Meeting Summary – 08/15/24 Open Meeting – CenterPoint Energy & Storm Response

51 – Project No. 56793 – Issues related to the Disaster Resulting from Hurricane Beryl.

• Chairman Gleeson introduced Items 51, 52, and 58.

Jason Ryan, CenterPoint’s Executive VP’s update on action plan

• Highlighted field activities, improved communications, and operations acceleration.
• Tree trimming along 2000 miles of distribution line expected by the end of month.
• 943 miles trimmed as of August 14
• Shrink the timeline for replacing 1000 wooden distribution poles with composite poles.
• Progress update: 640 poles replaced as of yesterday.
• Commitment to transparency with continual updates provided to the office, Legislature, and Governor’s Office.
• Plan to launch ‘Right Tree, Right Place’ initiative completed today.
• Future plans include readiness for the winter season and continued resilience efforts.

• File documentation for completed activities in Project 56793.
• Regular updates every Friday until the end of the month.
• Share work plan for the remainder of the hurricane season and upcoming winter season.
• Jason updated on the framework for showing the completion of action items.
• The framework aims to ensure transparency for the public, legislature, and internal stakeholders.

Commissioners comments on CenterPoint’s action plan

• Discussion on the progress report for field activities including tree trimming and conversion from wooden poles to composite poles.
• Focus on the highest-priority risk areas affected by Hurricane Beryl.
• Concern about remaining areas at risk during the rest of the hurricane season.
• Plan to address service areas as a whole beyond the initial 2000 riskiest miles.
• Engagement with customers about potential outages due to field work.
• Next phase of work to start in September, addressing remaining risky miles.
• Anticipation of meeting risk mitigation expectations during the current hurricane season.

• Ensuring the action plan addresses the entire service area.
• Timeline and expectations for mitigating risk during the remaining hurricane season.

• Eric to potentially share details of the next phase of the action plan.
• Finalization of the next phase of the action plan expected by next week.

Eric Easton, CenterPoint’s VP of Grid Transformation Investment Strategy

• Selection of risky miles based on vegetation proximity to circuits and outage concentrations during Hurricane Beryl.
• Consideration of critical circuits and customers in the prioritization process.
• Ongoing trimming of 2000 miles of circuits across the entire service territory.
• Prioritization extends to all 1800 feeders, focusing on vegetation encroachment and risk levels.
• Impact of storm path on the entire system with higher concentrations in areas with high vegetation and soil moisture.
• Focus on areas affected by droughts, winter storm Yuri, and excess rainfall.
• Evaluation of available resources and their allocation in future plans

Commissioners questions for CenterPoint on rate payer costs

• Concerns raised about how rate payer costs are validated, audited, and understood to be fair.
• Inquiry about auditing third-party costs, such as for vegetation management crews.
• Discussion on internal and external audit processes to ensure cost reasonableness.
• Acknowledgment of potentially higher costs in emergency situations, such as storms.
• Details on mutual assistance for storms and ongoing activities using external crews.
• Internal audit department and external audit firms will scrutinize costs.
• Plans for transparent cost review and separate filings for different storm events (Derecho and Hurricane Beryl).
• Consideration of scrutiny on food and lodging expenses provided to crews.
• Emphasis on the need for thorough and transparent audits for ratepayers’ knowledge.
• Follow-up question about cost impact and evaluation for new technologies like automated devices and AI.
• CenterPoint has the burden to prove the prudence of investments in technology during cost recovery filings.
• Transparency in audit functions, including denial of excessive costs, will be ensured.

Jason Ryan gives information on CenterPoint Open Houses

• 16 open houses around the greater Houston area are scheduled in August and September, split across weekends, weekdays, daytimes, and evenings.
• Events cover 12 counties, with multiple events in Harris County.
• Adjustments and additional open houses may be scheduled as needed based on customer response.
• Feedback will be collected through informal discussions, formal written comments, and interactive stations.
• Interpreters will be available for Spanish and Vietnamese speakers to accommodate Houston’s diverse community.
• Feedback methods are designed to document addresses and customer details for follow-up.
• Emphasis on ensuring customer feedback leads to actionable insights.
• Efforts communicated through social and local media coverage to raise awareness.

Connie Corona, PUC Executive Director gives recap of their work with CenterPoint

• Testimonies heard from Mr. Ryan and others at the Commission and Legislature.
• Progress reports provided in writing, information available on a website.
• Seeking a compiled list with expected completion date, progress report, and progress description.
• Staff working on compiling information with Mr. Ryan and the company.

Chairman Gleeson confirms the Commission’s Open Meeting in Houston

• Chairman Gleeson announced a Commission-led work session in Houston.
• The meeting is tentatively scheduled for Saturday, October 5.
• The session will include invited guests and public input related to Beryl issues.
• Approximately 15,000 public responses have been received through an open portal.
• Details about the agenda, date, and time are still being finalized with the Mayor’s office in Houston.

Jason Ryan on CenterPoint’s temporary emergency generation assets

• Jason Ryan provided context about the temporary emergency generation assets installed to mitigate risks post-Winter Storm Uri and subsequent legislation in 2021 and 2023.
• Large units primarily address the risk of load shedding, which disproportionately affects residential and small commercial customers in Houston due to the presence of large industrial consumers.
• Houston requires importing 60% of its power due to insufficient local generation; large units help mitigate risks posed by potential disruptions in transmission lines (e.g., due to natural disasters).
• These assets are seen as tools for various risks, with the necessity of maintaining a diverse and adequate fleet to handle different scenarios.
• CenterPoint commits to better transparency and communication about risk assessments and the size of their fleet through periodic filings and possibly independent assessments.
• There is ongoing evaluation of the affordability of these assets, with discussions on extending recovery periods to lower customer bills and re-assessing the need for these assets as new energy fund generators come online.
• Open to discussing whether CenterPoint should continue mitigating these risks or if these responsibilities should be relocated.
• CenterPoint intends to file periodic updates and engage in further discussions about the assets and their associated costs.

Jason Ryan on their filing under Project 56793

• Filed 250 pages of information in response to Miss Corona’s five questions.
• Most of the information pertains to leases of assets, specifically 232 pages for question one including short term and long term leases.
• Short term leases initiated in 2021 due to immediate needs during hurricane season and following Winter Storm Uri.
• Long term leases extend to 2029 with various amendments to ensure asset availability and vendor compliance.
• Smaller units leased following legislative amendments in 2023.
• Details and responses about units used, costs, and performance are provided in spreadsheets starting on page 233.
• No units owned by the company, all under lease as per law.
• Information on mutual assistance units received during Hurricane Beryl provided (pages 241).
• Incremental costs associated with unit usage during Hurricane Beryl are partially detailed, awaiting final invoices (page 243).
• Narrative on deployment process of assets during Hurricane Beryl provided (pages 245-250), including operational hours.

Eric Easton on CenterPoint’s circuit segmentation

• CenterPoint has made major changes in circuit segmentation and intelligent grid switching to improve load management.
• During Winter Storm Uri, manual attempts to segment circuits were made but were hindered by road conditions.
• Installation of intelligent grid switching devices has added approximately 400 MW of capacity for load rotation.
• An upcoming circuit segmentation study for ERCOT aims to install around 40 more devices for further enhancement.
• Current manual load rotation capability is about 3000 MW, leaving a 2000 MW deficit during Winter Storm Uri.
• Post-Uri improvements include investments in distribution systems, weatherization, dual fuel capability, and overall winter reliability and resiliency.
• There will be a re-analysis this year based on a new 19,000 MW benchmark.
• Load ratio share changes yearly and large industrial loads may come on faster than before, adding uncertainty.
• Calculations also consider factors like potential increases in wildfire risks, which could impact load shedding in the Houston area.
• Ongoing evaluations are being made on the number of units needed and deployment speed, which may require process and staffing changes.
• Past analyses will be provided to compare with current data to understand decision-making progress.
• Evaluation criteria also include considerations for loss of major transmission lines into Houston in load shed analyses.

Commissioner Hjaltman’s question to CenterPoint on stackable generators

• Commissioner Hjaltman asks CenterPoint if purchased generators for load shed can be replaced with smaller stackable generators.
• CenterPoint indicates that 5MW units can be paralleled at a substation.
• Each 32MW unit is connected at its own substation and is ready for use in various scenarios.
• Paralleling 1 MW units is not feasible due to physical space constraints at substations.
• 5 MW units are compared to tractor trailers, while 32MW units require cranes for assembly.

Commissioner Glotfelty’s question on canceling lease agreements

• Commissioner Glotfelty had questions about the termination clause in Amendment 5 of a lease agreement.
• Two different financial consequences were noted: a potential $53 million payment and a 25% of total cost ($125 million).
• Clarification sought on the consequences of canceling the leases today.
• Termination provision expired in March 2023 and extended till the end of 2023.
• No live provision exists that allows termination based on the prudence determination; it was contingent on a commission determination not being appealed.
• Only remaining termination option stems from vendor non-performance, which includes failure to provide 94% availability.
• Commissioner Hjaltman inquired about the possibility of changing out various units for better performance.
• It was confirmed that while the assets are tested and maintained for readiness, changing the assets requires mutual commercial agreement with the vendor.

Eric Easton on CenterPoint readying units

• Eric Easton described performance evaluations, including testing and deployment during Hurricane Beryl, affirming that proper procedures are in place for readiness.
• Discussion on readying units which progressed to EEA level, addressing the potential need for load shed.
• Confirmation that units were readied four times since the Uri event.
• Consideration of future scenarios including Texas Energy Fund generation impacting asset management.
• Acknowledgment of changes in load ratio share due to industrial and residential growth.
• Impact of legislation on reliability and resiliency of grid infrastructure.
• Request for a more transparent analysis of readiness and performance of units.
• Need to assess practical and pragmatic ways forward given current lease contracts.
• Concern about the cost and underutilization of mobile generation units.
• Inquiry about market rate differences for SMT 60 generating units and specifics of the CNP contract.
• Questions raised about the role and background of Goldfinch Energy in the contracts.

Commissioner Glotfelty’s question to CenterPoint on performance metrics

• Performance metrics for Lifecycle Power
  • Concerns about Lifecycle Power’s ability to meet performance metrics.
  • Questioning Lifecycle Power’s employee count and resources.
  • Use of escrow accounts and letters of credit as performance protections.
  • Lifecycle Power has fulfilled past obligations by bringing in external resources.
• Exploration of Lifecycle Power’s resources
  • Need for better understanding of Lifecycle Power’s transactions and resource availability.
  • Concerns about Lifecycle Power’s financial capability to lease generators without upfront financing.
• Litigation involving Lifecycle Power
  • Awareness of litigation involving Lifecycle Power CEO and his former firm.
  • CenterPoint not a party to the litigation but will follow up with information.
• Procurement practices before rule completion
  • Generators and leases procured before the Commission completed pertinent rules.
  • Discussion on whether this is a common practice for utilities.
  • Inclusion of contractual protections to allow for contract annulments if procurement deemed imprudent.
• Load ratio share calculations
  • ERCOT’s load ratio share calculated twice a year.
  • Importance of considering industrial load in fairness assessments for load share ratios.
• Distributed resources connection issues
  • Issues faced by distributed resources wanting to connect to the distribution system.
  • CenterPoint identified as having mediocre performance in terms of distributed resources connectivity.
  • Discussion on the necessity and cost implications of transfer trip devices for safe operation.

Eric Easton on distributed generation

• Safety concerns about distributed energy resources (DERs) backfeeding circuits when tripped.
• Risk to workers and the public from energized down power lines and potential unintended consequences like wildfires.
• Transfer trips ensure safety by isolating DERs during faults.
• Discussed the importance of considering societal benefits and funding of these safety devices.
• Problematic load variations due to recloser devices altering load numbers.

• Speaker: Jason Ryan
  • Emphasis on creating system resiliency allowing consumers and businesses to operate during interruptions.
  • Involvement of stakeholders in deciding the necessity and funding of safety devices.
• Speaker: Commissioner Cobos
  • Asked for the current MW load-shedding capacity.
  • Mentioned past testimonies about mobile generation units for hurricanes.
• Response: Eric Easton
  • Total capacity to rotate is 1700 MW.
  • Manual load shedding capacity is 3000 MW, with an additional 400 MW from IGSD devices.
  • Clarification on the difference between load shedding and load rotating.
• Speaker: Commissioner Cobos
  • Concern over testimony consistency regarding load rotation capability.
  • Request for a written explanation of load rotation and shedding capacities.
• Response: Eric Easton
  • Details on load shedding and rotating processes.
  • Clarification on the impact of procurement orders and available large units.
• Speaker: Commissioner Cobos
  • Request for a briefing on any changes in load rotation capability since initial procurement.
• Response: Eric Easton
  • Agreed to provide a briefing on changes in load rotation capability.

Commissioner Jackson’s question on managing risk

• Discussion on managing risk in three distinct areas: ERCOT mandates, 60% power input to Houston, and risks associated with operating traditional facilities in Houston.
• Emphasis on the importance of an independent assessment and study to ensure effective risk management.
• Mention of electrification issue and disparity between residential customer growth and industrial load growth in Houston.
• Concern on handling industrial load and its impact on residential customers if not included in the load ratio share.
• Suggestion to explore options regarding lease termination and subleasing to present to the Commission and Legislature

52 – Project No. 56822 – Investigation of Emergency Preparedness and Response by Utilities in Houston and Surrounding Communities.

58 – Discussion and possible action regarding customer service issues, including but not limited to correspondence and complaint issues.

Chairman Gleeson recalls discussion & possible action regarding customer service issues

• Items 52 and 58 were recalled for further discussion.

Connie Corona speaks on customer complaints concerning CenterPoint

• Call volume and informal complaints doubled since Hurricane Beryl.
• As of the close of business yesterday, there were 1320 complaints against CenterPoint.
• 65 complaints related to estimated meter reads while customers were not receiving service.
• Customers’ usage recorded on days they had not yet been restored.
• Connie Corona asks CenterPoint to explain the problem identification and resolution process.

Tony Gardner, CenterPoint’s SVP Chief Customer Officer on the estimated meter process

• Discussion on how the estimated meter process works.

• If power is on and unable to communicate with the meter, data is estimated at a 15-minute interval level.
• If power is off, usage is not estimated, and zeros are recorded for those intervals.
• Transmittal of data involves sending information to ERCOT and retail electric providers.

• In July, 2.9 million transmittals of meter usage data were sent.
• 96,000 of these contained some form of estimation.
• 74,000 meter reads showed a 30% lower usage compared to the prior year.

• Received 1300 meter dispute requests from retail providers.
• 16 requests resulted in reversed and rebilled charges.

Connie Corona’s question for CenterPoint concerning the modification of their standard operating procedure

• There were anomalies in customer usage data where usage was higher than expected, even when customers were out of service.
• CenterPoint uses a model that examines customer usage over the past three months to create exceptions and verify billing usage.
• They are actively fine-tuning this model to improve its accuracy and address anomalies, especially those caused by storms.
• Communication with customers about these issues was discussed, and representatives were asked how they handle customer interactions regarding unusual bills.

Christina Rollins, NRG’s Assistant General Counsel of Reg. Affairs on communication with customer

• Christina Rollins explained the process of TDUs sending usage data to reps/lses.
• Customers can view their daily usage on the Smart Meter Texas (SMT) portal and via weekly summary emails.
• During Hurricane Beryl, customers noticed usage data even when their power was out.
• NRG contacted TDUs (notably Centerpoint) to resolve the issue; it took about a week, resolved by July 29.
• An 867 transaction is used for monthly meter reads, and if estimates are used, it’s indicated on the bill.
• NRG prepared call center agents to explain the usage discrepancy to customers and inform them they wouldn’t be charged for power outage periods.
• Information about the issue was also updated on the online account maintenance portal and included in weekly summary emails.
• During the crisis, call center wait times were less than a minute, with a peak call volume of 44,000 calls in one day.
• Past instances of estimated meter readings during crises, such as Hurricane Uri, were also noted.

Commissioner Hjaltman’s question to CenterPoint & NRG on communication with customers

• CenterPoint acknowledges the need for better customer education regarding Smart Meter Texas information.
• Explained the delay in trueing up meter usage, which can take 2-5 days.
• REPs and TDUs are working on preventive measures to ensure accurate invoicing.
• Proposals to shorten the time between estimated reporting and outage recovery sequences..
• Suggestion to report zeros during large-scale outages instead of estimating usage.
• Emphasis on having frequent market calls to update about ongoing situations for better communication.
• Commitment from REPs to assist in communication using their resources and call centers.
• During past events like Hurricane Beryl, daily calls were hosted with REPs to update them on restoration efforts.

Connie Corona recaps discussion

• For the vast majority of customers, the problem was noticed when checking usage online.
• By the time the monthly bill was calculated and sent out by the retail electric provider, the issue was fully resolved.
• Customers with concerns about their bill should contact their retail electric provider.
• Assistance is also available from the Consumer Protection Division.

Barksdale English, PUC’s Deputy Executive Director concerning reports due to the Legislature & RFIs

• The Commission issued voluntary RFIs related to Hurricane Beryl recovery.
• Reports for the Legislature are due at the beginning of December; responses are due at the end of the month.
• Issued mandatory RFIs to about 90 utilities in the disaster-declared areas.
• Approximately 10% of the utilities had outdated contact information; utilities are reminded to update their information.
• RFIs were sent to 30 co-ops, 30 cities, 17 water utilities, and 9 telecommunications utilities.
• Utilities should respond to RFIs with ‘does not apply’ if questions are irrelevant to their operations.
• Utilities that did not receive direct communication from the Commission Staff are not required to respond.
• Responses to mandatory RFIs are due on August 30 and will be filed publicly under Project No. 56822.
• Any utility with questions or concerns about the RFIs should contact staff directly.
• Utilities that received direct communication must respond to the RFIs even if their utility was not impacted.

43 – Project No. 56897 – Electric Utility Outage Trackers and Hazardous Condition 

44 – Project No. 56898 – Provision of Emergency Contact Information to Transmission and Distribution Utilities by Retail Electric Providers.Reporting.

• Items 43 and 44 called up together

Commission Staff’s David Smeltzer on communication & outage trackers

• Focus on increasing and addressing communications and coordination issues from investigations.
• Requirement for TDUs to have an online electricity power outage tracker.
• Outage tracker essential for customers to get updates about power outages.
• Interest in comments on additional features and functionalities for these trackers.
• Addressing coordination issues where electric utilities may need to temporarily stop electric service for safety.
• Coordination needed with state agencies such as Railroad Commission, State Fire Marshall, and Public Utility Commission.
• Utilities to establish process to receive reliable information from state agencies to decide on power shutoff for addressing hazardous conditions.

Commission Staff’s David Smeltzer on emergency contact to TDUs by REPs

• Discussion of second rulemaking focused on individual customer communications during outages.
• Frustrations noted from past events like Hurricane Beryl due to lack of reliable information for customers.
• Proposal to change customer communication default from opt-in to opt-out.
• Retail Electric Providers (REPs) will be required to share customer information with Transmission and Distribution Utilities (TDUs) for emergency contacts.
• Emphasis on privacy and narrow use of customer information specifically for power outage status and restoration updates.
• Request for comments from utilities and REPs, including descriptions of current communication capabilities.
• Final objective is to adopt the best possible rule by ensuring all relevant facts are considered.

Commissioner Cobos lays out her memo on 56897

Commissioner Cobos presented her memo regarding Project No. 56897 related to the electric utility outage tracker.

• Proposed two changes:
  • Outage tracker should provide information in both English and Spanish where applicable.
  • Utility must immediately notify the commission if the outage tracker goes offline unexpectedly.
• These changes aim to enhance communication with the public and ensure the commission is aware of any outage tracker issues.
• Commission Staff agrees with these recommendations and praised their thoughtfulness.
• Staff advises publishing the rules as filed but with the added concepts incorporated into the draft.
• Suggested asking utilities to provide links to their current outage trackers for easier access and review.

Commissioner Cobos lays out her memo on Project 56898

• Commissioner Cobos recommends amending the proposal to require TDUs to provide affected customers with power outage information, estimated restoration times, and updates in both English and Spanish.
• Flexibility is suggested for coordination between representatives (Reps) and TDUs to determine best practices for this bilingual communication.
• Consumers often have a preferred language for communications, which should be respected.
• Existing consumer protection rules already require Reps to communicate in the language in which the customer was enrolled.
• Feedback is sought from retailers and customers on whether this bilingual practice should be extended.
• Comments are welcome on the logistical capabilities of TDUs to implement this change.

Motion to approve proposal for publication

• The motion to approve the proposal for publication with the identification number 56897 prevails.

Motion to approve proposal for publication

• Motion to approve proposals for publication in Project No. 56897 and 56898.
• Motion made consistent with Commissioner Cobos memos and the discussion.
• Motion carried unanimously. 

Click here for the Grid Monitor Summary on the rest of this Open Meeting’s agenda items not related to CenterPoint Energy and Storm Response related items.