NOTICE DATE: December 10, 2021

NOTICE TYPE: M-D110521-02 Financial / Credit

SHORT DESCRIPTION: Update - Error Identified in ERCOT’s Credit Monitoring and Management (CMM) System

INTENDED AUDIENCE: All Counter-Parties

DAYS AFFECTED: February 17, 2021 to December 11, 2021

LONG DESCRIPTION: On November 5, 2021, ERCOT issued a Market Notice informing Market Participants that ERCOT identified an error in the CMM system that occurred beginning February 17, 2021. ERCOT has determined that the error caused Day-Ahead Market (DAM) prices for Operating Day February 17, 2021 to be excluded from the Future Credit Exposure (FCE) component of Total Potential Exposure (TPE).

FCE determines the amount of Financial Security that a Counter-Party (CP) must provide for activity related to Congestion Revenue Rights (CRRs). ERCOT has resolved the error and is adjusting FCE amounts for CPs as necessary. FCE is expected to increase for approximately 60 CPs; 78% of which will experience a TPE increase of less than $10,000. Any adjusted FCE will be reflected on the Counter-Party's December 12, 2021, TPE Summary Report. This error did not trigger any collateral calls.

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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