NOTICE  DATE: February 19, 2026

NOTICE TYPE: M-A021926-01 NPRR

SHORT DESCRIPTION: Implementation Details of NPRR1277, Revisions to EAL Formula

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED: March 2, 2026

LONG DESCRIPTION: On March 2, 2026, Protocol language associated with Nodal Protocol Revision Request (NPRR) 1277, Revisions to EAL Formula, will be implemented.

NPRR1277 makes the following changes.

Calculation changes:

1. The Minimum Current Exposure (MCE) component of Total Potential Exposure (TPE) calculation (ERCOT Protocol Section 16.11.4.1, Determination of Total Potential Exposure for a Counter-Party) will be updated to increase the number of days from 1 day to 2 days for load Counter-Parties.

2. The Estimated Aggregate Liability (EAL) component of Total Potential Exposure (TPE) calculation (ERCOT Protocol Section 16.11.4.3, Determination of Counter-Party Estimated Aggregate Liability) will be updated as:

• Applying the Real-Time Forward Adjustment Factor (RFAF) against the respective days' Real-Time Liability Estimated (RTLE) and then taking the max over the lookback period; and
• Introducing seasonal variability in the look-back period as it is applied for RTLE: 40 days from May 16 through Sep 15 (summer months) and 20 days from Sep 16 through May 15 (non-summer months). The look-back period does not change for traders.
• Look-back period for the URTA will remain at 40 days for non-traders and 20 days for traders.

Report changes:

1. Estimated Aggregate Liability (EAL) Detail Report (EMIL ID: NP16-669-SG, Report Type ID: 11179) (ERCOT Protocol Section 16.11.4.7, Credit Monitoring and Management Reports) will be updated as below:

• EALQ (EAL for Counter-Party representing either Load or Generation) Summary section:
  • Update column name from RFAF*MAXRTLEQ to MAXRFAFRTLEQ
  • Update Max(IELQ,RFAF*MAXRTLEQ,RTLFQ)+DFAF*DALEQ column name to Max(IELQ,MAXRFAFRTLEQ,RTLFQ)+DFAF*DALEQ
• EALT (EAL for Counter-Party not representing either Load or Generation) Summary section:
  • Update column name from RFAF*MAXRTLET to MAXRFAFRTLET
  • Update Max(RFAF*MAXRTLET,RTLFT)+DFAF*DALET column name to Max(MAXRFAFRTLET,RTLFT)+DFAF*DALET
• RTLE, URTA and DALE Details for all QSEs of the Counter-Party Section:
  • Update section heading to RTLE, URTA and DALE Details for all QSEs of the Counter-Party Section (RFAF*RTLE look back 40 days for summer months and 20 days for non-summer months): Add new column RFAF*RTLE after RFAF
  • Update column name from MAXRTLE to MAXRFAFRTLE

2. Estimated Liability (EAL) Summary Report (EMIL ID: NP16-665-SG, Report Type ID: 13003) (ERCOT Protocol Section 16.11.4.7, Credit Monitoring and Management Reports) will be updated as below:

• EALQ (EAL for Counter-Party representing either Load or Generation) Summary section:
  • Update column name from RFAF*MAXRTLEQ to MAXRFAFRTLEQ
• EALT (EAL for Counter-Party not representing either Load or Generation) Summary section:
  • Update column name from RFAF*MAXRTLET to MAXRFAFRTLET

3. Minimum Current Exposure (MCE) Summary Report (EMIL ID: NP16-678-SG, Report Type ID: 13092) (ERCOT Protocol Section 16.11.4.7, Credit Monitoring and Management Reports) will be updated as below:

• New column Extrapolated volume of Load (Mwh)
• Update column name from Exposure of Load ($) to Extrapolated Exposure of Load ($)

Please monitor your Credit Monitoring and Management Reports and manage Collateral accordingly.

ADDITIONAL INFORMATION: Pursuant to Nodal Protocol Section 21.6, Nodal Protocol Revision Implementation, ERCOT is required to provide notice as soon as practicable, but no later than ten days prior to implementation.

NPRR1277 and the associated documents can be found on the ERCOT website.

CONTACT: If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at ClientServices@ercot.com.

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dg