Meeting Summary - 05/08/2025 Open Meeting

▶️0 - Chairman Gleeson calls meeting to order

▶️0.1 - Commission Counsel Shelah Cisneros lays out Consent Agenda

• Items 9 and 19 were placed on the consent agenda.
• No one signed up to speak on these items or any other agenda items.

• Chairman Gleeson requested a motion to approve the consent agenda.
• Motion to approve consent agenda passed unanimously.

▶️1 - Public comment for matters that are under the Commission’s jurisdiction, but not specifically posted on this agenda

• No public comments were registered for this agenda item.

2

• Not Discussed

▶️3 - Update from the Division of Utility Outreach regarding upcoming outreach activities

• Focus on future outreach activities planned by the division.

▶️3 - Tammy Benter - Director of Division of Utility Outreach -Increased efforts by Comm. Staff to better identify & support smaller distressed water & sewer utilities

• Commission Staff aims to better identify and support small utilities using data from TCEQ to monitor risk status and provide assistance before issues become critical.
• High-risk utilities are identified using fee and violation data from TCEQ.
• Targeted outreach includes dedicated mailers and free workshops for class D investor utilities with fewer than 500 connections, emphasizing the importance of maintaining records and meeting filing requirements.
• Introduction of quarterly group training sessions on bookkeeping, records management, and accounting for small utilities.
• Updates to rules and terminology, replacing outdated payment terms, e.g., substituting "bad check fee" with "declined payment".
• Continued support for abandoned utilities by providing guidance on temporary management transitions and conducting exit interviews to enhance practices.
• Development of an onboarding handbook to clarify responsibilities for temporary managers and receivers.
• Plans to create a new market entrant packet and a virtual tutorial course for guidance on navigating the PUC processes.

▶️3 - Chairman Gleeson & Commissioner's Thoughts

• Discussion on the importance of outreach to Class D utilities, which make up the largest proportion of utilities in the state.
• Emphasis on the benefits of helping utilities before they need a manager and being proactive rather than reactive.
• Discussion on targeting utilities in need based on compliance reporting and extending outreach to those doing well.
• Mention of the financial, managerial, and technical program available through the Texas Water Development Board and the AMPS process for asset management.
• Importance of identifying small communities and providing resources to prevent emergencies and financial burdens.
• Participation in trade fairs and conferences with TCEQ and Texas Rural Water to support small communities.
• Overall appreciation for the ongoing and new initiatives to support utilities, both struggling and successful, through increased resource availability.

▶️3 - Connie Corona - PUC Executive Director - Use of State resources

• Highlighted the utilities as small businesses, sometimes single proprietors.
• Emphasized the effective use of state resources to assist these utilities in navigating the regulatory process.

4-6

• Not Discussed

▶️7 - Project No. 57374 – Exemption Process for ERCOT Technical Standards

▶️7 - Allison Fink - Commission Staff - Update on Section 25.517

• ERCOT does not currently have a process for evaluating exemption requests from technical standards.
• Proposed Rule 25.517 would establish a process for resource owners to apply for exemptions from reliability requirements.
• A reliability requirement must be a mandatory technical standard that applies to existing resources.
• ERCOT staff would determine if a reliability requirement is subject to the new rule.
• Outcomes of exemption requests could include approval, conditional approval, extension, or denial.
• Resource owners can appeal to the Commission if unsatisfied with the exemption outcome.
• Issue 1: Concerns about unconstitutional taking of private property; Staff believes rule does not cause this.
• Issue 2: Whether ERCOT should evaluate cost to individual resource owners in exemption evaluations; Staff recommends ERCOT should not consider this cost.
• Issue 3: Definition of 'technically feasible' and whether it includes commercial availability and reasonableness; Staff recommends including availability but not commercial reasonableness.
• Issue 4: Definition of 'unacceptable reliability risk'; Staff recommends maintaining existing metrics from PFP.
• Issue 5: Definition of 'existing resource'; Staff recommends using commissioning date as defining milestone.
• Issue 6: ERCOT discretion to grant exemptions; Staff agrees ERCOT should grant exemptions if no unacceptable risks.
• Issue 7: ERCOT authority to revoke or modify exemptions; Staff recommends revisions aligned with ERCOT suggestions.

▶️7 - Chairman Gleeson's Thoughts on Staff's Recommendations

• Chairman Gleeson is generally in agreement with the Staff's recommendations.
• Clarification is sought on Item No. 2 regarding who should evaluate cost.
• Chairman Gleeson does not want ERCOT to accept unacceptable risk due to cost considerations.
• Cost is deemed important in risk analysis.
• Discussion on the scenario involving a generation loss threshold and the importance of knowing mitigation costs.
• Emphasis on not accepting a risk of 530 megawatts because of cost being perceived as too high.
• Collaboration with Chad Seely on understanding the approach towards evaluating cost and risk.

▶️7 - Chad Seely - ERCOT - Costs & Reliability Risk

• Costs can play a role in evaluating overall risk, but should not override reliability concerns.
• ERCOT has approximately 90+ exemption requests to process, indicating a substantial workload ahead.
• Current focus is on data evaluation, with potential quality issues that require collaboration with resource entities.
• Resource entities are working with manufacturers to provide necessary data, as part of NOGRR245 compliance.
• Mitigation solutions between ERCOT and IVR owners might involve cost considerations.
• In some instances, cost will not be a determining factor in decisions regarding reliability risk.
• ERCOT seeks discretion to address cost issues informally to avoid them becoming contested cases.
• If issues escalate to contested cases, cost information will become essential in the decision-making process.
• Balancing risk to the system with resource owner's costs is a key concern.

▶️7 - Chairman & Commissioner's Thoughts

• The focus should be on reliability over cost when making decisions.
• Staff aligns with the idea that ERCOT should not trade off reliability for cost.
• The Commission, rather than ERCOT, should weigh dollar amounts as a policy decision.
• ERCOT should consider cost in negotiations but prioritize grid reliability.
• The goal is to work with resource owners on mitigation to continue operations.
• Exemptions with conditions may work to mitigate risks for similar resources.
• Gathering comprehensive data helps achieve better outcomes.
• Aim to resolve issues at ERCOT level before presenting them to the Commission.

▶️7 - David Smeltzer - Commission Staff - Clarification of Process

• David Smeltzer from the Commission Staff addressed clarification needed on exemption evaluation criteria rather than the pragmatic process between ERCOT and stakeholders.
• Clarified that the rule is of general applicability, not limited to NOGRR245 or any specific technical requirement.
• Discussion involving NOGRR245 tends to influence and upset people, which was not the intention.
• Intended rule development focused on broad applicability rather than specific case studies like NOGRR245.
• Commissioner's question addressed the definition of "unacceptable reliability risk" recommending the removal of "unknown or unverified limitation".
• Emphasized the importance of the process involving transparency and stakeholder input for exemptions.
• No immediate action required from the Commission on the discussed agenda.

▶️8 - Project No. 53385 – Project to Submit Emergency Operations Plans and Related Documents under 16 TAC § 25.53

▶️8 - John Lajzer - Commission Staff - Update on Report

• A report from Guide House approved by Commissioners led to an investigation of approximately 300 electric entities that failed to file necessary documents.

• DICE opened 262 investigations and identified 76 entities that had filed some documentation.
• A corrective action plan was introduced to help entities comply by submitting missing documents by February 3rd.
• 73 out of 76 entities complied with the corrective action plan, achieving a 96% success rate.
• 30 entities opted to relinquish their PGC registration or rep certificate to avoid penalties.
• Approximately 30 findings of violations are in process, expected to be completed by the end of the month.
• John Lajzer commended his small team of 10 for handling the project effectively, mentioning Rachel Station specifically for managing 54 cases.
• The enforcement goal emphasized compliance over penalties, appreciating the corrective action approach.

▶️8 - Commissioner's thoughts

• Many operators are very small, ranging from one to five megawatts, posing unique challenges.
• Emphasized focus on compliance and the path taken in dealing with cases sets future expectations.
• Highlighted the importance of emergency operations plans for operational responsiveness, resiliency, and reliability.
• Emergency operations plans form an indicator of the operators' performance and their service quality to Texas and its ratepayers.
• The approach should be supportive, focusing on compliance and assistance, rather than punitive.

▶️10 - Project No. 57925 – Compliance Reporting Portal Updates

▶️10 - Rama Rastogi - Commission Staff - Findings from TDSP compliance reports review

• The project involved reviewing TDSP compliance reports to streamline processes, reduce compliance burden, and improve data accessibility.
• Two opportunities for improvement were identified.
• Establish a compliance reporting portal to enhance data accessibility.
• An implementation plan for the portal is laid out in three phases.
• Phase one involves transitioning monthly transmission construction reports this month and prepping Permian Basin reporting for the portal.
• Phases two and three will have separate schedules and implementation plans after phase one completion.
• Second opportunity: Recommend amendments to rule subsections and repeal to optimize reporting requirements and reflect current law.
• Staff requested comments and guidance from the Commissioners.

▶️10 - Chairman Gleeson & Commissioner's Thoughts

• Agreement on the importance of government efficiency at both state and federal levels.
• Support for initiatives to improve efficiency and effectiveness.
• Emphasis on data accessibility and the importance of centralized data for staff, business community, and stakeholders.
• Benefits of having all relevant data and information in a centralized location for better tracking and projection planning.
• Discussion of ongoing and future efforts in the Permian region with a focus on transparency and efficiency.
• Highlighting new system advantages over current systems and assurance of not losing current functionalities.
• Request for further explanation of the system's different views and how they improve transparency and usability.

▶️10 - Rama Rastogi - Commission Staff - Intention for the portal

• The portal will serve as a forward-looking database.
• Current monthly transmission construction reports until July 15 will remain on the AIS; new and in-progress projects will transition to the compliance reporting portal.
• The shift aims to enhance flexibility in data shaping and information requests for better accessibility.
• The goal is improved utility of reports for necessary regulation purposes.

11-12

• Not Discussed

▶️13 - Project No. 41210 - Information Related to the Southwest Power Pool Regional State Committee

▶️13 - Commissioner Jackson - Update on SPP's Regional Committee meeting

• Commissioner Jackson attended SPP's Regional State Committee meeting in Omaha.
• A record number of voting items were discussed and several were highlighted.
• Implementation of an expedited resource adequacy study process was approved, which includes:
• Priority processing for ERIS generation requests
• Limits based on LRE forecasted deficiencies
• Transmission upgrades eligibility
• A system-wide needs assessment was approved to justify the ERIS process.
• The 2029 planning reserve margin revision request was approved, setting benefiting Texas’s growing demand:
• 17% PRM for Summer 2029
• 38% PRM for Winter 2029
• A revision request to create five zones to share costs of transmission upgrades below 300 kV was approved. However, there was no support from Commissioner Jackson due to unclear cost allocation impact on Texas.
• Approved to allow transmission customers to add new delivery points quickly with their planned generation.

14-17 

• Not Discussed

▶️18 - Project No. 57606 – CY 2025 Rulemaking Calendar

▶️18 - David Smeltzer - Commission Staff - Notice on rulemaking calendar

• Information regarding the reinstitution of filing regular rulemaking calendars.
• This practice was disrupted due to high uncertainty and overlapping reports towards the end of last year.
• The rulemaking calendar will provide stakeholders with insight into ERCOT's ongoing and future projects.
• Currently, there are 17 active projects, but not all are reflected in the calendar.
• The aim is to make the process more transparent and keep stakeholders informed.
• There was a suggestion to provide updates on ongoing projects to remind stakeholders of concurrent work being done.
• The importance of public availability and discussion of the rulemaking calendar was emphasized.
• David expressed willingness to accommodate additional update requests from Commissioners beyond the regular filings.

20-23

• Not Discussed

▶️23 - Chairman Gleeson adjourns meeting