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 andsubmitted 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 organization's board annually reviews and determines ceo compensation. As part of its review of ceo compensation for 2022, the board reviewed a compensation survey developed by a compensation consulting firm. The board's compensation decision was reflected in board meeting minutes and a board resolution.”

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

“In 2023, texas re received $17,155,278 from ero assessments. Pursuant to section 215(c) of the federal power act, the federal energy regulatory commission (ferc) has certified the north american electric reliabilit 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. The agreement was extended for another five-year term effective january 1, 2021.”