NPRR323

    Summary

    Title: Correct DAM Credit Exposure Language and Enable Qualified Expiring CRRs to Offset PTP Bid Exposure
    Next Group:
    Next Step:
    Status: Approved on 03/22/2011
    Effective Dates: 07/26/2011 – All sections except for Section 4.4.10(6)(a)
    08/24/2011 – Section 4.4.10(6)(a)

    Action

    Date Gov Body Action Taken Next Steps
    03/22/2011 Board of Directors Approved
    03/03/2011 TAC Recommended for Approval ERCOT Board consideration
    02/17/2011 PRS Recommended for Approval TAC consideration

    Voting Record

    Date Gov Body Motion Result
    03/22/2011 Board of Directors Approved NPRR323 as recommended by TAC in the 3/3/11 TAC Report Passed
    03/03/2011 TAC To recommend approval of NPRR323 as amended by the 3/2/11 ERCOT comments and as revised by TAC with a recommended priority of High and a rank of 12.75. Passed
    02/17/2011 PRS To recommend approval of NPRR323 as amended by the 2/17/11 ERCOT comments and to forward NPRR323 to TAC 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: 02/10/2011
    Sponsor: Tenaska Power Services
    Urgent: Yes
    Sections: 4.4.10
    Description: This NPRR revises the language in Section 4.4.10 to match the implemented DAM credit exposure calculations for Three-Part Supply Offers as they relate to combined cycle and to PTP bid calculations currently identified in paragraph (6)(d) of Section 4.4.10; right size the credit exposure calculation for DAM transactions submitted via the use of an energy-only bid curve to equate to the maximum exposure; and right size the credit exposure calculation for DAM PTP bids where a qualified expiring Congestion Revenue Right (CRR) offsets cleared DAM exposure.
    Reason: This NPRR revises the over-collateralized requirements related to energy-only bid curves and PTP bids that may have discouraged Market Participants from participating in the DAM. Additionally, qualified expiring CRRs will be recognized has providing a credit exposure offset and may enable QSEs to mitigate congestion price exposure in Real-Time at a reduced credit cost. The changes should reduce default risk related to extreme Real-Time congestion cost by enabling Market Participants to effectively carry CRR hedges expiring in the DAM to Real-Time.

    Key Documents