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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

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 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

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