ERCOT’s Board of Directors has begun the year with one new member and a vacancy, leaving it with eight voting members.

The Texas grid operator Wednesday notified the market and membership that Zin Smati resigned from the board on Dec. 29 to comply with state rules after Boralex, a Quebec-based renewable operator where he is a director, completed the acquisition of a 50% ownership in five Texas wind farms.

According to the Public Utility Regulatory Act, “a person does not qualify for selection as a member of the governing body of [ERCOT] … if the person has a fiduciary duty or assets in the electricity market for that region.”

The ISO’s ethics agreement for directors also prohibits any direct business relationship with any market participant or its affiliates. Three of the wind farms are ERCOT market participants: Longhorn Wind Project, Spinning Spur Wind Three, and TX Hereford Wind.

Courtney Hjaltman, OPUC | © RTO Insider LLC

ERCOT said Smati indicated that he planned to remain on the Boralex board and that he resigned his position to address the conflict.

Smati fully disclosed in a timely manner all applicable information, the grid operator said.

The ERCOT Board Selection Committee will work with an outside consulting firm to fill the vacancy. The committee consists of three members selected by Texas’ governor, lieutenant governor, and the state House speaker.

Earlier in December, Gov. Greg Abbott appointed Courtney Hjaltman, his deputy legislative director, as CEO of the Office of Public Utility Counsel. The position, which expires Feb. 1 but will likely be extended, comes with a voting seat on the ERCOT board.

Hjaltman replaces Chris Ekoh, who was serving as interim CEO.

The ISO’s board consists of eight independent directors, OPUC’s CEO, the Public Utility Commission’s chair and ERCOT’s CEO. The latter two positions do not hold voting powers.