NPRR #430 · Revision Request
NPRR430 Corrections Related to NPRR357, Revisions to Collateral Requirements Concerning CRR Auctions, and Clarification to Collateral Requirements
ReasonThe collateral requirements for CRR Account Holders and Counter-Parties to participate in the CRR market based on NPRR357 are greater than what is actually needed in the market but ERCOT believes this was not the intent. Thus, Market Participants have an increased cost of credit. This NPRR, in conjunction with the related white paper addresses the overcollateralization of CRR Account Holders and Counter-Parties and better reflect the risks and costs of participation in the CRR market.
Created2011-12-15
Approved2012-04-17
Sections Affected
7.5.5.3
Summary
This Nodal Protocol Revision Request (NPRR) clarifies the collateral requirements for Congestion Revenue Right (CRR) Account Holders and Counter-Parties who participate in the CRR market. The change will correct certain formula issues in the ERCOT Board-approved NPRR357, Revisions to Collateral Requirements Concerning CRR Auctions, that result in the overcollateralization of CRR Account Holders and Counter-Parties. Further, the specific equations are removed as they more appropriately belong in a white paper that has been created by the ERCOT CRR team in parallel with this NPRR in the same manner as was done for Day-Ahead Market (DAM) credit. With this correction to the Protocols, the CRR credit screening will be consistent with the treatment of the DAM credit exposure equations.
Action Log 4 milestones
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Dec 15
PRSRecommended for Approval→ PRS Impact Analysis review
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Jan 19
PRSRecommended for Approval→ TAC consideration of NPRR430
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Feb 2
TACRecommended for Approval→ ERCOT Board consideration of NPRR430
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Apr 17
BOARDApproved
Amendments
| Date | Body | Motion | Result |
|---|---|---|---|
| Dec 15 '11 | PRS | To recommend approval of NPRR430 as revised by PRS and to request that ERCOT Staff develop a revised white paper for submission as a proposed Other Binding Document. | Passed |
| Jan 19 '12 | PRS | To endorse and forward the 12/15/11 PRS Report and revised Impact Analysis for NPRR430 to TAC and to recommend approval of the draft Credit Formulas and Detail Whitepaper for the Day-Ahead Market and Congestion Revenue Rights Auction as revised by PRS as an Other Binding Document. | Passed |
Documents 7
| Name | Type | Posted | Classification |
|---|---|---|---|
| 430NPRR-01 Corrections Related to NPPRR357, Revisions to Collate | doc | Dec 19 '11 | Revision Request |
| 430NPRR-02 Impact Analysis 112811 | doc | Dec 19 '11 | Staff Report |
| 430NPRR-03 PRS Report 121511 | doc | Dec 19 '11 | Committee Report |
| 430NPRR-04 Revised Impact Analysis 122811 | doc | Dec 28 '11 | Staff Report |
| 430NPRR-05 PRS Report 011912 | doc | Jan 23 '12 | Committee Report |
| 430NPRR-06 TAC Report 020212 | doc | Feb 3 '12 | Committee Report |
| 430NPRR-07 Board Report 041712 | doc | Apr 18 '12 | Committee Report |
Meetings That Took It Up 6
| Date | Meeting | Committee | Status |
|---|---|---|---|
| Apr 16 '12 | Board of Directors Meeting | BOARD | Concluded |
| Feb 2 '12 | Technical Advisory Committee (TAC) Meeting | TAC | Concluded |
| Jan 19 '12 | Protocol Revision Subcommittee (PRS) Meeting | PRS | Concluded |
| Dec 15 '11 | PRS Meeting | PRS | Concluded |
| Dec 7 '11 | WMS Meeting | WMS | Concluded |
| Dec 5 '11 | Joint CWG and MCWG Meeting | MCWG | Concluded |