Proposed Bylaw Amendment Impact on ERCOT Affiliates

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This proposal seeks to amend existing bylaws to allow affiliates of electric utilities to become associate members in various market segments within ERCOT, fostering stakeholder engagement and expertise contribution. Affected entities include Lone Star, WETT, and CrossTexas, with practical implications and language adjustments outlined for improved governance structure.

  • ERCOT
  • Affiliate Members
  • Governance
  • Electric Utilities
  • Bylaw Amendment

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  1. Lone Star/NextEra Bylaw Proposal

  2. Basis and Intent of Proposed Bylaw Amendment Basis and Intent of Proposed Bylaw Amendment Typically, for affiliated entities under common corporate ownership, one company can be designated as a corporate member of ERCOT, and any other affiliate may registeras associate members in other segments Under the current bylaws, affiliates of transmission-only utilities are defined as T&D Entities and are only allowed to be associate members in the Investor-Owned Utility market segment. They are not eligible to join as associate members in other marketsegments. This proposed bylaw amendment would change the definition of T&D Entity to include retail electric utilitiesand their affiliates.

  3. Practical Impacts Entities impacted by this change would be affiliates of Lone Star, WETT, and CrossTexas. This would allow, for example, NextEra affiliates to become associate members inthe segments for which they have expertise tocontribute. They would only be allowed to hold seats on committees if elected by the corporate members of those segments governed by the rules outlined in Section 3 of the bylaws, and subject to the PUC-approved code of conduct. The proposed change maintains the underlying structure of the ERCOT governance structure and promotes stakeholder engagement to address the initiatives being discussed.

  4. Proposed Bylaw Amendment Language Proposed Bylaw Amendment Language 28. Transmission Transmission and Cooperative or Municipal that owns or controls transmission and/or distribution facilities including at least 200 pole miles of such facilities in the ERCOT Region or any entity that is a retail electric utility, as defined in PURA 37.001, operating in the ERCOT Region, or that is affiliated with a retail electric utility. and Distribution Distribution ( T&D ) ( T&D ) Entity Entity. Any entity that is an IOU,

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