Meeting Summary - 07/25/24 Open Meeting

Click here for 07/25/24 PUC Open Meeting summary on Project 56793 and Docket 56548.

0.1 - Chairman Gleeson asks for motion to approve items on Consent Agenda

• Recusal memos were filed in Project No. 52761.
• The Chairman is recused from Items 3, 4, 5, 9, and 10.
• Commissioner Hjaltman is recused from Items 2 and 7.
• Items 1, 3, 4, 5, 8, 13, 14, 16, and 24 placed on the Consent Agenda by individual ballot.

• Chairman Gleeson asks for a motion to approve the consent items as presented
• Motion approved unanimously.

2 - Docket No. 55255; SOAH Docket No. 473-24-02691 – Application of Southwestern Public Service Company to Amend Its Certificate of Convenience and Necessity to Construct Generation Facilities in Lamb County, Texas and Lea County, New Mexico; for Good-Cause Exceptions; and for Related Relief.

Proposal Submission: SOAH submitted a Proposal for Decision (PFD); all parties filed exceptions.

Administrative Law Judge (ALJ) Response: Recommended adding an ordering paragraph to the PFD.

Oral Arguments: Held on July 11.

Chairman Gleeson's Memo:

• Acknowledges case difficulty.
• Agrees with some ALJ aspects but disagrees on SPS's consideration of solar facility alternatives.
• Supports ALJ's conditions and recommends a favored nation clause.
• Emphasizes equal treatment for ratepayers and New Mexico customers.
• Agrees with NERC weatherization standards but undecided on cost cap.

Commissioner Cobos' Views:

• Agrees with Chairman Gleeson.
• Believes RFP process favored renewable resources.
• Supports solar projects but not battery facility.
• Prioritizes dispatchable generation for Winter PRM requirements.
• Calls for competitive future RFPs and balanced stakeholder pressures.

Commissioner Jackson's Stance:

• Open to cost cap discussion.
• Supports solar projects but questions production guarantee details.
• Discusses risk distribution and cost management in base rate case.

Production Tax Credit (PTC) and Guarantees:

• Importance of 100% PTC guarantee for cost-effective solar projects.
• Equitable distribution of PTC benefits is necessary.
• Production guarantee might be sufficient without cost cap, with AFUDC included.

Motion to Modify PFD: 

• Proposed to deny and modify parts of the PFD consistent with the memo and discussion.
• Delegated OPDM the authority to issue an order regarding third party prudence reviews.
• Motion passed without opposition

6 - Docket No. 56511 – Application of Southwestern Electric Power Company to Amend Its Distribution Cost Recovery Factor.

• Proposal for decision presented
• Cities advocating reasonable deregulation filed exceptions
• ALJ filed a letter in response stating no changes to the PFD are warranted
• Chairman Gleeson filed a memo with a simple correction

• Chairman Gleeson requested a motion to approve the proposed order consistent with his memo.There were no oppositions. 
• Chairman Gleeson recused himself for the next items (9 and 10) and handed over to Commissioner Cobos.

9 - Docket No. 56651 – Application of Energywell Texas, LLC for a Retail Electric Provider Certificate.

• Order No. 2 found the application deficient.
• Deadlines established and an opportunity to cure provided.
• Request for good cause exception denied.

• Motion to extend time to act on the appeal passes.

10 - Docket No. 56786 – Investigation of Berkshire Communities, LLC for Violations of PURA§§ 17.004(a), 39.102(a), 39.107(c), and 39.352(a) and 16 TAC §§ 25.107(a), 25.471, and 25.475(c).

• Commission Staff has opened an informal investigation for possible violations.
• Possible violations include unauthorized resale of electricity and denial of tenant's rights to choose a retail provider in areas subject to retail customer choice.
• Commission Staff requests the commission to issue an order to open a formal investigation.
• Purpose of the formal investigation is to determine which affiliated business entity is the proper respondent in this docket.

• Motion to authorize Commission Staff to institute a formal investigation of Berkshire for possible violation of PURA and Commission's rules.
• Directive for OPDM to develop and order consistent with the Commission's decision.
• Unanimous support expressed by members, followed by unanimous approval.

11 - Public comment for matters under the Commission’s jurisdiction but not specifically posted on this agenda

• Savant Moore, a public servant from Houston, comments on behalf of Houston residents.
• Moore criticizes CenterPoint's response to Hurricane Beryl and highlights prolonged power outages in Houston, especially in Northeast Houston.
• Moore points out that while CenterPoint executives faced brief power outages, his community endured 9 to 14 days without power.
• Moore notes the severe impact on vulnerable residents, including those dependent on electricity for medical reasons.
• He honors the memory of 24 residents who lost their lives, attributing half of these deaths to power loss.
• Moore criticizes CenterPoint's lack of vegetation management and disaster preparedness.
• Proposes several immediate actions to prevent future power outages and tragedies:
• Enhanced vegetation management to reduce risk of outages from fallen branches.
• Deployment of mobile power units in high-risk areas.
• Priority restoration for critical needs like hospitals and senior centers.
• Improved communication systems for real-time updates.
• Pre-storm inspections to identify and address weak infrastructure points.
• Pre-staging restoration teams for quick response.
• Emphasizes that this is a bipartisan and urgent Texas issue needing swift action to prevent future tragedies.
• Concludes with a call for compassionate action and protection for the community, invoking scripture and a blessing for Texas.

• Shelah Cisneros confirmed no one signed up to speak on rules or projects

18 - Project No. 54445 – Review of Protocols Adopted by the Independent Organization. (Discussion and possible action) Kim Van Winkle

ERCOT's Woody Rickerson on ECRS

• Prior to June 2023, ECRS capacity was purchased within responsive reserve ancillary service.
• ECRS acts as a reliability tool ensuring ten minute ramping capability.
• Over the last twelve months, ECRS was deployed 15% of the time, the system was short of ten minute ramping even with conservative release.
• ERCOT lacks synchronous ties to other interconnections unlike regions like MISO, New York, New England.
• ERCOT is relatively small, making forced outages more impactful.
• High penetration of solar and wind leads to more variability, risking operational stability.
• ECRS helps mitigate risks associated with forecast errors in wind and solar output.

• The proposed reductions in ECRS access time increase operational risks.
• While withholding ancillary services can be seen negatively, the high need for reliability justifies ECRS withholding.
• ERCOT agrees with the IMM that there is room for improvement without significant risk to reliability.

ERCOT's Woody Rickerson on NPRR1224

• NPRR1224 establishes a new third trigger for releasing the ECRS at a 40 megawatt threshold.
• There are already two triggers in place: frequency deviations and forecasted ramp deficiencies.
• The 40-megawatt trigger is set to improve the system's response, especially looking forward to future forecasted ramp problems.
• Lowering the trigger to something like 5 megawatts would result in numerous unnecessary deployments.
• Frequent manual deployment of ECRS is not desirable for system operators and should be reserved for material shortages, not minor ramp periods.

ERCOT's Woody Rickerson on $750 floor

• ERCOT relied on market participant input and TAC processes for setting the $750 floor.
• ERCOT believes there is a risk in demand fluctuations if a low floor is coupled with a low trigger.
• The Independent Market Monitor (IMM) argues that releasing Emergency Conditions Response Service (ECRS) usually does not result in ERCOT losing ECR's capability.
• In 85% of cases, retaining the ten-minute ramp is not a problem when ECRS is released, meaning 15% of the time there is.
• ERCOT uses ECRS as an insurance policy to manage system operations amid uncertainties.
• Maintaining ECRS is vital because predicting future demand and conditions is uncertain.

ERCOT's Woody Rickerson on working with IMM

• Agreement with IMM that deployment could be improved, especially compared to 2023.
• ERCOT has been working on improvements for the last six months with IMM and market participants.
• TAC requested ERCOT to review ECRS quantities in December 2023.
• ERCOT determined that the quantities being procured were appropriate for the risk, considering the isolated grid and high penetration renewables.
• Many concepts for 2024 were originally proposed by the IMM.
• Framework laid out in 1224 represents a balanced improvement over past practices.
• Thanks to Senator Menendez and Zafarini for sending their letter relating to NPRR1224.

Chairman Gleeson's question to Woody Rickerson concerning offer floor

• Initially, there was no offer floor proposed
• The NPRR was written to include the offer floor after gathering market input
• Chairman Gleeson noted he thought ERCOT was agnostic to the offer floor.
• Woody Rickerson confirmed the most important aspect of NPRR1224 for ERCOT is the trigger.

Commissioner Cobos' questions for Woody Rickerson on offer floor & working with IMM

• ERCOT's commitment involved working with IMM and stakeholders to improve ECRS deployment.
• The goal was to balance reliability with mitigating potential artificial pricing in the market.
• The $750 offer floor emerged from discussions, although ERCOT seemed to strongly advocate for it.
• The deployment trigger was identified as the most important aspect of the NPRR for ERCOT.

IMM & Potomac Economics President Dr. David Patton on ECRS

• Potmac Economics' comments to ERCOT's response regarding NPRR1224
• Complexity of the issue and differing perspectives with ERCOT.
• Market performance impacted by ECRS deployment in 2023, doubling energy prices.
• Dissagreement concering the deployment trigger and offer floor.
• Concerns that NPRR could institutionalize dysfunction or worsen market performance.
• Importance of deploying ECRS for market reliability.
• Explanation of SCED’s role and how not deploying ECRS can lead to price spikes.
• Analysis showing ORDC prices are efficient even without a $750 offer floor.
• 85% of the time, releasing ECRS does not cause shortages.
• Staff recommendation not to accept $750 offer floor recognized as reasonable.
• Importance of deployment trigger to avoid reliability issues.
• Concern about batteries being dispatched instead of being preserved.
• Preferred a price-based deployment trigger rather than a delay.
• Need to deploy ECRS before SCED goes short to prevent high costs.
• Brief discussion on NPRR1232 as a more aggressive approach.

Commissioner Hjaltman's question for Woody Rickerson and Dr. Patton on ECRS

• Woody Rickerson stated that 30% of ECRS is batteries.
• Discussion on how ECRS is triggered and its visibility to SCED.
• Clarification that deploying ECRS doesn't mean activation; it makes resources visible for economic decisions by SCED.
• Battery-related ECRS likely won't activate due to higher offer prices.
• Gas turbines are more likely to activate due to lower costs.
• Agreement from Dr. Patton on Woody's explanations.

Commissioner Glotfelty's thoughts on ECRS and batteries

• He finds it difficult to reconcile different points of view from the experts.
• He agrees with Woody on the importance of reliability and frequency issues.
• He believes that the market should dictate when batteries discharge based on pricing.
• Concerns raised about the creation and management of too many ancillary services.
• There is a need for an ancillary service study to define market purposes and usage.
• Commissioner Glotfelty is unsure of his stance on the issue and seeks further clarification.

Dr. Patton on batteries and ORDC flatness

• Historically, gas turbines were self-committed by market participants in response to price increases, ensuring resource availability.
• Currently, reliance on centrally procured resources has led to SCED running out of resources more frequently.
• Discharging batteries at the wrong times creates artificial price spikes ($1,000-$3,000) contrary to the actual supply and demand situation.
• ORDC prices should signal the real resource scarcity, but current procedures result in artificially high SCED prices while ORDC indicates adequate resources.
• SCED’s visibility is limited to resources available within ten minutes and doesn't account for offline resources, causing discrepancies between SCED and ORDC indications.
• Improving SCED’s resource visibility and coordination with ORDC could prevent artificial shortages and price spikes.

Woody Rickerson's additional thoughts on ECRS

• Agreed with the importance of ECRS as an insurance policy.
• Recent incidents: fire at a large plant and software failover issue, both necessitated deploying ECRS.
• Point of contention: IMM's proposal would cause more frequent deployment of ECRS.
• ERCOT's stance: Needs ECRS for reliability, does not want to frequently explain emergency operations to the PUC.
• Analogized holding ECRS to withholding responsive reserve regulation, creating an artificial shortage.
• Compliance with NPRR1232: Only part of ECRS would be released, not as aggressive as dumping all into the market.
• IMM's suggestion relies more on the market, whereas ERCOT prefers holding ECRS longer for reliability.

Dr. David Patton's additional thoughts on ECRS

• Clarification that reserves are maintained even after deployment.
• In worst-case scenarios, ramping down slow-moving steam units may delay the availability of megawatts, but this is rare.
• Marginal units, including combined cycles, gas turbines, and batteries, typically provide resources within ten minutes.
• Instances of lost reserves due to deployment are unlikely.
• Discussion on the importance of resource deployment strategy and maintaining reserves for contingencies.

Commissioner Cobos' Observation on ECRS

• Commissioner Cobos highlighted issues with all ancillary services reserving capacity out of the market.
• Concern about future capacity being held out with the introduction of DRRS, similar to ECRS.
• Questioned if the same discussions will recur as more ancillary services are added.
• Emphasized the need for a clear plan through the ancillary service study and the implementation of RTC.
• Highlighted the importance of identifying triggers for deploying ancillary services to avoid repeated issues.

Commissioner Jackson's question to Woody Rickerson on ECRS

• Woody Rickerson explains that deploying ECRS does not change the total capacity but affects the capability.
• When ECRS is deployed, the capacity is retained but may lose the ten-minute ramp guarantee.
• This capability is crucial for handling forced outages and ramp problems, especially with wind and solar energy.
• Quick response capacity is needed over slower ramping units in certain situations.
• Maintaining ECRS longer can ensure fast-ramping, ERCOT-qualified capacity availability.
• There is a concern that high-priced batteries may not always provide the ten-minute capability.
• Holding onto ECRS longer can mitigate potential issues though there are disagreements on the approach.

Chairman Gleeson's question to Dr. David Patton on ECRS and reduction of numbers

• If ECRS had been in place last year, costs would potentially have reduced from $12.5 billion to $5.7 billion or lower.
• Running the new deployment trigger with a $100 offer floor could reduce costs further to $3.6 billion.
• Suggested that reducing $3.6 billion inefficiency further to zero is possible by making resources more available.
• Analyzed that megawatts deployed would be more available and responsive for ERCOT’s contingencies.
• Discussed reliability and the need for timely deployment of ECRS to reduce price spikes and inefficiencies.
• Dr. Patton agreed that a zero offer instead of a $100 offer could reduce the costs further to around $3 billion.

Commissioner Glotfelty's question to Dr. David Patton on who is covering the cost

• Dr. Patton clarified that costs are not fully borne by consumers immediately but will eventually impact them.
• Settlements through ERCOT markets generate immediate costs, but most customers are under retail LSE contracts, avoiding the spot market.
• Forward prices for electricity have doubled for the next two summers due to price spikes, affecting future consumer rates when contracts are renewed.
• The addition of new resources like batteries and solar may help in reducing future price spikes.
• Forward prices are driven by expectations based on recent volatile prices.
• A surplus of resources should mitigate critical conditions and price spikes unless unusual weather occurs.
• The recent significant load growth reported could impact forward prices and offset gains from added resources.
• Dr. Patton emphasized that there are two distinct cost buckets: $600 million spent to buy ECRS and the effect on deployment decisions on energy prices.

Commissioner Cobos' questions on procurement and payment for ECRS

• Commissioner Cobos explained that the combined costs of ECRS include the $600 million procurement and the impact of reserved power on energy prices.
• The increased energy prices result in higher opportunity costs for ancillary services.
• The ancillary service prices rise because higher opportunity costs are linked to increased energy prices.
• A probabilistic model has been developed to determine the actual need for reserves to manage system risks.
• Preliminary analysis suggests that less reserve may be needed than currently procured.
• Higher procurement drives up reserve product prices due to limited suppliers.
• The $600 million spent is significantly higher compared to other regional transmission organizations (RTOs) for similar reserves.
• Increased reserve procurement leads to more resources being withheld from the energy market.

Commission Staff's Harika Basaran lays out Staff's memo on ECRS

• Three proposed solutions based on implementation timeframes, with a focus on IMM's long-term preferred solution.
• ERCOT's disagreement with the proposed long-term revisitation of methodology and a $600 million quantity figure.
• IMM proposed a medium-term standing deployment of ECRS with overflow, but this involved system changes.
• ERCOT agreed to explore short-term solutions, resulting in the submission of NPRR1224.
• Initial 30 megawatt trigger increased to 40 megawatts in the stakeholder process, with additional floor added.
• Staff's position focused on the trigger and its minimal objections except from IMM.
• No perceived need for an offer floor; preferred option is to implement the trigger without overflows.
• ORDC adjustments and revenue additions were discussed, pointing out current tools in effect for the summer.
• Alternative floor option between non-spin 75 and RAC highlighted from stakeholder discussions.
• Preferred Solution: Implement the trigger without any overflows as soon as possible.
• Alternative Solution: If a floor is necessary, it should be between non-spin 75 and RAC.

Chairman Gleeson's thoughts on Commission Staff's memo

• Chairman Gleeson discussed the importance of completing a task by August 1 as emphasized by ERCOT.
• Gleeson suggested rejecting NPRR1224 and using a trigger to meet the required date.
• General agreement that this solution is acceptable if the Commission wills it.
• Woody confirmed the possibility of implementing the solution without NPRR1224 given guidance from the dais.

Chairman Gleeson's thoughts on the process of the NPRR

• Chairman Gleeson expressed dissatisfaction with the NPRR process and emphasized the need to fix it.
• Critical information arrived post board decision, which affected the decision-making.
• Need for complete information before the Board Meeting for better decision making.
• Concerns raised about the Real-Time Co-optimization (RTC) process and its effectiveness.
• Focus on ensuring everyone has full information and a voice in the process for proper Board and Commission decisions.Chairman Gleeson did not file a memo due to uncertainty of position until the last minute.
• Supported the reduction from 12.5 billion to 3 billion for reliability costs, citing it as necessary despite some viewing it as inefficient.
• Ultimately, preferred rejecting the NPRR but open to hearing other thoughts.

Commissioner Cobos’ thoughts on the process

• The process is evolving and tough with ongoing information becoming available.
• Consistency in information throughout the stages is crucial.
• Lack of clear stance from ERCOT on offer floors until recent briefing.
• Need for candid feedback from stakeholders to avoid recurring issues.
• Importance of having best available information for decision making.
• Need for a meaningful change to be implemented by August 1.
• Debate on megawatt under generation figures (30 MW vs 40 MW).
• Offer floors deemed unnecessary; ORDC is the primary tool.
• Focus on deployment trigger as the main change.
• Possible rejection of current NPRR to implement suitable changes.
• Expectation of iterative improvements post initial implementation.
• Continued discussions on new ancillary services and RTC visibility.
• Support for Chairman's strategy.

Commissioner Jackson's thoughts on the process

• Supportive of rejecting and implementing the trigger as ERCOT recommended by August 1.
• Recognizes the need for RTC and improvements in the decision-making process.
• Emphasizes the importance of making decisions based on good data and science.
• Advocates for regular reviews of processes, especially when they aren't working well.
• Acknowledges changing times and multiple initiatives may necessitate process changes.
• Believes market participants and stakeholders should be involved in evaluating processes.
• Stresses that interrelated issues impact the system's overall performance.
• Agrees on the need to prioritize process evaluation.
• Supports rejecting the current proposition and implementing the 40 MW for the two scattered rolls without a floor.

Motion to approve the proposed order filed by Staff on July 18, 2024

• Motion to approve the proposed order filed by Staff on July 18, 2024 passed with no opposition.

Motion to reject NPRR1224

• Motion to reject NPRR1224 passed.

Executive Director Connie Corona confirms instructions from Commission

• Avoid porting the entire stakeholder process to the new initiative.
• Joint efforts among stakeholders to bring potential solutions.
• Brainstorming and presenting potential solutions to the staff for sharing with the Commission.
• Consideration to undertake the task at TAC.

19 - Project No. 54584 – Reliability Standard for the ERCOT Market. (Discussion and possible action) Werner Roth and Chris Brown

• Last month, Commission Staff recommended rejecting the Brattle default technology of an error derivative combustion turbine.
• Recommended sticking with the frame CT used in the 2012 CONE study.
• ERCOT filed the Brattle study and an additional memorandum since last meeting.
• Refined recommendation to maintain aspects of the 2012 CONE study for the 2024 recommendation.
• Maintain use of frame combustion turbines, stick with the 20-year life for cost recovery, and use level real dollars.
• New staff recommendation is $140 per kilowatt year, as filed in the ERCOT memo.

Commissioner Cobos' thoughts on Commission Staff's recommendation

• Concerns about using the LM6000 as the cost of new entry since it's not currently being built.
• Lack of discounted refurbished rates due to unavailability of information from generators.
• CONE figure should be based on a frame CT, which is the least cost of entry into the market.
• Support for a 20-year amortization as it aligns with industry standards.
• Preference for using level real dollars over nominal dollars to reflect actual costs per year without inflation effects.
• Proposal to start with frame CT, 20-year amortization, and real dollars, resulting in a cost of 140.

Commissioner's Jackson's thoughts on Commission Staff's recommendation

• ERCOT evaluated the use of Brattle's analysis.
• Comparison of 25-year vs. 20-year life for CONE CT.
• 20-year life favored by the financial community.
• Real levelization is deemed more sensible for frequent evaluations.
• Continuation with frame CT supported for current market design activities.

 Commissioner Hjaltman's thoughts on Commission Staff's recommendation

• Consideration of a range between 146 to 150 or slightly higher based on recent ERCOT data.
• Plans to possibly go lower afterward.

Chairman Gleeson's Question and Thoughts on Commission Staff's Recommendation

• Werner Roth recommends using a frame CT value of 140.
• The next review is suggested for 2026, reliability standard rulemaking will be presented next month and an update required for the cost of new entry in 2026.
• Chairman Gleeson is comfortable with the frame CT value of 140 and a review in 2026.

Commissioner Cobos' additional thoughts on Commission Staff's recommendation

• Discussion on the necessity to consider the impact of the new CONE figure on the peaker net margin.
• Mention of board meetings where updates from the IMM indicate that the CONE has been exceeded for several consecutive years.
• Observation that the 105 figure has not been updated in twelve years and no longer reflects current market conditions.
• Suggestion to use the updated number for the peaker net margin to better reflect the cost of new entry.
• Acknowledgment of the potential impacts on the LCAP but emphasis on the importance of the peaker net margin as a market revenue indicator.

ERCOT's Rebecca Zerwas on protocol revision request

• Feedback was sought for the five-year revision cadence.
• Consideration of updating the CONE with updates to the Commission every two and five years. Figure significantly impacts various areas of the market.

23 - Project No. 56022 – CY 2024 Reports of Texas Reliability Entity, Inc. (Discussion and possible action)

Texas RE's VP & COO Joseph Younger gives an overview of the 2023 Reliability, Performance & Regional Risk Assessment Report

• Outlined the report as an annual production solely by the Texas RE region.
• Focuses on independent reliability and security metrics of the bulk power system in the ERCOT interconnection.
• Highlights two main aspects: trends in system performance and identification of known and emerging risks.
• Uses data for risk-based compliance and outreach programs.
• Filed the report along with presentation slides in the project.

Texas RE's Director of Reliability Services David Penney gives information on 10 year report on ERCOT's interconnection

• NERC's Reliability Issues Steering Committee (RISC) identifies key risks to the bulk power system every two years: grid transformation, resilience to extreme events, cyber and physical security, critical infrastructure interdependencies, and energy policy.
• The report focuses on ERCOT's interconnection and complements the NERC state of reliability report, collecting data on transmission outages, performance, frequency, and event analysis.
• Performance metrics are rated as improving, stable, needing monitoring, or actionable based on trends.
• Significant improvements noted in resource weatherization post-Winter Storm Uri, with Senate Bill 3 and ERCOT's site visits being credited.
• Primary frequency response (PFR) has improved due to performance requirements for battery storage within ERCOT.
• Transmission outage rates caused by weather and equipment failures remain stable.
• Solar down ramp periods pose increasing risk, with down ramp magnitudes reaching up to 10,000 MW per hour.
• Human error contributes significantly to protection system misoperations, driven by aging utility personnel and new technology implementations.
• Forced outage rates for conventional generation, especially coal and lignite units, are increasing due to changes in operational patterns.
• Uptick in physical security incidents, particularly ballistic events, with 2024 numbers already exceeding those of 2023.
• IBR voltage ride-through issues identified as actionable, with ongoing activities and standards development aimed at addressing them.
• Highlighted risk areas for 2023 include remote access, gas-electric interdependencies, supply chain, and integration of large, flexible loads.
• Risk evaluations are based on likelihood and impact, with over a dozen webinars, multiple workshops, and compliance monitoring efforts undertaken in 2023.
• NERC is conducting an Interregional Transmission Capability Study to address risks posed by past winter storms.

Chairman Gleeson's Question on Electric Gas Coordination

• Chairman Gleeson mentioned that ERCOT has discussed the map with federal officials.
• Gleeson inquired if other Reliability Entities (REs) have adopted a similar map.
• Gleeson noted that he has not seen other companies implementing a similar map.
• Discussion on the importance of infrastructure interdependencies, particularly gas and electric interdependencies that have received significant attention.
• Emphasis on the importance of considering other critical industries like water supply and telecommunications, which can also impact plant operations.
• ERCOT collects outage data related to fuel issues and other factors like water supply and telecom issues.
• ERCOT's approach includes monitoring a broad spectrum of issues beyond just gas dependencies.

28 - Project No. 55421 – Texas Advanced Nuclear Reactor Working Group.

Commissioner Glotfelty gives his Nuclear Working Group update

• 18 members have been working and meeting often since October.
• Guest speakers have participated, and ideas have been delegated to four subcommittees.
• Four subcommittees: regulatory and ERCOT market design, demand and end users, higher education, development and manufacturing.
• Subcommittees have met monthly and sometimes weekly over the last ten months.
• Over 100 people have been involved each week.
• Forms for different ideas have been created and submitted to the final committee.
• Commission approved the subcommittee process as requested by the Governor.
• More information will be filed in the docket number.
• Subcommittee process is concluding, moving towards final ideas and writing of a report.
• Ideas will be available as soon as possible.

Chairman Gleeson's thoughts on Commissioner Glotfelty's nuclear update

• Important to integrate relevant findings into the agency report and legislative recommendations.

33 - Project No. 56822 – Investigation of Emergency Preparedness and Response by Utilities in Houston and Surrounding Communities. (Discussion and possible action) Connie Corona and Barksdale English

Executive Director Connie Corona lays out her memo on Staff's proposed scope & approach to the investigation

• PUC Executive Director Connie Corona filed a memo outlining the proposed scope and approach to the investigation.
• The investigation has 7 primary focus areas.
• One objective is to develop recommendations for utilities to share with the Legislature.
• Potential changes to Commission Rules will be evaluated.
• Short-term actions may be taken before the December 1 deadline.
• August will be dedicated to collecting data from electric and water service providers in the Greater Houston area.
• Impacted entities such as retail electric providers, communications providers, and industry groups are invited to respond.
• A workshop in October will collect best practices from subject matter experts on storm preparedness and response.
• An online portal for public comments from Houston residents and businesses will be launched in the next few weeks.

Chairman Gleeson's thoughts on PUC Executive Director Connie Corona's memo

• Chairman Gleeson acknowledged effective communication with state elected officials.
• Highlighted a letter from Mayor Whitmire.
• Urged the Governmental Relations Staff to engage with local elected officials for input.
• Emphasized the importance of hearing from local officials as they are closest to the constituents.

• Importance of sending RFIs to cities and critical care facility operators highlighted.
• Connie Corona asked to keep the council apprised of the progress on this matter.

34 - Project No. 50664 – Issues Related to The State of Disaster for Coronavirus Disease 2019. (Discussion and possible action) John Kelly

• Draft order filed requiring utilities to stop booking COVID-related expenses as of the date of this order.

• Motion to approve the proposed order filed on July 24 was introduced.
• The motion was approved with no opposition.

38 - Discussion and possible action regarding agency review by Sunset Advisory Commission, operating budget, strategic plan, appropriations request, project assignments, correspondence, staff reports, agency administrative issues, agency organization, fiscal matters and personnel policy. 

PUC Deputy Executive Director Barksdale English gives updates on TX Energy Funds, New Director of DCE.

• Texas Energy Funds: Loan applications due on Saturday, July 27 at 11:59 p.m. Central daylight time. Approximately ten to twelve applications submitted and around sixty in progress. A flurry of activity expected in the last 72 hours.
• New Director of Division of Compliance and Enforcement (DCE): John Lajzer appointed as new Director starting August 1. He has six months of experience at PUC and a substantial background in enforcement. His father was also an employee at PUC.

 Chairman Gleeson adjourns meeting

• The meeting of the Public Utility Commission of Texas adjourned.