NPRR519  Exemption of ERS-Only QSEs from Collateral and Capitalization Requirements

This Nodal Protocol Revision Request (NPRR) exempts those Qualified Scheduling Entities (QSEs) that represent only Emergency Response Service (ERS) Resources and that do not participate in the Day-Ahead Market (DAM), Real-Time Market (RTM) and Congestion Revenue Right (CRR) markets ("ERS-only QSEs") from the collateral and financial statement reporting requirements in Section 16.11, Financial Security for Counter-Parties, and from each of the various requirements in Section 16.16, Additional Counter-Party Qualification Requirements, including those relating to capitalization, certification, and the verification of a risk management framework. Upon notifying ERCOT of its election to move to ERS-only status, ERCOT would verify that the QSE meets the relevant requirements, including having a Total Potential Exposure (TPE) of zero, before authorizing this designation. If a QSE wishes to terminate its ERS-only status in order to participate in other ERCOT markets, it must provide advance written notification to ERCOT and must demonstrate compliance with the relevant collateral and capitalization requirements before receiving approval to terminate.