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NPRR683

Summary

Title: Revision to Available Credit Limit Calculation
Next Group:
Next Step:
Status: Approved on 06/09/2015
Effective Dates:
02/07/2018

Action

Date Gov Body Action Taken Next Steps
06/09/2015 BOARD Approved
05/28/2015 TAC Recommended for Approval Board for consideration
04/16/2015 PRS Recommended for Approval TAC for consideration
03/12/2015 PRS Recommended for Approval PRS for Impact Analysis review

Voting Record

Date Gov Body Motion Result
06/09/2015 BOARD To approve NPRR683 as recommended by TAC in the 5/28/15 TAC Report Passed
05/28/2015 TAC To recommend approval of NPRR683 as recommended by PRS in the 4/16/15 PRS Report Passed
04/16/2015 PRS To endorse and forward to TAC the 3/12/15 PRS Report and Impact Analysis for NPRR683 with a recommended priority of 2015 and rank of 1300 Passed
03/12/2015 PRS To recommend approval of NPRR683 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: Feb 9, 2015
Sponsor: Luminant
Urgent: No
Sections: 16.11.4.6, 16.11.4.6.1, and 16.11.4.6.2
Description: This Nodal Protocol Revision Request (NPRR) revises the calculation of Available Credit Limit for the CRR Auction (ACLC) and Available Credit Limit for the DAM (ACLD) by replacing the existing 10% discount to the ACL based on the Counter-Party’s unused letter of credit amount with a 10% gross up of the sum of the Total Potential Exposure Any (TPEA) and the Total Potential Exposure Secured (TPES).
Reason: The current method unfairly penalizes Counter-Parties posting excess collateral and equally incents other Counter-Parties to post little to no excess collateral. The method proposed by this NPRR better aligns collateral requirements with actual credit risk and provides a level playing field for all Market Participants.

Key Documents