February 14, 2021

The Honorable David G. Huizenga

Acting Secretary of Energy
United States Department of Energy
1000 Independence Avenue, SW
Washington, DC 20585-1000

Re: Request for Emergency Order Under Section 202(c) of the Federal Power Act

Dear Acting Secretary Huizenga:

Pursuant to Section 202(c) of the Federal Power Act (“FPA”) 1 and part 205, subpart W, of
the regulations of the Department of Energy (“DOE”), 2 Electric Reliability Council of Texas, Inc.
(“ERCOT”) respectfully requests that the Secretary of Energy (“Secretary”) find that an electric
reliability emergency exists within the State of Texas that requires intervention by the Secretary,
in the form of a Section 202(c) emergency order, to preserve the reliability of the bulk electric
power system. ERCOT respectfully requests that the Secretary issue an order immediately,
effective February 14, 2021, authorizing all electric generating units located within the ERCOT
interconnection to operate up to their maximum generation output levels under the limited
circumstances described in this letter, notwithstanding air quality or other permit limitations.

In accordance with 10 CFR § 205.391(a), ERCOT requests that such order be entered
today, February 14, 2021, and remain effective through Friday, February 19, 2021. This duration
will ensure additional supply is available during a period in which ERCOT may continue to
experience unprecedented cold weather that has forced generation out of service.

Background

ERCOT is in the beginning stages of an unprecedented cold weather event brought on by

a rare, southward excursion of the jet stream into the South Central United States. Temperatures
for Sunday and Monday in many parts of Texas are forecasted to drop well below the lowest
temperatures experienced in several decades, and abnormally low temperatures are expected to
persist for several more days. This weather event will impact the entire ERCOT region and is
expected to result in record winter electricity demand that will exceed even ERCOT’s most
extreme seasonal load forecasts. ERCOT’s meteorologist has issued a weather report warning that
“this period will go down in Texas weather history as one of the most extreme events to ever

1
16 U.S.C § 824a(c).

2
10 C.F.R. Part 205, Subpart W.
Hon. David G. Huizenga
February 14, 2021
Page 2

impact the state.” 3 These unusually low temperatures, coupled with forecasts of heavy snowfall
and freezing rain, are also expected to have a negative impact on the availability of the generation
supply in the ERCOT region. In order to maintain the reliability of the broader electric system,
ERCOT believes that it may need to initiate rotating outages of as much as 4,000 MW on Sunday,
Monday, and Tuesday, and perhaps even later in the week.

ERCOT continues to work with affected utilities and generators to secure adequate supply
to meet expected energy and reserve requirements. ERCOT and affected utilities are also
encouraging maximum conservation measures by electricity customers. This morning, ERCOT
issued a system-wide conservation notice addressing the expected system emergency and
describing steps that homeowners and businesses can take to reduce system demand. ERCOT has
also worked with state agencies to take measures that maximize generation availability in Texas.
On Friday, the Railroad Commission of Texas adopted an emergency order increasing the priority
of gas supplies to ERCOT generators. Additionally, the Texas Commission on Environmental
Quality has indicated that it will provide enforcement discretion to generators in the ERCOT
region that may exceed state emissions requirements during emergency conditions. However,
these measures may not prove sufficient to avoid curtailments.

Relief Requested

ERCOT has been notified by three major generation owners that their generating units
will, or are likely to, encounter operating restrictions during the next several days due to various
emissions and other limits established in federal permits. These units are described in Exhibit A
to this letter. These units are subject to a number of environmental limitations that may restrict
output. ERCOT has been informed that the operation of gas-fired generators during the next few
days could be impacted by permit restrictions on nitrogen oxide and carbon monoxide emissions,
that coal-fired generators would be impacted by permit restrictions on emissions of sulfur dioxide,
nitrogen oxide, mercury, and carbon monoxide, and that generation fueled by distillate fuel oil
would be subject to various restrictions on operating duration and/or emissions. ERCOT has also
been informed that generators of various fuel types may be subject to wastewater release limits.
ERCOT is also aware that many other generators not included on this list are subject to similar
federal permit limits.

Because the output from all of the generators subject to these restrictions would help
mitigate the impact of rotating outages on Texas consumers during this extreme cold weather
event, ERCOT seeks an immediate order from DOE authorizing the provision of additional energy
from all generating units subject to emissions or other permit limitations. For clarity, this request
is not limited to those generating units identified in Exhibit A. This allowance would apply only
under the following limited circumstances:

• For any Generation Resource or Settlement Only Generator whose operator notifies
ERCOT that the unit is unable, or expected to be unable, to produce at its maximum output
due to an emissions or other limit in any federal environmental permit at any point before

3
http://www.ercot.com/about/weather (updated Feb. 12, 2021).
Hon. David G. Huizenga
February 14, 2021
Page 3

the end of the day on Friday, February 19, 2021, the unit will be allowed to exceed any
such limit only during any period for which ERCOT has declared an Energy Emergency
Alert (EEA) Level 2. 4 This incremental amount of restricted capacity would be offered at
a price no lower than $1,500/MWh. Once ERCOT declares that the EEA Level 2 event
has ended, the unit would be required to immediately return to operation within its
permitted limits. And at all other times, the unit would be required to operate within its
permitted limits.

• For any Generation Resource whose operator notifies ERCOT that the unit is offline or
would need to go offline at any point before the end of the day on Friday, February 19,
2021, due to an emissions limit in any federal environmental permit, ERCOT may issue a
Reliability Unit Commitment (RUC) instruction directing the unit operator to bring the unit
online, or to keep the unit online, and to operate at the minimum level at which the
Resource can be sustainably operated. If, at any time, operating the unit above this level
would exceed any permitted limit, then the unit would be restricted to operate at that
minimum level or the maximum output allowable under the permitted limit, whichever is
higher, except during a declared EEA Level 2 event, in which case the unit operator would
be allowed to make all of the unit’s capacity available to ERCOT for dispatch. This
incremental amount of restricted capacity would be offered at a price no lower than
$1,500/MWh. Once ERCOT declares that such an EEA Level 2 event has ended, the unit
would be required to immediately return to operating at a level below the higher of its
minimum operating level or the maximum output allowable under the permitted limit.

ERCOT does not lightly request this authorization. It understands the importance of the
environmental permit limits that are at issue. However, in ERCOT’s judgment, the loss of power
to homes and local businesses in the areas affected by curtailments presents a far greater risk to
public health and safety than the temporary exceedances of those permit limits that would be
allowed under the requested order. Authorizing resources in the ERCOT interconnection to
operate notwithstanding permit and other limitations will help mitigate shortages to meet expected
energy and reserve requirements.

This request is narrowly tailored to allow only the exceedances that are necessary to ensure
reliability over the next few days. Limiting the requested allowance to situations involving an
EEA Level 2 will ensure that the generation capacity subject to emissions limits and other permit
restrictions will be the last generation that is made available for dispatch to meet system demand,
thus minimizing any environmental impact to the greatest degree possible. Upon declaring an
EEA Level 2, ERCOT will deploy Emergency Response Service (ERS), a demand response

4
ERCOT’s issuance of an Energy Emergency Alert (EEA) is the final step ERCOT takes to avoid rotating outages
and grid collapse. See ERCOT Protocols § 6.5.9.4.2. There are three EEA levels that correspond to progressively
lower system frequencies or progressively lower levels of frequency-responsive reserves, known as Physical
Responsive Capacity (PRC). ERCOT must declare an EEA Level 1 when PRC falls below 2,300 MW and is not
projected to be recovered above 2,300 MW within 30 minutes. ERCOT may declare an EEA Level 2 when system
frequency falls below 59.91 Hz for 15 consecutive minutes or when PRC falls below 1,750 MW and is not projected
to be recovered above 1,750 MW within 30 minutes. ERCOT may declare an EEA Level 3 when system frequency
falls below 59.91 Hz for 20 consecutive minutes and must declare an EEA Level 3 when PRC cannot be maintained
above 1,430 MW or when system frequency falls below 59.91 Hz for 25 consecutive minutes.
Hon. David G. Huizenga
February 14, 2021
Page 4

service available only during an EEA. This ERS capacity will not be economically dispatched—
once the ERS capacity is deployed, it will offset the need for additional generation to the extent of
the demand reduction. This will reduce the need for ERCOT to rely on emissions-restricted
generation during an EEA Level 2 situation. Indeed, the only other resources that would be
available to ERCOT after ERS is deployed are Load Resources on under-frequency relays, which
must remain undeployed as long as possible to ensure sufficient frequency response in the event
of one or more unit trips. While reserving the deployment of this permit-restricted capacity to
EEA Level 2 should be sufficient to de-prioritize the dispatch of this generation, ERCOT would
also require these Resources, as a condition for the requested allowance, to price this incremental
capacity no lower than $1,500/MWh—the current RUC offer floor—which will provide a separate
mechanism to help ensure this capacity is deployed only when absolutely necessary.

Upon issuance of the requested order, ERCOT would issue a market notice to all ERCOT
market participants describing the conditions of this allowance. The notice would require that any
market participant that finds it necessary to utilize this allowance must notify ERCOT in advance
of doing so, so that ERCOT operators are aware the capacity is potentially available during an
EEA Level 2. This notification requirement would apply to all generators, including those
identified on Exhibit A. ERCOT commits to providing daily notice to DOE of each of those
generating units that has been designated to use this allowance. ERCOT is also prepared to provide
any additional information DOE may request. ERCOT commits to respond to any requests for
additional information on an expedited basis. ERCOT is also willing to coordinate the
documentation of exceedances of National Ambient Air Quality Standards (NAAQS) under the
Clean Air Act during this time period and produce this information to DOE.

ERCOT greatly appreciates DOE’s expedited consideration of this request. Please do not
hesitate to contact the undersigned if you have any questions or require additional information in
order to act on this request.

Respectfully,

/s/ Bill Magness

Bill Magness
President and Chief Executive Officer
[email protected]
512-248-6538

cc: Patricia A. Hoffmann, Acting Assistant Secretary, Office of Electricity, DOE

 Exhibit A
Units Identified as Likely to Encounter Permit Limitations

Winter Net Max  Winter Net Min 
Sustainable  Sustainable 
Unit name UNIT_CODE Fuel Type County Rating Rating
Coleto Unit 1 COLETO_COLETOG1 Subbituminous Coal GOLIAD 655 200
Decordova CT 1 DCSES_CT10 Natural Gas HOOD 88 60
Decordova CT 2 DCSES_CT20 Natural Gas HOOD 87 60
Decordova CT 3 DCSES_CT30 Natural Gas HOOD 86 60
Decordova CT 4 DCSES_CT40 Natural Gas HOOD 86 60
Ennis Power Unit 1 ETCCS_CC1 Natural Gas ELLIS 361 70
Forney Unit 1 FRNYPP_CC1 Natural Gas KAUFMAN 980 90
Forney Unit 2 FRNYPP_CC2 Natural Gas KAUFMAN 980 90
Graham Unit 1 GRSES_UNIT1 Natural Gas YOUNG 234 46
Graham Unit 2 GRSES_UNIT2 Natural Gas YOUNG 390 26
Hays Unit 1 HAYSEN_HAYSENG1 Natural Gas HAYS 239 150
Hays Unit 2 HAYSEN_HAYSENG2 Natural Gas HAYS 240 150
Hays Unit 3 HAYSEN_HAYSENG3 Natural Gas HAYS 242 150
Hays Unit 4 HAYSEN_HAYSENG4 Natural Gas HAYS 243 150
Lake Hubbard Unit 1 LHSES_UNIT1 Natural Gas DALLAS 392 56
Lake Hubbard Unit 2 LHSES_UNIT2A Natural Gas DALLAS 523 40
Lamar Unit 1 LPCCS_CC1 Natural Gas LAMAR 568 90
Lamar Unit 2 LPCCS_CC2 Natural Gas LAMAR 568 90
Martin Lake Unit 1 MLSES_UNIT1 Lignite RUSK 815 220
Martin Lake Unit 2 MLSES_UNIT2 Lignite RUSK 820 220
Martin Lake Unit 3 MLSES_UNIT3 Lignite RUSK 820 230
Midlothian Unit 1 MDANP_CT1 Natural Gas ELLIS 258 110
Midlothian Unit 2 MDANP_CT2 Natural Gas ELLIS 256 110
Midlothian Unit 3 MDANP_CT3 Natural Gas ELLIS 255 110
Midlothian Unit 4 MDANP_CT4 Natural Gas ELLIS 258 110
Midlothian Unit 5 MDANP_CT5 Natural Gas ELLIS 276 110
Midlothian Unit 6 MDANP_CT6 Natural Gas ELLIS 278 110
Morgan Creek CT 1 MGSES_CT1 Natural Gas MITCHELL 82 30
Morgan Creek CT 2 MGSES_CT2 Natural Gas MITCHELL 80 30
Morgan Creek CT 3 MGSES_CT3 Natural Gas MITCHELL 80 30
Morgan Creek CT 4 MGSES_CT4 Natural Gas MITCHELL 81 30
Morgan Creek CT 5 MGSES_CT5 Natural Gas MITCHELL 80 30
Morgan Creek CT 6 MGSES_CT6 Natural Gas MITCHELL 82 30
Oak Grove Unit 1 OGSES_UNIT1A Lignite ROBERTSON 855 348
Oak Grove Unit 2 OGSES_UNIT2 Lignite ROBERTSON 855 455
Odessa Unit 1 ECEC_G1 Natural Gas ECTOR 170.4 81.54
Odessa Unit 2 ECEC_G2 Natural Gas ECTOR 170.4 81.54
Permian Basin CT 1 PB2SES_CT1 Natural Gas WARD 79 41
Permian Basin CT 2 PB2SES_CT2 Natural Gas WARD 76 41
Permian Basin CT 3 PB2SES_CT3 Natural Gas WARD 78 41
Permian Basin CT 4 PB2SES_CT4 Natural Gas WARD 75 41
Permian Basin CT 5 PB2SES_CT5 Natural Gas WARD 79 41
Stryker Creek Unit 1 SCSES_UNIT1A Natural Gas CHEROKEE 167 55
Stryker Creek Unit 2 SCSES_UNIT2 Natural Gas CHEROKEE 502 35
Trinidad Unit 6 TRSES_UNIT6 Natural Gas HENDERSON 235 70
Wise County Power Unit 1 WCPP_CC1 Natural Gas WISE 825.6 85
 East Water Plant CL_EWP_30UNITS Distillate Fuel Oil HARRIS 15 0
 Lynchburg Pump Station LH_LYN_30UNITS Distillate Fuel Oil HARRIS 15 0
 Northeast Water Plant DSN_NEWP_10UNITS Distillate Fuel Oil HARRIS 5 0
 Southeast Water Plant SOE_SEWP_10UNITS Distillate Fuel Oil HARRIS 5 0
 Clear Lake City WWTP PHR_CLCWA_5UNITS Distillate Fuel Oil HARRIS 2.5 0
W A Parish 5 WAP_WAP_G5 Bituminous Coal FORT BEND 664 156
W A Parish 6 WAP_WAP_G6 Bituminous Coal FORT BEND 663 158
W A Parish 7 WAP_WAP_G7 Bituminous Coal FORT BEND 577 158

1
 Exhibit A
Units Identified as Likely to Encounter Permit Limitations

W A Parish 8 WAP_WAP_G8 Bituminous Coal FORT BEND 610 153

W A Parish 1 WAP_WAP_G1 Natural Gas FORT BEND 169 27
W A Parish 2 WAP_WAP_G2 Natural Gas FORT BEND 169 27
W A Parish 3 WAP_WAP_G3 Natural Gas FORT BEND 258 54
W A Parish 4 WAP_WAP_G4 Natural Gas FORT BEND 552 92
Limestone 1 LEG_LEG_G1 Lignite LIMESTONE 824 258
Limestone 2 LEG_LEG_G2 Lignite LIMESTONE 836 258
Cedar Bayou Unit 1 CBY_CBY_G1 Natural Gas CHAMBERS 745 85
Cedar Bayou Unit 2 CBY_CBY_G2 Natural Gas CHAMBERS 749 88
Cedar Bayou Unit 4 CBY4_CC1 Natural Gas CHAMBERS 532 112
Greens Bayou CTG 73 GBY_GBYGT73 Natural Gas HARRIS 65 30
Greens Bayou CTG 74 GBY_GBYGT74 Natural Gas HARRIS 65 30
Greens Bayou CTG 81 GBY_GBYGT81 Natural Gas HARRIS 65 30
Greens Bayou CTG 82 GBY_GBYGT82 Natural Gas HARRIS 50 30
Greens Bayou CTG 83 GBY_GBYGT83 Natural Gas HARRIS 65 30
Greens Bayou CTG 84 GBY_GBYGT84 Natural Gas HARRIS 65 30
TH Wharton CTG 1 THW_THWGT_1 Natural Gas HARRIS 16 5
TH Wharton CTG 31 THW_THWGT31 Natural Gas HARRIS 69 50
TH Wharton CTG 32 THW_THWGT32 Natural Gas HARRIS 69 50
TH Wharton CTG 33 THW_THWGT33 Natural Gas HARRIS 69 50
TH Wharton CTG 34 THW_THWGT34 Natural Gas HARRIS 69 50
TH Wharton CTG 41 THW_THWGT41 Natural Gas HARRIS 69 50
TH Wharton CTG 42 THW_THWGT42 Natural Gas HARRIS 69 50
TH Wharton CTG 43 THW_THWGT43 Natural Gas HARRIS 69 50
TH Wharton CTG 44 THW_THWGT44 Natural Gas HARRIS 69 50
TH Wharton CTG 51 THW_THWGT51 Natural Gas HARRIS 65 61
TH Wharton CTG 52 THW_THWGT52 Natural Gas HARRIS 65 61
TH Wharton CTG 53 THW_THWGT53 Natural Gas HARRIS 65 61
TH Wharton CTG 54 THW_THWGT54 Natural Gas HARRIS 65 61
TH Wharton CTG 55 THW_THWGT55 Natural Gas HARRIS 65 61
TH Wharton CTG 56 THW_THWGT56 Natural Gas HARRIS 65 61
San Jacinto CTG 1 SJS_SJS_G1 Natural Gas HARRIS 87 58
San Jacinto CTG 2 SJS_SJS_G2 Natural Gas HARRIS 87 58
Bosque Energy Center Block 1 BOSQUESW_CC1 Natural Gas BOSQUE 253.75 120.7
Bosque Energy Center Block 2 BOSQUESW_CC2 Natural Gas BOSQUE 567.59 110.03
Freestone Energy Center Block 2 FREC_CC1 Natural Gas FREESTONE 501.25 130.37
Freestone Energy Center Block 1 FREC_CC2 Natural Gas FREESTONE 501.89 125.3
Guadalupe Energy Center Block 1  GUADG_CC1 Natural Gas GUADALUPE 516 92
Baytown Energy Center  BTE_CC1 Natural Gas CHAMBERS 650.61 1
Channel Energy Center  CHE_CC1 Natural Gas HARRIS 693 1
Deer Park Energy Center DDPEC_CC1 Natural Gas HARRIS 1316 319.4
Pasadena Power Plant II MIN_RNPCOGEN Blast‐Furnace Gas HARRIS 12.3 0
Jack A. Fusco Energy Center BVE_CC1 Natural Gas FORT BEND 606 148
Texas City Power Plant TXCTY_CC1 Natural Gas GALVESTON 438.63 60.55
Corpus Christi Energy Center CCEC_CC1 Natural Gas NUECES 422 6
Hidalgo Energy Center  DUKE_CC1 Natural Gas HIDALGO 475 141
Magic Valley Generation Station NEDIN_CC1 Natural Gas HIDALGO 695.01 203.78