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NPRR088

Summary

Title: Revision to 16.11.5, Monitoring of a Counter-Party’s Creditworthiness and Credit Exposure by ERCOT
Next Group:
Next Step:
Status: Approved on 02/19/2008
Effective Dates:
12/01/2010

or per the Nodal Protocol Transition Plan http://www.ercot.com/mktrules/protocols (03/01/08 Nodal Protocols Library)

Action

Date Gov Body Action Taken Next Steps
02/19/2008 BOARD Approved
02/07/2008 TAC Recommended for Approval Board consideration
01/17/2008 PRS Recommended for Approval
12/13/2007 PRS Recommended for Approval PRS Impact Analysis review
11/15/2007 PRS Deferred/Tabled Langauge consideration

Voting Record

Date Gov Body Motion Result
02/19/2008 BOARD Approved NPRR088 as recommended by TAC. Passed
02/07/2008 TAC To recommend approval of NPRR088 as recommended by PRS. Passed
01/17/2008 PRS Forward the Recommendation Report and IA to TAC for approval Passed
12/13/2007 PRS To recommend approval of NPRR088, as revised by Credit WG comments. Passed
11/15/2007 PRS To table NPRR088. Passed

Vote tallies here reflect individual votes, not the weight of the votes by market segment. Affirmative votes are not recorded in these vote tallies. For additional details on the voting record, please consult the Recommendation or Action Report, or the official vote tally if available, as posted in the key documents.

Background

Status: Approved
Date Posted: Oct 31, 2007
Sponsor: Reliant Energy
Urgent: No
Sections: 16.11.5
Description: The revision ensures that ERCOT will receive and accept as sufficient from the Counter-Party, financial statements of the Counter-Party or a guarantor if a guarantee is being provided for the purpose of determining the Counter-Party’s creditworthiness.
Reason: Section 16.11.5 requires a Counter-Party and its guarantor to provide unaudited quarterly and audited annual financial statements to ERCOT for creditworthiness monitoring. Bilateral credit practices typically only require the financial statements of either the contracting entity or the guarantor, as there is only one entity whose creditworthiness is relied upon. Counter-Parties that are subsidiaries of larger organizations generally do not prepare audited financial statements at the subsidiary level, and in many cases, financial statements at the subsidiary level are not prepared at all. This revision conforms the protocols to industry credit practice.

Key Documents

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