ERCOT Terminates RMR Agreement

ERCOT announced in a market notice that it has terminated the Reliability Must-Run (RMR) agreement with NRG Energy's Greens Bayou Unit 5

On March 29, 2016, ERCOT had received a Notification of Suspension of Operations (NSO) for NRG Texas Power LLC's (Greens Bayou Unit 5)

On May 27, 2016, pursuant to paragraph (5) of ERCOT Protocol Section 3.14.1.2, ERCOT issued a final assessment that Greens Bayou Unit 5 was needed for Reliability Must-Run (RMR) Service. On June 14, 2016, the ERCOT Board of Directors approved an RMR Agreement between ERCOT and NRG extending the term from June 1, 2016 through June 30, 2018.

On October 17, 2016, ERCOT completed additional studies for Greens Bayou Unit 5 incorporating newly approved Nodal Protocol Revision Request (NPRR) 788 criteria and confirmed that Greens Bayou Unit 5 was still needed to support ERCOT transmission system reliability until July 31, 2017 when the Colorado Bend II Generating Station was expected to become operational. The most recent Generator Interconnection Status (GIS) Report (January 2017), posted on the Resource Adequacy page of ERCOT’s website, indicates that the Colorado Bend II Generating Station is now expected to become operational in June 2017.

Based upon the October 2016 RMR studies, the January 2017 GIS Report and ERCOT’s judgment, ERCOT has provided NRG with notice of termination of the RMR Agreement for Greens Bayou Unit 5. Such notice was provided on February 27, 2017. Section 3(A)(2) of the RMR Agreement requires ninety (90) days’ advance written notice to NRG and therefore the RMR Agreement will terminate on Monday, May 29, 2017.