PRR744

Title:	Revision to 16.2.8, Monitoring of Creditworthiness by ERCOT
Next Group:
Next Step:
Status:	Approved on 01/15/2008
Related Issue:	NPRR088

Date	Gov Body		Next Steps
01/15/2008	Board of Directors	Approved
01/03/2008	TAC	Recommended for Approval	Board consideration
12/13/2007	PRS	Recommended for Approval	TAC consideration
11/15/2007	PRS	Deferred/Tabled	PRS consideration
11/15/2007	PRS		PRS consideration

Date	Gov Body	Motion	Result	Against	Abstentions
01/15/2008	Board of Directors	Approve PRR744 as recommended by TAC	Passed	0	0
01/03/2008	TAC	To recommend approval of PRR744.	Passed	0	0
12/13/2007	PRS	To recommend approval of PRR744 as revised by Credit WG comments.	Passed	1 MOU	2 IREP, Coop
11/15/2007	PRS	To table PRR744 until its December meeting.	Passed		1 MOU

Status:	Approved
Date Posted:	10/31/2007
Sponsor:	Reliant Energy
Urgent:	Yes
Sections:	16.2.8
Description:	The revision ensures that ERCOT will receive and accept as sufficient from the QSE, financial statements of the QSE or a guarantor if a guarantee is being provided for the purpose of determining the QSE’s creditworthiness.
Reason:	Section 16.2.8 requires a QSE and its guarantor to provide unaudited quarterly and audited annual financial statements to ERCOT for creditworthiness monitoring. Bilateral credit practices typically only require the financial statements of either the contracting entity or the guarantor, as there is only one entity whose creditworthiness is relied upon. QSEs that are subsidiaries of larger organizations generally do not prepare audited financial statements at the subsidiary level, and in many cases, financial statements at the subsidiary level are not prepared at all. This revision conforms the protocols to industry credit practice.