MIS LOG IN

NPRR140

Summary

Title Revision to CRR Obligation Margin Adder
Next Group
Next Step
Status Approved on 01/20/2009
Effective Dates
12/01/2010

or per the Nodal Protocol Transition Plan http://www.ercot.com/mktrules/protocols (02/01/09 Nodal Protocols Library)

Action

Date Gov Body Action Taken Next Steps
10/23/2008 PRS Deferred/Tabled PRS consideration
12/18/2008 PRS Recommended for Approval TAC consideration
11/20/2008 PRS Recommended for Approval PRS consider the Recommendation Report and IA
01/08/2009 TAC Recommended for Approval Board consideration
08/21/2008 PRS Referred PRS language consideration
01/20/2009 BOARD Approved

Voting Record

Date Gov Body Motion Result
10/23/2008 PRS To table NPRR140 until the November 20th PRS meeting. Passed
12/18/2008 PRS To endorse and forward the PRS Recommendation Report and Impact Analysis for NPRR140 to TAC. Passed
11/20/2008 PRS To recommend approval of NPRR140 as amended by ERCOT comments submitted on 11/19/08 and as revised by PRS. Passed
01/08/2009 TAC To recommend approval of NPRR140 as recommended by PRS and the initial values of the variables as recommended by the 10/23/08 WMS comments. Passed
08/21/2008 PRS To refer NPRR140 to the Transition Plan Task Force (TPTF). Passed
01/20/2009 BOARD To approve NPRR140 as recommended by TAC. Passed

Background

Status: Approved
Date Posted: Jul 14, 2008
Sponsor: J. Aron
Urgent: No
Sections: 16.11.4.5, Determination of the Counter-Party Future Credit Exposure
Description: Revises the margin adder for Point-to-Point (PTP) Obligations to a value "X" to be determined by the subcommittee process.
Reason: Current margin adder is excessive given the level of risk provided by the market and is well in excess of margin requirements of other markets. For instance, a Congestion Revenue Right (CRR) that is purchased for $0.10/MW will be margined $10.00 in ERCOT ($87,600 annually). That comparable CRR would be margined approximately $0.23 in the New York Independent System Operator (NYISO) market and even less in the Midwest Independent System Operator (MISO) market.

Key Documents

Related Content