NOTICE DATE: August 15, 2012

NOTICE TYPE: M-E081512-01 NPRR

SHORT DESCRIPTION: Implementation details for NPRR442

INTENDED AUDIENCE: ERCOT Market Participants

DAY AFFECTED: August 29, 2012

LONG DESCRIPTION: On August 29, 2012, ERCOT will implement Nodal Protocol Revision Request (NPRR) 442, Energy Offer Curve Requirement for Generation Resources Providing Reliability Must-Run Service, which was approved by the ERCOT Board on May 15, 2012. NPRR442 adds the following requirements for Reliability Must-Run (RMR) Units that ERCOT has made available for commitment in accordance with Protocol Section 4.4.8, RMR Offers:

1. A requirement for the RMR Unit’s Energy Offer Curve to be set at the System-Wide Offer Cap (SWCAP) for Generation Resources providing RMR Service; and

2. A requirement for ERCOT to construct a Mitigated Offer Cap curve for Resources contracted for capacity pursuant to paragraph (2) of Section 6.5.1.1, ERCOT Control Area Authority, such that those Resources are not mitigated in Security-Constrained Economic Dispatch (SCED) and hence will be dispatched for local constraints only if the prices are higher than or equal to SWCAP.

ADDITIONAL INFORMATION: Pursuant to Protocol Section 21.6, Nodal Protocol Revision Implementation, ERCOT is required to provide notice as soon as practicable, but no later than ten days prior to implementation.

NPRR442 and associated documents can be found on the ERCOT website, under Market Rules, at http://www.ercot.com/mktrules/issues/nprr/426-450/442/index.

Information on upcoming releases can be found on the ERCOT Multi Year Project Priority List (PPL) at http://www.ercot.com/services/projects/.

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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