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PRR744

Summary

Title Revision to 16.2.8, Monitoring of Creditworthiness by ERCOT
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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

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

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.

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