NOTICE DATE: August 22, 2011 NOTICE TYPE: W-A081611-02 Operations SHORT DESCRIPTION: Implementation details of RMR Agreements signed with Garland Power & Light and NRG Texas Power LLC – Q&A conference call INTENDED AUDIENCE: ERCOT Market Participants DAY AFFECTED: August 24, 2011 LONG DESCRIPTION: As indicated at the August 16, 2011, ERCOT Board of Directors meeting, Electric Reliability Council of Texas, Inc. (ERCOT) has signed Reliability Must Run (RMR) Agreements with two Resource Entities to return Mothballed Generation Resources to service as soon as practicable to mitigate capacity shortages during the extreme heat and drought conditions impacting the ERCOT Region. The limited-term contracts ERCOT executed with the unit owners follow the Protocols’ RMR contract terms. ERCOT negotiated these agreements to provide a tool to prevent imminent emergency conditions caused by the unusually high temperatures and ongoing drought. Garland Power & Light (Garland) has agreed to bring back Spencer Units 4 and 5 with approximately 122 MW of total capacity, starting August 23 and 22 respectively. NRG Texas Power LLC (NRG) has agreed to bring back SR Bertron Units 1 and 2 with approximately 292 MW of total capacity beginning early September. All four units will be available through October 2011 to reduce the risk of rotating outages across the ERCOT region (agreements are posted on the ERCOT Market Information System (MIS), see Additional Information below). The four units will be called on only when necessary to avoid emergencies. Specifically, the units will not be offered into the Day Ahead Market. Rather, ERCOT Operations will determine whether to use these Resources as part of the Hourly Reliability Unit Commitment (HRUC) process based on system conditions and the ability to meet demand. In the event these Resources are committed and On-Line, the system will generate a proxy offer for the unit at the offer cap. The default offer will place the units among the last for economic dispatch, so as not to displace units that are On-Line and offering into the market. Please see the attached presentation for further details of the operation and settlement for these units. To address any questions related to these RMR Agreements, ERCOT will host a Question and Answer conference call on August 24, 2011. Details of the conference call are as follows: Date: Wednesday, August 24, 2011 Time: 09:00 – 10:00 CDT (Chicago, GMT-05:00) WebEx URL: https://ercot.webex.com/ercot/j.php?ED=154463232&UID=1043327427&PW=NMDdjMzNkZWQy&RT=MiM3 Meeting Number: 654 509 701 Meeting Password: Reliability0824 Dial in Number: 1-888-894-0587 Audio Passcode: 746 130 (press # after entering audio passcode) Press # when prompted for pin number. ACTION REQUIRED: Market Participants wanting more information on these RMR Agreements are encouraged to participate in the conference call on August 24, 2011. ADDITIONAL INFORMATION: ERCOT has posted the RMR Agreement for all RMR Units on the Market Information System (MIS) Secure Area on the Grid/Generation page under Reliability Must Run at https://mis.ercot.com/pps/tibco/mis/Pages/Grid+Information/Generation. An ERCOT digital certificate is required to access the MIS. Further details on these agreements can be found in an ERCOT news release at http://www.ercot.com/news/press_releases/show/424. A letter from ERCOT CEO Trip Doggett to PUC Chairman Nelson describing these RMR Agreements can be found at http://www.ercot.com/content/news/presentations/2011/CEO%20letter%20to%20PUC%20Chairman%20Nelson%20081611.pdf. 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]>. If you are receiving email from an ERCOT distribution list that you no longer wish to receive, please follow this link in order to unsubscribe from this list: http://lists.ercot.com. ############################ To unsubscribe from the NOTICE_CONTRACTS list: write to: mailto:[log in to unmask] or click the following link: http://lists.ercot.com/SCRIPTS/WA-ERCOT.EXE?SUBED1=NOTICE_CONTRACTS&A=1