ERCOT sticks with reliability agreement for Greens Bayou Unit 5

After not being able to find a better alternative, ERCOT said Sept. 19 that it will stick with the reliability-must-run (RMR) agreement it has entered into the NRG Texas Greens Bayou Unit 5.

In June, ERCOT said the NRG Energy (NYSE:NRG) natural gas generating unit was needed for transmission system stability in the Houston region.

Under the existing RMR agreement, Unit 5 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 Greens Bayou 5.

“Of the eligible offers received, there was insufficient capacity offered to fulfill the criteria set forth in the request for proposals,” ERCOT said in a Sept. 19 news release.

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,” ERCOT said.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.