NPRR #620 · Revision Request
NPRR620 Collateral Requirements for Counter-Parties with No Load or Generation
ReasonThe existing Protocol methodology for computing exposure does not reflect the market risk profile of trading Counter-Parties that represent neither Load nor generation. In addition, under existing calculations, in certain circumstances Counter-Parties with neither Load nor generation may not have an MCE while continuing to operate in the Market.
Created2014-05-15
Approved2014-08-12
Sections Affected
16.11.4.116.11.4.216.11.4.3
Summary
This Nodal Protocol Revision Request (NPRR) revises the calculation of credit exposure for Counter-Parties that represent neither Load nor generation by adjusting the M1 factor for forward exposure risk to reflect the fact that these Counter-Parties do not have Mass Transition risk, reducing the 40-day "look back" period for certain exposure components to 20 days and specifying a Minimum Current Exposure (MCE) for these Counter-Parties that is also used as the Initial Estimated Liability.
Action Log 4 milestones
-
May 15
PRSRecommended for Approval→ PRS for Impact Analysis review.
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Jun 11
PRSRecommended for Approval→ TAC for consideration
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Jun 26
TACRecommended for Approval→ Board for consideration
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Aug 12
BOARDApproved
Amendments
| Date | Body | Motion | Result |
|---|---|---|---|
| Jun 11 '14 | PRS | To endorse and forward the 5/15/14 PRS Report as amended by the 5/21/14 ERCOT and 5/28/14 Credit WG comments and the Impact Analysis to TAC with a recommended priority of 2014 and rank of 1160. | Passed |
Documents 8
| Name | Type | Posted | Classification |
|---|---|---|---|
| 620NPRR-01 Collateral Requirements for Counter-Parties with No L | doc | Apr 30 '14 | Revision Request |
| 620NPRR-02 Impact Analysis 043014 | doc | May 2 '14 | Staff Report |
| 620NPRR-03 PRS Report 051514 | doc | May 19 '14 | Committee Report |
| 620NPRR-04 ERCOT Comments 052114 | doc | May 21 '14 | Revision Request Comments |
| 620NPRR-05 CWG Comments 052814 | doc | May 28 '14 | Revision Request Comments |
| 620NPRR-06 PRS Report 061114 | doc | Jun 16 '14 | Committee Report |
| 620NPRR-07 TAC Report 062614 | doc | Jun 30 '14 | Committee Report |
| 620NPRR-08 Board Report 081214 | doc | Aug 13 '14 | Committee Report |
Meetings That Took It Up 5
| Date | Meeting | Committee | Status |
|---|---|---|---|
| Aug 12 '14 | Board of Directors Meeting | BOARD | Concluded |
| Jun 26 '14 | TAC Meeting | TAC | Concluded |
| Jun 11 '14 | PRS Meeting | PRS | Concluded |
| May 22 '14 | Joint CWG/MCWG Meeting | CREDITWG | Concluded |
| May 15 '14 | PRS Meeting | PRS | Concluded |