ERCOT RMR Contract Status Report Presented To The ERCOT Board Of Directors December 17, 2002 Sam Jones, COO

RMR Contract Recommendations

Estimated Costs

Checklist For The Board ERCOT staff reports to the Board that for every RMR contract proposed for January - March on the previous pages: 1.The generation resource owner has provided a complete application for RMR status 2.The generation resource owner has provided a sworn attestation supporting its claim of pending plant closure 3.ERCOT has received all data requested from the applicant necessary to evaluate the need for and provisions of the RMR agreement 4.The RMR agreement that will be signed is consistent with the ERCOT Protocols

Checklist For The Board (Continued) 5. ERCOT performed the following steps in the evaluation of the need for and provisions of the RMR agreement a.Each potential RMR unit was evaluated against a set of reasonable alternatives b.The time frame for need of the RMR unit was determined c.The type of reliability concern was identified-voltage, thermal- - d.Available alternatives were evaluated – redispatch, remedial action schemes, special protection schemes –Load response is not currently an option as the specification for this service has not been developed Where applicable, the amount of load that could be affected was also estimated