| (B) Specify how decisions concerning the qualification
of an individual or whether an individual has violated an ERCOT rule
or written ERCOT policy or procedure adopted under this section, or
commission rule, or applicable statute will be made.
(4) A decision concerning an individual or organization's
qualification or an individual's removal from the governing board
is subject to review by the commission.
(5) ERCOT shall notify the commissioners when a vacancy
occurs for an unaffiliated member of the governing board. ERCOT shall
provide information to the commissioners concerning the process for
selecting a new member, the candidates who have been identified and
their qualifications, any recommendation that will be made to the
governing board, and any other information requested by a commissioner.
The selection of an unaffiliated member of the governing board is
subject to approval by the commission. A person who is selected may
not serve as a member of the governing board until the commission
approves the selection. An unaffiliated board member whose three-year
term has expired shall, if reappointed by the ERCOT governing board,
cease serving as a member of the governing board until the reappointment
is approved by the commission. The commission may remove an unaffiliated
member of the governing board for cause. Compensation, per diem and
travel reimbursements to be paid to unaffiliated members of the governing
board shall be subject to commission review and approval. As used
in this paragraph, "cause" shall mean:
(A) a violation of a commission rule or applicable
statute, an ERCOT rule, or written ERCOT policy or procedure adopted
under this section;
(B) a director is indicted or charged with a felony
or is convicted of a misdemeanor involving moral turpitude;
(C) conduct inconsistent with a director's fiduciary
duty to ERCOT or that may reflect poorly upon the board or ERCOT;
or
(D) a fundamental disagreement with the commission
as to the policies or procedures that ERCOT shall adopt, in each case
as determined by the commission at its sole discretion.
(6) A member of the governing board of ERCOT appointed
after the effective date of this paragraph who serves as an unaffiliated
member may not represent a market participant before the governing
board of ERCOT, the ERCOT technical advisory committee, or any of
its subcommittees or working groups, for a period of one year after
the person ceases to serve as a member of the governing board.
(h) Chief executive officer. The appointment of the
chief executive officer of ERCOT is subject to commission approval.
ERCOT shall notify the commissioners when a vacancy occurs for the
chief executive officer. ERCOT shall provide information to the commissioners
concerning the process for selecting a new chief executive officer,
the candidates who have been identified and their qualifications,
any recommendation that will be made to the governing board, and any
other information requested by a commissioner. A person may not seek
the position of the ERCOT chief executive officer while serving as
a commissioner. Compensation to be paid to the ERCOT chief executive
officer shall be subject to commission review and approval.
(i) Required reports and other information. ERCOT shall
file with the commission the reports and provide the information required
by this subsection.
(1) The qualification criteria shall include:
(A) Definitions of the market sectors;
(B) Levels of activity in the electricity business
in the ERCOT region that an organization in a market sector must meet,
in order for a representative of the organization to serve as a member
of the governing board;
(C) Standards of good standing that an organization
must meet, in order for a representative of the organization to serve
as a member of the governing board; and
(D) Standards of good standing that an individual must
meet, in order for the individual to serve as a member of the governing
board.
(2) Operations report and plan. No later than January
15 of each year, ERCOT shall file an operations report and plan. The
commission may initiate a review of the plan, at its discretion. The
report and plan shall contain the following information:
(A) A copy of an independent audit of ERCOT's market
operation for the report year;
(B) A summary of key market operations statistics,
including prices and quantities of energy and capacity purchased in
the markets operated by ERCOT;
(C) A summary of key reliability statistics;
(D) A summary of transmission planning and generation
interconnection activities and the most recent report on capacity,
demand and reserves;
(E) A description of ERCOT's roles and responsibilities
within the electric market in Texas, including system reliability,
operation of energy and capacity markets, managing transmission congestion,
transmission planning and interconnection of new generating plants,
and a description of how ERCOT's roles and responsibilities relate
to the roles and responsibilities of the transmission and distribution
utilities and retail electric providers and to the North American
Electric Reliability Corporation and Texas Reliability Entity;
(F) A risk management plan that identifies any significant
risks to system reliability, the operation of ERCOT's energy and capacity
markets, its management of transmission congestion, and any other
risks that would significantly disrupt the sale and delivery of electricity
within the ERCOT region, and the measures that might be taken to mitigate
such risks;
(G) An emergency communications plan that describes
how ERCOT will communicate with the public, media, governmental entities,
and market participants concerning events that affect the bulk electric
system;
(H) An assessment of the reliability and adequacy of
the ERCOT system during extremely cold or extremely hot weather conditions,
or drought, for which purpose ERCOT has the right, upon reasonable
notice, to conduct generator site visits to review compliance with
weatherization plans and has the right to obtain from generators any
information concerning water supplies for generation purposes, including
contracts, water rights, and other information; and
(I) Identification of existing and potential transmission
constraints, and the need for additional transmission, generation
or demand response resources within the ERCOT region. The report shall
include projections of changes in demand, the capability of generation,
energy storage, and demand response resources, projected reserve margins,
alternatives for meeting system needs, and recommendations for meeting
system needs.
(3) Quarterly reports. ERCOT shall file quarterly reports
no later than 45 days after the end of each quarter, which shall include:
(A) Any internal audit reports that were produced during
the reporting quarter;
(B) A report on performance measures, as prescribed
by the commission;
(C) By account item as established in the fee-filing
package prescribed by the commission under §22.252 of this title
(relating to Procedures for Approval of ERCOT Fees and Rates) a report
of:
(i) ERCOT fees and other rates, funds allocated, funds
encumbered, and funds expended;
(ii) An explanation for expenditures deviating from
the original funding allocation for the particular account item;
(iii) For the report covering the fourth quarter of
ERCOT's fiscal year, a detailed explanation of how unexpended funds
will be expended in the subsequent year; and
(D) Any other information the commission may deem necessary.
(4) Emergency reports. If ERCOT management becomes
aware of any event or situation that could reasonably be anticipated
to adversely affect the reliability of the regional electric network;
the operation or competitiveness of the ERCOT market; ERCOT's performance
of activities related to the customer registration function; or the
public's confidence in the ERCOT market or in ERCOT's performance
of its duties, ERCOT management shall immediately notify the chairman
of the commission, or the chairman's designee, and the executive director
of the commission, or the executive director's designee, by telephone.
Additionally, ERCOT shall file a written report of the facts involved
by the end of the following business day after becoming aware of such
event or situation, unless the executive director specifies, in writing,
that the report may be delayed. The executive director may not authorize
a delay of more than 30 days for filing the required written report.
For good cause, the commission may grant further delays in filing
the required report. If it determines that additional reports are
necessary, the commission may establish a schedule for the filing
of additional reports after the initial written report by ERCOT. As
a part of any additional written report, ERCOT may be required to
fully explain the facts and to disclose any actions it has taken,
or will take, in order to prevent a recurrence of Cont'd... |
