PART ONE
And then after you’ve voted, if you would go back on mute, that would keep things quiet for us on the Webex. Should the audio or meeting in unexpectedly, please log back in using the same Webex information posted to the meeting page. And if there’s an issue with the current Webex information, we’ll distribute a new log in via the tackless serve and we’ll get that posted as quickly as possible to. And Caitlin and Martha, you all have quorums. So whenever you’re ready.
Okay. All right. Good morning. It’s August 26th. This is our regular August CAC meeting. We are not in person as Brittany said, but hopefully we will be in October. There’s no September meeting. The antitrust is on the screens to avoid raising concerns about antitrust liability. Participants in or COD activities should refrain from proposing any action or measure that would exceed our COPS authority under federal state or state law. And there’s more information on the website.
For all reps and proxies today, in the consumer segment, the commercial rep Chris Brewster for City of Eastlands was given his proxy to Beth Garza in the cooperative segment. Likewise from Golden Spread has alt-rep Joe Dan Wilson. John Packard for STEC has alt-reps Lucas Turner. In the independent power marketer segment, resume has alt-rep Shane Thomas. And we have a newly seated, same person, Ian Haley returns now for Trafigura Trading.
Newly seated this month. And in the IREP segment, Bill Barnes for Reliance has given his proxy to Jen Schmidt. In the municipal segment, David Key for CPS has given his alt-rep to Diana Goldman.
Is that all of them, Brittany?
Or do we have any last minute?
Okay. I don’t have any last minute. Right, theme of the month.
We, this month it is our very special ex-officio member, Keith Collins.
Can you tell us what the theme for August is?
All right, so yes, I can cover the theme of the month for this month. It is for you that have kids, a special time of year as they head back to school. And so I have three and they’re all in school.
Started just a couple of weeks ago. And so again, it’s a wonderful time of year to have them back in school. So I imagine that, you know, for our theme, if we were to have a break, which may or may not happen, but if we were to have one, we would go to recess, right? So, and so that I think is a great way to think about, there are lots of potential options on how we may think about the school things we remember from our past. Now, one thing I will note, if you were to wander the halls of, you know, the schools today, they use a very curious dialect and lingo that we may not understand. And so I’ll give you an example of this quickly. So for instance, you may think of folks that, from your past, like Ferris Bueller or James Dean, and you might say, those are really cool people, right? But they don’t say that anymore, right? They use a term like infinity aura. And so what does infinity aura mean? Well, you can Google it and I have done that for us. Then it says, someone with limitless amount of coolness, presence, or effortless charm. So in addition to school terms, we can use slang that our school kids would use. So again, Skibiddy, Riz, Ohio, let’s go back to school. Thanks everybody.
All right, Keith, that was quite the intro, but the theme is kids playing?
Back to school. Things they would say at school. The theme is back to school. The theme is back to school, and that can include things that kid would say in school or things about school. Thanks. Awesome. I think it’s a little too hot. It’s a recess. Ned, 6-7 is over, right? Because the New York Times, the New Yorker wrote about it. So it’s over. Oh no, it’s still there.
All right. Okay, back to school. All right, so next month, if we were in the room, we would go around the circle.
Municipally owned utilities. Can you guys do October, Diana? Yes. I’m saying yes for you. All right.
Okay, so we’ll, and so in October, we will do the municipal utilities. We’ll do the same as a month. And this month, the same, it’s back to school, which makes sense. It’s back to school. All right, moving on with the agenda. First, our meeting minutes. We’re looking to approve the July 29th meeting minutes as presented.
Ned doesn’t have any edits. Susie, do we have any other edits?
Or not Susie, Brittany. Brittany, do we have any other edits? To the meeting minutes? I didn’t receive any, no. Okay, so we are looking to approve the July 29th, 2026 meeting minutes as presented. Can we put that on the combo ballot?
Combo, awesome. I will need to get a couple of combos in the chat because I can’t feed head nods. Okay, now we are on to our meeting updates. We have not had any board or PUC open meetings where revision requests have been approved since our July meeting. We will have a board meeting in September and then one in December. But effectively, today’s a very special PAC because it’s the last PAC meeting for us to recommend things that will be fully approved by the end of the year. We have had some open meetings since the July PAC meeting, but I’d like to save discussion on BASH and transmission planning to that later section of the agenda. And I do believe staff has some other updates about PUC projects. Harika, are you there to give us those updates? Yes, Caitlin, thank you. Can you hear me? Yes, I can hear you. Okay, I have a short update. So I really wanna thank TAC for the state of the market annual workshop. As I said before, that will be really great if we do this every year. And before staff or ERCOT files responses, it’s really great to hear from the stakeholders and go to each individual recommendation. This year, we didn’t do that. We didn’t have time, but that will be great for the future years. That’s one feedback I have. The other one, I’m sure, I don’t know if you are familiar in the staff response to state of the market report, the project 34677 commission agreed with staff recommendation that the ASDC’s memo from 2019, restricting it to the ORDC results is no longer binding. And related to that in project 59550 review of TAC 25549 that requires us review every five years, all the offer caps and all the offer cap programs. So we added a question about ASDC’s in that as well. And I think the responses are due September 17. So please provide feedback again, 59550. And today we are also going to file a memo for the project 58555. This is answer to service cost allocation study required by PIRA. And we are going to have a workshop at September 22nd at the PUC, but we will file a memo with more details on that. That’s all I have.
Okay, thank you for those updates. Any questions or comments?
Right, I’m not seeing anything in the queue.
Thanks, Erika. We are now going to our review of revision request summaries, ERCOT market impact statements and opinions. And I will turn it over to Anne.
All right, thanks, Caitlin. This is Anne Bourne with ERCOT. So for revision request summary, we have a total of 14 revision requests for TAC consideration this month. For reason for revisions, we have 10 that are general system process improvements, two that are strategic plan objective one, one that is strategic plan objective two, and then one that is regulatory requirements. For impacts, I believe we have six that are known impact and then eight that do have impacts. I’ll highlight 1214. It does have that 900 to 1.2 million. And then 1338 has 750 to 1.25 million.
And we can take a look at those further in the PRS report. And then I’ll point out PGR 144 also has a one FTE impact.
ERCOT opinions and market impact statements. ERCOT does support all of the revision requests and have provided the positive market impact statements. No credit impacts for any of the NPRRs. And then the IMM does support 1214, which they do have comments on that one.
1337 also have comments on that one. And then 1342 and no opinion on the rest of the revision requests.
Okay. Caitlin, if you’re talking, we can’t hear you.
I was talking. Okay. All right. Let’s go to, let’s pretend that didn’t happen. Let’s go to the PRS report. Diana, let’s do these the way we have some more early in the past. So they’re all on the post, but why don’t we take up the slide two first and pause and then take up the other slides after that.
You ready, Diana?
Okay. Okay, there we go. Caitlin, can you hear me? Yes. Okay. All right. Keeping with the theme, we are low-key excited to give this PRS report this morning. We’ll start with slide two. 1336 on August 12th, we vetted unanimously to vote 1336, urgent status as amended by the August 6th ERCOT comments and forward to tag the August 11th revised IA. For 1339 in July, we vetted unanimously to recommend approval as submitted. And on August 12th, we vetted unanimously to endorse and forward to tag the July 15th PRS report in the May 29th IA. I will note that ERCOT filed comments after the PRS report on August 14th for 1339. 1341 on July 15th, PRS vetted unanimously to recommend approval of 1341 as submitted. On August 12th, we vetted unanimously to endorse and forward to tag the July 15th PRS report with the June 23rd IA. And then finally, 1344 on August 12th, we vetted unanimously to grant 1344 urgent status and recommend approval as submitted and submitting to tag with the July 28th IA. All no and tagged all unopposed.
Okay. So on NPR 1339, we do have 814 ERCOT comments that came in after PRS. Do we want to take a look at those comments?
Okay.
Eno, do you want to speak to these?
Can you hear me? Yep. Great, thank you. Yes, thanks. We filed comments to remove the real-time priority online reserves on the equation to calculate the financial tester losses. And the reason why it was not cached before is because that calculation is not in the system. It’s manually calculated, but the equations are shown in the protocols and it wasn’t available or we didn’t realize it at the time we submitted 1339. So it shouldn’t have any system impact because it’s not in the system, but that bill, the terminal is no longer being used.
Or in that it went away with a real-time co-optimization.
Okay, that’s pretty straightforward. Any questions or comments for Eno?
So for NPR 1339, we’d be looking to recommend approval as recommended by PRS in the 812 PRS report as amended by the 814 RCOTS comments. Is everybody okay? Was I going in the combo ballot for 1339?
Awesome, okay. So for the rest of slide two, we’re also looking to recommend approval of NPR 1336 as recommended by PRS in the 812 PRS report. NPR 1341 is recommended by PRS in the 812 PRS report and NPR 1344 is recommended by PRS in the 812 PRS report. Are we also okay with these on the combo ballot?
Awesome, combo ballot slide two. We good on that, Corey?
Yes, ma’am. All right, Diana, I think you can do both slides three and slide four if you want. Okay, starting on 1214, so I’ll just say that this revision request was filed in December of 2023. There have been many comments filed, a lot of subcommittee review, and a revised IA that was filed on August 11th. This has gone through the whole gamut of review. And then on August 12th, PRS voted unanimously to endorse and forward the tax. The July 15th PRS report and the August 11th revised IA with the recommended priority and rank that we see there on the screen, 1329. On May 6th, we voted unanimously to recommend approval as submitted. And then on August 12th, we voted unanimously to endorse and forward the tax. The June 10th PRS report as revised by PRS and the August 11th IA.
1331, on July 15th, we voted unanimously to recommend approval as submitted. And then on August 12th, we voted unanimously to endorse and forward the tax. The July 15th PRS report in the August 7th IA. And then for 1335, this has also had several comments by RCOT and subcommittees. On August 12th, we voted unanimously to grant urgent status as amended by the July 1st RCOT comments and forward the tax, the May 26th IA and the recommended effective date at the day after this commission approval.
I see, do you want me to pause there? And I see Bob has a note for the IA on 12-14 or you want me to keep going? I would keep going. I think on the next slide, we have two with the IA over a million, so I think we’ll review both of those, but why don’t you just go ahead and keep going? Okay, so 1337 in August, we voted unanimously to grant 1337 urgent status as amended by the August 3rd RCOT comments and forward to tax with the May 26th IA. There was a lot of discussion and comments in the multiple stakeholder meetings. RCOT staff responded with improvements to their language as a result of that stakeholder feedback and RCOT staff did reiterate a strong desire to position the changes in 1337 to become effective by the end of 2026 and requested urgent status to maintain that timeline.
1338 on July 15th, we voted unanimously to recommend approval as submitted. All, let’s see, PRS voted unanimously in August and forwarded to tax the July 15th PRS report with the May 29th IA. And then finally, we have 1342.
We voted unanimously to grant this urgent status and forwarded to tax the July, excuse me, the June 30th IA with the recommended priority and rank as seen there on the screen. Hand it over to you, Caitlin. Yep, we have two of these are pretty high IAs. So the first is as Bob Helton requested is NPR 1214. You can take a look at that.
Okay. Okay, so any questions or comments on this?
Yep, that’s Shane.
Yeah, thank you, Shane, Thomas, Michelle. This NPR has quite a long runway to get implemented.
And there are several very important things that have been rolled into it as this has like, has set there at PRS.
And I guess I wanna say that it would be like low-key cooked if we were to implement contracts for capacity and we weren’t able to add that impact into our DPA before this was thought. So if there’s any way that we can speed up that portion of it, or I just wanna make sure that we’re all aware of the importance of this going forward.
Yeah. Okay, do you want Troy or someone from RCAP to talk about the implementation time?
That would be good. And where they see this fitting with all the other stuff that’s the DRS that’s gonna be taking up all the project capacity next year. Okay. Thank you, Michelle. This is Troy Anderson, I can answer and then any other RCAP folks who would like to chime in. We’ve noted Shane’s comment from PRS about if there was a way we can piecemeal this at all. And we’re certainly gonna be looking at that.
Next year is gonna be a busy year with some major efforts going on, but we are gonna try to see if there are portions of this that can somehow, especially the, some of the higher impact portions, we’ll see if they can move forward. We’re not at a point to be able to make any commitments on that today, but certainly it’s gonna be on our mind as we look at activities for next year.
Okay, let’s go to Seth.
Yeah, I just wanna sort of tag on with what Shane was saying. It’s an important NPR. I think it’s one of those things where it becomes more important as time goes on. And maybe we have a contracts for capacity, just like with the Browning RMR, we had a solution sitting out for years that we never acted on. And then we get to the point where we actually have an RMR resource and then we’re behind on it. So I think we need to be proactive on these price formation solutions so that we don’t get ourselves into situations where we’re saying, oh man, I wish we would have implemented this now that we have one of these contracts for capacity.
Okay, thanks. Thanks, Seth. I see Keith in the chat. Go ahead, Keith.
Yeah, just to follow up on the comments from Shane and Seth. I think we definitely agree that 1214 has, there’s a lot in there that we like. There’s a lot in there lots of folks like. I think the challenge is we’ve got firming and we’ve got legislatively mandated requirements on things like firming and DRS. We’ll fit it in. It’s just, we’re trying to manage it with all these other things. So yeah, we’ll move as quickly as we can, but at the same time, lots of competing priorities, but we do see the benefits of this.
Okay.
Ned, would you like to weigh in? I was mostly trying to hit the theme of the month, but I agree with Shane and Seth. And Keith, appreciate you’ve got multiple things on your plate. I think this is, I mean, in terms of sending appropriate market signals, this one probably rises higher than some of the others, even if they have other juice on them.
So I agree with the sentiment that we should move this one on along. And if we can’t move it to the combo ballot, I’m willing to make the motion. I think we can move it to the combo ballot. It would be to recommend approval of NPR 1214 as recommended by PRF and the 812 PRS report. I think we can combo it. What I was going to ask if we wanted to check in on the IA, but I think the place to do that might be PRS.
Does that sound right, Shane? Maybe Diana should check in on the IA on this one.
For 1214. For the end of the year, and then again at the beginning of the next year. Yeah. We can put that on our list of tax report or tax items to follow up on. I don’t know if I would call it an action item, but I think it’s something, right, Shane and Seth, what I’m hearing is you guys just want to keep an eye on the IA as it progresses. And if there’s anything we can do to speed it up.
Yeah, if there’s ways we can work in the earlier, or some of the other concepts of this besides like the complete overhaul of the price, the way that the price centers are implemented, that would be great. It would be a shame if this, you know, had to wait for DRS to finish to start its 12 to 18 months. Okay. But I think the follow-up on that progression would be during choice report of PRS. I don’t think we need to create an action item attack. Yeah, yeah. We already get regular updates on the implementation timelines and all that. Okay. And we can count on you to speak up there. Yeah.
Okay, so.
All right. So we will put that on the combo. The other one that had a high IA was NPR 1338.
Do we want to take a look at that, Corey?
Okay.
This is another one between 750,000 and 1.25 million.
Does anybody have any questions or comments on this?
Okay. I’ve seen any. All right. So from the rest of Diana’s PRS report, we would be looking to recommend approval of 1329 as recommended by PRS in the 812 PRS report. Recommend approval of 1331 as recommended by PRS in the 812 PRS report. Recommend approval of 1335 as recommended by PRS in the 812 PRS report. Recommend approval of 1337 as recommended by PRS in the 812 PRS report. Recommend approval of 1338 that we just looked at as recommended by PRS in the 812 PRS report. And recommend approval of 1342 as recommended by PRS in the 812 PRS report. And we put those remaining PRS items on the combo ballot.
Combo for all. All right.
Any other questions, comments on PRS?
Diana, do you have anything else for us? No ma’am, that’s it. Thank you. Okay. Bob Pelton, you do have a question or comment. Go ahead. Yeah. On the mitigated offer caps for the capacity contracts, what was the implementation timeline for that? Just to remind me. 1342? Yes. We can pull up the IA for that.
Registration is not six to nine months. Six to nine months. Just one follow-up if you don’t mind, Caitlin. Are we still expecting, this is for Eric. Are we still expecting to have a contract request out for a capacity, a contract for capacity by the end of the year? I know it’s been talked about off and on. I was trying to see how these two kind of fit together. Yep. I see two, Erika, in the queue. Let’s do Eno first. I think he’ll comment on the substance, yeah. Yes, Bob. We’re still on target to submit an RFP. We just have not had a chance to finalize the requirements, but that’s the objective. Okay. All right. So we will have a little bit of time in between the two then. Correct. And also, I just wanted to follow up on 1342. I believe that Troy has already addressed this issue at PRS, but the objective is to automate this process along with 826 because they both, 1342 and 826, address the mitigation for a local issue concern. So that’s why both 1342 and 826 should be implemented together. Okay. Thanks, Eno. Sure. Okay. Do Eno, yes, on expected contract for capacity. Nothing has changed there. We’re just, Erika, that’s finalizing sort of the terms. And then Troy, thank you. And then Troy, did you want to add anything else on the project’s implementation? Yeah, just that our working plan is to hopefully start the 826, 1342 combo later this year, because we believe we’ve got a window for the vendor portion to try to get that done before they’re really tied up with the other big projects in next year. So if we’re able to accomplish that, it could be some kind of a mid 27 implementation if we can work that out.
Okay.
Okay. Any other questions on PRS?
All right. And Corey, we did put everything on the combo, correct? Yes, ma’am. We’ve got it. All right, Diana, anything else? That’s it for us. Thank you. Any other team playing your jargon? No, I’ve got to think about what they were saying. I tune it out.
Okay. Easy to tune them out. That’s great. All right. Now we are onto the RMS report with John Schaap. John, are you ready?
Yes, ma’am. I’m here. Can you hear me? We caught you before you traveled.
Yes. Yes, indeed. Great. Is my audio coming through okay? Yes. Okay, super. RMS has two items for TAC consideration. LPGR R077 and RMGR R186. Both are related to the low profile tree conversion going from an Excel document to Word document.
And I would request they be added to the combo ballot.
Okay.
So John’s right. We have two voting items looking to recommend approval of LPGR R077 as recommended by RMS and V811.
RMS report and recommend approval of RMGR R186 as recommended by RMS and V811 RMS report. I think the combo is great. Do you have more to your report, John? Just a few items to touch on on this slide. We’ve canceled our September 1st RMS meeting just due to a light agenda. We are conducting an email vote currently to approve the 2027 flight testing schedule. And then RMS has commenced discussions about well CP in the event that becomes a reality, we want to be prepared and have an understanding about scope, timing, and level of effort.
Trying to stay ahead of developments.
Okay. That’s all I have, Caitlin. Any questions or comments for John?
Okay. Okay. We can move to the RAS report. So for both RAS and WMS we were going to hold off on having the chair discuss the group’s discussion on ancillary service methodology until we get to the separate AS methodology item. So Shane, you can skip your comments on the AS methodology for 2027, but please present the rest of your report.
Well, thank you, Caitlin.
RAS has one voting item ready for act today as figure 144 on dynamic model submission and review requirements for large loads.
The vote did have two abstentions from the consumer segment. This is largely focused around ERCOT putting requirements directly on large loads, which has been our loads in general, which has been a common theme of discontent as we’ve gone through a lot of these large load NPRRs and other revision requests. For this one, ERCOT’s thought is that this sort of change would be something that was being requested by TIEC would make more sense to be had as part of the batch one plus consolidated transmission planning process. So they didn’t want to implement any of the suggested changes at this time. It did pass, I guess, unanimously minus the abstentions.
It had a cost of $200,000 to $250,000 and one FTE required to support the revision requests.
I just see some comments coming up in the chat. Yeah, do you want to do, typically we go through the whole report and then go back to the voting items, but I’m fine either way. I’m trying to take the voting items now.
Or as they come up. So on figure 144, I know we had comments pending or talked about. So let’s go ahead and have that discussion, I guess. Start with Lauren. Sorry, only voting items. Yeah, we’re back to school, so we can do things however we want the school year.
Is it Beth first, Beth first and then Lauren. Go ahead, Beth. I was going to, if you can hear me, I was going to defer to Lauren, let her go first and I’m happy to follow up. Okay.
Lauren, are you ready? Yes, good morning. Can everyone hear me okay? Yes. All right. So it’s Lauren Lewis with TIEC. We had filed comments prior to the last ROS meeting and Shane kind of touched on those already, but I just want to quickly highlight our position and why we proposed some minor language changes there. We understand ERCOT’s need for accurate modeling and its planning, but it’s still not clear to us, especially after the discussion at ROS, why traditional industrial loads need to be subject to this requirement at this time. We’re not generally opposed to providing ERCOT with additional information for situational awareness and modeling during the interconnection process. But one of our concerns continues to be the risk of ERCOT imposing new requirements directly on industrial and manufacturing customers, particularly when there hasn’t really been a demonstrated reliability need. And part of our concern with this and why we’re bringing it up now here is ERCOT’s language and its reasoning and justification that it intends to propose ride-through requirements similar to those in NOGR 282 for non-computational large loads. And so it probably doesn’t need to be said again, but I will say it, that TIEC will continue to oppose any efforts that would allow ERCOT to dictate how manufacturing facilities are designed and operated. And to provide a little bit of extra context here for our concerns, traditional industrial loads are fundamentally different from the computational loads, both in how they operate and the reasoning that led to those voltage ride-through requirements for computational loads. And ERCOT really hasn’t shown that non-computational industrial customers pose that same kind of ride-through or reliability risk that would justify expanding these requirements more broadly. So our initial request here has been to keep the dynamic modeling requirements limited to computational loads for now. And then if there is an identified reliability risk for non-computational loads, we could address adding that at a future time, even revisiting it during the batch one plus process. We’re just not convinced that longstanding industrial customers it’s been modeled under existing processes for years should be brought into this broader framework that’s been developed in response to a different issue. And so with that being said, in the interest of compromise, the red line language that we proposed is really just to clarify the role of TDSPs in submitting or helping large loads submit the required information. We really just want it spelled out here that the utility should remain the retail customer’s primary point of contact throughout the interconnection process. Many large industrial customers don’t have dedicated power compliance teams. And so it’s difficult for them to be expected to independently navigate the evolving requirements within ERCOT when they’re not market participants.
And through the batch process during this, these manufacturers have to hire outside consultants costing tens of thousands of dollars to compile this information. And so with additional revisions throughout the process, there’s increased costs. So we just thought to streamline the process and reduce revisions that loads could work directly with their TDSPs. And we also think that this approach would improve efficiency. So in its good cause exception filing and 59142, ERCOT had pointed to internal processing constraints and inconsistencies with how the ILEs were submitting their modeling information as a cause for the delay in reviewing the dynamic data submissions by that batch zero deadline. And the impact analysis for this paper only calls for one additional full-time employee. So we think that routing this through the TDSPs who already have an established relationship with their customers, it would just create a more consistent and efficient process for everyone involved. So ideally, just to sum all of that up, we’d like to remove the non-computational loads from the revision request at this time and keep the option to have more discussions about this later as we go through the batch one plus process. But in the alternative, at least adding some language, just clarifying the submission process that it’ll be through the TDSPs or at least with support and directed by the TDSPs. So with that, happy to take any questions.
Okay.
The language you’d like is the language here. Yes. Okay, I heard you say two things, but I think this has both of them, the removal of this for non-computational loads and the- Yeah, this is our compromise language. Okay. Okay, let’s go to Beth.
I wanted Lauren to go first because I knew she would have more to say and she eloquently laid out the position of the large industrial consumers. I’m not in the middle of that argument and that it kind of comes down to a large consumer, TSP, ERCOT issue to sort out. My question, and that was the debate that we had at ROS two months ago when we sort of, we approved some language with lots of abstentions as part of that vote. And I don’t think that was clearly reflected in Shane’s slide on this issue. When the issue came back to ROS for the IA review, TIEC brought forward this language, which was considered and rejected by ROS by not being included in our recommendation to TAC. So lots of things on this issue. My specific question is really to ERCOT and has to do with just given some, the disruption of the batch zero process, I’d just like to hear some explanation of how do these requirements fit into what we think our current timeline is right now. And just hear an ERCOT response to everything that they’ve heard so far.
Okay, I see Fred.
Hi, this is Fred, can you hear me? We can hear you.
I think to kind of respond to Faith’s questions, PICO 144 is independent of the batch zero. The purpose really the need for 144 is to compliment the approval of NOGA 282. So PICO 144 set up the dynamic model requirement for most all kinds of TSPs. And it really helps to assess the large load of run-through capability and the model performance such a lot that it will help improve the efficiency to support the larger load of going through the quarterly stability assessment and it does actually request support and the ongoing operations. Thank you.
Thank you, Fred. I appreciate hearing that perspective.
Okay.
Did that answer your question, Beth?
Yes, it did. I guess, and then, you know, just to foster more discussion, which is harder to do when we’re virtual here, you know, I’d love to hear the TSP support or outrage over what TIEC is proposing as well. Okay. I will let them gather their thoughts on support or outrage. And we also have Brian Sands in the queue. So let’s go to Brian.
Echo Beth’s comments about just this WebEx only being insufficient compared to being in person.
My Gen Alpha kids have a word called doppler-choppelganger where it’s the ugly twin. And so this meeting is the ugly twin of a actual normal TAC meeting. But that’s not why I jumped in the queue. I jumped in the queue because I, as a large load developer, want to have access to ERCOT just modeling.
And if everything has to go through the TSP, I’m curious if TIEC has a perspective on having access to where large load projects are as they’re going through the interconnection process. And if this language limits access by requiring everything to go to the TSP. Thank you.
This is Laura with TIEC. I can respond to that quickly. One of the things that we had talked about, and I know this was discussed during the batch process with some kind of portal, because I do think the transparency through the process is something that we’re also concerned about. So it’s not keeping the information from ERCOT. It’s just having the TDSPs be a part of providing information to the loads in a way that’s easy to understand. And then a transparent portal for all three parties involved. So I think we’re aligned there. Okay, great. So just so I can repeat this back to you, you all support a transparent portal so that large loads can see the status of their project as it progresses through the interconnection process.
And you don’t think that this language prohibits access. Right. I think we were intentional with the language to leave the door open for that type of process for that transparency. So yes, to answer your question. Thank you.
Okay. Are you covered? You’re good, Brian.
Oh, good. Thank you. And we did, you know, we wanted to be in person. I’m in often. So we just had that unexpected HVAC issue, I believe, at the med center. So we’re not sure. Oh, yeah. A lot of criticism of you. Definitely. I get it. Well, I mean, I’m sure there’s good people really working hard to get the HVAC checks. I hope so. I hope so too. All right. Let’s keep going down the queue. I did like that slang though. The ugly twin slang. Let’s go to Basit.
Basit from Zero Emission Grids.
Okay. Martha, why don’t you go ahead and we’ll see if he has an audio issue or something. Thanks, Caitlin. Can you hear me? Yes. Okay, thanks. Yeah, this is Martha Henson from Encore. Beth had asked earlier for a TSP opinion on this. And of course I’m speaking only for Encore here. But when we first saw it, we didn’t have major concerns with TIC’s comments on their surface. You know, we’ve historically been doing a lot of doing this function, you know, for years in terms of passing through load models and other customer information from the customer to ERCOT. However, I would say that that construct is becoming more and more challenging, especially as we saw, you know, sort of the onboarding process into batch zero. There’s a lot of different pieces of information coming into play that had to be provided in very specific timeframes, tight timeframes. And so, you know, I agree with the comment earlier that a common portal like Rio for loads is really the best solution long-term so that, you know, all three parties can see the same things and that, you know, multiple parties can be inputting information. I think also we didn’t actually know ERCOT’s opinion on this when the comments were filed. I think it would be helpful to hear their opinion because I think what I heard at Ross is that they have some concerns with this. And I think at this point, we would be somewhat deferential to that, especially given how the models were provided in batch zero. Thanks.
Okay, so is that a question for ERCOT?
I think it’d be helpful to hear from them. I’m sure they’ll weigh in at some point here. Thanks. Okay, Fred, do you want to go ahead now or do you want to go with the queue? Hi.
Hello. Hello. We dropped, we heard at the beginning, but your audio dropped. How about now? Now it’s good. Okay, thank you. So as Martha mentioned, we discussed at hours and the TIEC proposed redline changes.
And I think that we have several concerns for the language here. One is the location of the language. So it probably require a broader review of the whole planning guide to try to make sure there’s a consistency or kind of potential language added in other sections as well. But I would say overall, additionally, I think we provided and discussed at hours is it will be more efficient to update the data directly from the entities and that can really minimize the intermediary communication and the data exchange through kind of multiple entities for the same model. But we recognize the feedback and we think we recommend addressing this one in the ongoing page and discussions and have a kind of a better holistic discussion about ultimately in terms of how we receive the models, how all the entities are mentioned in an efficient and effective way. So we do come in to maintain our language and address this one in the page and discussions.
Okay. Thanks, Fred.
Let’s go to Blake. And then I see that Rusty posted his questions, but let’s go to Blake first.
Blake Holt, LCRA. Agree with a lot of the comments that Martha raised. The current email process is not sustainable. We’ve heard of portals coming. We’ve heard the portal may even be accelerated with the audit process. So very supportive of that. And I was actually gonna question Fred as well. The language reads okay to me right here, but I just wanted to verify that it wasn’t going to handcuff ERCOT with that new process being stood up. I do agree with Fred that this may be better handled more holistically in the batch one and CTP discussions. So from the LCRA perspective, my preference would be to move forward with the language as approved by Ross and let’s commit to addressing this more holistically in further discussions. Thanks.
Thanks, Blake. Let me, I’ll go back to the question from the Bureau of Mission Grid. For November 2SA, is MQT report submission a mandatory requirement for a LCL? Is that, Fred, is that a question for you? This is Fred, yeah. I can try to, I would say as of now, there is no MQT requirement for LCL. And this is what P144 tried to establish. So once 144 become effective, I think the process will really help the entity perform the MQT and that really will improve the efficiency for the project getting to the QSA. So as of now, until 144 is in place, there is no MQT requirement.
Okay. Okay. That’s clear. Let’s go to Bob Whitmire. Do you want me to?
Yeah, I’d just point out 90% of new large loads coming are data centers. While I’m sympathetic to TIEC, 90% of the problem needs that direct communication. So I’ll just leave it at that. Thanks.
Okay. Thanks, Bob. All right. Cue is clear.
Do we need to have more discussion?
We would be looking to, or one possible motion would be, recommend approval of figure 144 as recommended by Ross in the 86 Ross report.
People can make other motions if they’d like. Is there a motion we’d like on the table? Do we need more discussion?
Go ahead, Beth. Yeah. And I appreciate us taking the time to work through this. As you can, you might imagine, like I said, we spent a lot of time on this issue at ROS as well. In the aftermath of this discussion, I’m aware of TIEC’s concerns. I understand those concerns, but I am more compelled by the comments, but the last comment by Whitmire, let’s solve the 90% problem.
And I support Blake’s position that said, where he said, let’s improve, let’s go ahead and endorse it as recommended and then put the pressure on to get some sort of portal done. I think that that’s probably our best choice today. Now, if that needs to be a separate motion, I’m happy, I think I’m happy to make that. I’d prefer not to, but I could make that or we could just put this on the combo ballot for approval. So those, I haven’t quite made a motion, but I’ve indicated what I’m thinking.
Okay. And you have some time. We have Bill Blevins in the queue.
You there, Bill? Can you hear me? Yeah, we’re excited to hear from you.
All right, well, so I guess I had a question on this language.
What I believe is that you will need some sort of a tool to help out with the communications. I think this will help everybody, but if a industrial TEIC customer was doing a large project and wanted to use the portal, would they be able to with this language? Does this give the optionality?
The optionality to use the port, to have a portal? Right. If they’re saying that they want to, they prefer to use the TSPs at this point in time, I guess that’s what the language says, but maybe not everybody wants to do that. If they’re an industrial customer, would they be able to use the same process that the data centers and large loads are wanting to use? Oh.
Okay.
So this is a question for TEIC. She answered a variation of this question, but let’s go back to Lauren.
Yes, we think this leaves the optionality because it’s either through the TSP or a process sent to the large load by the TSP. And that process could be this portal that we’re talking about. So yes. But I think, right. I think we’re now asking about the optionality. If we have a portal to also let’s do it through the TSP, but I think that’s still sort of the same question.
Okay. Okay. Let’s go to Ned.
Hey there, Ned.
Okay. Okay. Aaron, do you want to go ahead while we wait for Ned?
People hear me? Yes, ma’am. Okay. Okay. Ned’s mic seems to have stopped working. Aaron, are you, has your mic stopped working as well?
Can you hear me now, Caitlin?
Yes. Okay. Also, I guess I’ll come on camera. Just talking to myself. No, you were doing great. Everyone could hear you.
It’s fine. So I think from A&P’s perspective, we’ll echo what we were hearing.
It sounds like ERCOT doesn’t love the language. I think we need to make some progress on this, understanding some of what was shared by ERCOT at the PUC last week with the portal potentially coming for batch zero verification. And then also I think they’re pretty grounded in stating it’s coming for the future comprehensive transmission planning process anyway. I would also say, I think there’s some more details just around dynamic QSA handoff process that need to have further discussion. And so taking that holistically will be important because I think there’s a few more details that aren’t encompassed directly with PGR 144 that do go along with the whole topic.
That’s all. Okay. Thanks, Aaron. Thank you for coming on camera too. That was on accident, but you’re welcome. That’s great. Keith will like it. Keith likes to be on camera too. All right. Let’s, Ned, it’s actually the same question as Bill. Would it be better to have direct LL contact with ERCOT as a default and options for TSP the ferry if all parties agree?
I think that’s a rhetorical question, sort of. And we’ve had a lot of discussion about it, but does anybody want to answer Ned’s question? TAC, TSP to the point, to the extent that it hasn’t been covered.
All right, Ned, Mike working, not working?
Okay. Any other questions or comments on Ned’s question or anything else?
Mike is sus, I bet that’s true.
Okay. Okay. So we’d be at the same spot. We’d be looking for a motion and the motion that would mimic what comes out of Roth would be recommend approval of figure 144 as recommended by Roth in the 86 Roth report.
Okay.
Combo ballot?
Separate ballot, please. Okay. You’re going to need a separate ballot, which is fine. As people noted, there are a number of abstentions on the language vote on this figure. And then we lost most of those abstentions as we got down to the IA vote. So I think it’s been a couple of months since we had this sort of discussion at Roth, but the separate ballot here is fine. So that would be a motion from Blake with LCRA. And that would be to recommend approval of figure 144 as recommended by Roth in the 86 Roth report. Is that correct, Blake?
Yes. And the second from Chris Hendricks, you are fine also, Chris, with what I just read? Yes. Awesome.
All right, Corey, tell me what I did wrong and then we can go for it. Within this meeting or overall, what’s the time? Over, you know, life. You can just give me a report later. Everything is perfect, as always. I meant about this motion, but you know. The folks that are wrestling with your mics, I can absolutely take your votes in chat as needed. But on the motion as Caitlin laid out to recommend approval of figure 144 as recommended by Roth in the August Roth report, we will start up with our consumers with Garrett.
No, sir. Thank you, sir. Mike?
No, thanks. Thank you. Beth? I’m going to vote my least favorite vote and abstain.
All right, thank you. Will?
Can you guys hear me? Yes, sir. All right, I’ll probably just going to abstain as well.
Thank you. Nick?
Nick Fehrenbach, you with us?
I’ll loop back around. How about Beth for Chris? And he’s going to make my least favorite vote also and abstain. Fair enough. And I’ve got your no in chat, Nick. Thank you. All right, on to our co-ops. Blake? Yes. Thank you. Kyle?
Just seeing Kyle with us today.
How about Joe Dan for Mike? Yes, please. Thank you, Corey. Thanks, sir. Lucas for John? Yes. Thanks, sir. On to our independent generators. Ned?
And I can take you in chat, Ned.
All right, we’ll let the drama build up on that one. How about Brian?
Yes. Thanks, sir. Bob Helton?
I can take you in chat, Bob, if you need to.
How about Kaitlin?
What I can only assume has to be best favorite vote, right? Yes.
She’s always so positive. That would be my guess. On to our IPMs, Jeremy?
Yes. All right, thank you. Thanks, sir. Seth?
Yes, thanks. Thanks, sir. Bob, I got your yes in chat. Thanks, sir.
Continuing our IPMs, Shane for Reshmi? Yes, sir. Thank you. Thanks, sir. Ian? Yes. Thank you. Thanks, sir. Welcome back. Thank you. On to our IREPS. Jay?
I’m gonna abstain on this one. Thank you. Okay. Thanks, sir. Chris? Yes. Thank you. Jennifer?
Jen? Jen with us?
Actually not Santa. Which means we’re missing Rhythm Ops and Reliant.
All right, Nat, I got your yes in chat. Thanks, sir.
On to our IOUs, Martha? I’ll vote yes. Thank you, Corey. Thank you. Keith?
Yes. Thank you. Ebi?
Come back to Ebi. How about Erin?
No cap. My answer is yes. Sweet. Thank you, ma’am. Ebi, I’ve got your yes in chat. Thank you. On to our Munis. Diana for David.
Keeping with the theme, I’ll say yes. Thank you. Alicia?
Yes. Thank you. Jose? Yes. Thank you. And Curtis? Yes. Thank you.
Okay. Motion carries. 87% in favor, 13% opposed with four abstentions. Thank y’all.
Okay. Thank you, Corey. And it’s been a couple of meetings, but Ann will ask for the reasons for the no votes as we head into the board.
So, if you can just respond to her, that’s helpful to us. All right, Shane, I will turn it back over to you.
All right. Yeah. Thank you, Caitlin. Other recent raw sessions, we urgently tabled NOGR 289, which is the extensions for large computational load cooling and ride-through compliance, and we’re still reviewing that one, but it’s one that was deemed important enough for urgency.
So, we did the always-popular urgent table there.
We endorsed NPRR 12985 on GTC exit solutions and NPRR 1517 related to the generator language and registration of distributed generation. Figure 140 is also related to that, and figure 146, which renames the quarterly stability assessment and modifies the assessment schedule with an effective date of – recommended effective date of 9-1-27. So, those ones will be reviewed in the IAEA, which are still known under PRS. So, no action needed at TAC at this time. Next slide. I won’t get into this part. I’ll wait for after – maybe after Luis’s update on that. Here’s the NOGRs that are still under review at Ross, a lot of them related to DRRS.
Next slide, please. Quite a few PIGRs making the rounds. I do – I think it’s this PIGR 130 was canceled, so that one will drop off our list. And making our way through the NPRRs as well. Some of these have been sitting here for a bit. So, we’re trying to figure out what’s going on with NPRR 1272. This one might end up either making that – trying to make a push or getting withdrawn. It’s an old one submitted by Oxy. Next slide, please. And we are going to be canceling our September meeting along with all the other subcommittees, it looks like. And so, our next meeting will be October 1st. Okay. Thank you, Shane. I appreciate the report. Are there any final questions for Shane on the ROSS report? Bob Whitmire, do you have a comment? Yeah, I did. If you flip back, I think, three slides, you had one related to 1310. Yeah, NOGR 284. Do we still need that, or is that replaced by 288?
I think that everything related to 1310 is kind of sitting. Originally, our last update I think we got on that is that it was waiting for the reliability standard assessment to complete before we took up the idea of the release factor. Certainly, the energy storage portion of this has been pulled out, but I think even that might need to be revisited. The scope of that or the specifics related to the participation might need to be revisited if the release factor concept is considered. Thank you. That answered my question.
Okay. All right. Thank you, Shane. Appreciate the update. We’ll move on to Item 8 from here. It’s the WMS report, and I’ll turn it over to Blake Holt for that presentation.
Thanks, Martha. Blake Holt with WMS. Short and sweet this month. First off for endorsements, NPR 1317 was endorsed. There were a few abstentions, but this one has language has passed at PRS and is awaiting an IA vote. The remaining three, 1335, 1337, and 1342, were all unanimously endorsed at WMS and at TAC today, so I’m glad those are moving forward. We’ll skip the AS methodology vote discussion and go to the next slide.
I just wanted to draw your attention to NPR 1340. This is DRRS with ESR participation.
We’ve sent this one to WMWG for discussion and then also wanted to highlight NPR 1343, which is an introduction of a PTP obligation bid fee. We’ve sent this to CMWG for further discussion, so if you’re interested in either of those two, I would direct you to those working groups and we can go to the next slide. Also wanted to highlight that we’ve canceled our September 2nd meeting and we’ll meet again on October 7th. Happy to take any questions that the group has. Any questions for Blake? Yep, you got it. Go ahead. Sure. Back to you. Great.
Any questions for Blake? All right. No voting items here, so we can move on.
Our next item is ancillary services methodology. Brittany Hurcott, does anyone need a break before we do that? Okay, 10 minutes. Recess keeps up. You want to try to be back at 11?
All right, let’s do it. We will see everybody at 11.
Okay, we are at one after. Should we get started? People ready?
Okay. Luis, are you on? Yes, Caitlin, I’m here.
Awesome. Okay, so we are going to get to our main event, which is the ancillary service methodology for 2027. My plan here was to have Hurcott present. Luis has his presentation on substance, and then we will have Corey, I think, give us a little bit of information on procedures here, the things we can do. Then we’ll go to the IMM, the filed comment, then we’ll go to WMF and Ross recaps, and then I know we had comments filed from HEN. I don’t believe we had any other comments filed, but we can take other stakeholder comments at that time. Does that sound like an okay plan for everybody? Okay. Why don’t you go ahead and get started, Luis? Sure. Thank you, Caitlin. Caitlin, can I ask, I’ve got quite a few slides here. Can we hold questions to the end, just for efficiency? Yes. Thank you. All right. Good morning, everybody. Luis with Hurcott here. I’m here to talk about the 2027 AS methodology. We’re here to talk about the proposed methodology, and we’re seeking endorsement from TAC today on the proposed methodology. You’re going to see kind of an overview and recap of what we’ve talked about through the working groups and through the subcommittees in the first few slides. But after that, there is some new analysis that we’ve added about probability of an event, which was requested through the PUC 2024 AS study. So, that is new. I think we’ll take some time to walk through that to make sure everybody’s caught up, but I just wanted to give a heads up that that’s there. Next slide.
All right. As a general overview, we’re not proposing any changes to regulation in RRS. Those will continue to use the methodologies that we’ve used in the past with updated data from 2026 so far. One note I have on here is the minimum RRS PFR is still using 1377 from 2026. NERC actually sent us a notification this morning that they have a draft and preliminary values for 2027. So, we are going to review those and hopefully have some updates for the board discussion.
Now, the next thing. As we move to ECRS and non-spin in the probabilistic model, the one thing that we are proposing is to increase or update the risk credit parameters that are utilized to more reflect increased historical headroom that we have in RTC plus B due to the growth in solar and ESR capacity. Some additional information that you will see today. There’s a red line document for the AS methodology that’s posted. I will say if you looked earlier this morning, it was a black line. We’ve replaced that. Hopefully, now you should see that. The next thing is an HTML that shows all 756 scenarios is written here. Through our efforts and discussions with stakeholders, we now have 972. So, anywhere where you see 756 in the document, there’s actually over 900 scenarios that can be looked at. We added EEA-2 to the analysis.
That same HTML also has regulation up and regulation down quantities. As through any of the discussion that we’ve had, the data only is updated up to July. It does not include data from August to December. So, the quantities will shift slightly or change in those months or for the entirety of the year for that fact when we’re talking about probabilistic model. So, please keep that in mind. Next slide. All right. So, this again is overview of things that we’ve discussed in the past. So, just as a reminder, ancillary services are required to balance supply and demand all while also meeting the reliability objective defined by NERC reliability standards, about 1, about 2, about 3, and reduce operational risk associated with variability of uncertainty. So, in here, main thing that I wanted to cover, regulation up and down, RRS, and a portion of ECRS. One of the responsibilities of ECRS is support frequency control, support recovery and frequency, and those are all second-minute products that are intended to support frequency control. Now, the other objective of ECRS and the non-SPIN is this is now capacity to help cover uncertainty. This is that minutes to hours coverage that we’re looking for, and this is how the probabilistic analysis – probabilistic model is covered, calculating these quantities for the methodology. The takeaway is all of these – all of the AS products work in combination to support real-time reliability and meet the NERC BOW obligations. And this is one of the key takeaways, and we’ll see when we get to the probabilistic model of ensuring that we’re preserving the ability to restore REG and RRS with ECRS and non-SPIN to ensure reliability as well.
Next slide. So, I’ll go through these very briefly. This is just regulation and RRS on the next slide. What I wanted to cover here is because we’re not making any methodology changes and we’re just using updated data from 2026, this will show you the 2026 quantities we had last year, the proposed quantities we have for next year. And overall, what you see is the trends are very similar to 2026, not much changes for regulation and RRS. So, you can see this by month. Again, additional data, monthly, hourly values are in the HTML that’s been posted. Next slide. This is now RRS. Again, the takeaway here is the quantities are very similar to 2026. The posted quantities, I will say as a reminder from the first slide, is if – now that we have the – we get the NERC preliminary IFRO value, we’ll go and update these quantities based on that calculation for that value to ensure that they’re reflected for 2027. Next slide.
Okay, so now we’ll get into the ECRS and non-spin probabilistic model and our recommendations that we have for this year. So, as a reminder, in the model that we’ve defined and created in 2026 is we have our inputs, which is our risks, our net load forecast error, our forced outages, and then some accounting for risk credit, availability and online headroom, 30-minute availability and online headroom, 30-minutes offline capacity, and ESR capacity that’s sustainable for some amount of hours. We feed this into our engine. We run a Monte Carlo optimization, and with the risks and risk credits, we get a net risk that now runs through a convergence criteria. And again, these are all parameters that can be fed into the tool. We’ve run over 900 scenarios in the HTML that can be observed and analyzed.
And the goal here is with various parameters of inputs, with various parameters and convergence criteria, the probabilistic model is attempting to meet convergence criteria with the inputs that have been provided. Now, for our recommendations for 2027 is we are still recommending a six-hour look-ahead period for risks, one in 10 event, 100% reg plus RRS, and a 3,000-megawatt threshold in the convergence criteria. I will share additional details on these as we go through. And I’m sorry, the last piece I had on here was an increase in risk credits. This is a breakout now of online, offline, and ESR for nighttime hours and daytime hours. So, as a reminder, last year we used the 25% during daytime hours. We’re proposing increasing that to 50% for online, 50% for offline, and 60% for ESR. And specifically for ESR, the risk credit is intended to be sustainable for four hours. Okay, hopefully that was a recap of how the model works and our recommendations. Next slide. Okay, so now this is more kind of some things to focus on and related to proposing changes for the headroom parameter for risk credits. The next few slides will somewhat support the three topics that we talk about here. Most of it should be recap of things that we’ve talked about. I just want to make sure that we’re all following along and kind of see what our perspective is on this. So, the first one is uncertainty is still growing. Forced outages and forecast errors still occur, and we still have the variability in renewable resources and potential for weather forecast misses. So, that’s one of the big things to consider, is that uncertainty is growing. Two, available headroom has increased as we review 2026. Now, one of the things that we’ve talked about is in RTC, the thermal commitment efficiency has improved. So, we have seen some of that online capability that we historically have move to offline, but still, it’s offline 30-minute startable thermal. So, we’re still having availability of those resources to be brought online fairly quickly if we need them. Now, the other thing to consider is solar has continued to grow and ESRs have continued to grow. This helps cover any additional load growth that’s coming, and one of the reasons why we’ve considered additional risk credits increased from 25 percent is ESR capacity has come in and filled a lot of the gap in the growth that we’ve seen over the last year. The third thing to consider here is load is still growing, but we think headroom may still be available in 2027. So, there is a lot of discussion about what the load growth patterns look like for the next few years. Now, with increased load growth, we are still seeing increased solar and increased ESR. So, there is the ability that some of the headroom that we’ve had historically is covered by load growth, which is one of the main reasons why we’re not assuming 100 percent of historical headroom to set our proposed quantities. But we do consider that we can account for more headroom availability than the 25 percent that we took last year. So, these three things are kind of leading to why we felt we could consider additional risk credit in our proposed quantities. Next slide, please. Okay. So, the next few slides are to support what you just saw as a summary of the previous slide. So, this is just showing increased wind and solar capacity, as you can see, for 2027. We are still looking to see – or what’s planned is to see additional wind growth and solar growth. So, one is those are helping cover load, but it also does increase, at least from specific – specifically for IRRs, does potentially impact the error that we may see in net load forecast. And in particular, that’s one of the reasons why we take additional solar adjustment due to we see solar forecast error increase with the amount of solar capacity installed.
Next slide. Now, this is to touch on that uncertainty growth factor. So, what you see here are trends in solar, wind, and outages. We see a slight increase in wind, but overall, the major increase we’re still seeing is solar. And part of that is what we’ve identified is by doing a more deep dive into the solar forecast error, we’re seeing a lot of the capacity is being installed in Far East Texas today. And a lot of the forecast performance in that area does have some uncertainty, and a lot of it because it’s along the coastline where there is a lot of cloud coverage. And so, we are seeing increased uncertainty from that area that needs to be covered. And then, the other observation is outages have had a slight uptick in forced outages as well. All to say that even with the renewable growth that will help cover load, it does increase with a growth in uncertainty, and we still see the slight increase in forced outages as well. Next slide. Now, this one is talking about risk credits and what we’ve seen. Again, last year we took a 60 percent credit at night, which we’re not changing or we’re not proposing to change. But we did only take a 25 percent credit during the day. We were somewhat unsure what RTC would bring and how the efficiencies that we expected, how that would affect HEDVR. Now, because of that, now what we’ve seen is as we look at RTCB, now that we’ve been implemented – now that it’s been implemented, we have seen that shift in online to offline, but we have seen additional capacity be available due to ESR capacity growth. So, we took a 25 percent credit on ESRs last year based on the capacity that was available historically. If we look at that credit today, with the amount of capacity that has been installed in ESRs and solar, but specifically for ESRs, we see that headroom available from those resources to take additional credit. Our current projections show that ESRs will continue to grow in 2027, which has made us feel better about increasing that quantity to 60 percent for batteries specifically. And so, overall, what we’ve seen is we do feel confident that we can count on additional headroom being available primarily due to solar and ESR. Now, one note that we have talked about is evening ramps. Evening loan ramp shows that there are levels of headrooms are lower in particular because ESRs are depleted to cover the net load ramp. So, this is something that we do want to monitor. We do want to see, you know, how that – how net load periods affect risk credit accounting and headroom accounting and feed that into potential changes that we look for 2028. So, it is something that we are looking at and have observed that even during daytime hours, since we have a night and daytime hour accounting, evening hours is really where the tightest conditions do show up. Next slide. So, this is showing, again, that ESR capacity is growing, expected to grow for 2027 and 2028. Now, the question becomes, you know, load is still increasing. So, load growth will consume additional headroom, but we believe with – this is one of the main reasons why we don’t want to take 100 percent risk credit. We do believe that if some of that is going to be consumed, we don’t want to count on it if it’s going to be used to cover base load, but we still feel confident that we can use at least up to a 60 percent in ESR headroom to – for risk credit accounting. Next slide. This is an overview of parameters that we are proposing and some stakeholder feedback that we heard through our efforts of working through the groups. Our proposed is six hours for the look-ahead period for net load forecast errors and for outages. I will mention that on here the IMM has proposed a three-hour look-ahead. We have included that in our scenarios, and as we move down, we have seen – and I apologize, I missed the perspective. So, one of the main perspectives here is, as a reminder, is the ROCs that we see as availability typically have at least a six-hour startup time, and that’s why we’ve tied that six-hour to that look-ahead horizon, is we’re trying to ensure that we have the resources available that we can ROC within the amount of time necessary to cover the uncertainty that we see. The next one is looking at the threshold. We are at a 3,000 watch threshold. The IMM has suggested a 1,500 or load shed threshold. Right now, our observations have shown that with – we don’t see much of a change by going from 3,000, 2,500, or 1,500, because there is – we have another variable that ensures that we have the amount necessary in ECRS announcement to recover regulation and RRS reserves and make sure that they are replaced, which is the next variable on our list here, is this 100 percent of REG plus RRS is what ERCOT is proposing to cover. IMM has proposed something less than 100 percent here. The one reminder here is going back to this first slide – second slide I had was talking about why we have AS, how they help ensure that we maintain reliability and frequency control, and ensure that we meet the NERC BAU requirements, ensuring that REG and RRS are available during events to recover from those events – maintain and recover from those events. The last one that we did hear a lot of feedback from various stakeholders is credits. So, again, we’ve proposed an increase from 25 to 50 percent on online and offline and an increase to 60 percent on ESRs that’s sustainable for four hours. Now, we heard from generators that the credit that should be accounted for is zero and from the IMM that it should be – we should be counting on all credit, all historical headroom, 100 percent of it at a one-hour duration. So, again, this goes back to the analysis in slides that I shared here is we see that load is growing, we see batteries are growing, solar capacity is growing. We don’t know that some headroom will be consumed by that load growth, which is why we’re not recommending 100 percent, but we do think we can account for some of the historical headroom to be able to cover some of that uncertainty. Next slide. So, now, what I have here are just a few scenarios, four scenarios, to talk about comparing quantities. Again, all this data comes from the HTML that we’ve provided with the 900 scenarios. But what we wanted to look at here was how things compare when we’re trying to sort of keep things on a – almost an apples-to-apples comparison here. So, three scenarios on here are showing you the six-hour risk. One is showing you a zero headroom, and then two are showing you 60 percent headroom credit with a 3,000 – one in 10 event, 100 percent right for the RRS. So, the blue here is what ERCOT proposed. The maroon-purple color is what the generators would have proposed as zero risk credit. So, you can kind of see how the AS quantities change based on how the headroom credit is accounted for. Now, the difference between the blue and the green, the blue being ERCOT, and the green is dropping down to a 1,500 credit – I’m sorry, threshold. So, in this scenario, one thing to consider here is that they are very similar, and a lot of that has to do with the accounting for 100 percent of REG plus RRS. So, even by changing that threshold, there’s not a big change in quantities that are produced by the optimization. Now, the last one is a three – the scenario is a three-hour head risk, 100 percent credit, 1,500 threshold, and a zero percent REG plus RRS. This is somewhat close or similar to what the IMM had proposed. So, it does show that the quantities do – are reduced significantly by including – by utilizing those parameters.
So, I think the overall takeaway here is if you look at scenarios one and two, the headroom credit is the largest driver for the change in quantities, while the target reserve changes for S2 and S3 don’t change very much. But by accounting for 100 percent credit in the S4 with a zero percent REG plus RRS restoration, those – working together by having those parameters together kind of sets up a sort of extreme scenario that we as ERCOT don’t support, is those quantities would be very low, and it doesn’t meet the REG and RRS restoration for us. Next slide.
Okay. So, a lot of that was recap of the probabilistic model. This is where the new analysis starts. So, I want to – I’ll work through this slowly. I hope – hopefully, I’ll cover all the points that I need to. But part of the PUC 2024-AS study, we were asked to analyze what is the probability of experience and watch in EEA load shed with alternative target reserve levels. So, this was the table we were given as part of the study as how we should be trying to quantify probability of an event. So, what we’ve done here is there’s two flavors to this analysis is the first one can be observed just by utilizing parameter inputs and scenarios from the HTML from the optimization. So, we take all the scenarios that we’ve generated through the probabilistic model, and we conduct an analysis of the probability of an event. Now, the key thing here is for each scenario, we use that scenario’s criteria, the parameters, and analyze how often the ECRS announcement quantities minus the risk that we have after we’ve accounted for risk credit fall below the thresholds that have been defined in this table. And we express them as a probability in expected hours per year. This data is in the HTML that you have. There’s a section in there under a title of reliability observed by the optimization by scenario. There’s some yellow bars in there that you can see. Now, the thing about the way this analysis works is this is simply saying if I input my parameters to the optimization and I have a certain convergence criteria, can the tool meet that convergence? And what do the probability of events look like due to the risk that is observed by each individual scenario? So, that kind of sets up one flavor of analyzing how each scenario sets up the quantities and what sort of risk and probability do we get from that. Now, comparing each scenario is somewhat of an apples to oranges when you think about it because each one has its own risk based on the parameters that are input. So, we’ve done a second piece of this analysis. We go to the next slide. So, now what we were trying to do is do the same analysis but kind of review the total AS requirement of a scenario and identify the reliability benefit we get from making adjustments to the scenarios. So, now what this is doing is comparing each scenario that is produced by the optimization and comparing it to a single common risk. And what that means is if I procure the highest amount of quantities, that is to cover all risk that I have seen in, or at least in this scenario, what would be the conservative parameters for this. So, I’ll try to walk through what you’re seeing here a little bit to hopefully catch everybody up. So, the dots that you see on your screen are blue is WATCH, orange is EEA, and green is EEA-3. The left y-axis is total reserves that would have been calculated by the probabilistic model, and the x-axis is the expected hours per year to meet the thresholds that have been defined. So, hours is the bottom axis. And what we’ve done here is measure this against one risk. So, I take the green box at the top, is I’m now looking at no headroom being accounted for, a zero risk credit, which means if I have zero risk credit, I have to cover all the uncertainty with an AES plan, which leads to the highest total AES megawatts required.
If I look a little bit further down the curve, I see ERCOT’s proposed quantities, which is essentially saying, well, if I adjust the parameters to meet the ERCOT quantities and I score that against the common risk of the green box at the top, what happens is I do reduce the quantities that I have, and it moves me across the right of expected hours per year. So, there is this cost of the requirement and reliability benefit that I get from moving the quantities across this probability. At the very bottom, you have the IMM proposed quantities, and I’d be very careful here is the IMM proposed quantities, they are at the bottom. They do show that you get a higher amount of expected hours compared to this single common risk. But I’d be very careful is the one thing to consider about the parameters from the IMM proposed, they are very different from the risk that’s being assessed here from the base common risk.
So, what the takeaway from this is looking at if where ERCOT’s proposed lands is somewhere in between the zero risk credit and the IMM proposed 100% risk credit, and we’re just somewhere in between is the hope that we were trying to show from this risk analysis. I’m sure I’ll get some more questions on this later, but I’ll continue on and we’ll come back to this as we need to.
Next slide. Okay, so now I wanted to kind of try to break that analysis down even further. So, built on that risk assessment, we wanted to now take, okay, if I ensure that I have 100% reg up plus RRS, I’m using a six-hour forecast error, a one in 10 probability.
What happens if I vary headroom and the target reserve threshold of 3,000 and 2,500?
And each of these are now evaluated against that six-hour head risk. So, this is somewhat trying to show ERCOT’s proposed quantities and what happens if things change. Far left of my table here is showing you what happens if the risk credits change, 0%, 60%, 100%, 60% being what ERCOT proposed. What if the target reserve level changed from 3,000 to 2,500? How does that probabilistic model handle those parameters? What is the total AS required? What is the total AS cost for the AS? One asterisk on this AS cost is this is using 2025 MCPC data, historical data to calculate based on AS quantities. It’s not a reflection of what may happen in the future. So, just wanted to make sure that that is clear. Then as you work your way to the right of the table is looking at how the expected EEA hours change based on the six-hour head risk. So, I’ll take the first box under EEA-3 of no headroom, the highest risk at 0% credit. You see that there are zero hours of EEA-3 expected here. With ERCOT’s proposed of going to 60% credit, you see that that number increases to 48. If I looked over to say some headroom was accounting, if I took the six-hour credit, that does drop down to zero. This is simply showing that the probabilistic model is ensuring that it’s meeting the criteria that it’s been given of the probability of an event. So, we would expect a zero here. Even if you went to 100% in headroom in the lots of headroom scenario, that also still drops down to zero in that scenario. But what changes is the number of EEA hours expected. It goes up to 261.
So, that’s how you read the top portion. Now, the second half of this chart is, well, what if I change that threshold to 2,500? And what you see is now let’s just compare the 60% ERCOT proposed and the 60% in 3,000 versus 2,500. What you see is there’s minimal change. The AS quantity somewhat is very similar. And the total cost is also somewhat similar. It doesn’t change by very much. And you do see a five-hour change in EEA-3. And I apologize, I didn’t go to EEA-1, but the second half of this table also shows something similar. So, you’ll see 179 EEA-1 hours, 194 hours for 2,500. So, there is somewhat of a slight change in the expected hours, but it’s also minimal. So, from this, I know we landed at a 3,000-threshold reserve to use for our proposed quantities. This is showing you that even if we go to 2,500, there’s not that much of a difference. And it’s very similar, almost indicating we could go to a 2,500-megawatt threshold because the probability of event is minimal change by doing so.
So, that was the takeaway of this, is the 3,000 and 2,500 thresholds are very similar, assuming you’re holding the headroom credit to the same reserved levels and 100% REG plus RRS, and all the other parameters stay the same. Okay, so next slide. Okay, so that was the end of my analysis. This is just a recap of everything we have here. I think the only thing, the one thing I wanted to call out here is just a thank you to all the MARC participants that have given us feedback, that have worked through the workshops or the working groups and subcommittees. We’ve had calls with the IMM and the PEC and making sure that we’re engaged with them and making sure that we are all on the same page. So, I just wanted to say thank you for that, and that we are seeking endorsement for this, but I do want to take questions and go back to see where I need to fill some gaps on this analysis.
Okay, let’s take questions and comments for Luis. All right, let’s go to Ned. Can you hear me? Yeah, well, try again. I’ve got to do it on both the phone and the computer to try to make this work. Apologies for that. No echo. Okay, well first of all, Luis, thank you for that additional analysis. I think that’s really helpful to see, and I can’t help but ask myself, if we’re in a lots of headroom scenario, how do we move to the no headroom scenario? And I’m going to posit that we do that by not valuing the ancillary service reserves, actually the operating reserves that we need to address the risks that we see. And I think your assessment is really helpful to see what the actual reliability impacts are. The relative difference in costs is, I mean, across all the scenarios, is relatively small, recalling that we have, what is it, I think it’s about a $14 billion wholesale market. I think the IMM had some assessment on that in the last two state-of-the-mark reports that was really helpful just to see what that total is. But for a relatively small change, you can really impact the long-term development of the market in a much better way. Recall that we don’t have a capacity market, so there’s not really something that you can rely on from a capacity standpoint. You have to rely on the energy and the ancillary service market currently to get the outcomes you want. And, you know, just the logic on the risk credit approach seems to me kind of like, you know, not buying or bringing your own lunch because you’re just going to assume you can pick up something from the break room fridge just because it happened to be there previously. And that’s, you know, if you keep doing that, folks are going to stop bringing their lunch and you’ll end up hungry. So I really appreciate the assessment. I think it’s incumbent upon us to move something forward. And I would, I’m going to make a motion that we endorse the ERCOT proposal but with a 0% risk credit. Okay, so that’s a motion you have on the floor, Ned. Endorse the ERCOT methodology but with the 0% risk credit. Okay, so there is a second to that motion. So motion from Ned and second from Blake. Let’s continue discussion unless somebody wants to call the question and let me go to Corey quickly because we’ve had some questions for procedure because they have some no votes coming out of the subcommittees.
So Corey, could you maybe remind us of what we’re required to do or allowed to do as TAC on the ancillary service methodology?
Yeah, sure thing. Up on screen is everyone’s favorite section of the protocols, 3.16 paragraph three that governs the AS methodology. And, you know, up until winter storm URI, all it said was the board shall review and vote on it. And then with the implementation of PUC approval throughout most things, we’ve added language at the bottom does note that the board is now only recommending approval and it’s the commission that has final approval. But these two votes, one at the board and one of the commission are the only two things that are required. And everything up to that is all just, you know, stakeholder feedback, it’s the workshops, it’s the roadshow. But as we saw at ROS and WMS on this particular time through the lack of an endorsement or the failure to endorse something doesn’t disrupt the process. So this will still proceed to the board. And so a TAC vote today, successful TAC vote today, while we certainly hope it’s to endorse the ERCOT version, anything, any variations would be just a recommendation that TAC is making to the board alongside whatever ERCOT presents to the board to see what they would vote on. Okay. So it’s an endorsement and we are not required to ERCOT is seeking that from us, but so we could endorse any version of this we want. And this, those motions fail, it will still go to the board. And we could also take no motion. We already have one, so we don’t need to worry about that. But in theory, we could have had no motion. Is that all correct, Corey? Yes, that’s correct. So I guess what we do that goes to the board.
Go ahead. Add a twist. I was just gonna say the added twist would be is that depending on the variations y’all propose, we might need to pop open the red lines that Louise has and start making red lines that everyone TAC knows everyone that is voting here at TAC knows what they would be recommending to the board. So sticking in 0% risk credit, is that a red line we need to make to the AS methodology or is that all handled outside of it? Is that a question? I guess that’s a question either Ned and or Louise of the things that are being, because again, we’ll make sure that what TAC is presenting, if a motion from TAC succeeds, and that goes to the board as TAC’s recommendation, I think the board would likely want to look at the red lines to say what achieves that thing? What does your recommendation look like TAC? And so if TAC needs to build its own set of red lines, we would need to do that live here during the meeting to put side by side with the ERCOT red lines. Okay. Okay. Thanks, Corey. Let me look quickly at we have a comment from Matt Ars. Just want to note that the red line methodology document shows the changes from the version that was presented at Ross and WMS. So there, what would have been on the table today, or what is on the table initially is endorsed the 2027 answer service methodology as presented by ERCOT to TAC. And so that includes red lines after Ross and WMS that are administrative edits. Is that correct, Matt? Is that all you were saying there? Yes, that’s right. Okay. So it’s not exactly what was voted on at WMS or Ross. It’s what was presented to by ERCOT to TAC. Okay. Louise, did you want to say something about that? I was just going to say, if we put the motion, what the changes are, we can work on building the red line to align with the motion before board. Okay. So we would not necessarily need that before the board or today, but we would need it before the board. Yes. Depending on what TAC is comfortable with. Caitlin, if I may, I’m looking at it right now. I think there’s, it’s a pretty simple adjustment to strike out the risk credits on page six. So I think you could start there. We’ve got it highlighted and then down to the end of that second bullet and delete. Okay. Just delete the 60%. Yeah. And that’s all the risk credits are referenced. I think, if you don’t mind Ned, I can let you work on that offline or, or, or we can look at it, but I do, you know, unless, unless of course, you know, call the question is the option. But I would like to get through discussion until somebody tells me to stop, which is our typical practice. We always kind of get through the discussion, even if we have a motion on the table. So I will take the comments in the queue. And then if we would like to hear from the IMM about their comments here from WMS and Ross about those votes, and then there were additionally hand and LPRA comments, but let’s, let’s start with the queue and, and take it from there. Okay. So let’s go back to Harika. Hi, thank you, Caitlin. Yeah. First of all, I really want to thank Louise and Nitika and their staff. They worked very closely with us to develop this alternative scenarios and how it’s impact load shed EEA1, EEA3. I really want to thank them publicly. That was one of the requirement in AES study. And hopefully this year we can check that off.
One thing I was going to, can you go to slide 12? I just have a question to Louise. It’s more process question. And I was just want to make sure I understand.
So, okay. The second one, what is the level of risk ERCAS will try to avoid? Like parameter ZZ, you are saying this is fundamentally a question for the PUC, but this is already going to September board. And when things come to us, we usually cannot make changes, edits at the dais. So when and how do you expect commission to set that level? Because we have agency, we have processes, we receive public comments. So how do you want commission to decide that? That’s my first question. The second question is with this convergence criteria, is this even a meaningful question for the commission? And thank you. Thanks, Erica. Yeah. Okay. Go ahead. Sorry, Caitlin. No, go ahead. I was just going to say it’s ERCAS. You may want Matt Ars, I’m guessing, but why don’t you go ahead, Louise? Yeah, sorry. So I just wanted to reiterate kind of the analysis that we had here. So part of the analysis that we had in the additional probability. So I know our proposed is 3,000. And one of the things that we were open to was looking at that probability analysis and looking at what that 2,500 scenario looks like in comparison to 3,000. And we noticed that they were not very different. They are very similar. And one of the things here we were saying is this is something that we would expect feedback from the commission on. But to me is this would be contingent on the approval of the AAS methodology. To me is if there is feedback that commission has for us, it could come back through what is approved as methodology. And if it is a change to 2,500, or is it a change to something else that would come through that process is where I am. What process are you referring to? So would you like commissioners at the board meeting request that and you make it is at the board? To me it was what we take through the to the PUC. So I know the board is in September, but whatever comes after that discussion and when we submit the AAS methodology to the PUC, they can provide what they suggest is the changes that should be approved for the AAS methodology. But again, currently we can approve denial remand. We cannot make desktop edits or anything. So would you like us to remand it and then go through all the process again? We really usually don’t prefer that. Okay, so this is helpful, Erika. Thank you for sharing that insight. Can we process this and maybe think about it for what we put together for board in September? Sure, sure. I’m just making sure the process is there. Okay, thank you. And also the second part, do you really think 25 is a meaningful decision if commission decides that with the contingent secretariat, I mean the convergence criteria?
Yeah, I believe so. I think we see there is some change, although minimal, but it is somewhat of a change in the parameters. But this is all ensuring that our other parameters are still held true, specifically REG and RRS at 100%. Okay, thank you so much, Lewis, and thank you for all your work. Greatly appreciated. Sure, thank you. I saw Matt hopped in. Can I call on Matt? Yeah.
Matt, I was with Erika. I believe that the PUC could instruct us to make changes at the open meeting after the board meeting, because I think that the statute in PURA that talks about approve, reject, or remand, I’m trying to pull it up now, but I’m pretty sure it’s specific to revision requests, and the ancillary service methodology is not a revision request. So I that would fall more under the PUC’s general authority. Okay, I think we need to discuss about that. Floyd is monitoring. Floyd, do you agree? I don’t want to put you on the spot.
I agree it’s not a revision request. However, I don’t know that it directly means that the commission will be able to change it either, which I’m looking at now. Okay, we will talk more, Matt. Okay, thank you, guys. Yeah, Erika, I think it’s a good offline conversation, and the timing for this year will come into play as well. I don’t think this will be initially at the commission until October 15th, and so for the beginning of 2027. I don’t know that there’s, you’d want to think about the time for a remand and revision. Okay, thank you, guys. Okay, let’s move on.
Shams? Yeah, hi. This is Shams Siddiqui with Crescent Power Consulting. I’m representing Hunt Energy Network on this topic today. So on this question of parameters, you know, 3,000 or 1,500, I just want to clarify my understanding with Louise, I guess. If you use the 1,500 threshold, would you be actually changing your operations mode? Are you going away from conservative operations? Are you still, or are these parameters not tied to how you actually operate the system? Yeah, so I think the takeaway from that is, you know, the AS, so these parameters are intended to design around the AS requirements that we need to operate in real-time, which these are inputs to our tools. Now, we would still take the same actions that we take similar to today based on the operational needs that we see in real-time.
So that’s my point, is that you’re not actually, just because you choose a different parameter doesn’t mean that the conservative operations goes away. So this is the answering service methodology should be, must be consistent with how you operate the system. And the way I think that ERCOT currently operates the system is the 3,000 and the RRS and REG and the six-hour. So it needs to be consistent for the price formation to be consistent.
I guess I’ll talk about the HEN comments later that’ll really expand on, you know, clarify what this is all about, this exercise is all about. So I don’t think these choices are, they have to be tied to operations to get any sort of price formation, consistency in price formation. So I was wondering, did ERCOT study the impact of like going to 1,500 on if you’re still doing conservative operations and you’re procuring much less in terms of non-spin or the ASDCs, you’re adjusting the ASDCs much less based on the 1,500, what that would mean in terms of answering service and energy prices, and also, you know, the amount of RUCs that would increase because your conservative operations would still want to maintain enough reserves to avoid the watch. Have you looked at that issue?
So not particularly that direct issue that you’ve asked, but can you help me get caught up here? You mentioned a couple of times real-time operations and conservative operations. What exactly do you mean by that? That’s what you guys are currently operating under, which is that you maintain at least 6,500 megawatts of, you know, generation headroom. You try to avoid a watch. When you’re doing RUC, when you’re doing your RUC analysis, you look six hours ahead for the six-hour uncertainty. So all those are how you operate the system today, if I’m not mistaken. Yeah, so the one thing I’ll comment on there is the 6,500. We haven’t RUCed for 6,500. We are RUCing to make sure that we – the RUCs that we’ve had in 2026 have been to ensure that we can conserve load and meet the level of AS quantities posted.
So again, is we’re trying to ensure that we have that coverage. If the AS quantities are changed to something lower, I mean, or that would then create a lower AS quantity, that would then become part of that RUC process. So again, the 6,500, we haven’t RUCed for that. So in this sense, it would be to cover load and the AS plan. So there would be an effect on operational decisions based on that effect. That’s good to know. So you’re saying that ERCOT has moved away from the 6,500 requirements. So ERCOT is no longer – if we go with the 1,500, you would no longer do the conservative operations?
So again, it depends on what specifically you’re calling out for conservative operations. But yes, we’ve moved away from the 6,500. We would still RUC based on the AS plan and the need to cover load. And the six-hour ahead that we’re utilizing is mainly due to the cold startup time of units that we typically see available. But the RUC engine itself has the ASDCs. So you’re supposed to use the ASDCs in RUC for RUC commitments. So if you go to 1,500 megawatts, you wouldn’t be – it’s whatever the ASDCs ultimately become with that reserve level that you would be RUCing to. Is that not right? I think the goal here is still RUC is still – the RUC analysis – the RUC tool will be utilizing the AS plan that is approved to then tell us which resources need to be RUCed. That’s not my understanding. I thought the AS plan just influenced the ASDCs, and you just have an ASDC in the RUC engine. So why would the AS plan quantities dictate whether you RUC or not? Okay.
Anyway, so we can expand on why that motion makes a lot of sense in when I describe our comments. But I think that consistency is very important in how ERCOT operates and how we set these parameters and how prices are formed in the market. The consistency has to be there to avoid out-of- market actions that won’t give you the price signals for proper operational decisions and investment decisions in the market. Thanks. Okay. Thanks, Shams. I’m going to go to Beth, and then we’ll go to the IMMs. Okay. Thanks for going to me first.
Well, I’m going to let them talk longer, so. Yeah.
That’s a good choice. I just wanted to offer my thoughts on where we are on the ancillary service methodology. I’ve said this in other forums. I’m not a big fan of the risk credit concept. I appreciate Ned’s analogy of counting on lunch in the break room refrigerator is not a good strategy. We shouldn’t be counting on capacity that we are not paying for. I’m with you on that. On the other hand, and it feels like, and if we were in person, I could see Luis’s face grimacing as I say this, but on the other hand, it feels like the risk credit is just kind of a slush factor to get the quantities back to where they make sense. And why do they need to get back to where they make sense? It’s because we’re looking at such conservative inputs, on the other hand. The six-hour look ahead, the 3,000-megawatt watch, the 100 percent of reg plus responsive, those are super conservative aspects. And to chime in on what Andrew put in the comments as Shams was talking, and also the difference between a 3,000-megawatt watch versus 2,500-megawatt, yeah, there’s no difference because the key driver, as we’ve come to understand, is the factor that says non-spin plus ECRS has to exceed responsive plus reg up. And if I could change one thing, it would be that aspect. We don’t have to cover both of those. There’s a sequence of how these services should be thought about being used in operations, and we don’t need to cover both. And so I don’t know that the IMM’s got a specific percentage. ERCOT wants 100 percent. I think that’s overkill, something less than that. I’d be even more, I’d be sort of comfortable with we need to cover all of our responsive. That’s still a really big chunk, but that’s, you know, I have not put that in any kind of specific written proposal, but that’s kind of where I’m at. It’s this trait, and so a motion that says we’re going to zero out the risk credits but not make any other adjustments, I cannot support, and we’ll be voting no on the motion at hand. Thank you. Okay, thanks, Beth. Jeff and Andrew, I didn’t give you time to coordinate, but yeah, I think I would, nobody else is in the queue, so I would open the floor for you guys to go ahead and talk about your comments if you’d like, but also if you wanted to respond to anything specifically on Luis’s presentation or if you wanted to respond to the VISTRA LCRA motion, I’m happy for you guys to cover any and all of that now. Sure, I appreciate that. This is Jeff McDonald, Director of IMM. I presume you can hear me, Caitlin? Yes, we can. Okay, thank you. Okay, yeah, so appreciate the time. You know, we submitted a memo late yesterday. Timing on this one was, you know, tight. It would have been nice to have more time, but we submitted a memo going over, you know, several different aspects of the methodology that we have issue with, and so I’m going to cover some of those at, I guess, sort of a higher level, but I think they all merit, especially given some of the discussion that’s happened so far, they all merit maybe at least a moderate amount of discussion, and so, you know, I’ll refer you to the memo which was posted so you can see what are, you know, preferred parameter values and modeling selections are from that, but I’m going to go through a couple of aspects including, you know, somewhat of the convergence criteria headroom, including REG and RRS recovery, and then I’m going to talk about a chart comparison at the end comparing the HTML version of the IMM proposal versus what was shown in the presentation today. So, but some of these are pretty important concepts. So, on convergence, we’ve already talked extensively about a watch convergence criteria overall, and so I’m not going to, I’ll refer to, you know, what might be hours of prior discussion publicly about a watch, being a legitimate reliability criteria, and that, you know, if you look at the other RTOs, you know, some measure of operator action to avert load shed is the convergence criteria where you would consider, you know, tuning your AS procurement, but adding the REG and RRS replacement is an odd one, and I understand that ERCOT is an island, and so there’s less, less if any neighboring energy to, you know, or frequency response to lean on, so I understand that, and I’m going to get to the REG and RRS matter in just a minute, but first I wanted to talk about headroom. So, moving off of convergence, as I said, we’ve talked about the watch plenty, and we’ll get to the REG and RRS aspect of that in just a minute. On the headroom, headroom exists in every interval in the ERCOT market, and discounting it 100%, I understand the desire to want to be conservative and what have you, but discounting the headroom so that it counts as zero is, defies, it defies the reality that ERCOT operates in, and so a couple of arguments have come up regarding, you know, relying on free capacity. There isn’t a free lunch in this with respect to headroom, and so, and I’d like to take just a moment to explain why. So, the headroom varies across time, you know, from interval to interval, obviously. ERCOT actually has a very high amount of headroom generally in almost all intervals, even in some of the tight conditions that we’ve seen, winter storm fern, and then the hot week that set the new load, the new peak load, you know, we’ve had a lot of headroom. So, ignoring all of that headroom is, again, defies reality, but here’s why it matters, and here’s why there isn’t a free lunch concept applied here. So, that headroom exists. ERCOT has modeled the headroom. I believe it’s one of the stochastic variables that is in the Monte Carlo, and so it exists. It exists. There’s an empirical distribution for it, and there isn’t a reason to discount it to zero, because should the ERCOT system get into tight conditions, RTC will re-procure in the next SCED interval, and it will re-procure from resources that are available and are the most economic for the service being procured, whether that’s energy or one of the reserve services, and so you’ve got this headroom sitting out there. Some of it might be eligible for ECRS, but not regulation, but some of the ECRS that was procured already is eligible for regulation, and so RTC will move procurement from, in this hypothetical, from ECRS to regulation and go look at the headroom to procure some more ECRS so that it doesn’t go short there. So, that headroom is literally considered by RTC, and if any portion of that headroom is needed to support the AAS plan, then it will be paid the appropriate reserve price for that if it’s used for reserves. If it is instead used for energy because things are going short and it goes from being headroom to energy, it will be paid the energy price, and if any of the reserves are short, there will be a shortage component or aspects to the energy price, and it will receive that. So, there just isn’t a free ride or free lunch concept to headroom. I understand there’s risk around headroom because it does change from interval to interval, and you don’t know how much you’re going to have 50 intervals from now. You probably have a pretty good idea of what you’re going to have five intervals from now. So, I wanted to address that because the headroom is actually – and I know that ERCOT has lived its entire life without real-time co-optimization.
The real-time co-optimization is a really important feature in this entire discussion because having headroom and allowing the headroom to count allows you to rely on RTC to go procure the headroom from the headroom for whatever is necessary as things get short. So, there is no free lunch in that context. So, now I’d like to move on to the Reagan RRS. So, again, recognizing that ERCOT is an island, the Reagan RRS aspect of this is not, in my view, not supportable, and here’s why. Keep in mind we have headroom and we’ve got a real-time co-optimization, which is a new operational concept in ERCOT, and RTC will go procure whatever it needs from existing obligations or unobligated capacity like the headroom. But in addition to that, it is overly conservative to procure for a full Reagan RRS replacement without first taking into account what you have as far as eligible capacity that is offered in but wasn’t procured for Reagan RRS in the real-time stack. So, fully procuring replication or replenishment of that from lower services ignores the fact that you have an awful lot of capacity that is eligible to provide regulation or RRS and not otherwise obligated, and so then that would show up as headroom. That’s part of the headroom. It would be more prudent or more accurate, I think, to look at those stacks on a historical basis, look at the regulation stack and the RRS stack for what is, you know, and you’d have to account for a regulation offer from a resource that had provided some of that as ECRS, so you have to do the appropriate discounting, but I know in regulation you’re going to have an enormous stack of available offers, so replacing any of the regulation with lower services or reserving a replacement in the lower services for regulation probably isn’t warranted at all if you look at the stack, and I believe the same will be true. I don’t have statistics, but this is something that I would encourage ERCOT to look at. I believe the same is true for RRS given the thickness of the stack there, so I don’t think, you know, given the headroom, given the thickness of the stack in both regulation and RRS that is available but not procured, I don’t believe it’s warranted to fully reserve regulation and RRS in the lower services for replacement.
So, those are two of the main points that I wanted to make, but I also wanted to highlight a chart comparison, and so Luis noted when he was showing the curves in their presentation that they compared their preferred scenario and the IMM scenario to a common risk model or common risk element. Thank you. Thank you for finding that, and so this shows something that’s kind of interesting, and I understand it’s challenging. These simulations have a lot of different parameters. It’s hard to find something that the human eye can digest, and so it can be a way to compare them, but the way it was described, you know, sort of tells a little bit about why you’re seeing the results that you’re seeing here, and that is that when you take the AS procurements that are prescribed by the IMM methodology and you plug them into the square, which is kind of the benchmark, the most conservative set of risk assumptions, you know, of course a lower procurement is going to result in a higher frequency of violating your criteria, but the interesting thing, and so calling it a common risk perspective is, I think, accurate, but it presumes that that common risk perspective is the point of truth that you would compare anything else to, and so we don’t think that that’s true, and you can even see with the ERCOT numbers, you know, those are producing a higher level of criteria violation than what we would expect to observe in any of the recent years or even years that were slightly colder in the winter and somewhat hotter in the summer, so it’s not clear that it matches up with the empirical reality that we’re observing in terms of, you know, distribution of outcomes that come from weather and outage and forecasting randomness, but now if you wouldn’t mind scrolling down to the next chart, thank you, and so this is the chart of the impact, you know, the criteria impact from the IMM proposal, and as you can see, it’s very, very different. This is very, very different than what was presented in the chart above, so the IMM criteria, when evaluated on their own risk criteria and not evaluated against the most conservative set of risk criteria, produces less than 20 hours of WATCH, about just, you know, 2.4 hours of EEA-1, so that’s not firm load shed, and it produces zero hours of EEA-3, and so, you know, what are some of the, you know, what the risk assumptions were that went into defining the square, the uppermost point, the point, the reference point in ERCOT’s chart, and so what does that mean? Well, if you evaluate the IMM proposal against having to have an AS quantity with full RRS and reg replacement and a world where there’s zero headroom, just to take those two as an example, well then, yes, the IMM proposal would produce more criteria violations, but that’s not necessarily, that’s not the world that we live in, and that’s not the world we’ve been experiencing, so I would encourage stakeholders to view this. This chart came out of the HTML tool that ERCOT published, and so I would encourage stakeholders to view this chart as the chart that the IMM proposal produces, given that the world around it that it is functioning in has headroom and doesn’t require RRS and reg to be fully replaceable from lower services, so I view this chart as being much more accurate. It is not evaluated relative to the most conservative set of assumptions, which ERCOT has referred to as the common risk perspective.
So, I think that’s everything that I wanted to roll through, and I do note it is challenging to present these things, you know, complicated simulation results across widely varying scenarios, but the chart that ERCOT produced, everything is evaluated relative to the most conservative risk criteria, and the perspective there is that that is the truth. That is how the world will wind up, and I would say that each of these models should be evaluated based on its own risk criteria and evaluated separately, so that’s all I have to say in summary. You know, please do read the memo that we distributed if you haven’t, and I’m happy to answer questions. Okay. Thank you, Jeff. Let’s go back to Louise. Oh, Andrew, do you want to add on?
Andrew, why don’t you go ahead? Andrew?
Can you all hear me on the mic now? Yes.
Okay. Sorry about that. Andrew Armers, IMF. Yeah. So, I just wanted to add something. Jeff covered all of our content very well, but something that we didn’t include in the memo, but I had pulled yesterday. So, we do have some data on the percentage of qualified battery and NCLR capacity in any given SCET interval that is awarded either REG or RRS, and it varies. So, if we’re looking at NCLRs, something like 30 percent of NCLR capacity is carrying RRS at any given time, and with batteries, it’s something like 15 percent of batteries are carrying, you know, out of their qualified megawatts. It varies. Almost all of the battery capacity in ERCOT is qualified to provide regulation, so that one to supply is just vastly greater than the, you know, procurement target, and it’s a little tricky because with batteries you have FFR, RS, and PFR, and so those things are kind of some overlapping capacity, but the point is you have a ton of this capacity that is not usually loaded. It may be providing, in the case of batteries, it may be providing ECRS and non-spin. It can provide more RRS and regulation because the duration requirements are less. NCLRs usually can’t provide both RRS and non-spin, so the point here is that there’s all this capacity that is distinct from the stack of resources that can provide ECRS and non-spin that can nevertheless provide either RRS or REG, and so it seems to be an unsubstantiated claim that ECRS and non-spin are needed for storing regulation and RRS.
Yeah, I think your mic did cut out. I was wondering if it was me or you.
Okay, I think we lost Andrew. Let’s go to Luis while Andrew is working that out.
Okay, thank you. I wanted to kind of go through a couple of things I heard. I do have a question for Andrew, but we’ll wait until he gets back. So, I want to talk about this graphic that we have here on the screen right now. I think the one thing to consider here and why we did the additional analysis is this analysis on this screen is simply showing you that the optimization will meet the input parameters with the convergence criteria on ensuring if you will have watch EA1 or EA3, whatever the threshold is that you put as an input. So, simply showing that you change the threshold from 3,000 to 1,500, you will see that it increases the number of watch and EA because the probabilistic model is not ensuring that it’s holding true to watch. So, that was one thing here. Now, the other piece of this is by adjusting the risk that you see in the parameters and hours in risk credit that’s accounted for, each scenario now becomes apple-stored.
They are not looking at the same lens for the period.
So, this is why we built the secondary analysis of what if I held everything true to one risk, a set of risks, and compared them to each other. And that was one of my caveats in my slides was the IMM’s variables are very different and create a slightly different, show a different risk profile. So, I wanted to make sure that that was covered. And so, can we scroll up to the other chart that is the probabilities of this one? Now, what I heard on this is it’s comparing to one risk, and it is that six-hour risk. And this goes back to why ERCOT is proposing six hours. Six hours is the operational need that we have to ensure we can make the decisions that we need to if we do need to rock resources. We need to be able to make that assessment on net load forecast error and make a determination of do I need to take action. If by reducing that horizon from six, five, four, three, two, one, whatever it is to the shorter horizon, the concern there is we don’t see, we don’t have the AAS procured to cover the uncertainty that might come. If we do something lower, we may miss seeing or having the reserves available to cover what we see in real time. So, if we procured on a three-hour ahead forecast error, and in reality, that error is much larger, it may be too late to bring on additional resources that we needed to rock. We would be left with whatever is left to rock. It may be smaller units. We may need to rock them and potentially then wait for the ability to have additional resources come online on a longer timeline. And so, that is the concern. It is from an operations perspective, that’s what we’re trying to get from this is this is why we based it on that six-hour ahead risk. Now, from a risk credit perspective on this is, you know, if it’s zero, then you’re procuring everything. Now, the one thing on that is when you compare them together is, I think I’ve heard the same thing before, is what level of insurance are you trying to cover and what reliability risk is left out there? That’s what this is trying to show is what reliability benefit and cost benefit do you get from the quantities?
And so, yes, we’re not all the way at the top. So, there is a little bit of level of risk that’s being assessed here in the RCOT proposal. But again, it’s what we feel that we are comfortable in seeing historically and what is potentially available in risk credits. Now, we don’t need to scroll to it, but jumping on this now fact of reg plus RRS and what is available out there typically or what may be available. So, I think Andrew made this comment about 15 to 30 percent of qualified ESRs and NCLRs availability. The questions I have there is when and how much state of charge is there. You know, the question there is from when we look at risk credits and we look at that evening ramping period, there may be capacity, but the energy behind it may not always be there is our concern. Now, looking at events when we need regulation in RRS, if I trip a large unit or multiple large units, I start utilizing my RRS, I start utilizing my regulation, and I’m dependent on having my ECRS and non-spin help recover regulation RRS to fill that capacity that was lost. If I procure a smaller amount of AS, it may not be sufficient to cover the regulation RRS that’s being used.
So, by procuring less AS, I may not then have what I need to recover regulation in RRS. I may not have additional free available capacity, and then I’m dependent on waiting for non-offline, non-spin to come online or some short start offline resources to come online, but then it becomes a scenario of do I have something that’s actually available to come online in the short term to help solve the problem? And if I don’t, that means I have to shed load to ensure I maintain the system until something could come online. So, this is why our parameters are trying to work together to try to ensure that these scenarios don’t happen.
And again, the level of risk that we are assessing here is trying to ensure that we keep ourselves out of that. We keep ourselves out of that scenario by ensuring we have capability.
And then I think the last piece I had for this was in the NCLRs that we talked about. One thing from that perspective is in a large unit event, the 2805 event that we have, you’re utilizing your RRS and you’re utilizing your NCLRs to recover or arrest that frequency event in order to respond to that event. So, those are a couple of the points that I caught in the comments that I heard from the IMF. Okay. Thanks, Lise. I see you’re back, Andrew. We are already at about an hour and a half on this topic, so I’m hoping to wrap things up soonish, and maybe we can consider if there’s things that need to happen between the ERCOT and the IMM, between TAC and the board, or at the very least for next year’s methodology.
But Andrew, I’ll give you an opportunity to talk, but let’s try to wrap things up soonish.
I think everybody I need is in the queue. Maybe, like, folks be ready for me to call on you as well as the people in the queue. Okay, cool. Well, can you hear me now? Yes. Okay, great. Sorry about that, everybody. IT issues over here. So, it sounds like I was able to get through enough of the ESR NCLR point that I won’t go back to that. I will say I’m not surprised that the duration point has come up. Something I just think is strange about that argument is it seems to be implying that your replacement RRS reserve needs to have a longer duration than your primary RRS. So, you have RRS. You’ve decided that needs to be a 30-minute product, but then the reserves you want to replace the RRS need to be an hour or four hours. I don’t really understand why that would be the case. And then, that isn’t really applicable for the NCLR stuff where we procure significantly less than the total volume of NCLRs qualified to provide RRS around the clock. And this is such a famous issue that we’re constantly prorating the capacity of NCLRs that can provide RRS. So, it’s well understood that there’s a lot of NCLR capacity on UFRs that could be providing RRS that isn’t able to because the market size is only so big and because the volume of UFR is capped. But under conditions where we’re having an acute frequency situation, the shortage prices for REG and RRS are going to be the highest ancillary service prices. And so, SCED is going to do everything it can to replace those reserves instead of, you know, immediately. And I just don’t think we’ve seen any evidence that the way that’s going to work out is you’re going to have slow-moving thermal resources ramping up so that the fast-moving resources can go back to providing RRS. I think that’s a paradigm that’s based on a kind of legacy gen mix. Okay. Luis, did you want to respond to something Andrew just said? Yeah. The one thing that caught me there was the duration on regulation of RRS. The one thing there is it’s not simply the duration that we’re saying that needs to recover the REG plus RRS. The duration requirement is for what was lost, the reserves that were, the unit that was lost. That recovery, that duration that had been in question was ensuring that if I have that unit loss, what is there to replace to ensure I have REG plus RRS is able to fully recover the capacity that was lost, which will be the longer duration. So, that was the only thing that I wanted to clarify. Andrew’s right. The REG and RRS durations are short, but if you don’t have the capacity to replace what was lost, then you’re actively using regulation and RRS until you have something else to recover that capacity. That was my only comment. Okay. Let’s move on. Blake, is there anything we need to know from WMS discussion at this point? Then I’ll come back to you later on LCRA comments. Do you want to add anything that hasn’t been covered today? No, Caitlin. The topics are all tracking with what was discussed at WMS. I say just let it play out. Okay. Shane, what about Ross? Yeah. Your Ross discussion was pretty similar. A lot of focusing on risk credits and how you don’t like them, but they seem to be the best tool for managing the quantity limits. We took a vote at Ross, similar to what’s been proposed, or I guess even it was to maintain the risk credits at the same level that they were used in the 2026 methodology. There, that motion about a vote to endorsement failed with two-thirds against, one-third for. There was still quite a few abstentions involved in that, nine abstentions. A lot of the same discussion that’s happening here, but it’d be nice to get more color from them. Okay. What was the motion was? What at Ross, Shane? It was to endorse the 2027 AS methodology, but retain the 2026 risk credit parameters. Okay. And was RCAP supportive of that motion at Ross? You or Louise can answer that. Louise, you want to characterize y’all’s opinion on that? The answer can be, we didn’t know, and we still don’t know.
I think our sense was we had proposed the, you know, our level of reliability requirement that we believe was necessary. And with what Ross had voted on in having a lower risk credit, which would lead to a higher requirement, we’re not opposed to that in principle.
Okay, great. Shane, did you have anything else you wanted to add by getting in the queue or are we good? Yeah, I just had some of my own comments. Okay. Let me take those in order then. So, but we covered WMS and Ross, so let’s go back to Shams. Shams, if you’d like to cover your hand comments at this time, that’s fine. So, basically, let’s back up a little. So, why are we having this discussion about the AS plan and risk credits and stuff? The only reason this impacts anything is because the ASDCs, you know, the ASDCs are so messed up that if the ASDCs were perfect, it doesn’t matter. You don’t need risk credits or anything. The ASDCs determine how much is going to be procured in terms of all these reserves, and that should reflect the value of those reserves to the ERCOT market. And that should be consistent with how ERCOT operates the system. That’s our main point is that the consistency in order to send the right price signals for the market to make the proper operational and investment decisions. So, if we think that, you know, operating at loss of load, firm shed, like we did pre-URI, then, of course, you would have a different ASDC curve, whereas if we think – and we think it’s prudent after URI to have additional reserves that the additional either avoiding an EH1 or watch makes sense, and the ASDC should appropriately reflect that. So, we pointed out to last year, and this can – you can look back in history, like 10 years or something, you know, there’s a huge disconnect between ancillary service clearing prices in the day ahead versus the ORDC adders. The ORDC adders, like last year, was 100th – 1 percent, less than 1 percent of the price of the day ahead ancillary service clearing price, of the lowest ancillary service clearing price in the day ahead. So, we pointed this out. I’ve actually pointed this out for many years now. I mean, probably since the adoption of ORDC that the adder calculation is wrong, and unfortunately, the ASDCs are based on the ORDC adder calculation. So, there’s a huge disconnect there, and I’m thankful to the PUC that they’ve recognized this, and they’re saying that we can disconnect the two, that it doesn’t have to be tied to the ORDC, so the ORDC adder. So, now we can fix this issue. But the thing is, you know, the ASDCs right now tell us that there’s no value at the tail end, right? ERCOT is saying we need these many megawatts of reserves, and the ASDC is saying no, there’s no value to that. So, what are we doing? We’re sort of putting a patch in there saying that, okay, with this AS plan, we’ll bump up those pennies in the ASDCs to $15 per megawatt hour, which is hardly a bump up. If you go back to pre-RTC, the AS plan really mattered because the ASDC in the day ahead market went up by $5,000 for whatever the AS plan amount was. So, it was close to $5,000, so that was actually the ASDC in the day ahead pre-RTC, and pre-URI, it was unlimited, you know, it was like infinite, you know, prices that we were willing to pay for the ASDC plan amount. But now it goes down to pennies. So, all we’re discussing is with this, you know, this AS plan amount is how do we somewhat fix the ASDC so that it doesn’t go to zero, but it bumps it up to $15 for something that ERCOT needs, they need these reserves, you know, some amount of reserves that the market will provide. By doing risk credits, you’re just reducing that amount, which is inconsistent with their operation. So, basically, you’re messing up the price signal, even the minimal $15, I’m not talking about a $5,000 pricing, $15 maximum price signal. You’re even messing that up by saying that, okay, we really want this much, but taking these risk credits into account, we don’t want to send that signal to the market that we want that much, which means that if you still operate under conservative operations, you’ll be taking out-of-market action, and that will not be reflected in the price formation of the market, and it won’t support reliability in the short-term or long-term investments. So, really, this is all about, you know, are we getting the price signals right? And each year, going forward, this shouldn’t be an AS plan discussion. This would be an ASDC discussion each year as to how we figure out the right ASDC to reflect ERCOT operations and how much reliability we want in the system. So, the ASDC, if you fix it, given ERCOT’s operations and stuff, it would look like the ASDC curve, like the ORDC curve, but except it would have at, you know, whatever the non-spin quantity is, it wouldn’t drop off from $15 to $0. It would probably be in the hundreds of dollars, and it would keep continuing, because probabilistically, there’s just a slightly more probability, you know, the more you buy, the probability of whatever you’re accounting for, whether it’s a EA or loss of load, the probability decreases. So, the value wouldn’t drop from $15 to $0, but it would be something like hundreds of dollars going down. So, we need to fix the ASDC, and that’s all we’re saying, is that here, we’re fixing the ASDCs and just bumping up to $15, and let’s get that right. The risk credits just distorts it even further. So, let’s get rid of the risk credits. It only makes sense. Taking risk credits into account and saying that, oh, we believe in market price formation to support investment, to support, you know, the missing money problem, and then reducing what’s needed for reliability doesn’t make any sense at all. So, what we’re recommending is that you eliminate the risk credits at least until we fix the ASDCs, which is a much bigger fix that really needs to be done, because ASDCs should be determining quantities and so on and not these AS plan stuff. So, that’s what our comments sort of focus on.
Okay. Thanks, Shyam. Luis, I think you probably have a response, and Ryan, you don’t need to be in the queue. We’re just going to hear from Luis on this.
Yeah. I just, I think Shyam’s got to the point. So, a couple things is, one, ASDCs is not part of the AS methodology. I think Shyam’s got to that point as well. The other thing is, I think we agree. I think we’ve also taken this action out of RTCB is, or implementation, was the ASDCs need some adjustments. I don’t think they’ll fix everything, but we have agreed that we will go back and look at ASDCs and see how they match the level of the AS requirement that is in the plan. So, I think that effort, we can agree to. Just, it’s somewhat outside of the discussion we have today. Now, the risk credit portion is, that is what we’re proposing to utilize based on the historical analysis that we’ve done of availability. Those are my comments. Okay. Great. Thank you. Let’s go to Ned. Thanks, Caitlin, and thank you to everyone that’s just been talking, because I think a lot of the points I wanted to make have been covered. So, I’ll try to make it quick and crystallize. It in that classic dilemma where you’ve got the different blind monks all touching the elephant and describing it in different ways depending on what they’re touching. But I think, Louise, kind of what you got at is that we’re right now looking at only one part of the elephant, and it’s the methodology to determine the quantity and whether that includes the risk credits. I think there’s, I’m hearing some confusion about whether we are actually procuring reserves versus determining how much of the headroom we should be valuing, and I think that’s just a, it’s a shift in paradigm that has kind of come with real-time co-optimization, and this discussion is just showing how we’re grappling with that, and that raises all the questions about the ancillary service demand curves, which is outside the scope of this discussion, the duration requirements, which again, outside the scope of this discussion, and how to structure those things to get to the outcomes that ERCOT needs as a system operator to meet their NERC requirements and the reliability standards of the state.
So, I think we’re saying very similar things, but from just different angles.
You know, Jeff, I’d like to, maybe we can have some more discussion offline about the headroom. It sounds like maybe, you know, the way that y’all are viewing it is like there’s plenty available. To me, that seems like saying, well, we’re at a potluck, and everyone’s brought a lot of dishes, so there’s plenty to go around, and we don’t need to plan for, you know, what our meal plan will be, but, you know, there will be more guests coming, and we don’t know what they’ll bring. They may be less reliable guests or contributors to the potluck, and the party eventually ends, and we’re still going to need to plan our meals out, and that’s the approach that we’re coming at this from. So, the other piece that I wanted to highlight is the RUC issue, and appreciate some of the clarification you provided, Louise. I had the same understanding as Shams. I thought the ASDCs were doing the work there, and if we need to work together as, you know, ERCOT and stakeholders to find ways to not RUC to meet that full ancillary service plan, I’m all here for it. I think we’re RUCing too much right now, and the market prices should be sending the signals to get you the outcomes that you want, and that’s probably more of an ASDC issue, and I don’t think that’s necessarily going to change much in terms of the value that we’re looking at today, because to get there, you’ve got to undo the AORDC piece, and that’s kicking off now, but probably not going to impact us on a time frame that will really come to bear on the 2027 plan. So, appreciate all the discussion. I think I’m hearing most folks have kind of, you know, picked their corners, and just to be efficient with time, and I’ve used enough lunch analogies. I’d go ahead and call the question, just to get the vote out of the way, and see where we land, and see if we can eat.
Okay. This is up to you. If you’re making the motion, you’re making the motion. Everybody’s sort of got to present comments except for LCRA, so if you want to give Blake a couple minutes, but if you want to make the motion, make the motion. Oh, I think the motion is out there and seconded. Blake, I don’t want to cut you off, but I was going to call the question. No, no, no, the motion to call the question. I mean, yeah. Gotcha. Blake, happy to let you go. I think we’re starting to talk in circles.
Thanks, Ned. I’ll just give an overview of our comments, so appreciate the extra time. Blake Holt, LCRA. We filed some comments yesterday up on the screen, posted to the meeting page. Would encourage you all to review, but where we’re coming at this from is we’re pointing to the 2026 AS methodology discrepancy, relating it to the behavior we’ve witnessed in the world around us over the last month and applying that to how we’re thinking about the vote today. And so, to start at July’s TAC meeting, we raised questions on whether the discrepancy influenced all of the capacity-related RUCs this year and if it would drive additional RUC activity without a planned correction. And what we’ve seen over the last month is that RUC activity related to capacity concerns has increased threefold when comparing August to July. And we’ve even seen a brand new RUC reason of capacity AS being used immediately after the discovery of the discrepancy. And so, that leads us to believe that ERCOT’s RUC procedure has changed since they’ve become aware of the discrepancy and in our mind kind of proves the point we were trying to make last month. And willing to be corrected, but ultimately we encourage ERCOT to give us more clarity into that new capacity AS RUC reason and what problem it is seeking to classify. And what it looks like to us is if ERCOT is not able to get the AS plan they need through market mechanisms, they will use out-of-market commitments to ensure their desired level of capacity. Which takes me into how we’re thinking about the 2027 AS methodology. We were talking about free lunches earlier, but based on what we are seeing, there is no such thing as free reliability. And if what I said earlier is true, it appears to me that any vote that would seek to make ERCOT’s desired methodology more efficient would be a vote in favor of more out-of-market commitments. And that’s not something that LCRA will support and will be a no on any motion that goes down that path. Obviously supportive of the motion that’s currently up for a vote, but would also be supportive of retaining the 2026 risk credit parameters similar to the ROS motion that they considered. And so in our view, a decision to make the plan more efficient cannot be made in isolation with ERCOT’s current conservative posture. Both of these things need to change at once, or out-of-market commitments will become the norm. And I think thinking about the future, we are not opposed to making the plan more efficient and actually think that recalibrated ASDCs, a more efficient plan, and a step away from conservative operations may actually be the answer to give the market stronger energy price signals. But we really think that decision needs to be pushed down by the commission. And there’s already a proper time to make or to have that conversation, which is during the market redesign discussions that will take place after the reliability standard assessment. So I appreciate the extra time to lay these thoughts out. And yes, I’m ready to take a vote. Thanks. Thank you, Blake. Appreciate you covering those comments. We have a couple folks in the queue still, so we’ll go over to Nitika.
Hey, good afternoon, everyone. Wanted to check, can you hear me? We can hear you, Nitika. Perfect. So I put myself in the queue to address the first portion of Blake’s comments around the RUCs and the reasons that they are seen in RUCs that are being made today. So the timing, unfortunately, is a coincidence, but everything that you’re seeing today, Blake, and stakeholders, is related to some of the analysis that ERCOT has been sharing with WMWG. Today, when ERCOT issues a RUC instruction and adds AS capacity to it, what the operators are trying to communicate back out is, our RUC studies are seeing a deficiency in being able to serve the forecasted load and procure all the planned AS. So whatever is posted as of today, at those levels, we are unable to achieve with the information that has been put into the RUC study tool. And as a result, there is a need to commit so that we can serve the load and procure the posted level of AS plans. These commitments are not being made because of the good cause exception and the error in the quantities that we talked about. We are not able to meet what is posted currently. And some of the reason why we are in that situation is what’s related to the analysis you’re seeing come out at WMWG. So I wanted to make sure it was very clear that this is not because ERCOT’s wanting to procure more AS than what is posted. We cannot meet what is posted. I’ll pause right there.
Okay.
I just want to say something. Thank you so much for making that clear. I really appreciate it. So there is not a two AS plan, one informal ERCOT will do regardless what PUC approves, and then one posted. Thank you very much.
We have Shane, poor Shane’s been trying to speak for a long time. So let’s do Shane, then Seth, then I know PAC has a request for PUC staff to weigh in on the issue. But maybe Heritage, if you don’t mind, let me take the stakeholder comments first, and then you can weigh in on anything you want, including the risk credit issue, and hopefully we’ll give you the last word. Sound good? So let’s go to Shane.
Thanks, Caitlin. I’ll try to be more succinct in here. I’ll skip all the scanty language I was going to try and work in. The risk credits, I mean, honestly, it’s just not a market. It’s relying on stuff to be there even no matter what happens. And the way we’re applying risk credits is also very inefficient. I think we’re looking at it, we’re peanut buttering kind of some extra risk on there. We’re not necessarily analyzing just the times that we would be potentially needing it. And that’s also kind of scaling out the impact here.
If you were to, say, do some analysis on how much extra capacity was online when we were deploying these services, and like in these methods where the AS plan actually matters, I think it’s likely that we would see much lower availability of excess capacity.
I think there was a good point made by Ned earlier where if you’re increasing the use of risk credits and you’re decreasing the AS plan in real time, you’re also going to then decrease the likelihood of having that risk credit, that accredited capacity, because you’re decreasing the signal for them to show up in real time. And so, it’s kind of like something that’s going to be cyclical. And the more you count on, the less you’re going to get over time. That’s the gist of all my points there. But it would be better if we’re trying to apply some sort of risk credits, it would be better to look at things more seasonally, more hourly, for like different capacity during ramps, during night, during like more hourly specific and a much deeper analysis. And then this is kind of just like peanut butter that’s going on basically just to reduce the overall capacity as I see it. I think nobody likes risk credits, but it is what’s being used to control the size of the plan here.
And Luis, you can correct me on anything I misspoke on there as to the risk credits. Yeah, I just want to hop in. I just wanted to, and I’ll try not to go too far back on this, but we want to ensure that we are evaluating risk credits at all times, not just during deployments. You know, we need to see what sort of coverage we typically have. The second piece is the optimization itself is already actively utilizing periods that are short on risk credits. That is part of the optimization and it starts becoming part of the tail in the analysis when trying to meet convergence. So, I just wanted to try to clarify that the process in the optimization when assessing net risk is already utilizing those conditions as inputs. Now, the second piece you had about changing the way risk credits are designed or looked at, I can agree. I think this is something we’ve already identified for potential changes for next year, for 2028. You know, and particularly looking today, we just have a night and a daytime period. The questions we have are, you know, things that we’ve talked about with the markets and then feedback that we’ve been given is consideration in changing hours to evening ramp hours, morning ramp hours, changing how all of that is assessed and what sort of capability. But that’s a redesign of risk credit. So, I can agree that it’s on our radar to review, but completely redesigning risk credits at this moment, but we wouldn’t pick that up until next year. That’s it.
Okay. I think Caitlin’s trying to get her audio sorted out here. I think that takes us to Lauren’s request that, I’m sorry, I miss Seth. Seth, we haven’t gone to you yet, correct? Yeah. So, just real quick, I don’t want to belabor points, but I agree with Blake. I’m really approaching this from the perspective of what will be the Westbrock. I think that we have a big problem today with that. It’s not healthy for the market in the long run. I don’t see where we’re in a sustainable position. So, that’s where VTOL sits on this issue. Thank you. Okay. Got it. Thank you, Seth. Okay. Now, I think this takes us to Lauren’s request asking whether commission staff could weigh in on the risk credit issue. Harika, are you in a position to take that? Yeah, I can. I mean, to be honest, we are definitely not supportive of the current motion. Like, ERCOT’s telling us they are okay improving increasing risk credit, but they’re saying, no, no, no, we’re really not supportive of that. If ERCOT wants to, you know, move in that direction a little bit, that would be great. Thank you. Caitlin, is your audio sorted?
I think so. Okay. We can hear you now.
Great. Are we through the queue? I think we already hit Shane. I think that’s a relic. I believe so. Yeah. Thanks. Me too. Okay. Shane, are you good? Okay. Clear. So, going back to the original motion from this draft, Corey, can we pull that up on the screen?
And I think we made those as desktop edits. That’s what I want. That’s what I want the group to confirm. Yeah, I want Ned to confirm which. So, what you’re seeing on screen right now is ERCOT’s proposal. And I think initially Ned had said just drop all this that says risk credit, but I want to make sure that’s still the case. I think that will do it, Corey. So, if we get rid of that, then we don’t need this lead-in about using those input parameters.
Those aren’t going in anymore. And then, I’m assuming we also then need to update this picture that talks about risk credits that now will no longer be relevant. Put a big red X on it. So, here’s a version of it that doesn’t have that same details above about the risks themselves and convergence criteria and all that, but just now without that risk credit box.
And so, all of these others are just, you know, stylistic cleanups.
So, if everyone, well, if I’ve made Ned happy, that’s a huge, that’s a huge win. But then, this would be.
I feel like Ned’s happy a lot of the time. I try to have a positive disposition.
Okay. So, then with those red lines, then the motion is, it’s the 2026 AS methodology presented by ERCOT as revised by TAC, wherein those revisions that TAC did achieves the remove the risk credits.
Okay. Luis, do you have a comment? Yes.
I think I’m fine. I had a concern about scratching all of that, where, you know, we’ve done a lot of analysis outside of what these parameters were. But I think from a proposed perspective, I think it means that there’s just no risk credit accounting. So, I think I’m okay with it. Okay.
Okay. Take it away, Corey.
All right. Then on this motion to endorse the AS methodology with the desktop edits we just presented, we will start up with the consumers with Garrett. Actually. Sir. I’m sorry. This is Matt Arthur with ERCOT Legal. Before y’all take a vote, can I just ask that, I think part of the language being struck there is at the bottom using these input parameters, the model will run, the optimization. I think, I just want to clarify with Luis, does that, there are other parameters beyond the risk credits that feed into the model, right? The risk, the six hour ahead risk. Do we need to say that, do we need to include that, that phrasing? We scroll up a little bit. And I think that one line in the middle there that says the probabilistic model will consume the risk and utilize these inputs. I think we still need it to say the probabilistic model will consume the risk, even if, because that’s referring to those risks in the non-struck paragraph above. Right. That’s a good point, Matt. So, I agree with Matt’s direction here. Is the unstricken, the top paragraph covers the risk, which is the six hour ahead forecast error and outages. Okay.
I think Ned and Blake, I think we understand what we’re voting on conceptually.
And if it ends up being what ERCOT, for them to the board, I think we’re fine with ERCOT making the red lines they need to in the interim between tech and the board, right? Yeah, I think the intention is clear. And if we need to add some delegation of authority to ERCOT to make any additional cleanups, I think that would be a fair thing. I don’t think there’s any ambiguity about what we’re discussing. Yeah, that’s right. I also support that too. Matt and Luis are very capable of implementing what we’re asking. So, thanks.
So, based on what Matt just said, I took the language out here and just baked it into this sentence to retain it. Okay.
And again, this is all tax language, so that if ERCOT comes up with something separate that we need to propose in our version of what goes to the board, we certainly will. But for now, yes, we’ve retained a portion of this struck language and moved it down here.
Okay. Okay, back to the ballot. And we will begin with the consumers with Garrett. No, sir. Thanks, sir. Mike?
No, thanks. Thanks, sir. Beth? No. Thank you. Will? No. Thanks, Court. Thank you. Nick Fehrenbach?
Abstain. Okay, gotcha. And then Beth for Chris? No. Okay, thank you. On to the co-ops. Blake? Yes. Thank you. Kyle? Yes. Thank you. Jodan for Mike? Yes, please. Thank you, Court. Thanks, sir. Lucas for John? Yes. Thank you. On to the independent generators. Ned? Yes, and thank you, Court. Thanks, sir. Brian?
I got your yes in chat, Brian. Thank you. Bob Helton?
I can take you in chat, Bob, if you’re wrestling with the audio.
I’ll loop back to Bob. How about Caitlin? Yes. Thank you. On to our IPMs. Jeremy?
Abstain. Thank you. Seth?
No. Okay, thanks, Seth. And Bob, I’ve got your yes in chat. Thanks, sir. Back to the IPMs. Shane for Reshmi? Yes, sir. Thank you. Thanks, sir. Ian? Yes. Thank you, Court. Thank you. On to our IREPS. Jay?
Jay, you still with us?
I’ll come back. How about Chris? Abstain. I got you, Chris. Thank you.
Jennifer? No for me and abstain for Bill. Okay, gotcha. No abstention. Thank you much.
On to our IOUs. Martha? No, thank you, Court. Thank you. Keith?
No. Okay, gotcha, Keith. And then Jay, I’ve got your abstention in chat. Thanks, sir.
Ebby? I can take you in chat, Ebby.
I’ll come back. How about Aaron?
Got your abstention in chat, Aaron. Thank you.
On to our MUNIs. Diana for David.
Diana?
Oh, got your no in chat, Diana. Thank you. Alicia? No. Oops. Thank you. Jose? No. Thank you. And Curtis? No. Thank you. Okay, and last call for Ebby.
Oh, got your no in chat, Ebby. Thank you.
Motion fails. 42% in favor, 58% opposed with six abstentions.
Okay. Okay, Corey. So I believe we can take another motion if we want to.
But Caitlyn, Caitlyn, can you hear me? Yes. Okay, sorry. I would try to get into the chat, but that’s not working either. I don’t have much of anything working, so I haven’t been able to do anything today. I can make another motion if you would like. Let me just check. Okay, go ahead. Okay. No, no, no, make the motion. All I was going to say is it sounded like there was some talk with Beth and everything around and, you know, some of the comments were made by others that some of the overlap issue is still out there, so I would make the motion that we, that Ned made with the exception that we would not procure to backfill the responsive reserve, not responsive regulation. It would be just the responsive reserves. I think that’s what Beth was talking about earlier. And Beth can correct me if I’m wrong. That was one aspect that I talked about. I also think three hours ahead is a preferred time frame as well. Yeah. Or four. I could go to four. Six just seems like an eternity in our, given the resources that we have. Okay. Well, I’ll try this and see what happens with making that one change. So the motion would be the ASS methodology as presented.
Can you go back? It would be Ned’s motion of elimination of the risk factors, but on the backfill for the procurement, it would only be backfill for RRS and not for responsive. Okay. I mean, for not responsive, for regulation. Okay. Do we need to go through and make those? Yeah. Where within this document does that achieve that stated goal? So we’ve got the Ned red lines on screen. So what additional red lines would y’all like to see to take? The motion itself would look exactly the same, but it’ll just be a different set of TAC revisions. Oh, because it’s just as revised by TAC. Correct. So what’s on screen right now is what Ned proposed that failed, but it sounded like Bob wanted to keep all these red lines, but then take it a step further. So if that step further sways y’all to 66% in favor, yeah, let’s do it. Let’s go for it. But we need to go through the document and make those red lines. Okay. But back to the question I was going to remind people of, we do not need to get the 66% in favor. We could take this to the board because we’re not required to recommend. Right, Corey, we could take this to the board as we took one vote and it failed or we took no votes. We don’t need to do anything unless we want to. Is that right? Yes. You guys have free will. You don’t have to do any of this if you don’t want to. Well, you know. Yes, it’s not required. It’s just in terms of the discussion at the board, in so much as you guys think a second or third potentially successful vote, or even a second or third failed votes, if that answers anyone’s questions at the board of, did you think about X, Y, Z, to be able to point to those to say, yep, we sure did. But you’re right. There’s no black line for what that is. It’s y’all’s discretion. Okay, Bob, do you, Bob, so that’s a motion.
Correct? Well, I’m not sure where we would make those changes off the top of my head. We’d have to go back through that. So if you want to just leave it as it is and we’ll talk about it at the board, you can talk about that. Our feelings, let our feelings be known at the board. I guess that it’s not as good of an answer, but I’m not sure that it’ll get 66% anyway, so. Okay. Well, if you’d like to make the motion, make the motion. I’m just trying to determine whether we need to. Well, let’s try and see what happens. So you know where that, yeah, if Corey can find that, we can make that and just see what happens. I think, yeah, I think it’s on page six, that bottom paragraph.
Okay. Can I ask for a second though? We don’t have a second on this motion. So if we don’t get a second, we’re not making red lines. So, so are there a second on Bob’s? So it’s a real motion, Bob, correct?
And is there a second on Bob’s motion? And that’ll second. Okay, great. Okay. So let’s make the red lines. Okay. So here’s the line Ned was talking about of reserves dropping below the sum of procured reg up and RRS. So just, we don’t need this. Right. That, that, that, yeah, that’s it. That made it easy. Do we need the sum anymore since we’re not adding reg up to RRS? Yeah, that’s it. Okay.
Let me take, we had a comment come in from, from QC staff as well from ERCOT staff. Let me take those while we’re trying to sort this. Harita. Yeah. Thank you. I was just going to understand this motion. What is it doing? And I want ERCOT to speak to it because I don’t understand you are changing the contingency criteria. I thought that was really non-negotiable for ERCOT. Instead, maybe they are open to 2,500 and 3,000. So I just want to, Nitika, to answer that. What is this motion? I didn’t want to understand. And what does ERCOT think about this motion? Okay.
Is Beth perhaps the best person to start with on what the motion is? Well, we can’t, I mean, we can’t, I mean, that’s already been discussed. I mean, Beth talked about IMM also talked about, you know, the need, why do we have that backfill of either one of them? Actually, I believe it’s what the IMM said. I don’t want to put words in her mouth. So I was just trying to make a baby step into the process to try to see if we can get something we can agree on. Okay. So we’re, we’re changing the backfill aspect with the goal of, in the name of compromise.
And so I know you’re in the queue, Matt, but should we have Luis comment on ERCOT’s position on the substance there? This is Luis, I’m here.
Thanks Luis. So one is actually, let me make sure I understood the motion is everything here is staying the same as the last motion. So we’re still using six hours ahead. We’re using zero credit. And now this is saying only cover RRS. Correct. Okay. One, our stance in our proposed methodology is we want to ensure that we have a hundred percent of reg plus RRS. I’ll remind everybody of that. And then the second piece, this scenario is not part of our 900 scenarios. So it is a little bit hard to quantify and to be able to go and look at this. We did portions of reg up plus RRS as options for this, but nothing specifically for only covering RRS. So knowing the specific outcome in this is hard to gauge.
Well, in simple terms, and this, it’s not detailed and it’s not an accurate reflection, but in simple terms, reg up is in the, you know, it’s 500 megawatts or so. And so we wouldn’t have to cover that. And in so much of the discussion that other types of changes that we’ve made, things like the 3,000 megawatts down to 2,500 megawatts, it didn’t matter because reg plus responsive exceeded that. And we were, you know, ERCOT was bound by that. Now, if that’s a hill that ERCOT’s going to die on, you know, you’ve made your position known and I happen to disagree with it, but I’m not operating the system. So that’s, you know, I’m just a loud mouth in the voice in the crowd. We could have this vote and see what happens. And ERCOT at the board could say, this is unacceptable to us. And the board could, you know, say, okay, so the motion is the same. It’s Ned’s motion, except we’re only covering RRS and not reg up. Corey, do you have what you need?
Brian, what is your question? No food analogies, Brian.
Go ahead.
Brian? Okay. Well, Brian works on his mic, which has happened to many of us today. Corey, do you have what you need on the language? Yes, ma’am. Oh, my gosh. Amazing. Okay. Great job, Corey. Corey, you catch the gold star. Nobody else does. All right, Brian, how’s the mic doing?
How does the OR watch in the middle of the paragraphs work?
Recurred RRS or the watch threshold. Oh, I think that’s Louie’s question.
Yeah. So, if you come to this math here, right, so you’re covering reg plus RRS, the maximum of reg plus RRS or this watch. So, in the proposed, you are saying reg is not accounted for. You still want 100% of RRS. So, the maximum of RRS or watch is what will set the threshold here.
Okay. Bob and Ned, does that still, does that impact how you feel about your motion in any way?
Because it’s still the max of that or the watch. Well, I believe that’s the way that we’re going to do it whenever they were doing both, right? Yep. So, yeah, this is the only change.
Yes, but if depending on what you think is the max more, it makes less of an impact, I think is Brian’s point. Brian, correct? Because if you still have the other version that could be the max there, then changing the first option potentially makes less of an impact.
I believe that’s the point Brian’s trying to make.
Brian and I are both stars. Yeah. Yeah, I’m trying to think through that.
Let’s take it out and just make it the RRS.
Let’s see what happens. Are you okay with that, Ned, as a seconder?
I disagree with Brian’s comment in the chat. So much of the discussion, the tradeoffs between things like 3,000 megawatts or 2,500 megawatts have not made much difference because the sum of responsive plus reg has been a bigger number. It’s always going to be greater than the 3,000. Most of the time, that’s going to be greater than the 3,000. I mean, that’s what I’ve been hearing. That’s the question, right? Which is going to be greater most of the time. Yeah, yeah. Let’s just leave it. Yeah. And so, by taking the reg off, it brings that quantity back down more comparable with that 3,000 watch, and then, therefore, you might see some impact of taking 3,000 megawatts down to 2,500 megawatts. You know, it’s small, but it feels like it’s this sum that ERCOT is – The sum is always going to be greater than the 3,000. It feels like that’s had the biggest impact, and ERCOT has expressed the strongest interest in maintaining, frankly. Let’s leave it as the higher-up. Yeah, let’s leave it. That’s a good comment, Beth. Thank you. Let’s leave it. Let’s run this motion, Corey, and then, you know, let’s eat, even if people don’t want to revisit this after lunch.
As revised by TAC version 2 or something, or we just know it’s this version, the motion is exactly the same, right?
Correct. The motion is exactly the same. It’s just the set of revisions is what would go to the board if this one passes, and then, otherwise, you just have two failed motions to talk about at the board. That’s great. And if I could go out on a limb on behalf of all of the consumers, could I request that we, as a segment, we vote last on this vote, or you not start with us?
I don’t care. Corey, does it matter? It doesn’t matter when we hit tally.
We’ve certainly had folks say, come back to me later, because folks like to see how the vote’s going to shake out before they vote, but, again, at some point, it becomes, let’s vote on the voting order so that everyone will host a draft and decide who gets to vote first so they get to watch, but if you’re cool with it, Caitlin, I’ll just jump down to co-ops and start there.
Blake, are you cool with it? I think the generators can vote first, right? I feel like we’re cool with it. So, if you want to start with the generators so that co-ops and consumers. You’re in charge, Caitlin. You’re okay to vote first. Let’s start with the generators. All right. All right. We’ll start with Ned. And then you can go back to the co-ops. We’ll do. All right. We’ll go independent generators, then co-ops, then the rest of the ballot, then we’ll go back to consumers. Sorry, Ned. That’s all right. For the record, I think there’s maybe some value to randomizing the voting order just for fun. Keep it interesting. Okay. Let’s vote. Let’s just vote. Yes. Thank you, Corey. Thank you, Ned. Brian? I can take you in chat, Brian.
Got you. Got your yes in chat, Brian. Thank you. Bob Helton? Yes, sir. Thanks, sir. Caitlin?
Yes. Thank you. Up to the co-ops. Blake?
No. Thanks, sir. Kyle? Yes. Thank you. Jodan for Mike? Abstain. Okay. Got your abstention. Thanks, sir. Lucas for John?
Abstain. Okay. Thanks, sir.
Head to our IPMs. Jeremy? Abstain.
Thank you. Seth? Abstain.
Okay. Thanks, sir. Shane for Reshmi? Yes, sir. Thank you. Thanks, sir. Ian? Abstain. Thank you. Thanks, sir. On to our IREPS. Jay?
Got your abstention in chat, Jay. Thank you. Chris?
Abstain. Thanks, sir. Jennifer? No for me. Abstain for Bill. Got you. No and abstain. Thank you. On to the IOUs. Martha?
No. Thank you. Keith? No. Thank you. Abby?
I’ll come back to Abby. How about Aaron?
Abstain, Aaron. Got you in chat. Thank you. On to the MUNIs. Diana for David?
No. Thank you. And Abby, I’ve got your no in chat. Thank you. Back to our MUNIs. Alicia? No. Thank you. Jose? No. Thank you. And Curtis? No. Thank you. And now we will head up to the consumers. Garrett?
No, sir. Thank you. Mike? No, thanks. Thank you. Beth?
Sorry, I was caucusing. That’s a no. All right. Will? No, thank you. Thank you. Nick?
No. Got you, Nick. Thank you. And then Beth for Chris? Is also a no. Okay. Thank you.
This motion fails. 29% in favor, 71% opposed with nine abstentions. Okay. I’m going to simply take a break. We have been talking about this for a long time. It is important. So I will not close conversation if people want to continue to talk about this. And if we need a few minutes for people to explore other motions, if they wanted other motions, you know, we can do that now. But I think we need to take a break in the next five minutes. Again, we have been requested by ERCOT to have an endorsement. I think the board likes getting our opinions and our endorsement as well. We’re not required to go to them with a vote or any vote on this. We have two no vote. So we can explain what happened. You know, it was kind of several ways. So I think, I think, you know, it’s a broader conversation, not just from this meeting, though, kind of talking about how we do this methodology. You know, it’s only been two years that we’ve needed to do it this early for commission approval by the end of the year. And it was, of course, very technical and so hard sometimes to ask for additional scenarios on a compressed timeline. But I think we need to be thinking about a better way to really vet these things and get to your compromises if that’s what’s desired next year. And I think that means, you know, earlier feedback from stakeholders and from the IMM. But for today, you know, again, it is a really important topic. So I’m not going to cut it off if people would like to continue to make motions and have the discussion, but we aren’t required to. And I am going to insist on a break. But if there’s that being said, if there’s anything somebody knows that they will want to continue to discuss or have a motion on, let’s kind of get that on the table now in case there’s red lines or discussion required.
I don’t see anybody in the queue.
I guess the only thing I might suggest is that if ERCOT’s recommendation is going to be their recommendation, you know, if we want to take an up or down vote on that just to reflect to the board where we are on that proposal as presented by ERCOT, that could be helpful because we haven’t done that.
Yeah, Ian, that’s totally valid. Let’s take Blake’s comment though. And then let’s come back up to that. How much time are you giving us? For lunch? Well, let’s take, let’s let Blake talk and then let’s lunch. I don’t know. We can take a vote on how long we should have for lunch. Half an hour?
Until I guess at this point until two, right? So almost half an hour. But go ahead, Blake. Blake Hall, LCRA, Caitlin. I won’t let Ian shut you down. Go ahead. I’m okay to hold my comment. Maybe I can make a special request. Can I have the first comment after we get back from lunch?
Yeah, of course. All right. Thank you. Okay. Okay. Two o’clock. Okay. What’s everybody’s?
All right. See you at two.
PART TWO
I love that. Okay, Martha’s going to 2nd.
Corey, I don’t think you need anything for me, right?
Nope. I should be good unless unless this motion fails because they’re not enough. People have come back from lunch yet, but there’s only one way to find out the consumers can go last. It’ll be fine. Okay, you want to maintain that order for this vote or should we reach? No, I do not. Yeah, let’s let’s keep. Let’s do. Let’s do orders as designed by whoever designed them. Yeah, that’s that’s one consumer. I’m happy to go first, so on this vote. Yeah, all right. Then on the I think it’s alphabetical, correct? Right? Let’s go to avoid any appearance of favoritism. It was just originally set up alphabetically, but. So on the motion to endorse the AS methodology as presented by ERCOT, we will start up with consumers with Garrett. No, sir. OK, thanks Sir Mike.
No, thank you Beth. No, thank you will.
No, thank you Nick. I can come back to you, Nick or take you in chat if you’re wrestling with the Mike. How about Beth for Chris? That’s also a no. OK, gotcha. Thank you. On to the co-ops Blake.
Yes, thank you Kyle.
I’m not seeing Kyle with us anymore, actually.
Jodan for Mike.
Come back for Jodan Lucas for John, yes, thank you. I got your yes in chat. Jodan, thank you. Ontario Independent Generators, Ned.
Come back to me, Cory. Sure, Brian.
Come back to Brian or I can take you in chat Brian. How about Bob Helton?
Oh man, I’m saying. A painful abstention, gotcha. How about Caitlin?
Yes, thank you. Onto our IPNs, Jeremy.
I’m saying thank you. Thank you, Seth.
How about Shane from for resume?
I’ll stay. OK, this is Seth. I’ll stay. Thank you. OK, thanks, Seth. Got your extension in. I’ll, I’ll stick with the crew and abstain. All right. Thanks, sir. Onto the IREPS, Jay. I got your extension, Jay. Thank you, Chris. Abstain. Thank you, Jennifer. No, for me, yes, for Bill Barnes. Fair enough.
And then onto the IOUs, Martha. Yes, thanks, Cory. Thank you, Keith. Yes, thank you, Abby.
How about Aaron?
Got your yes in chat, Aaron. Thank you. Onto the munis, Diana for David. Abstain. OK, thank you. Alicia. Abstain. Thank you. Jose.
Yes. Thank you. And Curtis.
Yes. OK, thank you. All right, going back up for last calls. Next up is Nick Ferenbach up with the consumers.
Kyle.
Ned, you ready?
I’m going to say this through gritted teeth. I’m going to pull a Brian Sam’s with an I hate this, but yes.
Begrudging, yes, we’ll take it, Brian. Speaking of Brian Sam’s, are you with us?
All right. No, Brian. Oh, got your yes in chat, Brian. Thank you.
Hey, Cory.
Sir. Yeah, this is Bob. Change me to a begrudging. Yes. I hate abstaining. So go ahead and do that. You haven’t tallied yet. OK.
And then you have got Ebby’s said to chat. And I think that’s everybody. Unless Kyle Minix rejoined.
I’m not saying.
Okay. Motion carries. 70% for 30% against with eight abstentions.
Okay.
Cory. That was something. Go ahead. Go ahead. First. Okay. On the, on the Excel sheet. At the top that it say motion fails. Or passes.
To say motion fails.
Too many abstentions. Yeah, too many abstentions. You don’t have, there’s 30 members and you only have 14 eyes. It has to be. Oh, yeah. Fair enough. Sorry. Okay. I’m so focused on the percentage. Yes, you’re correct. I’m so sorry. The motion failed.
The percentages are correct, but yes. Motion fails because less than half of tack voted in favor of it. Sorry for that.
Okay.
It was weird.
Anybody wants this one? Caitlin have fun with this one at the board.
Yeah.
Yeah. We don’t want to take any more votes on this.
Explain it to the board. Well, I think. I don’t know. I have ways of delegating.
Let’s go to her.
Preferences always to have some stakeholder. On census and some support, right? It’s not like versus. The stakeholders or so. Is there any other version? Emotion. Okay. Can live it. Because I really, we need to be on board and majority of stakeholders to be on board. Then, you know, the board discussion will be much easier. I’m just asking. Between now and the board or maybe at this meeting, is there any other version?
Maybe comfortable with getting customers on board and some other people on board. But not. Going as far as I am. Proposal. And I’m sorry if I’m putting you on the spot.
That’s good. Another class. Right. So thank you for the prompt. And right now. After having looked at all the data. To us. The alternative. At least that we will be comfortable with. Is everything that we proposed. So, yes. But with the threshold of 2,500. So it’s results were what Louisa shared on pretty much the second last night. So it is still a six hour ahead risk with the same credits that we proposed one in 10. 2,500 would be the threshold.
If that is something the stakeholders can consider. What, so what was that? The threshold would be. 2,500. So it would be. 2,500. So EA one. And not to watch instead of 3000. Right.
So it would be. We would be starting with our cops recommendation.
But redlining the threshold from the watch. At 3000 to the EA one at 2,500. And the. I am I’m from pozole was what the.
1500. On threshold. They are at. Load shed. 1500. To answer back to Brian. Same risk credit as what they already have. Yeah. Everything. It’s the same in our cops proposal, except the 3000. Goes to the 2,500. Okay. That would be the only thing or cut as well. To support.
Okay. Let me. Make, make a comment and then let me take, take the queue. I think that’s a. A very good question. You know, This one is a little bit. It’s a little bit. Different than the revision request. You know, it’s, it’s not a dating item, but it needs to clear. Pack we. The endorsement of course is wanted and I. You know, I really appreciate that that commission and commission staff of the board.
Appreciate our feedback, but I think. I think. I think. You know, it’s a little bit different in a revision request. And what, what we.
Endorses is not a dating item. So I think we can think about it that way as well. You know, is ultimately going to make the proposal that. They feel comfortable with because they are. Operating the grid, but I think it’s good to get that feedback from Nitica. Let me go through the queue and see if any of these are. Our motions.
Here’s in the queue. Jeff, did you want to respond to. To this proposal or to Nitica or to me or to anybody else? Let’s go to Jasper. I appreciate that. So. I was just curious. I know it’s the reg plus RRS. That drives the procurement. Largely. So I’m curious if there’s a sense. I think previously, I don’t know if we re-estimated this. Proportion, but previously it was like. 63% or 65% of the time that the procurement was driven by the right. Plus RRS requirement. And so dropping.
The criteria from a watch and I, I, I’m glad to see ERCOT willing to move that direction, but dropping that from a watch to EA one. I think.
I’m not sure what that’s going to do to procurement given the role that Reagan RRS as in this, but I’m curious. If Nitica has a sense of that, or if that’s easily teased out of the. The simulation results that are available. Thank you.
Okay. Do you have a response to that? Yeah, I think the, the information Jeff Fairpoint. The information is actually in Louisa’s slides. And from a quantity perspective, there is a small reduction. In quantities. Not a drastic reduction in quantities, but something that Louise has also pointed out is this. The threshold of course plays, you know, we were talking about how do demand curves play a role. And incentivizing behavior. Also plays a role in some of the other own procedures, which use risk-based assessments. So there will be some broader impact of moving from 3000 to 2,500. We’ve not quantified all of them. I can’t directly speak to it, but at least strictly from a quantity perspective, there is a small impact only of this change.
But it does move us in a direction where we are not protecting for a watch, but we are protecting towards a EEA one. Now pause it.
Okay.
Just as you want to respond, or can we move on to the queue? I thank you for another opportunity. I think you need to get for the response. So appreciate that. That’s sort of what I expected. And like I said, I am, I’m glad to see ERCOT willing to move off of the watch. So getting back to something that was commented on earlier. So if we’re moving, if we’re moving the AS procurement away from the watch will, will ERCOT operations be operating to the EEA one, or will they still be operating to a watch? I think this is something Sean’s brought up is that you, you, you need to have parity. Between how we’re setting. Criteria for procurement versus the criteria that, that operations is, is managing to, so. And that’ll do it for my questions. Thank you.
May I respond. question.
I think we’ve been trying to indicate this as Louise was mentioning also. We are operating to the operating posture is operating towards meeting the criteria we have established. So if the criteria were to be set to a from an was moved to a watch from a watch to a EEA one, that is the criteria we would be operating to. And as and if you’ve been following along, we’ve mentioned even our posture when it comes to evaluating forward looking risk. We look to use our tools to give us guidance on when an action from our court is needed. So to the extent the so to the extent we can make changes to the system where market can respond and bring this the commitments system needs for the operating outlook of a day, those type of changes should be vetted and brought through. That helps cut ERCOT’s actions out. So to me, my answer, simple answer back to you is we are looking to set up the quantities to match the operating posture that ERCOT is required to maintain. And if the posture was changed, that is the posture we will operate to.
Okay. Thank you guys for that. Let’s go. Let’s go to the queue. Let’s go to Diana. Hey, Caitlin, can you hear me? Yes. Okay. Just want to, we just want to say we appreciate everybody’s effort to try to find a compromise here and work through this immediate vote. I’m just looking beyond that. What are options that we would have for the group if there are considerations for the board and then, you know, long-term, you know, just reevaluating the process for the AS on a yearly basis. I think there was a mention earlier of getting the feedback from the stakeholders, but also getting the information from ERCOT back timely as well would be helpful. But I guess for today’s purposes, what could be some options to help us move forward if we can’t do something on the fly today, what are some options for folks that maybe they would have for the board in September? Thank you. Well, so I think, I think we’ve taken three endorsements, you know, as we’ve said a couple of times, we’re not required to get anything with a yes vote to the board on this. It’s different than a revision request. I would, you know, I think Harika asked a good question, which is, is there anything else ERCOT would accept? And if a stakeholder wants to make a motion of that on that, I think, you know, that’s worth exploring. But I think after that, at a certain point, we should probably call it a day on answering service methodology. We’ve been at this for three hours and I brought it up a little bit earlier, but I was sort of like hangry, but I think you’re absolutely right. I think next year we need to have these discussions earlier. And, you know, I, I don’t want to put blame on, especially ERCOT. I think they did a lot of work, but I think we had a lower level of participation maybe at the working groups. And I think having a forum like this, you know, a workshop or something where we can, people can commit to giving us feedback, have the, have the UC staff participate, have the IMM participate maybe would be better going forward.
Does that sort of help Diana? That helps Caitlin. Thank you. Okay. I see Roy. I mean, Roy is sort of talking about the ballot. We can pull the old ballot up. I don’t believe, I think the ballot even said 50% was 15 and we had 14 yeses, but we’re, we’re happy to verify that for you, Roy. But let’s, let’s keep going in the queue. Let’s go to Ned. So Caitlin, I think you’re probably on the right track of having some changes in process. I do, I would ask that in doing so we tee up questions that are maybe in aligned with figuring out what principles we want to reflect in the ancillary service plan. Because I think we’re going back to what we’ve talked about multiple times now. I think we’re all looking at this in slightly different ways. And I think getting alignment on what we’re solving for will help to break some of this log jam. So that’s just an observation. I do want to double click on the conversation Jeff and Nitika had. You know, if we move forward with something today, will ERCOT, can we, can we tee up changes to ERCOT’s RUC, RUCing to meet the ancillary service plan, the full ancillary service plan? I think that will, that will address, I think, a lot of concerns. Maybe not all of them, but I think that will address a good number of them. Is that a literal question for ERCOT? That is a literal question that we can discuss.
Nitika?
It may be helpful to understand what you mean, Ned, more clearly. Our procedures on when those actions are taken or when a RUC action is taken around AS capacity very clearly outlines what, the level of shortfall that the control room is considering when taking those actions. And like I mentioned today, perhaps, and I mean, WMWG has been having this discussion. Some of those RUCs are likely related to the inputs RUC is seeing through COPS. And ERCOT’s been doing a lot of outreach, a lot of education on that end. So, and we have seen impacts and you have quite a few of the market analysis folks around who can probably confirm my statements. But we have seen impacts of that outreach. So my hope is with that change, what you should see is as the load levels start changing, as the temperature improves, the level of RUCs you were seeing should start reflecting. The improvements that RUC is seeing and of course the system would also be evolving because we’ll be transitioning out from summer. So I, sorry, that’s a long-winded way of saying I’m really not sure what exactly you were angling towards, but at least hopefully you understand where to go look for our own procedure or what, when we take these actions. And at least what sort of a change we are seeing from market participant behavior, which may make some help, which may trend this towards a relief. So I’ll pause there. Okay. Thank you, Nitika. And, you know, I think I don’t, I don’t know exactly what the right answer is, because I can understand the concerns with RUCing to meet the full ancillary service plan when we have the ancillary service domain curves that are supposed to, you know, manage that trade-off.
Now, while I am vehemently opposed to the risk credits concept, if that is something that moves forward, I know Bistro would really like to see some parity in the RUC decisions that are made. So if you’re going to discount for headroom, for example, on batteries, state of charge in real-time, but not make that same adjustment in the ancillary service plan, we would like to see some parity there so that the real-time operations and the long-term planning horizon are at least, you know, more commensurate.
I think maybe I’ll leave, what we are doing in the ES methodology is using a, is setting up the requirements based off of a probabilistic assessment of how we’ve seen the system operate. Applying that same credit or applying that same sort of, going into RUC, RUC is really trying to ensure there is adequate supply to help us cover the forecasted load and reserve so that if there was any uncertainty, we can rely on those reserves. If here as well, we start, you know, discounting for input data that RUC is being given, there is a risk that RUC will short change itself going into real time with not having sufficient supply for being able to do the type of things we want it to do. So that is, I mean, I understand that the level of RUC is a concern, but the idea of relying on something we don’t know we can fully trust being there is maybe another extreme. There is potentially an alternative way of doing, of running this RUC assessment and ERCOT has been in the back end talking about different, how, what different ways can we set up these RUC analysis so we are not as dependent on the energy inputs. Energy picture, getting the energy picture right is utmost important in RUC in our mind at least. So we are continuously working on it, Ned, and as we have more ideas, we will absolutely bring those back to the stakeholders and share what they are. But I’ll caution you on, hey, just blindly apply HEDRON in the assessment. That seems to be a very extreme direction to go in and from a reliability perspective, I’m not very comfortable. I’ll pause. Yeah, I appreciate that. And I think we, you know, we think you should be applying the same long-term, longer-term planning for your ancillary services needs that you apply in real time. So one way or the other, they’ve got to come together. And if it’s not acceptable to reduce the use of RUC to meet those reserves in real time, then we, you know, we need to set the plan at a level that will get you the reserves that you need, and we need to price it appropriately so the market delivers it. So I know that’s probably not a construct, it’s not a terribly constructive way to, you know, put a pin in this, but, you know, we’ve had three failed votes, and I don’t see a lot of room for consensus. And, you know, the market design we have puts a lot of constraints on us. So, you know, the problem is that the reserves you have aren’t really the reserves that you want or would have ideally, and we need a better way to reflect that.
Yeah, appreciate the dialogue and I appreciate the patience. I know these last two years have been, we’ve made lots of changes, and I know the stakeholders have been very supportive in helping ERCOT move through this very constrained timeline. So I do want to echo out this is complicated, and we are very appreciative that the stakeholders are giving us so much time even today to help think through this 2027 methodology. Not everything is sorted, Ned, but I’ll also offer this up. We have been making continuous improvements, we hear you, and we will have another chance in a year to come back again. So anything that we can’t cover because where we are, we will take those into account as we start thinking of next year. So this is a continuous process. We have made several improvements to this tool. We’ve come out from a statistical approach, which was layering risk into a probabilistic approach. We are making improvements. So this process will continue. And to the extent we can make improvements in our RUC tools, we are committed to doing so. Our bottom line is ensuring that the energy picture is correctly presented to RUC so it can tell us when the system may be short-sighted or may not have the commitment it needs to fulfill the plan, to serve the load and fulfill the uncertainty we see on the system. That’s the underlying principle that we are trying to build our tools towards.
Thank you, Nidhika. I appreciate it. I look forward to looking at discussing this again over the next year. Yeah, way sooner than a year from now because we’re not doing this again next year.
Shams, are you still with me here, Shams? Yes. Yeah, this process was seriously flawed. Just at this last moment, we’re finding out that ERCOT RUCs, even though we worked on the ASDCs and stuff, so that they wouldn’t take out of, you know, the RUC engine is supposed to tell you based on the ASDCs whether to procure that much ancillary service or not, ERCOT should not be RUCing to make up its AS plan. So that’s a revolution and that’s something we’re just finding out today at TAC. The other is that we’re actually talking about changing ERCOT operations. I didn’t even think that was on the table, you know, with this AS plan. I thought this was just the AS methodology. If that’s on the table, then we should have had the discussion way ahead. You know, we will be open to, you know, all sorts of like going to EEA, whatever, as long as the ASDCs were made compatible. So with the IMM proposal and stuff, we saw that they want to go down to, you know, like the 1500 load shed, but the operation would still remain conservative. That made no sense to us. But if ERCOT was to go down to, you know, different operations where they’re actually avoiding load shed, which we don’t support because after URI, we think more, you need more of a cushion. But still, if they were to do that, then we would have a totally different discussion. So it’s just very disappointing that this last moment we’re finding out these very important aspects of Dancery Service Plan.
Okay. Andrew, would you like to make your comments on the mic in a productive and concise way? No, I don’t think I need to make them on the mic. I think everything I’ve posted in the chat is sufficient. I think that’s right too. Okay. Okay.
So NIDICA proposed that or responded that ERCOT would accept also their recommendation but changing the 3,000 watch criteria to 2,500 EA1. I don’t believe there are any takers on making that motion.
What’s going on? Okay. Seems like not. We’ve had a lot of discussion, including what at least means. Is there anything else anybody else wants to talk about right now? There’s three motions that failed. That’s okay, right? We have a lot of information to tell the board. I will probably phone some friends to help me tell the board that information. Maybe Beth and Ned or something like that. And then I think we all acknowledge that the process this year, but especially today was not great. And so I think we need to find some ways to be working together and getting real feedback earlier next year. All right, go ahead, Sean.
Yeah, for future, you know, the board discussion and so on. I realize ERCOT is willing to go to a minimum reliability, you know, needs based on 2,500. But is ERCOT opposed to like doing away with the risk credits and stuff, which actually all increase reliability? I don’t see why ERCOT should be opposed to that because all of those proposals increase reliability. I can understand the minimum reliability, but why should ERCOT be opposed to something that results in increased reliability?
Or is ERCOT just neutral to those?
Vidika, do you want to answer that? I think that’s the last sort of question we’ll take like that. The question is if the risk credit is altered from 60% to zero. Yes. What is ERCOT’s opinion? So it’s not what we proposed. You’re right. It improves reliability. In principle, we are not opposed. Our position is probably better qualified as neutral if that is what the stakeholders want. Now, that was my question.
Thanks. I’ll leave it there. Okay. Okay. I think that’s okay. Okay. We had a lot of discussion. I think I summarized it okay. We just have the three failed votes. We’ll go to the board with that information.
Probably be reaching out to, I think those were good things I think probably Beth and Ned to help me out. And I think we need to think about how to do this better next year. But I appreciate, I know ERCOT put a lot of work into this. And there’s a lot of discussion today. So I appreciate all of that. Okay. Let’s move on.
Sorry. Can we take the combo ballot?
Oh, you were ready.
If you guys want to. I’ll make the motion if I’m allowed to or somebody else can make the motion. So you already disposed to picker 144. And so all you’ve got left are the NPRs from the PRS report and the two items from RMS and then the minutes, but we can pull any of these for standalone ballots. If anybody needs them. Anybody need to pull any of these?
I think I made the motion and then give Blake the second. The font looks so different when it’s tiny. All right. On the motion to approve the combo ballots, we’ll go to in classic order and start up with the consumers with Garrett. Yes, sir. Thank you, sir. Mike. Yes. Thanks, Corey. Thank you, Beth. Yes. Thank you. Will. Yes. Thank you. Thank you, Nick.
Yeah. Thank you. Thank you. And Beth for Chris. Yes. Thank you. Onto the co-ops, Blake. Yes. Thank you, Kyle. Yes. Thank you, Corey. Thank you. Joe Dan for Mike. Yes, please. Thank you, sir. Lucas for John. Yes. Thank you. Thank you. Onto the independent generators, Ned.
Yes. Thank you, Corey. Thanks, sir. Brian.
I can take you in chat to Brian. How about Bob Helton? Yes, sir. Thanks, sir. Caitlin. Yes. Thank you. Onto our IPMs, Jeremy. Yes. Thank you. Thank you, Seth. Yes. Thank you. Shane for Rashmi. Yes, sir. Thanks, sir. Ian. Yes. Thank you, Corey. Thank you. Onto the IREPS, Jay. Yes. Thank you, Corey. Thanks, sir. Chris. Yes. Thank you. See Brian’s emphatic yes in chat. Thank you, sir. Back to the IREPS, Jennifer. Yes. And yes, for Bill. Thank you. And thank you. Onto the IOUs, Martha. Yes. Thank you, Corey. Thank you, Keith.
Yes. Yes. Thanks, sir. Abby. And I got your yes in chat. Thank you, Abby. Erin. Okay, Erin, got your yes in chat. Thank you. Onto the MUNIs, Diana for David. Yes. Thank you, Alicia. Yes. Thank you, Jose. Yes, sir. Thanks, sir. And Curtis.
Yes. Thank you. This motion passes unanimously. Nobody opposed. Nobody abstentions. That’s abstaining.
Thank you. Thanks, Corey. Okay. I believe we are on to large load issue.
It’s the last contentious item for today. We’re going to run through the Dutch Zero update, go to Whitmire Large Load Working Group Report, and then we’ll end this section on the update on the workshops for comprehensive transmission planning in Dutch One. All right. Is this Jeff or Christina? Hey, Caitlin, I’ll be leading off and then Christina will come after me. Great. Thanks, Jeff. Yep. So I think as most people are aware, the governor sent a letter to the PUC in Irquotte on August 3rd.
Probably could have a coming to the principal’s office analogy, but I’ll hold that. So based on that letter and the directive in the letter, on that same day, August 3rd, we issued a market notice, essentially informing the market that we were pausing the batch zero study process and that we were delaying the final classification of all large loads. If you remember in the batch zero process, we were intending to make that classification of whether loads that had applied were either base load, study load, or excluded. We also paused approval to energize for new data centers and crypto facilities that are 75 megawatts or larger. We then followed up on August 10th with a filing with the commission for some good cause exceptions and I’ll explain those here in a minute. And then also, we had some additional activities that we plan to address the directive from the governor’s letter. So we’ll go to the next slide and a few more details. And this is essentially the same basic presentation that Christina presented at the commission last week. So I’m not going to go into a lot of the details. It moved those details into the appendix, but to the extent that stakeholders have questions, tech members have questions, we’re happy to answer any of those. So the good cause exceptions, essentially there were three good cause exception requests. One was to delay that batch zero classification. So in the PICR 145, we were to make that base study or excluded classification by August 7th. And we will now be delaying that indefinitely right now. Although I’ll talk a little bit more about perhaps a provisional classification that we’ll come out with next week. But the final classification, we’re going to wait until after we’ve done the verification and audit that the governor directed us to do. We also needed a good cause exception regarding the quarterly stability assessment.
So if one of the changes, if you remember that we made as part of PICR 145 was going forward for a load to qualify to be in the QSA, then it needed to have essentially a cheap baseload status. And so with the verification and audit process delaying that baseload qualification for these loads until likely December now, then that is going to impact both August QSA and then November QSA. And so we needed to get a good cause exception to include loads that would otherwise be qualified to be in the QSA. We needed to basically include them even though they don’t have that baseload status yet. So that was one of the second good cause exception. The third had to do with the dynamic data review and the cure period, just extending that. So those were the three good cause exceptions. And then on the process side, as I mentioned, we have paused the approval to energize for any new large load data centers and crypto facilities. This does not impact non-data center crypto facilities that are going to be requesting approval to energize, but we’ve delayed that or paused that approval to energize until after the verification and audit for those facilities. And then the last thing on the process side is, if you recall on July 23rd, I think it was, we issued a market notice stating that entities that wish to ask for a good cause exception, that they could, some of the batch zero requirements, that they could make that request. And we, essentially that moving forward with that good cause exception, we’ve essentially put that on the back burner while we are processing kind of these other changes related to the governor’s request. So haven’t completely stopped that, but it’s on the back burner, so to speak. So with that, I’m going to pause and I’m going to turn it over to Christina. And Christina, if there’s anything you want to add to anything I’ve said on this slide, then feel free to do that. But I think Christina is going to take over the next couple of slides. Thanks, Jeff. Sorry I was late there. I don’t think I have anything more to add on the delay in the classification deadline. Like we said at the PUC open meeting, we are hoping to still have those class, have provisional or conditional classifications out by August 31st, which is Monday. And that will start the dispute resolution period and reconciliation period that’s built into the PGR for loads that are reclassified from studied to base. I mean, from base to studied, the opposite way. And then I do think on the, I think Jeff covered it well, the good cause exception related to eligibility criteria for PGR 145. Yeah, that, like you said, that’ll be on the back burner, but we may have some questions that we asked during the, during the verification process that would, would help us resolve some of those. So next slide.
So these are the kind of two upcoming activities that are related to the governor’s August 3rd, August 3rd directive in his letter. The first is the batch zero eligibility verification. And this is where we’re going to we’ll have, I will send out RFIs, requests for information and requests for production of documents that will help us ensure that the large loads that are included in batch zero have met the requirements, the eligibility requirements for their path into batch zero. And that’s one completely separate stream that is separate from the community impact review, which will be a separate RFI that will go, go out to the TSPs with loads that are 25 megawatts or more that have yet to energize and our data center or crypto facilities. Next slide. All right. So next steps and status, as I said, on the last slide, that community impact review, I will include those 25 megawatts or higher that are data centers or crypto facilities. And so we sent out a request for information to the distribution service providers that is basically asking for an update from the information they provided back in April as part of the 2026 RTP compliance plan. And that one is just related to medium loads. We already have the large loads from the batch zero intake process. And yes, we presented the good cause exceptions and the activities to the PUC on August 20th and the PUC granted the good cause exceptions.
And finally, yeah, it’s just what we said before about the provisional classifications, hopefully by still targeting August 31st. And I think that’s our last slide. All the other slides are part of the appendix where the ones presented at the PUC open meeting. So I think from here, we’re happy to take your questions. I don’t know that we will have answers to all of them or much new information to provide, but it’s helpful to hear questions. And we will be providing regular updates to the PUC throughout this process. We’re planning to be as transparent as we can be planning to file the RFI questions in the PUC dockets. So those will be publicly available and we’ll continue the conversations there. So thank you.
Okay. We do have a queue. Let’s start with Bob Whitmire. Hey, Christina. So if I understand you correctly, we’re still telling people by August 31st, if they made it into batch zero is base load or studied load. We’re not going any further than that. Is that correct? So I’ll say this is, this is a provisional classification. So it’s subject to the verification process. Absolutely. No problem there. And it, yeah, it will be base load and their path. And that’s because that’s how we need to set up the verification process. We need to know the criteria we’re using for that load. And so we’ll say, you know, that they’re base load E, base load F, base load G, whichever their path in as base load is, and then studied load is just the one path. So it will provide that, but it will also be clear about what’s still outstanding or what’s still, they’re still subject to. So it could be that good cause exception related to eligibility criteria. It could be the dynamic model that cure period is the, is the same day. And then I think we’re reviewing models after that to confirm, you know, whether they were able to cure their deficiencies. And then there was the good cause exception related to dynamic models that some of, some of the ILEs weren’t notified until after August 7th. So they had the 24 day cure period following their email, notifying them of a deficiency. So not, I can’t say that, you know, there will be multiple ways in which those provisional classifications are truly provisional. So with respect to the good cause exception ones, and I don’t remember the exact number. I think it was like 17 that ERCOT thought cleared the hurdles. Will those, will those people get notification that they were included in that good cause exception? Would that come on the 31st? When would they find out whether they got their good cause exception or not? So I don’t, I don’t think we plan to tell anybody definitively that they, that we will advance that good cause exception to the PUC and it will be the PUC that makes the determination. It’s a matter of whether ERCOT’s carrying that forward to the PUC. But it will, that’s one of the, I was trying to say is that, you know, provisional classification, we will note that it is subject to that eligibility good cause exception. So they would see that. And we may continue to ask questions during the verification process to confirm, you know, potentially some of the facts that are laid out in those good cause exceptions that we’re not denying, planning to deny out right. Okay. Thank you. Okay. Next up in the queue is Bharath.
Can you hear me? Yep. We can hear you. Awesome. So three quick questions on August 31st, the classification, will that be sent to the TSPs I presume, right? Number one. Right. It will be sent. I think the plan right now is to send it to the TSP or DSP that submitted the load for batch zero. So in so it wasn’t the TSP in every case. In some cases it was the DSP. Yeah. Okay. Second question is, is August 31st the day the RFI will also be sent to the TSPs and the DSPs? I think that is to be determined. That is to be determined, but you will file with the POC on the same day. I don’t know that the filing will be the same day either. I think we’re trying to move that along as fast as we can. And I think Chad mentioned this at the open meeting that we are working on an intake tool that will hopefully make it easier for everyone to provide this information to ERCOT. So that’s another kind of timing piece that’s involved here.
So you’ll probably send out a market notice, Christina, when this RFI is sent. I’m just trying to understand when will this be sent out typically next week? Yeah, I think we can take that back and talk about that. Okay. I guess the last question is about the dynamic model good cause exception. So the ILLEs have 24 days from the time they received this initial email from ERCOT about the questions that they need to address. Is that accurate? Right. So if an ILLE received notice before August 7th of the deficiencies, their deadline is Monday, August 31st. Anyone who is notified after that, that first email telling them what the deficiencies are, it’s 24 days starting the day after that. So we’re trying to capture the same amount of time that those that had from August 7th to August 31st had. Understood. Okay. Thank you. All right. Next up is Beth.
Hey there. I just want to go back to the good cause exemption and if I don’t understand what good cause exemption to the inclusion of certain loads, can you help me understand what that category of load is?
The, what are you talking about with the provisional classifications? Well, no, no. So there were three good cause exemptions granted. The second one had to do with the inclusion of certain loads in the quarterly stability analysis before final classification. So I assume based on the preliminary classification, you’re going to go ahead and forward some stuff through, you know, actually study some stuff in the quarterly stability analysis. I just, I don’t understand how all that fits together and was looking for some more clarity. Yeah. So Beth, so to going forward to qualify to be in a QSA study, then the load has to be baseload. It has to be qualified to, and I’m sorry, I can’t think of the word, but basically has to be designated as baseload. Okay. It has to have been, it has to have received its quote official classification and you won’t have that. You’ll have this provisional classification and on that basis, you’ll move some loads forward into that process. Is that? Yes, exactly. Got it. Thank you. Next is Ned.
I was going to make a joke about how many risk credits are taken up in this, but I think that being poor taste. So hold off on that. Christian, I was wondering, and I think Barath may have asked this, but I want to make sure I was clear on it. When y’all are sending the RFIs to the large loads, I get it that the medium loads are going to the DSPs, but for the large loads, are those going to go to the TSP or are those going to go to the ILE contact that you have on the LIF forms or both? It will go through. I mean, we’re still developing that intake tool, but I can say the RFI will be directed to the utility or the provider that submitted the load for inclusion in batch zero. And that’s just based on the PGR language that requires us to go through the TSP for that or DSP for that information. Okay. So the verification audit questions will go through the interconnecting utility.
Would it be possible for y’all to also send them to the ILE’s contact? I think we’re having to look at that in the tool that we’re building. Okay. That just kind of goes back to our discussion of PGR 144 this morning and having straight lines of communication seems like it’s pretty popular with the crowd. I think this one we’re also dealing with the language that’s in the PGR itself. Maybe another good cause exception. The other question I was going to have is will y’all be putting out some updated, maybe at the board, some more information about how the, or before then, about how the provisional classifications shake out, kind of an update to that 205 number that was put out in July? I don’t have an answer for that, do you, Jeff?
Yeah. I think we’re still thinking about that, Ned. So I apologize to give this answer again, but that’s TBD. Okay. Fair enough. Just wanted to ask. Thank you. Sandy Borkar.
Hey, thanks, Martha. Sandy Borkar, EP. I think you and Christina answered this question at the PUCD meeting. Wanted to confirm that on slide three, process update four, the energization pause is only for large loads, that is 75 megawatts and higher, and medium loads are under the TSP purview. So two part question. First, is that correct? And second is, is there any coordination going on with the TSP to pause that as well?
Okay. Unfortunately, I’m having audio issues. So your question cut out midway through, but from what I heard, that sounded correct with the 75 megawatt or greater loads that are data centers or crypto. And then for the medium loads, that is process is still with the TDSPs. Yeah. And just to maybe add a little bit to that, so that just for clarification, that does not mean that a large load can energize below 75 megawatts.
They still need to ask for that approval to energize, even if they’re not going to be at 75 megawatts yet. And for those, again, we’re pausing approval to energize for all of those data centers and crypto facilities at this point. Thanks, Jeff. And the pause will be till December 10th, at least.
Yeah, I think that’s, yeah, I think that’s right. But maybe Christina, yeah, if you, yeah, you feel free to add or correct me on that. I’m sorry. I missed it. There’s something wrong with my audio. My computer keeps freezing at really inconvenient times here. Right. I think it was, it’s what we said at the PEC to do the verification process.
Got it. So the verification process will complete at least now by December 10th. And so likely the pause will stay until then. Thank you for that.
Okay.
That’s definitely tall. I think I may have got a little bit confused with Bob’s question. So I just want to restate it and ask for clarification. That provisional classification you’re going to give for batch zero eligibility, you know, the upper down on it. Does that, I think you mentioned you’d give that provisional, you know, you know, determination on August 31st. Does that apply to all loads that are seeking batch zero eligibility?
Yes. Yeah. All that were submitted for inclusion in batch zero. Right, Jeff? Yes. Okay. Thank you.
And Hey, actually one follow on what we see transparency on the load amounts that are given that provisional determination after the determination is made on a 31st. Yeah, he says, yeah, the short answer is yes, we will be, you know, try to be as transparent as we can on that. And I can’t guarantee that that will be on August 31st or in what forum that’ll be in. But yeah, we understand the desire for stakeholders to know what the numbers are. Okay. Thank you, Jeff. All done.
That’s no more last minute questions. Okay. Let’s go to Shane. Oh, where’d we drop you Brian? I was supposed to be after me. It looks like here in one of those lists. Okay. Is my mic finally working? We can’t hear you Brian. We can hear you.
All right. So I have one kind of, or maybe one’s a comment on the process and I was going to ask Seth’s follow-up question basically. I want to reiterate kind of the impact of, you know, this lower level confirmation that we’ve been getting related to batch. I mean, the, all the stuff related to figure 115, we were starting to get, I feel like it’s been a long process of pulling out better and better information. And I wouldn’t know if I got for being able to work with the stakeholders on that, but we also seem to have lost a lot of that with the batch process. It’s something that’s really important that is we’re missing right now is kind of, is that kind of energization timeline. So all the batch related information right now is based on their final energization levels. And we definitely no clue what sort of things are expected in 27, 28, 29, 30. So if that level of information could be provided, you know, the same way it was under the previous larger genetic connection process, that would, that would do a lot towards market competence and these numbers and what’s what we all should be planning for.
And then I have a question. So the question on the process is, so it was different levels of information that’s going to be required if you are a studied load or a base load, you know, that’s what the whole point of this initial designation.
And at some point did the study loads then also need to provide that information, assuming they continue on. So this whole thing goes through, now you’re no longer a study load. Are they going to have to meet this higher level of, this higher standard in that 60 day window before they can accept those megawatts? You know, what know they’re supposed to be going from an intermediate agreement to an interconnection agreement. Is that something that happens before the QSA? You get into the QSA, you need to true up and make sure you’re, you know, done all your additional checks and all that. Where does that fit in?
So, you know, we’ll do, we’ll get to the interconnection study, we’ll get the results of the interconnection study. We will be communicated to the ILOEs, you know, the megawatts that they are allocated. And then from there, the PIGGR really points back to the PUC rule in 58-481, the interconnection standards in 25-194. And that’s, I think you, you hit it. It’s the interconnection agreement that is referenced at least in the PFA proposal for adoption that came out last week. So it will be the requirements that a load will have to meet will be in that, but will be reflected in those standards. And that, you know, within the timeframe that’s set forth in the proposal for adoption, which I think right now is 60 days. And so they’ll need to meet that commitment window and then they’ll be picked up into the refinement study. If ILO doesn’t execute that agreement, then they would be dropped from the batch zero process and not included in refinement.
Yeah. And I understand that for the, you know, security requirements, the kayak, providing a kayak and all that stuff. I was unsure when they need to provide all of the, you know, the stuff that’s on slide 13 of this presentation. So like the study loads just need to do site control evidence, affiliate and financial security, but these not yet enterprising to do, you know, general contractors, substation contractors, long lead time equipment, all that verification is that right? Yeah. Yeah. I mean, I think the requirements that a load will have to meet to become baseload going forward or move into refinement, those will be in the rule itself. And I, what I’ve heard the commission say, and what I believe I read in the PFA is that, you know, there were going to be these criteria that were specific for batch zero criteria that are used going forward or requirements going forward. So I know site control is in the PFA, obviously the financial security. I’m not sure that how many of the other requirements that are here are actually picked up into the PFA going forward. So some of these may just be for batch zero baseloads. They may not be requirements that a study load has to meet going forward, but that will all be set forth in the commission’s PFA in the final rule. Specifically, what will go into effect to those loads that will be based on whatever’s in 58481. Right. So this, yeah, entry criteria to be baseload for batch zero, not necessarily going forward criteria.
Okay. Any good, Shane?
Yes, ma’am. Thank you. Brian, I know this is where you’re supposed to be. I hope so. I hope you can hear me now too. Yeah, what’d you do? How’d you fix it? I just left and came back, you know, classic IT. My question is about the July 10th cutoff. I’m not really clear on why there’s not a good cause exception to allow for just those studies to be completed. It seemed like, you know, the clock ran out on a lot of folks at midnight and I’m curious about that and also curious about ERCOT’s timeline to reject any good cause exception requests related to that. I haven’t seen or maybe you said, but I don’t know the date for when you’re going to send those out.
Yeah, I guess I’ll start with the last, your second question first. I expect that that will be part of the communication on August 31st for those that are, we will continue to potentially advance and potentially ask questions about during the verification process and those that we are not going to advance. On the ERCOT side. So that should be, hopefully that will be clear after and part of the communications on August 31st.
As far as reopening the study window on July 10th, you know, I think what Pager 145 was doing was creating a transitional process.
I lost you.
So as you were, and into this batch and move, move through that and we needed that. Lost me? Am I still lost? You’re still, you’re back. I’m sorry. Okay. Sorry. Or thank you. I do not know. But I don’t know where I cut off. It’s been a struggle today. Yeah. Jeff, do you want to go? Maybe I don’t want to cut out again. I don’t know where I stopped either. Yeah. No. Yeah. I think where Christina was going is, you know, for batch zero, we needed a cutoff. We, you know, at some point you have to end the old process and you have to move on with the new process. And we picked and stakeholders and board and commission agreed with July 10th being that date as the cutoff. And so we have, you know, that team that was doing those reviews, they had to move on to other activities related to batch zero, which is what they are doing now. And so that, you know, that’s what we picked and that’s what we are moving forward with. So, yeah, I don’t know that there’s much more to say than that. Are you going to be intervening in these good cause exceptions in 59142 that, or just kind of let the commission decide?
I think that it would be, I think the way it’s envisioned right now is that ERCOT would be the one filing the good cause exception for those that it advances and is asking the commission for ERCOT not to have to apply the requirement, you know, if it’s a deadline for financial security, but it is to that particular ILOE.
Helpful. Thank you.
Chris Hendricks. Thanks. Yeah. For the community impact items, is ERCOT going to be issuing those with the market notice or in one of the filings of the what’s in the RFI?
My audio is cutting out again.
Yes, I think the questions that are in the community impact RFI will be questions that are questions that we file with the PUC. Okay. Thank you so much.
Okay. Bob Pelton. Okay. Have you got me? Is audio working?
Yes. Did you also walk away and come back like Brian? No, I had to switch to my phone.
One question. It’s actually on the, you know, the community impact RFI process. A couple of questions. The first one is, and you may have covered this, but it’s been kind of hard to follow today. When you get the RFI, you know, here at the end of this month, have you decided on how many days you’re going to have to respond to get those back to you? That’s the first question. No, that is unfortunately still to be determined. Okay. And the other piece to that is, okay, say we’ve got, I’ll just throw out a number of 10 days. We respond. You’re going to put out a report to the commission in December, but in between that timeframe, I’m assuming there’s going to be, I mean, if you have questions on the answers you got, or you need backup data, you’re going to be issuing additional RFIs to those individuals. But are you going to let us know whenever you’re, you’ve got everything you need on an individual basis so that we’re not sitting there until December thinking, okay, when’s the next RFI or question coming? Are you going to, are you talking about that process also so that we’ll know internally, okay, we’re done. We’re, we’re good with this piece. Now we know that we’re not going to get another RFI question and we can relax.
Okay. I think I caught most of that. We hadn’t.
Yeah, you dropped that type of kind of communication back that you’ve answered it. Oh man, I need to walk away and come back. Yeah, I, we have not talked about, about that kind of process with notifying. Okay. I’m just just ask you to consider that so that we’re, you know, entities aren’t just sitting out there wondering when the next RFI is coming or if they’re going to have another RFI, you could say, okay, we’ve got everything you need, you know, just to let them know so that they got to say, okay, we’re know we’re done with that. We don’t have to worry about it. We can move on to other things. I would just suggest you consider that. Thank you. Thank you, Bob. And last in queue is Bharath. Yeah. Can you hear me? Yep. Okay. Yeah. Two quick things. Yeah. Plus one to what Bob said. I think I appreciate if you all can look into that. The second one is the 31st conditional provisional list. Does that take into account the securities posted as well? Studies plus the securities validated by the TSPs?
I mean, it’s I mean, as far as how we are classifying loads, I mean, we are considering we’ve gone through and kind of done that completeness check. Do we have, you know, confirmation from the TSP through the load information form and security is posted. Okay. As far as whether it was actually posted by the deadline, that will be part of the verification process. Okay. But you are taking the TSP statistician into account that they even find that the security was posted on time. Right. And then that’s what we will verify in the verification piece. Yeah. Okay. Thank you. Okay. We’re at the end of the queue. Jeff, Christina, thank you so much for this update. Appreciate you pointing out the next steps and kind of showing the channels that folks need to stay tuned to. If y’all don’t have anything else, we’ll move on to the next item on the agenda, which is a large load working group report. Bob Whitmire, are you ready? I am if my mic is working. Loud and clear. All right. Cool. All right. I will try to make up a little bit of time, but no promises. Next slide, please. So we’re gonna talk about NERC update, netted networks, VRT standard at ERCOT is kind of set, and what’s coming up next in September. Next slide, please. So we had a, well, we didn’t. PJM had a large load trip off. That, of course, has NERC’s attention. NERC has a large load working group also. Their standards are a little bit different from ours at this point. Right now they are looking at anything 50 megawatts or greater, and anything connected at 100 kV or greater. I expect regardless of what happens in ERCOT, that’s going to say 69 kV or greater. And we’ll have to see what happens with the 50 versus 75 megawatts we have today. But NERC is on the fast track. They’re trying to get all this stuff in by December of 2026 for a proposed rule. So just bringing up everybody to speed on that. Next slide, please. Okay. So we, back in 2024, ERCOT had a concept called a netted network. It would improve ERCOT’s visibility to what we consider puns. It would also potentially allow WSL treatment for behind-the-meter batteries that are providing wholesale services.
I do not believe anybody thinks you’re going to get retail services from a battery behind the meter and not have to pay for it. But there was an awful lot of support for this concept moving forward. As you may remember, voltage ride-through basically requires a battery behind the meter. We are working through that, and I’m going to touch on that again in just a minute. But there is a lot of interest in dusting off the netted network and seeing if there is a way to do that for batch one or batch two, probably more realistically batch two. But let’s go on to the next slide, please. So, as I mentioned earlier, PJM lost 3,800 megawatts of large load as it transferred to backup generation. You may remember we talked about this as part of the voltage ride-through. That’s why ERCOT has requirements that the load must come back within two seconds because of that transfer, and ERCOT has seen this. We wanted to make sure it didn’t happen. But the main point here is that the ERCOT voltage ride-through requirements are being looked at not only by PJM, but I believe SPP adopted an earlier version of the ERCOT ride-through requirements. But we have a problem. ERCOT has kind of set the standard, at least momentarily, on voltage ride-through, but there’s no current test or testing facilities to prove compliance.
ERCOT has seen models that say these loads will ride through, but ERCOT is somewhat uncomfortable anyway in disclosing who can meet those requirements. That leaves the large loads themselves and the developers in a bit of a pickle because they want to bring ERCOT verifiable solutions when they talk to vendors. You know, every vendor naturally has a solution, but they really need to see something that is proven. And if ERCOT can’t disclose that, it’s somewhat problematic. Next slide. So what are we doing about that? Well, next meeting of LLWG on September 16th, and this is a call out to data centers that have a voltage ride-through.
If I’m hoping to run through the list in order, if I can get three or four data centers that have different technology that proves voltage ride-through, we would love to hear from you. If we can’t get that, then we want vendors that have, if they’ve got some sort of proven thing that they can show to, and we’ll step down in firmness from there. If you have a solution and would like to present, please contact Patrick and I. Our email addresses are on here, but you can see the four circles on this chart. If you have a data center or a computational load in one of those four circles, you are at risk. You will be able to energize if your studies were done before November 14th of 2025, but you will be subject to curtailment pre-contingency.
Hence, that’s really bad if you don’t have a voltage ride-through. I know there’s a lot of people that think they got an exemption. They got an exemption with the ability to energize. They did not get an exemption that will keep them able to consume. Their operations can be restricted if they don’t have voltage ride-through. It is in everyone’s best interest for ERCOT to get voltage ride-through solutions as soon as possible. If we can keep the number of loads or the megawatts in those areas below 2700 megawatts, people will be much happier than if it goes above that number. If you’ve got something that works, please reach out to Patrick and I. I think one more slide, which is just the question slide, which doesn’t say questions anymore. Oh, cool. We’re not taking any questions.
Just kidding. I just said we’re not taking any questions. Are there any questions for Bob?
Yeah, Bob Helton.
We can’t hear you, Bob Helton. Yeah, I know. I was having a problem getting off mute. It’s just power, power, of course, for the power for the day. Yeah. A couple of things. The first one is, Bob, you mentioned something about there was a large load loss on the system.
That Dominion system. Oh, on Dominion. Oh, Dominion. Okay. Oh, not on ours. Okay. I was curious. I was curious to see if it was ours and if we had any foot room issues associated with that. Because I think when we start doing ancillary services moving forward, I started to ask this earlier. It’s just too complicated. I’ll hit that offline on when ERCOT thinks we need to start looking at a foot room in their ancillary service methodology, if at all. So that was one of the questions. So thank you for that. I missed that. It was Dominion. The second one is that the points you were making on the VRT ride through and some that can and some that can’t. I want to emphasize that, you know, I’d like to see, I get ERCOT not wanting to have a teacher’s pet. There’s the school reference on anything to kind of single out any individual. But, you know, somehow we got to figure out who has the right ideas we can get out across the market so that we don’t have a bunch of parent teacher conferences from all the large loads trying to figure it out with ERCOT. So anything that can be done to help that out and ERCOT help facilitate that I think would be extremely helpful. So thanks for bringing that up, Bob. Yeah, we really need ERCOT’s help some way or another to identify things that they have seen ride through because, you know, effectively we have set a standard. We certainly set one for ERCOT. We may have set one for the entire planet. But we need help in knowing what works. Yeah, this is a big deal. We need to get to the bottom of it. Thanks.
Thank you, Bob. Bharath. Hey, Martha. Can you hear me? Yeah, I just typed my, you know, support to both Bob that I think it’s, you know, given how much large loads are going to be energized and how, you know, we’re talking to many vendors, I think it would be super useful to know these are CART approved vendors at some level. And if you can know that it would be, you know, good for a lot of developers out there that can install right solutions to support the grid. Yeah, just point out Bharath, right now my list of people that have something is a nice round zero number. So if you got something, you can be first on the list. Okay.
Okay. Thank you, Bob Whitmire. You know, please follow his plea. If you have any information that you could help contribute to the LLG, LLWG discussions around voltage ride through solutions, please reach out to Patrick or Bob Whitmire. From here, we will move on to the comprehensive transmission plan and batch one update, which is going to be covered by Matt Moranis. Thank you, Martha. And this will be relatively quick. Christy presented most of this material last time. The idea is on the slide too, is we’ve talked quite a bit about batch zero today. Batch zero executes in a kind of a standalone process to plan, get commitment, and then there’s a refinement process behind it. And the idea has been, how does the batch process serve as an intake process that feeds into the other planning reliability assessment? So there’s the idea of what does it look like to drop into a set of reliability studies? So to get to that, we’re talking about what does it look like to change the batch process, because there’s a lot of leftover ideas from batch zero or lessons learned. And then the other half of the equation was when it comes to these reliability studies and running them, what’s the best way to plan our system where the loads are fitting the planning studies, and the planning studies create the next set of studies to run the batch. So the next couple of slides I won’t read through, Christy provided them last time, which is slides three and four, is there have been some high level ideas on how to get these comprehensive transmission planning done, some ideas on how to improve batch that we have on those two, and then slide five is really the way we’re trying to set the stage for the stakeholders to engage this. And so the top line says interview TSP planning staff with regards to these changes. We’ve already been doing that for about six weeks. We’re starting to wrap up those activities, and that’s going to feed into this first workshop, which is on Monday from 1 PM to 5 PM. And that is to start talking about the draft scope of what these changes might look like. And so after that would be, we’ve skipped what we had before at TAC, was a very compressed schedule. People were being triggered by the bigger 145 activities and said, is there a way for things to slow down a bit? And so we’ve repaced this to where it’s running slower. It’s every three or four weeks is a workshop. And instead of a goal of getting to the February board meeting, it’s now a goal to get to the April board meeting. And so we’re going a little slower on these pieces. We’re always going to be more time doesn’t mean but let’s more scope in, but it does say work at a pace that can survive all of the parallel batch zero activities that are going on. So that’s the main thing I wanted to do was remind people the first workshop is next Monday that we have canceled the September 10th meeting. So the next one would be September 24th. I’ve had at least one stakeholder throw shade at the idea of 924. That’s a very busy week already don’t make it worse, but that seems to be the only day that fits into the schedule for us. And I hope that sets the stage for getting things rolling. And again, I’ll keep coming back to attack with updates on how our workshops go, but that’s what I have for now. Thanks Martha. I’ll take any questions. Okay. Thank you, Matt. Are there any questions for Matt Moranis on what’s to come on batch one and CTP? And I would just say we appreciate ERCOT sort of taking that feedback that folks have articulated about the initial schedule. This looks much more reasonable. So appreciate y’all’s work on just kind of, you know, thinking what this could look like. Okay. I don’t see anyone in the queue, Matt. So I think that you are clear and he’s noted as a final parting thought that ERCOT is going to post the workshop materials for the August 31st workshop. Yeah, go ahead. There’s no spell check in Webex. Sorry for tomorrow night. Yeah. So Thursday evening. So you have at least one business day ahead of the workshop to see what’s happening. So thanks. Okay. Thank you very much. Next item on the agenda. We’re moving into the ERCOT reports item 11. The first one is the stakeholder engagement for September board. I don’t see Rebecca on. So, Anne, do you want to cover this one for the group? Sure. I can do that. So Rebecca had talked about this the last TAC meeting, basically the stakeholder engagement at the September board. The topic will be comprehensive transmission planning. And the purpose is to provide a perspective on how CTP issues affect different market segments. And really the emphasis should be an insight and not advocacy. We have been working with some of the market segments that we will have representation from TSP’s generators and consumers. And we’ve provided them with some policy discussion prompts really to let the board know what’s important to consider during a CTP planning program evaluation. And those are the prompts listed there. I won’t read them all. But you can expect to see this at the September board meeting. Okay. Thank you. Are there any questions for Ann about September board and the stakeholder engagement topic? Brian, Bob, we’ll look forward to your words of wisdom in September.
That takes us to the next topic, which is the ERCOT.com redesign update. So we have Priyanka for that item. Hi, good afternoon. Can you hear me? Okay. We can hear you. Perfect. Thanks for having me on this call. This gives me an opportunity to talk about ERCOT.com website redesign. I’ll keep it very quick. We have been working on this redesign for at least a year now. We have our design being implemented this year and we are at that stage where we would love to get stakeholder feedback. Can you go to the next slide, please? So this slide at a very zoomed out level describes what we’ve been doing and how we’ve been documenting pain points and how we’re working towards making our website more user-friendly and intuitive for our stakeholders. So we are at a stage where we really need your feedback on our initial design. We’ve just laid out the skeleton and we would really appreciate if you all can take some time to give us your valuable feedback. I have added a SurveyMonkey link to the chat. Can you go to the next slide, please? I have added a SurveyMonkey link to the chat. I also have a QR code on the screen. Please do let us know your email address if you’re willing to give us some of your precious time to just review and share your feedback on the new design. We would really appreciate it. We are planning on releasing our MVP end of Q3 and that’s when I’ll be reaching out to all the stakeholders who have given us your email IDs to see if we can get on a call and just go over the redesigned website or if you would prefer to do it at your own convenience, we will give you the URL and you can look at the website at your convenience and give us your feedback as well. Appreciate the time today. Thank you. Do you all have any questions for me? Thank you, Priyanka. Does anyone have any questions about the ERCOT website redesign effort? I guess one here might be helpful. Could you tell us how long this survey is going to be open, Priyanka? I’m going to keep it open for at least a couple of weeks to make sure we have participation from stakeholders. We are at this crucial moment where we want to make sure that we have done everything right towards this redesign. So this is extremely important to us. Also, one other point I want to touch upon is the content segregation on ERCOT.com. As you all know, we don’t really remove anything and that is going to continue, but we are planning on segregating content as active versus archived. That way we can improve our search. That is our primary goal. And by categorizing the content efficiently, we’ll be looking at a better search experience for all. Okay, great. Thank you very much for the update. I guess I would say if you don’t get a lot of responses in the first couple of weeks, you might just consider sending it out to TAC listserv or one of the other listservs just to sort of poke people. Sure, absolutely. Thank you. Appreciate it. Thank you. Appreciate the update. Next, we have the grid research innovation and transformation, i.e. GRIT update, and I’ll turn it over to Prashant for that. Hey Martha, can you pull up the slide? Yeah. Okay, perfect. So yeah, so the GRIT transformation update is, I think, probably some of you might remember we did this back in February. So we tried to be at a six-month cadence to bring those updates to the team. And what the GRIT function is at ERCOT is mostly focusing on some of the emerging problems and solutions that we are seeing in the industry that are, I would say, that need some initial deep dive so that we can close the loop through a stakeholder process. So that’s what really GRIT function is at ERCOT. You can go to the next slide. I’ll not go over this slide. I think we all understand the problem and the reason why such a function is sort of like came up in ERCOT to have a centralized sort of tracking of what are these ideas are and working through ERCOT teams to get going on some of these deep diving the white papers or POCs to figure out the solution. So I think we can keep going. I think we can skip. I think I already explained the purpose and the vision of the GRIT team. And it really ties back to the strategic objective for ERCOT to be the most innovative and reliable ISO in the world. I think we can keep going. So I think from the process perspective, so it’s really like trying to like get all the feedback that we get from the industry and our vendor partners, our national labs, universities, and having a lot of internal discussion and through stakeholder discussion to figure out like what are these problems specifically that belong in the GRIT space. And you can go to the next slide, which is the lens we are taking here is if there are problems which are not well defined and that needs some sort of initial research, then we can write a white paper on it. And that could belong in the GRIT space. And also if there are solutions that are not well defined and there are maybe a lot of options where it may be not clear options that we can try, that could also belong in the GRIT space. And this is how we are deciding the initiatives that we take on. And also this is how we’re deciding when to stop the initiative because once we are done with both, essentially that it can fold back to the stakeholder process as maybe you can go to the next slide. So that’s what we’re showing here. So once we have the initiatives decided and we’re in the roadmapping process for 2027 right now, so you will see an updated 2027 roadmap next year on our COT website. We have a 2026 roadmap right now. So if you want to look at the GRIT website, so we are going through this process right now. And once we have this white paper or the POC done, then it goes back to the regular process that we have, the stakeholder process. So this is not bypassing any stakeholder process. This is really the initial legwork so that we have a clear understanding of what these problems and solution options are. We can go to the next slide. And as an example, like what are these problems, you know, that sort of bubble up to be like a GRIT transformation work is like, for example, we are working on an EMT white paper. I’m sure a lot of people in the group are aware of what EMT models are, which we use a PSCAD basically software to run some of these models. And as many people on this call are aware, most of these models are trying to capture fast control responses, which are mostly through IBR or power electronics based controls, which sometimes might not be captured in the RMS model. So the idea is, and there are a lot of discussion in the industry, there are a bunch of task force, bunch of solution options that the industry is talking through, but the idea for us was, we wanted to write down this whole idea of what are the EMT modeling and the challenges as ERCOT sees it. And the end goal is really once we have some of these things distilled, the conversation for us becomes easier because we have a lot of engagement going on like, and you know, it’s sometimes hard to tell exactly what we’re chasing because I mean, we know that internally, but it’s important to have that narrative written out so that we attract the right partnerships, attract the right problems that we want to tackle. So you will see this white paper coming out by end of the year on our website. So yeah. So you can go to the next slide. Yeah. So this is just showing the roadmap. So we are working on the white paper right now. This white paper might lead to some POCs ideas. We don’t know what those ideas would be right now. But, you know, once we have the white paper, I hope that attracts the right partnership and right POC ideas through that work. And maybe like we can, as a potential next step, we can further understand, you know, what tools or processes do we want to think about that eventually will be closing the loop in the stakeholder process, but from the initial thought process. So I think we can keep going. So overall this year, we had 18 initiatives on the roadmap. Some of these initiatives are starting to transition in our internal process. And by internal process, I mean, once the POC or the white paper is done, we are trying to get to our internal, you know, process of bringing the idea to our business team, even though our business teams are already very involved in it. But what we are learning is after the POC is done, there are still multiple options that are on the table. So how do we clarify those things? How do we bring it to the internal charter of, you know, what solutions we can take to the stakeholder process? So we are working through the first three things here, which are more focused on ESR commitments or ESR energy sufficiency and the DER data, you know, receiving platform, situational awareness platform, and some things about that we were trying on the metadata desegregation using AI. And there are other initiatives which are around, you know, measuring system strength and inertia using PMU data that we are working on right now. And initiative five and six are more focused on finding the right optimization engines for reactive power coordination or SCOPF problem in general. The seventh initiative is more focused on impedance scan tools, which again, there are many options. So we are working with our stability team to find out, is there a viable option for us to use? So can go to the next slide. So number eight is more focused on open source PSCAD model that we produced working with Texas A&M that is for crypto and large load. And the thought process was by producing this model, essentially when we understand ourselves, you know, what are the controls that are being proposed right now through different forums like open compute platform or OCP. So we wanted to model some of these things in PSCAD and share with the industry. So that model is already there on our website if anybody is interested to use this. Number nine is more focused on AI application for power flows, which again, there are multiple companies, multiple options on using AI to speed up power flows. So we are trying some of those. The number 10 is more focused on given we have negative sequence injection requirement in NOGA 245. So basically our code worked through, you know, the prediction working group, short circuit prediction working group and, you know, discuss some of the ideas, what can be the possible ways to implement negative sequence current injection. And again, this is not the requirement or the guideline. This is not a requirement. This is more like a guideline that, you know, our code and prediction working group came up with. So, and this, there will be more discussion on that, but there will be initial white paper that we’ll put on our website based on the learnings we had through this experience. There will be, there is some work that we are doing with UT Austin on grid forming controls, especially the interaction of the grid forming controls and the power quality issues that might emerge with a lot of power electronics device. So those, those reports you will also see on the website by end of the year. There is some work, which is number 14 on like using a single tool for economic analysis, et cetera, economic analysis and capacity expansion and liability analysis. So we are doing some RFP on it right now. You can go to the next slide. Yeah. And there, there are some white paper being written on, you know, dynamic ancillary services as a, as a concept which, which again will be available by end of the year. I talked about the EMT strategy, which is number 16th. And there are some open source data sets that we are producing with Texas A&M, Texas A&M, which is a synthetic grid data for, for a grid like 10,000 bus data so that we can work with a lot of these research partners without worrying about the confidentiality of the data that we have at ERCOT. So, so that’s idea of producing ISO sort of backed synthetic data that again, we can use internally and externally for research purposes. So hopefully that will be there by on our website by end of the year too. And there’s some work done on topology optimization, software usage. So yeah, so that is, I’m not sure there will be a white paper on it, but that is a concept we were testing, you know, as a, like does the software work? Can we use it? Things like that. So and there’s a last slide. So, so one thing we did is, is try to centralize some of the idea intake process. If, if, you know, vendors want to engage with ERCOT on some of the new innovative ideas is through the RIPE program which is a link on our ERCOT.com website. You can, you can find this RIPE partnership program. If you have ideas, you can submit those ideas through the RIPE program. And the idea is is to more centralize that intake because, you know, we have a lot of people receiving the same email from different vendors and the thought process was to bring it together through this, you know, through this RIPE program. And we have seen more than 50 requests, I would say in a year. And we basically are still thinking through how to, how to prioritize them because some of these ideas might not be directly applicable to ERCOT. They might actually be ideas for TSP or maybe for a geo. So we are not sharing yet those, what those ideas were because we don’t know yet like how to do that in a, like a, in a right programmatic fashion. But some of these ideas are, are really not for ERCOT. But yeah. So I, I’ll pause there and see if there are questions. Okay. Yeah. You’ve actually got two Bobs in the queue. We’ll start with Whitmire. Yeah. So this kind of dovetails into the voltage ride through discussion earlier. Is that the type of thing that ERCOT would be willing to pick up as part of the GRIT roadmap? I mean, this is not a future problem. This is a very real today problem. Yeah. So, so Bob, that was sort of the idea with Texas A&M large load model development is to, is to understand where that that issue actually happens today, right? I mean, what, what is, what is limiting in the controls or power electronics that, that limits the ride through, right? So, and the idea was not to just like, like show, the idea was not for ERCOT to come up with a solution. The idea was because I’m sure people will have different solution for the, for this problem. The idea was to produce the open source model that people can maybe start to use and, you know, see how they can fix the ride through using that open source model. Yeah. And I think, I think that part is fine. I guess I’m thinking about the proof of concept portion that you have on a lot of those, but we, we can talk offline, but I think, I think it might be a great place to get you guys engaged ASAP. Got it. Thank you. Got, got the angle Bob. Yeah. Yep. Makes sense. And Bob Helton. Yeah. Just a real quick thing. Could you go back to the slide that shows your, not the roadmap, the one before it on the process? Yeah. The white paper, the POC. Yeah. Question on that is as you’re going through the grid initiatives and that you’ve got on your roadmap, is there’s documentation or at least reports or things behind that that is there, are those available to stakeholders as you’re working through this process? And, you know, I was just thinking, I don’t, I’m not sure where they’re located. I probably should, but they’re, we’ve been kind of busy. You, it’d be nice to know exactly where they’re at or a better solution would be on your roadmap. If you could put a link, I could go to, you know, item number three on the proof of concept or white paper, click on that. And it links me over to the document. That would be really great if you could come up with something like that. So it’d make it easy to get to everything. Yeah. Kind of a question and a comment there. Yeah. Yeah. I think, I think that’s a, that’s a very good comment. So, so what we have done is if you go to arcot.com website, there is a, there is a landing page for grid. On that landing page, we have three things. We have a roadmap. We have all the white papers that we’re publishing. And then for example, for Texas C&M load model, there is a, there is a link for that load model. So you can download all the manuals or the open source model. So in general, I would say Bob, anything that we are producing here will, will make it available on our website with the exception of if we are working, say on a tool that we are still testing, maybe that that is not available but, but anything that we can make available we are doing that. So that, that’s, that’s definitely the intent of this. Yeah. Yeah. Okay. All right. Thanks a lot. I appreciate it. Yeah. And Tanesh just put a link to that page in the chat for us. Thank you Tanesh.
Okay. Thanks Prashant. We appreciate the update. Yeah. Thank you. And the last of the ERCOT reports that we have for today is the identity and access management program and MP service portal that’s going to be provided by Nick Jessett and Ted Hylou. Yes. Martha, can you hear me? We can hear you. Thank you. All right. Well, the last thing I wanted was to be at the end of the TAC agenda after you guys are dealt with answer service methodologies on large loads, but here, here we are staying true to the theme of the day. I want to say this is high key. So I, hopefully I gratuitously gratuitously ask for your, your attention. I am going to be speaking about two trains that are headed, headed your way. They’ve been headed your way for a while and they are just over the horizon and we need to talk to, through them in the stakeholder process. One is the identity and access management process and digital certificate is probably the trigger word. So you can associate it with what I mean by identity access management. The second one is the market participants service portal, a portal that along with the public portal that are cut foot up after winter storm Yuri out of necessity for the most part that we’re going to start making it available next year. What you have on the slide right now is just high level description of market participant interactions today. Most of you are familiar with the market information system. All the MIS applications that are there, whether that’s the outer scheduler, network modeling, credit management, and so on that currently are accessed via digital digital certificates as we effectively have known them over the last 25 years. The rest of your interactions outside of the MIS are done the old fashioned way. You pick up a phone, you send us an email, even the forms that you need to fill out that require the protocols are sent, essentially download the PDF form, fill it out and email it to a certain email address. The public portal, as I said earlier, mostly out of necessity after winter storm Yuri having been inundated with public requests. We have to put something up, an issue management system for us to take on a public inquiries because we really have not had an issue management or relationship management, a CRM, CSM system that you might be familiar with from other interactions that you might have had. We put up a public portal, but currently the honest truth is that as market participants, you also use it. So the public portal is essentially a mix, even though those are individuals essentially contacting ERCOT, not necessarily on behalf of market participants, but this is just a high level description of your interactions with market participants with ERCOT. If you can go next, then is we are looking into a future to modernize this experience. And then Nirvana is where we give you a one secure access, ideally a one identity access management system, one key that you can use to have an integrated single experience with ERCOT. And that starts with the key, the identity access management system. Again, today what you have is access to the MIS via the digital certificates that you guys are familiar with. And if you can click one more time, click next, there you go. That is used to access the market participant, the market, the operational applications that you have through the MIS. Most of you are familiar with that. And next, come next year, starting with about estimate of a key one of next year, we’re going to introduce a market participant service portal. Again, looking at the left hand side, the emails and phone call interactions that you had, we’re going to start a multi-year journey through which we’re going to look at all the interactions that you have, that you contact ERCOT with through emails and phone calls and see if we can start automating those workflows, have those interactions, go online and attractable, something that fosters self-service and have it be transparent to you. So once you submit something, it isn’t just a black box that goes into an email and hopefully an answer, but you can go in and track the status and so on. If you can click one more time, this is a multi-year journey, as I said, the left hand side pictures today, the future, one modernized experience through one key, one identity access management system that not only handles the current interactions through the MIS, but the future that we are building through the market participant service portal would all be used with one key. That one, that project, the second project outside of the market participant service portal that Nick Jessett, who is my partner in crime today, will come in a second, he manages the identity access management, what’s called the future ready identity access manager project. That also is not just the one key for one identity access manager system for the market participants, but it will also have an identity access manager system that manages the interactions that are currently handled via the public portal, via the public portal that we already have up. So you might hear terms like business to business or business to customer, the business to business interactions being between ERCOT and market participants, the business to customer interactions to be the interactions that we have through the public portal today. Today, again, with the public, but unfortunately, you guys have also have had to do that. We’re going to migrate then market participants that are partly having to use a public portal over to this market participant service portal. And if you can go next. And so at the end, benefits for market participants are that you’re going to get a stronger identity access management system, similar to the interactions that you have with other entities based on a multi-factor authentication, hopefully a simplified experience workflows that are automated that will allow you to submit something online 24 hours a day that you can go in and have self-service where hopefully you can have frequently asked questions and you can go in and hopefully answer questions that have been frequently asked, but also look up statuses of whether it’s forms or questions that you have submitted to ERCOT. Again, a more secure identity access management process to access and simplify your experience. One modernized experience that we hope to deliver on a multi-year journey. And this is just the beginning of the conversation that we’ll have over the next couple of years. If you can go next. ERCOT went through as we look through this multi-year journey and identified a half a dozen or so use cases that we’re going to implement quarter one of next year. This is just a list of at least the initial contacts, initial use cases that we’ve identified that we’re going to implement in quarter one as we continue to have discussions with you and identifying other use cases, prioritizing them and hopefully modernizing this experience that you have today through phone calls and emails over the next few years. The ones that we have slated for the first phase are, for example, market participants contacting client services. Client services aims to be your window into ERCOT business areas for the answer to your questions, to handle your inquiries, your operational conversations that we would facilitate with business teams across ERCOT. Submitting forms. Again, there’s tons of forms that you guys have submitted, but we’ve selected a couple of them, namely, for example, the notice of change of information. When you change your contacts, it is the form that the NCI form, as it’s affectionately called, is the form that you, it’s the high volume form that we have selected for this initial run, for example. Weatherization is something that’s already being done, but it’s done via, accessed via digital certificates today, but we’re going to put it in this market participant service portal, so you have that same experience. We’re going to have the ability to send notices to market participants. Notices are essentially kind of like market notices, except they’re just between ERCOT and market participants, not necessarily being sent to publicly subscribed lists. And requests for information. You get emails today through market notices when ERCOT needs information. RFIs are something we want to facilitate through these processes also. So again, we started with a public portal. We’re going to have these use cases for the first quarter of next year, and we’re going to continue to have discussions through the market on what else we need to do on future. We’ve already identified a whole bunch of forms that we will have for the next phase, and then we’ll continue to have these discussions through the stakeholder process that we start today. And if we can go next, then I’ll have Nick Jessett come and talk to you about, again, the key to these systems that I said, digital certificates. Those are near and dear to our hearts. They’ve been here for 25, 26 plus years, as long as I’ve been here. And changing that is obviously the big milestone for ERCOT. This is, again, a conversation that we’re going to have a multi-month, multi-year journey with Nick Jessett. We’ll pick this up, and I’ll come back to finish it off. Well, thank you very much, Ted. And I like all the effects on that first slide. That was awesome. So why are we doing all of this? And kind of why are we going down this path? Obviously, for us, security is very, very important. And with everything that’s happening in the world right now, we really need to update our security, not just to protect, but also to work with all the new tooling that’s coming down the path, right? With AI and all these other things that are coming down, it is very important for us to kind of modernize the technology so that you guys can use it and implement it and ingest it. So today we’re using digital certificates. In the future, we’re going to use username and password plus MFA. You’ll be able to log in once and get to everything that you have access to from that one singular login. What that does is so that modernization, it allows us to put modern tooling in within all of the various market participant tools that we use, including the service portal that Ted was talking about. It allows us to do that. And then it also allows on your side, for you guys, as you’re putting in new things, new APIs, new ways of generating, new ways of accessing information from ERCA, you can use the modern authorization protocols that are currently out there to get all of that stuff without having to do excessive development. And then obviously it is a security refresh, right? We need to make sure that we get to the very best security out there, that our security tooling is using AI to make sure that AI doesn’t come in and disrupt the market. And a simpler approach, really. There are multiple, multiple entities out there that have lots and lots of digital certificates. And if we kind of get rid of all those digital certificates and just start using a singular log on that then gives you access to everything that you have, it’s going to make the USA’s and our users lives so much easier. So, but we are going to do this in a phased transition. We’re not going to do a big bang. We’re going to go in, we’re going to do a lot of just readiness activities. We’re going to identify the applications that need to go. We’ll do a lot of readiness, a lot of testing and a lot of training with you guys. And so the market notices will kind of guide the change. That’ll be one of your ways that you’re going to get the information. And really from a security perspective, it is essential to stay ahead of the threat because nowadays most hackers and most people get into systems by logging in versus breaking in. And so we want to make sure that we put in a great system that does that for you. Next slide, please. Next slide, please.
Thank you. So what is our timeline? So this is our timeline for the market participants. And we’re going to start talking about a little bit about early testers. And so early testers are going to be the people that from the market participants, all different areas, get to kind of come in with every application that goes live and start testing it in a UAT environment, right? Just more of a dev test environment to make sure that everything we’re putting in works and make sure everything’s going well with you guys and that we answer and alleviate any of the pressures that the new tooling has done. So you can look from our timeline here. So we’ve done early testers. We’ve identified a bunch of early testers. You can still join the group of the early testers and I will drop in on this chat window kind of my contact information and the contact information for early testers. And so it’s really just the people that get to start playing with the system, start logging into the system, maneuvering around the system in a test environment before we go live so that we can identify any issues, right? We can see all of our stuff from our side, but you guys have a lot of things that you’ve built, a lot of APIs, a lot of machines logging in and all these other things that we don’t have the access to really see how they work. And so you guys will be kind of that frontline for us to say, yes, this is brilliant. This works or we’ve got something, right? So we’ve identified a lot of early testers. In September, you’re the early testers are going to get a lot more information. In October, we go live with our log on portal. And so it’s really just, we’re going to import everybody in, bring people in, but it’s live as a portal, but it really doesn’t have anything behind it, but it does give you an opportunity to log in, set up an MFA on your phone, just kind of see what the initial login looks like. And it’s really just a way to kind of prep up and make sure that we’ve got things going properly. That, as Ted had says, at that point, that then allows us, we have now a foundational thing for our just login process. And then it allows us to ingest the stuff that Ted’s talking about. It allows us then to put that into place. And so in January, we’ll actually have user acceptance testing of the market participant service portal. February sometime is going to go live. I’m not really sure of the date. But then throughout 2027, we’re also going to have lots of different applications go live, lots of different things kind of happening there. And we’ll have the same approach, same phased approach of you guys coming in, testing it, making sure everything’s good, and then we take it into production. So then at some point from 2027 to 2028, we will have ingested everything. At that point, we will be able to get rid of digital certificates completely. So during this interim phase, you will have a series of logging in with user ID, password, kind of a thing, and then still the digital certificates. Until we can ingest everything into this new system, it will be kind of a little bit more painful there. But hopefully you’ll see that. But the stuff that’s been ingested is much easier to get into, and it’s a cleaner, easier, simpler approach for you. And we will be talking more about it at the session next month. So thank you very much. Ted, over to you. Thank you. So I just want to say a couple of things. One is just what’s happening over the next few months, let’s say between now and January of next year. As Nick just said, there will be a portal where you can go and practice how to create your account, user ID, password, what multi-factor authentication is, as far as the MIS is concerned. And the applications that you access via MIS, nothing is changing. And I want to reassure everyone that before we touch anything, obviously that changes the way you interact with ERCOT, especially as it relates to the applications that are accessed via the MIS. You will know, you will have communication, there will be stakeholder meetings, there will be workshops, and so on. So I just wanted to say that. Outside of that, I also wanted to just have, we’ve thrown a lot at you, we’ve probably scared you by saying digital certificates are going to go away. But key takeaways, key takeaways are that there are two efforts that are connected, that are coming your way, the identity access management process and the market-to-service portal. These are multi-year journeys. And that the first business process that market participants will interact with using this new multi-factor authentication system will be this market participant service portal that we’re talking about. It’s slated for Q1 of next year. That has nothing to do with access to the current MIS applications, but it will start by the things that I talked about earlier, giving you a different way to contact client services and ask questions, to submit notice of changes information for authorized representatives, and so on. And then there’ll be a workshop on September 21st. Now we had high lofty goals to make to start this discussion today and then do a roadshow at RMS, WMS and ROS, but all those were canceled. And obviously we ended up at the end of the agenda attack also, but that was our plan. But we will continue to communicate. We do have a workshop. So another takeaway is that on September 21st, we’re going to have an afternoon 1.30 to 4 p.m. at the MET Center. We’re going to have a workshop where you can come and have the folks that are going to be impacted, just pretty much anybody that individually on BattleMark participants’ contacts will be impacted, where they can come and they can ask the questions and prepare. Or even before then, please go ahead and give us a question so we can prepare and we can come prepare to the workshop. We’ll have this workshop that you can send your folks to. I think that is it. Stay engaged. This is high key, as I said, it’s very important. It’s a multi-year journey. I’ll open it up for any questions. Thank you, Ted. You have a question from Bob Helton. Yeah, more of a comment right now since he answered the question. I just wanted to say, Ted and Nick, I appreciate you guys getting this to where it’s at and to get this moving and a reality. I know we’ve talked about it off and on for some time. Coming from a company where we have guys that have 70 plus digital certificates that they have to log in and log out every time they change. This is going to make things so much better on everyone. So thank you very much for this effort. Look forward to helping you out in any way we can to get this thing moving. It is our pleasure. Thank you, Bob. Thank you, Bob. I know you’ve been one of the early, you’ve been asking this question for years and we look forward to it. There’s not a very good time to change the keys to the house. And so it’s going to be somewhat disruptive, but we’re going to figure this out. We’re going to have communication stakeholder meetings. We’re going to have workshops and you guys will need to help us do our best over the next couple of years. Anybody else? Oh, sorry. I thought you were done. No, go ahead. I’m done. Yeah. Next in the queue is Ned. Yeah. Hey guys, I’ll keep it quick. I echo everything Bob just said, same sentiment. It’ll be a lift, but it’s worthwhile. This is more of a public service announcement. The IM2 future ready at RCOT email address, when that comes through, it can sometimes look, you know, look like solicitation. And so, you know, anything y’all can put in the subject line, if you’re reaching out to folks to make sure that that’s, it’s clear that it’s coming from RCOT will be helpful. Cause this is really important and getting engagement is really helpful. So just want to minimize things falling through the cracks. Noted. Thank you very much. And Nisha is also, she’s my project manager and she sends out a lot of those emails. So she’s also on the horn listening. So thank you very much for that heads up. Do appreciate that. Okay. I don’t see anybody else in the queue. So thank you, Ted. Thank you, Nick, for this update. And just one final, one final note to everybody to stay tuned for the September 21st workshop that they advertise given the other subcommittee meeting cancellations next week. That’ll be the next forum for discussion on this. Thank you, Martha. Cheers. Cheers. Finally, on to other business, two quick things, a reminder that we have the annual membership meeting coming up in December, and we’re looking for a stakeholder speaker for that. History wise, we’ve had a co-op segment, IOU segment, and consumer segment present in the last few years. Those companies were Stack, Encore, and CMC Steel in 2025. So if y’all would, you know, consider whether your company would be willing to be a presenter at the annual meeting, please reach out to Caitlin or me and let us know. Otherwise, I imagine she will start calling people like she’s done in previous years. And then last is the action item review. There’s one that I think we’ve taken care of today. It was item two on the list, review pre-deployment and participation of price responsive loads in ERS NPR 1337. So I would recommend we can remove that one from the list since we approved 1337 earlier today on the combo ballot. Is there anyone else that has other business to bring to talk today? Thank you, Keith.
All right. Not seeing any, we will adjourn and our next meeting, just reminder, will be on October 28th. We will see y’all in October. Meeting adjourned. Thank you.