NOTICE DATE:  September 1, 2011



NOTICE TYPE:  W-A081611-04 Operations



SHORT DESCRIPTION:  Update to implementation details of RMR Agreements signed with NRG Texas Power LLC



INTENDED AUDIENCE:  ERCOT Market Participants



DAY AFFECTED:  September 1, 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 (City of Garland and NRG Texas Power LLC) 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) had agreed to bring back SR Bertron Units 1 and 2. SR Bertron Unit 2 became available for RMR Service on August 26, 2011 with a capacity of 174 MW.   However, due to mechanical issues encountered while making SR Bertron Unit 1 ready for RMR Service, ERCOT has decided not to bring back Unit 1 as an RMR Unit since it would take additional time and costs to get it to full operational status.  As such, NRG and ERCOT have mutually agreed to terminate the RMR Agreement for SR Bertron Unit 1.  Pursuant to the RMR Agreement, NRG may recover Eligible Costs accrued prior to termination.



Also, attached to this Notice is the Frequently Asked Questions collected from the RMR conference call.



ADDITIONAL INFORMATION:  ERCOT has posted the RMR Agreements 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]>.



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