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NPRR1067

Summary

Title: Market Entry Qualifications, Continued Participation Requirements, and Credit Risk Assessment
Next Group: PRS
Next Step: Language Consideration
Status: Pending

Action

Date Gov Body Action Taken Next Steps
02/11/2021 PRS Deferred/Tabled Language Consideration

Voting Record

Date Gov Body Motion Result
02/11/2021 PRS to table NPRR1067 and refer the issue to WMS 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: Pending
Date Posted: Jan 27, 2021
Sponsor: ERCOT
Urgent: No
Sections: 1.3.1.1, 16.1.2, (new), 16.2.1, 16.2.1.1 (new) 16.2.1.1, 16.2.2, 16.2.2.2, 16.2.2.3, 16.2.3.2, 16.8.1, 16.8.1.1 (new), 16.8.2, 16.8.2.2, 16.8.2.3, 16.8.3.1, 16.11, 16.11.1, 16.11.1.1 (new) ,16.11.1.2 (new), 16.11.1.2.1 (new), 16.11.2 (new), 16.11.2, 16.11.3, 16.11.4, 16.11.4.1, 16.11.4.2, 16.11.4.3, 16.11.4.3.1, 16.11.4.3.2, 16.11.4.3.3, 16.11.4.4 (delete), 16.11.5, 16.11.6, 16.11.6.1, 16.11.6.1.1, 16.11.6.1.2, 16.11.6.1.3, 16.11.6.1.4, 16.11.6.1.5, 16.11.6.1.6, 16.11.6.2, 16.11.6.2.1, 16.11.6.2.2, 16.11.6.2.3, 16.11.6.2.4, 16.11.6.2.5, 16.11.6.2.6, 16.11.6.2.7, 16.11.7, 16.11.8, Section 23 Form A Section 23 Form G, ERCOT Fee Schedule
Description: 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.
Reason: Addresses current operational issues; Market efficiencies or enhancements

Key Documents

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