Final Reliant Recommendation For Addressing The PUC's Concern on

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After corresponding with various members of the OWG, PIWG, ISONP, and
ERCOT, Reliant would like to propose the following change to compensation
for relieving local congestion:

When a resource is instructed to reduce its scheduled deliveries in order
to help relieve local Congestion and a Market Solution does not exist, the
compensation mechanism will always result in a zero sums gain to the QSE
for that instruction to the resource. Basically, whatever the QSE is
charged or credited due to resource imbalance due to such an instruction
will be offset by the OOME payment so that the net effect is always zero.

The recommended language changes to section 6.8.2.2 are attached.

Manny

(See attached file: Sect6Reliant1201.doc)

- Sect6Reliant1201.doc