Meeting Summary – 10/05/24 PUCT Workshop

Chairman Gleeson calls meeting to order

• The meeting of the Public Utility Commission of Texas was called to order for October 5, 2024.
• The meeting will cover a number of items with opportunities for invited testimony and public comments.
• Housekeeping notes include location of exits and bathrooms.

Remarks by Texas Lt. Governor Dan Patrick

• Lt. Governor Dan Patrick emphasized the importance of the hearing for citizens affected by the storm.
• He acknowledged the state and city’s response to the storm but criticized CenterPoint’s preparedness and communication.
• CenterPoint’s CEO Jason Wells was questioned about potential overcharging customers $100 million annually, but his responses were deemed unsatisfactory.
• The commission was urged to conduct an audit under PURA Sections 14.201 and 14.202.
• The purchase of $800 million in non-mobile generators by CenterPoint was criticized as against legislative intent and financially questionable.
• Patrick suggested the lease of these generators may have been motivated by profit interests rather than public service.
• He emphasized the need for an audit to determine how much CenterPoint has overcharged customers over the years.
• CenterPoint’s lack of basic maintenance, such as vegetation management, was linked to the prolonged power outages during the storm.
• Patrick suggested that the Board of CenterPoint should ask for Jason Wells’ resignation due to inadequate preparation and poor communication during the storm.
• He indicated that if the Commission does not act, the Business and Commerce Committee would explore further actions, including potential subpoenas.
• Patrick touched on broader energy concerns but noted they were for a different discussion.

Commissioner Glotfelty’s comments on the Lt. Governor’s remarks

• 18 months ago, an application for a resilience grant was denied by the Department of Energy.
• CenterPoint and American Electric Power were involved in a Coastal resiliency plan.
• The application included a request for $100 million, with a total request amount of $300 million for resilience funding.
• Concerns were raised about Texas not receiving grant approval while other states did.
• Encouragement for the Legislature and State leadership to support future opportunities for funding.
• Acknowledgement of the challenges faced by the Commission.

Remarks by Texas State Senator Carol Alvarado

• Acknowledgment of ERCOT meeting outside Austin for the first time in 20 years.
• Senator Alvarado holds nomination influence over commissioners.
• Call for accountability and responsibility, especially regarding audits and investigations.
• Expressed sympathy for those affected by Hurricane Beryl in Houston and the Gulf Coast.
• Criticized the power outages and infrastructure failures with 42 deaths.
• Concern over equity gaps in disaster responses, e.g., access to power generators.
• Upcoming legislation to prioritize customers over shareholders.
• Plan to ensure electric utilities hire more linemen and improve infrastructure.

Remarks by Texas State Senator Molly Cook

• The aftermath of Hurricane Beryl was described as horrifying, with reports of people in senior living facilities without power or basic necessities.
• Concerns were raised about the lives and well-being of individuals, particularly those with disabilities, during the hurricane.
• Emphasis was placed on making every effort to prevent similar occurrences in the future.
• The senator acknowledged the resources available to make the region hurricane resilient.
• A critique was made on CenterPoint’s inability to meet the needs of people during the hurricane.
• The senator emphasized the importance of ensuring public funds are used effectively to keep the power on and prevent outages, not just for recovery.
• Concern that some communities, especially low-income, were neglected due to poor planning.
• The meeting mentioned a customer service table set up by CenterPoint for addressing questions from the public.

Public comment (for matters under the Commission’s jurisdiction)

• Speaker: Miss Dolores

  • Feeling of neglect and lack of control in low-income areas.
  • Suggestion for CenterPoint to involve local citizens and volunteers to assist with issues affecting them.
  • Experience of not being able to reach CenterPoint during a hurricane.
  • Advocacy for educating children about emergency preparedness.

• Speaker: Mitch Mayonn

  • Representation of IBEW Local Union and importance of union labor.
  • Union labor provides safer conditions and fair wages.
  • Acknowledgment of frustration in communities when power restoration is delayed.

• Speaker: Nick Nicoletti

  • Issues with CenterPoint’s responsiveness and reliability.
  • Challenges with the consistency of standards for installations.
  • Cost burdens on customers resulting from CenterPoint’s actions and lack of responsiveness.

• Speaker: Ed Allen

  • Representing utility workers and challenges faced during Hurricane Beryl restoration.
  • Importance of having sufficient in-house linemen.
  • Sympathy for loss of life and suggestions for elder care facilities to have onsite generation.

• Other Public Speakers

  • Many citizens expressed frustration over CenterPoint’s slow response and inadequate communication during outages.
  • Numerous stories highlighted suffering due to lack of electricity, impacting health and safety.
  • Speakers called for accountability, improved infrastructure, better communication, and fair utility rates.

Project No. 53404 – Temporary Emergency Electric Energy Facilities and Long Lead-Time Facilities

• Introduction of Project No. 53404 by the chair.
• Focus on the development and deployment of temporary emergency electric energy facilities.
• Consideration of facilities with long lead times in context of emergency energy provisions.

Project No. 56897 – Electric Utility Outage Trackers and Hazardous Condition Reporting

• Discussion on the role of outage trackers in improving reliability and communication.
• Importance of timely and accurate reporting on hazardous conditions.
• Potential regulatory changes to enforce better tracking and reporting standards.

Project No. 56898 – Provision of Emergency Contact Information to Transmission and Distribution Utilities by Retail Electric Providers

• The project focuses on ensuring that Retail Electric Providers (REPs) provide accurate emergency contact information to Transmission and Distribution Utilities (TDUs).
• Participants discussed the importance of having up-to-date and reliable contact information for effective communication during emergencies.
• Concerns were raised regarding the consistency and frequency of updating the emergency contact details.
• The meeting considered the implementation of standardized procedures for REPs to submit and update emergency contact information to TDUs.

Project No. 56822 – Investigation of Emergency Preparedness and Response by Utilities in Houston and Surrounding Communities

• Discussion on Project No. 56822 regarding emergency preparedness.
• Focus on utilities serving Houston and surrounding communities.
• Investigation into current response strategies and their effectiveness.

PUC Executive Director Connie Corona with Overview of the Investigation Schedule Related to Issues with Hurricane Beryl

• Requests for information were issued in August to electric, water, and communications service providers.
• Input was also invited from retail electric providers, power generators, and impacted groups like healthcare facilities.
• The collected information is being used to create a report.
• The final report is due by December 1 and will be presented at the November 21 Open Meeting.
• The report will assess utility preparedness, response, and recommendations.
• Staff is utilizing information from panelists to inform recommendations.
• The investigation involves over two dozen staff members from various divisions including engineers, attorneys, and investigators.
• The report will be submitted to the Commission, and eventually to the legislature and the Governor.

Shaun Miller, Assistant Chief of Texas Division of Emergency Management on Response and Communication

• Shaun Miller introduces himself as the assistant chief with the Texas Division of Emergency Management (TDEM), responsible for emergency management programs in Southeast Texas.
• Local governments initiate and conclude disaster management, utilizing mutual aid and assistance from neighboring jurisdictions.
• State assistance is sought when local resources are inadequate.
• Effective emergency management requires integrated plans across local, state, and federal levels.
• TDEM provides state resources to local responders to protect life, property, and environment.
• Chapter 418 of the Texas Government Code mandates an emergency management agency for each county and city.
• TDEM coordinates a continuous process of emergency management involving preparedness, response, recovery, and mitigation.
• TDEM mobilizes personnel and supplies across regions during disasters, addressing critical needs first.
• State emergency management includes planning, training, exercising, response, recovery, and mitigation.
• Collaboration with local, state, and federal agencies enhances disaster response.
• Disaster district activations ensure unified responses involving state and partner agencies.
• Preparedness programs focus on all hazards, planning, exercise, and improving resilience.
• Education on preparedness measures is crucial for community resilience.
• Personal preparedness is emphasized for both public and partners.
• Importance of learning from past experiences and continuously improving planning and cooperation.

Agenda Item: Lance Wood, Houston-Galveston office of the National Weather Service with Post Tropical Cyclone Report

• Lance Wood thanked ERCOT for the opportunity to present.
• Discussed collaboration with the community for weather preparedness and emergency management.
• Beryl made landfall near Matagorda, Texas on July 8, with outer rain bands reaching southeast Texas on July 7.
• Beryl caused coastal flooding, flash flooding, wind damage, and power outages.
• Highest sustained wind gusts were 64 mph at Surfside Beach, with a gust up to 97 mph.
• Rainfall was prolific, with general 4 to 8 inches, but some areas received 10 to 15 inches.
• One confirmed EF1 tornado occurred in Jamaica Beach.
• Storm surge flooding had inundation generally 4 to 6 ft, with a maximum of 8 ft.
• A flood watch and tropical storm warning were issued for Harris County and Houston area starting July 6.
• Wind gusts in the Houston area were 60 to 70 mph, with some over 80 mph.
• Houston Hobby Airport recorded a wind gust of 84 mph.
• Beryl’s track was different from Hurricane Ike, but wind speeds were similar.
• Post-landfall heat indices reached 100 to 106 degrees, with heat advisories issued.
• Concern over heat stress due to power outages and adjusted heat advisory criteria.
• Potential hurricane activity discussed for the remainder of the season.

Chairman Gleeson’s Question for Lance Wood concerning activity for the rest of hurricane season

• A tropical cyclone is forming in the Southern Gulf, likely to become a storm named Milton.
• The storm is expected to move East Northeast, posing more of a threat to Florida than Texas.
• October typically sees a shift in hurricane threat from Texas towards Florida and the Atlantic coast.
• Despite the positive forecast, vigilance is still necessary as it is not yet October 15.
• Historically, Texas has not experienced a hurricane landfall after October 15 since reliable records have been kept.
• Despite the positive forecast, vigilance is still necessary as it is not yet October 15.

Commissioner Hjaltman’s question for Shaun Miller on communication of critical infrastructure

• Collaboration with local officials such as county judges, city mayors, emergency management coordinators, and utility districts is ongoing before and during disasters.
• Statewide weather calls are conducted to alert officials of potential disasters like storms, wildfire danger, or flooding.
• Communication channels are kept open consistently to ensure readiness for any emergency, allowing officials to contact ERCOT anytime.
• The list of contacts is updated more often than the required annual basis, including checks during and after events.

Commissioner Glotfelty’s question for Shaun Miller on community outreach

• ERCOT collaborates with local elected officials, mayors, judges, and emergency management coordinators to engage in community outreach.
• ERCOT representatives are visibly present in communities through the use of reflective vests or other identification methods.
• Coordination with public information officers helps disseminate messages to community members.
• ERCOT assisted with communication during the Deer Park and LaPorte pipeline fire by conducting preliminary damage assessments and working with local public information officers.
• ERCOT’s role does not include restoring power; this is the responsibility of utilities. ERCOT supports local communities in other ways.

Commissioner Cobos’ question for Shaun Miller on communication with CenterPoint

• During the storm, a representative from CenterPoint was present at the Emergency Operations Center (EOC) to provide updates on restorations.
• The state operations center also works collaboratively with CenterPoint, Entergy, and other providers, especially during events like Beryl affecting areas such as Galveston.
• The public should be made aware of the ongoing collaboration between TDEM, local utilities, and government entities.
• There were no known issues reported from MUDs or critical infrastructures about contacting CenterPoint during the storm.
• Close collaboration with city and county officials ensured that any potential communication issues were monitored.
• Clarification was requested on how utilities utilize various hurricane models and whether they subscribe to the weather service or third-party models for storm tracking.

Commissioner Glotfelty’s question for Lance Wood on utilities subscribing to their hurricane models

• Uncertainty regarding the specific models utilities consider for hurricanes.
• Government-run models are public domain and are considered among the best globally.
• Proprietary models also exist.
• Primary reliance on the National Hurricane Center’s forecast for simplicity and clarity in messaging.
• Confusion can arise from showing too many different model solutions.
• A suggestion to inquire with CenterPoint on the information they rely upon for decisions.

Chairman Gleeson’s comments for Jason Wells regarding utility duty to ratepayers

• Reliable electricity is foundational to safety and security.
• ERCOT has a duty to ensure the provision of reliable electricity.
• Chairman believes both ERCOT and regulators take their duties seriously.
• Encouragement for continued public engagement before and after storms.
• Effective communication with customers is crucial for problem-solving.
• The meeting emphasized the importance of engaging with the Public Utility Commission’s Office of Public Engagement.
• Gratitude expressed for participation on a Saturday and acknowledgment of input received.

Project No. 56793 – Issues Related to the Disaster Resulting from Hurricane Beryl

Connie Corona on Public Input Questionnaire Related to Issues with Hurricane Beryl

• ERCOT visited Houston to gather public input on Hurricane Beryl’s impact.
• Over 16,000 responses received from a public comment questionnaire, which remains open until Wednesday.
• Questionnaire focuses on outages due to Hurricane Beryl and May de Racho.
• Majority of respondents experienced outages of at least one day; many faced 5-7 days, and some over 7 days.
• 86% of respondents expressed dissatisfaction with communication from electric providers during outages.
• Stories shared included long power outages impacting businesses, public water systems, long-term care facilities, and families.
• The information gathered will help inform policy recommendations to the legislature.
• Upcoming expert discussions on storm preparedness and response best practices will further support policy development.
• The completed investigation report will be available on the ERCOT website.

Chairman Gleeson Adjourns Meeting

• No further business was discussed.
• The meeting of the Public Utility Commission was adjourned.