||126.96.36.199, 16.1.2, (new), 16.2.1, 188.8.131.52 (new) 184.108.40.206, 16.2.2, 220.127.116.11, 18.104.22.168, 22.214.171.124, 16.8.1, 126.96.36.199 (new), 16.8.2, 188.8.131.52, 184.108.40.206, 220.127.116.11, 16.11, 16.11.1, 18.104.22.168 (new) ,22.214.171.124 (new), 126.96.36.199.1 (new), 16.11.2 (new), 16.11.2, 16.11.3, 16.11.4, 188.8.131.52, 184.108.40.206, 220.127.116.11, 18.104.22.168.1, 22.214.171.124.2, 126.96.36.199.3, 188.8.131.52 (delete), 16.11.5, 16.11.6, 184.108.40.206, 220.127.116.11.1, 18.104.22.168.2, 22.214.171.124.3, 126.96.36.199.4, 188.8.131.52.5, 184.108.40.206.6, 220.127.116.11, 18.104.22.168.1, 22.214.171.124.2, 126.96.36.199.3, 188.8.131.52.4, 184.108.40.206.5, 220.127.116.11.6, 18.104.22.168.7, 16.11.7, 16.11.8, Section 23 Form A Section 23 Form G, ERCOT Fee Schedule
||This Nodal Protocol Revision Request (NPRR) strengthens ERCOT’s market entry qualification and continued participation requirements for ERCOT Counter-Parties i.e., Qualified Scheduling Entities (QSEs) and Congestion Revenue Right Account Holders (CRRAHs), classifies information provided in the background check and credit scoring process as Protected Information, modifies application forms for QSEs and CRRAHs, and adds a new background check fee to the Fee Schedule.
This NPRR makes the following modifications to Section 16:
(1) Creates a new background check process as a part of ERCOT’s review of current and prospective Counter-Parties;
(2) Authorizes ERCOT to review current and prospective Counter-Parties to determine whether they pose an unreasonable credit risk to ERCOT;
(3) Authorizes ERCOT to determine creditworthiness based on an ERCOT-calculated credit score, and allows ERCOT to require certain actions be taken by a Counter-Party to remain creditworthy.
(4) Authorizes ERCOT to suspend a QSE or CRR Account Holder if it poses an unreasonable credit risk to; and
(5) Authorizes ERCOT to terminate the registration of a Counter-Party if it is deemed an unreasonable credit risk that cannot be remedied.
Further, this NPRR formalizes processes for ERCOT’s assessment of Counter-Party creditworthiness, and includes a credit scoring process to provide a consistent framework for review of creditworthiness. Credit scoring will incorporate assessment of both qualitative and quantitative (financial statement) information. In the event of a material change to creditworthiness, this NPRR also clarifies the means by which ERCOT may adjust Unsecured Credit Limits and/or Total Potential Exposure (TPE) to ensure that these adequately reflect the financial risk created by a Counter-Party’s activities under these Protocols.