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NPRR620
Summary
| Title | Collateral Requirements for Counter-Parties with No Load or Generation |
|---|---|
| Next Group | |
| Next Step | |
| Status | Approved on 08/12/2014 |
| Effective Dates |
06/02/2019
|
Action
| Date | Gov Body | Action Taken | Next steps |
|---|---|---|---|
| 08/12/2014 | BOARD | Approved | |
| 06/26/2014 | TAC | Recommended for Approval | Board for consideration |
| 06/11/2014 | PRS | Recommended for Approval | TAC for consideration |
| 05/15/2014 | PRS | Recommended for Approval | PRS for Impact Analysis review. |
Voting Record
| Date | Gov Body | Motion | Result |
|---|---|---|---|
| 08/12/2014 | BOARD | To approve NPRR620 as recommended by TAC in the 6/26/14 TAC Report. | Passed |
| 06/26/2014 | TAC | To recommend approval of NPRR620 as recommended by PRS in the 6/11/14 PRS Report. | Passed |
| 06/11/2014 | PRS | To endorse and forward the 5/15/14 PRS Report as amended by the 5/21/14 ERCOT and 5/28/14 Credit WG comments and the Impact Analysis to TAC with a recommended priority of 2014 and rank of 1160. | Passed |
| 05/15/2014 | PRS | To recommend approval of NPRR620 as submitted. | Passed |
Background
| Status: | Approved |
|---|---|
| Date Posted: | Apr 30, 2014 |
| Sponsor: | ERCOT |
| Urgent: | No |
| Sections: | 16.11.4.1, 16.11.4.2, 16.11.4.3 |
| Description: | This Nodal Protocol Revision Request (NPRR) revises the calculation of credit exposure for Counter-Parties that represent neither Load nor generation by adjusting the M1 factor for forward exposure risk to reflect the fact that these Counter-Parties do not have Mass Transition risk, reducing the 40-day "look back" period for certain exposure components to 20 days and specifying a Minimum Current Exposure (MCE) for these Counter-Parties that is also used as the Initial Estimated Liability. |
| Reason: | The existing Protocol methodology for computing exposure does not reflect the market risk profile of trading Counter-Parties that represent neither Load nor generation. In addition, under existing calculations, in certain circumstances Counter-Parties with neither Load nor generation may not have an MCE while continuing to operate in the Market. |
Key Documents
Apr 30, 2014 - doc - 250.5 KB
May 2, 2014 - doc - 55 KB
May 19, 2014 - doc - 256 KB
May 21, 2014 - doc - 44 KB
May 28, 2014 - doc - 188.5 KB
Jun 16, 2014 - doc - 253 KB
Jun 30, 2014 - doc - 256 KB
Aug 13, 2014 - doc - 260.5 KB