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NPRR519
Summary
| Title | Exemption of ERS-Only QSEs from Collateral and Capitalization Requirements |
|---|---|
| Next Group | |
| Next Step | |
| Status | Approved on 09/17/2013 |
| Effective Dates |
06/02/2019
|
Action
| Date | Gov Body | Action Taken | Next steps |
|---|---|---|---|
| 09/17/2013 | BOARD | Approved | |
| 07/02/2013 | TAC | Recommended for Approval | ERCOT Board Consideration |
| 06/20/2013 | PRS | Recommended for Approval | TAC Consideration |
| 05/16/2013 | PRS | Recommended for Approval | PRS IA Review |
| 02/21/2013 | PRS | Deferred/Tabled | PRS Language Consideration |
Voting Record
| Date | Gov Body | Motion | Result |
|---|---|---|---|
| 09/17/2013 | BOARD | Approved NPRR519 as recommended by TAC in the 7/2/13 TAC Report. | Passed |
| 07/02/2013 | TAC | To recommend approval of NPRR519 as recommended by PRS in the 6/20/13 PRS Report | Passed |
| 06/20/2013 | PRS | To endorse and and forward the 5/16/13 PRS Report and revised Impact Analysis for NPRR519 to TAC with a recommended priority of 2014 and rank of 970 | Passed |
| 05/16/2013 | PRS | To recommend approval of NPRR519 as amended by the 4/15/13 ERCOT comments | Passed |
| 02/21/2013 | PRS | To table NPRR519 and to refer the issue to WMS and the Credit Work Group (Credit WG) | Passed |
Background
| Status: | Approved |
|---|---|
| Date Posted: | Feb 6, 2013 |
| Sponsor: | ERCOT |
| Urgent: | No |
| Sections: | 16.2.1, 16.17 |
| Description: | This Nodal Protocol Revision Request (NPRR) exempts those Qualified Scheduling Entities (QSEs) that represent only Emergency Response Service (ERS) Resources and that do not participate in the Day-Ahead Market (DAM), Real-Time Market (RTM) and Congestion Revenue Right (CRR) markets ("ERS-only QSEs") from the collateral and financial statement reporting requirements in Section 16.11, Financial Security for Counter-Parties, and from each of the various requirements in Section 16.16, Additional Counter-Party Qualification Requirements, including those relating to capitalization, certification, and the verification of a risk management framework. Upon notifying ERCOT of its election to move to ERS-only status, ERCOT would verify that the QSE meets the relevant requirements, including having a Total Potential Exposure (TPE) of zero, before authorizing this designation. If a QSE wishes to terminate its ERS-only status in order to participate in other ERCOT markets, it must provide advance written notification to ERCOT and must demonstrate compliance with the relevant collateral and capitalization requirements before receiving approval to terminate. |
| Reason: | The collateral, capitalization, and various other related requirements in Sections 16.11 and 16.16 should not apply to ERS-only QSEs because their participation in ERS does not expose ERCOT to any significant risk of default. Unlike participation in the RTM, DAM or CRR market, participation by a QSE in ERS typically results only in a one-way transaction—a payment from ERCOT to the QSE based on (1) the offer accepted by ERCOT prior to the ERS Standard Contract Term and (2) the QSE’s performance and availability during the ERS Standard Contract Term. Because ERS QSEs do not typically owe sums to ERCOT, those measures designed to reduce financial risk exposure of ordinary Counter-Parties are unnecessary in the context of ERS. ERS QSEs would be obligated to pay ERCOT only in the limited circumstance of an overpayment identified in a resettlement of ERS. In that case, ERCOT would require limited collateralization of any exposure until the overpayment is repaid but would not require compliance with capitalization and reporting requirements. |
Key Documents
Feb 6, 2013 - doc - 71.5 KB
Feb 6, 2013 - doc - 54.5 KB
Feb 25, 2013 - doc - 78.5 KB
Mar 14, 2013 - doc - 222.5 KB
Mar 14, 2013 - doc - 40 KB
Mar 26, 2013 - doc - 62.5 KB
Apr 11, 2013 - doc - 34.5 KB
Apr 11, 2013 - doc - 42 KB
Apr 15, 2013 - doc - 62.5 KB
Apr 16, 2013 - doc - 40 KB
Apr 25, 2013 - doc - 62.5 KB
May 9, 2013 - doc - 63 KB
May 20, 2013 - doc - 88.5 KB
Jun 13, 2013 - doc - 56 KB
Jun 24, 2013 - doc - 89.5 KB
Jul 3, 2013 - doc - 92.5 KB
Sep 17, 2013 - doc - 93.5 KB