Texas PUC Staff Issue Second Strawman On Proposed RMR Changes
January 16,2017
Staff of the Public Utility Commission of Texas have filed a second strawman proposal concerning proposed changes to rules governing Reliability Must-Run (RMR) service and Must-Run Alternatives (MRA)
Under the second strawman, ERCOT shall have discretion to evaluate the need for RMR service and the procurement of MRA resources and may decline to enter into an RMR or MRA agreement based on its evaluation, subject to board approval. ERCOT may consider the economic value of lost load in its evaluation.
All RMR or MRA agreements shall be subject to approval by the ERCOT governing board, the strawman provides, and any ERCOT decision to decline to enter an RMR or MRA agreement in response to an identified need shall also be subject to approval by the ERCOT governing board
Contributed capital expenditures made to a generation entity subject to RMR service or to an entity that owns or controls an MRA resource shall be refunded to ERCOT if that resource continues to participate in the energy or ancillary services markets after the termination of its RMR or MRA agreement with ERCOT, the strawman provides
ERCOT, through its stakeholder process, shall establish procedures and rules to implement the RMR and MRA process, the strawman provides
PUCT Staff invited comment on the second strawman as well as these specific questions
• Should eligible MRA resources be limited to demand-side resources (for example, those defined in P.U.C. Subst. R. §25.5(29)) and Emergency Response Service (ERS) resources?
• Should generators subject to RMR service be prohibited from submitting proposals to provide MRA resources to replace that RMR service?
• What other limitations, if any, should be imposed to ensure that entities do not receive windfall profits from providing MRA resources?