NOTICE DATE:  February 20, 2020

NOTICE TYPE:  W-A022020-01 Settlements/Financial/Credit

SHORT DESCRIPTION:  Notification of Miscellaneous Invoice for Interest Payments on Cash Collateral

INTENDED AUDIENCE:  Counter-Parties (Settlements, Treasury, Credit, and Accounts Payable personnel)

DAYS AFFECTED:  February 20-21, 2020

LONG DESCRIPTION:  ERCOT has issued miscellaneous invoices that contain the interest accrued on Cash Collateral for the year 2019 for Counter-Parties (CPs) that had Cash Collateral posted with ERCOT in accordance with Protocol Section 16.11.3(1)(d), Alternative Means of Satisfying ERCOT Creditworthiness Requirements.

The interest payout will be distributed on February 21, 2020 in the following manner:

• CPs that are due less than $50.00 will receive credit to their respective prepay and/or Cash Collateral accounts, as disclosed in the CP’s Available Credit Limit (ACL) Summary Report, which can be found on the ERCOT Market Information System (MIS); and
• CPs that are due $50.00 or more will receive a Fed-Wire for interest due unless the CP uses its prepay or Cash Collateral accounts for all of its ERCOT invoices, in which case the interest will be paid to the CP’s respective prepay and/or Cash Collateral account.

ERCOT will report interest payments on IRS Form 1099.

Cash Collateral is invested in accordance with the ERCOT Investment Corporate Standard as approved by the ERCOT Finance & Audit Committee.

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.

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