Credit

Thu, Aug 26, 2021 10:20 AM

M-B082621-01 Collateral Requirements for NPRR1078


NOTICE DATE:  August 26, 2021

NOTICE TYPE:  M-B082621-01 Financial/Credit

SHORT DESCRIPTION:  Collateral Requirements for NPRR1078

INTENDED AUDIENCE:  ERCOT Counter-Parties

DAY AFFECTED:  September 8, 2021

LONG DESCRIPTION:  On August 20, 2021, Protocol language associated with Nodal Protocol Revision Request (NPRR) 1078, Clarification of Default Uplift, became effective.

NPRR1078 clarifies the definition of Potential Uplift (PUL) within the calculation of a Counter-Party’s “Total Potential Exposure Any” (TPEA).

On September 8, 2021, the PUL component of the TPEA calculation will be revised to capture of the sum of: (a) amounts expected to be uplifted within one year of the date of the calculation; and (b) the lesser of: (i) 25% of amounts expected to be uplifted beyond one year of the date of the calculation; or (ii) five years’ worth of uplift charges.

ACTION REQUIRED:  Counter-Parties can review the Total Potential Exposure (TPE) Summary Report (EMIL ID: NP16-664-SG, Report Type ID: 11174) on September 8 to view any modifications to the PUL.

ADDITIONAL INFORMATION: NPRR1078 and associated documents can be found on the ERCOT website.  

CONTACT:  If you have any questions, please contact your ERCOT Account Manager. You may also contact your ERCOT Account Manager or 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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