(D) To ensure the ability to operate the RMR Unit consistent with Good Utility Practice; (vi) Reservation and transportation costs associated with firm fuel supplies not recovered under Section 6.6.6.2, RMR Payment for Energy; (vii) Property taxes and other taxes attributable to continuing to operate the RMR Unit during the term of the RMR Agreement; (viii) General fund transfers or similar direct expenses incurred by a Municipally Owned Utility (MOU) if it is required to pay a portion of its revenues to the municipality. If the RMR payment to the MOU is subject to such a requirement, this expense is an incremental cost directly associated with the RMR Unit; (ix) Costs based on a long-term service agreement (LTSA), provided that: (A) The maintenance costs to be included are incremental and consistent with the definitions of the costs within the scope of the RMR Agreement and these Protocols; (B) The cost of each component is specifically set by the LTSA; (C) ERCOT must be able to verify the incremental or variable maintenance costs ($/MWh) or ($/start) described in the LTSA; and (D) The LTSA is in effect during the term of the RMR Agreement and available to ERCOT for review; and (x) Non-fuel costs to return a mothballed RMR Unit to service provided that: (A) The costs were incurred between the effective date of the RMR Agreement and the termination date of the RMR Agreement; and (B) The costs do not include costs the RMR Unit would have incurred had it remained mothballed. (b) Examples of costs not included as Eligible Costs are: (i) Depreciation expense, return on equity, and debt and interest costs; (ii) Property taxes and other taxes not attributable to continuing to operate the RMR Unit; (iii) Income taxes of the RMR Unit owner or operator;
(D) To ensure the ability to operate the RMR Unit consistent with Good Utility Practice; (vi) Reservation and transportation costs associated with firm fuel supplies not recovered under Section 6.6.6.2, RMR Payment for Energy; (vii) Property taxes and other taxes attributable to continuing to operate the RMR Unit during the term of the RMR Agreement; (viii) General fund transfers or similar direct expenses incurred by a Municipally Owned Utility (MOU) if it is required to pay a portion of its revenues to the municipality. If the RMR payment to the MOU is subject to such a requirement, this expense is an incremental cost directly associated with the RMR Unit; (ix) Costs based on a long-term service agreement (LTSA), provided that: (A) The maintenance costs to be included are incremental and consistent with the definitions of the costs within the scope of the RMR Agreement and these Protocols; (B) The cost of each component is specifically set by the LTSA; (C) ERCOT must be able to verify the incremental or variable maintenance costs ($/MWh) or ($/start) described in the LTSA; and (D) The LTSA is in effect during the term of the RMR Agreement and available to ERCOT for review; and (x) Non-fuel costs to return a mothballed RMR Unit to service provided that: (A) The costs were incurred between the effective date of the RMR Agreement and the termination date of the RMR Agreement; and (B) The costs do not include costs the RMR Unit would have incurred had it remained mothballed. (b) Examples of costs not included as Eligible Costs are: (i) Depreciation expense, return on equity, and debt and interest costs; (ii) Property taxes and other taxes not attributable to continuing to operate the RMR Unit; (iii) Income taxes of the RMR Unit owner or operator;
03-080918_Nodal.docx