“ERCOT board nixes RMR energy price hike”
The Electric Reliability Council of Texas (ERCOT) Board of Directors recently denied an appeal of a rule change that would have sharply increased the price to be paid for energy from a reliability-must-run unit in the Houston area. At issue was Nodal Protocol Revision Request 784, which would address the mitigated offer caps for RMR units.
The protocol revision request resulted from ERCOT’s contracting for NRG Texas’ Greens Bayou 5 natural gas-fired generator to operate on an RMR basis for the summer months, to cope with a transmission constraint in the northwest area of the Houston Region.
T&K attorney Phillip Oldham, who advocated for ERCOT’s Technical Advisory Committee against the NPRR 784 appeal, said that in the Greens Bayou 5 situation, it is in a noncompetitive constraint, so other area generators would face mitigated offer caps as well. “We are not talking about massive price reversals,” Oldham said.
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