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TITLE 16ECONOMIC REGULATION
PART 2PUBLIC UTILITY COMMISSION OF TEXAS
CHAPTER 25SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
SUBCHAPTER SWHOLESALE MARKETS
RULE §25.502Pricing Safeguards in Markets Operated by the Electric Reliability Council of Texas

  (5) Approval of RMR and MRA service agreements. All recommendations by ERCOT staff to enter into an RMR or MRA service agreement will be subject to approval by the ERCOT governing board. If ERCOT identifies a reliability need for RMR or MRA service but recommends against entering into an RMR or MRA service agreement, ERCOT staff's recommendation will be subject to approval by the ERCOT governing board. In its request for governing board approval, ERCOT staff must present information that justifies its recommendation.

  (6) Refund of payments for capital expenditures. A resource entity that owns or controls a resource providing RMR or MRA service must refund payments for capital expenditures made by ERCOT in connection with the RMR or MRA service agreement if the resource participates in the energy or ancillary service markets at any time following the termination of the agreement. ERCOT may require less than the entire original amount of capital expenditures to be refunded to reflect the depreciation of capital over time.

  (7) Implementation. ERCOT, through its stakeholder process, must establish protocols and procedures to implement this subsection.

(f) Noncompetitive constraints. ERCOT, through its stakeholder process, must develop protocols to mitigate the price effects of congestion on noncompetitive constraints.

  (1) The protocols must specify a method by which noncompetitive constraints may be distinguished from competitive constraints.

  (2) Competitive constraints and noncompetitive constraints must be designated annually prior to the corresponding auction of annual congestion revenue rights. A constraint may be redesignated on an interim basis.

  (3) The protocols must be designed to ensure that a noncompetitive constraint will not be treated as a competitive constraint.


Source Note: The provisions of this §25.502 adopted to be effective January 9, 2005, 29 TexReg 12166; amended to be effective September 13, 2006, 31 TexReg 7317; amended to be effective August 12, 2010, 35 TexReg 6823; amended to be effective January 1, 2018, 42 TexReg 5671; amended to be effective December 5, 2019, 44 TexReg 7376

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