Issues

NPRR088

Summary
Action
Voting Record
Background
Key Documents

Summary

Title	Revision to 16.11.5, Monitoring of a Counter-Party’s Creditworthiness and Credit Exposure by ERCOT
Next Group
Next Step
Status	Approved on 02/19/2008
Effective Dates	12/01/2010 or per the Nodal Protocol Transition Plan http://www.ercot.com/mktrules/protocols (03/01/08 Nodal Protocols Library)

Action

Date	Gov Body	Action Taken	Next Steps
02/19/2008	BOARD	Approved
02/07/2008	TAC	Recommended for Approval	Board consideration
01/17/2008	PRS	Recommended for Approval
12/13/2007	PRS	Recommended for Approval	PRS Impact Analysis review
11/15/2007	PRS	Deferred/Tabled	Langauge consideration

Date

Gov Body

Action Taken

Next Steps

02/19/2008

BOARD

Approved

02/07/2008

TAC

Recommended for Approval

Board consideration

01/17/2008

PRS

Recommended for Approval

12/13/2007

PRS

Recommended for Approval

PRS Impact Analysis review

11/15/2007

PRS

Deferred/Tabled

Langauge consideration

Voting Record

Date	Gov Body	Motion	Result
02/19/2008	BOARD	Approved NPRR088 as recommended by TAC.	Passed
02/07/2008	TAC	To recommend approval of NPRR088 as recommended by PRS.	Passed
01/17/2008	PRS	Forward the Recommendation Report and IA to TAC for approval	Passed
12/13/2007	PRS	To recommend approval of NPRR088, as revised by Credit WG comments.	Passed
11/15/2007	PRS	To table NPRR088.	Passed

Date

Gov Body

Motion

Result

02/19/2008

BOARD

Approved NPRR088 as recommended by TAC.

Passed

02/07/2008

TAC

To recommend approval of NPRR088 as recommended by PRS.

Passed

01/17/2008

PRS

Forward the Recommendation Report and IA to TAC for approval

Passed

12/13/2007

PRS

To recommend approval of NPRR088, as revised by Credit WG comments.

Passed

11/15/2007

PRS

To table NPRR088.

Passed

Background

Status:	Approved
Date Posted:	Oct 31, 2007
Sponsor:	Reliant Energy
Urgent:	No
Sections:	16.11.5
Description:	The revision ensures that ERCOT will receive and accept as sufficient from the Counter-Party, financial statements of the Counter-Party or a guarantor if a guarantee is being provided for the purpose of determining the Counter-Party’s creditworthiness.
Reason:	Section 16.11.5 requires a Counter-Party and its guarantor to provide unaudited quarterly and audited annual financial statements to ERCOT for creditworthiness monitoring. Bilateral credit practices typically only require the financial statements of either the contracting entity or the guarantor, as there is only one entity whose creditworthiness is relied upon. Counter-Parties that are subsidiaries of larger organizations generally do not prepare audited financial statements at the subsidiary level, and in many cases, financial statements at the subsidiary level are not prepared at all. This revision conforms the protocols to industry credit practice.