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PRR643
Summary
| Title | Shorten Payment Default Timelines |
|---|---|
| Next Group | |
| Next Step | |
| Status | Approved on 12/13/2005 |
| Effective Dates |
01/01/2006
|
Action
| Date | Gov Body | Action Taken | Next Steps |
|---|---|---|---|
| 12/13/2005 | BOARD | Approved | Effective date 1/1/06 |
Background
| Status: | Approved |
|---|---|
| Date Posted: | Dec 14, 2005 |
| Sponsor: | Credit Working Group |
| Urgent: | Yes |
| Sections: | 16.2.8, 16.2.9, Sec 8 and 11 of 22B, 22C, and 22H Nodal Protocols: 16.11.5, 16.11.6, Sec 8 and 11 of Standard Form MP Agreement |
| Description: | This PRR proposes to: 1) Reduce the number of days allowed to cure a breach before it becomes a Default under the LSE, QSE and TCR Agreements from 3 days to 2 days; and 2) Make collateral payments due by 3:00pm on the second day after notification rather than by 5:00 pm on that day. |
| Reason: | As part of the effort begun by the TAC Joint Task force to improve ERCOT™s ability to address defaults by Market Participants, the CWG reviewed the timeframes currently allowed for notification and cure periods after ERCOT identifies insufficient collateral issues and notifies the QSE. Currently, six Business Days are required for notices and cures when ERCOT identifies insufficient collateral with a QSE and sends a collateral call, (two days allowed to provide the collateral, one notice day, three days to cure). The proposed changes will reduce this to four Business Days (1.75 days to provide the collateral, .25 of a day for notice, 2 days to cure). Moving the deadline for submitting collateral to 3:00 pm on the second day after notification allows ERCOT to send a default letter that day (after 3:00 p.m.) rather than waiting until the next day |
Key Documents
Nov 14, 2005 - doc - 127 KB
Nov 14, 2005 - doc - 41.5 KB
Nov 16, 2005 - xls - 21.5 KB
Nov 22, 2005 - doc - 94 KB
Dec 2, 2005 - doc - 96.5 KB
Dec 15, 2005 - doc - 99.5 KB