately, I've also filed a memo 00:43:42.100 --> 00:43:43.170 with proposed changes 00:43:43.170 --> 00:43:47.613 to the corrected revised proposed order. 00:43:49.800 --> 00:43:52.810 Commissioner Cobos has recused herself 00:43:52.810 --> 00:43:56.320 from this matter and will not be participating. 00:43:56.320 --> 00:43:58.163 Thank you, Mr. Journeay. 00:43:59.153 --> 00:44:00.590 Despite all the gymnastics, 00:44:00.590 --> 00:44:02.740 I think they ended up with where we wanted them. 00:44:02.740 --> 00:44:03.983 I think so. 00:44:07.300 --> 00:44:11.490 We've got the cutoff date and a certain sum. 00:44:11.490 --> 00:44:15.830 So is there a motion to approve the revised proposed order- 00:44:15.830 --> 00:44:18.370 With correct amendment. With correct amendment? 00:44:18.370 --> 00:44:19.203 So moved. 00:44:20.500 --> 00:44:22.110 I second, all in favor, say aye. 00:44:22.110 --> 00:44:22.943 Aye. 00:44:22.943 --> 00:44:24.670 Motion passes. 00:44:24.670 --> 00:44:26.240 Next item, please. 00:44:26.240 --> 00:44:29.477 Item six is docket 51952, 00:44:29.477 --> 00:44:32.230 is a settlement over alleged violations 00:44:32.230 --> 00:44:34.570 for Oncor Electric Home Safety. 00:44:34.570 --> 00:44:37.390 Proposed order was filed, no corrections. 00:44:37.390 --> 00:44:39.533 Chairman, you filed a memo in this matter. 00:44:41.450 --> 00:44:42.573 Yeah, this is something I know, 00:44:42.573 --> 00:44:44.673 I think we discussed last time, 00:44:46.020 --> 00:44:51.020 where there needs to be improvement in the duration 00:44:52.420 --> 00:44:55.370 and the frequency of these instances. 00:44:55.370 --> 00:44:57.150 And much in the spirit, 00:44:57.150 --> 00:45:00.130 a similar spirit to your request on Rayburn, 00:45:00.130 --> 00:45:05.130 and more information in irregular format 00:45:05.380 --> 00:45:08.280 regularly presented on the front end of these proceedings. 00:45:09.780 --> 00:45:12.730 We need, when evaluating these issues, 00:45:12.730 --> 00:45:16.560 we need violators to present us the information 00:45:16.560 --> 00:45:20.140 in a clear template with historic information 00:45:20.140 --> 00:45:23.280 so we can evaluate these issues not on a one-off basis, 00:45:23.280 --> 00:45:27.090 but in the context of historic 00:45:27.090 --> 00:45:32.090 performance in maintaining service. 00:45:32.340 --> 00:45:34.780 And also, so we can see what these companies 00:45:34.780 --> 00:45:36.783 are doing to mitigate the problem. 00:45:37.638 --> 00:45:40.360 And that's an important element 00:45:40.360 --> 00:45:43.860 that will help us acknowledge the work 00:45:43.860 --> 00:45:47.053 that companies are doing to mitigate these problems. 00:45:47.970 --> 00:45:49.193 So any thoughts? 00:45:50.330 --> 00:45:53.460 Now, Mr. Chairman, I agreed with your memo. 00:45:53.460 --> 00:45:56.850 Absolutely, in line with what we were doing 00:45:56.850 --> 00:45:59.260 earlier on Rayburn, and that's what I was alluding to, 00:45:59.260 --> 00:46:01.990 I think the more parameters we can overlay 00:46:01.990 --> 00:46:06.990 over these individual cases allows a nice template 00:46:07.470 --> 00:46:10.920 for industry to follow and hopefully facilitates 00:46:10.920 --> 00:46:14.693 expeditious processing of these cases in the near future. 00:46:17.200 --> 00:46:18.930 Yeah, I'll leave it at that. 00:46:18.930 --> 00:46:22.210 And yes, I would echo Commissioner McAdams's 00:46:22.210 --> 00:46:24.030 support of your memo and the direction. 00:46:24.030 --> 00:46:28.460 I think having that information is important. 00:46:28.460 --> 00:46:31.290 And thank you for your leadership on this issue. 00:46:31.290 --> 00:46:32.707 Yeah, thank you. 00:46:34.056 --> 00:46:34.889 Appreciate it. 00:46:34.889 --> 00:46:36.910 Is there a motion to adopt the proposed order? 00:46:36.910 --> 00:46:38.297 So moved. Second. 00:46:38.297 --> 00:46:39.130 All in favor, say aye. 00:46:39.130 --> 00:46:40.730 Aye. 00:46:40.730 --> 00:46:41.740 Motion passes. 00:46:41.740 --> 00:46:44.480 Number seven has been removed from the agenda. 00:46:44.480 --> 00:46:45.739 Number eight, Mr. Journeay. 00:46:45.739 --> 00:46:47.460 Eight and nine were consented, sir. 00:46:47.460 --> 00:46:49.210 Ah, apologies. 00:46:49.210 --> 00:46:52.256 Which gets us to, I guess, well- 00:46:52.256 --> 00:46:54.470 I don't have anything for 10 or 11, do y'all? 00:46:54.470 --> 00:46:55.303 I do not. 00:46:58.570 --> 00:46:59.403 I do not. 00:47:01.240 --> 00:47:03.840 I'll call up items 12 and 13 together 00:47:03.840 --> 00:47:06.380 and recognize Commissioner Cobos 00:47:06.380 --> 00:47:10.193 to speak on her related roles. 00:47:11.180 --> 00:47:12.013 Yes, so 00:47:14.890 --> 00:47:16.890 coming onto the Commission, 00:47:16.890 --> 00:47:19.560 I know that it's been the typical practice 00:47:19.560 --> 00:47:23.790 for Commissioners to divide up the markets outside of ERCOT. 00:47:23.790 --> 00:47:25.620 We are all focused on ERCOT, 00:47:25.620 --> 00:47:26.820 strongly focused on ERCOT, 00:47:26.820 --> 00:47:29.310 but our state does encompass 00:47:29.310 --> 00:47:32.360 the Southwest Power Pool and MISO. 00:47:32.360 --> 00:47:37.360 And so I have agreed to serve as the Commissioner 00:47:37.950 --> 00:47:41.260 that has respective duties on MISO. 00:47:41.260 --> 00:47:45.410 And so I will be moving forward with addressing 00:47:45.410 --> 00:47:47.830 those issues on behalf of the Commission. 00:47:47.830 --> 00:47:50.910 And the only thing I would note is that I think 00:47:52.110 --> 00:47:55.490 just for matters of all of us being cross-trained 00:47:55.490 --> 00:47:58.970 in the different markets, that we consider 00:47:58.970 --> 00:48:01.270 maybe every couple of years switching markets, 00:48:01.270 --> 00:48:02.670 so that we're all cross-trained 00:48:02.670 --> 00:48:07.400 on the different markets that are in Texas, 00:48:07.400 --> 00:48:10.693 with respect to MISO and SPP. 00:48:12.190 --> 00:48:13.023 Interesting idea. 00:48:13.023 --> 00:48:14.910 Certainly something we can consider. 00:48:14.910 --> 00:48:16.180 We've got a lot of work to do 00:48:16.180 --> 00:48:17.911 between now and a couple of years from now. 00:48:17.911 --> 00:48:19.161 Right, right. 00:48:20.090 --> 00:48:21.040 So thank you. 00:48:21.040 --> 00:48:23.362 I'm just glad to have you here. 00:48:23.362 --> 00:48:24.195 Well, thank you. 00:48:24.195 --> 00:48:25.028 Glad to be here. 00:48:27.510 --> 00:48:29.733 Absolutely, thank you, ma'am. 00:48:31.700 --> 00:48:34.263 I don't have anything on item 14. 00:48:35.600 --> 00:48:36.820 Do y'all? 00:48:36.820 --> 00:48:38.087 No, sir, I do not. 00:48:40.240 --> 00:48:41.411 All right. 00:48:41.411 --> 00:48:43.270 I know on item 15, Lori, you have two memos. 00:48:43.270 --> 00:48:45.040 One related to ERCOT and one related 00:48:45.040 --> 00:48:48.320 to kind of Commission path forward. 00:48:48.320 --> 00:48:53.320 I think the path forward, probably most relevant to item 21. 00:48:54.320 --> 00:48:55.947 So let's hold that for 21. 00:48:58.683 --> 00:49:00.800 ERCOT is here, per your memo. 00:49:00.800 --> 00:49:02.690 I'll turn the floor over to you. 00:49:02.690 --> 00:49:04.813 Sure- Per your request of ERCOT. 00:49:06.240 --> 00:49:07.073 Thank you, Chairman Lake. 00:49:07.073 --> 00:49:11.310 Yes, I have requested that ERCOT be here today 00:49:11.310 --> 00:49:13.360 to present an overview of their roadmap 00:49:13.360 --> 00:49:15.600 to improving grid reliability. 00:49:15.600 --> 00:49:18.890 It sets forth a suite of improvements 00:49:18.890 --> 00:49:22.330 to enhance grid reliability and improve communications 00:49:22.330 --> 00:49:24.430 and restore public trust and confidence in ERCOT. 00:49:24.430 --> 00:49:25.730 And I think it's important for us 00:49:25.730 --> 00:49:29.310 to get an update or a presentation from Brad, 00:49:29.310 --> 00:49:32.250 and for the public to hear a little bit more about the plan. 00:49:32.250 --> 00:49:34.940 I know it's been a very positive step forward. 00:49:34.940 --> 00:49:38.710 And so I appreciate Brad being here today 00:49:38.710 --> 00:49:40.260 to talk about the plan and also give us 00:49:40.260 --> 00:49:42.490 an update on grid reliability. 00:49:42.490 --> 00:49:47.490 I know ERCOT's taking a lot of more aggressive actions 00:49:48.370 --> 00:49:51.390 to maintain grid reliability at our direction. 00:49:51.390 --> 00:49:53.340 And I think those are all very positive steps, 00:49:53.340 --> 00:49:54.850 and I thought it'd be a great idea for Brad 00:49:54.850 --> 00:49:57.373 to kind of touch on those actions as well today. 00:49:59.140 --> 00:49:59.973 Come on up. 00:50:10.350 --> 00:50:11.183 Good morning. 00:50:13.550 --> 00:50:15.883 I'm Brad Jones, the interim CEO for ERCOT. 00:50:16.890 --> 00:50:18.630 And thank you for having me here, 00:50:18.630 --> 00:50:21.830 Commissioner Cobos, Chairman, Commissioner McAdams. 00:50:21.830 --> 00:50:22.830 Thank you very much. 00:50:23.710 --> 00:50:26.010 Yes, thank you for highlighting the plan 00:50:26.010 --> 00:50:27.930 that we just released, I believe, 00:50:27.930 --> 00:50:31.860 either late Monday or early Tuesday morning. 00:50:31.860 --> 00:50:34.020 The plan itself has been underway 00:50:34.020 --> 00:50:36.560 and in production for some time. 00:50:36.560 --> 00:50:38.760 We had been gathering ideas from a number 00:50:38.760 --> 00:50:41.200 of participants throughout the market. 00:50:41.200 --> 00:50:44.520 In fact, I reached out to over 25 individuals 00:50:44.520 --> 00:50:47.380 that I've had past relationships with 00:50:47.380 --> 00:50:50.310 in terms of market interactions, 00:50:50.310 --> 00:50:52.380 and talk to each of these individuals. 00:50:52.380 --> 00:50:54.390 They represented consumers, 00:50:54.390 --> 00:50:56.529 they represented market participants, 00:50:56.529 --> 00:50:58.310 there were former regulators, 00:50:58.310 --> 00:51:03.310 there were former heads of market participant companies, 00:51:03.510 --> 00:51:07.380 as well as environmentalists all within that group of 25. 00:51:07.380 --> 00:51:10.343 And so the point is that this list is not my list. 00:51:10.343 --> 00:51:12.220 It's not simply ERCOT's list, 00:51:12.220 --> 00:51:14.090 but it's list of many advisors 00:51:14.090 --> 00:51:17.760 that have worked to put this together for us. 00:51:17.760 --> 00:51:20.440 The identification of the items was important. 00:51:20.440 --> 00:51:23.640 I wanted to make sure that we reached out to a diverse group 00:51:23.640 --> 00:51:25.740 so we could get a lot of different ideas 00:51:25.740 --> 00:51:29.280 of what had to be done within ERCOT to improve ERCOT, 00:51:29.280 --> 00:51:31.420 to make sure that we are meeting the needs 00:51:31.420 --> 00:51:34.360 of all Texans and providing a reliable grid. 00:51:34.360 --> 00:51:36.470 That's what the list does. 00:51:36.470 --> 00:51:38.420 The initiatives in there, there are 60 of those. 00:51:38.420 --> 00:51:41.329 We've already completed 20 of the items on the list. 00:51:41.329 --> 00:51:44.580 I should say 22, I got a couple updates this morning. 00:51:44.580 --> 00:51:48.390 So there's 22 items that are completed on the list. 00:51:48.390 --> 00:51:52.890 We are quite focused on the various items there. 00:51:52.890 --> 00:51:57.030 Let me walk you through a few of the more important ones 00:51:57.030 --> 00:51:58.700 that I wanna address for you. 00:51:58.700 --> 00:52:01.990 So most of these, I have memorized the numbers in my head. 00:52:01.990 --> 00:52:04.720 I'll see if I can do a fair justice to that again. 00:52:04.720 --> 00:52:06.090 Item number six. 00:52:06.090 --> 00:52:11.090 One that each of you has been very, very instructive on, 00:52:12.480 --> 00:52:15.830 is operating the grid in extremely reliable manner, 00:52:15.830 --> 00:52:18.370 especially in the summer, but at all times. 00:52:18.370 --> 00:52:20.610 And so we have changed our operations, 00:52:20.610 --> 00:52:23.310 and we're operating much more conservatively 00:52:23.310 --> 00:52:25.180 than we ever have before. 00:52:25.180 --> 00:52:28.210 We have typically been comfortable with running 00:52:28.210 --> 00:52:31.160 with 5,000 megawatts of additional reserves 00:52:31.160 --> 00:52:34.380 across peak hours throughout the summer. 00:52:34.380 --> 00:52:37.230 We now are operating with 6,500 megawatts 00:52:37.230 --> 00:52:38.990 of additional reserves. 00:52:38.990 --> 00:52:41.950 Initially, we did this through what we call 00:52:41.950 --> 00:52:43.530 reliability unit commitments, 00:52:43.530 --> 00:52:45.360 bringing units into the market 00:52:45.360 --> 00:52:48.400 that weren't otherwise scheduled by the market themselves. 00:52:48.400 --> 00:52:50.340 So forcing these units to come in 00:52:50.340 --> 00:52:53.960 and paying them at cost to operate in our market. 00:52:53.960 --> 00:52:56.570 That has worked well to keep us 00:52:56.570 --> 00:52:58.730 in a very reliable situation. 00:52:58.730 --> 00:53:03.180 We have now moved that effort into our ancillary services. 00:53:03.180 --> 00:53:06.110 So move off of those reliability unit commitments. 00:53:06.110 --> 00:53:09.030 We are now buying 1,500 megawatts more 00:53:09.030 --> 00:53:13.870 of non-spin reserves across peak on a daily basis. 00:53:13.870 --> 00:53:16.100 In addition to the non-spin reserves, 00:53:16.100 --> 00:53:19.380 we now have what we call responsive reserves 00:53:19.380 --> 00:53:23.610 that we've increased from 2,300 to 2,800 megawatts. 00:53:23.610 --> 00:53:25.380 And in addition to each of those, 00:53:25.380 --> 00:53:27.780 we intend to buy up to an additional 00:53:27.780 --> 00:53:30.150 1,000 megawatts of non-spin reserves 00:53:30.150 --> 00:53:33.530 whenever we see an uncertain weather condition. 00:53:33.530 --> 00:53:35.710 And to give you an example of that, 00:53:35.710 --> 00:53:37.610 an uncertain weather condition, a great example, 00:53:37.610 --> 00:53:40.330 a few Mondays ago, a weather front was coming 00:53:40.330 --> 00:53:43.670 through Texas and was expected to reach Dallas, 00:53:43.670 --> 00:53:45.900 and rain was expected to fall 00:53:45.900 --> 00:53:48.270 on the Dallas area and drive load down. 00:53:48.270 --> 00:53:51.450 While at the same time, behind that weather forecast, 00:53:51.450 --> 00:53:55.640 we expected to have higher wind production. 00:53:55.640 --> 00:53:58.170 So the combination of the two efforts would have been, 00:53:58.170 --> 00:54:00.870 or those two circumstances would have been 00:54:00.870 --> 00:54:03.460 about 5,000 megawatts more generation, 00:54:03.460 --> 00:54:05.330 a reduced load in Dallas, 00:54:05.330 --> 00:54:08.426 increased wind generation in the west. 00:54:08.426 --> 00:54:11.110 In fact, that's exactly what happened. 00:54:11.110 --> 00:54:12.250 But my point to you is that 00:54:12.250 --> 00:54:15.270 if that weather front was two hours late, 00:54:15.270 --> 00:54:17.850 we would have had a lot more load in Dallas 00:54:17.850 --> 00:54:20.280 and a lot less wind out west. 00:54:20.280 --> 00:54:22.080 So in an uncertain condition like that, 00:54:22.080 --> 00:54:24.530 we wanna make sure that we are purchasing 00:54:24.530 --> 00:54:28.200 more capacity so that we're prepared just in case 00:54:28.200 --> 00:54:30.940 our weather forecast is two hours late. 00:54:30.940 --> 00:54:32.593 So we've done that on item six. 00:54:33.490 --> 00:54:35.313 Let me take you to item 18. 00:54:36.220 --> 00:54:38.880 Item 18 is something that's very important to me. 00:54:38.880 --> 00:54:41.140 This has to do with transmission build. 00:54:41.140 --> 00:54:45.850 And item 18 is a focus on the Rio Grande Valley. 00:54:45.850 --> 00:54:47.280 And when I say Rio Grande Valley, 00:54:47.280 --> 00:54:48.330 I really should extend that 00:54:48.330 --> 00:54:49.980 all the way up to Corpus Christi. 00:54:51.290 --> 00:54:52.950 The Rio Grande valley, I believe, 00:54:52.950 --> 00:54:56.760 has been underserved by transmission for more than 15 years. 00:54:56.760 --> 00:54:58.470 I know that throughout my career, 00:54:58.470 --> 00:55:01.080 we have struggled, all of us throughout the industry, 00:55:01.080 --> 00:55:02.340 to make sure that we are getting 00:55:02.340 --> 00:55:04.990 the right resources down to that area. 00:55:04.990 --> 00:55:06.870 It is a very fast growth area, 00:55:06.870 --> 00:55:09.630 and it's been very difficult to stay ahead of that. 00:55:09.630 --> 00:55:13.580 One of my goals is to have ERCOT develop a plan 00:55:13.580 --> 00:55:16.710 in conjunction with our transmission providers, 00:55:16.710 --> 00:55:19.650 develop a plan for better serving that area. 00:55:19.650 --> 00:55:22.580 And we have to do so using our transmission 00:55:22.580 --> 00:55:25.700 development changes in planning rule set. 00:55:25.700 --> 00:55:29.070 But if I start team to push for specific areas 00:55:29.070 --> 00:55:30.650 that we have never pushed for before. 00:55:30.650 --> 00:55:34.430 For example, the Lower Rio Grande Valley 00:55:34.430 --> 00:55:36.743 is subject to drought conditions. 00:55:37.660 --> 00:55:38.493 Every few years, 00:55:38.493 --> 00:55:40.020 they go through significant drought conditions, 00:55:40.020 --> 00:55:41.290 and when that happens, 00:55:41.290 --> 00:55:44.660 generation can be constrained in the valley. 00:55:44.660 --> 00:55:47.940 So I want our team to be using drought conditions 00:55:47.940 --> 00:55:49.230 as one of the conditions 00:55:49.230 --> 00:55:51.510 by which we build more transmission. 00:55:51.510 --> 00:55:53.240 Identify that in those circumstances, 00:55:53.240 --> 00:55:55.530 we'll have less generation than we need. 00:55:55.530 --> 00:55:56.930 We wanna make sure that we're building down 00:55:56.930 --> 00:55:58.530 into that area for that purpose. 00:55:58.530 --> 00:55:59.573 That's item 18. 00:56:00.990 --> 00:56:03.120 Let me take you to item 50. 00:56:03.120 --> 00:56:06.760 Item 50 is extraordinarily important to me. 00:56:06.760 --> 00:56:09.610 And it's extraordinarily important to the state of Texas. 00:56:10.520 --> 00:56:14.190 The Governor has it listed as item one on his list of things 00:56:14.190 --> 00:56:17.100 that he has asked the PUC to look at very closely, 00:56:17.100 --> 00:56:18.943 and that is dispatchable generation. 00:56:19.800 --> 00:56:22.700 How do we get more dispatchable generation into the state? 00:56:24.420 --> 00:56:29.420 Item 50, although it seems like a study, an innocuous study, 00:56:30.210 --> 00:56:34.680 is complete with many activities and many actions. 00:56:34.680 --> 00:56:37.640 The idea is to identify what type 00:56:37.640 --> 00:56:40.200 of dispatchable generation we need. 00:56:40.200 --> 00:56:43.010 And by that, what are the attributes we're looking for? 00:56:43.010 --> 00:56:44.840 Is there a duration requirement? 00:56:44.840 --> 00:56:47.340 Is there a requirement for ramp speed? 00:56:47.340 --> 00:56:51.740 Is there a requirement for how fast a unit can turn on 00:56:51.740 --> 00:56:54.780 and go from zero to its low sustainable limit? 00:56:54.780 --> 00:56:57.170 So those questions we have to answer. 00:56:57.170 --> 00:56:59.370 What do we need in our future 00:56:59.370 --> 00:57:01.863 for balancing wind and solar generation? 00:57:02.720 --> 00:57:05.513 Once we've identified what that is, 00:57:06.610 --> 00:57:10.000 the next question is, how do we provide revenue adequacy? 00:57:10.000 --> 00:57:11.340 It's an important term there 00:57:11.340 --> 00:57:13.130 at the end of that bullet point. 00:57:13.130 --> 00:57:15.110 How do we provide revenue adequacy 00:57:15.110 --> 00:57:16.910 for that type of generation? 00:57:16.910 --> 00:57:19.330 These issues are very much front and center 00:57:19.330 --> 00:57:22.890 for the PUC to address that item 50 00:57:22.890 --> 00:57:24.770 is to make sure that ERCOT is ready 00:57:24.770 --> 00:57:27.880 to support the PUC in that discussion. 00:57:27.880 --> 00:57:29.090 Those are just a few of the items 00:57:29.090 --> 00:57:30.990 I wanted to raise to your attention. 00:57:30.990 --> 00:57:32.470 Any others that you want to raise, 00:57:32.470 --> 00:57:34.870 I'd be happy to answer questions about, 00:57:34.870 --> 00:57:37.110 but I want you to know that everybody at ERCOT, 00:57:37.110 --> 00:57:40.090 every staff member feels this keenly. 00:57:40.090 --> 00:57:42.100 We are focused on making sure that this 00:57:42.100 --> 00:57:45.950 is the most reliable and best market in the country. 00:57:45.950 --> 00:57:47.523 Thank you. Thank you, Brad. 00:57:48.460 --> 00:57:50.030 Appreciate you being here. 00:57:50.030 --> 00:57:54.350 And I wanna respond to two things briefly. 00:57:54.350 --> 00:57:58.120 Of the total items on the list of 60, I believe, 00:57:58.120 --> 00:58:00.320 how many have been, 22? 00:58:00.320 --> 00:58:02.160 22 now. So over a third 00:58:02.160 --> 00:58:04.673 have already been completed in your time here. 00:58:05.780 --> 00:58:07.910 We've got a lot of work to go and a long way to go, 00:58:07.910 --> 00:58:09.430 but I wanna commend you and your team 00:58:09.430 --> 00:58:14.033 for the speed and action that you've started off with. 00:58:15.650 --> 00:58:18.633 Thank you. And also want to, 00:58:19.781 --> 00:58:21.510 on the first one you mentioned, 00:58:21.510 --> 00:58:23.933 the new operating posture that ERCOT has taken, 00:58:24.990 --> 00:58:28.210 I know the public can get lost in industry jargon. 00:58:28.210 --> 00:58:31.340 And so I wanna make sure to highlight 00:58:31.340 --> 00:58:33.650 how dramatic that operational change 00:58:33.650 --> 00:58:38.300 has been to previous ways ERCOT was run 00:58:38.300 --> 00:58:43.150 in building out a bigger reserve of power 00:58:43.150 --> 00:58:45.430 than we have in the past. 00:58:45.430 --> 00:58:49.620 Accounting for uncertainty that we never have done before 00:58:49.620 --> 00:58:52.540 and using the rucking mechanism, 00:58:52.540 --> 00:58:55.300 which essentially forcing generators to come on 00:58:55.300 --> 00:59:00.300 whether they want to or not is absolute sea change 00:59:00.650 --> 00:59:02.630 in the way business has been done before. 00:59:02.630 --> 00:59:04.840 And I think it's important we recognize that. 00:59:04.840 --> 00:59:06.253 Thank you. And finally, 00:59:07.787 --> 00:59:10.530 I wanna say thank you for the last item you mentioned. 00:59:10.530 --> 00:59:12.420 The ERCOT team has provided great support 00:59:12.420 --> 00:59:16.960 in the work session we had regarding market design, 00:59:16.960 --> 00:59:20.150 and also both behind the scenes 00:59:20.150 --> 00:59:22.680 and in our public work sessions, 00:59:22.680 --> 00:59:26.120 and also in testimony about actions taken to date 00:59:26.120 --> 00:59:28.500 and the road we have ahead of us. 00:59:28.500 --> 00:59:29.543 So appreciate that. 00:59:30.640 --> 00:59:32.690 We have a tremendous task ahead of us, 00:59:32.690 --> 00:59:35.460 but wanted to make sure and acknowledge 00:59:35.460 --> 00:59:37.450 the speed with which you all have taken action 00:59:37.450 --> 00:59:39.540 in conjunction with the Commission. 00:59:39.540 --> 00:59:42.100 So wanna make sure folks recognize that. 00:59:42.100 --> 00:59:43.440 Thank you, sir. Thank you. 00:59:43.440 --> 00:59:45.140 Other comments, questions to Brad? 00:59:46.690 --> 00:59:48.288 I think that's important. 00:59:48.288 --> 00:59:51.910 I think we need to commend Commission staff 00:59:51.910 --> 00:59:53.640 and the staff of ERCOT. 00:59:53.640 --> 00:59:55.450 I think it's fair to say that we're all 00:59:55.450 --> 00:59:57.510 living on coffee and anger right now 00:59:57.510 --> 01:00:00.070 in terms of the workload that's before us. 01:00:00.070 --> 01:00:03.283 And people are working hard, you're working hard. 01:00:04.810 --> 01:00:08.350 The protocols that you are, they're not protocols, 01:00:08.350 --> 01:00:10.290 the steps that you have taken, 01:00:10.290 --> 01:00:13.820 are important to reaffirming the public confidence 01:00:13.820 --> 01:00:15.800 that we can manage this grid. 01:00:15.800 --> 01:00:19.610 And I know that it seems disruptive to the industry. 01:00:19.610 --> 01:00:21.980 We are all experiencing pushback 01:00:21.980 --> 01:00:26.360 as you push forward on your new safeguards, 01:00:26.360 --> 01:00:28.580 but the work you're doing is important, 01:00:28.580 --> 01:00:30.360 and we are moving at speed, 01:00:30.360 --> 01:00:32.273 and thank you for what you're doing. 01:00:32.273 --> 01:00:33.625 Thank you, sir. 01:00:33.625 --> 01:00:34.797 And thank you for being here today, Brad. 01:00:34.797 --> 01:00:38.423 And I would just echo the support that, 01:00:39.940 --> 01:00:42.440 thank you for all your hard work, 01:00:42.440 --> 01:00:44.170 that you and the ERCOT staff 01:00:44.170 --> 01:00:45.510 and Commission staff have put forward 01:00:45.510 --> 01:00:48.280 in developing this very well-rounded, 01:00:48.280 --> 01:00:51.210 robust list of improvements, 01:00:51.210 --> 01:00:54.590 and for your efficient action on them. 01:00:54.590 --> 01:00:59.190 And also for the update on the actions 01:00:59.190 --> 01:01:02.370 that ERCOT is taking to provide a higher margin 01:01:02.370 --> 01:01:05.290 of grid reliability through the summer. 01:01:05.290 --> 01:01:06.510 Thank you so much for being here. 01:01:06.510 --> 01:01:08.380 Appreciate it, on behalf of all of ERCOT, 01:01:08.380 --> 01:01:09.660 we appreciate your comments. 01:01:09.660 --> 01:01:11.573 Thank you. Thanks, Brad. 01:01:13.770 --> 01:01:16.070 That's all the business we have on item 15, 01:01:16.070 --> 01:01:18.620 pending one memo for 21. 01:01:18.620 --> 01:01:20.313 I don't have anything on item 16. 01:01:21.390 --> 01:01:22.223 Do y'all? 01:01:26.500 --> 01:01:28.790 17, are you good on 16, Lori? 01:01:28.790 --> 01:01:30.550 I'm good, thank you, sir. 01:01:30.550 --> 01:01:32.210 17 was removed from the agenda. 01:01:32.210 --> 01:01:34.690 It brings us to number 18. 01:01:34.690 --> 01:01:37.440 Mr. Journeay, would you please lay that out for us? 01:01:37.440 --> 01:01:40.603 Item 18 is docket 50605. 01:01:41.920 --> 01:01:43.740 We have a request by Lynn Sherman, 01:01:43.740 --> 01:01:46.610 who's the temporary manager of Blue Cereus 01:01:46.610 --> 01:01:49.110 to end his appointment. 01:01:49.110 --> 01:01:50.810 Chairman, you have a memo in this. 01:01:52.130 --> 01:01:52.963 Yes, sir. 01:01:54.860 --> 01:01:59.860 This is obviously a challenging situation across the board. 01:02:00.410 --> 01:02:04.930 But wanna start out by saying that my focus 01:02:06.530 --> 01:02:09.910 is ensuring continued service to the people in this area. 01:02:09.910 --> 01:02:11.703 That's my overarching priority. 01:02:12.570 --> 01:02:13.910 And I'll be brief and just say that, 01:02:13.910 --> 01:02:15.460 I think if given this transition 01:02:15.460 --> 01:02:17.010 and the circumstances we're in, 01:02:18.172 --> 01:02:20.723 and the focus on continuing to provide service, 01:02:22.130 --> 01:02:25.990 we need to hear from the parties responsible 01:02:25.990 --> 01:02:29.160 who we're gonna end up taking over this 01:02:29.160 --> 01:02:33.713 or will be responsible if control is reverted back to them, 01:02:34.560 --> 01:02:36.276 and will be responsible for serving 01:02:36.276 --> 01:02:37.910 the people in that area. 01:02:37.910 --> 01:02:39.313 So I'll stop there. 01:02:40.640 --> 01:02:43.160 Do y'all have any thoughts or comments? 01:02:43.160 --> 01:02:45.560 Yeah, Mr. Chairman, just to start off. 01:02:45.560 --> 01:02:47.033 I think you're taking a step. 01:02:47.970 --> 01:02:49.490 At least when I came through confirmation, 01:02:49.490 --> 01:02:50.670 I think we were all presented 01:02:50.670 --> 01:02:52.490 with the same kind of questions from senators. 01:02:52.490 --> 01:02:55.650 Like, what are you gonna do to fix these things 01:02:55.650 --> 01:02:57.280 that have been hanging out there for years? 01:02:57.280 --> 01:03:00.100 This is one of those cases that has been hanging out 01:03:00.100 --> 01:03:03.380 for years within the Commission at various stages. 01:03:03.380 --> 01:03:05.700 And it's a problem that just doesn't seem 01:03:05.700 --> 01:03:06.950 to have an end to it. 01:03:06.950 --> 01:03:09.730 And I think you're asking the right question. 01:03:09.730 --> 01:03:12.020 What is gonna be the end? 01:03:12.020 --> 01:03:13.620 And ultimately, these are the same actors 01:03:13.620 --> 01:03:14.920 who have always been participating. 01:03:14.920 --> 01:03:17.035 It's not like we're having a revolving door here. 01:03:17.035 --> 01:03:19.300 It's a circular problem. 01:03:19.300 --> 01:03:23.080 And we are all new in our roles. 01:03:23.080 --> 01:03:24.070 And I think this is the time 01:03:24.070 --> 01:03:25.230 to start asking these questions, 01:03:25.230 --> 01:03:28.310 so your memo is well-timed. Appreciate it. 01:03:28.310 --> 01:03:30.153 Yes, and thank you, Chairman. 01:03:31.730 --> 01:03:34.770 I definitely agree with the direction of your memo. 01:03:34.770 --> 01:03:38.540 It's important to ensure continued service. 01:03:38.540 --> 01:03:41.723 And so thank you for your leadership on this issue. 01:03:44.150 --> 01:03:45.650 Appreciate it. 01:03:45.650 --> 01:03:48.710 I think the mechanical elements of this 01:03:48.710 --> 01:03:52.140 can be addressed in a pretty straightforward manner 01:03:52.140 --> 01:03:55.410 in terms of date of termination and compensation. 01:03:55.410 --> 01:03:56.710 I think we can get to a point 01:03:56.710 --> 01:03:58.310 where it's essentially pro-rata. 01:04:01.040 --> 01:04:05.550 And also ask OPDM to issue an order 01:04:05.550 --> 01:04:08.230 related to the request laid out in my memo. 01:04:08.230 --> 01:04:09.857 Does that make sense? 01:04:09.857 --> 01:04:11.670 It does, and I'm agreed. 01:04:11.670 --> 01:04:13.039 Yes, it does, thank you. 01:04:13.039 --> 01:04:13.872 All right, in that case, 01:04:13.872 --> 01:04:16.000 I will entertain a motion to grant Mr. Sherman's request 01:04:16.000 --> 01:04:18.240 to terminate his appointment as temporary manager 01:04:18.240 --> 01:04:21.230 of Blue Cereus and terminate his compensation 01:04:21.230 --> 01:04:23.730 effective on the date the order is signed, 01:04:23.730 --> 01:04:25.640 and also direct OPDM to issue 01:04:25.640 --> 01:04:28.040 the order discussed in my memo. 01:04:28.040 --> 01:04:29.520 Is there a second? Second. 01:04:32.402 --> 01:04:33.260 Oh, sorry, is there a motion? 01:04:33.260 --> 01:04:34.320 Excuse me. So moved. 01:04:34.320 --> 01:04:35.500 Second. All right. 01:04:35.500 --> 01:04:36.860 All in favor, say aye. 01:04:36.860 --> 01:04:38.510 Aye. 01:04:38.510 --> 01:04:39.350 Motion passes. 01:04:39.350 --> 01:04:41.332 I was gonna give you what you wanted no matter what. 01:04:41.332 --> 01:04:43.010 (audience laughing) 01:04:43.010 --> 01:04:44.730 He was excited. Coffee and anger 01:04:44.730 --> 01:04:45.714 in a bottle. That's right. 01:04:45.714 --> 01:04:48.714 (audience laughing) 01:04:49.955 --> 01:04:53.205 Number 19 will not be taken up today. 01:04:54.800 --> 01:04:55.960 Is that correct, Mr. Journeay? 01:04:55.960 --> 01:04:57.960 Yes, sir, we're not able to. 01:04:59.913 --> 01:05:01.650 I don't have anything for item 20, do y'all? 01:05:01.650 --> 01:05:02.600 No, sir. Nope. 01:05:03.460 --> 01:05:08.460 All right, 21, we've got memos 01:05:08.770 --> 01:05:13.363 from both Lori and myself related to path forward for, 01:05:14.290 --> 01:05:19.290 largely related to market design, and really work sessions. 01:05:20.060 --> 01:05:23.258 Before we dive into that, let's start with, 01:05:23.258 --> 01:05:24.750 does it work with y'all to start with an update 01:05:24.750 --> 01:05:29.270 on agency activities from our executive director? 01:05:29.270 --> 01:05:30.340 Yes. Good for me. 01:05:30.340 --> 01:05:31.570 All right, Mr. Gleeson. 01:05:31.570 --> 01:05:32.870 Thank you, Mr. Chairman. 01:05:33.710 --> 01:05:35.830 Just quickly, a bit of sad news, 01:05:35.830 --> 01:05:40.000 as I know you all insist on hearing bad news immediately. 01:05:40.000 --> 01:05:41.800 Davida Dwyer, who has worked 01:05:41.800 --> 01:05:44.530 at the Commission since, I believe, 01:05:44.530 --> 01:05:47.690 and she walked out of the room right as I was doing this. 01:05:47.690 --> 01:05:49.180 Who has worked at the Commission since, 01:05:49.180 --> 01:05:51.580 I think January of 2008 in a number of roles, 01:05:51.580 --> 01:05:55.460 including supporting multiple Commissioners, 01:05:55.460 --> 01:05:58.440 working in legal and in Stephen's division, 01:05:58.440 --> 01:05:59.500 tendered her resignation. 01:05:59.500 --> 01:06:01.570 She'll be leaving at the end of this month. 01:06:01.570 --> 01:06:03.600 And I thought it appropriate, 01:06:03.600 --> 01:06:05.410 given the great work that she's done here, 01:06:05.410 --> 01:06:08.230 to acknowledge her service. 01:06:08.230 --> 01:06:09.990 The state and this agency are better off 01:06:09.990 --> 01:06:11.440 because of all the work that she's done here, 01:06:11.440 --> 01:06:13.010 and we're really gonna miss her. 01:06:13.010 --> 01:06:13.843 Appreciate it. 01:06:13.843 --> 01:06:15.940 It's sad to lose her, but appreciate her service, 01:06:15.940 --> 01:06:18.330 and wish her all the best in her future endeavors. 01:06:18.330 --> 01:06:19.163 Definitely. 01:06:20.420 --> 01:06:24.060 Another item we are going to begin this month 01:06:24.060 --> 01:06:27.480 and transition into next month, doing a bit of a reorg. 01:06:27.480 --> 01:06:29.700 If you heard me testify during the legislative session, 01:06:29.700 --> 01:06:31.000 one of the issues that came up a lot 01:06:31.000 --> 01:06:33.040 was our enforcement division. 01:06:33.040 --> 01:06:35.350 So one of the things I committed to members 01:06:35.350 --> 01:06:37.470 of the legislature was to work with Connie 01:06:37.470 --> 01:06:39.870 and consider reconstituting 01:06:39.870 --> 01:06:41.810 a standalone enforcement division. 01:06:41.810 --> 01:06:45.090 And we are going to do that effective August 1st. 01:06:45.090 --> 01:06:47.010 I'm happy to say that Barksdale English 01:06:47.010 --> 01:06:51.080 has accepted the role of division director of that division. 01:06:51.080 --> 01:06:53.150 Prior to kind of supporting me and Connie, 01:06:53.150 --> 01:06:57.030 he was an advisor to former chairman, Arthur D'Andrea. 01:06:57.030 --> 01:07:00.800 And I think he's the right person to kind of reframe 01:07:00.800 --> 01:07:03.850 what enforcement looks like at the PUC going forward, 01:07:03.850 --> 01:07:06.270 particularly with his eye on wholesale markets. 01:07:06.270 --> 01:07:08.430 So I think that's a really good move, 01:07:08.430 --> 01:07:09.330 and something we committed 01:07:09.330 --> 01:07:10.357 to during the legislative session, 01:07:10.357 --> 01:07:12.700 and I'm glad to say we're gonna fulfill that. 01:07:12.700 --> 01:07:15.240 And the second piece of kind of the reorg 01:07:15.240 --> 01:07:20.240 is we will be forming a new rules and rules division 01:07:20.500 --> 01:07:23.320 to really focus on all, we'll talk 01:07:23.320 --> 01:07:25.590 about this implementation schedule in a second, 01:07:25.590 --> 01:07:29.430 but we have upwards of 30-plus policy projects 01:07:29.430 --> 01:07:30.690 coming out of the session. 01:07:30.690 --> 01:07:34.130 David Smeltzer, who has kind of been running our rules, 01:07:34.130 --> 01:07:39.130 who is here, for a little bit, has accepted 01:07:39.960 --> 01:07:42.100 the role of division director of that division. 01:07:42.100 --> 01:07:47.100 And I'm happy to say that that is a perfect role for him. 01:07:47.210 --> 01:07:49.440 He has mine and Connie's full support in that role. 01:07:49.440 --> 01:07:52.000 And yeah, it's a huge undertaking 01:07:52.000 --> 01:07:53.600 what we have coming out of the session, 01:07:53.600 --> 01:07:55.260 and we thought it appropriate to have 01:07:55.260 --> 01:07:57.060 a standalone division focused just on rules 01:07:57.060 --> 01:07:59.523 and projects that are gonna be coming up. 01:08:01.010 --> 01:08:03.546 Thank you. So then with that, 01:08:03.546 --> 01:08:06.580 yesterday, staff filed its implementation schedule 01:08:06.580 --> 01:08:08.100 for the policy projects 01:08:08.100 --> 01:08:10.890 coming out of the 87 legislative session. 01:08:10.890 --> 01:08:12.620 It was a focus of some of the discussion 01:08:12.620 --> 01:08:15.620 at the legislative hearing in BNC earlier this week. 01:08:15.620 --> 01:08:18.560 The goal in putting this before you 01:08:18.560 --> 01:08:20.900 is to get your input on kind of the priorities 01:08:20.900 --> 01:08:23.550 and timelines that we've set forth 01:08:23.550 --> 01:08:25.810 so you all can kind of give us your input 01:08:25.810 --> 01:08:28.360 so we can meet your expectations 01:08:28.360 --> 01:08:30.100 and the public's expectations. 01:08:30.100 --> 01:08:32.530 And then the goal would be if priorities 01:08:32.530 --> 01:08:34.930 or schedules change, we'll bring this before you 01:08:35.812 --> 01:08:37.863 at a regular iteration to discuss it. 01:08:39.770 --> 01:08:40.920 Works for me. 01:08:43.270 --> 01:08:45.010 Is this our opportunity to opine on? 01:08:45.010 --> 01:08:46.160 This is, yes, sir. 01:08:46.160 --> 01:08:49.270 If you'd like to like to discuss our priorities 01:08:49.270 --> 01:08:52.100 as we've set them forth or the timelines, 01:08:52.100 --> 01:08:53.760 happy to hear your input at this point. 01:08:53.760 --> 01:08:56.000 All I know is, this was a mountain of work 01:08:56.000 --> 01:08:58.600 just to put this together, to try to corral 01:08:58.600 --> 01:09:00.863 so many different issues as a great product. 01:09:01.710 --> 01:09:03.360 No matter what it looks like, 01:09:03.360 --> 01:09:07.210 provided input, the public nature of this, 01:09:07.210 --> 01:09:09.680 having as much transparency around it as possible 01:09:09.680 --> 01:09:11.930 is gonna be incredibly helpful, already is to us, 01:09:11.930 --> 01:09:14.270 just to tell people, hey, this is out there, 01:09:14.270 --> 01:09:15.680 look at the schedule. 01:09:15.680 --> 01:09:18.150 Is it fair to say, Thomas, 01:09:18.150 --> 01:09:20.470 this is aspirational to a degree. 01:09:20.470 --> 01:09:23.630 Okay, we are gonna shoot for these hard deadlines. 01:09:23.630 --> 01:09:26.393 Yes, some of them are driven by- 01:09:26.393 --> 01:09:27.827 A statutory deadline. Statutory deadlines. 01:09:27.827 --> 01:09:31.060 And so that's what drives a lot of this, but yes. 01:09:31.060 --> 01:09:33.030 And Connie looking at her policy divisions 01:09:33.030 --> 01:09:34.560 kind of resource allocation. 01:09:34.560 --> 01:09:36.500 We'll be getting new resources in September 01:09:36.500 --> 01:09:38.470 from the budget and the bills that passed, 01:09:38.470 --> 01:09:40.360 but basically doing a resource allocation 01:09:40.360 --> 01:09:41.780 to drive a lot of this. But at least 01:09:41.780 --> 01:09:42.703 we have targets. Yes. 01:09:42.703 --> 01:09:44.653 That the Commission can drive toward. 01:09:47.160 --> 01:09:47.993 Thoughts? 01:09:49.010 --> 01:09:50.610 Thank you, Thomas, and to the Commission staff 01:09:50.610 --> 01:09:52.430 for putting together this roadmap. 01:09:52.430 --> 01:09:55.070 As Will said, it's quite a bit of work 01:09:55.070 --> 01:09:57.350 just to get all this on paper. 01:09:57.350 --> 01:09:58.770 And I think the transparency 01:09:58.770 --> 01:10:01.568 to the public is certainly good. 01:10:01.568 --> 01:10:05.320 And so I recognize some of these projects 01:10:05.320 --> 01:10:08.640 are sort of aspirational or what we're expecting, 01:10:08.640 --> 01:10:11.120 and some of them are driven by statutory deadline. 01:10:11.120 --> 01:10:14.590 And I think it's helpful to have a visual display of it. 01:10:14.590 --> 01:10:19.030 And I don't have any real specific feedback 01:10:20.040 --> 01:10:22.033 on moving things around right now. 01:10:23.050 --> 01:10:25.160 My feedback was more in general 01:10:25.160 --> 01:10:28.680 with sort of the items in the Governor's letter. 01:10:28.680 --> 01:10:31.034 But as we move forward, I think, 01:10:31.034 --> 01:10:33.780 be happy to discuss with you all, 01:10:33.780 --> 01:10:37.573 if there's any reprioritization of those projects. 01:10:39.143 --> 01:10:43.073 Absolutely, I think this works for me as a starting point. 01:10:43.980 --> 01:10:48.500 Not only it's as aspirational as it's been well articulated, 01:10:48.500 --> 01:10:53.500 but this is all not only, this is a complex effort. 01:10:54.250 --> 01:10:56.170 Not only substantial in terms of workload, 01:10:56.170 --> 01:10:57.920 but this is a complex effort. 01:10:57.920 --> 01:11:01.730 And as we move through this, obstacles will be encountered, 01:11:01.730 --> 01:11:06.210 but also opportunities to find 01:11:07.230 --> 01:11:10.050 synergistic possibilities between these efforts. 01:11:10.050 --> 01:11:12.750 None of these, they're all, 01:11:12.750 --> 01:11:16.830 many of these initiatives that are intertwined. 01:11:16.830 --> 01:11:19.230 And so I know staff has already, I know, Connie, 01:11:19.230 --> 01:11:20.810 you and your team have already identified 01:11:20.810 --> 01:11:23.980 some areas where efficiencies can be achieved. 01:11:23.980 --> 01:11:27.850 And so we will address the obstacles as they come up 01:11:27.850 --> 01:11:31.570 and we'll take advantage of the efficiencies where we can, 01:11:31.570 --> 01:11:36.570 and provide updated versions of this throughout the process. 01:11:37.000 --> 01:11:37.833 Yes, sir. 01:11:37.833 --> 01:11:38.997 And I would just echo- To the public. 01:11:38.997 --> 01:11:40.800 Sorry, yes, sir. 01:11:40.800 --> 01:11:42.780 Connie and her team put a lot of effort into this, 01:11:42.780 --> 01:11:44.313 particularly David Smeltzer. 01:11:45.189 --> 01:11:48.280 And I appreciate all the work that was put into this. 01:11:48.280 --> 01:11:50.930 We'll also be working on a communications plan 01:11:50.930 --> 01:11:52.080 with the legislature to make sure 01:11:52.080 --> 01:11:54.210 that they're informed of kind of our progress 01:11:54.210 --> 01:11:55.860 going through all these projects. 01:11:57.850 --> 01:12:00.693 Yeah, yes, thank you, Connie and David. 01:12:01.890 --> 01:12:04.190 But yes, appreciate it. 01:12:04.190 --> 01:12:05.630 And then the last item I have 01:12:05.630 --> 01:12:07.680 is something that Mr. Brannon touched on. 01:12:08.530 --> 01:12:10.930 We'll continue to work on how to ensure 01:12:10.930 --> 01:12:14.520 compliance with all of 4150, 01:12:14.520 --> 01:12:17.640 the William Thomas Heath Power Line Safety Act. 01:12:17.640 --> 01:12:19.002 One thing we are doing, 01:12:19.002 --> 01:12:21.130 the latest round of reports 01:12:21.130 --> 01:12:23.760 on power line safety came in in May. 01:12:23.760 --> 01:12:25.210 Barksdale has reviewed them. 01:12:25.210 --> 01:12:26.200 He's written me a memo. 01:12:26.200 --> 01:12:28.410 I'm gonna go through that memo. 01:12:28.410 --> 01:12:29.610 And then we'll devise a plan 01:12:29.610 --> 01:12:32.270 and present it to you all for ensuring compliance 01:12:32.270 --> 01:12:34.980 after the reports that were filed in 2020, I believe. 01:12:34.980 --> 01:12:37.440 I sent out upwards of a hundred letters 01:12:37.440 --> 01:12:40.160 for reports that were non-compliant with the statute. 01:12:40.160 --> 01:12:43.840 And I believe all of those, I believe came into compliance. 01:12:43.840 --> 01:12:45.570 We'll do the same, and if we have any issues 01:12:45.570 --> 01:12:49.350 with repeat compliance offenders, 01:12:49.350 --> 01:12:51.850 we'll come up with a plan to address those issues. 01:12:53.460 --> 01:12:54.740 Thank you, Thomas. 01:12:54.740 --> 01:12:59.410 I know I took a few notes today from your comments 01:12:59.410 --> 01:13:01.750 on things I hadn't thought about before that were, 01:13:01.750 --> 01:13:04.970 I look forward to meeting one-on-one I think next week. 01:13:04.970 --> 01:13:07.890 So we'll continue to move forward. 01:13:07.890 --> 01:13:08.723 Yes, sir. 01:13:10.553 --> 01:13:12.802 That's all I have this morning. 01:13:12.802 --> 01:13:14.230 All right. 01:13:14.230 --> 01:13:15.063 Anything else? 01:13:15.063 --> 01:13:16.863 Questions on agency operations? 01:13:18.370 --> 01:13:19.203 Oh, you know what? 01:13:19.203 --> 01:13:20.993 I did forget one thing, e-filing. 01:13:20.993 --> 01:13:22.373 Please. Yes, I know. 01:13:24.520 --> 01:13:27.620 So our e-filing project is live now. 01:13:27.620 --> 01:13:31.480 So folks who e-file, all they have to do is file it. 01:13:31.480 --> 01:13:34.630 And there's no secondary process. 01:13:34.630 --> 01:13:38.420 It should be streamlined and easy for everyone. 01:13:38.420 --> 01:13:42.260 We'll be addressing policies around 100% 01:13:42.260 --> 01:13:44.563 e-filing unit in a rule at a later date, 01:13:45.700 --> 01:13:47.030 but hopefully, this will make it easier 01:13:47.030 --> 01:13:49.520 for all parties involved to get the information 01:13:49.520 --> 01:13:52.480 to you all and to staff that they need through filings. 01:13:52.480 --> 01:13:56.420 The one outstanding issue is around confidential filings. 01:13:56.420 --> 01:13:58.110 We're in the process of getting that done, 01:13:58.110 --> 01:14:01.340 so confidential filings will still need to be done 01:14:01.340 --> 01:14:03.560 in hard copy, but we're working on that. 01:14:03.560 --> 01:14:05.460 And the goal is in pretty short order 01:14:05.460 --> 01:14:09.023 to have confidential filings also 100% online. 01:14:10.130 --> 01:14:11.570 Big step, and excited to have it. 01:14:11.570 --> 01:14:13.893 Sir, we are moving into the 21st century. 01:14:14.810 --> 01:14:15.690 As a matter of fact, 01:14:15.690 --> 01:14:18.410 the chairman was one of our first e-filing customers 01:14:18.410 --> 01:14:20.660 with his memo for the open meeting. 01:14:20.660 --> 01:14:22.180 Only fitting, only fitting. 01:14:22.180 --> 01:14:24.705 Thank you for your leadership on this issue, Chairman. 01:14:24.705 --> 01:14:28.400 (audience laughing) 01:14:28.400 --> 01:14:29.233 That is it. 01:14:30.820 --> 01:14:33.190 Good, good. 01:14:33.190 --> 01:14:37.070 Any other questions or comments on (indistinct) activities? 01:14:37.070 --> 01:14:38.020 No, thank you. 01:14:38.020 --> 01:14:38.853 All right. 01:14:40.240 --> 01:14:42.870 This will take us to the two, 01:14:42.870 --> 01:14:45.023 I guess, the broader look ahead. 01:14:46.100 --> 01:14:51.100 I've issued a memo related to the roadmap ahead 01:14:52.390 --> 01:14:54.830 to the work sessions that we have. 01:14:54.830 --> 01:14:58.310 We've done several since we've got here. 01:14:59.730 --> 01:15:03.560 We all got here pretty quick, but we've started them. 01:15:03.560 --> 01:15:05.340 You've participated in at least one. 01:15:05.340 --> 01:15:06.800 Yes. 01:15:06.800 --> 01:15:10.498 And those were, 01:15:10.498 --> 01:15:14.940 we didn't let the lack of a plan prevent action. 01:15:14.940 --> 01:15:19.900 So we started them off without, let's say, roadmap. 01:15:19.900 --> 01:15:22.540 So my memo basically files out a proposed 01:15:24.180 --> 01:15:26.080 path forward schedule of work sessions 01:15:26.950 --> 01:15:30.010 from now through the end of the year with associated topics, 01:15:30.010 --> 01:15:35.010 and also lays out a framework for the general public 01:15:35.210 --> 01:15:39.190 to submit comments, brief scoping comments, 01:15:39.190 --> 01:15:40.460 I think three weeks in advance 01:15:40.460 --> 01:15:44.030 of each work session related to relevant topic. 01:15:44.030 --> 01:15:44.863 And of course from there, 01:15:44.863 --> 01:15:47.353 the Commission will invite outside, 01:15:48.230 --> 01:15:52.490 or invite testimony as it sees fit 01:15:52.490 --> 01:15:53.803 for that particular topic. 01:15:54.660 --> 01:15:56.840 I do wanna remind both the general public 01:15:56.840 --> 01:16:00.210 and market participants and staff that these work sessions, 01:16:00.210 --> 01:16:04.110 especially at the beginning, are designed to be informative, 01:16:04.110 --> 01:16:05.760 and I think it's designated. 01:16:05.760 --> 01:16:09.560 This is not meant to be extra work for staff. 01:16:09.560 --> 01:16:10.543 We emphasize that. 01:16:11.850 --> 01:16:14.700 And this is very much designed, 01:16:14.700 --> 01:16:16.040 and they have been from the beginning, 01:16:16.040 --> 01:16:19.260 designed to be educational 01:16:19.260 --> 01:16:22.730 from outside parties sending us information, 01:16:22.730 --> 01:16:25.950 helping us learn more about things, 01:16:25.950 --> 01:16:27.460 and make us aware of things that we aren't 01:16:27.460 --> 01:16:30.170 necessarily aware about on all these topics. 01:16:30.170 --> 01:16:33.030 And there's of course no monopoly on good ideas, 01:16:33.030 --> 01:16:38.030 so we want any and all good information that comes in. 01:16:38.230 --> 01:16:40.790 I think, as we move through the process, 01:16:40.790 --> 01:16:42.821 again, this is a proposed schedule, 01:16:42.821 --> 01:16:47.821 we'll get to more of a decision-making phase, 01:16:47.840 --> 01:16:50.160 which we'll probably, in the beginning, 01:16:50.160 --> 01:16:53.570 it will be outside parties giving us information, I think. 01:16:53.570 --> 01:16:56.370 And our staff's, of course, working out to digest that. 01:16:56.370 --> 01:16:58.923 As we move more towards the decision-making phase, 01:17:01.900 --> 01:17:05.100 then Commission staff will probably become more involved 01:17:05.100 --> 01:17:08.443 at that point down the road, down the road, down the road. 01:17:11.120 --> 01:17:12.900 Then of course we've got some tight deadlines, 01:17:12.900 --> 01:17:14.490 so I'll stop there. 01:17:14.490 --> 01:17:16.950 Oh, again, this is a proposed agenda. 01:17:16.950 --> 01:17:21.680 I would also invite or ask you all to let me know 01:17:21.680 --> 01:17:24.330 if there are particular topics of interest on here 01:17:24.330 --> 01:17:26.330 that y'all would like to take a lead on. 01:17:27.260 --> 01:17:29.510 I know, I think obviously, 01:17:29.510 --> 01:17:32.210 the market design is such a mammoth topic. 01:17:32.210 --> 01:17:34.980 We probably, we need all hands on deck. 01:17:34.980 --> 01:17:37.423 So I think we'll all be deeply involved in that. 01:17:39.170 --> 01:17:41.140 So if there's a particular topic within that 01:17:41.140 --> 01:17:43.840 or other topics you'd like to take a lead on, 01:17:43.840 --> 01:17:45.766 feel free to digest it, 01:17:45.766 --> 01:17:49.760 and we can discuss it our next meeting. 01:17:53.610 --> 01:17:55.210 That being said, I'll stop there. 01:17:55.210 --> 01:17:57.537 I know there's a timeline associated with this, 01:17:57.537 --> 01:17:59.960 and I know you're very focused on timing, 01:17:59.960 --> 01:18:03.050 so I'll turn it over to you to speak to your memo. 01:18:03.050 --> 01:18:04.493 Yes, thank you, Chairman Lake. 01:18:04.493 --> 01:18:06.500 And really the purpose of my memo, 01:18:06.500 --> 01:18:10.553 and it's sort of an overlay maybe with your work sessions, 01:18:11.404 --> 01:18:15.550 was to have a conversation with you and Commissioner McAdams 01:18:15.550 --> 01:18:19.810 on how we can best respond to the Governor's directives 01:18:21.880 --> 01:18:23.660 in a timely manner, but in a way 01:18:23.660 --> 01:18:25.810 that we can get all the information we need 01:18:26.890 --> 01:18:29.270 to make a robust, informed decision. 01:18:29.270 --> 01:18:34.270 And so really, my memo is targeted towards each directive, 01:18:34.710 --> 01:18:38.720 and how we can best meet that directive in a timely manner 01:18:38.720 --> 01:18:41.480 and offer some procedural steps to consider 01:18:41.480 --> 01:18:44.133 with you both on how we can get there. 01:18:45.390 --> 01:18:47.150 The first directive relating 01:18:47.150 --> 01:18:49.600 to streamlining ERCOT market incentives, 01:18:49.600 --> 01:18:52.040 I recognize that there's some overlay 01:18:52.040 --> 01:18:53.860 with senate bill three, 01:18:53.860 --> 01:18:57.730 and even with your work session plan going forward. 01:18:57.730 --> 01:19:02.730 And so what I was envisioning is I was talking 01:19:02.740 --> 01:19:05.810 about going ahead and directing staff 01:19:05.810 --> 01:19:09.570 to open what I would call a policy project, 01:19:09.570 --> 01:19:14.570 where we can have a robust discussion, 01:19:15.630 --> 01:19:20.330 or rather, it would be sort of a repository to address 01:19:20.330 --> 01:19:23.220 all of these market incentives that I've laid out, 01:19:23.220 --> 01:19:25.230 just some general categories like the ORDC 01:19:25.230 --> 01:19:28.220 and ancillary service markets 01:19:28.220 --> 01:19:32.580 and other reliability services and price incentives. 01:19:32.580 --> 01:19:35.820 So really, the project, which would not be a rulemaking, 01:19:35.820 --> 01:19:39.280 it would be a policy project, would be a forum for us 01:19:39.280 --> 01:19:43.306 to solicit comments from stakeholders 01:19:43.306 --> 01:19:47.570 to help us move forward with taking action 01:19:47.570 --> 01:19:50.770 on some of these items that I believe 01:19:50.770 --> 01:19:54.050 could present opportunities to take some efficient action. 01:19:54.050 --> 01:19:59.050 So for example, or I should add is that, 01:20:02.050 --> 01:20:04.400 I recognize that we have 01:20:04.400 --> 01:20:06.550 a lot on our plate with this roadmap, 01:20:06.550 --> 01:20:09.010 and our Commission staff needs a way 01:20:09.010 --> 01:20:10.630 to sort of balance all this out, 01:20:10.630 --> 01:20:15.130 so my proposal would be to open the policy project, 01:20:15.130 --> 01:20:18.500 solicit comments from stakeholders 01:20:18.500 --> 01:20:21.430 on very specific questions with a page limit 01:20:21.430 --> 01:20:24.310 so that we can get the information we need 01:20:24.310 --> 01:20:27.510 and also make an efficient, 01:20:27.510 --> 01:20:29.400 timely decision on some of these matters. 01:20:29.400 --> 01:20:33.370 So I will pause there on this incentive, 01:20:33.370 --> 01:20:36.706 or this directive rather, and get your thoughts 01:20:36.706 --> 01:20:41.490 on how you believe would be best to move forward. 01:20:42.930 --> 01:20:45.000 Well, soliciting comments on particular items 01:20:45.000 --> 01:20:46.943 sounds almost exactly like scoping, 01:20:48.910 --> 01:20:51.730 sounds very similar to scoping comments 01:20:51.730 --> 01:20:56.730 on topic by topic on work session agenda items, 01:20:57.010 --> 01:21:00.400 so I think that intersects nicely. 01:21:00.400 --> 01:21:03.933 The open question my mind is in functionally, 01:21:06.020 --> 01:21:09.900 it seems like it would almost operationally, functionally, 01:21:09.900 --> 01:21:12.380 what would the be the best, I guess, 01:21:12.380 --> 01:21:16.073 document management or, certainly, 01:21:17.890 --> 01:21:22.830 we don't want to cover the, 01:21:22.830 --> 01:21:26.180 we don't wanna reinvent the wheel. 01:21:26.180 --> 01:21:27.540 So what is the most efficient way 01:21:27.540 --> 01:21:31.757 to collect this data and information, 01:21:33.947 --> 01:21:35.853 ideas we may not know about yet? 01:21:36.690 --> 01:21:38.498 So I'll defer to staff, 01:21:38.498 --> 01:21:41.310 and what projects we already have open, I don't know. 01:21:41.310 --> 01:21:43.833 And if I could add before we defer is, 01:21:44.740 --> 01:21:48.580 how I arrived at this proposed procedural path forward 01:21:48.580 --> 01:21:50.690 is just based on my prior experience. 01:21:50.690 --> 01:21:52.390 Typically, the Commission has historically, 01:21:52.390 --> 01:21:54.047 when they wanna address a policy issue, 01:21:54.047 --> 01:21:56.560 and it's not necessarily, 01:21:56.560 --> 01:21:57.610 they haven't made a determination 01:21:57.610 --> 01:21:59.780 that a role needs to be amended or created, 01:21:59.780 --> 01:22:01.170 they'll open a policy project, 01:22:01.170 --> 01:22:03.080 and that policy project will serve 01:22:03.080 --> 01:22:06.120 as a repository for information, 01:22:06.120 --> 01:22:09.180 for which the Commission can take action, 01:22:09.180 --> 01:22:11.100 like issue a directive to ERCOT. 01:22:11.100 --> 01:22:12.350 But if the Commission determines 01:22:12.350 --> 01:22:14.210 that a rule needs to be amended, 01:22:14.210 --> 01:22:17.160 then the Commission can open a separate rulemaking project. 01:22:18.770 --> 01:22:21.150 And so that's the way I envisioned, 01:22:21.150 --> 01:22:23.430 or that's why I recommended a policy project. 01:22:23.430 --> 01:22:28.430 I recognize and do see that some of these items 01:22:29.670 --> 01:22:32.570 overlay with like your market design workshop in August. 01:22:32.570 --> 01:22:33.610 And so that's what I was thinking, well, 01:22:33.610 --> 01:22:37.130 we start evaluating some of these issues, 01:22:37.130 --> 01:22:38.883 like for instance, ORDC. 01:22:40.150 --> 01:22:42.880 We can direct staff to open a project today 01:22:42.880 --> 01:22:46.390 and then work over the next couple of weeks 01:22:46.390 --> 01:22:48.220 to come up together with questions 01:22:48.220 --> 01:22:49.880 that we can have staff put out. 01:22:49.880 --> 01:22:51.620 And then we can get this information, 01:22:51.620 --> 01:22:53.450 and then that could fit nicely 01:22:53.450 --> 01:22:56.363 with this August 26th work session. 01:22:57.530 --> 01:22:59.960 So we'll tweak it, get panelists to appear, 01:22:59.960 --> 01:23:02.030 and then also have additional information 01:23:04.110 --> 01:23:08.810 from which we can then evaluate what and when 01:23:08.810 --> 01:23:10.840 to take action on some of these directives. 01:23:10.840 --> 01:23:14.360 So I think there could be a way 01:23:14.360 --> 01:23:19.260 to definitely complement your path forward. 01:23:19.260 --> 01:23:23.980 I see it as complimentary in terms of moving forward, 01:23:23.980 --> 01:23:25.840 at least on the ORDC piece. 01:23:25.840 --> 01:23:27.440 I think they work well together. 01:23:28.360 --> 01:23:33.290 Do you wanna be very cautious about burden on staff? 01:23:33.290 --> 01:23:38.290 They've got a full load, so I wanna be mindful of that. 01:23:39.740 --> 01:23:41.710 These work sessions need to be our offices 01:23:41.710 --> 01:23:44.280 and outside parties gathering information, 01:23:44.280 --> 01:23:47.890 doesn't need to be staff being burdened with extra work. 01:23:47.890 --> 01:23:49.230 Will, any thoughts? 01:23:49.230 --> 01:23:51.333 Yeah, it's organizational. 01:23:52.350 --> 01:23:55.070 Lori, you sat through all his work sessions 01:23:55.070 --> 01:23:57.350 on ORDC when it was crafted too, 01:23:57.350 --> 01:23:59.730 and that was kind of that hypothetical for a long time. 01:23:59.730 --> 01:24:03.948 Is that how they did that, how it began? 01:24:03.948 --> 01:24:07.300 So back in 2011 through '13, 01:24:07.300 --> 01:24:10.514 we were sort of at the same juncture 01:24:10.514 --> 01:24:13.360 looking at how to drive investment in market. 01:24:13.360 --> 01:24:14.570 And so the Commission at the time 01:24:14.570 --> 01:24:16.100 open project number 40,000, 01:24:16.100 --> 01:24:19.500 and that project went on for two years. 01:24:19.500 --> 01:24:20.810 And that's where the Commission- 01:24:20.810 --> 01:24:22.040 I think it was longer than that. 01:24:22.040 --> 01:24:23.260 Yeah, maybe three years. 01:24:23.260 --> 01:24:25.670 Yeah, really, I'm probably understating it, 01:24:25.670 --> 01:24:27.420 but it served as a repository 01:24:27.420 --> 01:24:30.750 for variety of comments on different topics 01:24:30.750 --> 01:24:33.090 from which the Commission could take action. 01:24:33.090 --> 01:24:35.750 And so that's why I have envisioned 01:24:35.750 --> 01:24:38.187 the path forward in the same sort of process. 01:24:38.187 --> 01:24:39.760 And I definitely recognize what you're saying 01:24:39.760 --> 01:24:40.760 in terms of staff resources, 01:24:40.760 --> 01:24:45.470 but I also know that we have been directed 01:24:45.470 --> 01:24:49.032 to take action in a timely, immediate, 01:24:49.032 --> 01:24:51.720 I think that the direction has been immediate action, 01:24:51.720 --> 01:24:55.200 but I know that these are complicated issues, 01:24:55.200 --> 01:24:56.627 and we need to get information. 01:24:56.627 --> 01:24:59.990 And we need to get information in a timely manner 01:24:59.990 --> 01:25:01.680 so we can take timely action. 01:25:01.680 --> 01:25:06.680 And so we have to somehow balance this with staff resources, 01:25:08.230 --> 01:25:12.330 but also definitely address the Commission, 01:25:12.330 --> 01:25:14.890 I'm sorry, the Governor's directives in a timely manner. 01:25:14.890 --> 01:25:19.890 So we cannot not respond in a timely manner. 01:25:20.060 --> 01:25:21.500 And we somehow have to balance that 01:25:21.500 --> 01:25:22.490 with our staff resources, 01:25:22.490 --> 01:25:27.400 and that's why we need to have staff work with us 01:25:27.400 --> 01:25:28.903 on coming up with very specific questions 01:25:28.903 --> 01:25:32.120 that we tailor to get the information we need 01:25:32.120 --> 01:25:36.290 in a small amount of, in a shorter set of cards. 01:25:36.290 --> 01:25:38.990 So we have been working aggressively on it, 01:25:38.990 --> 01:25:41.693 and look forward to continuing to do that. 01:25:43.039 --> 01:25:45.690 I think it's incumbent on us 01:25:45.690 --> 01:25:48.730 to come up with those questions, not staff. 01:25:48.730 --> 01:25:50.870 We certainly welcome that input. 01:25:50.870 --> 01:25:55.870 And given that it is, yes, we don't have two years, 01:25:56.570 --> 01:25:59.340 and we don't have, and we need to move, 01:25:59.340 --> 01:26:03.940 as you said, in the most expeditious manner possible. 01:26:03.940 --> 01:26:08.330 So if it works for y'all, right now at this juncture, 01:26:08.330 --> 01:26:13.330 I think I would ask, let's ask staff to evaluate 01:26:13.890 --> 01:26:18.640 the operational, mechanical at just a high level 01:26:18.640 --> 01:26:21.460 to give us some options for the mechanical, 01:26:21.460 --> 01:26:25.840 the mechanics of how best policy project 01:26:27.350 --> 01:26:29.670 can align with an agenda. 01:26:29.670 --> 01:26:32.400 And also our three offices should look at 01:26:32.400 --> 01:26:35.130 if these are the right agenda topics. 01:26:35.130 --> 01:26:39.100 And if y'all could give us some suggestions 01:26:39.100 --> 01:26:44.100 or options on how to do the information grab 01:26:46.270 --> 01:26:49.423 or aggregation, 'cause that's important. 01:26:50.310 --> 01:26:54.587 So if y'all can put that together or just a brief list 01:26:55.690 --> 01:26:58.513 of options on how to coordinate that. 01:27:00.393 --> 01:27:02.980 Does that work for staff? 01:27:02.980 --> 01:27:04.940 That works very well. 01:27:04.940 --> 01:27:08.050 Earlier this week, Mr. Journeay and I brainstormed 01:27:08.050 --> 01:27:12.280 a little bit about the document management 01:27:12.280 --> 01:27:14.640 related to the work sessions. 01:27:14.640 --> 01:27:18.320 And I believe what we concluded, 01:27:18.320 --> 01:27:21.100 pending the Commission's concurrence 01:27:21.100 --> 01:27:26.100 is that we would collect sort of very brief recommendations 01:27:26.840 --> 01:27:29.590 from the public as to what should be addressed 01:27:29.590 --> 01:27:31.460 at each individual work session. 01:27:31.460 --> 01:27:36.200 And then as you've recommended in your proposal, Chairman, 01:27:36.200 --> 01:27:39.840 there's going to be a period 01:27:39.840 --> 01:27:42.480 of Commission discussion at each section. 01:27:42.480 --> 01:27:45.380 And that's the point at which perhaps we carve out 01:27:45.380 --> 01:27:49.840 a separate project for ideas that the Commission 01:27:49.840 --> 01:27:51.960 would like to explore further. 01:27:51.960 --> 01:27:55.110 So as a second part, 01:27:55.110 --> 01:27:58.283 after the discussion has been had at a work session, 01:27:59.389 --> 01:28:01.350 or in concurrence? 01:28:01.350 --> 01:28:06.350 Yes, so we'll have the, as you mentioned, 01:28:07.210 --> 01:28:12.210 the informative, the educational presentations, 01:28:14.200 --> 01:28:17.150 and then allow some time during the work session 01:28:17.150 --> 01:28:19.470 for y'all to have a policy discussion 01:28:19.470 --> 01:28:23.100 and perhaps reach a conclusion that we absolutely 01:28:23.100 --> 01:28:27.090 need to carve out a project on this specific issue 01:28:27.090 --> 01:28:30.853 and get some comment, questions out for that. 01:28:32.120 --> 01:28:35.800 Our process definitely allows for that. 01:28:35.800 --> 01:28:37.780 Interesting, I like that idea. 01:28:37.780 --> 01:28:39.250 How does that- 01:28:39.250 --> 01:28:41.870 Yeah, I think that could work. 01:28:41.870 --> 01:28:45.933 Again, my interest is in figuring out a way 01:28:48.370 --> 01:28:52.200 to get what we need so we can take action. 01:28:52.200 --> 01:28:54.960 'Cause it does take two to three years to build a plan. 01:28:54.960 --> 01:28:58.860 And so I wanna make sure that we come up 01:28:58.860 --> 01:29:01.200 with some path forward that's efficient 01:29:02.598 --> 01:29:04.270 and that we can build some synergies 01:29:04.270 --> 01:29:06.560 around the workshops you've proposed, 01:29:06.560 --> 01:29:11.560 but keep on a very tight vision timeline moving forward. 01:29:14.450 --> 01:29:17.070 But yes, and we could all work together 01:29:17.070 --> 01:29:18.180 in coming up with questions, 01:29:18.180 --> 01:29:20.150 and I think that's a robust situation 01:29:20.150 --> 01:29:22.040 that we're all working together. 01:29:22.040 --> 01:29:27.040 So yes, I think your idea of staff coming with a plan 01:29:28.800 --> 01:29:31.520 or options on how best to move forward would be great. 01:29:31.520 --> 01:29:32.550 I'd love to hear more. 01:29:32.550 --> 01:29:35.120 I just really was wanting to put this out there 01:29:35.120 --> 01:29:37.240 is having a discussion topic (indistinct) 01:29:37.240 --> 01:29:40.990 to really think about what would be best. 01:29:40.990 --> 01:29:44.893 And if I may elaborate, I neglected to mention that, 01:29:47.793 --> 01:29:52.793 I somehow force, I see these Commission work sessions 01:29:53.530 --> 01:29:57.600 is kind of the speedier version of the written comments 01:29:57.600 --> 01:30:02.150 that Commissioner Cobos elated to in her memo. 01:30:02.150 --> 01:30:04.290 And I guess a point of order, 01:30:04.290 --> 01:30:05.580 the Commission can issue rulings 01:30:05.580 --> 01:30:07.680 without having a project file? 01:30:07.680 --> 01:30:08.980 That's correct. Okay. 01:30:10.150 --> 01:30:14.700 So I think it's important over the next week, 01:30:15.870 --> 01:30:17.100 in between the next open meeting, 01:30:17.100 --> 01:30:19.690 that we take a look at your categories 01:30:19.690 --> 01:30:22.730 to see how it's defining the headings 01:30:22.730 --> 01:30:24.550 of those categories, obviously, 01:30:24.550 --> 01:30:26.370 to see how much falls up under them 01:30:26.370 --> 01:30:28.810 for the purposes of your workshop schedule. 01:30:28.810 --> 01:30:30.000 And I think your workshop schedule, 01:30:30.000 --> 01:30:33.363 the way kind of have it delineated, it's a good flow. 01:30:34.290 --> 01:30:37.440 And then ultimately, depending on what falls up under there, 01:30:37.440 --> 01:30:40.920 because I think ERCOT will also have significant, well, 01:30:40.920 --> 01:30:42.470 at least I would look for them to have 01:30:42.470 --> 01:30:45.163 sort of a mechanical feedback in terms of, 01:30:46.200 --> 01:30:49.050 depending on how soon we take action on things, 01:30:49.050 --> 01:30:52.440 then their implementation timelines accordingly, 01:30:52.440 --> 01:30:56.600 so that we hit things in the periods in the spring 01:30:56.600 --> 01:30:59.050 for maximum effect on forward prices 01:30:59.050 --> 01:31:01.760 and for the market to respond as well. 01:31:01.760 --> 01:31:03.590 So that's in alignment with you. 01:31:03.590 --> 01:31:07.110 So I think our next task, as you both have alluded to, 01:31:07.110 --> 01:31:10.140 is to go back, to see if the definitions 01:31:10.140 --> 01:31:12.430 of the various buckets are broad enough 01:31:12.430 --> 01:31:14.340 to encapsulate all this. 01:31:14.340 --> 01:31:16.700 And then in terms of process, 01:31:16.700 --> 01:31:20.610 receive that recommendation from staff on how best 01:31:20.610 --> 01:31:25.610 they can then conform our system for the filings, 01:31:27.430 --> 01:31:31.890 and then readjust that schedule accordingly. 01:31:31.890 --> 01:31:33.910 And I think some of that will also depend 01:31:33.910 --> 01:31:37.120 on ERCOT's work and studies, 01:31:37.120 --> 01:31:39.310 so that we can maximize the productivity 01:31:39.310 --> 01:31:40.450 of those various headings, 01:31:40.450 --> 01:31:44.780 i.e. the scarcity pricing mechanism, overall debate. 01:31:44.780 --> 01:31:45.880 And then again, 01:31:45.880 --> 01:31:49.360 how far we break those down to Commissioner Cobos, 01:31:49.360 --> 01:31:53.990 which is in line with what you would otherwise prioritize 01:31:55.770 --> 01:31:58.090 in conforming with the Governor's letter, 01:31:58.090 --> 01:32:01.480 which is seasonal assessments 01:32:01.480 --> 01:32:03.440 and what data is going into that, 01:32:03.440 --> 01:32:06.990 and does that need to move concurrent to the scarcity 01:32:06.990 --> 01:32:09.223 pricing mechanism conversation as well. 01:32:10.800 --> 01:32:13.760 Because again, that all goes into that nexus 01:32:13.760 --> 01:32:15.690 of how it impacts the forward markets 01:32:15.690 --> 01:32:18.000 and how do people hedge. 01:32:18.000 --> 01:32:22.260 So a little bit technical, I'll boil it back down. 01:32:22.260 --> 01:32:23.930 We need to make sure the headings are correct, 01:32:23.930 --> 01:32:26.650 according to what we're all wanting to focus on, 01:32:26.650 --> 01:32:29.510 then go back and get staff to provide 01:32:29.510 --> 01:32:33.450 that feedback on your system and how we can compute it all, 01:32:33.450 --> 01:32:37.700 and then finalize this process. 01:32:37.700 --> 01:32:38.760 Does that work? 01:32:38.760 --> 01:32:39.593 Yes. That makes sense. 01:32:39.593 --> 01:32:44.530 So I think to be clear, next steps are on us 01:32:44.530 --> 01:32:46.370 to look at the headings. Yes, sir. 01:32:46.370 --> 01:32:51.370 Draft headings both between now and our next open meeting. 01:32:52.560 --> 01:32:55.980 One, make sure or offer suggestions on 01:32:55.980 --> 01:32:56.980 if those are the right headings, 01:32:56.980 --> 01:32:59.833 if they need to change or change order. 01:33:00.860 --> 01:33:03.420 Two, if there's a particular topic 01:33:03.420 --> 01:33:07.260 any of you would like to take a lead on. 01:33:07.260 --> 01:33:09.700 And then in the meantime, three, 01:33:09.700 --> 01:33:12.840 staff will come back with some options on functional 01:33:12.840 --> 01:33:17.840 alignment between the faster version work sessions 01:33:18.120 --> 01:33:22.823 in the more substantial policy project initiatives, 01:33:24.000 --> 01:33:26.980 and some scenarios on how to make those sync up. 01:33:26.980 --> 01:33:28.940 Does that work for everybody? 01:33:28.940 --> 01:33:30.630 Yes. Roger that. 01:33:30.630 --> 01:33:33.330 All right, good deal. 01:33:33.330 --> 01:33:34.163 Sir, can I- 01:33:35.680 --> 01:33:38.943 Oh, man. (audience laughing) 01:33:40.550 --> 01:33:42.870 Well, it's somewhat disruptive to your schedule. 01:33:42.870 --> 01:33:46.320 I have just figured out that we didn't post 01:33:46.320 --> 01:33:48.270 for the July 22nd open meeting. 01:33:48.270 --> 01:33:52.540 So we can post a day for July 23rd and put it on Friday, 01:33:52.540 --> 01:33:55.663 but we do have that ERCOT board meeting for Friday morning. 01:34:00.380 --> 01:34:04.140 Seven full days. Yes, sir. 01:34:04.140 --> 01:34:06.090 We had it posted yesterday by midnight. 01:34:07.950 --> 01:34:09.600 I guess it'll be the 23rd then. 01:34:11.670 --> 01:34:13.822 We're living on coffee and anger. 01:34:13.822 --> 01:34:15.520 (audience laughing) 01:34:15.520 --> 01:34:20.480 We will work hard to work on our scheduling processes 01:34:20.480 --> 01:34:23.780 to not allow this to happen again. 01:34:23.780 --> 01:34:25.110 Yes, we will. 01:34:25.110 --> 01:34:26.283 And Chairman Lake, 01:34:26.283 --> 01:34:29.433 I just wanted to just kind of touch base about the last, 01:34:30.280 --> 01:34:33.050 I guess the last two, three, four directives 01:34:33.050 --> 01:34:35.917 that I addressed in my memo. 01:34:35.917 --> 01:34:39.530 And that was just recommending that ERCOT 01:34:39.530 --> 01:34:41.460 provide us with a presentation at the next open meeting 01:34:41.460 --> 01:34:43.460 on maintenance coordination improvement. 01:34:43.460 --> 01:34:44.363 Now the 23rd. 01:34:45.500 --> 01:34:49.847 Well, the 29th, the next open meeting. 01:34:50.849 --> 01:34:54.270 Okay, and you noted the transmission 01:34:55.580 --> 01:34:58.970 is already scheduled for the 22nd now, 23rd. 01:34:58.970 --> 01:35:03.970 And yes, your second point is the 29th, 01:35:04.250 --> 01:35:06.950 it would be good to have the update 01:35:06.950 --> 01:35:08.370 from ERCOT on maintenance schedule. 01:35:08.370 --> 01:35:09.443 Yes, very good idea. 01:35:10.520 --> 01:35:11.640 We had not had that plan. 01:35:11.640 --> 01:35:12.880 Does that work for you? Absolutely. 01:35:12.880 --> 01:35:15.540 All right, we will make that happen. 01:35:15.540 --> 01:35:17.160 Okay, thank you. I'm sure ERCOT will be, 01:35:17.160 --> 01:35:18.060 thank you, Christine, 01:35:18.060 --> 01:35:20.070 ERCOT will be happy to accommodate. 01:35:20.070 --> 01:35:22.023 Good catch, thank you. 01:35:26.630 --> 01:35:29.970 And as you mentioned, 01:35:29.970 --> 01:35:33.890 the ERCOT board meeting is also the 23rd. 01:35:33.890 --> 01:35:35.520 So depending on, we'll have 01:35:35.520 --> 01:35:37.130 to evaluate if that can still work. 01:35:37.130 --> 01:35:39.429 I know y'all obviously have to be 01:35:39.429 --> 01:35:40.262 at the ERCOT board meeting, 01:35:40.262 --> 01:35:42.103 and I know y'all like participating. 01:35:44.320 --> 01:35:47.563 So we'll tentatively aim for the 23rd pending. 01:35:48.880 --> 01:35:51.430 If that timing doesn't work, we'll find another. 01:35:51.430 --> 01:35:52.410 We'll go ahead and post. 01:35:52.410 --> 01:35:54.630 And then if it works, we'll be there. 01:35:54.630 --> 01:35:55.680 If it doesn't, we'll- 01:35:58.310 --> 01:36:00.210 All right. Achieve other options. 01:36:01.210 --> 01:36:02.360 We'll look at Monday. 01:36:03.720 --> 01:36:04.553 All right. 01:36:06.760 --> 01:36:08.310 I don't have anything else for, 01:36:09.190 --> 01:36:10.360 all the business we have on 21. 01:36:10.360 --> 01:36:14.020 Items 22 through 26, do y'all have anything on that? 01:36:14.020 --> 01:36:15.650 No, sir. No. 01:36:15.650 --> 01:36:18.780 All right, we do not have anything for closed session. 01:36:18.780 --> 01:36:20.580 We do have item 26, sir. 01:36:23.940 --> 01:36:24.803 Oh, I'm sorry. 01:36:25.930 --> 01:36:26.763 Sorry, Rebecca. 01:36:31.920 --> 01:36:33.120 It's an important one. 01:36:34.560 --> 01:36:36.560 Rebecca Zerwas for Commission staff. 01:36:36.560 --> 01:36:40.580 I filed a memo SB2 require the Commission 01:36:40.580 --> 01:36:43.470 to formally adopt ERCOT rules. 01:36:43.470 --> 01:36:48.210 There have been two NPRRs, NPRR 1080 and 1081, 01:36:48.210 --> 01:36:53.210 and two OBDRR, OBDRR 030 and 031 01:36:54.120 --> 01:36:58.140 that have been approved since the SB2 signing dates. 01:36:58.140 --> 01:37:00.820 So we have proposed an interim process 01:37:00.820 --> 01:37:04.460 for the Commission to approve these rule changes, 01:37:04.460 --> 01:37:05.810 and working with ERCOT 01:37:05.810 --> 01:37:07.977 on conforming to a more formal process, 01:37:07.977 --> 01:37:12.090 and we'll be opening ERCOT governance rules as well. 01:37:12.090 --> 01:37:14.230 Yes, that's an important one. 01:37:14.230 --> 01:37:16.690 I apologize for my oversight. 01:37:16.690 --> 01:37:18.350 Thank you for the memo. 01:37:18.350 --> 01:37:20.720 That works for me. 01:37:20.720 --> 01:37:22.920 Thoughts? Same. 01:37:22.920 --> 01:37:27.410 Is there, yes, is there a motion to approve the rules? 01:37:27.410 --> 01:37:29.420 To the proposed order. To the proposed order. 01:37:29.420 --> 01:37:30.870 So moved. Second. 01:37:31.720 --> 01:37:32.553 All in favor, say aye. 01:37:32.553 --> 01:37:33.570 Aye. 01:37:33.570 --> 01:37:35.440 Motion passes, thank you. 01:37:35.440 --> 01:37:36.833 Apologies again, Rebecca. 01:37:38.360 --> 01:37:42.080 All right, now we can say for sure 01:37:42.080 --> 01:37:44.180 we don't have anything for closed session. 01:37:46.180 --> 01:37:47.870 At this point, there being no further business 01:37:47.870 --> 01:37:49.870 before the Commission, this meeting 01:37:49.870 --> 01:37:51.260 of the Public Utility Commission 01:37:51.260 --> 01:37:53.120 of Texas is hereby adjourned. 01:37:53.120 --> 01:37:54.350 Thank you, all. (gavel bangs) 01:37:54.350 --> 01:37:55.963 Thank you, Mr. Chair.