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NPRR484

Summary

Title Revisions to Congestion Revenue Rights Credit Calculations and Payments
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Next Step
Status Approved on 03/19/2013
Effective Dates
10/21/2013

Sections 7.5.3, 7.5.5.3 (partial), and 16.11.4.5 (partial)

Action

Date Gov Body Action Taken Next Steps
03/19/2013 BOARD Approved
02/07/2013 TAC Recommended for Approval ERCOT Board Consideration
01/17/2013 PRS Recommended for Approval TAC Consideration
12/13/2012 PRS Recommended for Approval PRS for Impact Analysis Review
11/15/2012 PRS Deferred/Tabled PRS consideration
10/18/2012 PRS Recommended for Approval PRS consider the IA

Voting Record

Date Gov Body Motion Result
03/19/2013 BOARD To approve NPRR484 as recommended by TAC in the 2/7/13 TAC Report
02/07/2013 TAC To recommend approval of NPRR484 as recommended by PRS in the 1/17/13 PRS Report with a modified Priority of 2013 and rank of 580. Passed
01/17/2013 PRS To endorse and forward NPRR484 as recommended by PRS in the 12/13/12 PRS Report and as amended by the 1/10/13 ERCOT comments and 1/10/13 Luminant Energy comments; and the preliminary Impact Analysis for NPRR484 to TAC with a recommended priority of 2014 and rank of 895. Passed
12/13/2012 PRS To endorse the 10/18/12 PRS Report for NPRR484 as amended by the 12/12/12 ERCOT comments and to request that NPRR484 return to the January 17, 2013 PRS meeting with a final Impact Analysis. Passed
11/15/2012 PRS To table NPRR484 for one month pending an Impact Analysis and refer associated issues to WMS. Passed
10/18/2012 PRS To recommend approval of NPRR484 as amended by the 10/17/12 ERCOT comments and as revised by PRS.

Background

Status: Approved
Date Posted: Sep 28, 2012
Sponsor: Luminant Energy Company, LLC
Urgent: No
Sections: 7.5.5.3, 9.9, 9.9.1, 9.9.2, 16.11.4.5
Description: This Nodal Protocol Revision Request (NPRR) replaces the Congestion Revenue Right (CRR) Auction credit calculations with path-specific exposure calculations based on Day-Ahead Market (DAM) clearing prices over a rolling period and revises the Future Credit Exposure (FCE) calculations for CRR Account Holders; which results in a modification to the payment schedule for CRRs.
Reason: The current credit calculations collateralize in a uniform manner and do not recognize that different congestion paths have various levels of risk. This can lead to under-collateralization of the riskiest paths, leaving the market exposed, or significant over-collateralization, therefore increasing the cost of participation for many Market Participants. In addition, this proposal allows Market Participants to post collateral in lieu of pre-paying for forward awarded CRRs.

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