PUCurrenT December2024 English

DECEMBER 2024

VOLUME 6

PUCurrenT Public Utility Commission of Texas

NEWSLETTER HIGHLIGHTS 2024: A Year of Leadership and Organizational Changes at the PUCT PUCT Expands Online Resources to Better Serve and Inform Public OPE On the Road and In Your Corner: 2024 Highlights by the Numbers

CHAIRMAN’S CORNER PUCT Chair Thomas J. Gleeson

COMMISSIONER LORI COBOS ANNOUNCES RESIGNATION FROM PUCT

Commissioner Lori Cobos announced her resignation from the Public Utility Commission of Texas during the Commissioners’ regularly scheduled open meeting on November 21, 2024. Her resignation will be effective December 31, 2024. Read more

COMMISSIONER JIMMY GLOTFELTY ANNOUNCES RESIGNATION FROM PUCT Commissioner Jimmy Glotfelty announced his resignation from the Public Utility Commission of Texas in a letter to Gov. Greg Abbott on December 4, 2024. His resignation will be effective December 31, 2024. Read more

TEXAS TO LEAD IN ADVANCED NUCLEAR ENERGY: NEW REPORT OUTLINES PATH FORWARD Governor Greg Abbott and Public Utility Commission of Texas (PUCT) Commissioner Jimmy Glotfelty announced the release of the Texas Advanced Nuclear Reactor Working Group’s (Working Group) final report and policy recommendations on Nov. 18, 2024. Read more Public Utility Commission of Texas

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CHAIRMAN’S CORNER

Marathon Sprinting Most of you I’m sure know the saying, “it’s a marathon, not a sprint” – meaning big changes or meaningful projects take time and can’t be rushed. I couldn’t agree more. Most of the time.

Coming up on my one-year anniversary as chairman of the PUCT, I’m also reminded of the immortal lyrics by the late Jerry Reed in his Smokey and Bandit classic, “Eastbound and Down” – “We’ve got a long way to go and a short time to get there.” Yes, tongue firmly in cheek. But in all seriousness, it fully expresses the urgency of the work we’re doing for Texans.

The PUCT went a long way in a short time in 2024. Last fall Texas voters approved the $10 billion Texas Energy Fund. Just six months later we’d designed the program and were taking Notices of Intent from companies interested in applying for state-backed low interest loans to build critically needed power plants. It was incredible work, that remains ongoing, by our PUCT team.

Amidst all the important projects we were working on – creating a reliability standard for the ERCOT market and finalizing the Permian Basin Reliability Plan this past summer – the Houston area took a one-two punch with the derecho in May and Hurricane Beryl in July.

Millions of Texans were left without power, but plenty of anger and questions about why the area’s utilities didn’t hold up better. Tasked with finding answers and making recommendations for improvements by Gov. Greg Abbott no later than Dec. 1, we went to work.

In just three months, the PUCT collected 16,560 comments from the public and 15 requests for information from the Greater Houston area’s utilities, local governments, businesses, emergency services and others. All five commissioners even went to Houston to hear directly from residents. We got our report to the Governor and Legislature ahead of schedule.

I’m very proud of all we accomplished for Texans in 2024. And I can assure you we won’t rest in 2025. We’re already lacing up our shoes and preparing for a very important legislative session. What I’ve come to appreciate even more in my first year as Chairman is while it may be a marathon, we have a long way to go and a short time to get there, so we better sprint.

Thomas Gleeson Chairman

Public Utility Commission of Texas

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COMMISSIONER LORI COBOS ANNOUNCES RESIGNATION FROM PUCT

Commissioner Lori Cobos announced her resignation from the Public Utility Commission of Texas during the Commissioners’ regularly scheduled open meeting on November 21, 2024. Her resignation will be effective December 31, 2024.

Commissioner Lori Cobos briefing Gov. Abbott on readiness for Tropical Storm Francine

Governor Greg Abbott appointed Commissioner Cobos to the Commission in June 2021 following Winter Storm Uri. She was confirmed by the Texas Senate in July 2021. Since then, Commissioner Cobos has played a critically important role in major statewide initiatives to fortify the reliability and resiliency of the state’s electric grid. Commissioner Cobos has also played a leading role in the development of major transmission infrastructure across the state, including the Permian Basin region and Rio Grande Valley. She has served as an ex officio member of the ERCOT Board of Directors and has served on the Regional State Committee of the Southwest Power Pool.

Commissioner Lori Cobos sharing “Lessons from Texas” on building grid resilience at the Edison Electric Institute’s 2024 conference in Las Vegas

Prior to her appointment as PUCT Commissioner, Commissioner Cobos served as Chief Executive and Public Counsel at the Office of Public Utility Counsel, where she was also appointed by Gov. Abbott.

Commissioner Cobos intends to pursue opportunities in the private sector.

Commissioner Lori Cobos speaking with Texas Tech University School of Law students about careers in energy and electricity law in Texas.

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COMMISSIONER JIMMY GLOTFELTY ANNOUNCES RESIGNATION FROM PUCT Commissioner Jimmy Glotfelty announced his resignation from the Public Utility Commission of Texas in a letter to Gov. Greg Abbott on December 4, 2024. His resignation will be effective December 31, 2024.

Governor Greg Abbott appointed Commissioner Glotfelty to the Commission in August 2021 following Winter Storm Uri. He was also confirmed by the Texas Senate in August 2021.

Commissioner Glotfelty delivering keynote on growing clean, safe nuclear power in Texas at Nuclear Texas SXSW 2024

Commissioner Glotfelty has been instrumental in efforts to strengthen the reliability and resilience of the Texas electric grid in the wake of Winter Storm Uri. He has been a major voice in the decision-making surrounding new transmission infrastructure around the state and was a leader in advancing the aggregate distributed energy resource (ADER) pilot program. Commissioner Glotfelty also led Governor Abbott’s Texas Advanced Nuclear Working Group, which published a final report this fall. The report includes policy recommendations to develop a world-leading advanced nuclear power industry in Texas.

Commissioner Glotfelty at the Wyman Gordon Steel Forging facility in Houston with the US Nuclear Industry Council

Prior to his appointment as PUCT Commissioner, Commissioner Glotfelty served in senior energy policy roles within the U.S. Department of Energy, President George W. Bush’s administration, and Texas state government. He also held roles in the private energy sector.

Commissioner Glotfelty intends to pursue opportunities in the private sector.

Commissioner Glotfelty visits with the next generation of grid operators and their instructors at Texas A&M University Smart Grid Center.

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2024: A YEAR OF LEADERSHIP AND ORGANIZATIONAL CHANGES AT THE PUCT It’s been a busy year of leadership changes across the Public Utility Commission of Texas (PUCT)—with many new faces and many familiar faces in new places.

Governor Greg Abbott kicked off the leadership changes on Jan. 19, 2024, by appointing then-Executive Director Thomas Gleeson as Chairman of the PUCT. Gleeson was sworn in as Chairman on Jan. 23, 2024. His term as Chairman is set to expire on Sept. 1, 2029.

Gleeson joined the PUCT in Dec. 2008 and has held multiple roles throughout the agency, including chief operating officer. He had served as executive director of the PUCT since Dec. 2020 until his appointment as Chairman.

Chairman Gleeson sworn in Jan 23, 2024

On June 24, 2024, Governor Abbott appointed Courtney Hjaltman as a Commissioner of the PUCT, filling the lone vacancy on the five-member Commission. Commissioner Hjaltman previously served as the chief executive and public counsel for the Office of Public Utility Counsel (OPUC), where she represented residential and small commercial customers in proceedings before the PUCT and the Electric Reliability Council of Texas (ERCOT). She is an expert in the state’s electric, water, and telecommunication industries and has worked for the State of Texas in a variety of roles throughout her career.

Hjaltman was sworn in on June 26, 2024, with a term set to expire on Sept. 1, 2025.

Commissioner Courtney Hjaltman

Upon Chairman Gleeson’s appointment, then-Deputy Executive Director Connie Corona took the reins as Interim Executive Director of the agency. The Commission named her Interim Executive Director on Feb. 1, 2024, before removing the “interim” tag from her title on May 23.

Corona first joined the PUCT in 1997, rising to the role of Director of Electric Policy Analysis. She left in 2003 and rejoined the agency in 2017, serving as director of the Competitive Markets Division and Chief Program Officer before overseeing the Market Analysis, Consumer Protection, Infrastructure, Legal, Utility Outreach, Rules and Projects, Compliance and Enforcement and Rate Regulation divisions of the agency as Deputy Executive Director since 2020.

Executive Director Connie Corona

Immediately upon her promotion to Executive Director in May, Corona named Barksdale English Deputy Executive Director. He was named Chief Program Officer in April 2024 and had previously served as the Director of the Division of Compliance and Enforcement (DICE) since July 2021. The DICE, Rules and Projects (RAP), and Market Analysis teams, as well as the Texas Energy Fund program, now report to English. English joined the agency in 2018.

Deputy Executive Director Barksdale English and Executive Director Connie Corona

Corona and English also had a busy year rounding out the agency’s leadership team, including the creation of two new divisions. (cont.)

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2024: A YEAR OF LEADERSHIP AND ORGANIZATIONAL CHANGES AT THE PUCT

In March, Ramya Ramaswamy was named the Director of the newly created Energy Efficiency division. In this role, Ramaswamy oversees staff as they spearhead multiple energy efficiency and demand response projects, including a potential overhaul of the current energy efficiency rules. Ramaswamy joined the PUCT in 2019 and previously worked in the Infrastructure and Market Analysis divisions.

Director, Energy Efficiency Ramya Ramaswamy

In November, Lucy Nashed was named the Chief of External Affairs. She will lead the agency’s Consumer Protection Division, Office of Public Engagement, Division of Utility Outreach, Governmental Affairs Division, and Communications Division. Nashed will join the PUCT on Dec. 9, 2024. She has extensive experience in government relations, policy development, and strategic communications, both in state government and the private sector.

Chief of External Affairs Lucy Nashed

John Lajzer (known as JB) is the new DICE Director, effective Aug. 1, 2024, replacing English after his hiring as Deputy Executive Director. Lajzer joined the PUCT in December 2023 as a staff attorney in DICE, where he handled enforcement actions against electric and water utilities.

DICE Director John Lajzer

Additionally, in April 2024, former Legal Division Deputy Director Jena Abel moved into the Agency Counsel role. The agency’s Central Records, Library, and Public Information Act teams report to Abel, who has been with the PUCT since 2023.

Agency Counsel Jena Abel

We are grateful to each of these staff for serving the agency and State of Texas so well.

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WORKSHOP IN THE BAYOU CITY – MAKING HISTORY IN HOUSTON The Public Utility Commission’s investigation into severe weather readiness and response by Greater Houston area utilities brought all five commissioners to the Bayou City on Saturday, Oct. 5. It was the first time in PUCT history all five commissioners convened a workshop outside the agency’s Austin headquarters. The workshop was held in Houston to better accommodate residents who wanted to participate.

More than 100 residents from in and around Houston turned out for the unprecedented PUCT workshop, many to share their experiences and expectations relating to their utility’s reliability and resiliency in strong storms. Among those on hand to address the commissioners and the public were Lt. Gov. Dan Patrick and State Senators Carol Alvarado and Molly Cook.

CenterPoint Energy, the region’s primary transmission and distribution utility, was called upon to provide an update on the company’s efforts to improve the utility’s ability to withstand and recover from hurricanes and extreme weather. CenterPoint CEO Jason Wells apologized to the more than two million customers who lost power, some for several days, following Hurricane Beryl and reiterated previous comments to Commissioners that the utility will improve resiliency for its customers.

The workshop was streamed live, and an archive of the livestream can be viewed on the PUCT website.

AGENCY PREPARES BIENNIAL REPORT FOR TEXAS LEGISLATURE It’s that time of the biennium again! Public Utility Commission of Texas (PUCT) staff have been hard at work putting together our biennial report to the Texas Legislature, and there’s a lot to share.

Commissioners are expected to approve publication of the report later this month. The biennial report is required by law to be submitted to the Texas Legislature no later than January 15 of each odd-numbered year. The 89th Texas Legislature will convene on January 14, 2025.

The 2025 Agency Report highlights the Commission’s and Agency Staff’s work over the past two years (primarily during fiscal years 2023 and 2024, from September 1, 2022 – August 31, 2024). During that time, the PUCT experienced significant changes in agency leadership, organizational changes to implement new legislative mandates, like the Texas Energy Fund, and the passage of several key Commission initiatives, including the Permian Basin Reliability Plan and a reliability standard for the ERCOT region.

The Biennial Report provides legislators with updates to legislative recommendations provided to the 88th Texas Legislature. It also offers a look back at how the ERCOT grid handled the summer and winter seasons during the past biennium.

Updates for the electricity, telecommunications, and water and sewer industries—including Commission rulemakings— are also in the report, as is an overview of PUCT Enforcement actions over the biennium.

Once approved by the Commission, the biennial report will be available on the PUCT website.

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PUCT EXPANDS ONLINE RESOURCES TO BETTER SERVE AND INFORM PUBLIC Throughout 2024, the Public Utility Commission of Texas (PUCT) was busy creating and adding more online resources. These additions to the PUCT website highlight new agency initiatives and provide more information on existing public resources within the PUCT. Check out some of our biggest online updates this year: Office of Public Engagement: Our Office of Public Engagement serves as the public’s conduit to the PUCT. An updated webpage provides key information about the functions of the PUCT and how the public can participate in agency processes and decision-making.

Filing Complaints: Our Consumer Protection Division serves as the frontline help for consumer complaint issues. Detailed information about filing complaints by industry is available online.

Consumer Information: Our Consumer Information page features a new, easyto-read format to provide all consumers access to the information they most readily use.

Communications: Our Communications Division educates Texans about the duties, responsibilities, and activities of the PUCT. A refreshed page houses archived news releases and issues of this newsletter, PUCurrenT, and provides a sign-up link for the latest news and information from the agency.

Government Relations: Our Government Relations team serves as the agency’s conduit to the Texas Legislature. Of note, this year the GR team developed a legislative tracker to mark progress on implementing key legislation from the 87th and 88th Legislative Sessions.

Open Meetings: Our Open Meetings page offers a one-stop-shop for all open meeting agendas, broadcast videos, and minutes after the meetings conclude. It also includes information on how to participate in open meetings during the public comment period.

Texas Energy Fund: Voters authorized the creation of the Texas Energy Fund in November 2023 after the Texas Legislature passed Senate Bill 2627 during the 88th Legislative Session. All major program updates and milestones achieved are announced on this page.

Texas Advanced Nuclear Working Group: Gov. Abbott established the Texas Advanced Nuclear Reactor Working Group in 2023, under the leadership of PUCT Commissioner Jimmy Glotfelty. All program updates, including the group’s final report, are available on this page.

Energy Efficiency: With the creation of our Energy Efficiency Division also came a new webpage dedicated to the division’s work. You’ll find all the updates for the Energy Efficiency Implementation Project (No. 38578) in one place.

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OPE ON THE ROAD AND IN YOUR CORNER: 2024 HIGHLIGHTS BY THE NUMBERS The PUCT’s Office of Public Engagement (OPE) Director Mike Hoke and his team have been crisscrossing Texas in 2024 to help Texans be heard at the PUCT. Here’s a breakdown of what they did: Events Attended: 40 “We started the year in Lubbock educating customers about the transition to retail electric choice and how to choose an electric plan that works best for their needs. We’re ending the year in Houston talking to a neighborhood civic club to discuss improving electricity resiliency and storm recovery.”

Mike Hoke, Director of the Office of Public Engagement, speaking to consumers at the Lubbock Retail Shopping Fair

Mike Hoke meeting with CenterPoint Energy customers

Largest Event Attendance: 400. Lubbock Retail Shopping Fair.

Our team spent two days in the Lubbock Expo Center talking oneon-one with customers who were shopping for a retail electric provider (REP). This marked the first time that residents of Lubbock could choose their REP. They had lots of questions about how the market works, how to file a complaint, and the role of the PUCT. Smallest Event Attendance: 4. Gates at Water’s Edge Homeowners Association in the City of Oak Point, Texas, in Denton County. OPE hosted a virtual meeting to discuss the sale of their water utility and how they could participate in the PUCT review of the sale.

Magenta Pola, Public Liaison Specialist, speaking with a Brazilian delegation visiting the PUCT.

“I’ve travelled up to Pampa in the Panhandle down to George West in south Texas and over to Marshall in deep east Texas. It is important that we talk to consumers face to face and listen to their concerns. Whether four or 400, we’ll go anywhere, anytime and we’re happy to meet virtually, too.”

Texans Served via Phone or Email: 677 “While the Consumer Protection Division has long been helping Texans resolve issues with their individual bills or address violations of PUCT rules, there is also a need to help customers navigate the complicated processes at the PUCT, including technical policy issues. Cases and rulemakings are hard for most consumers to follow.

OPE provides an extra level of customer service to bring the consumer into the process and have their voice heard.”

Mike Hoke speaking to residents of Resort on Eagle Mountain Lake in Ft. Worth

Public Utility Commission of Texas

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PUCT, INDUSTRY PREPARING FOR MAJOR TRANSMISSION BUILD-OUT IN PERMIAN BASIN FOLLOWING APPROVAL OF ELECTRIC RELIABILITY PLAN On Sept. 25, 2024, the Public Utility Commission of Texas (PUCT) unanimously approved the Permian Basin Electric Reliability Plan. The plan outlines transmission infrastructure investments that will be necessary to support the ongoing expansion and electrification of Texas’ oil and gas industry in West Texas and the growing electricity needs of the region’s local communities.

The effort was spearheaded by PUCT Commissioner Lori Cobos.

“The Permian Basin is the heartbeat of our state and nation’s energy dominance and economy,” Commissioner Cobos said at the time of the plan’s approval. “This plan is a roadmap that will ensure electric reliability in the region for decades to come and facilitate critical transmission infrastructure investment that will ensure the continued success of Texas’ oil and gas industry and support the region’s local communities and our entire state.”

House Bill 5066, passed by the Texas Legislature in 2023 and signed into law

by Governor Greg Abbott, required the PUCT to direct the Electric Reliability Council of Texas (ERCOT) to develop the reliability plan. The legislation required that the plan address: extending transmission service into areas where mineral resources have been found, increasing available capacity to meet forecasted load, and reducing interconnection times in areas without access to transmission service.

Commissioner Lori Cobos with Sen. Kevin Sparks

The PUCT and ERCOT are now in the process of working with transmission service providers (TSP) in the area to determine which TSPs will be responsible for the ownership, construction, and operation of the transmission lines, facilities, and other projects approved in the plan. Once the ownership of these projects is determined, the permitting process will begin.

All information related to the development of the Permian Basin Reliability Plan, including specific transmission projects and estimated costs, public comments, and input from industry and local stakeholders, is available in PUCT Project No. 55718.

IMPLEMENTATION OF TEXAS ENERGY FUND IN FULL SWING, DRAWING STRONG INDUSTRY RESPONSE To ensure reliable electricity for a growing population and economy, Texas must secure new on-demand power, and the Texas Energy Fund (TEF) is among the Public Utility Commission of Texas’ (PUCT) most critical tools in that effort. The PUCT spent the last year implementing the four TEF programs, which have been met with strong interest from industry leaders.

The PUCT finalized the rule for the In-ERCOT Generation Loan Program on March 21. The program provides low-interest loans to incentivize the construction of new dispatchable electric generating facilities or the expansion of existing facilities within the Electric Reliability Council of Texas (ERCOT) region. The PUCT received 72 applications for loans through the program, and 16 of those applications are currently undergoing a thorough due diligence review. Initial disbursements for approved loans will be issued by December 31, 2025.

The PUCT established the Completion Bonus Grant Program through PUCT rule 16 TAC §25.511 on April 25, 2024. The program will provide grants to new dispatchable electric generation resources that were planned after June 1, 2023, and will interconnect to the ERCOT power grid before June 1, 2029. The PUCT is developing the application and supporting materials, and the application will go live on Jan. 1, 2025.

The Texas Backup Power Package Program will provide grants and loans to design, procure, or install stand-alone back up power sources at facilities necessary to support community health, safety, and well-being. With the help of its engineering vendor, Patrick Engineering, and the Texas Backup Power Package Advisory Committee, the PUCT is gathering public and industry input and plans to launch a formal rulemaking to formalize the program in 2025.

The Outside of ERCOT Grant Program will provide funding for transmission and distribution infrastructure or electric generating facilities in Texas outside of the ERCOT power region. The program will provide grants for modernization, weatherization, reliability enhancements, and vegetation management. The PUCT published a draft rule for the program on Sept. 20 and accepted public comments on the draft. The PUCT plans to file the final draft of the rule for the Commission’s consideration early next year.

Public Utility Commission of Texas

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RELIABILITY STANDARD PROVIDES FIRST-EVER FRAMEWORK FOR ERCOT GRID The Public Utility Commission of Texas (PUCT) made history in August 2024 when it adopted the first-ever reliability standard for the Electric Reliability Council of Texas (ERCOT) region. For the first time, consumers and utilities throughout the ERCOT region have the framework to measure the current and projected reliability of the grid.

The PUCT adopted 16 TAC §25.508 to implement the new reliability standard for the ERCOT region, which was a requirement outlined by the 87th Texas Legislature when it passed Senate Bill 3 in 2021. Setting a standard for reliability in ERCOT allows for regular assessments of the grid’s ability to meet consumer demand and help the PUCT and ERCOT determine which market or reliability improvements could be necessary in the future.

The ERCOT grid must meet three criteria to remain in compliance with the reliability standard: Frequency – In the ERCOT region, a grid outage resulting from inadequate power supply to meet demand must be expected to occur no more than once per ten years on average.

Duration – A potential grid outage resulting from inadequate power supply to meet demand must be expected to last less than 12 hours.

Magnitude – The amount of electricity lost during any hour of a potential outage resulting from inadequate power supply to meet demand must be expected to be less than the amount of electricity that can be safely and effectively rotated during an outage.

The PUCT also established a process for a regular assessment of the ERCOT region’s reliability. Beginning January 1, 2026, ERCOT must conduct a probability-based assessment every three years to determine whether the power system is meeting the reliability standard and is expected to continue meeting the standard for the next three years.

If ERCOT determines the system fails to meet the reliability standard, it must include in its report to the Commission recommended changes to the ERCOT market design that could address the deficiency and outline the potential cost of those changes. The PUCT would then provide 30 days for the public to comment on the ERCOT assessment.

If ERCOT’s assessment shows the system fails to meet the reliability standard, the independent market monitor (IMM) must conduct an independent review and Commission staff must provide their own recommendations on potential market design changes and associated costs. The Commission would then review ERCOT’s assessment, the IMM’s review, Commission staff’s recommendations, and public comments to determine whether any market design changes may be necessary.

More information related to the development of the reliability standard is available in PUCT Project No. 54584.

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TEXAS TO LEAD IN ADVANCED NUCLEAR ENERGY: NEW REPORT OUTLINES PATH FORWARD AHEAD OF 89TH LEGISLATIVE SESSION Governor Greg Abbott and Public Utility Commission of Texas (PUCT) Commissioner Jimmy Glotfelty announced the release of the Texas Advanced Nuclear Reactor Working Group’s (Working Group) final report and policy recommendations on Nov. 18, 2024.

The major new report is a comprehensive roadmap for developing a world-leading advanced nuclear power industry in Texas.

“I want to thank Governor Greg Abbott for his leadership on this important issue,” PUCT Commissioner Jimmy Glotfelty said when the report was published. “He recognized early on the incredible opportunity the State of Texas has to become the world leader in advanced nuclear power and took action, creating the Texas Advanced Nuclear Reactor Working Group to map out the future of this industry in Texas.”

The report is the culmination of over 14 months of research by the Working Group, which included nuclear industry leaders, experts from the University of Texas at Austin and Texas A&M University, manufacturing and supply chain powerhouses, and leaders from every level of government.

The report proposes policy recommendations for the Texas Legislature to consider during the upcoming 89th legislative session.

Read the full report, Deploying a WorldRenowned Advanced Nuclear Industry in Texas: Considerations and Recommendations for Action, here.

“This report is just the beginning,” Commissioner Glotfelty said.

“Now, Texas and our leaders are equipped with the information they need to take swift action and ensure advanced nuclear power delivers safe, reliable, and affordable energy for generations of Texans to come.”

Commissioner Jimmy Glotfelty speaks at Texas Nuclear Alliance

The report outlines strengths that make Texas uniquely positioned to become a world-leader in nuclear power, including a skilled workforce, growing demand for power, existing manufacturing capability, and a system of ports and fabrication facilities. It also includes a comprehensive study from the Bureau of Business Research at the University of Texas at Austin on the effects an advanced nuclear industry would have on the Texas economy and supply chain.

Commissioner Glotfelty’s full statement on the report is available here.

Additional information on the report and Working Group is available here on the PUCT website.

Commissioner Jimmy Glotfelty and his Chief of Staff V.A. Stephens celebrate release of Nuclear Report Public Utility Commission of Texas

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PUCT COMPLETES INVESTIGATION AND REPORT ON STORM READINESS AND RESPONSE IN GREATER HOUSTON REGION The Public Utility Commission of Texas (PUCT) has released its first-of-a-kind report, Investigation of Emergency Preparedness and Response by Utilities in Houston and Surrounding Communities, on utility preparedness and response to extreme weather in the Greater Houston area. The four-month investigation focused on utilities in the region and their readiness and response to the May 2024 Derecho and Hurricane Beryl in July 2024.

Gov. Greg Abbott ordered the investigation in the aftermath of the storms, which left more than two million Texans without power, many for extended periods. The report includes more than a dozen recommendations for utilities to improve customer communications and harden facilities and equipment against extreme weather. Some of the recommendations require legislative action.

This was a groundbreaking effort for the agency, led by Chief of Staff Luisa Venegoni and Enforcement Director John Lajzer, with the support of several divisions within the PUCT. Agency staff scrutinized critical information provided by utilities on their storm readiness and response. But more importantly, the PUCT directly engaged the public and customers hit hardest by the storms, asking them to share their experience with their utility in the disasters.

Chairman Gleeson surveying work to restore power

The PUCT received 16,560 responses to the online request for information. The Commission also hosted a public workshop with all five commissioners present in Houston, which was attended by more than 100 people. PUCT staff studied more than 2,000 complaints received by our Consumer Protection Division. The investigation team also gathered requests for information from dozens of electric, water and telecom providers, county emergency management officials and municipal governments to understand the impacts on those utilities and organizations.

By going beyond rules compliance and focusing on those who lived the experience, the investigative team could fully understand the real-world, real-time impacts of the storms on affected customers. The report can be found here. Many of the documents submitted for the investigation are found in Project No. 56822.

PUCT APPROVES FIRST UTILITY RESILIENCY PLAN FOR ONCOR SERVICE TERRITORY At its November 14 open meeting, the Public Utility Commission of Texas (PUCT) formally approved the first plan submitted by an electric utility to strengthen the resiliency of its electric systems and facilities and protect Texans against natural disasters and other threats. Oncor, which serves areas in east, west, and north-central Texas, submitted the resiliency plan.

House Bill 2555, enacted by the Texas Legislature and signed into law by Governor Greg Abbott in 2023, allows electric utilities in Texas to file a resiliency plan for approval with the PUCT. The plans must include measures that would help the utility prevent, withstand, mitigate, or more promptly recover from resiliency events, which include extreme weather, wildfires, and cybersecurity or physical security threats. Specific requirements for resiliency plans are outlined in 16 TAC §25.62.

Oncor’s approved plan includes measures to mitigate the risk of wildfires, strengthen their overhead and underground distribution systems, protect against lightning strikes, expand vegetation management programs, implement physical security at critical facilities, and enhance the digital capability of their system to protect against cybersecurity threats. Oncor’s full resiliency plan and associated public filings are available in PUCT Project No. 56545.

PUCT approval of Oncor’s resiliency plan allows Oncor to begin implementing these resiliency measures and permits Oncor to recover the reasonable and necessary costs associated with the improvements through rates applied to their customers’ future electric bills, as specified in House Bill 2555.

To ensure accountability, any electric utility with a Commission-approved resiliency plan must file an annual resiliency plan report

by May 1 of each year, beginning the year after the plan was approved. The report must include an implementation status update, an evaluation of the effectiveness of resiliency improvements, and specific evidence that demonstrates resiliency benefits.

American Electric Power Texas, Texas-New Mexico Power Company, Southwestern Electric Power Company and Entergy Texas have also submitted resiliency plans, which are under review.

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THE THREAT IS REAL AND GROWING: PUCT PARTNERS WITH CYBERSECURITY EXPERTS TO HOST UTSA SUMMIT Amidst a growing cyber threat environment, the PUCT’s Critical Infrastructure Security and Risk Management (CISRM) team brought together cybersecurity and utility experts from across Texas in October for its second Critical Infrastructure Cybersecurity Summit.

CISRM partnered with Paragon Systems, Inc., and the University of Texas at San Antonio’s (UTSA) Center for Infrastructure Assurance and Security to host the two-day summit on UTSA’s campus. More than 150 attended the October 9-10 conference, participating in 18 unique sessions with individual speakers, panels, and technical workshops. There were also tabletop exercises to simulate realworld cyber-attacks to provide participants with near-real world experience in responding to cyber threats.

“Cybersecurity requires collaborative conversations on common challenges and issues in the cybersecurity and physical security space around both electric utilities and infrastructure and interdependent partners, like oil and gas,” said Olivia Hemby, the PUCT’s Critical Infrastructure Planner, who attended the conference. “Some of the most critical work happens between sessions when attendees network to discuss industry changes and progress and share needs.”

Chuck Bondurant participates in a panel discussion on “Addressing the Talent Shortage in Cybersecurity”

Texas State Representative Barbara Gervin-Hawkins gave the welcome address on the first day of the conference. Other speakers included representatives from across the country, including the Lower Colorado River Authority (LCRA), Entergy, the U.S. National Security Agency, the U.S. Department of Energy, the Electricity Information Sharing and Analysis Center (E-ISAC), and other cybersecurity experts, including the PUCT’s own CISRM Director Chuck Bondurant, who spoke on “Addressing the Talent Shortage in Cybersecurity.”

The first Critical Infrastructure Cybersecurity Summit was held at Texas A&M University in 2022. The next summit will convene in 2026.

WORK WITH US—MAKE A DIFFERENCE FOR TEXAS! AND VETERANS, WE WANT YOU! The PUCT is hiring candidates across multiple agency divisions. It’s our job to ensure reliable, affordable, and accountable electric, water and telecom utility service for Texans and our fast-growing state.

Please visit our website for our latest career opportunities.

To mark Veterans Day this year, we featured comments on our social media channels by some of the PUCT’s veterans on what it’s like continuing their service with us following their military careers.

Check out what they had to say here.

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CONSUMER RESOURCES

Monitor outage maps and find contact information for them on our Storm Resources page: https://puc.texas.gov/storm

Understanding the types of plans that are available can help you make better decisions for your home and your family’s needs.

Visit Powertochoose.org to learn more!

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The mission of the Public Utility Commission of Texas is to protect customers, foster competition, and promote high quality utility infrastructure.

Public Utility Commission of Texas

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