PUCurrenT-Q4-2024-ENGLISH

PUCurrenT

Public Utility Commission of Texas

NEWSLETTER HIGHLIGHTS

PUCT Joins State Agencies, Officials in Texas Panhandle to Study Wildfire Safety

Survey of Texas Consumers Gives PUCT New Insight into the Value of Electric Reliability

Bondurant Honored With Cybersecurity Scholarship

PUCT ANNOUNCES LEADERSHIP CHANGES, CREATES NEW DIVISION

It’s official! At its May 23, 2024, Commission Meeting, the Public Utility Commission of Texas removed the “Interim” tag from Executive Director Connie Corona’s title, effective immediately. Corona had served as Interim Executive Director since February 1, 2024 Read more

THE TEXAS ENERGY FUND IS OPEN FOR BUSINESS!

The Public Utility Commission of Texas made history on Saturday, June 1, 2024, when the agency officially began accepting applications for the Texas Energy Fund’s (TEF) In-ERCOT Generation Loan Program. Read more

COMMISSIONER’S

PUCT’S ADVANCED NUCLEAR REACTOR WORKING GROUP SEES TEXAS-SIZED INTEREST IN FUTURE OF INDUSTRY

PUCT Chair

Thomas J. Gleeson

The PUCT’s Advanced Nuclear Reactor Working Group (ANRWG), led by Commissioner Jimmy Glotfelty, is hard at work on recommendations and a roadmap for the future of the nuclear energy industry in Texas – and interest is building around the state. Read more

(L to R: Chair Thomas J. Gleeson, Comms. Lori Cobos, Jimmy Glotfelty, and Kathleen Jackson)

COMMISSIONER’S COMMISSIONER’S CORNER CORNER

What a difference a year makes!

This time last year, the Texas Legislature and Governor Greg Abbott had just directed us, through the passage and signing of Senate Bill 2627, to create the Texas Energy Fund (TEF), a $10 billion package of grant and loan programs to make the Texas electric grid more resilient and reliable.

Oh, and it had to be in place by June 1, 2024. No problem, except for one thing. No one at the Public Utility Commission had ever set up what is essentially a bank within an agency before. We had to develop and implement a process to award billions of dollars in low-interest loans to qualifying applicants that would build a minimum of 100MW of new dispatchable power generation, and grants for finishing their projects or taking steps to improve re siliency of their systems.

The urgency was not lost on us. Not because of the shortened time frame to get the TEF up and running, but the urgent need to get companies building dispatchable power Texas must have to support our fast growing population and economy.

So, as the In-ERCOT Loan Program application window opens on June 1, I want to express my deepest thanks to the entire PUCT team for everything they did over the past year to get us here. They have built a financially sound program that will incentive more new dispatchable power for Texas and greater resiliency for everyone.

And through teamwork, hard work, and their commitment to Texas, they did it all in less than a year.

Thank you, Team PUCT!

Thomas J. Gleeson Chairman, PUCT

SURVEY OF TEXAS CONSUMERS GIVES PUCT NEW INSIGHT INTO THE VALUE OF ELECTRIC RELIABILITY

This spring, the PUCT and ERCOT launched a first-ever survey of electricity consumers to understand how consumers value electric reliability and the potential cost of power interruptions. The survey was developed by the Lawrence Berkeley National Laboratory (LBNL) and has been used by utilities and regulators across the country to develop grid reliability policy.

The Texas survey ran from March 26 through May 17. The PUCT and ERCOT received nearly 5,000 responses from residential and commercial electricity power users across the state, providing valuable data about consumers’ electricity use and the potential financial impacts of power interruptions on homes, businesses, and facilities. The survey, which was sent to a random set of consumers, was voluntary and responses were recorded anonymously.

The PUCT instructed ERCOT to conduct the survey as part of a larger study that will estimate the value of electric reliability in the ERCOT region, known technically as the Value of Lost Load (VOLL). The ERCOT VOLL will be an important data point for the Commission to consider as it presses forward on several electricity market design projects in the months ahead.

“As the PUCT develops the next stage of reliability policy and considers which infrastructure improvements are necessary to meet growth in demand, it’s critical we hear directly from Texas consumers and understand their individual needs and financial considerations,” PUCT Chairman Thomas Gleeson said when the survey launched earlier this spring.

The survey results will also contribute Texas-specific data to LBNL’s nationwide electric reliability planning tool, the Interruption Cost Estimate (ICE) Calculator, which helps utilities, government officials, and regulators across the country weigh the costs and benefits of electric reliability improvements.

PUCT ANNOUNCES LEADERSHIP CHANGES, CREATES NEW DIVISION

It’s official! At its May 23, 2024, Commission Meeting, the Public Utility Commission of Texas removed the “Interim” tag from Executive Director Connie Corona’s title, effective immediately. Corona had served as Interim Executive Director since February 1, 2024

Immediately u pon her promotion to Executive Director, Corona named Barksdale English Deputy Executive Director. He was named Chief Program Officer in April 2024 and was previously the Director of the Division of Compliance and Enforcement (DICE). 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.

Corona a lso had a busy spring rounding out the agency’s leadership team, including the creation of a new division.

In M arch, Ramya Ramaswamy was named the Director of the newly created Energy Efficiency division. In this role, Ramaswamy will oversee staff as they spearhead multiple energy efficiency and Ramaswamy j oined the PUCT in 2019 and has worked in the Infrastructure and Market Analysis divisions.

demand r esponse projects, including a potential overhaul of the current energy efficiency rules based on the public comments received in Project No. 56517 – Review of Energy Efficiency Planning , which were due to the agency at the end of May.

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

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

Deputy Executive Director Barksdale English

Executive Director

Connie Corona

Director, Energy Efficiency

Ramya Ramaswamy

Agency Counsel

Jena Abel

PUCT LEGAL DIVISION CONDUCTS

CONTINUING LEGAL EDUCATION COURSES

In addition to its regular workload of handling legal cases and briefs on behalf of the entire agency, the PUCT’s Legal Division this spring put on two Continuing Legal Education (CLE) classes. Dozens of fellow agency attorneys and staff from the PUCT and Office of Public Utility Counsel (OPUC) staff took part.

The first class, “Watt You Need to Know about Complaints,” held at the PUCT on April 11, walked attendees through how to navigate the PUCT’s complaint process. Complaint dockets are often assigned to new PUCT attorneys to help them learn on the job more quickly.

“Explaining the unique nature of each complaint helped people understand that there is not a one-size-fits-all approach for complaint cases,” said PUCT Attorney David Berlin. “The CLE class aimed to help provide tools and tips that can be used throughout complaint cases. We want to make sure our new attorneys know they are supported and have resources available to them in the form of trainings, like this CLE, and in the attorneys who teach this course and future versions of it.”

The second class, “Primer for Water Regulation,” held at the PUCT on April 18, was developed after OPUC attorneys requested a primer on water law. The intent of the course was to educate attendees about the types of water cases the PUCT sees and the precedent of water law rulings in Texas, with a special focus on water topics OPUC regularly handles.

“We want OPUC attorneys to walk away with a better understanding of water law, their role in the process (especially how it may differ from the PUCT’s role), and more empowered to participate in our cases,” said PUCT Managing Attorney Ian Groetsch.

Licensed attorneys must complete 15 hours of CLE credits each year, including three hours of ethics credits. Each of the PUCT’s classes count for one CLE credit.

“That means that the Legal Division will have provided over 10% of the required CLE hours for our own attorneys through internal training, which goes a long way to furthering our culture of learning and development at the agency,” said PUCT Senior Managing Attorney John Harrison.

A special shout-out to PUCT attorneys Andy Aus, David Berlin, Kelsey Daugherty, Ian Groetsch, Anthony Kanalas, Scott Miles, Rowan Pruitt, and David Skawin for their hard work in developing and presenting the CLE courses.

THE TEXAS ENERGY FUND IS OPEN FOR BUSINESS!

The Public Utility Commission of Texas made history on Saturday, June 1, 2024, when the agency officially began accepting applications for the Texas Energy Fund’s (TEF) InERCOT Generation Loan Program. The Program will provide low-interest loans to qualifying companies for the construction of new dispatchable electric generating facilities in the Electric Reliability Council of Texas (ERCOT) power region or the expansion of existing facilities providing power to the ERCOT power region. Qualifying projects must add at least 100 MW of new dispatchable generation capacity to the ERCOT grid.

Between May 1, 2024, and May 31, 2024, parties interested in applying for an in-ERCOT loan were required to file a Notice of Intent (NOI) with the PUCT. A t otal of 125 NOIs were filed and approved to proceed to the application phase, for loans totaling $38.9 billion and a total of 55,908 new megawatts for the ERCOT grid.

On M arch 21, 2024, the PUCT adopted a new rule, 16 TAC §25.510 , w hich establishes the application process, project eligibility requirements, evaluation criteria, and loan terms for the In-ERCOT Generation Loan Program. The application portal can be found here and i s being operated by the PUCT’s contractor for the program.

In a ddition to the In-ERCOT Loan Program, the PUCT adopted another new rule, 16 TAC §25.511 , e stablishing the application process and performance standard requirements for the Completion Bonus Grants Program within the TEF. New dispatchable electric generation resources that meet certain planning requirements after June 1, 2023, and interconnect to the Electric Reliability Council of Texas (ERCOT) power grid before June 1, 2029, may be eligible for a completion bonus grant.

To b e eligible for a completion bonus grant, an applicant's new generating resources must provide at least 100 megawatts (MW) of new dispatchable generation capacity to the ERCOT grid, among other criteria

PUCT s taff continue to work on implementation of the TEF’s remaining programs, the Texas Backup Power Package Program and the Outside ERCOT Grant Program. More information on these programs and the TEF can be found on the PUCT website.

BONDURANT HONORED WITH CYBERSECURITY SCHOLARSHIP

Chuck Bondurant, the PUCT’s Director of Critical Infrastructure Security & Risk Management, has been awarded a scholarship from the National Association of Regulatory Utility Commissioners (NARUC) through a Department of Energy (DOE) grant to attend advanced cybersecurity training.

The week-long, in-person cybersecurity training, offered by the SANS Institute (SysAdmin, Audit, Networking, and Security), focuses on the cybersecurity of operational technologies. Bondurant plans to attend the training this summer in Orlando, Florida.

Attendees’ j ob duties must include cybersecurity pertaining to jurisdictional utilities. They must also have at least three years of Commission service and have previously attended at least one NARUC Cybersecurity Training.

“Whether h e is briefing legislators, conferring with federal authorities, or offering insights to utility leaders, Chuck instantly wins respect with his presence, expertise, and inquisitive mind,” said PUCT Executive Director Connie Corona in her nominating letter for Bondurant’s scholarship. “In short order, he has built a strong team and created a program that surveys and establishes best practices for the cyber-hygiene of utilities representing more than $39 billion worth of investment, both within ERCOT and in four fully integrated utilities interconnected to multistate Independent System Operators.”

Bondurant j oined the PUCT in July 2018. He previously served in the U.S. Army, retiring as a Major.

OPE CORNER

Office o f Public Engagement Director Mike Hoke met legislative and county officials in George West, Texas, on April 16, 2024, to discuss concerns about wind, solar, and battery storage facilities. Also at the meeting were State Representative Ryan Guillen, Live Oak County Judge James Liska, Wilson County Judge Hank Whitman, McMullen County Judge James Teal, La Salle County Judge Leodoro Martinez, Atascosa County Judge Weldon Cude, Jim Wells County Judge Pedro "Pete" Trevino, Jr., Bee County Commissioner Tino Olivares.

WORK WITH US AND MAKE A DIFFERENCE!

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 .

PUCT’S ADVANCED NUCLEAR REACTOR

WORKING GROUP SEES

TEXAS-SIZED

INTEREST IN FUTURE OF INDUSTRY

The PUCT’s Advanced Nuclear Reactor Working Group (ANRWG), led by Commissioner Jimmy Glotfelty, is hard at work on recommendations and a roadmap for the future of the nuclear energy industry in Texas – and interest is building around the state.

Among t he many entities contributing to the effort are Texas institutions of higher learning. In the spring, members of the ANRWG toured Abilene Christian University’s Nuclear Engineering Experimental Testing Laboratory, including its molten salt demonstration reactor, and met with staff from the Nuclear Regulatory Commission and industry leaders.

The A NRWG is also partnering with the University of Texas at Austin’s Bureau of Business Research. The Bureau will develop an estimate of the economic size and impact of the creation of a small modular nuclear reactor industry in Texas over a 10-year period.

Members a lso took part in the United States Nuclear Industry Council’s Advanced Reactors Summit in Houston.

All o f this fact-finding and study is helping the working group’s four subcommittees develop recommendations in areas like market demand and end users, development and manufacturing, higher education and research, state and federal regulatory policy, and ERCOT market design.

The working group’s higher education subcommittee recently shared draft recommendations on workforce development strategies. They include bolstering basic energy education at the pre-K through 12th grade and community college levels, increasing nuclear education programs and faculty output at university systems, and deploying more research reactors at universities in Texas.

The w orking group’s final report is due to Gov. Greg Abbott by December 1, 2024 and will outline a roadmap for the State of Texas to become a leader in the nuclear energy industry and provide safe, reliable, resilient, and affordable power for future generations of Texans.

To l earn more about the Working Group and its progress, please visit the Texas Advanced Nuclear Reactor Working Group webpage on the PUCT Website.

Commissioner Jimmy Glotfelty touring Abilene Christian University Nuclear Energy eXperimental Lab

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

PUCT JOINS STATE AGENCIES, OFFICIALS IN TEXAS PANHANDLE TO STUDY WILDFIRE SAFETY

In the aftermath of the Smokehouse Creek Wildfire in the Texas Panhandle earlier this year, the PUCT was called upon to assist with a study to prevent such disasters in the future. Texas Speaker of the House Dade Phelan convened an Investigative Committee on the Panhandle Wildfires to provide an interim report to the 88th Texas Legislature.

The committee held in-person hearings in Pampa in early April. During the hearings, the committee took testimony and collected information on contributing factors to the wildfires, the allocation of resources to and the effectiveness of wildfire disaster preparedness and response, and the coordination between local, state, and federal governmental entities regarding wildfire prevention and disaster preparedness and response.

Office of Public Engagement (OPE) Director Mike Hoke represented the PUCT at the hearings to provide testimony and answer questions. Hoke joined leaders from other state agencies, including the Texas Division of Emergency Management (TDEM), the Texas Parks and Wildlife Department (TPWD), the Texas Department of Transportation (TxDOT), the Texas Comptroller of Public Accounts, the Texas Commission on Fire Protection, the Railroad Commission of Texas (RRC), the Texas Department of Insurance (TDI), and the Texas A&M Forest Service, as well as other local and regional entities.

The Interim Committee’s report, issued on May 1, indicated that a decayed power pole broke, causing a power line to fall and ignite the fire.

The PUCT will continue to work with legislators and partner agencies on wildfire prevention and response improvements.

PUCT UNVEILS NEW LEGISLATIVE RULEMAKING TRACKER

With the click of a mouse, Texans can now track the PUCT’s progress implementing important legislation that impacts the regulation of the electric, water, and telecom industries in Texas. The agency unveiled a new Legislative Tracker this spring to summarize our progress enacting statutory requirements while creating greater transparency for the public.

The tool tracks rulemakings and reports associated with the last two Regular Legislative Sessions of the Texas Legislature and provides color-coded progress updates—a green bar indicates full implementation, while a yellow bar indicates work is still ongoing. The bill language, a brief description of proposed action, relevant project number, and latest action are linked on the PDF, which can be downloaded and printed.

The tool will be updated periodically.