NPRR #206 · Revision Request
NPRR206 Nodal Market Day-Ahead Market Credit Requirements
ReasonThe current collateral requirements for QSEs to participate in the DAM are significant and based on potential offers and bids and not what is actually cleared through the market. Thus, Market Participants have an increased cost of credit. Some are concerned that the significant collateral requirements on QSEs will discourage Market Participants from participating in the DAM, which will create inefficiencies and additional energy price volatility. Additionally, unhedged QSE Load in the DAM may result in extreme default risk in Real-Time. The changes in this NPRR address the over collateralization of QSEs and better reflect the risk and costs of DAM participation. This NPRR contains several "variables" (c, d, a, b, t, u, y, and z highlighted below) that serve as placeholders for values that will ultimately be determined by the Wholesale Market Subcommittee (WMS) prior to the Texas Nodal Market Implementation Date in December 2010.
Created2010-01-26
Approved2010-02-16
Sections Affected
4.4.10
Summary
This Nodal Protocol Revision Request (NPRR) revises the nodal collateral requirements by Qualified Scheduling Entities (QSEs) who participate in the Day-Ahead Market (DAM). The change will potentially reduce the collateral burden for QSE’s bids while sufficiently collateralizing ERCOT. The revisions are based on discussions held at the Market Credit Working Group (MCWG). The proposed NPRR language has been developed for implementation by the Texas Nodal Market Implementation Date (December 2010). Additional changes to further improve nodal collateralization may be proposed in the future, some of which may require nodal system changes. Revisions requiring significant nodal system changes following this NPRR are not expected to be implemented by the December 2010 Texas Nodal Market Implementation Date.
Action Log 3 milestones
-
Jan 26
PRSRecommended for Approval→ TAC for consideration.
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Feb 4
TACRecommended for Approval→ ERCOT Board for consideration
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Feb 16
BOARDApproved
Amendments
| Date | Body | Motion | Result |
|---|---|---|---|
| Jan 26 '10 | PRS | To recommend approval of NPRR206 as amended by the 1/26/10 Reliant Energy Services comments and as revised by PRS and to forward NPRR206 to TAC. | Passed |
| Feb 4 '10 | TAC | To recommend approval of NPRR206 as amended by the 2/1/10 Luminant comments and as revised by TAC with direction to the MCWG to provide a proposal to TAC for a conservative Nodal Market start paradigm for the first 60 days of DAM operation and to further define the "e" variables. | Passed |
| Feb 16 '10 | BOARD | To approve NPRR206 as amended by the 2/12/10 ERCOT comments and as revised by the ERCOT Board with the requirement that TAC bring back definitions for the variables to the April 2010 ERCOT Board meeting. | Passed |
Ballots
| Date | Body | Result | Yes | No | Abstain | |
|---|---|---|---|---|---|---|
| Feb 4 '10 | TAC | Motion Passes | 22 | 6 | 1 | xls |
Documents 19
| Name | Type | Posted | Classification |
|---|---|---|---|
| 206NPRR-01 Nodal Market Day-Ahead Market Credit Requirements 012 | doc | Jan 20 '10 | Revision Request |
| 206NPRR-02 CEO Revision Request Review 012010 | doc | Jan 20 '10 | Revision Request Comments |
| 206NPRR-03 CPS Energy Comments 012010 | doc | Jan 20 '10 | Revision Request Comments |
| 206NPRR-04 WMS Comments 012010 | doc | Jan 20 '10 | Revision Request Comments |
| 206NPRR-05 Preliminary Impact Analysis 012010 | doc | Jan 20 '10 | Staff Report |
| 206NPRR-06 ERCOT Comments 012110 | doc | Jan 21 '10 | Revision Request Comments |
| 206NPRR-07 Reliant Energy Services Comments 012610 | doc | Jan 26 '10 | Revision Request Comments |
| 206NPRR-08 PRS Report 012610 | doc | Jan 27 '10 | Committee Report |
| 206NPRR-09 Luminant Comments 020110 | doc | Feb 1 '10 | Revision Request Comments |
| 206NPRR-10 Impact Analysis 020110 | doc | Feb 1 '10 | Staff Report |
| 206NPRR-11 LCRA Comments 020210 | doc | Feb 2 '10 | Revision Request Comments |
| 206NPRR-12 TIEC Comments 020310 | doc | Feb 3 '10 | Revision Request Comments |
| 206NPRR-13 TAC Report 020410 | doc | Feb 5 '10 | Committee Report |
| 206NPRR-14 TAC Roll Call Vote 020410 | xls | Feb 5 '10 | Revision Request Ballot |
| 206NPRR-15 Revised Impact Analysis 021010 | doc | Feb 11 '10 | Staff Report |
| 206NPRR-16 ERCOT Comments 021210 | doc | Feb 12 '10 | Revision Request Comments |
| 206NPRR-17 Credit Work Group Comments 021210 | doc | Feb 12 '10 | Revision Request Comments |
| 206NPRR-18 TIEC Comments 021510 | doc | Feb 15 '10 | Revision Request Comments |
| 206NPRR-19 Board Report 021610 | doc | Feb 17 '10 | Committee Report |
Meetings That Took It Up 11
| Date | Meeting | Committee | Status |
|---|---|---|---|
| Apr 20 '10 | ERCOT Board of Directors Meeting | BOARD | Concluded |
| Apr 8 '10 | TAC Meeting | TAC | Concluded |
| Mar 30 '10 | Special WMS Meeting | WMS | Concluded |
| Mar 24 '10 | WMS Meeting | WMS | Concluded |
| Mar 10 '10 | Credit Work Group Meeting | CREDITWG | Concluded |
| Feb 17 '10 | WMS Meeting | WMS | Concluded |
| Feb 12 '10 | Credit Work Group Meeting | CREDITWG | Concluded |
| Feb 8 '10 | Credit Work Group Meeting | CREDITWG | Concluded |
| Feb 4 '10 | TAC Meeting | TAC | Concluded |
| Feb 2 '10 | Credit Work Group Meeting | CREDITWG | Concluded |
| Jan 26 '10 | Special PRS Meeting | PRS | Concluded |