NOTICE DATE:  July 7, 2011
NOTICE TYPE:  W-A070711-01 Operations
SHORT DESCRIPTION:  TCEQ closely monitoring surface water diversions in the Brazos River Basin, including impacts on junior water right holders (Resource Entities).
INTENDED AUDIENCE:  QSEs with Resources, Resource Entities
DAY AFFECTED:  Not Applicable
LONG DESCRIPTION:  Texas continues to experience a severe drought across most of the ERCOT Region.  The Texas Commission on Environmental Quality (TCEQ) is the state agency responsible for enforcing water rights during drought conditions, which requires protecting senior surface water rights, and must take action in response to the senior priority call.
Recently, TCEQ issued a letter to water right holders advising them of permitted state surface water diversions in the Brazos River Basin.  (The following link will direct you to that correspondence: http://www.tceq.texas.gov/assets/public/agency/6-27-11muni-letter.pdf).  Although Resource Entities, as junior water right holders, are not currently required to suspend water diversion for power generation, TCEQ has advised ERCOT that the status may change in the near future if drought conditions continue.
ERCOT recommends that all Resource Entities evaluate existing water right permits and/or water contracts, assess current needs and practices, and consider alternatives for back-up water if water restrictions are put in place by TCEQ.
Additional drought information may be found on TCEQ's drought web page, located at:
http://www.tceq.texas.gov/response/drought or by contacting the TCEQ Drought Hotline at 1-800-447-2827.
ERCOT will continue to work with TCEQ in order to understand water restriction impacts on Generation Resources and the ERCOT Region and will communicate, as necessary, with follow-up Notices.

CONTACT:  If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at [log in to unmask]<mailto:[log in to unmask]>.
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