NOTICE DATE: April 24, 2024
NOTICE TYPE: M-042424-01 Financial/Credit
SHORT DESCRIPTION: Total potential exposure (TPE) calculations affected by ERS resettlements
INTENDED AUDIENCE: ERCOT Counter-Parties
DAYS AFFECTED: April 23, 2024
LONG DESCRIPTION: On April 22, 2024, ERCOT issued Market Notice W-A042224-01 Settlements: Resettlement for the ERS Standard Contract Term of June 01, 2023 – September 30, 2023. The respective true-up statements issued on April 22, 2024 included the ERS resettlements described in the above Market Notice for the Operating Day October 24, 2023. These ERS resettlement amounts flowed into the Unbilled True Up Amounts (UTA) component of Estimated Aggregate Liability (EAL), as reflected on the reports posted on April 23, 2024. Protocol Section 16.11.4.3(1), Determination of Counter-Party Estimated Aggregate Liability, allows exclusion of specific Operating Days to calculate Outstanding Unpaid Transactions (OUT). ERCOT’s practice has been to remove ERS final settlements from EAL due to it being captured in Unbilled Final Amounts (UFA), which is a result of extrapolation of these amounts over 55 days. Since the subject ERS settlement error is reported under UTA rather than UFA, it is causing even larger than normal impact on EAL due to it being extrapolated over 180 days instead of 55 days. Both UFA and UTA are components of OUT. Therefore, per Section 16.11.4.3(1) ERCOT has removed the affected Operating Day from the UTA/EAL calculations. This change took effect on reports published today, April 24, 2024.
ACTION REQUIRED: Counter-Parties should review their revised ACL Summary and TPE Summary reports published in the ERCOT MIS.
CONTACT: If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at ClientServices@ercot.com.
If you are receiving email from a public ERCOT distribution list that you no longer wish to receive, please follow this link in order to unsubscribe from this list: http://lists.ercot.com.
dg