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NPRR430
Summary
| Title | Corrections Related to NPRR357, Revisions to Collateral Requirements Concerning CRR Auctions, and Clarification to Collateral Requirements |
|---|---|
| Next Group | |
| Next Step | |
| Status | Approved on 04/17/2012 |
| Effective Dates |
09/13/2012
|
Action
| Date | Gov Body | Action Taken | Next Steps |
|---|---|---|---|
| 04/17/2012 | BOARD | Approved | |
| 02/02/2012 | TAC | Recommended for Approval | ERCOT Board consideration of NPRR430 |
| 01/19/2012 | PRS | Recommended for Approval | TAC consideration of NPRR430 |
| 12/15/2011 | PRS | Recommended for Approval | PRS Impact Analysis review |
Voting Record
| Date | Gov Body | Motion | Result |
|---|---|---|---|
| 04/17/2012 | BOARD | To approve NPRR430 as recommended by TAC in the 2/2/12 TAC Report. | Passed |
| 02/02/2012 | TAC | To recommend approval of NPRR430 as recommended by PRS in the 1/19/12 PRS Report. | Passed |
| 01/19/2012 | PRS | To endorse and forward the 12/15/11 PRS Report and revised Impact Analysis for NPRR430 to TAC and to recommend approval of the draft Credit Formulas and Detail Whitepaper for the Day-Ahead Market and Congestion Revenue Rights Auction as revised by PRS as an Other Binding Document. | Passed |
| 12/15/2011 | PRS | To recommend approval of NPRR430 as revised by PRS and to request that ERCOT Staff develop a revised white paper for submission as a proposed Other Binding Document. | Passed |
Background
| Status: | Approved |
|---|---|
| Date Posted: | Nov 28, 2011 |
| Sponsor: | ERCOT |
| Urgent: | No |
| Sections: | 7.5.5.3 |
| Description: | This Nodal Protocol Revision Request (NPRR) clarifies the collateral requirements for Congestion Revenue Right (CRR) Account Holders and Counter-Parties who participate in the CRR market. The change will correct certain formula issues in the ERCOT Board-approved NPRR357, Revisions to Collateral Requirements Concerning CRR Auctions, that result in the overcollateralization of CRR Account Holders and Counter-Parties. Further, the specific equations are removed as they more appropriately belong in a white paper that has been created by the ERCOT CRR team in parallel with this NPRR in the same manner as was done for Day-Ahead Market (DAM) credit. With this correction to the Protocols, the CRR credit screening will be consistent with the treatment of the DAM credit exposure equations. |
| Reason: | The collateral requirements for CRR Account Holders and Counter-Parties to participate in the CRR market based on NPRR357 are greater than what is actually needed in the market but ERCOT believes this was not the intent. Thus, Market Participants have an increased cost of credit. This NPRR, in conjunction with the related white paper addresses the overcollateralization of CRR Account Holders and Counter-Parties and better reflect the risks and costs of participation in the CRR market. |
Key Documents
Dec 19, 2011 - doc - 140 KB
Dec 19, 2011 - doc - 55.5 KB
Dec 19, 2011 - doc - 147 KB
Dec 28, 2011 - doc - 55.5 KB
Jan 23, 2012 - doc - 148 KB
Feb 3, 2012 - doc - 151 KB
Apr 18, 2012 - doc - 152.5 KB