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NPRR620

Summary

Title Collateral Requirements for Counter-Parties with No Load or Generation
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Next Step
Status Approved on 08/12/2014
Effective Dates
06/02/2019

Action

Date Gov Body Action Taken Next Steps
08/12/2014 BOARD Approved
06/26/2014 TAC Recommended for Approval Board for consideration
06/11/2014 PRS Recommended for Approval TAC for consideration
05/15/2014 PRS Recommended for Approval PRS for Impact Analysis review.

Voting Record

Date Gov Body Motion Result
08/12/2014 BOARD To approve NPRR620 as recommended by TAC in the 6/26/14 TAC Report. Passed
06/26/2014 TAC To recommend approval of NPRR620 as recommended by PRS in the 6/11/14 PRS Report. Passed
06/11/2014 PRS To endorse and forward the 5/15/14 PRS Report as amended by the 5/21/14 ERCOT and 5/28/14 Credit WG comments and the Impact Analysis to TAC with a recommended priority of 2014 and rank of 1160. Passed
05/15/2014 PRS To recommend approval of NPRR620 as submitted. Passed

Background

Status: Approved
Date Posted: Apr 30, 2014
Sponsor: ERCOT
Urgent: No
Sections: 16.11.4.1, 16.11.4.2, 16.11.4.3
Description: This Nodal Protocol Revision Request (NPRR) revises the calculation of credit exposure for Counter-Parties that represent neither Load nor generation by adjusting the M1 factor for forward exposure risk to reflect the fact that these Counter-Parties do not have Mass Transition risk, reducing the 40-day "look back" period for certain exposure components to 20 days and specifying a Minimum Current Exposure (MCE) for these Counter-Parties that is also used as the Initial Estimated Liability.
Reason: The existing Protocol methodology for computing exposure does not reflect the market risk profile of trading Counter-Parties that represent neither Load nor generation. In addition, under existing calculations, in certain circumstances Counter-Parties with neither Load nor generation may not have an MCE while continuing to operate in the Market.

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