To recommend approval of NPRR1112 as recommended by TAC in the 4/13/22 TAC Report as amended by the 3/18/22 ERCOT comments; and the 12/22/21 Impact Analysis; with a priority of 2022 and rank of 3630 and a proposed effective date of upon system implementation and October 1, 2023
This Nodal Protocol Revision Request (NPRR) eliminates Unsecured Credit Limits. Unsecured Credit Limits are offset against Total Potential Exposure Any (TPEA) and thereby reduce the Financial Security available to offset potential future default uplift amounts. Although Unsecured Credit Limits are deleted in this NPRR, acceptable guarantors, which currently require an Unsecured Credit Limit, may still be used for provision of financial statements and determination of compliance with minimum capital requirements. In addition, consistent with provisions for Securitziation Default Charge escrow deposits, this NPRR clarifies that letters of credit used for Financial Security must be drawn on a U.S. domestic bank or a domestic office of a foreign bank.