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The Public Utility Commission met on January 13 to discuss revised proposal orders, grant rehearings and pose questions to ERCOT about the wholesale electric market design. The commission also discussed the importance of water and electric expansion over the prioritization of precedent in their rulings.

Agenda items 7, 13, 14, 17, 18, 19, 20, 21, 22, 23, and 24 were taken up without discussion. Agenda items 8, 11, 26, 27, 28, 29, 32-39, and 41-43 were not discussed. A full agenda and video archive can be found here.

This report is intended to give you an overview and highlight of the discussions on the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

 

Item 1 – Docket No. 50324 – Application of County Line Special Utility District to Obtain a Sewer Certificate of Convenience and Necessity in Hays and Caldwell County. (Final Order) Connor Kilgallen

  • PUC Staff – Revised proposal order filed in November; staff proposed memo with revision
  • Lori Cobos, PUC – Did not meet the requirements of request for service; give them the 12 tracts of land not the full 360 acres
  • Will McAdams, PUC – I agree, maintain the precedent and uphold service standards
  • Peter Lake, PUC Chair – Precedent has stunted growth in this committee before; something to consider
  • Cobos – If the request of service is fulfilled then they can apply for CCN
  • Jimmy Glotfelty, PUC – I agree with the chairman
  • Lake – I suggest tabling this item and allowing them time to provide evidence for request for service
  • Cobos – Approve revised proposal order, approve the 12 tracts minus the 360 acres and follow up with additional local interest evidence
  • Lake – Motion to remand docket
  • Motion passes

 

Item 2 – Docket No. 50347; SOAH Docket No. 473-21-0947.WS – Application of Texas Country Water, Inc. for Authority to Change Rates. (Final Order) Lorenzo Garcia

  • Advising Staff – Considered during October meeting and commission requested additional information which has been provided
  • Lake – Rates are reasonable and sufficient evidence for a $3,500 tap fee
  • Motion to grant good cause exception
  • Motion passes

 

Item 3 – Docket No. 50404 – Petition of Sterling Deason O’Donnell and Darwin Deason, CoTrustees of the Sterling Deason O’Donnell DD 2012 Trust Under Agreement of the DD 2014-B Grantor Retained Annuity Trust to Amend Marilee Special Utility District’s Certificate of Convenience and Necessity in Collin County by Expedited Release. (Order on Rehearing) John Kelly

  • Advising Staff – Commission grated release in November; submitted for rehearing
  • Glotfelty – Presents memo tightening up language;
  • Lake – Motion to grant rehearing
  • Motion passes

 

Item 4 – Docket No. 51407 – Application of Dos Aguas, LLC for a Water Certificate of Convenience and Necessity in Walker and Montgomery Counties. (Final Order) Margaux Fox

  • Lake – Application does not address financial or technical ability; Dos Aguas would benefit from additional experienced council
  • Cobos – Agrees with Lake; waste of staff resources to remand
  • McAdams – Would remand instead of denying; advise Dos Aquas to start small and be less broad
  • Glotfelty – Agree; need to see TCEQ approval
  • Lake – Motion to deny
  • Motion passes

 

Item 5 – Docket No. 51545 – Petition of Compass Datacenters DFW III, LLC to Amend Rockett Special Utility District’s Certificate of Convenience and Necessity in Ellis County by Expedited Release. (Order on Rehearing) Cheri Hasz and Lorenzo Garcia

  • Lake – Similar to item 3; motion to grant rehearing
  • Motion passes

 

Item 6 – Docket No. 52090 – Petition of Redbird Development, LLC to Amend Dobbin Plantersville Water Supply Corporation’s Certificate of Convenience and Necessity in Montgomery County by Expedited Release. (Order on Rehearing) Lorenzo Garcia

  • Lake – Similar to items 3 and 5; motion to grant rehearing
  • Motion passes

 

Item 9 – Docket No. 51470 – Application of Peoples Telephone Cooperative, Inc. for Approval of Alternate Technology for Provider of Last Resort Obligations. (Final Order) Connor Kilgallen

  • Advising Staff – Filed a motion to withdraw application
  • McAdams – Circumstances have changed calling for a justified withdrawal
  • Lake – Motion to grant withdrawal
  • Motion passes

 

Item 10 – Docket No. 52147 – Application of Echo Wireless Broadband, Inc. to Relinquish Its ETC Designation and Application of Resound Networks, LLC to Amend Its ETC Designation. (Final Order) Cheri Hasz

  • Lake – Agree with the proposal; proposed memo to correct language
  • Lake – Motion to approve with amendments from memo
  • Motion passes

 

Item 12: Docket No. 51381; SOAH Docket No. 473-21-2605 – Application of Entergy Texas, Inc. to Establish a Generation Cost Recovery Rider Related to the Montgomery County Power Station. (Final Order) David Hrncir

  • Lake – Proposed order looks good; relay back writers should be sent in a separate document
  • McAdams – Important that the two parties agreed on financial and logistic components
  • Lake – Motion to approve with items in a separate docket

 

Item 15 – Docket No. 51966 – Agreed Notice of Violation and Settlement Agreement Relating to Entergy Texas, Inc.’s Violation of PURA § 38.005 and 16 TAC § 25.52, Concerning Reliability and Continuity of Service. (Final Order) Alex Scheifler

  • Glotfelty – Oppose because penalty it is too low, and no implementation timeline provided
  • Advising Staff – Cases are from 2019 prior to reconstitution; will take your direction
  • Glotfelty – I would support settlement but need to see improvement; commission agrees
  • Lake – Not going to renegotiate old settlements but moving forward there will be a higher level of accountability
  • Lake – Approve with addition paragraph from commission
  • Motion passes

 

Item 16 – Docket No. 51972 – Agreed Notice of Violation and Settlement Agreement Relating to CenterPoint Energy Houston Electric, LLC’s Violation of 16 TAC § 25.214(c), and (d) Relating to Transmission and Distribution Utility Tariffs and Violation of PURA § 38.005 and 16 TAC § 25.52 Concerning Reliability and Continuity of Service. (Final Order) Connor Kilgallen

  • Glotfelty – Same idea behind item 15
  • Lake – Motion to approve with revised order
  • Motion passes

 

Item 25 – Project No. 46304 – Oversight Proceeding Regarding ERCOT Matters Arising out of Docket No. 45624 (Application of the City of Garland to Amend a Certificate of Convenience and Necessity for the Rusk to Panola Double-Circuit 345-kV Transmission Line in Rusk and Panola Counties). (Discussion and possible action)

  • Glotfelty – Project has been open for 9 years; issues with capacity of lines, lack of reliability and, HVDC issues as addressed in HB 1821
  • Look at an export tariff component and get regulatory review

 

Item 30 – Project No. 52373 – Review of Wholesale Electric Market Design. (Discussion and possible action)

  • Lake – ERCOT project in works since 2021; next commission meeting will continue to move implementation forward
  • Cobos – Concerns about the lengthy timelines; ERCOT needs staff resources and contractors
  • SB 3 requires preparation for winter storms and a firm-fuel product needs to be available by next winter; what answers do you need for this to happen
    • ERCOT – To deliver something next winter we need RFP, eligibility, switch settlement systems to leverage systems, load allocation, and quarterly payments
  • Cobos – Need direction with NPRRs to be moved through stakeholder process quickly; NPRRs would capture procurement of RF basis with a load ratio shar basis for cost
  • On-site fuel storage important to SB3; giving ERCOT feedback to release RFP quickly
  • Lake – Give new ERCOT board time to review scale and budget first; need more fuel or backstop
  • McAdams – Acknowledges small ERCOT staff; need third party help
  • Glotfelty – NPRR seem to be a time-consuming process with multiple approvals; can you speak on that
    • ERCOT – The system requires priority even with the addition of new resources; find ways to expedite process
  • Cobos – How quickly do you need feedback from us to launch a new product next winter?
    • ERCOT – Draft NPRR with urgent status, receive feedback, take onsite fuel as top priority
    • Need feed back as soon as possible
  • Glotfelty – Moving forward what is to be expected
    • RTC is on hold because of budget; pushing it for ERCOT to be able to deliver all things in 2 years

 

Item 31 – Project No. 52771 – Investigation into use of Dynamic Line Ratings for Transmission Lines in Texas. (Discussion and possible action).

  • Glotfelty – More work to be done on this but a new tool to enhance reliability; good amount of public feedback

 

Item 40 – 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.

  • Advisory Staff – Compliance filings ae due tomorrow; electric chain and mapping group meets tomorrow
  • Haley Hall new chief admin officer