ERCOT Enters RMR Agreement With Plant Through 2018

ERCOT notified market participants that on June 2, 2016, it executed a Standard Form Reliability Must-Run Agreement with NRG Texas Power LLC.

The agreement requires NRG to make its Greens Bayou Unit 5 (GBY_GBY_5) available to provide 371 MW of capacity for use upon request by ERCOT for all hours during the months of July through September 2016, June through September 2017, and June 2018.

The agreement requires ERCOT to pay NRG a standby payment of $3,185 per hour during the term of the agreement.

The start date of the agreement is June 1, 2016, and the stop date is June 30, 2018, for a total duration of 25 months. Because the term of the agreement exceeds one year in duration, the agreement is subject to approval by the ERCOT Board of Directors. ERCOT will request such approval at the Board’s next meeting on June 14, 2016. If the ERCOT Board does not approve the June 30, 2018 stop date, the stop date of the agreement will be May 31, 2017.

As required by Protocols Section 3.14.1.4, ERCOT will begin evaluating the availability of cost-effective alternatives to this RMR agreement and will provide the results of this evaluation in a report to the ERCOT Board of Directors within 90 days of the execution of this agreement.