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NPRR606

Summary

Title: Removal of Risk Management Verification Fee
Next Group:
Next Step:
Status: Approved on 06/10/2014
Effective Dates:
07/01/2014

Action

Date Gov Body Action Taken Next Steps
06/10/2014 BOARD Approved
05/29/2014 TAC Recommended for Approval ERCOT Board for consideration
05/15/2014 PRS Recommended for Approval TAC for consideration
04/10/2014 PRS Recommended for Approval PRS for Impact Analysis consideration

Voting Record

Date Gov Body Motion Result
06/10/2014 BOARD To approve as recommended by TAC in the 5/29/14 TAC Report Passed
05/29/2014 TAC To recommend approval as recommended by PRS in the 5/15/14 PRS Report. Passed
05/15/2014 PRS To endorse and forward the 4/10/14 PRS Report and Impact Analysis to TAC Passed
04/10/2014 PRS To recommend approval as submitted 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: Mar 17, 2014
Sponsor: ERCOT
Urgent: No
Sections: 16.16.3
Description: The Protocols currently allow ERCOT to assess a fee to eligible Counter-Parties for all or part of the costs of verifying the risk management framework as set forth in Section 16.16.3. The ability to charge and collect a separate fee to account for ERCOT’s risk management verification costs was added to the Protocols with NPRR 438, Additional Minimum Counter-Party Qualification Requirements, Including Risk Management Capability Requirements, which was approved by the ERCOT Board in July 2012. The Protocol language added by NPRR438, however, is not accompanied by a specific fee amount or approved methodology for calculating the fee. As noted in the Impact Analysis for NPRR438, system implementation costs for NPRR438 were immaterial, and the ongoing staffing costs related to oversight of risk management verification should not exceed one Full-Time Equivalent. Following discussion at the November 18, 2013 Finance and Audit Committee meeting, there was consensus that because the overall expenses related to risk management verification are minor, it would be more practical to eliminate the fee and include this expense within ERCOT’s Operations and Maintenance budget. This NPRR removes the language establishing the risk assessment fee from Section 16.16.3.
Reason: Administrative

Key Documents

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