Texas PUC Staff Issue Draft Proposal For Publication For Changes To Reliability Must-Run (RMR) Rules

Staff of the Public Utility Commission of Texas have filed a draft proposal for publication concerning changes to the Reliability Must-Run (RMR) service rules

The draft proposal for publication includes the following provisions:

1. Require notice of the intent to suspend operation of a generation resource 150 days prior to the intended suspension date [currently only 90 days notice is required], and require resource owners to submit a budget for providing RMR service with their notice. If ERCOT determines the resource is not needed for RMR service, the amendments permit the resource owner to suspend operation when the determination is made, subject to ERCOT approval.

2. Allow ERCOT to consider the economic value of the incremental reliability provided by an RMR or Must-Run Alternative (MRA) service agreement by incorporating the value of lost load into its analysis. The amendments allow ERCOT to decline to enter into an agreement based on its evaluation.

3. Require ERCOT governing-board approval of all RMR or MRA service agreements, as well as ERCOT's recommendation to forgo an agreement if a reliability need is present.

4. Require refund of payments made to resources to facilitate capital upgrades related to RMR or MRA service if those resources return to the market after the conclusion of the RMR or MRA service agreement.

Project 46369