NPRR #430 · Revision Request

NPRR430 Corrections Related to NPRR357, Revisions to Collateral Requirements Concerning CRR Auctions, and Clarification to Collateral Requirements

Approved sponsor ERCOT posted 2011-11-28 ercot.com

PRS Jan 19 '12
TAC Feb 2 '12
BOARD Apr 17 '12
PUCT —

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.

Timeline

2011
Nov 28
PRSFiled by ERCOT
Dec 5
Listed without action at 2 meetings (Dec 5 '11 – Dec 7 '11)
- Joint CWG and MCWG Meeting Dec 5 '11
- WMS Meeting Dec 7 '11
Dec 15
PRS PRS Meeting
PRSRecommended for Approval Action
“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

→ PRS Impact Analysis review
2012
Jan 19
PRS Protocol Revision Subcommittee (PRS) Meeting
PRSRecommended for Approval Forwarded → TAC
“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

→ TAC consideration of NPRR430
- 430NPRR-01 Corrections Related to NPPRR357, Revisions to Collate Dec 19 '11 · Revision Request
- 430NPRR-02 Impact Analysis 112811 Dec 19 '11 · Staff Report
- 430NPRR-03 PRS Report 121511 Dec 19 '11 · Committee Report
- 430NPRR-04 Revised Impact Analysis 122811 Dec 28 '11 · Staff Report
Feb 2
TAC Technical Advisory Committee (TAC) Meeting
TACRecommended for Approval
“To recommend approval of NPRR430 as recommended by PRS in the 1/19/12 PRS Report.” — Passed

→ ERCOT Board consideration of NPRR430
- 430NPRR-05 PRS Report 011912 Jan 23 '12 · Committee Report
Apr 16
BOARD Board of Directors Meeting
- 430NPRR-06 TAC Report 020212 Feb 3 '12 · Committee Report
Apr 17
BOARDEmail Vote / Unlisted Meeting
BOARDApproved
“To approve NPRR430 as recommended by TAC in the 2/2/12 TAC Report.” — Passed
—
Posted since the last meeting
- 430NPRR-07 Board Report 041712 Apr 18 '12 · Committee Report