Market Information System Grid and Market Conditions

News Release

June 03, 2016

About the Reliability-Must-Run Agreement for Greens Bayou Unit 5

ERCOT has determined that Greens Bayou Unit 5 is needed for transmission system stability in the Houston region.

ERCOT has executed a Reliability Must-Run Agreement with the plant owner, NRG Texas Power, to keep the unit available this summer (through September 2016) and will ask the ERCOT Board of Directors in June to approve an extension of the agreement to keep the plant available during summer through June 2018. ERCOT expects the Houston Import Project will be completed in time for peak conditions later in the summer of 2018. The agreement does not include off-peak periods (October through May) because ERCOT planning studies do not indicate reliability violations in the Houston region during that period.

Payment for this service will be based on the eligible costs identified in ERCOT protocols as necessary to keep the plant available during these summer periods for this reliability purpose. ERCOT will begin evaluating possible lower-cost alternatives to the RMR agreement, including a request for proposals for demand response services to support transmission stability in the Houston region.

This is the first RMR agreement since 2011. Since 2002, ERCOT has executed 73 other RMR agreements, of which 69 have been for the purpose of transmission stability.

A revision to its protocols in 2011 also enabled ERCOT to enter RMR agreements to address short-term resource adequacy concerns. Four RMR agreements in 2011 returned mothballed units to service due to anticipated generation shortages during that summer’s peak demand period.

More about ERCOT Reliability-Must-Run Procedures

The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to more than 26 million Texas customers -- representing about 90 percent of the state’s electric load. As the independent system operator for the region, ERCOT schedules power on an electric grid that connects more than 46,500 miles of transmission lines and 710+ generation units. It also performs financial settlement for the competitive wholesale bulk-power market and administers retail switching for nearly 8 million premises in competitive choice areas.

ERCOT is a membership-based 501(c)(4) nonprofit corporation, governed by a board of directors and subject to oversight by the Public Utility Commission of Texas and the Texas Legislature. Its members include consumers, cooperatives, generators, power marketers, retail electric providers, investor-owned electric utilities, transmission and distribution providers and municipally owned electric utilities.