News Release

    September 19, 2016

    About ERCOT's decision regarding Must-Run Alternative proposals

    ERCOT recently completed reviewing alternatives to the Reliability Must-Run (RMR) agreement it entered with NRG Texas Power in June for Greens Bayou Unit 5. Under the existing RMR agreement, the unit must remain available through June 2018 in case it is needed to support transmission system reliability under certain critical operating conditions.

    During the review of Must-Run Alternatives (MRA), ERCOT did not receive offers that would adequately meet the reliability need served by the Greens Bayou 5 unit. Of the eligible offers received, there was insufficient capacity offered to fulfill the criteria set forth in the request for proposals.

    The RMR agreement for the 371-MW Greens Bayou Unit 5 addresses specific reliability concerns on the Singleton-to-Zenith transmission line serving the Houston area. Under the agreement, the unit will remain available during summer peak demand periods in case the unavailability of other transmission and generation facilities in that area result in a critical reliability concern. When the Houston Import Project is energized in summer 2018, ERCOT does not anticipate this issue to continue to be a concern.

    The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to 24 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 570+ generation units. It also performs financial settlement for the competitive wholesale bulk-power market and administers retail switching for 7 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.