WEBVTT 00:00:02.439 --> 00:00:03.060 Afternoon. (item:1:Peter Lake Opening Statements) 00:00:04.639 --> 00:00:06.830 My name is Peter Lake, chairman of the Public Utilities 00:00:06.839 --> 00:00:09.310 Commission of Texas and with me today is 00:00:09.310 --> 00:00:13.320 Brad Jones interim CEO of ERCOT here to talk to you 00:00:13.320 --> 00:00:18.589 all about our SARA CDR and summer readiness. We'll 00:00:18.589 --> 00:00:21.859 also address the grid conditions over this past weekend 00:00:22.839 --> 00:00:26.559 As for summer we're ready. Our reforms are working 00:00:27.539 --> 00:00:31.039 Our transition from a crisis based business model to 00:00:31.039 --> 00:00:34.939 a liability based business model is showing results 00:00:34.950 --> 00:00:39.299 Our combination of conservative grid management and 00:00:39.299 --> 00:00:43.469 reforms here at PUC and ERCOT have also shown results. 00:00:44.039 --> 00:00:47.640 Brad will speak to the specific numbers in the SARA 00:00:47.640 --> 00:00:51.079 and CDR, but going into this summer, I want Texans to 00:00:51.079 --> 00:00:54.649 know that we will continue to operate with a margin 00:00:54.649 --> 00:00:57.630 of safety. Meaning that we'll have more reserves than 00:00:57.630 --> 00:01:00.460 before, we're going to continue operating with an abundance 00:01:00.460 --> 00:01:03.670 of caution, meaning that we'll bring more generators 00:01:03.670 --> 00:01:07.870 online sooner rather than later. We have a higher reserve 00:01:07.870 --> 00:01:11.159 margin going into this summer than we did last summer 00:01:12.040 --> 00:01:15.400 and this grid is more reliable than it has ever been 00:01:15.400 --> 00:01:15.849 before. 00:01:18.040 --> 00:01:21.750 The reforms I speak of were tested last weekend. As 00:01:21.750 --> 00:01:25.140 you know, we had record breaking heat, record breaking 00:01:25.140 --> 00:01:30.670 demand for electricity combined with low wind generation 00:01:30.670 --> 00:01:35.019 and an unusually high number of generators tripping 00:01:35.030 --> 00:01:38.060 offline in a short period of time 00:01:39.640 --> 00:01:44.420 meant that we had thight grid conditions. Uh the combination 00:01:44.480 --> 00:01:50.260 of these factors led us to issue a conservation request 00:01:52.239 --> 00:01:56.239 as you know conservation is another tool in our tool 00:01:56.239 --> 00:02:00.420 kit that we used to ensure reliability and it's important 00:02:00.420 --> 00:02:05.989 to note that in the past before we transition to this 00:02:05.989 --> 00:02:09.500 reliability based business model in the past under 00:02:09.500 --> 00:02:11.909 similar circumstances, no conservation notice would 00:02:11.909 --> 00:02:16.400 have been issued. This was ERCOT being proactive about 00:02:16.400 --> 00:02:19.340 the tight grid conditions and informing Texans of their 00:02:19.340 --> 00:02:23.909 ability to help contribute to grid liability by 00:02:23.919 --> 00:02:28.360 conserving electricity. We were tested last weekend 00:02:28.370 --> 00:02:35.150 and our reforms worked. ERCOTs new control of 00:02:35.150 --> 00:02:39.030 generator outages means that we had more power online 00:02:39.039 --> 00:02:41.580 going into the weekend then we would have otherwise 00:02:42.240 --> 00:02:45.259 and the extra reserves that we have been procuring 00:02:45.939 --> 00:02:48.960 it meant that we had an additional margin of safety 00:02:49.340 --> 00:02:54.849 when generators started tripping offline. Brad. Thank 00:02:54.849 --> 00:02:55.159 you. 00:02:57.939 --> 00:03:01.050 (item:2:Brad Jones Opening Statements) I'll certainly answer any questions you've got relative 00:03:01.050 --> 00:03:04.050 to the SARA and the CDR. I know there's a lot of 00:03:04.050 --> 00:03:06.259 information out there. I think bottom line for each 00:03:06.259 --> 00:03:09.030 of you is that we feel very confident about this summer 00:03:09.039 --> 00:03:12.439 Our reserves have gone up relative to last summer in 00:03:12.439 --> 00:03:17.280 fact Four years ago in 2019 we had roughly about 8-9% 00:03:17.280 --> 00:03:20.710 reserves last year. We had around 12% or two years 00:03:20.710 --> 00:03:25.439 ago we had 12%. Last year we had 15-16 and this year 00:03:25.439 --> 00:03:28.560 we have 23% reserves. So you can see our reserves have 00:03:28.560 --> 00:03:31.590 grown over each of those years. We feel very confident 00:03:31.590 --> 00:03:35.349 about our position this summer. Now as always we have 00:03:35.349 --> 00:03:38.280 to be careful about those times where it is both dark 00:03:38.280 --> 00:03:41.159 and still we have to make sure that we have the dispatchable 00:03:41.159 --> 00:03:45.099 generation to balance our fleet when wind and 00:03:45.099 --> 00:03:47.770 solar are not available to us but we're very happy 00:03:47.770 --> 00:03:50.120 to have that wind and solar development we've had over 00:03:50.120 --> 00:03:53.449 the past few years and it's making our grid stronger 00:03:54.240 --> 00:03:57.849 I also want to address this past week. This past week 00:03:57.849 --> 00:04:01.530 is an example of ERCOT doing what ERCOT needs to do 00:04:01.530 --> 00:04:04.710 to prepare for these types of events. We're having 00:04:04.710 --> 00:04:09.460 an extraordinary May, what may be the all time hottest 00:04:09.460 --> 00:04:12.659 May on record. We're certainly trending that way today. 00:04:13.240 --> 00:04:17.019 And so with the all time hottest may on record at the 00:04:17.019 --> 00:04:20.910 same time that we also have a great number of our generators 00:04:20.920 --> 00:04:23.680 are dispatchable generators that are offline that 00:04:23.680 --> 00:04:27.629 are doing regular maintenance. It became very important 00:04:27.629 --> 00:04:30.939 that ERCOT began to plan for what happened on friday 00:04:30.949 --> 00:04:34.370 as much as a week ahead and we were bringing units 00:04:34.370 --> 00:04:37.069 back out of outages, making sure they'd be prepared 00:04:37.069 --> 00:04:39.730 for us. We were communicating with the market, making 00:04:39.730 --> 00:04:42.279 sure that each of our market participants, all of the 00:04:42.279 --> 00:04:46.029 industry was prepared for this event. When friday came 00:04:46.029 --> 00:04:49.470 up, we were surprised by several generting units that 00:04:49.470 --> 00:04:52.810 failed right close to peak. Absent that, there would 00:04:52.810 --> 00:04:56.259 not have been a conservation appeal conservation request 00:04:56.259 --> 00:04:59.259 There would not have been uh probably much communication 00:04:59.259 --> 00:05:01.410 that had gone out because it would have been a normal 00:05:01.410 --> 00:05:06.180 friday that was very hot. But with those six generators 00:05:06.180 --> 00:05:10.759 tripping off between about 12:30 and 4 o'clock that afternoon 00:05:11.240 --> 00:05:14.350 it became apparent that we needed to take action. Now 00:05:14.350 --> 00:05:17.639 our action on conservation is something that I hope 00:05:17.639 --> 00:05:20.250 that each of you will understand conservation is a 00:05:20.250 --> 00:05:23.720 good thing. Conservation is what we should do every 00:05:23.720 --> 00:05:27.129 day in our in our lives. Conservation is how we treat 00:05:27.139 --> 00:05:30.100 our use of water during the summers and when it's very 00:05:30.100 --> 00:05:33.129 hot, I hope that each of you will turn to conservation 00:05:33.129 --> 00:05:37.220 as a way to both lower your bill as well as to 00:05:37.220 --> 00:05:40.290 help all of us in the market. And that's what we called 00:05:40.290 --> 00:05:43.689 for. In the past, we would call for conservation at 00:05:43.689 --> 00:05:46.959 the last moment or even beyond that when we're already 00:05:46.959 --> 00:05:50.439 into an emergency condition, but now we're moving conservation 00:05:50.439 --> 00:05:53.480 up early because we know that all Texans can help each 00:05:53.480 --> 00:05:57.339 other and help the grid to be even stronger. So we're 00:05:57.339 --> 00:05:59.649 doing that in advance of these situations. What we 00:05:59.649 --> 00:06:04.019 found on friday was a rapidly changing situation for 00:06:04.019 --> 00:06:07.389 the grid and we decided to make a call for conservation 00:06:07.399 --> 00:06:11.209 on that Friday and throughout the weekend, and it worked. 00:06:11.350 --> 00:06:15.300 Texans responded, and I want to tell all of you that 00:06:15.300 --> 00:06:18.399 responded thank you. Thank you on behalf of the state 00:06:18.399 --> 00:06:21.819 Thank you on behalf of ERCOT. Not only those that 00:06:21.819 --> 00:06:24.939 responded to conservation, which essentially brought 00:06:24.949 --> 00:06:30.040 3-400 MW of additional generation back to ERCOT, but 00:06:30.050 --> 00:06:33.449 also all of those generators that worked very quickly 00:06:33.459 --> 00:06:36.480 to bring those units back and return them to service 00:06:36.490 --> 00:06:39.949 They were available to us on saturday and sunday and 00:06:39.949 --> 00:06:42.730 allowed us to keep the grid reliable for all Texans 00:06:42.740 --> 00:06:45.160 Thank you. Thank you brad. 00:06:46.740 --> 00:06:49.790 (item:3:Peter Lake-Blueprint for Reform) As I said, this grid is more reliable than it has ever 00:06:49.790 --> 00:06:53.759 been before and we're going to continue improving reliability. 00:06:54.540 --> 00:06:57.459 As you know, this commission adopted a blueprint for 00:06:57.459 --> 00:07:01.000 reform last December and we are moving forward with 00:07:01.000 --> 00:07:04.769 phase two of implementing those reforms which will 00:07:04.769 --> 00:07:09.110 prioritize long term reliability and transition the 00:07:09.110 --> 00:07:13.449 economics of the ERCOT market to on demand power sources 00:07:13.839 --> 00:07:16.600 I look forward to continuing to work with my fellow 00:07:16.600 --> 00:07:20.649 commissioners to deliver the results on SB3 that 00:07:20.649 --> 00:07:23.839 the legislature and the governor demand and I look 00:07:23.839 --> 00:07:27.730 forward to delivering the results of that Phase two 00:07:27.740 --> 00:07:31.420 market reform to the legislature and the governor for 00:07:31.420 --> 00:07:34.350 their consideration before the next legislative session. 00:07:35.740 --> 00:07:38.680 (item:4:Power Plants Staying Online) At this point we're happy to take any questions. How 00:07:38.680 --> 00:07:41.430 can you ensure the power will stay on this summer when 00:07:41.430 --> 00:07:44.139 we've already seen power plants tripped offline due 00:07:44.139 --> 00:07:46.540 to heat, especially this weekend maintenance windows 00:07:46.540 --> 00:07:48.920 have shortened as a result of you canceling maintenance 00:07:48.920 --> 00:07:51.389 because of this recent heat. I know the lights are 00:07:51.389 --> 00:07:54.449 gonna stay on because of all the reforms we've put in 00:07:54.449 --> 00:07:57.930 place and because that when we do encounter challenges 00:07:57.930 --> 00:08:01.339 like we saw last weekend, the multiple reforms are 00:08:01.339 --> 00:08:04.579 complementary and build off of each other to create 00:08:04.589 --> 00:08:07.730 even greater reliability and that's how we know we 00:08:07.730 --> 00:08:10.709 can keep the lights on this summer. (item:4:Congestion In Houston) We've been trying 00:08:10.709 --> 00:08:14.160 to get an interview with you or your office Or another 00:08:14.160 --> 00:08:17.629 commissioner for the last six weeks. We need more transmission 00:08:17.629 --> 00:08:20.279 lines and you guys are doing a lot to expedite that 00:08:20.290 --> 00:08:23.819 process. So how many lines do we need in addition to 00:08:23.819 --> 00:08:27.310 what's underway now? How long do you expect to relieve 00:08:27.319 --> 00:08:30.889 the congestion in places like Houston? And then what 00:08:30.889 --> 00:08:35.230 are you actually doing to uh, make sure that the landowners 00:08:35.240 --> 00:08:38.179 are actually listened to beyond just you know, them 00:08:38.179 --> 00:08:42.379 coming to the PUC meetings. This commission took swift action 00:08:42.379 --> 00:08:46.289 last summer in advancing a large transmission line 00:08:46.299 --> 00:08:50.679 out of the Rio grande Valley to connect that generation 00:08:50.679 --> 00:08:52.690 to the rest of the state and also ensure that those 00:08:52.690 --> 00:08:55.799 residents have access to other parts of the states 00:08:55.809 --> 00:08:59.559 generation access. So that was uh, that was swift action 00:08:59.559 --> 00:09:02.840 by this commission utilizing part of statute has never 00:09:02.840 --> 00:09:06.860 been used before, unprecedented action to ensure reliability 00:09:06.870 --> 00:09:10.230 by building these new transmission projects. In addition 00:09:10.230 --> 00:09:12.779 we're in the process of implementing new legislation 00:09:12.779 --> 00:09:17.080 that accounts for more variables. In addition to economics 00:09:17.080 --> 00:09:22.279 cost and reliability to enhance our transmission planning 00:09:22.279 --> 00:09:26.259 and processing. That's in process now. But like all 00:09:26.259 --> 00:09:28.629 transmission projects, they're large and they take 00:09:28.629 --> 00:09:35.000 a long time landowners, landowners are an important 00:09:35.000 --> 00:09:38.370 part of transmission planning and there a key part 00:09:38.370 --> 00:09:38.850 of this 00:09:40.740 --> 00:09:45.120 Routing transmission lines is always a tough balance 00:09:45.120 --> 00:09:49.169 between those landowners rights and concerns and the 00:09:49.169 --> 00:09:52.490 need for the state for reliability. Uh, and this, this 00:09:52.490 --> 00:09:55.450 commission is very diligent and thorough in balancing 00:09:55.450 --> 00:09:58.850 all of those considerations in every, every transmission 00:09:58.850 --> 00:10:02.370 case we consider. (item:4:Sources Of New Generation) When we talk about setting new demand 00:10:02.379 --> 00:10:04.860 peaks almost every summer for the next 10 years. It 00:10:04.860 --> 00:10:06.879 makes sense because you know, Texas is growing. We're 00:10:06.879 --> 00:10:09.480 going to continue to set new records. Um, the governor's 00:10:09.480 --> 00:10:13.340 office has stated that Texas has 15% more power generation 00:10:13.340 --> 00:10:15.919 capacity this year compared to last year. Would you 00:10:15.919 --> 00:10:19.330 mind just kind of walking us through? Uh, what exact 00:10:19.340 --> 00:10:21.549 generation forms that's come from? Is that coming from 00:10:21.549 --> 00:10:23.840 renewables? Is it coming from thermal? Just kind of 00:10:23.850 --> 00:10:27.120 outlining the specific generation that that texas has 00:10:27.129 --> 00:10:30.029 been able to add this past year alone. In just round 00:10:30.029 --> 00:10:34.090 numbers alone, we have roughly by the end of this year 00:10:34.100 --> 00:10:39.759 we'll have roughly about Another 9000 MW of solar. 00:10:40.240 --> 00:10:43.200 Uh, In addition, we'll have, I said that wrong, we'll 00:10:43.200 --> 00:10:45.870 have 7000 megawatts of solar. In addition we'll have 00:10:45.870 --> 00:10:49.190 another 2 to 3000 megawatts of wind generation and 00:10:49.190 --> 00:10:53.100 about 1000 megawatts of natural gas generation. So 00:10:53.110 --> 00:10:55.429 you can see it's coming from a broad spectrum, but 00:10:55.429 --> 00:10:58.620 much of that additional generation is from the renewable 00:10:58.620 --> 00:11:01.860 side. (item:4:Communication for Conservation Requests) And I do have a quick question about the communication 00:11:01.870 --> 00:11:04.990 from this past weekend. On Friday, I know you were explaining 00:11:04.990 --> 00:11:07.940 that this was kind of a precautionary ask for conservation 00:11:07.940 --> 00:11:10.929 but the language was pretty similar to previous conservation 00:11:10.929 --> 00:11:13.740 alerts. Um, I was just wondering if first of all there's 00:11:13.740 --> 00:11:16.620 any concern that prematurely asking for conservation 00:11:16.620 --> 00:11:20.230 going forward could maybe urge Texans not to conserve 00:11:20.240 --> 00:11:22.669 and maybe, you know, we didn't get another update from 00:11:22.679 --> 00:11:25.240 ERCOT itself on the twitter accounts or on the website 00:11:25.240 --> 00:11:28.250 at all through the weekend. The only thing that was 00:11:28.250 --> 00:11:30.970 posted on friday. So do you think that communication 00:11:30.970 --> 00:11:34.440 could be maybe a little more clear going forward? Especially 00:11:34.440 --> 00:11:36.379 again, we're already sending records here in May. Do 00:11:36.379 --> 00:11:38.049 you think that communication could be a little more 00:11:38.049 --> 00:11:41.440 clear? Communication can always be better, I agree. 00:11:41.450 --> 00:11:43.580 So we're looking back at that communication that we 00:11:43.580 --> 00:11:46.710 put out and making sure that we refined that language 00:11:46.720 --> 00:11:49.419 I even stumbled over a second ago. This wasn't a conservation 00:11:49.419 --> 00:11:52.090 alert. It wasn't a conservation appeal. It was just 00:11:52.090 --> 00:11:55.210 a request to Texans to help us out over this weekend 00:11:55.220 --> 00:11:57.850 So it wasn't that we're in a dangerous situation at 00:11:57.850 --> 00:12:00.870 all. It was, it was to make sure that we're doing everything 00:12:00.870 --> 00:12:04.690 possible to keep the grid reliable so we need to improve 00:12:04.690 --> 00:12:07.970 that language and will commit to that. In 00:12:07.970 --> 00:12:10.769 addition, I think it would be good for us to have a 00:12:10.769 --> 00:12:13.820 communication at the end of one of these cycles to 00:12:13.820 --> 00:12:16.549 make sure that we respond let everyone know where we 00:12:16.549 --> 00:12:19.450 are and kind of give us some feedback to what the response 00:12:19.450 --> 00:12:22.450 was like and as I mentioned earlier, we saw roughly 00:12:22.450 --> 00:12:26.419 three or 400 megawatts of response out of Texans and 00:12:26.429 --> 00:12:30.149 that that is a great number for us to see. So that's 00:12:30.149 --> 00:12:32.450 why I was expressing my thanks earlier, thanks for the 00:12:32.450 --> 00:12:35.379 question. I was gonna say too, because ERCOT very clearly outlines on its 00:12:35.379 --> 00:12:38.509 website, normal conditions versus conservation alert vs emergency 00:12:38.519 --> 00:12:40.950 levels, do you think in the future in a press release 00:12:40.950 --> 00:12:43.450 maybe it could be included? Like what level we're currently 00:12:43.460 --> 00:12:46.419 at? Just again, make it more clear how dire the current 00:12:46.419 --> 00:12:48.710 situation is. Good. That that's a very good suggestion 00:12:48.710 --> 00:12:51.049 I appreciate that. And the important part is that we 00:12:51.090 --> 00:12:53.990 is at this time we didn't wait until the emergency 00:12:54.129 --> 00:12:56.759 to request for conservation. 2, 3 years ago, that would 00:12:56.759 --> 00:12:59.990 not have been the case. This is part of ERCOT being 00:12:59.990 --> 00:13:02.750 and the PUC being more proactive, more communicative 00:13:02.750 --> 00:13:05.879 with Texans to make sure that everybody knows the situation 00:13:05.879 --> 00:13:08.750 on the grid and what they can do to help ensure reliability 00:13:09.240 --> 00:13:13.120 ((item:4:Reporter 2 Question 2) Do yoou know why those six generators went offline on friday 00:13:13.120 --> 00:13:15.200 and how that can be prevented as we expect more high 00:13:15.200 --> 00:13:18.820 temperatures? Yes, we do. Now, the information related 00:13:18.820 --> 00:13:21.519 to those generation outages will be available to each 00:13:21.519 --> 00:13:25.659 of you tomorrow. Not tomorrow on thursday. On our website 00:13:25.659 --> 00:13:27.960 So the front page of our website has a location for 00:13:27.960 --> 00:13:31.039 generation outages. So you can find out all the information 00:13:31.039 --> 00:13:33.629 that we currently have on, why the units went out what 00:13:33.629 --> 00:13:36.669 times they went out. Bottom line, we really don't 00:13:36.669 --> 00:13:39.789 have any concerns specifically with the various reasons 00:13:39.799 --> 00:13:42.129 It was a coincidence of a number of units coming off 00:13:42.129 --> 00:13:46.120 at the same time, but the coincidence of that happened 00:13:46.129 --> 00:13:49.690 at or near peak. So the first unit came off around 00:13:49.690 --> 00:13:53.190 12:30 the last one came off around four o'clock. And 00:13:53.190 --> 00:13:55.850 it was a combination of those six units as well as 00:13:55.850 --> 00:13:58.600 a few smaller ones that we haven't mentioned so far 00:13:58.740 --> 00:14:01.559 coming off near the same time that put us in this posture 00:14:01.600 --> 00:14:05.820 of sending out this request to consumers. Just wanted 00:14:05.820 --> 00:14:08.899 to make sure that we were informing consumers as each 00:14:08.899 --> 00:14:11.440 of you have asked us to do of what the condition is 00:14:11.440 --> 00:14:14.179 on the grid and what may be happening that we're watching 00:14:14.340 --> 00:14:16.139 that's what we're trying to do is make sure that you 00:14:16.139 --> 00:14:18.700 had the best information available. (item:4:When Did You Know About The Generators Tripping Offline) Can you kind of 00:14:18.700 --> 00:14:21.840 walk us through in some detail what happened on friday 00:14:21.840 --> 00:14:24.090 Like, what did you know? And when did you know it? 00:14:24.100 --> 00:14:27.000 Um I know you met with the governor earlier in the 00:14:27.009 --> 00:14:30.210 day. Was that just coincidental? What was, what did 00:14:30.210 --> 00:14:32.049 you know? When did you know it? On friday? That was 00:14:32.049 --> 00:14:36.210 highly coincidental. That was his standard summer briefing 00:14:36.220 --> 00:14:39.700 uh, on the same information we're presenting to you 00:14:39.700 --> 00:14:44.700 all today and the turn of events with the tripping 00:14:44.700 --> 00:14:47.240 generators was something that developed like brad said 00:14:47.240 --> 00:14:51.210 over a period of hours, 12:30 was the first one. Of 00:14:51.210 --> 00:14:53.950 course one generator is not a problem. The second one 00:14:54.340 --> 00:14:56.899 it was a bit later, brad can go through the timetable 00:14:56.899 --> 00:15:00.990 on that, but it was, it was completely unrelated and 00:15:01.129 --> 00:15:05.029 as we saw a cascading sequence of events over a period 00:15:05.029 --> 00:15:10.419 of hours, certainly not a discrete event, a moment 00:15:10.419 --> 00:15:13.350 in time. And the key to what, what the chairman is 00:15:13.350 --> 00:15:17.110 talking about is that we, we suffered that type of 00:15:17.120 --> 00:15:21.049 a problem. And yet the, the condition of the grid did 00:15:21.049 --> 00:15:23.610 not go into any of our alert status is one of you 00:15:23.610 --> 00:15:26.500 mentioned, you know, a different alert criterias. It 00:15:26.500 --> 00:15:29.649 did not go into an advisory, did not go into a watch 00:15:29.649 --> 00:15:33.450 Did not go into an emergency alert because we had prepared 00:15:33.460 --> 00:15:36.200 So you asked for a sequence of events. We started about 00:15:36.200 --> 00:15:39.379 a week ahead of time, calling on generators to see 00:15:39.379 --> 00:15:41.960 if we could get their generation outages moved 00:15:41.960 --> 00:15:44.120 to a different time, making that additional generation 00:15:44.120 --> 00:15:47.409 available to everyone. By the time we arrived that 00:15:47.409 --> 00:15:50.250 morning we've been meeting and talking with with the 00:15:50.250 --> 00:15:52.120 chairman and other commissioners about the condition 00:15:52.120 --> 00:15:54.549 of the grid entirely throughout the week. Making sure 00:15:54.549 --> 00:15:57.659 they understood what we were going to see that afternoon 00:15:58.039 --> 00:16:00.799 we all felt very comfortable with what we were going 00:16:00.799 --> 00:16:04.330 to see that afternoon. Then when these generation outages 00:16:04.340 --> 00:16:07.259 occurred because of that level of comfort because of 00:16:07.259 --> 00:16:10.720 that preparation, because we are bringing on more generation 00:16:10.720 --> 00:16:13.360 reserves than we ever have in the past. That level 00:16:13.360 --> 00:16:18.279 of units coming offline did not create a condition 00:16:18.289 --> 00:16:21.669 which put us into any of those criterias for emergency 00:16:21.679 --> 00:16:25.029 It's because we're taking these advanced actions megawatts 00:16:25.029 --> 00:16:29.899 at one point. So our PRC excuse for those of you that 00:16:29.899 --> 00:16:32.500 I need to explain this but our physical responsive 00:16:32.500 --> 00:16:35.779 capability which is the amount of generation that we 00:16:35.779 --> 00:16:37.899 can get in a short amount of time. It doesn't mean 00:16:37.909 --> 00:16:40.149 all of the generation that's available but what can 00:16:40.149 --> 00:16:43.279 we get in a short amount of time. It did fall for 00:16:43.279 --> 00:16:48.320 just a few minutes below 3,000 to 2,985 I believe was 00:16:48.320 --> 00:16:51.279 the number but it was back within 30 minutes. And so 00:16:51.289 --> 00:16:54.100 it did not create a concern for us and it was back 00:16:54.100 --> 00:16:56.389 within 30 minutes because of the additional reserves 00:16:56.389 --> 00:16:58.500 We procured that margin of safety. That's where we're 00:16:58.500 --> 00:17:01.919 able to deploy that And those are the redundant layers 00:17:01.929 --> 00:17:04.490 that we're talking about and how these reforms complement 00:17:04.490 --> 00:17:07.650 and build on each other. (item:4:Any Indication Of Working Plants Too Hard) friday. Calling the concern 00:17:07.660 --> 00:17:10.680 um, just the overall approach to the grid. This idea 00:17:10.680 --> 00:17:13.819 of operating conservatively, is there some truth to 00:17:13.819 --> 00:17:16.420 the notion of, you know, you can have too much in reserves 00:17:16.420 --> 00:17:19.559 and you're pushing the plants that are online too hard 00:17:19.559 --> 00:17:23.089 Is there any indication that's what happened? The outcome 00:17:23.089 --> 00:17:26.319 of the events on Friday is a testament and endorsement 00:17:26.319 --> 00:17:28.670 of the reforms that have been enacted as a result of 00:17:28.670 --> 00:17:32.619 SB3 and a stark demonstration of how effective 00:17:32.619 --> 00:17:37.220 they have they are when faced with the combination 00:17:37.220 --> 00:17:40.440 of not not one negative impact on the grid, but three 00:17:40.450 --> 00:17:45.700 hot record high demand, low wind and a unique number 00:17:45.700 --> 00:17:49.319 of outages in quick succession. All three of those 00:17:49.329 --> 00:17:52.950 events occurring at one time. It is extremely rare 00:17:52.960 --> 00:17:56.779 and yet the lights stayed on our grid was really reliable 00:17:56.779 --> 00:18:01.089 and we didn't even get into an emergency status. What if that happened in July or August 00:18:02.640 --> 00:18:06.589 when temperatures were in the triple digits. We're prepared for 00:18:06.589 --> 00:18:10.730 that too. And that's why we do these, established these 00:18:10.730 --> 00:18:13.789 margins of safety every day, most days we don't need 00:18:13.789 --> 00:18:15.670 it. But the thing that's important is the days when 00:18:15.670 --> 00:18:19.210 we do need it. We've got those reserves. We bring those 00:18:19.210 --> 00:18:23.410 generators on sooner rather than later. Before we go 00:18:23.410 --> 00:18:25.309 there. I do want to finish up this question. So one 00:18:25.309 --> 00:18:27.420 of, one of the parts of the answer to your question 00:18:27.420 --> 00:18:30.609 is that during May, recall, we have a lot of generation 00:18:30.609 --> 00:18:34.059 that's on outage, a vast number of generations that 00:18:34.059 --> 00:18:37.089 is on outage for changing the oil, getting the units 00:18:37.089 --> 00:18:40.450 ready for the summer. We don't have that in the summer 00:18:40.460 --> 00:18:42.799 And so that is an additional amount of generation that 00:18:42.799 --> 00:18:45.910 will be available to us in a matter of weeks. And that 00:18:45.920 --> 00:18:48.690 makes all the difference in the grid. Thanks. (item:4:Using the SARA Report to Forecast) To that 00:18:48.690 --> 00:18:53.920 reserve capacity, The SARA report this time has the percentage 00:18:53.920 --> 00:18:59.000 a lot lower than say the spring or last winter. And 00:18:59.000 --> 00:19:01.750 I know that you've changed the formula in order to 00:19:01.750 --> 00:19:06.130 speak. So if you were able to use that for the spring 00:19:06.140 --> 00:19:09.420 for what we've just experienced, how would that impact 00:19:09.420 --> 00:19:13.180 it? So we can compare our buffer for summer versus 00:19:13.180 --> 00:19:16.839 our buffer anticipated buffer for your comparison. 00:19:16.849 --> 00:19:20.480 I would ask that you go back to the SARA for last 00:19:20.480 --> 00:19:23.539 summer. So you need to compare season this season and 00:19:23.539 --> 00:19:26.069 you'll see that last summer has basically the same 00:19:26.069 --> 00:19:30.930 level of of various scenarios. And in those various 00:19:30.930 --> 00:19:33.710 scenarios you can compare off the improvements that 00:19:33.710 --> 00:19:36.099 you'll see in the grid this year. Has it changed the 00:19:36.109 --> 00:19:41.180 formula now? So considered other things or the generating 00:19:41.180 --> 00:19:44.819 units? Yeah, I I don't know that. I don't believe that 00:19:44.819 --> 00:19:46.940 there's enough changes that would affect that comparison 00:19:46.940 --> 00:19:49.309 So I think you can go back to that comparison and compare 00:19:49.319 --> 00:19:53.490 each of those scenarios 1-1 and you'll see a significant 00:19:53.490 --> 00:19:55.519 amount of additional generation we have available this 00:19:55.519 --> 00:19:58.079 year. I think what you're referencing is the effort 00:19:58.079 --> 00:20:00.990 by the commission and ERCOT to come up with a new 00:20:00.990 --> 00:20:05.019 version, updated version of Cr Cr which I've asked 00:20:05.019 --> 00:20:07.039 Commissioner McAdams to spearhead and he in fact 00:20:07.039 --> 00:20:10.809 had a meeting this morning on that with key stakeholders 00:20:10.819 --> 00:20:15.750 That's a work in progress. Uh We we will always strive 00:20:15.750 --> 00:20:17.930 to continuously improve the products we put out for 00:20:17.930 --> 00:20:20.880 the public for the purposes of this summer, like brad 00:20:20.880 --> 00:20:24.789 said, it's apples to apples comparison is this SARA 00:20:24.799 --> 00:20:29.430 for 2022 Looking vs last summers and last summer the 00:20:29.430 --> 00:20:33.539 planning reserve margin for the the Summer SARA was 00:20:33.539 --> 00:20:38.089 15.7% reserve margin going to this summer we have a 00:20:38.089 --> 00:20:42.970 planning reserve margin of 22.8%. So a solid increase 00:20:42.970 --> 00:20:44.069 as you can see. (item:4:Abnormal Circumstances That Stress the Grid) 00:20:49.940 --> 00:20:51.750 what are some of those circumstances that might not 00:20:51.759 --> 00:20:53.650 be considered normal that could cause problems with 00:20:53.650 --> 00:20:56.400 the great you know, I had a second question, you had 00:20:56.400 --> 00:20:58.799 mentioned that that conservation asked for something 00:20:58.799 --> 00:21:00.950 that you guys are being proactive. A lot of the people 00:21:00.950 --> 00:21:03.619 in the community system that I spoke with. I took it 00:21:03.619 --> 00:21:07.759 as I here comes ERCOT again. So how do you change the 00:21:07.769 --> 00:21:10.279 public perception to realize that in your mind that 00:21:10.319 --> 00:21:13.400 proactive as opposed to ineffective. Sure. So unusual 00:21:13.400 --> 00:21:15.839 circumstances. I'd define the six generators tripping 00:21:15.839 --> 00:21:18.519 off in a matter of a couple of hours. That's the kind 00:21:18.519 --> 00:21:22.230 of unusual circumstances that we prepare for. And that's 00:21:22.230 --> 00:21:26.019 why we build in these redundancies. Uh, like brad said 00:21:26.029 --> 00:21:29.619 when circumstances dictated, we issued the conservation 00:21:29.619 --> 00:21:34.809 request and unlike in the past we issued it for the 00:21:34.809 --> 00:21:38.230 entire weekend because we didn't want to do the whiplash 00:21:38.240 --> 00:21:40.559 of concern for a few hours. Don't know how you can 00:21:40.559 --> 00:21:43.390 stop back and forth. And we were very, we tried to 00:21:43.390 --> 00:21:45.630 be very clear and upfront with people about the hours 00:21:45.630 --> 00:21:49.380 when it was important and how they could contribute 00:21:49.380 --> 00:21:53.779 to help. After a tragedy like Uri Yes, absolutely. 00:21:53.779 --> 00:21:58.069 We we must regain the trust of our customers and we 00:21:58.069 --> 00:22:01.539 will and this increased transparency. These proactive 00:22:01.539 --> 00:22:05.650 efforts are a part of that. Uh And as always conservation 00:22:05.660 --> 00:22:09.859 is a a tool that we have used and will continue to 00:22:09.859 --> 00:22:14.259 use and like brad said well continually improve the 00:22:14.259 --> 00:22:18.559 way we communicate with our customers and will continuously 00:22:19.140 --> 00:22:23.930 strive to enhance reliability as we move forward. (item:4:Allocating Liability Costs to Renewables) Chairman 00:22:23.930 --> 00:22:27.599 you mentioned Phase two market reforms. Is there anything 00:22:27.599 --> 00:22:30.990 in there that fulfills the governor's directive to 00:22:31.000 --> 00:22:35.240 allocate the liability costs to renewables. That was that 00:22:35.240 --> 00:22:38.079 will be under consideration as we developed Phase two 00:22:38.079 --> 00:22:40.839 But that was also addressed in our adoption of Phase 00:22:40.839 --> 00:22:45.950 one. In considering the E. C. R. S. New Ancillary service 00:22:45.950 --> 00:22:49.329 product. I apologize for the acronyms but essentially 00:22:49.329 --> 00:22:54.009 the the fast ramp product that is designed to offset 00:22:54.009 --> 00:22:58.319 the sunsetting and dropping solar that cost will be 00:22:58.329 --> 00:23:03.930 the commission decided will be assigned to the resources 00:23:03.930 --> 00:23:07.039 causing it in this case the the intermittent resources 00:23:08.470 --> 00:23:09.349 before you guys 00:23:12.140 --> 00:23:15.160 the blueprint that was adopted in december includes 00:23:15.160 --> 00:23:17.869 two components the Load side reliability mechanism 00:23:17.869 --> 00:23:20.960 and the backstop reserve service. We're in the process 00:23:20.960 --> 00:23:24.559 of building those market product. Those market designs 00:23:24.559 --> 00:23:28.160 out both of those will put new steel on the ground 00:23:28.160 --> 00:23:32.049 will incentivize new dispatchable generation and 00:23:32.049 --> 00:23:35.190 dispatchable resources in ERCOT which the governor 00:23:35.190 --> 00:23:37.859 and the legislature have been very clear is is a big 00:23:37.859 --> 00:23:43.220 priority. We are focused on that priority and delivering 00:23:43.220 --> 00:23:45.750 those results for the governor and Legislature by next 00:23:45.750 --> 00:23:49.180 session. (item:4:Who's Involved In Making the Conservation Requests) Who was involved in the deliberations over 00:23:49.180 --> 00:23:52.670 whether to issue the conservation call because that's 00:23:53.240 --> 00:23:57.700 that obviously is a thing that is not politically palatable 00:23:57.880 --> 00:24:00.849 right now. So who was involved in those discussions 00:24:01.240 --> 00:24:04.170 That's an operational call that comes from the ERCOT 00:24:04.170 --> 00:24:07.480 control room to Brad, Brad and I discuss and make a 00:24:07.480 --> 00:24:10.440 decision and brad and his team did an excellent job 00:24:10.450 --> 00:24:13.759 issuing that conservation call in a very, very short 00:24:13.759 --> 00:24:17.369 amount of time. (item:4:Addressing The Grids Aging Thermal Fleet) Can you address the grids, aging thermal 00:24:17.369 --> 00:24:20.269 fleet? Can it really depend on these older plants not 00:24:20.279 --> 00:24:20.559 to go down? 00:24:22.539 --> 00:24:26.759 We are taking in all of the above approach to our grid 00:24:26.759 --> 00:24:29.680 We want to leverage the benefits of all types of our 00:24:29.680 --> 00:24:34.690 resources, thermal renewable uh and new storage, distributed 00:24:34.690 --> 00:24:38.119 storage and new technologies yet to be deployed. We're 00:24:38.119 --> 00:24:41.150 aware that we've got a aging thermal fleet and that's 00:24:41.150 --> 00:24:45.279 very much the motivation of our Phase two market reform 00:24:45.279 --> 00:24:49.240 efforts and that's why we're moving the economics moving 00:24:49.250 --> 00:24:53.089 the revenues in this market towards On demand power 00:24:53.099 --> 00:24:56.759 When Texans turn the light switch on, they need electricity 00:24:56.769 --> 00:24:59.880 And that's why the phase two reforms are 00:24:59.880 --> 00:25:04.329 so focused on on demand power. What's what's just your 00:25:04.339 --> 00:25:06.839 message to Texans? I mean getting this notice this 00:25:06.839 --> 00:25:07.269 weekend, 00:25:13.740 --> 00:25:17.599 The reforms are working the lights are going to stay 00:25:17.599 --> 00:25:20.329 on this summer and thank you for playing your part 00:25:20.339 --> 00:25:23.130 in ensuring grid reliability were all part of this 00:25:23.130 --> 00:25:28.349 together and reforms are working. (item:4:Will The Grid Work This Summer) People have talked 00:25:28.349 --> 00:25:30.240 about the six plants already going down that kind of 00:25:30.250 --> 00:25:31.710 ties in to the aging infrastructure, 00:25:33.339 --> 00:25:37.569 this come out and say it's going to work, Is that something 00:25:37.569 --> 00:25:40.779 anybody can be sure of? Absolutely. We've got over 700 00:25:40.779 --> 00:25:44.849 generators in ERCOT six of them had a bad day and we've 00:25:44.859 --> 00:25:47.309 implemented all the reforms you heard me talk about 00:25:47.319 --> 00:25:49.650 we've got a bigger reserve margin going into this summer 00:25:49.650 --> 00:25:52.759 than we had last summer. We got through last summer 00:25:53.339 --> 00:25:55.779 we got through last winter and we're gonna get through 00:25:55.779 --> 00:25:58.819 this summer, we're better prepared than we ever have 00:25:58.819 --> 00:26:02.069 been before. This, this grid operator and this team 00:26:02.069 --> 00:26:05.369 is doing a great job managing for reliability first 00:26:05.380 --> 00:26:09.970 rather than crisis based business model. And so that's 00:26:09.980 --> 00:26:14.910 that's how we can say with absolute confidence to Texans 00:26:14.910 --> 00:26:17.500 that the lights will stay on this summer when you talk 00:26:17.500 --> 00:26:20.200 about some questions from reporters. 00:26:26.039 --> 00:26:29.450 Thanks. Any questions josh and company 00:26:31.369 --> 00:26:34.549 very constructively right now. Anybody under the goal 00:26:35.039 --> 00:26:37.980 No question, Press 10 in telephone keypad. 00:26:44.339 --> 00:26:46.470 We have one person that's queued up one moment will 00:26:46.470 --> 00:26:48.900 gather their names, but once again, you have a question 00:26:49.599 --> 00:26:51.059 zero on your telephone keypad? 00:26:56.039 --> 00:26:56.359 Yeah. 00:27:06.339 --> 00:27:11.470 Right, josh. Let us know if that questions uh, queued 00:27:11.470 --> 00:27:13.960 up in the meantime we can continue to do some questions 00:27:14.339 --> 00:27:18.339 It looks like are we didn't have we have a question 00:27:18.349 --> 00:27:24.529 I know, I know. Jose tell people go ahead. (item:4:Energy Emergency Alert) Yeah, thanks 00:27:24.529 --> 00:27:28.630 for taking the question. Uh, 1 Question I had was 00:27:28.640 --> 00:27:30.900 you keep saying that you didn't have to declare an 00:27:30.900 --> 00:27:35.049 energy emergency alert. But have you done that? It's 00:27:35.150 --> 00:27:38.319 my understanding that would signal to utilities issue 00:27:38.319 --> 00:27:42.240 push notifications and and do their own conservation 00:27:42.500 --> 00:27:45.440 that they didn't have to do in the absence of such 00:27:45.440 --> 00:27:48.589 an alert. So I mean shouldn't you have actually done 00:27:48.589 --> 00:27:51.759 an alert in order to conserve when that have led to 00:27:51.759 --> 00:27:54.660 more conservation? I don't understand. You might not 00:27:54.660 --> 00:27:56.799 have reached the threshold of the conservation with 00:27:56.799 --> 00:27:59.980 the goals would not have made more sense. Yeah. We 00:27:59.980 --> 00:28:02.150 didn't feel like we needed to go to that level most 00:28:02.160 --> 00:28:05.940 Uh, what we did do is is several of the utility partners 00:28:05.940 --> 00:28:08.789 called us and asked us and we, we didn't ask any of 00:28:08.789 --> 00:28:11.819 them to take that next step, but we did indicate to 00:28:11.819 --> 00:28:15.170 them that it was on their own, their own decision making 00:28:15.170 --> 00:28:17.180 if they decided to take that next step. Many of them 00:28:17.180 --> 00:28:21.900 did. But we didn't issue the the full conservation 00:28:21.900 --> 00:28:24.559 alert because we didn't feel like it went to that level 00:28:24.569 --> 00:28:25.549 of necessity. 00:28:27.440 --> 00:28:29.670 I also think that also maybe for a lot of us in 00:28:29.670 --> 00:28:32.339 the media, this has been kind of a confusing thing 00:28:32.339 --> 00:28:36.480 given the amount of, of media coverage that was around 00:28:36.480 --> 00:28:38.759 the winter cold fronts that we had where there was 00:28:38.769 --> 00:28:42.180 some concern about grid stability. We got, you know 00:28:42.180 --> 00:28:44.819 we got tighter on the grid last friday than during 00:28:44.819 --> 00:28:47.380 any of those events. But as I've been mentioned in 00:28:47.380 --> 00:28:50.059 the past, there was very little communication. What 00:28:50.069 --> 00:28:52.730 what went into that? Like why did I buy that big difference 00:28:52.730 --> 00:28:54.700 Why that why all the press conferences and all the 00:28:54.700 --> 00:28:59.980 attention during the winter and then, and then uh the 00:28:59.980 --> 00:29:03.240 winter events were broader than just power grid related 00:29:03.240 --> 00:29:06.059 That's the activation of the state operations center 00:29:06.440 --> 00:29:12.220 and the corresponding media interaction was through 00:29:12.220 --> 00:29:16.150 the state operations center. Uh so I'd have to defer 00:29:16.150 --> 00:29:20.170 to them on on how they manage that. As always we are 00:29:20.170 --> 00:29:23.309 available where you continue to do these seasonal press 00:29:23.309 --> 00:29:26.809 conferences. Uh and as you saw last week were being 00:29:26.809 --> 00:29:30.660 more proactive about communicating with Texans when 00:29:30.660 --> 00:29:33.509 grid conditions are tight and when they can play a 00:29:33.509 --> 00:29:37.900 role in conserving power. And one last thing is, you 00:29:37.900 --> 00:29:40.150 know, I just, and I think you were asked earlier, but 00:29:40.160 --> 00:29:43.349 it's just that he's operating with large capacity margins 00:29:43.359 --> 00:29:45.420 for months and months. These power plants are being 00:29:45.420 --> 00:29:48.829 asked to stay available uh to levels not seen before 00:29:48.829 --> 00:29:51.880 The last big blackout. Is that leading to a risk of 00:29:51.890 --> 00:29:54.410 greater surprise breakdowns. Like we saw on friday 00:29:54.420 --> 00:29:57.470 when these machines need to be, I did not watch the 00:29:57.480 --> 00:30:00.539 time being 19 and we've heard reports that are being 00:30:00.539 --> 00:30:03.690 asked to stand in line when they maybe shouldn't no 00:30:03.690 --> 00:30:08.019 no concerns at all. Plant power plants staying online 00:30:08.019 --> 00:30:12.039 as part of our additional reserves. And like I said 00:30:12.039 --> 00:30:15.240 we do that every day because we never know when we'll 00:30:15.240 --> 00:30:17.500 need that additional margin of safety. We needed it 00:30:17.500 --> 00:30:22.369 on friday. And it was incredibly important to have 00:30:22.369 --> 00:30:26.180 at that moment in time. So we'll continue, we'll continue 00:30:26.190 --> 00:30:31.220 to maintain that margin of safety. But we're also continuously 00:30:31.220 --> 00:30:35.339 working with our generators to ensure that they can 00:30:35.339 --> 00:30:39.049 take adequate maintenance outages. And most importantly 00:30:39.049 --> 00:30:43.329 that the ones that work with ERCOT like brad mentioned 00:30:43.339 --> 00:30:47.009 the generators who delayed outages to be ready for 00:30:47.009 --> 00:30:51.339 last friday. We're ensuring that archive prioritizes 00:30:51.339 --> 00:30:54.579 those generators to make sure that the ones that run 00:30:54.579 --> 00:30:58.289 when we need them the most are in front of line for 00:30:58.289 --> 00:31:00.630 maintenance outages. So all of our generator fleets 00:31:00.640 --> 00:31:02.849 are ready for this coming summer. 00:31:07.640 --> 00:31:08.910 Any other questions on the phone? 00:31:11.640 --> 00:31:15.170 Yes. Our next question is from the lineup Shelby Webb 00:31:15.740 --> 00:31:16.059 Mm hmm. 00:31:18.039 --> 00:31:21.470 (item:4:Reporter 13 Question 1) Hi, I'm speaking about the actual hardware generations 00:31:21.480 --> 00:31:23.720 that has been 00:31:27.539 --> 00:31:31.789 compared to previous years and what we expected people 00:31:31.789 --> 00:31:36.319 the rest of the year. The cost increase of the additional 00:31:36.319 --> 00:31:40.329 reserves we've procured starting last june Through 00:31:40.329 --> 00:31:45.960 may totals to just about $1 per household per month 00:31:46.539 --> 00:31:52.170 So Texans for for $1 per month are receiving a vastly 00:31:52.170 --> 00:31:55.670 more reliable grid to ensure that the lights stay on 00:31:57.339 --> 00:32:00.559 Did you give me an a $5 figures about them. Mm hmm 00:32:01.839 --> 00:32:06.200 No, The, I don't have the total dollar figure. Uh, 00:32:06.210 --> 00:32:12.279 in front of me. I think it's roughly $380 million 99.5 00:32:12.279 --> 00:32:14.259 cents per household per home per month. 00:32:16.539 --> 00:32:18.170 Okay. Feeling not very large. 00:32:20.440 --> 00:32:20.670 Okay. 00:32:24.339 --> 00:32:24.680 For 00:32:26.240 --> 00:32:31.890 the painter ability, reliability, We'll continue purchasing 00:32:31.890 --> 00:32:36.309 the extra reserves. We do not expect those costs to 00:32:36.319 --> 00:32:40.930 increase above that much more or below that $1 per 00:32:40.930 --> 00:32:47.819 household per month. And in fact The that $1 per household 00:32:47.819 --> 00:32:50.880 per month includes the dramatic increase in natural 00:32:50.880 --> 00:32:54.500 gas prices which of course are unrelated to the power 00:32:54.500 --> 00:32:59.460 grid. So if anything, if gas prices decrease, uh those 00:32:59.460 --> 00:33:00.950 numbers should decrease as well. 00:33:03.240 --> 00:33:06.829 Sure. And even if a spirit female reports accurately 00:33:06.829 --> 00:33:10.329 accounted for shooting weather scenarios, an increase 00:33:10.339 --> 00:33:15.619 out there sort of unusual. And doctor right now Yeah 00:33:15.619 --> 00:33:19.329 The CDR and SARA evaluate a wide variety of scenarios 00:33:19.339 --> 00:33:25.200 including extra high demand for power. So yes, 00:33:25.200 --> 00:33:27.880 that's exactly what they are. Scenario analysis. They're 00:33:27.880 --> 00:33:30.680 not predictions. Uh they're they're nothing more than 00:33:30.680 --> 00:33:33.960 arithmetic and they certainly don't uh take into full 00:33:33.960 --> 00:33:37.049 account are the multitude of reforms we've implemented 00:33:37.059 --> 00:33:40.559 there a useful tool. But just that a tool 00:33:45.539 --> 00:33:47.950 I would. Mhm. He shouldn't play holiday. 00:33:51.339 --> 00:33:52.170 Can you repeat that? 00:33:54.039 --> 00:33:56.740 So people, so it's just a risk descending as well that 00:33:56.750 --> 00:34:01.259 people shouldn't be facing a lot of decisions on it 00:34:01.259 --> 00:34:03.299 Is that what you're saying? Like I'm just trying to 00:34:03.299 --> 00:34:03.849 have. Like 00:34:07.240 --> 00:34:10.969 I'm sorry, what's the question to the relevance towards 00:34:10.969 --> 00:34:14.670 what? Well towards the parents er reports that they're 00:34:14.670 --> 00:34:16.739 just sort of a richness and they're not taking into 00:34:16.739 --> 00:34:21.659 account a lot of useful forms, are they valid? Yeah 00:34:21.670 --> 00:34:24.840 So what we, this is brad again, what we want to make 00:34:24.840 --> 00:34:27.280 sure is that we're giving you the information and the 00:34:27.280 --> 00:34:30.440 information to all Texans that they need, that they 00:34:30.440 --> 00:34:33.019 want to see. We want to make sure that you're seeing 00:34:33.019 --> 00:34:36.199 what are expected cases. And we've given you that we 00:34:36.199 --> 00:34:39.969 want you to see what an extreme event might look like 00:34:39.980 --> 00:34:42.400 And we've given you that and if you went back to the 00:34:42.400 --> 00:34:46.739 SARA for spring, you'll see an extreme event on heat 00:34:46.739 --> 00:34:49.409 that looks very much very similar to what we just went 00:34:49.409 --> 00:34:52.559 through. So that's how you can use the information 00:34:52.559 --> 00:34:55.550 just to, to provide you some level of comfort really 00:34:55.550 --> 00:34:59.070 The focus should be on what are expected cases and 00:34:59.070 --> 00:35:01.570 that's where we delivered. And I think it's a very 00:35:01.570 --> 00:35:02.349 good story 00:35:04.039 --> 00:35:07.590 josh as we move on with the questions, can you ask 00:35:07.590 --> 00:35:09.969 the callers to identify the organization they're representing 00:35:12.440 --> 00:35:17.420 I do that. Thank you. Our next question to line Line 00:35:17.420 --> 00:35:18.130 of Field, 00:35:20.510 --> 00:35:24.130 especially the organization's ability. Your line is 00:35:24.130 --> 00:35:28.639 open? (item:4:Bill Jankowski-Plants Not Having Enough Time for Maintenance) Yeah. Hi, Bill Jankowski with the Dallas morning 00:35:28.639 --> 00:35:32.639 news here, um, similar question. The one that most 00:35:32.650 --> 00:35:39.440 had the uh, with the hot weather arriving much earlier 00:35:39.449 --> 00:35:43.630 than expected and as was reported the texas tribune 00:35:43.639 --> 00:35:46.739 this morning. It's some of the power plants tripping 00:35:46.750 --> 00:35:52.960 off on friday being ones that were under maintenance 00:35:53.440 --> 00:35:56.840 preparing for the summer. So my question is is there 00:35:56.840 --> 00:36:03.690 any worries about the these power plants not having 00:36:03.690 --> 00:36:07.550 enough time, not being able to complete necessary maintenance 00:36:07.559 --> 00:36:13.820 in time for the people demand in the summer. And if 00:36:13.829 --> 00:36:19.250 ERCOT as the puc are doing anything to address that 00:36:20.730 --> 00:36:24.269 Yeah, so, great. And I appreciate the question. We're 00:36:24.269 --> 00:36:26.059 working with the generators to make sure that they 00:36:26.059 --> 00:36:28.650 have the amount of time that they need to make sure 00:36:28.650 --> 00:36:31.099 that the units are ready for this summer. In fact, 00:36:31.099 --> 00:36:34.469 one of those units that was asked to move their outage 00:36:34.480 --> 00:36:38.280 is now entering into its own outage. Uh so that it can 00:36:38.289 --> 00:36:41.829 do the work that they need to do for the summer. The 00:36:41.840 --> 00:36:44.789 the condition of those units? Uh yeah, I'm always concerned 00:36:44.789 --> 00:36:46.880 when we see quite a few units go off at the same 00:36:46.880 --> 00:36:49.190 time, I'm always concerned about the condition of these 00:36:49.190 --> 00:36:51.769 units. We have to make sure that we have the right 00:36:51.769 --> 00:36:54.550 incentives in place in our market to both attract and 00:36:54.550 --> 00:36:58.039 retain new generation of that very type of that dispatchable 00:36:58.039 --> 00:37:00.769 type. And so I know that the chairman is working 00:37:00.769 --> 00:37:03.230 on that through their Phase two, all of the commissioners 00:37:03.230 --> 00:37:06.269 are working on that effort through Phase Two. And we're 00:37:06.269 --> 00:37:09.760 working to make sure as you asked that generators have 00:37:09.760 --> 00:37:12.860 the outage time, they need to get their equipment in 00:37:12.860 --> 00:37:15.590 good shape for the summer. Thank you. And importantly 00:37:15.590 --> 00:37:20.440 Phil, I'll note that as ERCOT takes control of the 00:37:20.449 --> 00:37:24.070 outage schedule, that their proposed methodology for 00:37:24.070 --> 00:37:28.920 next fall provides 15% more time for outages than were 00:37:28.920 --> 00:37:31.769 actually taken last fall by these generators. So they 00:37:31.769 --> 00:37:35.159 will in fact be more time for outages, not less. We're 00:37:35.159 --> 00:37:37.840 just making sure the outages don't all happen at once 00:37:40.030 --> 00:37:43.179 And if I may, I've got another question, I just wanted 00:37:43.179 --> 00:37:49.639 to see if uh because as brad had a reported about a 00:37:49.650 --> 00:37:54.320 month ago or sometimes less money, uh Cryptocurrency 00:37:54.329 --> 00:37:57.030 being, you know, on on such a rise and planning to 00:37:57.030 --> 00:38:01.139 add a tremendous amount of demand um, to the grid over 00:38:01.139 --> 00:38:04.429 the next couple of years, is there, you know, that 00:38:04.440 --> 00:38:07.840 part of what goes into the SARA report and you guys 00:38:07.849 --> 00:38:12.929 have learn about the continued added demands from a 00:38:12.929 --> 00:38:18.599 very electricity intensive process. Thank you for the 00:38:18.599 --> 00:38:23.090 question. So, we have roughly about 3-400 MW of Cryptocurrency 00:38:23.090 --> 00:38:26.809 in Texas today. Uh we did check their performance throughout 00:38:26.820 --> 00:38:29.690 this event. They performed admirably as we would have 00:38:29.690 --> 00:38:32.530 expected them to. And so from that perspective, we 00:38:32.530 --> 00:38:35.960 don't have a concern. We have started a process to 00:38:35.969 --> 00:38:38.409 really look at how those loads are interconnected to 00:38:38.409 --> 00:38:40.599 our system to make sure that we're getting as much 00:38:40.599 --> 00:38:43.559 value out of them as possible. And that process includes 00:38:43.559 --> 00:38:46.219 a task force that has brought many of those partners 00:38:46.260 --> 00:38:50.380 together, those Bitcoin and Cryptocurrency type developers 00:38:50.380 --> 00:38:53.570 together, they've been very cooperative with us and 00:38:53.570 --> 00:38:56.550 we look forward to being able to resolve those outstanding 00:38:56.550 --> 00:39:00.869 questions. So he's saying that during that time when 00:39:00.880 --> 00:39:03.199 the request was 00:39:05.489 --> 00:39:09.519 just kind of shut down temporarily, they operated as 00:39:09.519 --> 00:39:11.840 we would have expected under that condition. Yes. 00:39:14.019 --> 00:39:15.449 Alright. Thanks guys. 00:39:17.110 --> 00:39:20.860 Maybe one more question from the phone line Josh. We 00:39:20.860 --> 00:39:22.650 have no further questions before mate. 00:39:25.719 --> 00:39:28.210 Alright. Any other questions here at the commission 00:39:28.210 --> 00:39:31.190 office? (item:4:Concerns About Market Manipulation) Do y'all have any concerns about market manipulation 00:39:31.190 --> 00:39:33.150 given that all these plants came off at relatively 00:39:33.150 --> 00:39:36.519 at the same time. No concerns at this time but are 00:39:36.519 --> 00:39:40.309 Independent Market Monitor is tasked with investigating 00:39:40.309 --> 00:39:44.260 any potential market manipulation and if they see signs 00:39:44.260 --> 00:39:46.530 of trouble, they'll report it to the commission through 00:39:46.530 --> 00:39:50.960 the appropriate process. (item:4:Can You Explain the Two Extreme Risk Scenarios) Can you explain the two extreme 00:39:50.960 --> 00:39:53.340 risk scenarios where there will not be enough power 00:39:55.190 --> 00:40:00.530 from the SARA. So as you look across those extreme 00:40:00.530 --> 00:40:04.510 scenarios and even the first page which has more moderate 00:40:04.519 --> 00:40:09.010 scenarios, you'll see that we change one of the the 00:40:09.019 --> 00:40:13.570 variables to an extreme level. And then as you go across 00:40:13.570 --> 00:40:16.139 that page, we'll add a second extreme variable. And 00:40:16.139 --> 00:40:19.449 by the third item, that third column, there are three 00:40:19.449 --> 00:40:22.340 extreme scenarios occurring at one time. So as you 00:40:22.340 --> 00:40:25.599 can imagine as you go across that chart, there's lower 00:40:25.599 --> 00:40:28.590 and lower probability of those things occurring. Our 00:40:28.599 --> 00:40:34.079 main three variables are generation outages, low wind 00:40:34.090 --> 00:40:39.920 or renewable output and high heat in the cold, very 00:40:39.920 --> 00:40:42.820 cold temperatures. So those are the extremes that we 00:40:42.820 --> 00:40:46.019 adjust each time. And so that last category, that last 00:40:46.019 --> 00:40:48.949 column has all three of those in the extreme. And yes 00:40:48.960 --> 00:40:52.000 we do see some concerns in that category but it is 00:40:52.000 --> 00:40:55.619 a very unlikely scenario. And so as you move back away 00:40:55.619 --> 00:40:59.500 from that one or two of these high heat, even high 00:40:59.500 --> 00:41:02.719 generation outages, we seem fairly comfortable as we 00:41:02.719 --> 00:41:06.110 move up that that ladder. But as we said before, these 00:41:06.110 --> 00:41:08.849 are these are just studies to give you a sense to give 00:41:08.849 --> 00:41:13.110 you a level of comfort and and that's the most extreme 00:41:13.110 --> 00:41:16.550 of the extreme. (item:4:Can You Explain the OCN) Can you explained the O. C. N. But still 00:41:16.550 --> 00:41:20.449 in place versus what went out this past weekend versus 00:41:20.460 --> 00:41:23.389 if you are an emergency situation, what do people at 00:41:23.389 --> 00:41:26.239 home experiences? It alerts on their phones, alerts 00:41:26.250 --> 00:41:28.769 on tv what I mean? How do they know? How do we 00:41:28.769 --> 00:41:31.739 differentiate between proactive and actual emergency 00:41:32.309 --> 00:41:36.110 So the way people at home will learn is really through 00:41:36.110 --> 00:41:38.820 each of you. So we're communicating with the media 00:41:38.829 --> 00:41:40.940 to try to make sure that you know that if we move 00:41:40.940 --> 00:41:45.420 from a current normal status into an alert status that 00:41:45.420 --> 00:41:48.110 you should or an advisory, I should say. That's the 00:41:48.110 --> 00:41:50.599 first level that you should get information on that 00:41:50.599 --> 00:41:53.630 advisory and what that means. The O. C. N. Is really 00:41:53.630 --> 00:41:56.039 just within the industry. It's an operational condition 00:41:56.039 --> 00:41:59.219 notice it's just for us to communicate to transmission 00:41:59.219 --> 00:42:01.610 and generation companies to tell them something they 00:42:01.610 --> 00:42:04.559 probably already know but in this case it was, it's 00:42:04.559 --> 00:42:08.159 getting really hot prepare for the heat importantly 00:42:08.170 --> 00:42:12.250 Uh, your, your point about a true emergency condition 00:42:12.260 --> 00:42:16.219 is in addition to an entirely different set of circumstances 00:42:16.230 --> 00:42:18.769 in which in addition to communicating with you all 00:42:18.769 --> 00:42:23.309 in the media, the PUC and ERCOT would utilize uh, 00:42:23.320 --> 00:42:27.329 Tatum's communication system with local mayors counties 00:42:27.340 --> 00:42:31.869 and also leverage the text dot and DPS messaging system 00:42:31.880 --> 00:42:35.070 across the state. That's a function of new legislation 00:42:35.079 --> 00:42:38.750 from last session to ensure that if we do get in a 00:42:38.760 --> 00:42:41.909 truly dire emergency situation, there are multiple 00:42:41.909 --> 00:42:45.900 points of contact with all Texans uh, from state leadership 00:42:45.900 --> 00:42:49.369 down to local and city leadership. Uh, so if we do 00:42:49.369 --> 00:42:52.590 get in that situation it will be a much, much more 00:42:52.590 --> 00:42:56.710 robust form of communication. Sure. (item:4:Bloomberg News-Is The State Downplaying What We Are Experiencing) There's a couple 00:42:56.710 --> 00:43:00.780 of reporters to do the technical issues on their own 00:43:00.780 --> 00:43:04.599 I guess Green Mallic with Bloomberg News asks, given the 00:43:04.599 --> 00:43:07.519 record he conditions in May and texas and the grout 00:43:07.900 --> 00:43:11.579 the extreme demand scenario more of a possibility than 00:43:11.590 --> 00:43:15.409 the top line SARA view I've heard from power experts 00:43:15.409 --> 00:43:17.960 who say that the report is downplaying the reality 00:43:17.960 --> 00:43:19.619 of what the state is experience. 00:43:21.400 --> 00:43:24.909 I think those those predictions are based on data from 00:43:24.909 --> 00:43:30.110 ERCOT. Certainly I can't forecast the weather during 00:43:30.110 --> 00:43:32.550 the summer. I can't do that several months in advance 00:43:33.000 --> 00:43:35.690 Uh, there's every indication that we're facing will 00:43:35.690 --> 00:43:38.989 be facing a very hot summer. So that could mean that 00:43:38.989 --> 00:43:42.159 we're up that scale. But we provided each of you through 00:43:42.159 --> 00:43:45.929 the SARA information of what each of those potential 00:43:45.940 --> 00:43:49.130 Load scenarios might be. There's a high case for high 00:43:49.130 --> 00:43:52.280 forecasted Load there's an extreme case for extreme 00:43:52.280 --> 00:43:55.530 forecasted Load So you have the information you need 00:43:55.539 --> 00:43:58.679 and do, I think it's going to be a hot summer? I 00:43:58.679 --> 00:44:00.559 do think it's gonna be a hot summer. Sure facing that 00:44:00.559 --> 00:44:03.340 way. Could I be surprised by some rain storms that 00:44:03.340 --> 00:44:06.050 come in this weekend and cool things down? I certainly 00:44:06.050 --> 00:44:10.170 could be and would be gladly surprised by that. Most 00:44:10.170 --> 00:44:12.289 importantly we need to be prepared for every weather 00:44:12.289 --> 00:44:15.840 scenario hot cold and in between and that's what we're 00:44:15.840 --> 00:44:19.849 ready for. (item:4:Mitchell Ferman-Why Did They Call For Conservation At 5PM) Mitchell ferman with the texas tribune asks 00:44:19.880 --> 00:44:23.550 why did why did they decide to call for conservation 00:44:23.550 --> 00:44:26.760 on Friday at 5PM. Was it because Governor Abbott made the 00:44:26.760 --> 00:44:31.139 decision late afternoon on friday As we've discussed 00:44:31.139 --> 00:44:33.889 the decision was made as a result of the cascading 00:44:33.889 --> 00:44:37.260 sequence events. The most the final generator trip 00:44:37.260 --> 00:44:41.130 was around four pm. Yes sir. So I believe we've answered 00:44:41.130 --> 00:44:43.539 that question mitch and I'm sorry that you didn't get 00:44:43.539 --> 00:44:46.039 that answer earlier but we have answered it, it had 00:44:46.039 --> 00:44:47.820 to do with the sequence of events that occurred on 00:44:47.820 --> 00:44:50.980 friday looking forward not knowing whether those units 00:44:50.980 --> 00:44:53.699 would be able to make it back to the system over the 00:44:53.699 --> 00:44:56.980 weekend. We called for conservation on saturday and 00:44:56.980 --> 00:44:59.809 sunday. But fortunately those units did return. 00:45:03.159 --> 00:45:07.000 Good question. Thank you. Thank you. Thank you.