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NPRR458

Summary

Title: Establishment of ERCOT’s Central Counterparty Role
Next Group:
Next Step:
Status: Approved on 07/17/2012
Effective Dates:
01/01/2013

Action

Date Gov Body Action Taken Next Steps
07/17/2012 BOARD Approved
06/28/2012 TAC Recommended for Approval Board consideration
06/21/2012 PRS Recommended for Approval TAC consideration
05/17/2012 PRS Recommended for Approval PRS review IA
04/19/2012 PRS Deferred/Tabled PRS consideration

Voting Record

Date Gov Body Motion Result
07/17/2012 BOARD To approve NPRR458 as recommended by TAC in the 6/28/12 TAC Report with an effective date of 1/1/13. Passed
06/28/2012 TAC To recommend approval of NPRR458 as recommended by PRS in the 6/21/12 PRS Report. Passed
06/21/2012 PRS Tto endorse and forward the 5/17/12 PRS Report as amended by the 6/13/12 ERCOT comments and Impact Analysis for NPRR458 to TAC Passed
05/17/2012 PRS To recommend approval of NPRR458 as submitted. Passed
04/19/2012 PRS To table NPRR458 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: Approved
Date Posted: Apr 4, 2012
Sponsor: ERCOT
Urgent: No
Sections: 1.2, 2.1, .4.7.1, 4.4.7.1.1, 4.6.4, 6.5.7.5, 22A, 22B, 22D, 22F,
Description: This Nodal Protocol Revision Request (NPRR) establishes ERCOT as the central counterparty to all transactions in the ERCOT market, except those involving bilateral trades or self-arranged services. The changes introduced by this NPRR do not alter ERCOT’s functions as the Independent System Operator for the ERCOT Region. Rather, the changes are being proposed to establish mutuality between ERCOT and buyers and sellers in the ERCOT markets. The mutuality established by the proposed changes is intended to facilitate ERCOT’s ability to effectuate set-off in bankruptcy proceedings related to a Market Participant default. This, in turn, is intended to mitigate uplift to Market Participants that may result from monies owed to ERCOT that may not otherwise be recovered in such bankruptcy proceedings due to a lack of mutuality. Consistent with the establishment of ERCOT as the central counterparty, the NPRR deletes all references to ERCOT acting "as agent for" or "on behalf of" a Qualified Scheduling Entity (QSE) when it purchases energy or Ancillary Services.
Reason: Making ERCOT the central counterparty to all transactions in its markets enhances ERCOT’s ability, in the event of a Market Participant bankruptcy, to offset the amount of the Market Participant’s debt to ERCOT by any amount ERCOT owes the Market Participant, thereby reducing the amount of the debt that would otherwise be uplifted to the market.

Key Documents

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