Meeting Summary – 10/03/24 Open Meeting

0 – Chairman Gleeson calls meeting to order

0.1 – Commission Counsel Shelah Cisneros lays out Consent Agenda

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

• No public comments were signed up for this agenda item.

6 – Docket No. 54698 – Application of Cresson Municipal Utility District No. 1 of Hood County for a Certificate of Convenience and Necessity in Hood County

• Presentation of the proposed order for the application of Cresson Municipal Utility District No. 1 for a CCN in Hood County.
• No corrections or exceptions were filed by the parties involved.
• Chairman Gleeson submitted a memo indicating he believes Cresson MUD No. 1 did not meet all CCN requirements.
• Recommendation to remand the case back to docket management.
• Agreement among participants to remand as the appropriate next step.

6.1 – Motion to approve proposed order, 54698

• Motion to approve the proposed order was consistent with a memo.
• The motion was made and approved.

9 – Docket No. 55808 – Petition of MM Terrell 1098, LLC to Amend Rose Hill Special Utility District’s Certificate of Convenience and Necessity in Kaufman County by Streamlined Expedited Release

• Revised proposed order presented.
• Chairman Gleeson filed a memo in this docket.
• Chairman Gleeson recommends reversing the ALJ’s decision and approving the request.
• Main reason: presence of taps but absence of meters, indicating no active service.
• General agreement among participants to approve the streamlined expedited release.

9.1 – Motion to direct docket management to prepare an order approving streamlined expedited release, 55808

• Motion made to direct docket management to prepare an order for a streamlined expedited release was approved.

14 – Docket No. 56636 – WGA Cardiff, LLC and Heritage Cardiff SPE, LLC’s Appeal of the Decision by Northwest Harris County Municipal Utility District No. 36 to Change Rates

• Discussion on the appeal by WGA Cardiff and Heritage Cardiff regarding the rate change by Northwest Harris County Municipal Utility District No. 36.
• Consideration of the proposal for decision and the filings of exceptions and replies.
• An ALJ recommended a correction to one of the findings of fact.
• Chairman Gleeson filed a memo on the docket.
• Consensus to dismiss the case without prejudice due to lack of jurisdiction not being an issue related to timeline or deadline.

14.1 – Motion to Modify PDF to Dismiss Appeal, 56636

• A motion was made to modify the PDF to dismiss the appeal consistent with a memo.
• The motion was made and approved.

17-18  

• Not Discussed 

20 – Docket No. 55728; SOAH Docket No. 473-24-04701 – Application of the City of San Antonio, Acting By and Through the City Public Service Board (CPS Energy), to Amend Its Certificate of Convenience and Necessity for the Proposed SAT 15 138-kV Transmission Line Project in Bexar County

• The application is for amending the CCN for the proposed 138 kV transmission line project in Bexar County.
• The docket has been remanded by the Commission twice; once to docket management and once to SOAH.
• Currently, there is a SOAH proposed order on remand with no corrections or exceptions filed by any parties.
• Chairman Gleeson has filed a memo regarding this docket.
• Concerns were raised about Route S, leading to a preference for proceeding with Route H instead.

20.1 – Commissioner thoughts on Chairman Gleeson’s memo, 55728

• There is consensus that typically people should be allowed to reroute on their own property, but considerations must be made when it impacts additional habitable structures.
• The Commissioners agree with Chairman Gleeson’s memo and the recommendation to modify the route.
• Encouraging settlement agreements is important, but there are cases where it’s justified to move away from them based on underlying facts.
• There is agreement that Route H should be approved as it is superior to the proposed Route S.

20.2 – Motion to Modify Proposed Order

• Motion made to modify the proposed order on remand, with changes that were outlined in Chairman Gleeson’s memo was approved.

22 – Docket No. 56168 – Commission Staff’s Petition for a Declaratory Order Interpreting 16 TAC § 25.475(b)(5)

• A proposed declaratory order was presented.
• No corrections or exceptions were filed by the parties involved.
• Commissioner Cobos filed a memo related to this docket.

22.1 – Commissioner Cobos lays out her memo, 56168

• Commissioner Cobos agrees with approving the proposed order agreed by all parties, including staff and representatives involved in the proceeding at OPUC.
• Proposes additional clarifying changes to specify cutoff dates for the impacts of the proposed order.
• Clarification that REPs may not vary the price under a fixed rate contract entered on or after January 11, 2022, to recover fluctuations in default charges.
• Applies similar conditions for uplift charges with a cutoff date for contracts entered on or after August 1, 2022.
• Aims for clarity to prevent confusion within the REP community and to guide the enforcement team effectively.

22.2 – Commissioner Glotfelty’s thoughts on Commissioner Cobos’ memo, 56168

• Commissioner Glotfelty expresses cautious support for Commissioner Cobos’ memo and the related processes.
• There is concern about the impact on REPs due to changes, specifically regarding securitization proceedings related to Winter Storm Uri.
• Emphasis on the need to be cautious about modifications allowed for fixed price contracts by retail electric providers.
• Acknowledgment that businesses typically pass through costs required by government to consumers.
• A consensus appears around the ultimate determination of the declaratory order.
• There are specific rules dictating when costs can be passed through under different circumstances.

22.3 – Motion to Approve Proposed Declaratory Order with Changes from Commissioner Cobos’ Memo, 56168

• Motion made to approve the proposed declaratory order with changes from Commissioner Cobos’ memo passed.

37-39

• Not Discussed

40 – Project No. 55999 – Reports of the Electric Reliability Council of Texas

40.1 – Commission Staff’s Ramya Ramaswamy with update on filed report from ERCOT & Texas A&M 

• ERCOT has filed a report from Texas A&M on energy efficiency and demand response.
• Doctor Li Shi, who worked on the report, will present findings on October 15.
• No questions were asked by the commissioners during this update.

41

•  Not Discussed

42 – Project No. 55845 – Review of Ancillary Services in the ERCOT Market

• Update provided by Staff.

42.1 – Commission Staff’s Harika Basaran on Collaboration with ERCOT & IMM, 55845

• Harika Basaran mentioned the collaboration with ERCOT and IMM as positive.
• Julie Golden was scheduled to go over the memo and next steps.

42.2 – Commission Staff’s Julie Golden with Update on Draft Report Filed by ERCOT & IMM, 55845

• Julie Golden emphasized the team effort involved in the draft report preparation.
• A draft report was filed on October 1 with ERCOT and IMM’s review results.
• Staff recommendations were intentionally excluded from the draft.
• A workshop is scheduled for October 31 to gather additional stakeholder input.
• A set of questions concerning the report will be finalized and filed by October 7 for feedback.
• Two-week period allocated for comments.
• Stakeholders have been involved throughout the process at TAC.
• Workshop agenda to be published by October 28.
• Staff’s draft recommendations and analysis will be submitted by November 14.
• Three meetings will be available to discuss recommendations before the agency report is finalized.

42.3 – Chairman and Commissioners thoughts on report update, 55845

• Agreement on the proposed timeline with three open meetings for deliberation before making a decision.
• Emphasized importance of discussing final recommendations for the study.
• Highlighted the significance of considering overall efficiency and long-term benefits for the grid.
• Mention of the need to focus on the path forward regarding ancillary services.
• Noted the importance of considering legislative creation of DRRS (Demand Response Resource Services).
• Request for understanding the role of ERCOT as a grid reliability tool.
• Discussion on the placement of ERCOT tools after a grid emergency alert (EEA).

43-44

• Not Discussed

45 – Project No. 55421 – Texas Advanced Nuclear Reactor Working Group

• Project No. 55421 regarding the Texas Advanced Nuclear Reactor Working Group was discussed.
• Commissioner Glotfelty provided an update related to the project.

45.1 – Commissioner Glotfelty’s update on Texas Advanced Nuclear Reactor Working Group

• A report has been written and appendices completed.
• UT’s Bureau of Business Research conducted a study on the impact of building varying amounts of reactors in Texas and the US on economic growth, showing substantial potential.
• The report is pending final approval before release.
• Upon approval, the report will be available on the website and filed in the project documentation.
• Acknowledgment of the significant impact this project could have on Texas.

46-54 

• Not Discussed

57 – Project No. 56793 – Issues Related to the Disaster Resulting from Hurricane Beryl

• Items 57 and 58 brought up together.

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

58.1 – Executive Director Connie Corona with information on upcoming Houston workshop, 56822

• A more detailed update will be provided at the upcoming workshop in Houston.
• The workshop starts at 09:00 a.m. at the Harris County Department of Education’s Ronald Reagan building. Parking is available for attendees.
• Members of the public are invited to provide verbal comments.
• The workshop will be streamed live for those who cannot attend in person.
• Chairman Gleeson expressed anticipation for feedback from Houstonians and surrounding areas.

59 – 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

59.1 – Connie Corona with report update on Texas Backup Power Package Advisory Committee

• The Texas Backup Power Package Advisory Committee filed a report on October 1.
• The report will assist in crafting a rule, supported by additional inputs from research entities.
• A preliminary report is already available, with another expected in the coming weeks.
• The report is well-organized and provides direct feedback for rulemaking.
• Connie will be testifying before the TEF advisory committee on Tuesday morning.
• No questions were raised for Connie during the meeting.
• The meeting concluded without any closed sessions.

60-62

• Not Discussed