Aug 24, 2026 Public Utilities Board on 2026-08-24 9:00 AM

[2. CONSENT AGENDA] [A. PUB26-143 Consider approval of the August 10, 2026 minutes.] [B. PUB26-145 Consider recommending adoption of an ordinance of the City of Denton, Texas, adopted concurrently with the Cities of Bryan, Garland, and Greenville, approving the purchase and exchange of certain transmission assets by the Texas Municipal Power Agency (“Agency”); and providing an effective date.] [C. PUB26-144 Management Reports 1. Future Agenda Items 2. SWIFT Loan Update 3. New Business Action Items] [00:19:19] THE MOTION CARRIES UNANIMOUSLY. WE NOW MOVE ON TO ITEM C. MANAGEMENT REPORTS. [00:19:25] >> GOOD MORNING. BOARD AND PB MEMBERS. WITH REGARDS TO THE FUTURE AGENDA ITEMS WILL BE [00:19:31] BRINGING SOMETHING FORWARD FOR THE NEXT MEETING. TO TALK ABOUT THE EQUIPMENT FAILURE WE HAD AT [00:19:36] LAKE LEWISVILLE LAST WEEK THAT FORCED US TO MOVE TO DROUGHT ONE RESTRICTIONS. WE'LL BE GIVING YOU MORE INFORMATION ON THAT IN YOUR PACKET. YOU SHOULD HAVE SOME BACKUP DOCUMENTATION ON THE SWIFT LOAN, WHICH STANDS FOR THE STATE STATE WATER IMPLEMENTATION FUND. WE. THIS. THIS IS THE THIRD FINANCING AGREEMENT THAT WE HAD TO TAKE FORWARD FOR THE PROGRAM THROUGH [00:20:02] THE TEXAS WATER DEVELOPMENT BOARD. BECAUSE OF THE TIMING, WE NEEDED TO GO TO CITY COUNCIL AND GET APPROVAL TO SIGN THE DOCUMENTS PRIOR TO BRINGING IT TO PB. BUT YOU SHOULD HAVE ALL YOUR INFORMATION, YOUR BACKUP, YOUR YOUR PACKET, AND IF YOU HAVE ANY QUESTIONS, I'M AVAILABLE. AND WE ALSO HAVE MATT HERE. IF YOU HAVE ANY QUESTIONS WITH REGARDING REGARDS TO THE FINANCIAL STRUCTURE. AND OTHER THAN THAT, I DON'T HAVE ANY NEW BUSINESS. >> SO I UNDERSTAND. I BELIEVE I SAW AN ANNOUNCEMENT THAT THE DROUGHT RESTRICTIONS HAVE BEEN LIFTED. >> THAT IS CORRECT. ON SUNDAY AFTERNOON. >> OKAY. SO IT'S SO THE OPERATION'S BEEN RESTORED TO. OKAY. YES. THANK YOU. GREAT. AND NOW WE CAN MOVE ON TO OUR WORK SESSION, RECEIVE A REPORT, HOLD DISCUSSION, AND GIVE STAFF [A. PUB26-132 Receive a report, hold a discussion and give staff direction regarding re-implementing ERCOT’s Commercial Emergency Response Service Program for Denton Municipal Electric.] DIRECTION REGARDING RE IMPLEMENTATION OF ERCOT'S COMMERCIAL EMERGENCY RESPONSE SERVICE PROGRAM FOR DME. >> GOOD MORNING, CHAIR AND BOARD. MY NAME IS STUART BEARDSLEY WITH MUNICIPAL ELECTRIC. AND TODAY I'M GOING TO TALK, AS YOU SAID, ABOUT POTENTIALLY REESTABLISHING THE COMMERCIAL EMERGENCY RESPONSE SERVICE PROGRAM. THIS PROGRAM IS AN ERCOT PROGRAM. ERCOT ALLOCATES $75 MILLION PER YEAR. THAT BALANCE IS IS BUILT INTO ENERGY COSTS THROUGHOUT THE YEAR. SO THAT'S WHERE THEY COME UP WITH THAT $75 MILLION PER YEAR. THERE'S FOUR STANDARD CONTRACT TERMS WINTER, SPRING, SUMMER AND FALL. AND WHAT THIS IS, IS A PROGRAM FOR DEMAND RESPONSE. SO WHEN THE SUPPLY AND DEMAND AREN'T QUITE THERE AND IT'S GETTING CLOSER AND CLOSER, SUMMER MONTHS, WINTER MONTHS, THIS IS ONE OF THE TOOLS THAT ERCOT HAS IN ITS BAG. IN ADDITION TO INCREASED GENERATION, THEY CAN ALSO HAVE THIS AGGREGATE OF COMMERCIAL CUSTOMERS THAT THEY CAN TAKE THAT LOAD OFF THE GRID. DME IS PROPOSING THE ERS 30 PROGRAM TO THE COMMERCIAL CUSTOMERS. THIS MEANS THAT IF YOU'RE ENROLLED IN THE PROGRAM, ERCOT ISSUES A NOTICE, AND THEN COMMERCIAL CUSTOMERS HAVE 30 MINUTES TO GO OFFLINE BY THAT APPROVED AMOUNT. FOR THIS PROGRAM, DME WOULD BE THE ONE STOP SHOP. WE WOULD REPRESENT THE PARTICIPANTS BY SUBMITTING THE BIDS INTO THE AUCTION HANDLE DISPATCH COMMUNICATIONS, PROVIDE REQUIRED INTERVAL DATA, AND THEN ON THE BACK END, MANAGING THOSE FINANCIAL SETTLEMENTS. SO HOW THIS WORKS ERCOT ISSUES AN RFP PRIOR TO THAT CONTRACT TERM, AND THEN POTENTIAL PARTICIPANTS SUBMIT A BID INTO AN AUCTION. ERCOT WILL REVIEW ALL THOSE BIDS. THE PRICE, THE NEED, SEE WHO THEY WOULD LIKE TO PARTICIPATE IN THE PROGRAM, AND THEN THEY WOULD AWARD THOSE BIDS. SO JUST BECAUSE YOU ENTER A BID INTO THE SYSTEM DOESN'T NECESSARILY MEAN THAT YOU'RE GUARANTEED PARTICIPATION. SO DME PREVIOUSLY THE ERS PROGRAM WAS PART OF THE GREEN REBATE PROGRAM. THERE IS NO PARTICIPATION IN THE PROGRAM. SO THAT WAS RETIRED IN A FEW SLIDES. WE HAVE TWO LOCAL CUSTOMERS WHO ARE INTERESTED IN PARTICIPATION. SO THAT'S WHY WE'RE BRINGING THIS TO YOU TODAY. THIS IS A WAY THAT IT WORKS. AGAIN, DME AND THE CUSTOMER WILL WORK TOGETHER TO DETERMINE THAT PRICE. THEY WOULD SUBMIT A BID TO THE RFP. ASSUMING THAT THAT IT'S APPROVED. YOU'RE PART OF THAT PROGRAM. ERCOT ISSUES THE NOTICE TO PARTICIPANTS TO REDUCE LOAD. SO THEY WOULD NOTIFY US. WE WOULD THEN NOTIFY THE CUSTOMER. CUSTOMER HAS 25 MINUTES UNDER OUR PROGRAM TO REDUCE THAT LOAD. THAT GIVES US TIME FOR COMMUNICATION, TIME TO TEST IT, TO MAKE SURE THAT THEY HAVE MET THOSE LOAD REDUCTIONS, AND THEN THEY'RE OUT FOR THE DURATION OF THAT PERIOD, WHICH IS DETERMINED BY ERCOT. ERCOT WOULD THEN NOTIFY US THAT THEY CAN COME BACK ONLINE. SO THEY COME BACK ONLINE. WE WOULD HANDLE ALL THE BACK END FINANCIAL SETTLEMENTS, ALL THE REPORTING THAT'S NECESSARY, AND THEN THAT PAYMENTS ISSUED BY ERCOT TO US, WE WOULD THEN DISTRIBUTE IT 75% TO THE CUSTOMER, 25% TO US. AND THAT 25% COVERS ALL OF OUR STAFFING. ANY SYSTEMS THAT WE NEED, KIND OF ALL OF OUR COSTS. THERE'S BENEFITS KIND OF ALL AROUND FOR THIS. THE, THE COMMERCIAL CUSTOMER GETS MONETARY CAN MONETIZE THEIR BACKUP CAPABILITIES OR THEIR ABILITY TO JUST GO OFF ONLINE, OFFLINE. GENERALLY, THESE, THEY WOULD [00:25:02] PARTICIPATE IF IT'S A LOW OPERATIONAL BURDEN FOR DME. AS OUR SYSTEM OPERATOR HERE, THIS IS SOMETHING THAT WE ALREADY PAY INTO, RIGHT? SO THIS HELPS US RECOVER SOME OF THE COSTS AND FEES FOR ERCOT. IT'S AN ADDITIONAL LOAD MANAGEMENT TOOL FOR US. AND THEN IT GIVES US OPERATIONAL FLEXIBILITY DURING EMERGENCIES BY TAKING THAT WHATEVER THAT LOAD IS, BY TAKING IT OFF OF OUR SYSTEM, WE'RE ABLE TO DO A FEW OTHER THINGS. AND THEN ERCOT IN GENERAL, AS I SAID, THIS IS AGGREGATE. SO THIS IS AN ADDITIONAL LOAD MANAGEMENT TOOL. SO THEY DON'T IF GENERATION ISN'T GOING TO BE ABLE TO COME ONLINE AS THEY EXPECT, THEY'RE ABLE TO TAKE THIS LOAD OFF THAT SUPPORTS STATEWIDE GRID STABILITY, AND IT ULTIMATELY DECREASES THE LIKELIHOOD OF ROTATING OUTAGES. SO TO PARTICIPATE IN OUR PROGRAM, WE'RE PROPOSING THAT IT'S OPEN TO OUR GENERAL SERVICE, MEDIUM, LARGE AND TIME OF USE CUSTOMERS. THEY MUST HAVE A HISTORIC PEAK DEMAND OF AT LEAST 200KW. SO THAT'S ABOUT 200 CUSTOMERS ARE IN THOSE CLASSES THAT MEET THAT CRITERIA. IF THEY'RE INTERESTED, WE WOULD THEN HAVE TO WORK WITH THEM TO MAKE SURE THAT THEY'RE ABLE TO COMMIT TO REDUCING THAT LOAD WITHIN 25 MINUTES. SO THE PARTICIPATION IN THE PROGRAM WOULD LIE WITH US AND OUR STAFF. SO AS I MENTIONED, WE DO HAVE A COUPLE CUSTOMERS WHO ARE INTERESTED IN THIS. BOTH TARGET LOCATIONS IN DENTON HAVE BACKUP GENERATION AVAILABLE THAT THEY CAN TAKE THEIR ENTIRE STORE OFFLINE. BOTH STORES COMBINED WOULD BE ABOUT ONE MEGAWATT, AND THAT WOULD BE SHIFTED TO THOSE GENERATORS. AND SO THIS DOESN'T JUST BENEFIT DME IN GENERAL. IT'S ALSO A BENEFIT TO ALL DME CUSTOMERS ACROSS CLASSES. AS I SAID, THESE THIS PROGRAM'S ALREADY BUILT INTO THE ERCOT COST FOR ENERGY. SO WE'RE PAYING INTO THIS. THIS WOULD ALLOW DME AND OUR CUSTOMERS TO RECOVER A PORTION OF THESE DOLLARS THAT ARE EMBEDDED INTO THE COST OF ENERGY. PRELIMINARILY, WE'VE LOOKED AT IT. WE WOULD NEED A MINIMUM BID OF ABOUT $2,600. AND SO THAT COVERS OUR COSTS. THAT AGAIN WOULD BE 1950 TO THE CUSTOMER AND $650 TO DME. AND THEN WE'D WORK WITH THE CUSTOMER TO DETERMINE THAT BID VALUE, BECAUSE THEY MAY HAVE FUEL CONSIDERATIONS, STAFFING, THINGS LIKE THAT. SO IT MAY BE ABOVE THAT $2,600, BUT THAT WOULD BE THE MINIMUM FOR US. AND THEN, YOU KNOW, ULTIMATELY FOR ALL CUSTOMERS, IF WE'RE ABLE TO REDUCE A ONE MEGAWATT, WE'RE NOT BUYING THAT. SO IF THAT'S CAPPED OUT AT $5,000, WE COULD AVOID THAT ONE MEGAWATT WORTH OF COST. YOU KNOW, A FOUR HOUR EVENT COULD BE $20,000 THAT DME IS NOT PAYING INTO. SO WE'RE ABLE TO PASS THOSE SAVINGS TO OUR CUSTOMERS. THERE ARE SOME PERFORMANCE CONSEQUENCES OR SOME CONSEQUENCES FOR NONPERFORMANCE. SO IF WE DON'T MEET, THE CUSTOMER DOESN'T COME OFFLINE AS A PLANNED. BASICALLY, WHAT THIS IS SAYING IS THAT IT DOESN'T JUST AFFECT THAT CUSTOMER'S PARTICIPATION. IT COULD AFFECT DME PARTICIPATION AS WELL. SO IF THEY DON'T COMPLY WITH IT, THEN THEY COULD BE SUSPENDED FROM THE PROGRAM. IF OUR TOTAL PORTFOLIO FOR THE PROGRAM DOESN'T MEET THOSE REQUIREMENTS, THEN EVERY. SO IF WE HAVE FIVE SEPARATE BUSINESSES PARTICIPATING, THEN ALL FIVE OF THOSE COULD BE PENALIZED AND SUSPENDED FROM THE PROGRAM. AND SO WITH THAT, WE DO ASK FOR YOUR RECOMMENDATION TO COUNCIL TO REESTABLISH THE COMMERCIAL ERS PROGRAM. WE DO PLAN TO PRESENT THIS TO COUNCIL AT, I THINK, SEPTEMBER 14TH OR 18TH AT THEIR MEETING. THEY'RE SO HAPPY TO TO ANSWER ANY QUESTIONS YOU MIGHT HAVE. >> I'M CURIOUS. YOU MENTIONED THAT DME WOULD BE PUTTING IN AN RFP TO ERCOT TO BE APPROVED OR NOT APPROVED. SO THIS PROGRAM WOULD BE IMPLEMENTED WHETHER WE GOT APPROVAL OR NOT TO PARTICIPATE. >> RIGHT. SO SO WHAT WE'RE ASKING TODAY IS TO REESTABLISH THE PROGRAM SO THAT WE CAN TAKE THOSE STEPS TO BE ABLE TO PARTICIPATE. >> BUT THE PROGRAM WOULDN'T GO INTO EFFECT UNLESS THE RFP WAS APPROVED. IS THAT GENERALLY THE. >> WE WOULDN'T BE ACTIVELY [00:30:02] PARTICIPATING UNLESS. YEAH, BUT THEN THIS OPENS US UP TO BE ABLE TO PARTICIPATE, SUBMIT A BID IN THE NEXT CONTRACT TERM. >> SO EVERY FOUR TIMES A YEAR, ERCOT REQUESTS BIDS FOR LIKE THE NEXT PERIOD, LIKE THE NEXT NEXT SEASON. >> SO IT'S A, IT'S A ROTATING ONGOING. CORRECT. IT'S NOT LIKE ACCEPT YOUR BID OR YOU DON'T. AND THEN YOU'RE OUT FOR A YEAR OR FOUR YEARS OR WHATEVER. >> NO, IT'S YOU HAVE THE OPPORTUNITY FOUR TIMES A YEAR TO SUBMIT BIDS. >> THANK YOU. >> MR. >> WHEN A CUSTOMER SUBMITS A BID TO PARTICIPATE IN THE PROGRAM, THEN DO WE GO OUT ON SITE AND, AND ACTUALLY INSPECT THEIR GENERATION AND THINGS LIKE THAT TO MAKE SURE THAT THEY'RE LIKELY ABLE TO MEET THE REQUIREMENTS SO NOBODY GETS IN TROUBLE? LIKE, HOW DO WE MAKE SURE WE STAY OUT OF TROUBLE? >> YEAH. SO THAT WOULD BE PART OF OUR VETTING UP FRONT IS TO, TO LOOK AT THEIR EQUIPMENT, TALK TO STAFF AND MAKE SURE THAT THEY'RE ABLE TO MEET THAT 25 MINUTE REQUIREMENT. AND, YOU KNOW, AND SOMETIMES I WILL SAY THAT TARGET HAS BACKUP GENERATION. SOMETIMES COMPANIES ARE JUST ABLE TO COMPLETELY GO OFFLINE AND, AND NOT SUPPLEMENT THAT WITH BACKUP GENERATION. SO IT WOULD BE UNIQUE TO EACH CUSTOMER. >> MR. RAINER. >> WOULD YOU PLEASE GO TO SLIDE TWO? SO THE ADVANTAGE FOR THIS IS WHAT AGAIN. >> SO THE OVERALL ADVANTAGE IS GRID STABILITY, RIGHT. AND SO YOU'RE YOU'RE ABLE TO REDUCE THAT LOAD. AND WHEREVER YOU'RE IT'S A COLLECTIVE OVER THE ERCOT MARKET, YOU'RE ABLE TO REDUCE THAT LOAD. BUT FOR A CUSTOMER, THEY'RE RECEIVING FINANCIAL INCENTIVE FOR BEING ABLE TO DO THAT. >> SO WHEN I THINK OF THIS, AND I MAY BE WRONG, BUT I'LL SAY IT, I'M THINKING, IS THIS SOMETHING THAT WILL AFFECT THE DATA CENTERS THAT WE HAVE? AND THE DATA CENTER DRIVE THAT'S COMING ALL OVER TEXAS? IS THIS A WAY, A PROGRAM THAT WILL HELP US HAVE SOME KIND OF CONTROL WITH ANY OF THIS? >> SO, SO THEY COULD PARTICIPATE? THERE'S OTHER PROGRAMS OUT THERE THAT MORE FIT THOSE PROFILES. I THINK THE I WROTE IT DOWN. THE CONTROL LOAD RESOURCE PROGRAM IS ONE THAT IS MORE FOR THAT SIZE AND THAT PROFILE OF WHAT THEIR ENERGY USE IS. >> SO IN A LAYMAN TERM. SO I LOOK AT THE DATA. IT COULD BE AN INDUSTRIAL TYPE OF USE AND TARGETS MORE OF THE COMMERCIAL TYPE. WOULD THAT BE CORRECT WITHOUT GETTING ANY. YEAH. >> IN ERCOT HAS A FEW PROGRAMS LIKE THIS DEPENDING ON WHAT THAT LOOKS LIKE. >> GREAT. IF I MAY, WOULD YOU GO TO SLIDE THREE? I'M INTRIGUED. IF THEY GO DARK, DOES THAT MEAN THE LIGHTS GO OUT AND WE JUST. IT'S A FREE FOR ALL TO SEE WHO GOES TO THE OUT THE FRONT DOOR WITHOUT HAVING TO PAY. I'M BEING FACETIOUS THERE, BUT IT JUST GOES DARK. IS THAT RIGHT? IS THAT WHAT THEY'RE. SOME CUSTOMERS MIGHT BE PREPARING FOR? >> SO THE THE CUSTOMER IN TARGET'S CASE WOULD GO TO BACKUP GENERATION. THEY WOULDN'T SEE ANY EFFECT ON THEIR STORE BECAUSE THEY CAN SUPPORT IT. BUT FOR US, WE WOULD SEE IT AS TARGET'S NOT USING ANY ELECTRICITY. >> SO THE DARK TERM IS, IS NOT AS SPECIFIC. TURN OUT THE LIGHTS AND WE JUST WAIT A COUPLE HOURS AND THEN TURN IT BACK ON. >> SOME SOME COMPANIES MAY BE ABLE TO DO THAT. THESE TARGET LOCATIONS, THEY WOULDN'T WANT, YOU KNOW, CUSTOMERS TO BE IN THERE AND THE LIGHTS TO JUST GO OUT. SO THEY WOULD GO TO BACKUP GENERATION. BUT IF YOU ARE A REFRIGERATING COMPANY, THEY MAY BE ABLE TO SUSTAIN THOSE TEMPERATURES, YOU KNOW, IN A, IN A REFRIGERATOR FOR A DURATION OF TIME. >> AND I APPRECIATE IT. AND I ASK THE QUESTION BECAUSE I'LL BE ASKED LATER, BECAUSE I LIVE IN A NEIGHBORHOOD THAT HAS THAT KIND OF MENTALITY. THE NEXT QUESTION I HAVE IS ON THE TARGETS. SO I'M ASSUMING THAT THEY'RE THEY WERE FAMILIAR WITH THIS TYPE OF PROCEDURE. >> CORRECT. >> HAVE YOU HAD WHAT'S THE RESPONSE OF ANYONE ELSE? >> SO THIS HASN'T BEEN GOING ON WHENEVER WE HAD IT MAYBE A DECADE AGO, NOBODY PARTICIPATED. WE HAD SOME WHO WERE INTERESTED BUT COULDN'T MEET THE CRITERIA. AND SO THIS WOULD START IT OUT SO THAT WE CAN PILOT IT WITH THESE TWO TARGET LOCATIONS, WORK OUT ANY KINKS ON OUR SIDE, AND THEN WE'D BE ABLE TO MARKET IT TO OTHER COMMERCIAL CUSTOMERS WHO KIND OF MEET THIS PROFILE. >> AND ABOUT 200 OF THEM. >> THERE'S 200 IN THAT. >> YEAH. >> BUT WE DON'T KNOW, OUT OF THOSE 200 WHO HAS BACKUP GENERATORS, WHO COULD MEET THE CRITERIA. >> BUT THAT'S WHERE THEY'LL HAVE TO GO CHECK AND SEE. >> RIGHT. >> GO AHEAD. COULD YOU GO TO SLIDE SEVEN? SO I'M INTRIGUED. THE MINIMUM $2,600 AND FOR ALL THIS DIDN'T GET $650 FOR ONE CUSTOMER. SO SO $650 IS NOTHING [00:35:01] TO SNEEZE AT. BUT. IS IT WORTH OUR TIME? >> SO THAT $650 RECOVERS OUR COSTS. AND SO THIS ISN'T A REVENUE STREAM FOR US. THIS WOULD JUST BE TO BETTER SUPPORT THE OVERALL STABILITY OF THE GRID. AND IT RECOVERS OUR COSTS. >> IS THAT $2,600? IS THAT LIKE PER MEGAWATT OR IS THAT PER MEGAWATT HOUR DELIVERED OR WATTS OR PER QUARTER? OR WHAT'S THE RATE OF PAYMENT THERE? >> AGAIN, I THINK TONY POINTED TO THE GENERAL MANAGER AGAIN, THAT 650 IS JUST KIND OF OUR ESTIMATE FOR THEM JUST TO PARTICIPATE IN THE PROGRAM, AND WHAT THE MINIMUM AMOUNT THAT WE WOULD BE IS JUST BASED ON WHAT OUR COST OF SERVICE WOULD BE TO, TO PROVIDE THIS. AND AGAIN, WHAT, WHAT STEWART ALSO MENTIONED WAS THAT, I MEAN, OVERALL, IT IS ABOUT RELIABILITY, BUT IN A FOUR HOUR EVENT, THAT'S $20,000 OF POWER THAT WE WON'T HAVE TO PURCHASE. THAT THEN GOES TO THE BENEFIT OF ALL OUR RATEPAYERS. AND THAT ONE MEGAWATT, I KNOW IT'S A SMALL AMOUNT. REMEMBER, WE HAVE A CURRENTLY ABOUT A 400 MEGAWATT PEAK LOAD. IT IS A SMALL PIECE, BUT AGAIN, THAT'S ONE LESS MEGAWATT THAT WE HAVE TO WORRY ABOUT BECAUSE THIS VENDOR SHUT DOWN. AND JUST FROM A PUBLIC PERCEPTION STANDPOINT, I THINK THE OTHER BENEFIT HERE FOR TARGET IS JUST BEING A GOOD CORPORATE CITIZEN, RIGHT? THEY SEE THAT, YOU KNOW, IF IF THERE'S ROTATING OUTAGES AND, AND THEIR STORE IS COMPLETELY LIT UP, YOU KNOW, THAT THAT'S SOMETHING THAT THEY WANT TO AVOID FROM A PUBLIC PERCEPTION STANDPOINT. SO I THINK IT'S ALSO A GOOD CORPORATE CITIZEN PARTICIPATION HERE. >> WELL, TYPICALLY THESE EVENTS WOULD BE DURING TIMES OF VERY HIGH PEAK USE. SO IT WOULD BE A HUGE BENEFIT TO ME TO HAVE SOME LOADS DROP OFF DURING THOSE PERIODS. >> THAT'S CORRECT. AND THIS IS BASED SO THAT $5,000 PER MEGAWATT HOUR THAT YOU SEE UP THERE, THAT'S THE CURRENT CAP. THAT'S THE MAXIMUM THAT ERCOT CAN CAN CHARGE. IS THAT RIGHT? YEAH THAT'S CORRECT. SO DURING YURI, THAT NUMBER WAS $9,000. RIGHT. SO AGAIN THAT'S BASED ON A VERY SIGNIFICANT EVENT. THERE'S NOT ENOUGH SUPPLY TO MEET DEMAND. ERCOT IS CONSIDERING, YOU KNOW, POTENTIAL ROTATING OUTAGES. THIS IS ONE TRIGGER THAT THEY HAVE ANOTHER TOOL IN THE TOOLBOX TO TRY TO LOWER THAT DEMAND, TO GET TO GET BACK TO EQUILIBRIUM WITH THE WITH SUPPLY. >> TARGET DOES THIS ACROSS THE COUNTRY. THIS ISN'T THEIR FIRST RODEO. >> CORRECT. TO YOUR POINT ABOUT, YOU KNOW, BEING A GOOD CORPORATE CITIZEN, ARE WE GOING TO BE PERFORMING ANY KIND OF PROMOTION TO THE 200 ELIGIBLE? IS THIS SOMETHING WE'RE GOING TO PUSH AND WE'RE GOING TO TRY TO TO TALK TO ALL 200, OR AT LEAST REACH OUT TO ALL 200 QUALIFYING COMPANIES AND SAY, HEY, THIS IS SOMETHING WE HAVE. >> AND YEAH, ABSOLUTELY. I THINK I THINK THAT'S KIND OF THE NEXT STEP IN THIS PROCESS. I MEAN, WE WANT TO MAKE SURE THAT WE FULLY VET THIS CUSTOMER OUT, THAT WE'RE ABLE TO DO AND MEET ALL THE REQUIREMENTS. YOU KNOW, AT SOME POINT, IF YOU ADD IF WE START ADDING A WHOLE BUNCH OF CUSTOMERS, THEN THAT'S GOING TO PUT A WHOLE DIFFERENT LEVEL OF, OF, OF LABOR IMPACT ON OUR ENERGY MANAGEMENT ORGANIZATION. BUT, YOU KNOW, AT THAT POINT, WE'LL BE LOOKING TO AUTOMATE THAT PROCESS, RIGHT? WHERE WE'RE, YOU KNOW, JUST LIKE ERCOT TODAY MAKES ONE PHONE CALL TO ALL THE SCS OR ALL THE TRANSMISSION SERVICE PROVIDERS, RIGHT ON WHEN LOAD SHEDDING HAPPENS. AND SO WE WOULD DO THE SAME THING HERE, RIGHT? BUT AT THIS POINT, THIS IS JUST ONE CUSTOMER. WE THINK WE CAN HANDLE IT WITH JUST ONE DIRECT PHONE CALL TO THE STORES AND HAVE THEM GO AHEAD AND MOVE TO THEIR BACKUP GENERATION. >> SO WE'LL HOW MANY HOURS OR DAYS A YEAR WOULD THE PROGRAM TYPICALLY BE ENGAGED? >> YEAH. >> JOSE, YOU WANT TO LET ME GET JOSE UP HERE REAL QUICK? >> GOOD MORNING, EXECUTIVE MANAGER. >> POWER SUPPLY FOR ME. SO TYPICALLY, YOU KNOW, THIS IS A SEASONAL ISSUE, RIGHT? AND SO THERE'S THERE'S BEEN A WHILE SINCE THIS HAS BEEN DEPLOYED. IT'S BEEN A LONG TIME, SEVERAL YEARS ACTUALLY. AND SO, SO YOU'LL GET THIS PAYMENT REGARDLESS OF WHETHER OR NOT YOU GET DEPLOYED. BUT TYPICAL DEPLOYMENT IN THE SUMMERTIME IS GOING TO BE AROUND FOUR HOURS, USUALLY AROUND, YOU KNOW, THE DUCK CURVE IS KIND OF WHERE WE START SEEING THAT SUPPLY WITH SOLAR COMING DOWN LOAD STILL MAINTAINING. SO ROUGHLY ABOUT FOUR, MAYBE FIVE HOURS AT THE MOST. >> AND SO 4 OR 5 HOURS IN A GIVEN DAY. AND, AND SO YOU SAID IT HASN'T BEEN DEPLOYED IN, IN YEARS. SO THESE ARE REALLY JUST OUR LIKE OUR EMERGENCY RESERVE. THAT'S CORRECT. YEAH. SO I GUESS WHAT MY, WHAT I WAS LEADING TO HERE WOULD BE AIR QUALITY IMPACTS. IF GENERATORS ARE RUNNING 40 DAYS A YEAR OR SOMETHING. BUT THIS IS MAYBE. >> IT FALLS UNDER. [00:40:04] >> THE TWO DAYS ONLY ON REALLY EMERGENCY DAYS. >> CORRECT. IT FALLS UNDER THE THE EPA RESTRICTIONS DURING EMERGENCY CONDITIONS. AND SO A LOT OF TIMES THOSE ARE EXEMPTED HOURS ANYWAY THROUGH THE STATE. >> OKAY. >> ONE MORE QUESTION, IF I MAY. I WAS INTRIGUED AND I DON'T REMEMBER THE SLIDE. SO YOU JUST HAVE TO GO BY WHAT YOU KNOW, IF IT GOES WITH IF WE GO BELOW 95%, IS THE ENTIRE PROGRAM TERMINATED FROM US? AND IF SO, IN YOUR BUSINESS PLANS AND SUCH, I THINK 95 IS PRETTY HIGH. WALK ME OFF THE LEDGE. >> SO SO NO, SO JUST PARTICIPATION IN THIS PROGRAM. SO WE COULD, WE WOULDN'T LOSE OUR, OUR OPERATING LICENSE OR ANYTHING LIKE THAT. IT WOULD JUST AFFECT OUR PARTICIPANTS FUTURE PARTICIPATION IN THE PROGRAM. AND GENERALLY THAT SUSPENSION WOULD BE FOR ONE CONTRACT TERM. SO, YOU KNOW, THE WINTER, SPRING, SUMMER OR FALL. AND THEN THEY WOULD, WE WOULD BASICALLY JUST HAVE TO PROVE THAT WE ARE ABLE TO PARTICIPATE MOVING FORWARD. SO IF WE HAVE ONE PROBLEM CUSTOMER WHO, WHO REPEATEDLY KNOCKS US OUT OF THE PROGRAM, THEN PROBABILITY IS THAT CUSTOMER WOULD WOULD BE SUSPENDED AND MAYBE WE COULD KEEP GOING, BUT WE WOULD JUST HAVE TO WORK WITH ERCOT ON THAT. >> SO OUR PROBATION, I'LL CALL IT TO SOFTEN IT UP SOME. IS THAT WOULD THAT BE A YEARLY OR BECAUSE YOU TALKED ABOUT SEASONAL OR IS IT RIGHT. >> IT WOULD BE ONE CONTRACT TERM. >> IS THAT A CONTRACT TERM IS YEARLY. >> IS THREE MONTHS. >> THAT'S WHAT I WAS WONDERING. SO IT'S A QUARTER THAT WE WOULD BE OKAY. THANK YOU. >> CORRECT. AND TO ANSWER YOUR QUESTION ABOUT THE LAST TIME IT WAS DEPLOYED, THAT WAS SUMMER 2023. WE HAD A COUPLE DAYS IN THERE. IF YOU'LL REMEMBER, IN AUGUST WHERE IT WAS STILL LIKE 115 DEGREES AT 8:00 AT NIGHT. AND SO THAT DEMAND WAS STILL HIGH, BUT THAT SOLAR WAS LOWERING AND THEN THE WIND STOPPED BLOWING. SO THAT'S THE LAST TIME THAT THEY DID IT SINCE I THINK IT'S SINCE 2011, IT'S ONLY BEEN DEPLOYED 18 TIMES. SO IT'S NOT LIKE IT'S A COMMON OCCURRENCE. OKAY. >> ANY OTHER QUESTIONS? SO I I'VE BEEN TALKING ABOUT DEMAND RESPONSE FOR YEARS UP HERE. I'M REALLY GLAD TO SEE WE'RE MOVING FORWARD WITH THIS. I THINK THIS DUAL BENEFIT, YOU KNOW, THE CUSTOMERS GET PAID TO BE RESPONSIVE AND ENGAGE AND HELP THE GRID. AND DME GETS A FEE TO RUN THE THING. BUT ALSO, IF WE'RE IN AN EMERGENCY, IF WE'RE IN A GRID, EMERGENCY PRICES ARE HIGH. THERE'S, YOU KNOW, WE'RE PROBABLY FACING FINANCIAL RISK. THAT'S WHEN WE DME FACES FINANCIAL RISK IS DURING JUST A FEW REALLY PEAK HOURS OF THE YEAR. SO IF OUR CUSTOMERS ARE HELPING THE GRID BY SHEDDING LOAD, THAT ALSO HELPS ALL OF DME RATEPAYERS BY LOWERING THE THE AMOUNT OF ENERGY WE NEED TO BUY OR ALLOWING US, IF WE HAVE EXCESS WIND OR SOLAR GENERATION TO SELL IT BACK AND SUPPORT THE REST OF THE GRID. SO TO ME, I THINK THIS IS A GREAT STEP. I DO THINK IT'S VERY IMPORTANT TO MARKET IT. WHILE 100 OF THOSE 200 CUSTOMERS HAVE NO CAPABILITY AT ALL, 50 OF THEM WOULD HAVE TO DO SOME WORK AND MIGHT NOT BE WORTH IT. BUT IF WE IF WE REACH OUT, WE MIGHT FIND ANOTHER 10 OR 20MW OF AVAILABLE RESPONSIVE LOAD AND THOSE CUSTOMERS GET A BENEFIT AND ALL OF RATEPAYERS GET A BENEFIT. >> ABSOLUTELY. >> DO YOU IS THERE ANY MORE GUIDANCE FOR STAFF? >> ALL RIGHT. WELL, THANK YOU. AS I MENTIONED, WE'LL BRING BACK AN ORDINANCE FOR YOUR CONSIDERATION. SO THE DIRECTION IS TO FOR DIRECTION. SO IF YOU COULD GIVE US YOUR DIRECTION. >> YOU WANT A MOTION. >> I THINK JUST. >> JUST DIRECTION. I'LL LEAVE IT TO CHAIR. >> THANK YOU, MR. RAYNER. >> SO TO CONCUR WITH THE CHAIR'S REMARKS. >> YES. I THINK THIS IS THIS IS A GREAT PROGRAM TO MOVE FORWARD WITH. I THINK THIS SHOULD BE TAKEN TO CITY COUNCIL. AND, YOU KNOW, NOT ONLY IMPLEMENT THIS PILOT PROGRAM, BUT ALSO PLAN FOR MARKETING AND REACHING OUT TO ALL OF THOSE POTENTIAL 200 PARTICIPANTS BECAUSE IT'S, IT'S A GREAT BENEFIT TO THEM. AND IT'S A GREAT BENEFIT TO DME AND DME RATEPAYERS. ALL RIGHT. >> THANK YOU. >> MR. CHAIRMAN. COULD I HAVE JUST ABOUT THREE MINUTES JUST TO TALK VERY QUICKLY ABOUT SOMETHING THAT THE DENTON ELECTRIC DME DID FOR CITIZENS THAT THEY NORMALLY DO, BUT I THINK THEY NEED TO HAVE A LITTLE PUBLIC KUDO. IF YOU WOULD ALLOW ME THE OPPORTUNITY. >> I SUPPOSE. SO I DON'T. >> IF THE COUNCIL. >> DID YOU CALL THAT? [00:45:08] >> NO, I CAN CALL. OKAY. UNDER CONCLUDING ITEMS. >> THANK YOU. SO TWO WEDNESDAYS AGO, DUE TO THE EXCESSIVE HEAT, A TRANSFORMER BLEW AND A PARTICULAR NEIGHBORHOOD. AND THE 220 CABLE ACTUALLY MELTED AND SLAG CAME DOWN ON THE GROUND. AND THE YARD OF THIS PARTICULAR PERSON CAUGHT ON FIRE. NEIGHBOR PUT IT OUT, CALLED THE FIRE DEPARTMENT. THEY CAME IN AND THEY WERE GOING TO HAVE THE UTILITIES TURNED OFF. BUT THE NEIGHBOR OF THAT PARTICULAR BURNT YARD SAID, I HAVE A CHILD THAT NEEDS ELECTRICITY BECAUSE OF MEDICAL NEEDS. FIRE DEPARTMENT WENT IN AND RECOGNIZED THAT, AND THEY CALLED DME, AND THIS WAS AROUND 6:00 AND ASKED THEM FOR IMMEDIATELY COME IN WITH A BUCKET TRUCK TO DO SOME WORK. THOSE TWO INDIVIDUALS THAT RESPONDED WERE ALREADY HEADING HOME AFTER WORKING, TURNED BACK AROUND AND SHOWED UP AT THAT HOUSE. AND IT TOOK 30 MINUTES, BUT THEY GOT IT ALL TAKEN CARE OF. IF YOU'D LIKE TO SEE EVIDENCE OF THAT, YOU CAN COME TO MY HOUSE. BECAUSE I WAS THE HOUSE THAT BURNED AND MY NEIGHBOR WAS THE ONE THAT WAS SAVED. BUT I WAS SO PLEASED AND PROUD HOW FAST. AND IT WAS JUST THE TWO EMPLOYEES WERE LIKE, WELL, OF COURSE, WHAT ELSE WOULD WE DO? THE CALL CAME OUT. THE FIRE DEPARTMENT SAID, SHOW UP AND YOU DID. AND IT'S NOT UNCOMMON, BUT IT'S UNCOMMON FOR MY STREET. AND I WANT TO THANK YOU VERY MUCH. AND THAT CONCLUDES, MR. CHAIRMAN. MY THOUGHTS ON THAT MATTER. WAS IT UNDER THREE MINUTES? GOLLY, I NEED TO RUN FOR OFFICE. * This transcript was compiled from uncorrected Closed Captioning.