NOTICE DATE: February 13, 2021
NOTICE TYPE: M-B021321-02 Financial/Credit
SHORT DESCRIPTION: Revisions to RTLF Adjustment Factor
INTENDED AUDIENCE: All Counter-Parties
DAYS AFFECTED: February 13, 2021 until further notice
LONG DESCRIPTION: Total Potential Exposure (TPE) determines the amount of Financial Security a Counter-Party (CP) must provide for its market activity. On a daily basis, ERCOT monitors and calculates each CP’s TPE. The Real-Time Liability Forward (RTLF) component of TPE provides an estimate of Real-Time market liability. RTLF includes an adjustment factor, rtlfp. The adjustment factor is currently 150%.
ERCOT has determined that the current rtlfp being used to calculate TPE during this cold weather event does not adequately reflect the financial risk created by CPs. Paragraph (3) of Protocol 18.104.22.168, Determination of Total Potential Exposure for a Counter-Party, provides that ERCOT may modify TPE for CPs to adequately match financial risk. Accordingly, this Market Notice serves to notify CPs that ERCOT will be modifying rtlfp to a value of 100%, beginning today and until further notice.
Please review the Estimated Aggregate Liability (EAL) Summary Report for the recalculated RTLF.
CONTACT: If you have any questions, please send an email to ERCOTcredit@ercot.com or 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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