The Commissioner’s agreed that the clear intent of HB1500 stated an absolute net cost cap on the PCM of $1B.
TEF eligibility criteria, commitment to dispatchable generation, and slowing down the process were discussed at length. Concern about entities pulling out of the process as it progressed was discussed as well to avoid having unspent funds. The projects that are part of the process need to move all the way thru to completion of the facility and there need to be incentives to assure that completion.
It was noted that the 10-day period preceding the next open meeting is not suitable for rearguing policy calls.
CCN intervention deadline was reduced from 45 to 30 days.
Nuclear Working Group was discussed with Commissioner Glotfelty giving an update. The Nuclear issue is being discussed more broadly in the industry, and the University of Texas support was acknowledged.
PUCT established a new energy efficiency division as of March 1, 2024.
Chairman Gleeson called the March 7, 2024, meeting to order, and it lasted approximately 1 hour and 45 minutes.
The Chairman and Commissioners offered condolences and support to the Panhandle communities affected by the recent wildfires.
Efforts of first responders were recognized and appreciated.
20 - Docket No. 56168 – Commission Staff’s Petition for a Declaratory Order Interpreting 16 TAC § 25.475(b)(5). (Order on Certified Issues) Johann Rupp
ALJ filed Order No. 1 certifying two issues to the Commission: identifying affected persons and entities and determining notice methods for Commission Staff's petition.
Commission Staff motioned to debate due to settlement agreement with parties.
Proposal to move forward with providing feedback on certified issues to provide certainty to the retail market.
Emphasis on addressing legal questions and providing notice as per memo.
Recommendation to handle settlement agreements on an enforcement matter in a separate docket.
Agreement from Commissioners on the resolution of the issues
The motion to direct OPDM to draft an order on certified issues consistent with Commissioner Cobos' memo and the Commission's discussion was made.
The order would specifically find that the declaratory order can affect all representatives currently serving residential and small commercial customers under fixed rate contracts.
Notice will be provided to ERCOT, OPUC, ERCOT's retail market subcommittee, and all parties that participated in Docket No. 52322.
27 - Project No. 55000 – Performance Credit Mechanism (PCM). (Discussion and possible action) Werner Roth and Chris Brown
Chairman Gleeson referred to a memo he filed on the project and requested ERCOT and Commission Staff to provide additional information.
ERCOT was asked to present the filing they made on February 29th.
Ryan King made a filing for a design memo outlining 37 design parameters for the PCM design in collaboration with E3 and Commission Staff.
Default values in the memo are not final decisions but provide a baseline for studying different variables with the ability to hold others constant.
ERCOT plans to hold three workshops over three months to consult with stakeholders on the design, with the first workshop led by E3.
The filing represents the third iteration of the market initiative document and a shifting of timelines, aiming to get the required analysis by HB1500 done by January.
The billion-dollar cap discussed to be an absolute annual cap, not an average annual net cost cap.
Agreement among attendees that the intent of the legislation and the plain reading of the language is for a firm, absolute $1 billion cap.
Concerns raised about whether the implementation plan meets the requirements, with agreement that it does not.
Discussion on the need for broader input from Commissioners and stakeholders for a finalized implementation plan
Suggestions for greater stakeholder engagement, including the hosting of a work session for market participants.
Concerns raised about the compressed and rushed timeline, with recommendations for a more measured and process-oriented approach.
Discrepancies highlighted regarding the concurrent running of an updated cost assessment and codifying the design parameters into rules, raising concerns about compliance with the law.
Emphasis on the need for independent studies by the IMM and ERCOT to inform decision-making on the PCM.
General agreement among participants on the need to slow down the process and seek broader input from stakeholders.
Chad Seely discusses the market initiative timeline, seeking feedback.
The timeline is the third iteration, aiming to forecast future work, adaptable by the Commission working with Commission Staff.
Market initiatives started in August last year, with flexibility in the process.
Discussions on design parameters, modeling analysis, cost benefits, and engagement with IMM.
Consideration of slowing down workshops, updating timelines iteratively, and aiming for a mid-April workshop for stakeholders.
Support from ERCOT in preparing for the mid-April workshop, with a level set for stakeholders and the Commission weighing in on initial design parameters.
29 - Project No. 55826 – Texas Energy Fund In-ERCOT Generation Loan Program. (Discussion and possible action) David Gordon and Allison Fink
Discussion on eligibility criteria for industrial loads and puns participating in the TEF loan program, including geographic diversity and primary purpose of the program.
Consideration for MOUs, coops, and river authorities to participate in the program and the challenges related to registration and securing loans for public power entities.
Discussion on the loan structure, requirement for borrowers to grant a lien interest, and alternative options for public power entities to participate.
Concerns raised about entities withdrawing applications late in the process and the need to ensure loan recipients are incentivized to complete proposed generation projects.
Issues raised about conversation with bankers, the need for long-term commitment to reliable dispatchable generation, managing outlay process efficiently, and the importance of due diligence.
Reassurance of benefiting from expertise of consultant Deloitte, commitment to file a draft for public feedback, and specific contact points for questions and suggestions.
Emily Fink mentioned filing of the draft recommendation in advance, complexity of the rule, and staff's readiness to address specific feedback.
Commissioners expressed appreciation for the input from all stakeholders involved in the process and acknowledged the efforts of the PUCT team.
(Note: The 10-day period preceding the next open meeting is not suitable for rearguing policy calls.)
30 - Project No. 56253 – Review of §22.104. (Proposal for Publication) Mackenzie Arthur
Proposal to reduce CCN intervention deadline from 45 to 30 days.
Chairman Gleeson finds the proposal straightforward with no questions.
Proposal aims to accommodate new law with 180-day deadline.
Motion to approve PFP made and seconded, passed unanimously.
Agenda item 34: Project No. 55421, Texas Advanced Nuclear Reactor Working Group
Commissioner Glotfelty provided an update on the project.
Full meetings and subcommittee discussions on nuclear issues ongoing with great attendance and participation
Texas in competition with other states in the nuclear energy sector
President of NEI sees Texas as having great opportunity to lead in nuclear energy.
Nuclear discussions infiltrating various events and conferences.
Four upcoming nuclear-related events in the next month for attendees
Progress in Congress and Nuclear Regulatory Commission on legislation and rules for nuclear energy
Acknowledgment and appreciation for efforts of V.A. and University of Texas in supporting the initiative.
40 - Chairman Gleeson opens up item for update from Interim Executive Director
New energy efficiency division established on March 1st.
Ramya Ramaswami promoted to lead energy efficiency effort, with an acknowledgment of Ramya's contributions and professionalism in transitioning from market analysis duties to new role.
