The Texas Public Commission honored interim ERCOT CEO Brad Jones’ tenure last week, showering him with praise, political recognition, the Lone Star Flag that flew over the State Capitol in his honor and his second standing ovation of the week.
“I cannot, on behalf of all the people of this agency, ERCOT and the state of Texas, thank you enough for being willing to step up and take what has to be one of the toughest jobs in the state in a time of true crisis,” PUC Chair Peter Lake said during the commission’s Oct. 6 open meeting.
Jones was pulled out of retirement to lead ERCOT on an interim basis two months after the February 2021 winter storm that brought the Texas grid within minutes of a total collapse. The PUC first asked him to serve in a consulting role before he was asked to replace Bill Magness, who was fired in the storm’s wake. (See ERCOT Board Chooses Jones as Interim CEO.)
What Jones hoped would only take a few months lasted more than a year before ERCOT’s Board of Directors found a permanent CEO in Pablo Vegas. In the meantime, Jones focused on improving the grid operator’s credibility. He guided ERCOT through two summers dotted with conservation measures — setting a new record demand peak of 79.8 GW last July — and ensured staff implemented winterization measures to reduce the chances of another disaster.
“It was a very tough, tough spot to be in. You handled it confidently with poise and composure,” Lake said. “A lot of tough decisions, a lot of first-time moves, unprecedented actions and then getting through this record-breaking summer. So, thank you again for not only being willing to do the job, but doing it so well under such extraordinarily tough circumstances. You got a big retirement smile on your face, and you’ve earned it”
Commissioner Will McAdams recalled that Jones only requested $1 for his salary when he was asked to take over at ERCOT.
“I think you were willing to do it for free, but we wouldn’t let you, and there was nobody else around that would step up to take such a very extraordinary difficult position,” said Commissioner Lori Cobos, who sat on the board at the time.
“In my mind, there was only one person that was capable of coming in and helping,” Commissioner Jimmy Glotfelty told Jones, who spent more than 30 years in the sector, including a stint as ERCOT’s COO. “I’m sure everybody who’s been around this town for a long time, who’s been in the power sector and coming to the PUC, said, ‘Brad Jones has to step up and do this.’ It was a daunting task, but it comes pretty naturally to you. You know this system frontwards and backwards, and I think all Texans have benefited from your knowledge.”
Jones thanked the commissioners for their comments, saying the PUC was “extraordinary” during the last year and a half, providing leadership and support to he and ERCOT.
“I wanted to make sure that you all knew what each of you meant to us, the collaborative nature, the conversations that we’ve had about numerous topics. It’s been helpful to us in setting our targets, but it’s also been helpful in having your support and driving some of this change in the last year and a half,” Jones said.
“And when I say the commission, I don’t want to leave out the staff,” he said. “I’ve watched the staff work extraordinarily hard over the last year and a half to make very quick changes on pathways that we’d never used before to get reliability in place quickly and to do that in a way that had not been done ever before. The staff has been fantastic with us and working closely with us.”
Jones also thanked the State Legislature for the laws passed after the winter storm and Gov. Greg Abbott for his support. In turn, Jones was presented with resolutions from both houses of the legislature and a statement of recognition from Abbott.
Finally, McAdams pushed Jones on his immediate plans after he winds up a transition period with Vegas on Oct. 31.
“He is going on a vacation, and he needs to say that publicly,” McAdams said.
“Yeah, now that I’m finished at ERCOT, I’m going to Disney World. …
“All I can say is, ‘Wow, what a time to be coming back into Texas,’ with what’s going on in the market and what’s going on in the economy. I can’t remember a more exciting time to be in this industry,” he said.
Sierra Club Efficiency Petition Rejected
In business matters, the PUC rejected the Sierra Club’s petition for a rulemaking related to energy efficiency (53971).
The commission said Sierra’s proposal would significantly change peak demand reduction and energy efficiency goals, increase cost caps for consumers and utility investment in low-income programs, adjust performance bonuses, and remove barriers to program disclosure.
However, it also said there is no room on its current rulemaking calendar to accommodate the environmental organization’s proposal.
Lake has tasked Commissioner Kathleen Jackson with directing the PUC’s energy-efficiency efforts. A workshop has been scheduled for Oct. 18 to discuss an implementation plan.