Issues

NPRR140

Summary
Action
Voting Record
Background
Key Documents

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

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

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.