NOTICE DATE: March 21, 2024
NOTICE TYPE: M-B030124-03 Financial/Credit
SHORT DESCRIPTION: Updated Implementation Details of NPRR1165 - Independent Amount must be posted by all Counter-Parties as of April 1, 2024
INTENDED AUDIENCE: All Market Participants
DAYS AFFECTED: April 1, 2024
LONG DESCRIPTION: On April 1, 2024, Protocol language associated with Nodal Protocol Revision Request (NPRR) 1165, Revisions to Requirements of Providing Audited Financial Statements and Providing Independent Amount, will be implemented.
Under those changes effective April 1, 2024, all Counter-Parties will be required to post an Independent Amount. For a Counter-Party seeking authorization to participate or participating in all ERCOT Markets, the Independent Amount required will be $500,000; for all Counter-Parties seeking authorization to participate or participating in all ERCOT Markets except for the Congestion Revenue Rights Market, the Independent Amount required will be $200,000. Those amounts must be posted on or before April 1, 2024. For directions on how to post those amounts, please consult ERCOT Credit at ercotcredit@ercot.com Further, the financial statements of a Guarantor are no longer acceptable as of April 1, 2024 to prove creditworthiness; only those financial statements of the Counter-Party itself or the Ultimate Parent of the Counter-Party are sufficient. Therefore, for annual audited financial statements for 2023, which are due April 29, 2024, ERCOT will not be accepting financial statements of a Counter-Party’s Guarantor.
ACTION REQUIRED: All Counter-Parties should ensure that they have the correct Independent Amount posted by April 1, 2024.
ADDITIONAL INFORMATION: Pursuant to Nodal Protocol Section 21.6, Nodal Protocol Revision Implementation, ERCOT is required to provide notice as soon as practicable, but no later than ten days prior to implementation.
NPRR1165 and associated documents can be found on the ERCOT website.
CONTACT: If you have any questions, please contact ERCOT Credit at ercotcredit@ercot.com Market Participants may also contact their ERCOT Account Manager or ERCOT Client Services at (512) 248-3900 and ClientServices@ercot.com.
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