Texas Reliability Entity Inc.

“Texas reliability entity, inc. Has the following six membership sectors under its bylaws: -system coordination and planning: an entity that is registered with nerc as a reliability coordinator (rc), balancing authority (ba), planning authority (pa), or resource planner (rp). -transmission and distribution: an entity that is registered with nerc as a transmission owner (to), transmission planner (tp), transmission service provider (tsp), distribution provider (dp), and/or transmission operator (top), and is not a cooperative or municipal utility. -cooperative utility: an entity that is (a) a corporation organized under chapter 161 of the texas utilities code or a predecessor statute to chapter 161 and operating under that chapter; or (b) a corporation organized as an electric cooperative in a state other than texas that has obtained a certificate of authority to conduct affairs in the state of texas; or (c) a cooperative association organized under tex. Rev. Civ. Stat. 1396-50.01 or a predecessor to that statute and operating under that statute that is registered with nerc for at least one reliability function. -municipal utility: an entity that owns or controls transmission or distribution facilities, owns or controls dispatchable generating facilities, or provides retail electric service and is a municipally owned utility as defined in pura section 11.003 and is registered with nerc for at least one reliability function. -generation: an entity that is registered with nerc as a generator owner (go) or generator operator (gop). -load serving and marketing: an entity that secures wholesale transmission service or is engaged in the activity of buying and selling of wholesale electric power in the ercot region on a physical or financial basis, or qualifies under any newly defined nerc reliability function for demand response. Membership in texas reliability entity, inc. Is voluntary and open to any entity that is a user, owner, or operator of the ercot region bps, and that qualifies to join one of the six membership sectors listed in texas re bylaws. Eligible entities must complete and submit a membership application and comply with the bylaws. Any person or entity that has a direct and material interest in the bps has a right to participate in the texas re standards development process, even if not a texas re member.”

“The members select and confirm the board members per the bylaws.”

“The form 990 is provided to the audit, governance and finance committee of the board for review prior to filing. The form is then signed and submitted for filing by the ceo and cfo.”

“The organization holds annual training regarding ethics and conflicts of interests, and requires each of its officers, other employees, and board members to renew his or her conflict of interest disclosures and sign or electronically confirm compliance with an ethics agreement annually.”

“The organizations board annually reviews and determines ceo compensation. As part of its review of ceo compensation for 2017, the board reviewed a compensation survey developed by a compensation consulting firm. The boards compensation decision was reflected in board meeting minutes and a board resolution.”

“The organization posts its governing documents on its public website. The organizations conflicts of interest policy and financial statements are available to the public on request.”

“In 2017, texas re received $9,595,256 from ero assessments and $1,059,945 from puct assessments. Pursuant to section 215(c) of the federal power act, the federal energy regulatory commission (ferc) has certified the north american electric reliability corporation (nerc), a section 501(c)(6) nonprofit organization, as an electric reliability organization (ero) to (1) develop and enforce reliability standards applicable to all owners, operators, and users of the bulk (electric) power system and (2) delegate any of these activities to regional entities. In 2010, texas re and nerc signed an amended and restated delegation agreement (delegation agreement) in which texas re was designated as the regional entity for the ercot region of texas. The agreement was extended for a five-year period beginning january 1, 2016. As the regional entity, texas re is responsible for developing and enforcing federal electric reliability standards in the ercot region. Pursuant to texas re's delegation agreement, assessments (ero assessments) to fund texas re's regional entity budget are allocated to electric market participants (load-serving entities or designees), based upon electric usage in the region, to pay for the costs of texas re's delegated functions. Texas re also has a contract with the public utility commission (puct), a state government agency, to act as reliability monitor in the ercot region. As reliability monitor, texas re monitors and reports to the puct regarding the compliance of electric market entities with state and regional electric reliability regulations (reliability-based ercot protocols and operating guides, and reliability-related provisions of the public utility regulatory act). Under the contract, the puct has directed the electric grid system operator, the electric reliability council of texas, inc. (ercot, a section 501(c)(4) nonprofit organization) to assess a system administration fee (puct assessments) to qualified scheduling entities serving load (load-serving entities) to pay the costs of the electric grid system operator and the reliability monitor. The purpose of texas re's activities is to confer a direct benefit upon the general public and not to provide an economic or physical benefit to ferc, nerc, the puct, or ercot. Enforcement of federal reliability standards and monitoring of compliance with state and regional laws and regulations is designed to prevent or reduce security threats, cyber-attacks, outages, and blackouts that could otherwise cause serious risk to public health, safety, and the economy. The general public indirectly pays the ero assessments and puct assessments because load-serving entities include the costs of these assessments in the total cost of electricity sold to the general public.”

“Texas reliability entity, inc. (texas re) is a texas non-profit corporation that is (a) one of the eight regional entities under a delegation agreement with north american electric reliability corporation (nerc)as the ero (electric reliability organization), which was approved by the federal energy regulatory commission (ferc) on may 6, 2010, for a five-year period beginning january 1, 2011 and renewed for another five-year period beginning january 1, 2016; and (b) the reliability monitor under an agreement with the public utility commission of texas (puct). Under its regional entity contract, texas re facilitates development of and oversees compliance with federal electric reliability standards by users, owners, and operators of the bulk power system (bps) in the electric reliability council of texas, inc. (ercot) region in texas. Under its reliability monitor contract, texas re monitors and reports to the puct regarding compliance with state reliability rules.”

“Texas reliability entity, inc. (texas re) is a texas non-profit corporation that is (a) one of the eight regional entities under a delegation agreement with north american electric reliability corporation (nerc)as the ero (electric reliability organization), which was approved by the federal energy regulatory commission (ferc) on may 6, 2010, for a five-year period beginning january 1, 2011 and renewed for another five-year period beginning january 1, 2016; and (b) the reliability monitor under an agreement with the public utility commission of texas (puct). Under its regional entity contract, texas re facilitates development of and oversees compliance with federal electric reliability standards by users, owners, and operators of the bulk power system (bps) in the electric reliability council of texas, inc. (ercot) region in texas. Under its reliability monitor contract, texas re monitors and reports to the puct regarding compliance with state reliability rules.”

“Texas re lessens the burdens of government in several ways. Texas re's delegation agreement with nerc provides that nerc delegates to texas re certain of the responsibilities delegated by ferc to nerc (as the certified electric reliability organization) under section 215 of the federal power act. These activities include monitoring and enforcement of compliance with mandatory electric reliability standards and facilitating the development of new or modified federal electric reliability standards. The monitoring, enforcement, and implementation or modification of standards is designed to help prevent or reduce outages, blackouts, security threats, and cyber attacks on the electric grid that could otherwise cause serious risk to human health, safety, and the economy.”