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NPRR639

Summary

Title: Correction to Minimum Current Exposure
Next Group:
Next Step:
Status: Approved on 12/09/2014
Effective Dates:
06/13/2015

Action

Date Gov Body Action Taken Next Steps
12/09/2014 BOARD Approved
11/20/2014 TAC Recommended for Approval Board for consideration
11/06/2014 PRS Recommended for Approval TAC for consideration
10/09/2014 PRS Recommended for Approval PRS for IA review
08/14/2014 PRS Deferred/Tabled PRS for consideration

Voting Record

Date Gov Body Motion Result
12/09/2014 BOARD To approved NPRR639 as recommended by TAC in the 11/20/14 TAC Report. Passed
11/20/2014 TAC To recommend approval of NPRR639 as recommended by PRS in the 11/6/14 PRS Report. Passed
11/06/2014 PRS To endorse and forward to TAC the 10/9/14 PRS Report and Impact Analysis for NPRR639 with a recommended priority of 2015 and a rank of 1195. Passed
10/09/2014 PRS To recommend approval of NPRR639 as amended by the 10/6/14 ERCOT comments. Passed
08/14/2014 PRS To table NPRR639 and refer the issue to the Credit Work Group (Credit WG). 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: Jul 3, 2014
Sponsor: Reliant Energy Retail Services
Urgent: No
Sections: 16.11.4.1
Description: The Minimum Current Exposure (MCE) calculation, which is part of the Total Potential Exposure (TPE) credit evaluation, fails to recognize net purchases of firm physical power, which is a crucial and widely utilized means to fulfill Load serving obligations. Not recognizing net purchases of firm physical power causes the MCE to inaccurately overstate the actual credit risk posed to the market and unfairly penalizes Market Participants who prudently hedge their Load positions.
Reason: Addresses current operational issues Market efficiencies or enhancements

Key Documents

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