WEBVTT 00:00:04.440 --> 00:00:07.860 <v Lake>Morning, all thank you for being here. As we did ahead 00:00:07.870 --> 00:00:12.589 of the summer season, Brad and I are holding another 00:00:12.589 --> 00:00:15.900 press conference to provide an update on grid operations 00:00:15.900 --> 00:00:19.640 reliability and actions here at the Commission. 00:00:19.640 --> 00:00:23.719 At both ERCOT and the PUC, we are operating 00:00:23.719 --> 00:00:27.730 at lightning speed to improve operations, enhance our 00:00:27.730 --> 00:00:32.270 grid and ensure reliability for this winter. For the 00:00:32.270 --> 00:00:36.229 first time ever, we have gotten improved checks and 00:00:36.229 --> 00:00:39.810 balances to ensure a higher level of reliability than 00:00:39.810 --> 00:00:43.539 we've ever had. As we did this summer, we will continue 00:00:43.539 --> 00:00:48.060 to operate with a margin of safety and enhance reserves. 00:00:48.740 --> 00:00:52.109 In addition to having reserves available to call in 00:00:52.109 --> 00:00:54.770 response to real time conditions. In addition, will 00:00:54.770 --> 00:00:58.619 continue to operate with an abundance of caution, as 00:00:58.619 --> 00:01:02.829 we did this summer. In addition, we've made a number 00:01:02.829 --> 00:01:07.079 of changes that will both protect consumers and enhance 00:01:07.079 --> 00:01:11.510 reliability. Recently, the Commission reduced the highest 00:01:11.510 --> 00:01:15.140 price that can possibly be charged in ERCOT from the 00:01:15.140 --> 00:01:19.609 infamous $9000 a megawatt hour to $5000 a megawatt 00:01:19.609 --> 00:01:23.099 hour. Starting January 1st, those extraordinarily high 00:01:23.099 --> 00:01:28.120 prices can never be charged again. In addition, we 00:01:28.120 --> 00:01:32.450 are moving, we have already taken the action to move 00:01:32.939 --> 00:01:37.969 our largest demand response electricity conservation 00:01:37.969 --> 00:01:43.900 program to earlier stages of our emergency conditions, 00:01:44.329 --> 00:01:48.060 the bottom line being that for the first time ever 00:01:48.439 --> 00:01:52.370 we're going to use every possible electron before we 00:01:52.370 --> 00:01:55.510 start asking Texans to turn down their homes and businesses. 00:01:56.939 --> 00:01:59.010 We've got more generators in ERCOT than we've ever 00:01:59.010 --> 00:02:03.920 had before. And importantly, in conjunction with the 00:02:03.920 --> 00:02:08.289 Railroad Commission, we passed a rule that designates 00:02:08.300 --> 00:02:12.550 critical natural gas infrastructure so that we know 00:02:12.550 --> 00:02:17.229 we will have the most important natural gas facilities 00:02:17.939 --> 00:02:20.740 across the entire natural gas supply chain flowing 00:02:20.740 --> 00:02:25.400 gas this winter. This is an unprecedented coordination 00:02:25.400 --> 00:02:27.819 between both the Public Utility Commission and the 00:02:27.819 --> 00:02:32.949 Railroad Commission and never before achieved cooperation 00:02:32.949 --> 00:02:35.930 between the natural gas industries and the power generation 00:02:35.930 --> 00:02:41.060 industries. Most importantly, for the first time ever 00:02:41.639 --> 00:02:45.860 we're requiring winterization of power plants in Texas. 00:02:47.539 --> 00:02:51.240 This rule was passed 00:02:51.240 --> 00:02:56.530 over a month ago and it will require Power plants to 00:02:56.530 --> 00:03:00.509 have been winterized by December 1, attest to ERCOT 00:03:00.509 --> 00:03:04.710 they are winterized and above and beyond that, ERCOT 00:03:04.710 --> 00:03:07.770 will be conducting inspections to confirm that our 00:03:07.770 --> 00:03:12.979 power plant fleet is winterized for this winter. ERCOT 00:03:12.979 --> 00:03:16.169 will be starting those inspections soon, and I'll let 00:03:16.169 --> 00:03:18.310 Brad address that process. 00:03:18.334 --> 00:03:21.330 <v Brad>Good. Thank you. In fact 00:03:21.330 --> 00:03:24.759 those weatherization inspections have already begun. 00:03:25.139 --> 00:03:29.060 On December 1, we received atteststations from 00:03:29.060 --> 00:03:32.750 CEOs of generators and transmission service providers 00:03:32.759 --> 00:03:37.669 throughout the industry, throughout Texas, that attested 00:03:37.669 --> 00:03:41.389 to us that they were prepared for the winter. We began 00:03:41.400 --> 00:03:45.270 on December 2 with those inspections. During this 00:03:45.270 --> 00:03:48.949 inspection cycle, between the December 2 and December 00:03:48.949 --> 00:03:53.969 29, we intend to inspect over 300 generating units 00:03:54.639 --> 00:04:00.009 and some 50, or rather, I should say, 21 transmission 00:04:00.009 --> 00:04:06.800 providers. In those inspections, we'll have 00:04:06.800 --> 00:04:11.110 them completed, as I said by the 29th, those inspections 00:04:11.110 --> 00:04:15.889 will comprise 85% of the lost megawatt hours during 00:04:15.889 --> 00:04:19.339 the storm. We are currently in the middle, as I said 00:04:19.339 --> 00:04:24.370 of the process. We have inspected over 55 generator 00:04:24.379 --> 00:04:30.129 units to date. We have also inspected two of the transmission 00:04:30.129 --> 00:04:36.069 service providers. 00:04:36.069 --> 00:04:41.160 <v Lake>In addition to all of these efforts, we are increasing 00:04:41.639 --> 00:04:45.250 penalties for violations of those winterization standards 00:04:45.250 --> 00:04:50.189 to up to $1 million dollars per day, which an unprecedented 00:04:50.189 --> 00:04:54.060 level of penalty, and I will remind folks that that 00:04:54.060 --> 00:04:59.240 is $1 million dollars per day per incident. 00:04:59.240 --> 00:05:03.160 We're grateful for the generators who have been proactive 00:05:04.540 --> 00:05:07.740 in preparing their power plants for this winter, which 00:05:07.740 --> 00:05:12.949 is the majority of our fleet. Those who have not been 00:05:12.949 --> 00:05:18.439 proactive will be penalized swiftly and heavily. 00:05:18.439 --> 00:05:21.430 As a culmination of all of these efforts, the ERCOT 00:05:21.430 --> 00:05:26.230 grid is stronger and more reliable than ever. We go 00:05:26.230 --> 00:05:30.149 into this winter knowing that because of all these 00:05:30.149 --> 00:05:34.050 efforts, the lights will stay on. No other power grid 00:05:34.639 --> 00:05:39.399 has made as remarkable changes and as such, an incredibly 00:05:39.399 --> 00:05:43.339 short amount of time as we have, 00:05:43.339 --> 00:05:47.060 and we will continue to improve our grid in our market. 00:05:47.740 --> 00:05:51.850 The Commission is in the midst of substantial long 00:05:51.850 --> 00:05:56.660 term market improvements to ERCOT. In conjunction 00:05:56.660 --> 00:05:59.899 with the Railroad Commission, we will continue mapping 00:05:59.899 --> 00:06:03.689 more granularly the natural grass critical 00:06:03.689 --> 00:06:07.139 infrastructure across the state, 00:06:07.139 --> 00:06:12.040 and importantly, in conjunction with TDEM and under 00:06:12.040 --> 00:06:16.430 the leadership of Chief Kidd, the Texas Energy Reliability 00:06:16.430 --> 00:06:21.829 Council is up and running to enhance communication 00:06:21.829 --> 00:06:26.170 and planning between state agencies, the electric industry 00:06:26.180 --> 00:06:29.569 and the natural gas industry. And for the first time 00:06:29.579 --> 00:06:34.269 ever in the event of an emergency, representatives 00:06:34.379 --> 00:06:37.790 from ERCOT, the PUC, the Railroad Commission, Texas 00:06:37.790 --> 00:06:42.290 Department of Transportation, and TCEQ will be shoulder 00:06:42.290 --> 00:06:45.670 to shoulder in our state operations center to ensure 00:06:45.670 --> 00:06:48.379 that those agencies and those industries have a central 00:06:48.379 --> 00:06:52.170 point of communication to provide the best possible 00:06:52.170 --> 00:06:55.550 services to Texans. That has never happened before 00:06:55.560 --> 00:06:58.029 and, as you can imagine, is a dramatic improvement 00:06:58.040 --> 00:07:00.550 in our emergency response and management capabilities. 00:07:02.439 --> 00:07:07.550 Texans should know that they have the best grid that this 00:07:07.550 --> 00:07:11.439 state has ever had going into this winter. 00:07:11.439 --> 00:07:15.779 They deserve to keep their lights on, and we will continue 00:07:15.779 --> 00:07:18.959 working to ensure that happens. Happy to take some 00:07:18.959 --> 00:07:21.339 questions. 00:07:21.339 --> 00:07:26.850 <v 1>Chairman. A lot of critics up to the point of this new rule (indistinct) 00:07:27.240 --> 00:07:30.709 have likened the situation to having a brand new 00:07:30.720 --> 00:07:35.610 beautiful heavy duty pickup truck with no gas in it or 00:07:35.620 --> 00:07:40.810 no diesel to make it go. Are we gonna be able 00:07:40.810 --> 00:07:42.482 to start this engine? 00:07:42.506 --> 00:07:44.899 <v Lake>Absolutely. The new rule from 00:07:44.899 --> 00:07:48.439 the Railroad Commission 00:07:48.439 --> 00:07:53.000 removes any opt out ability for the most large volume 00:07:53.000 --> 00:07:55.589 important pieces of natural gas supply chain from the 00:07:55.589 --> 00:07:59.980 wellhead to pipelines to processing plants. And those 00:07:59.980 --> 00:08:03.509 facilities represent over 80% of daily production natural 00:08:03.509 --> 00:08:04.985 gas in this state. 00:08:05.009 --> 00:08:07.325 <v 1>I was gonna say, percentage-wise, worst 00:08:07.337 --> 00:08:09.459 case scenario, we have another February. 00:08:09.939 --> 00:08:12.800 What's protected? Will we have a need for, 00:08:12.810 --> 00:08:15.230 will that be enough to keep the grid running or will 00:08:15.230 --> 00:08:17.483 we have to start rolling blackouts under this scenario? 00:08:17.507 --> 00:08:18.250 <v Lake>Our power plant 00:08:18.250 --> 00:08:22.209 fleet doesn't use nearly 80% of daily production on 00:08:22.209 --> 00:08:24.379 a daily basis. Of course, it goes up and down, but 00:08:24.379 --> 00:08:26.574 it's nowhere close to 80% 00:08:26.598 --> 00:08:27.709 <v 1>Today, can you say there 00:08:27.709 --> 00:08:29.509 will not be a repeat of February? 00:08:29.533 --> 00:08:31.430 <v Lake>The lights are going 00:08:31.430 --> 00:08:34.570 to stay on this winter. We have the combination 00:08:34.570 --> 00:08:36.870 of all of these efforts, any one of these efforts would 00:08:36.870 --> 00:08:41.299 be on its own extraordinary. The combination of all 00:08:41.299 --> 00:08:43.960 of these reforms, these new rules, these new operating 00:08:44.639 --> 00:08:48.919 protocols are unprecedented not only in ERCOT, but 00:08:48.929 --> 00:08:50.930 any other grid in America. 00:08:50.954 --> 00:08:52.490 <v 1>(indistinct)--these 00:08:52.500 --> 00:08:55.019 inspections that have already started, describe to 00:08:55.019 --> 00:08:58.909 us, A) will you allow media to go along with you 00:08:58.919 --> 00:09:01.929 on some of these inspections, and 2) can you describe 00:09:01.940 --> 00:09:04.966 what are you doing? What are you looking for? 00:09:04.990 --> 00:09:05.990 <v Brad>So the 00:09:05.990 --> 00:09:09.600 weatherization is a process of determining whether 00:09:09.600 --> 00:09:14.440 they put the right equipment in place to protect sensitive 00:09:14.440 --> 00:09:18.590 equipment or processes within their facilities. 00:09:18.600 --> 00:09:23.960 We have started a group within ERCOT 00:09:24.840 --> 00:09:28.700 to show that we have the right emphasis on weatherization. 00:09:28.710 --> 00:09:32.080 We've appointed an individual who was vice president 00:09:32.080 --> 00:09:34.669 over grid operations and planning. Now we have started 00:09:34.679 --> 00:09:38.799 a group called Planning and Weatherization to 00:09:38.799 --> 00:09:42.370 put the focus on weatherization. And we've hired in 00:09:42.379 --> 00:09:45.639 to that group about a dozen individuals to perform 00:09:45.639 --> 00:09:48.049 these inspections and to plan them throughout the year 00:09:48.049 --> 00:09:53.559 and to set standards in place. Those 12 individuals 00:09:54.340 --> 00:10:00.149 also have brought in to large firms, contracting firms 00:10:00.159 --> 00:10:03.429 that have specific experience on weatherization of 00:10:03.429 --> 00:10:05.690 power plants. How it should be done, what are the right 00:10:05.690 --> 00:10:09.399 processes and the best practices? So as we go into 00:10:09.399 --> 00:10:12.100 these power plants, what would be looking for is, for 00:10:12.100 --> 00:10:17.279 example, have they put wind breaks around the 00:10:17.279 --> 00:10:20.820 right facilities to make sure that a wind chill doesn't 00:10:20.830 --> 00:10:24.419 cause some problems with equipment. Have they put thermal 00:10:24.419 --> 00:10:27.769 blankets on the right types of equipment to make sure 00:10:27.769 --> 00:10:30.360 those thermal blankets keep those facilities warm? 00:10:30.639 --> 00:10:35.230 Have they appropriately set heat tracing in place so 00:10:35.230 --> 00:10:38.700 that pipes don't freeze up during cold weather? They 00:10:38.700 --> 00:10:41.470 will be inspecting that type of equipment with the 00:10:41.470 --> 00:10:44.919 knowledge they have and the experience they have on 00:10:44.919 --> 00:10:48.460 these facilities. So far, our experience has been good. 00:10:48.840 --> 00:10:52.129 At each of the facilities, there's been a lot of cooperation 00:10:52.129 --> 00:10:56.149 by the generating companies. They have been very assistive 00:10:56.149 --> 00:10:58.730 to us. They've made sure that they walked through the 00:10:58.730 --> 00:11:02.259 processes and been able to show us each of the things 00:11:02.259 --> 00:11:06.049 that we wanted to see. In areas where we have found 00:11:06.049 --> 00:11:09.309 problems that need to be addressed, they've been very 00:11:09.309 --> 00:11:12.330 cooperative in quickly addressing those issues. So 00:11:12.330 --> 00:11:16.549 I feel very good so far about the inspections that 00:11:16.549 --> 00:11:19.090 have been done as well as cooperation we've received 00:11:19.090 --> 00:11:22.159 out of both the generation and the transmission companies. 00:11:22.169 --> 00:11:28.470 No red flags. We have done. As I said, about 55 of the 00:11:28.470 --> 00:11:31.190 inspections on the generation side to date. Remember 00:11:31.190 --> 00:11:34.309 we started on December 2. So in that time we've done 00:11:34.309 --> 00:11:38.940 roughly 55 of those. We've started on December 7 00:11:38.950 --> 00:11:41.690 with the transmission companies and we've done two 00:11:41.690 --> 00:11:44.840 of those transmission companies. 00:11:44.840 --> 00:11:46.540 <v 2>Chairman, you said, and the governer 00:11:46.552 --> 00:11:48.100 said, that the lights will stay on and 00:11:48.100 --> 00:11:50.779 that you guarantee it. This goes against the ERCOT 00:11:50.779 --> 00:11:55.700 report. So where's the disconnect and is the ERCOT report false? 00:11:56.139 --> 00:11:57.542 <v Lake>Sorry, which ERCOT report? 00:11:57.566 --> 00:11:58.840 <v 2>The latest one that projects 00:11:58.850 --> 00:12:01.205 the, this winter preparedness. 00:12:01.229 --> 00:12:03.269 <v Lake>The Sarah report, I think 00:12:03.269 --> 00:12:05.149 is what you're referencing. So there's a big difference 00:12:05.149 --> 00:12:10.759 between the Sarah report and an operational prognosis. 00:12:10.759 --> 00:12:14.429 The Sarah Report is a scenario analysis that evaluates 00:12:14.429 --> 00:12:18.879 a wide range of possibilities. And that is just a simple 00:12:18.879 --> 00:12:22.850 arithmetic of what kind of discount factor goes here 00:12:22.850 --> 00:12:27.080 and in what kind of scenario. It does not incorporate 00:12:27.090 --> 00:12:29.960 all of the extraordinary measures I've outlined today. 00:12:30.539 --> 00:12:34.149 That's a report that's been part of ERCOT for 00:12:34.149 --> 00:12:37.419 a long time, and that's something that we will continue 00:12:37.419 --> 00:12:40.250 to look at to improve the precision and granularity 00:12:40.250 --> 00:12:43.580 of that report, but it's a scenario analysis 00:12:43.580 --> 00:12:47.190 not a prediction tool, and it doesn't incorporate 00:12:47.200 --> 00:12:48.781 these extraordinary measures. 00:12:48.805 --> 00:12:51.649 <v 2>(indistinct) saying the scenario analysis is false? 00:12:51.659 --> 00:12:54.970 <v Lake>It's excellent for scenario analysis. It's not a promise 00:12:54.970 --> 00:12:59.000 of an outcome. So there's are lots of scenarios 00:12:59.000 --> 00:13:02.610 in there, by example, that show vast reserve of extra 00:13:02.610 --> 00:13:06.960 power, right? There's some that show, there's a scenario 00:13:06.960 --> 00:13:10.070 where it could be low power and tight grid conditions. 00:13:10.080 --> 00:13:12.720 It's just like any other scenario. There's 00:13:12.720 --> 00:13:18.049 there's multiple possible outcomes. When we look at 00:13:18.059 --> 00:13:21.860 all of the efforts we've made, the assets we have in 00:13:21.860 --> 00:13:26.740 ERCOT now, and I mean, it's hard to understate 00:13:26.740 --> 00:13:30.269 how much reform we have implemented in such a short 00:13:30.269 --> 00:13:33.000 amount of time. But when you look at all of that and 00:13:33.000 --> 00:13:34.879 we look at the realities on the ground in front of 00:13:34.879 --> 00:13:39.240 us, yes, we can say the lights are gonna stay on. 00:13:39.240 --> 00:13:42.279 <v 2>How many generators have submitted their weatherization 00:13:42.279 --> 00:13:45.480 plans? Do you know how many more are going to and how 00:13:45.480 --> 00:13:47.440 are you keeping track of which ones are submitting 00:13:47.440 --> 00:13:50.759 them and when they're going to that timeline? 00:13:52.039 --> 00:13:55.649 <v Brad>So those Operation plans came in with their attestations 00:13:55.649 --> 00:13:58.860 and we received atteststations on December 1. 00:13:58.860 --> 00:14:03.909 We expected to receive about 855 attestations 00:14:03.909 --> 00:14:08.000 We've received about 97% of those on time 00:14:08.009 --> 00:14:11.220 If you were still remaining to be dealt with that 97% 00:14:11.220 --> 00:14:15.200 of those generation atteststations came on time. Also 00:14:15.200 --> 00:14:18.460 these atteststations are coming from the CEOs of these 00:14:18.460 --> 00:14:21.960 companies. We wanted to make sure that we had the highest 00:14:21.960 --> 00:14:26.110 level executive engaged in actually signing on the 00:14:26.110 --> 00:14:29.629 dotted line that their generation was ready and prepared 00:14:29.629 --> 00:14:33.240 for this winter. Of the transmission companies, roughly, 00:14:33.240 --> 00:14:36.639 I believe about 54 transmission companies we expected 00:14:36.639 --> 00:14:40.679 to receive attestation from. We have received 100% 00:14:40.690 --> 00:14:41.808 of those. 00:14:41.832 --> 00:14:45.210 <v 2>So for the 3% that didn't submit their weatherization 00:14:45.210 --> 00:14:48.039 plans yet. Are you tracking to make sure they're going 00:14:48.039 --> 00:14:48.951 to turn that in? 00:14:48.975 --> 00:14:50.870 <v 1>Yes, we've been discussing those 00:14:50.879 --> 00:14:52.715 3% with the PUC. 00:14:52.739 --> 00:14:57.000 <v 3>So just, you're saying that so far, only 00:14:57.000 --> 00:15:01.490 3%, all but 3% have submitted their weatherization plans? 00:15:01.500 --> 00:15:02.692 <v Brad>That is correct 00:15:02.716 --> 00:15:04.559 <v 4>Chairman. You mentioned that the PUC 00:15:04.559 --> 00:15:07.580 is working with the Railroad Commission to map out 00:15:07.590 --> 00:15:10.809 critical natural gas infrastructruate, but (indistinct) Media 00:15:10.809 --> 00:15:13.610 hasn't gotten any indication of what the weatherization. 00:15:13.610 --> 00:15:16.529 requirements might be for those natural gas facilities 00:15:16.539 --> 00:15:18.759 You know, like electricity providers can be weatherize 00:15:18.759 --> 00:15:21.269 all they want. But if they don't have the fuel that they 00:15:21.279 --> 00:15:23.340 need, how much does it actually matter? Do you have 00:15:23.340 --> 00:15:26.360 any knowledge of what the weatherization requirements 00:15:26.360 --> 00:15:29.955 and deadlines might be on the natural gas side? 00:15:29.979 --> 00:15:31.169 <v Lake>So I'll defer to 00:15:31.169 --> 00:15:33.299 the Railroad Commission on their rulemaking processes. 00:15:33.299 --> 00:15:37.299 I will say two things. The natural gas ecosystem is 00:15:37.299 --> 00:15:41.659 a vastly larger supply chain and ecosystem than power 00:15:41.659 --> 00:15:44.370 plants. Power plants are discrete unit, they're 00:15:44.379 --> 00:15:47.309 large very complicated units. That's a discrete 00:15:47.309 --> 00:15:51.919 unit in one location. The natural gas system incorporates 00:15:51.919 --> 00:15:55.690 thousands of miles of pipelines, hundreds of processing 00:15:55.690 --> 00:15:59.990 plants, compressor stations and thousands of producing 00:15:59.990 --> 00:16:02.899 wells. Which is why the mapping committee that's in 00:16:02.899 --> 00:16:05.460 conjunction with the Railroad Commission and the PUC 00:16:05.460 --> 00:16:08.600 is meeting, at a minimum, monthly. Their subgroups or 00:16:08.600 --> 00:16:11.360 working groups, are meeting weekly, at least weekly, 00:16:11.639 --> 00:16:16.250 and they'll be providing a public facing meeting of 00:16:16.250 --> 00:16:20.929 that mapping committee early in 2022. And so there 00:16:20.929 --> 00:16:25.200 will be an update on that in early 2022. And, 00:16:25.210 --> 00:16:29.870 like I said, the the most important part of this winter 00:16:29.870 --> 00:16:34.019 is we know that the big, biggest swath of the largest 00:16:34.019 --> 00:16:37.320 producers and conveyors and natural gas are designated 00:16:37.320 --> 00:16:40.090 critical infrastructure. We're going to keep improving 00:16:40.090 --> 00:16:43.320 and refining that with natural, with the mapping of 00:16:43.320 --> 00:16:44.894 the natural gas supply chain. 00:16:44.918 --> 00:16:47.149 <v 4>So they're designated as critical as in, 00:16:47.159 --> 00:16:49.149 you know, their power isn't going to be turned off in an 00:16:49.149 --> 00:16:52.029 emergency. But the PUC gotten any sort of reassurance 00:16:52.029 --> 00:16:54.230 from the Railroad Commission that those critical facilities 00:16:54.240 --> 00:16:57.100 have made any significant winterization efforts? Is that-- 00:16:57.110 --> 00:17:02.019 <v Lake>We know that's in process. We have 00:17:02.019 --> 00:17:05.359 great communication with all members of the Railroad 00:17:05.359 --> 00:17:08.009 Commission. I meet with Commissioner Wright weekly, speak 00:17:08.009 --> 00:17:11.599 with Chairman Christian regularly, as well as Commissioner 00:17:11.599 --> 00:17:15.049 Craddick. So we've got great communication and we've, 00:17:16.039 --> 00:17:18.779 we are assured that's in process. Again, I'll defer 00:17:18.779 --> 00:17:22.269 to their agency for their specifics of the rulemaking. 00:17:23.539 --> 00:17:25.130 <v 4>Is it safe to say, though, the PUC is 00:17:25.142 --> 00:17:26.670 confident that those critical natural gas 00:17:26.670 --> 00:17:29.829 facilities in an emergency will still be able to supply 00:17:29.829 --> 00:17:31.774 the necessary natural gas? 00:17:31.798 --> 00:17:34.269 <v Lake>Yes, yes, there was a remarkable, 00:17:34.279 --> 00:17:37.839 again, that's a remarkable culmination of work between 00:17:37.839 --> 00:17:39.990 both Railorad Commission and the PUC, in addition 00:17:39.990 --> 00:17:44.230 to the natural gas industry and the electric industry 00:17:44.230 --> 00:17:46.147 that's never ever happened before. 00:17:46.171 --> 00:17:47.269 <v 3>Chairman, I think 00:17:47.279 --> 00:17:50.890 what we're trying to get to is that a lot of pipelines 00:17:50.890 --> 00:17:55.299 froze up, gas couldn't get to these facilities. Are 00:17:55.299 --> 00:17:57.559 we sure that these lines are gonna freeze up again? 00:17:58.140 --> 00:18:01.970 And I guess that may be a question more for Brad because 00:18:01.970 --> 00:18:04.289 that was the problem. So, yeah, we won't turn off the 00:18:04.299 --> 00:18:06.220 power. It will be critical infrastructure, but still 00:18:06.220 --> 00:18:09.500 the lines froze up. What's gonna keep them from freezing up again? 00:18:09.500 --> 00:18:14.519 <v Lake>There were lots of problems, to be clear, that's 00:18:14.519 --> 00:18:18.089 the key element of the Railroad Commission rule from 00:18:18.089 --> 00:18:24.630 last month is that the biggest producers conveyors 00:18:24.640 --> 00:18:28.490 of gas, we'll keep the power on and therefore have 00:18:28.490 --> 00:18:32.609 the power they need to ensure those, that they can operate 00:18:32.609 --> 00:18:37.970 those facilities. That process is in place and it will 00:18:37.970 --> 00:18:40.789 be implemented this winter. So, I mean, that's, and 00:18:40.789 --> 00:18:44.490 that covers 80, over 80% of the daily production of 00:18:44.490 --> 00:18:48.849 gas in Texas. If you remember, think about it, 00:18:49.240 --> 00:18:53.660 if you remember, the first problem we had last 00:18:53.660 --> 00:18:56.049 Spring was that we went from one of our transmission 00:18:56.049 --> 00:18:59.400 companies went from 11 critical natural gas facilities 00:18:59.400 --> 00:19:04.950 to over 800. So in many ways, that's an over 00:19:04.950 --> 00:19:08.500 abundance of caution. And we need to have a more fine 00:19:08.500 --> 00:19:11.299 tuned designation of what is truly critical. What are 00:19:11.299 --> 00:19:14.670 the high volume so we can keep the most important ones 00:19:14.670 --> 00:19:18.089 on without overwhelming the system? 00:19:18.099 --> 00:19:19.848 <v Unknown>Okay, got time for one more question. 00:19:19.872 --> 00:19:20.789 <v 5>Speaking of that, 00:19:20.789 --> 00:19:23.829 Commissioner, you mentioned the transmission projects 00:19:23.829 --> 00:19:27.640 and the Governor has directed you to essentially direct 00:19:27.650 --> 00:19:29.880 ERCOT to build out the transmission projects, and 00:19:29.880 --> 00:19:32.119 these come with companies that come with high costs 00:19:32.130 --> 00:19:35.779 and they take a long time to develop. So what are you 00:19:35.779 --> 00:19:39.220 doing to get these one off the ground and to get these 00:19:39.220 --> 00:19:42.048 done in an expedited fashion? 00:19:42.072 --> 00:19:44.900 <v Lake>So lots of things. Commissioner 00:19:44.900 --> 00:19:48.980 Cobos, one of my colleagues, has done extraordinary job leading 00:19:48.990 --> 00:19:52.119 the development of major transmission into the Rio 00:19:52.119 --> 00:19:55.799 Grande Valley, where we have for a long time have known 00:19:55.809 --> 00:19:59.180 that there are stranded generating assets that can't 00:19:59.180 --> 00:20:02.269 get their power to the rest of the state. And so she 00:20:03.039 --> 00:20:06.970 quite simply took charge and cut through the red tape 00:20:06.970 --> 00:20:09.279 that had prevented that, and she ought to be commended 00:20:09.279 --> 00:20:12.789 for that. Commissioner Glotfelty has a vast amount 00:20:12.789 --> 00:20:15.680 of experience in the power transmission business, and 00:20:15.680 --> 00:20:20.049 he's taking a lead on transmission 00:20:20.049 --> 00:20:23.569 process planning at ERCOT. So there'll be improvement 00:20:23.569 --> 00:20:27.589 on the process side as well. And Commissioner McAdams 00:20:27.589 --> 00:20:32.279 has taken the lead on improving how we connect generators 00:20:32.289 --> 00:20:34.859 to the grid. So we're approaching the transmission 00:20:34.859 --> 00:20:38.140 problem from every angle. Each of my colleagues has 00:20:38.140 --> 00:20:40.799 done an excellent job taking on those leadership roles. 00:20:40.799 --> 00:20:43.740 And so, yes, while big transmission projects take a 00:20:43.740 --> 00:20:48.000 long time to build, it's safe to say we've cut through 00:20:48.000 --> 00:20:51.920 more red tape and made more progress than we've 00:20:51.920 --> 00:20:53.090 ever seen at ERCOT before. 00:20:53.114 --> 00:20:55.420 <v 5>Can you put that in a years situation? Like I mean 00:20:55.420 --> 00:20:57.789 what are we talking about? You've expedited it by years? 00:20:57.789 --> 00:21:00.460 You expedited about months? Or do we not know? 00:21:01.039 --> 00:21:05.119 <v Lake>Oh, years when you add up, all the different stages 00:21:05.119 --> 00:21:08.859 have been reduced by different amounts of time, absolutely 00:21:08.859 --> 00:21:13.289 years. And we're going to continue improving that process 00:21:13.299 --> 00:21:16.180 at ERCOT. So the next transmission project and the 00:21:16.180 --> 00:21:19.539 next one can be expedited with the appropriate checks 00:21:19.539 --> 00:21:23.660 and balances for costs and land use, et cetera, in place, 00:21:24.140 --> 00:21:27.710 but we're we're moving forward on the transmission 00:21:27.710 --> 00:21:32.740 the state needs. 00:21:32.740 --> 00:21:37.059 Thank y'all.