Issues

PRR744

Summary
Action
Voting Record
Background
Key Documents

Summary

Title	Revision to 16.2.8, Monitoring of Creditworthiness by ERCOT
Next Group
Next Step
Status	Approved on 01/15/2008

Action

Date	Gov Body	Action Taken	Next Steps
01/15/2008	BOARD	Approved
01/03/2008	TAC	Recommended for Approval	Board consideration
12/13/2007	PRS	Recommended for Approval	TAC consideration
11/15/2007	PRS	Deferred/Tabled	PRS consideration

Date

Gov Body

Action Taken

Next Steps

01/15/2008

BOARD

Approved

01/03/2008

TAC

Recommended for Approval

Board consideration

12/13/2007

PRS

Recommended for Approval

TAC consideration

11/15/2007

PRS

Deferred/Tabled

PRS consideration

Voting Record

Date	Gov Body	Motion	Result
01/15/2008	BOARD	Approve PRR744 as recommended by TAC	Passed
01/03/2008	TAC	To recommend approval of PRR744.	Passed
12/13/2007	PRS	To recommend approval of PRR744 as revised by Credit WG comments.	Passed
11/15/2007	PRS	To table PRR744 until its December meeting.	Passed

Date

Gov Body

Motion

Result

01/15/2008

BOARD

Approve PRR744 as recommended by TAC

Passed

01/03/2008

TAC

To recommend approval of PRR744.

Passed

12/13/2007

PRS

To recommend approval of PRR744 as revised by Credit WG comments.

Passed

11/15/2007

PRS

To table PRR744 until its December meeting.

Passed

Background

Status:	Approved
Date Posted:	Oct 31, 2007
Sponsor:	Reliant Energy
Urgent:	Yes
Sections:	16.2.8
Description:	The revision ensures that ERCOT will receive and accept as sufficient from the QSE, financial statements of the QSE or a guarantor if a guarantee is being provided for the purpose of determining the QSE’s creditworthiness.
Reason:	Section 16.2.8 requires a QSE and its guarantor to provide unaudited quarterly and audited annual financial statements to ERCOT for creditworthiness monitoring. Bilateral credit practices typically only require the financial statements of either the contracting entity or the guarantor, as there is only one entity whose creditworthiness is relied upon. QSEs that are subsidiaries of larger organizations generally do not prepare audited financial statements at the subsidiary level, and in many cases, financial statements at the subsidiary level are not prepared at all. This revision conforms the protocols to industry credit practice.