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NPRR140

Summary

Title: Revision to CRR Obligation Margin Adder
Next Group:
Next Step:
Status: Approved on 01/20/2009
Effective Dates:
12/01/2010

or per the Nodal Protocol Transition Plan http://www.ercot.com/mktrules/protocols (02/01/09 Nodal Protocols Library)

Action

Date Gov Body Action Taken Next Steps
10/23/2008 PRS Deferred/Tabled PRS consideration
12/18/2008 PRS Recommended for Approval TAC consideration
11/20/2008 PRS Recommended for Approval PRS consider the Recommendation Report and IA
01/08/2009 TAC Recommended for Approval Board consideration
08/21/2008 PRS Referred PRS language consideration
01/20/2009 BOARD Approved

Voting Record

Date Gov Body Motion Result
10/23/2008 PRS To table NPRR140 until the November 20th PRS meeting. Passed
12/18/2008 PRS To endorse and forward the PRS Recommendation Report and Impact Analysis for NPRR140 to TAC. Passed
11/20/2008 PRS To recommend approval of NPRR140 as amended by ERCOT comments submitted on 11/19/08 and as revised by PRS. Passed
01/08/2009 TAC To recommend approval of NPRR140 as recommended by PRS and the initial values of the variables as recommended by the 10/23/08 WMS comments. Passed
08/21/2008 PRS To refer NPRR140 to the Transition Plan Task Force (TPTF). Passed
01/20/2009 BOARD To approve NPRR140 as recommended by TAC. 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: Jul 14, 2008
Sponsor: J. Aron
Urgent: No
Sections: 16.11.4.5, Determination of the Counter-Party Future Credit Exposure
Description: Revises the margin adder for Point-to-Point (PTP) Obligations to a value "X" to be determined by the subcommittee process.
Reason: Current margin adder is excessive given the level of risk provided by the market and is well in excess of margin requirements of other markets. For instance, a Congestion Revenue Right (CRR) that is purchased for $0.10/MW will be margined $10.00 in ERCOT ($87,600 annually). That comparable CRR would be margined approximately $0.23 in the New York Independent System Operator (NYISO) market and even less in the Midwest Independent System Operator (MISO) market.

Key Documents

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