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.