NPRR #88 · Revision Request
NPRR088 Revision to 16.11.5, Monitoring of a Counter-Party’s Creditworthiness and Credit Exposure by ERCOT
ReasonSection 16.11.5 requires a Counter-Party 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. Counter-Parties 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.
Created2007-11-15
Approved2008-02-19
Sections Affected
16.11.5
Summary
The revision ensures that ERCOT will receive and accept as sufficient from the Counter-Party, financial statements of the Counter-Party or a guarantor if a guarantee is being provided for the purpose of determining the Counter-Party’s creditworthiness.
Action Log 5 milestones
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Nov 15
PRSDeferred/Tabled→ Langauge consideration
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Dec 13
PRSRecommended for Approval→ PRS Impact Analysis review
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Jan 17
PRSRecommended for Approval
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Feb 7
TACRecommended for Approval→ Board consideration
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Feb 19
BOARDApproved
Amendments
| Date | Body | Motion | Result |
|---|---|---|---|
| Dec 13 '07 | PRS | To recommend approval of NPRR088, as revised by Credit WG comments. | Passed |
Documents 10
| Name | Type | Posted | Classification |
|---|---|---|---|
| 088NPRR-01 Revision to 16 11 5 Monitoring of a Counter-Party's C | doc | Oct 31 '07 | Revision Request |
| 088NPRR-02 Austin Energy Comments 111407 | doc | Nov 14 '07 | Revision Request Comments |
| 088NPRR-03 ERCOT Staff Comments 111407 | doc | Nov 14 '07 | Revision Request Comments |
| 088NPRR-04 PRS Action Report 111507 | doc | Nov 19 '07 | Committee Report |
| 088NPRR-05 CWG Comments 120707 | doc | Dec 7 '07 | Revision Request Comments |
| 088NPRR-06 PRS Recommendation Report 121307 | doc | Dec 17 '07 | Committee Report |
| 088NPRR-07 Impact Analysis 011708 | doc | Jan 17 '08 | Staff Report |
| 088NPRR-08 PRS Recommendation Report 011708 | doc | Jan 18 '08 | Committee Report |
| 088NPRR-09 TAC Recommendation Report 020708 | doc | Feb 7 '08 | Committee Report |
| 088NPRR-10 Board Action Report 021908 | doc | Feb 21 '08 | Committee Report |
Meetings That Took It Up 6
| Date | Meeting | Committee | Status |
|---|---|---|---|
| Feb 19 '08 | Board of Directors Meeting | BOARD | Concluded |
| Feb 7 '08 | TAC Meeting | TAC | Concluded |
| Jan 17 '08 | PRS Meeting | PRS | Concluded |
| Dec 13 '07 | PRS Meeting | PRS | Concluded |
| Nov 15 '07 | PRS Meeting | PRS | Concluded |
| Nov 5 '07 | TPTF Meeting | TPTF | Concluded |