0 – Chairman Gleeson calls meeting to order

0.1 – Commission Counsel Shelah Cisneros lays out Consent Agenda

• Shelah Cisneros announces items placed on the consent agenda.
• Items on consent agenda: 2, 5, 6, 7, 9, 10, 13, 16, 17, 18, 21, 22, 24, 26, 28, 30, and 31.
• No consent items for the Rules and Projects section.

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

Alan Hicks – Neighbors of Windermere Oaks WSC

• Alan Hicks, along with neighbors from Windermere Oaks Water Supply Corporation, supports appointing a temporary manager for the water supply corporation.

 Danny Flunker – Neighbors of Windermere Oaks WSC

• Danny Flunker did not have a prepared statement but wanted to emphasize several points, with hopes for a decision granting the board no authority in the issue.

Jeff Walker – Windermere Oaks WSC Board Member & Attorney

• Jeff Walker provided an update on revenue losses, with October losses amounting to $12,000. Confirmed organization struggles to sustain operations.

3 – Docket No. 54683…

• Revised proposed order for the application of EnviroManagement to change rates was presented.
• Chairman Gleeson filed a memo pointing out peculiarities in the docket.
• Commission Staff was requested to provide clarification to ensure accuracy in the proceedings.

 3 – Ian Groetsch – Commission Staff with update on revised tariff

• Ian Groetsch from Commission Staff acknowledged a misunderstanding regarding a 7 cent pass through fee that was omitted from the tariff.
• Commission Staff apologized for the mistake and proposed to file a revised tariff to correct the issue.
• It was suggested to remand the matter back to docket management.
• Commission Staff will be given the opportunity to file the revised tariff and a motion to enter it into evidence.
• The Administrative Law Judge (ALJ) will be tasked with filing a revised proposed order for discussion in a future meeting.

• Staff was allowed to file a revised tariff and a motion to admit it as evidence.
• Docket Management was directed to file a revised proposed order.
• Motion was passed with unanimous approval.

4 – Docket No. 56059…

• The petition of MC Trilogy Texas aims to amend the City of Heath’s certificate in Rockwall County.
• The amendment is regarding a streamlined expedited release.
• A proposed order was presented with no corrections or exceptions filed.
• Chairman Gleeson filed a memo to clarify differences between properties and tracks.
• Overall consensus was supportive of the proposed order.

• A motion to approve the proposed order was approved with unanimous approval.

8 – Docket No. 56798…

• The item is a proposal for decision regarding the petition of the City of Marion.
• No corrections or exceptions were filed for the proposal.
• There is consensus that the Administrative Law Judge (ALJ) ruled correctly.
• Concerns were raised about the lack of jurisdiction to address the issue.
• Participants expressed sympathy for the community impacted by the situation.
• Discussion included the possibility of reviewing how similar situations can be managed in the future.

• Motion to adopt the proposal for decision was moved with unanimous approval.

11 – Docket No. 57065…

• Docket No. 57065 addresses the petition to appoint a temporary manager for Windermere Oaks Water Supply Corporation.
• Chairman Gleeson submitted a memo related to the matter.
• The previous meeting did not have the temporary manager present.
• There was a request for the temporary manager to attend the current meeting.

 11 – Carlos Rubinstein

• Carlos Rubinstein introduced himself as an advisor to Anser Advisory Services, highlighting his experience in managing troubled systems, primarily in Florida.
• Anser Advisory Services currently manages over 70 communities, a budget of $100 million, and a CIP of $200 million, with extensive experience in managing systems transitioning to Water Supply Corporations.
• Anser serves as a temporary manager for abandoned systems near Lubbock, Texas, and is in the process of converting these systems into Water Supply Corporations.
• Funding has been allocated by the Water Development Board for repairing deficiencies in these systems once they become public subdivisions of the state.
• Anser is aware of and prepared to address issues at Windermere Oaks WSC, having been informed and in contact with relevant stakeholders and documents.
• Anser is prepared to work with the board to define the responsibilities for this unique case, emphasizing the importance of identifying root causes of deficiencies.
• Carlos Rubinstein noted the difficulty in managing overlapping powers but affirmed readiness to collaborate for problem diagnosis and resolution.
• Anser is prepared to file for temporary rates crucial for maintaining utilities’ sustainability, consistent with previous actions taken in Lubbock.
• Discussion was opened to Commissioners for any further questions or comments.

 11 – Commissioner’s Questions to Carlos Rubinstein

• Carlos Rubinstein acknowledged the expertise of their advisory group in managing capital improvements and major projects efficiently.
• The temporary manager’s responsibilities include day-to-day operations and addressing customer complaints.
• Rubinstein emphasized the importance of operational aspects and asset management for getting utilities to a sustainable position.
• He shared past experience with similar cases, such as the La Joya Water Supply Corporation, to outline the approach to identifying corrective actions.
• Rubinstein is confident in collaborating with leadership to set roles and responsibilities to achieve a successful outcome.
• It was noted that serving two masters can lead to challenges, highlighting the need for a temporary manager to prioritize the utility’s best interests.
• The importance of making decisions that ensure clean water and wastewater services for consumers was stressed.
• Rubinstein discussed past engagements with existing boards and emphasized the critical nature of understanding the entirety of the situation.
• Anser, now part of Accenture, has local offices in Texas to effectively manage duties without relying on remote personnel.
• Limited information related to recusals was acknowledged at the end of the discussion.

11 – Barksdale English

• Temporary manager has authority to ensure continued service under the water code.
• Collaboration between the temporary manager and the board is encouraged for community benefits.
• If the board makes unfavorable decisions for the Water Supply Corporation, the temporary manager gets the final decision to right the course.
• Importance of community healing and finding a path forward is emphasized.
• Chairman and Commissioner express reliance on involved experts to address concerns.

• A motion was proposed to direct OPDM to draft an order in line with Chairman Gleeson’s memo.
• The motion passed with unanimous approval.

12 

•  Not Discussed

14 – Docket No. 55255… 

• Review of Docket No. 55255 regarding Southwestern Public Service Company’s application to amend its Certificate of Convenience and Necessity (CCN).
• Construction of generation facilities in Lamb County, Texas, and Lea County, New Mexico discussed.
• Consideration of multiple motions for rehearing related to the docket.
• Chairman Gleeson filed a memo addressing the docket.

14 – Chairman Gleeson lays out his memo

• Chairman Gleeson believes some issues in the memo and rehearing are straightforward.
• A decision is needed on whether to use a third-party consultant to assess prudence or to implement a cost cap.
• Chairman Gleeson is against a cost cap but suggests commission staff should consult with SPS, XAM, TIEC, and OPUC.
• He proposes that these parties should be involved in moving forward.
• Chairman Gleeson clarifies a previous misstatement, noting that SPS had agreed to pay for certain costs.
• He suggests honoring SPS’s offer to cover these costs.

14 – Commissioner’s thoughts on the Chairman’s memo

• General agreement with Chairman’s suggested modifications in the memo.
• Discussion on not imposing cost caps in CCN proceedings for generation plants.
• Previous stance was that SPS should pay for and bear the costs.
• Other parties should be involved in selecting the consultant.
• SPS, as the regulated utility, will go through a rate case to evaluate costs.
• Support for the Commission Staff, in consultation with others, to issue an RFP for selecting a third-party consultant.
• Agreement with not adopting Texas-only method of determining capacity need.
• Support for what is included in the Chairman’s memo and in agreement with its contents.

• Entertained a motion to grant rehearing in part.
• Directed OPDM to draft an order on rehearing consistent with a specific memo.
• Motion was passed with unanimous approval.

15 – Docket No. 55768…

• CenterPoint Energy Houston Electric, LLC submitted an application to amend its Certificate of Convenience and Necessity for a proposed 138-kV transmission line.
• The proposed transmission line is planned for Harris and Montgomery Counties.
• A SOAH proposal for decision PFD was presented.
• Exceptions and replies to the PFD were filed.
• The SOAH Administrative Law Judge declined to make changes to the PFD via a letter.
• A Commission Counsel memo recommending a change to the final order was filed.
• Chairman Gleeson also filed a memo on the matter.
• There was a discussion around deciding between PFD routes 2A and 4A, with a leaning towards route 4A on balance.
• Participants were open to discussing other route options based on their merits.

15 – Commissioner Glotfelty’s Thoughts on the Chairman’s Memo

• Commissioner Glotfelty supports option 2A, believing it meets Commission criteria best.
• Following existing rights of way is considered one of the most important criteria.
• Minimizing turning structures is emphasized due to their cost.
• There’s an acknowledgment of increasing transmission projects as the population grows, especially in rural areas.
• Emphasis on a standard process for judging transmission routes to be fair to consumers and utilities.
• Discussion about cost estimates for option 2A, which was $5 million more expensive for a minimal additional distance.
• There was a debate between options 2A and 4A, with some leaning towards 4A due to lower costs and less disruption to habitable structures.
• Ultimately, Commissioner Glotfelty felt that 2A was the better option, and others expressed willingness to support his choice.

• Motion was passed with unanimous approval.

19 – Docket No. 56170…

• Docket No. 56170 is regarding a joint application by San Bernard Electric Cooperative, Inc. and South Texas Electric Cooperative, Inc.
• The application seeks to amend wholesale transmission cost of service and tariff.
• An appeal of Order No. 12 has been filed jointly by the petitioners.
• The Commission decided to consider the merits of the appeal due to its unopposed nature.
• General agreement among participants to grant the unopposed appeal.

• Motion to grant the appeal of Order No. 12 was passed with unanimous approval.

20 – Docket No. 56211…

• Application of CenterPoint Energy Houston Electric, LLC for authority to change rates was discussed.
• CenterPoint filed an appeal of order number 14.
• The appeal was regarding the denial of the withdrawal of the application.
• CenterPoint subsequently filed to withdraw its appeal.

20 – Chairman & Commissioners Thoughts on Application

• Chairman and Commissioners are in agreement with the current process.
• Feedback was received from individuals in Houston, the Lieutenant Governor, and Senate members.
• Participants are pleased that the appeal was withdrawn.
• Ready to move forward with the upcoming rate case.
• Consensus to proceed with the motion and discussions related to the rate case.
• Expectation for diligent work towards settlement by involved parties.
• No action required at this stage.

23 – Docket No. 56545…

• A revised proposed order was presented, reflecting an unopposed agreement among certain parties.
• ERCOT, The Alliance for Retail Markets, and the Texas Energy Association for Marketers do not join but do not oppose the agreement.
• A Commission Counsel memo was filed with recommendations for changes to the order.
• Chairman Gleeson also filed a memo with proposed changes.
• Commissioner Cobos was given an opportunity to ask questions to Oncor, due to her absence in the last meeting.

23 – Commissioner Cobos’ Thoughts 

• The discussion focused on the first system resiliency plan, SRP case brought before the commission under House Bill 2555.
• Commissioner Cobos expressed encouragement over the strong collaboration and transparent process leading to a settlement agreement.
• The settlement relied on expert consultants for historical and wildfire-specific analysis, supported by legal staff, consumer groups, and cities.
• A significant investment in the SRP by Oncor is noted, amounting to approximately $3.3 billion.
• The prudency of these investments will be reviewed once they are part of a historical test year.
• Questions were raised about the self insurance reserve approved in the last rate case, and its potential impact on future resiliency investments.
• Introduction of Oncor’s representatives: Tab Urbantke (Outside Counsel), Ellen Buck (VP of Business Operations), Brian Lloyd (VP of Regulatory).

23 – Brian Lloyd – Oncor’s VP of Regulatory Policy – Self Insurance Reserve

• Brian Lloyd discussed Oncor’s self insurance reserve covering excess liability and storm damage.
• The self insurance reserve is composed of an amount included in base rates (approximately $122 million) to cover liabilities and storm damage.
• Financial adjustments are made if actual storm damage costs exceed the set amount within the base rates, either adding to or crediting a deficit account.
• Oncor’s SRP plan aims to reduce storm costs through enhanced vegetation management and system strengthening, shifting management to a proactive approach.
• Proactive vegetation management is expected to be more efficient and less costly than post-storm repairs.
• Oncor is considering adjusting the annual accrual amount for self insurance based on actual experience and actuarial studies in the future.
• Oncor is incorporating sectionalization in their systems, part of the current modern design standards, to enhance older system parts.

23 –  Ellen Buck – Oncor’s VP of Business Ops – Distribution System Measure

• Discussion focused on the flexible and self-healing distribution system measure aimed at increasing sectionalization and operating flexibility.
• Sectionalization involves creating additional ties between feeders from different substations for system recovery from outages and maintaining system integrity during remote de-energization.
• Clarification was given on sectionalization as ability to take out a circuit to prevent wildfire spread.
• Inquiry was made regarding the distinction between Vegetation Management efforts; $55 million was previously approved, and additional funds are being sought.
• The discussion touched upon the previous rate case and the proposed spending in the System Restoration Plan, SRP.

23 – Brian Lloyd – Oncor – Vegetation Management Efforts

• Focus of the VM program over the past 4-5 years has been on mainline feeders to reduce customer impact during outages.
• The VM plus program now extends proactive management to laterals, using technology to target areas where vegetation grows fastest.
• Accounting group distinguishes expenses clearly in terms of base rates and SRP, maintaining clarity on budget allocations.
• Commitment to continue $55 million spending on the distribution system and maintain transmission system rates.
• Emphasis on not reallocating VM dollars; the budget is incremental to previously approved amounts.
• Potential utilization of federal or state funds for resiliency to lessen investment impacts on ratepayers.
• Discussion on how resiliency investments might lead to lower insurance premiums in the future, considering national issues like wildfires.
• Acknowledgment of increased insurance costs due to wildfires affecting financial integrity.

23 – Commissioner Jackson’s Observation on Resiliency Plan

• Commissioner Jackson emphasized the importance of impartial evaluation of the resiliency plan to ensure investments lead to desired outcomes.
• Commended the engagement of staff and engineering teams in evaluating the plan and asking critical questions.
• Encouraged review of available testimonies and noted that several recommendations align with infrastructure staff’s insights.
• Highlighted the goal of better performance through setting standards and allowing entities to determine their approach while ensuring continuous evaluation and improvement.
• Recognized the success of Texas’s unique regulatory oversight approach in driving performance and reliability.
• Stressed the importance of entities understanding their responsibility to enhance resiliency and to audit and improve their methods continuously.
• Expressed excitement about the initial plan and its potential to meet public expectations related to generation, resource mix, and systems resiliency.
• Emphasized the ultimate goal of improving reliability smartly and cost-effectively.
• Recognized the hard work and engagement of all staff and parties involved in developing this initial plan.

23 – Commissioner Glotfelty’s Thoughts

• Delay in discussing the plan was beneficial, allowing Commissioner Cobos to provide input.
• Praise for Oncor’s effort and consulting firm 1898 for grounding the plan in metrics and data.
• Importance of establishing and using specific metrics for evaluating resiliency plans.
• Customer Interrupted Minutes (CIM) suggested as a primary metric for assessing system stress and resiliency.
• Utilities are familiar with various metrics, but CIM simplifies the focus towards improving system resilience.
• Proposal for a workshop with Pacific Northwest National Lab on resiliency efforts for better learning.
• CIM can be complemented with secondary metrics like economic impact and military base outages.
• Normalization often excludes the most severe events as anomalies, but they’re acknowledged.
• Advocate for judging utility improvement based on its own performance over years, not against others.
• Expressed support for passing Oncor’s resiliency plan while emphasizing the focus on CIM.

23 – Commissioner Cobos on Robust Database Measures with Metrics

• Discussion on the need for robust database measures with metrics for ongoing evaluation.
• Importance of metrics for utility and ratepayer protection and utility accountability.
• Emphasis on open, transparent processes and collaboration with consumer groups and cities.
• Necessity for expert consultants and transparent tracking of investments.
• Importance of considering cost offsets from investments in resiliency measures.
• Acknowledgment of Oncor for their efforts in setting a precedent with the current case.
• Appreciation for staff and interveners’ work, emphasizing continued collaboration.

• Motion to approve proposed order consistent with memo was unanimously approved.

25 – Docket No. 56581…

• The item under discussion is Docket No. 56581 regarding Bluebonnet Electric Cooperative’s application.
• The application is for approval of a wholesale transmission service at distribution voltage tariff.
• The proposal for decision, PFD, was presented with no corrections or exceptions filed.
• Support was expressed for the proposal by multiple attendees.
• General consensus was reached in favor of the proposal.

• Motion to adopt the PFD was passed with unanimous approval.

27 – Docket No. 56682…

• Discussion of Docket No. 56682 regarding Oncor’s application to adjust its energy efficiency cost recovery factor.
• A revised proposed order was presented.
• There was consensus in support of the revised proposed order.

27 – Commissioner Glotfelty’s Thoughts on Application

• Commissioner Glotfelty plans to vote no on the application, although he acknowledges that it’s a legally supportable order.
• He raises concerns about “black box settlements,” emphasizing the need for access to data to make informed decisions.
• There’s a specific concern about a $16.5 million bonus payment, which he feels is excessive.
• He suggests examining the criteria for bonus payments to ensure ratepayers get the best value.
• Acknowledges that Ramya, leading the energy efficiency group, could look into these concerns.
• Other members agree with Commissioner Glotfelty’s concerns and express interest in reviewing the bonus payment structure.
• General consensus that while settlements are beneficial, improvements can be made.

27 –  Motion to Approve the Revised Proposed Order

• A motion to approve the revised proposed order passed with 4 Commissioners in favor, and 1 opposed (Commissioner Glotfelty).

29 – Docket No. 56799… 

• The transmission line in question is a 345 kV line located in Ector and Midland counties.
• A proposed order has been filed by Oncor.
• Exceptions were filed by Oncor regarding the proposed order.
• The ALJ declined to make changes to the proposed order in response to Oncor’s exceptions.
• Chairman Gleeson filed a memo related to the matter.
• Approval of the application was recommended with the inclusion of a standard ordering paragraph.
• The recommendation to approve the application with the additional ordering paragraph was agreed upon by the attendees.

• Motion to approve the proposed order consistent with the memo passed unanimously.

32-36

• Not Discussed

37 – Project No. 55977…

• Darryl Tietjen presented the annual earnings report memo.
• No recommendations for Commission action were made this year.
• The report contained noteworthy performance by CROSS.
• CROSS will be coming in for a comprehensive rate case in a couple months.
• There were no questions from the Commissioners.

38-42 

• Not Discussed

43 – Discussion and possible action on electric reliability…

• CenterPoint’s appeal on its rate case has been withdrawn.
• Lieutenant Governor Patrick emphasized the need for an audit under PURA 14.202.
• Support for conducting an audit on CenterPoint’s policies, third-party procurement procedures, and emergency operation plan.
• Proposal to issue an RFP for a third-party management audit.
• Timeline for the consultant’s report aimed for April, with discussions expected by May.
• Aim to complete the findings and recommendations before the legislative session ends.

43 – Commissioner’s Thoughts on Implementation of the Lt. Governor’s Audit of CenterPoint

• Discussion about the necessity to conduct an audit on CenterPoint following the Lt. Governor’s request.
• Emphasis on understanding when such audits should be used, beyond legislative suggestions.
• Acknowledgment of the Lt. Governor’s involvement in hurricane recovery efforts and the audit’s relevance to him.
• Recognition that audits can be beneficial for providing a fresh perspective and ensuring accountability.
• Consideration of whether similar audits might be beneficial for other entities.
• Hope expressed that the audit would address public concerns about CenterPoint, restoring trust with the provider.
• Agreement on moving forward with the audit as a regulatory measure for accountability.
• The importance of having results ready before the legislative session ends to potentially inform legislative action.

43 – Connie Corona – Executive Director – Scope of Audit on CenterPoint

• Staff has been reviewing the audit provision for several weeks.
• Consideration has been given to determining the appropriate scope of the audit.
• The goal is to move forward with the audit as previously discussed.
• Staff is prepared to quickly meet with commissioners to initiate the RFP process.
• There is an emphasis on keeping relevant offices updated on the audit’s progress.
• Communication with legislative and executive offices is deemed important.

44 

• Not Discussed

45 – Project No. 2…

• Motion to approve meeting minutes from October 5, 2024, workshop was made and seconded.
• Motion to approve meeting minutes was unanimously accepted.

46-53 

• Not Discussed

54 – Closed Session

• No action will be taken regarding matters discussed in the closed session.

• Chairman Gleeson noted there were no further items or business to discuss.
• The meeting of the Public Utility Commission of Texas was officially adjourned.