Discussion of Reliability Must-Run Discussion of Reliability Must-Run (RMR) Protocol Provisions(RMR) Protocol Provisions

ERCOT Technical Advisory CommitteeERCOT Technical Advisory CommitteeNovember 6, 2002November 6, 2002

Discussion Purpose

Recent RMR contracts have raised questions– Amount of MW under RMR– Total cost of RMR contracts (~$350 MM annualized cost)– RMR costs are uplifted to all loads

TAC should review RMR Protocols– Determine if current contracts are within the Protocols– Determine if RMR contracts fit the intent of RMR– Determine if Protocol Revisions are needed– Determine what TAC’s role is in reviewing RMR plans and

contracts in the future

Issues Raised For TAC Review From Initial RMR Contracts

Data inputs to Standby Price

The heat rate benefit of a combined cycle plant that includes an RMR gas turbine

Analysis comparing RMR payments to transmission upgrades to resolve the local constraint

Estimated contract value, including energy deployments

RMR energy management and pricing

How are RMR units handled in the Day-Ahead balanced schedule process?

Minimum take provisions

ERCOT’s plan for 2003 – If report not done until 12/15/02 and existing RMR contracts expire 12/31/02,

when will ERCOT negotiate new contracts?– What is TAC’s role in evaluating ERCOT’s plan?