NOTICE DATE:  August 26, 2011

NOTICE TYPE:  W-A081611-03 Operations

SHORT DESCRIPTION:  Implementation details of RMR Agreements signed with NRG Texas Power LLC

INTENDED AUDIENCE:  ERCOT Market Participants

DAY AFFECTED:  August 26, 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.

NRG Texas Power LLC (NRG) has agreed to bring back SR Bertron Units 1 and 2 with approximately 292 MW of total capacity. Unit 2 was made ready early and will commence availability on August 26, 2011. Unit 1 is anticipated to commence availability on September 1, 2011.

ERCOT will take all necessary steps in accordance with the Protocols. ERCOT plans to minimize the use of these RMR Units in order to allow market solutions to meet demand needs first. In conditions where ERCOT indicates a capacity shortage with no available market Resources, then these RMR Resources will be committed under Reliability Unit Commitment (RUC) to ensure system reliability.

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].

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