NPRR #620 · Revision Request
NPRR620 Collateral Requirements for Counter-Parties with No Load or Generation
- PRS Jun 11 '14
- TAC Jun 26 '14
- BOARD Aug 12 '14
- PUCT —
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.
Timeline
- Apr 30
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May 15
PRS PRS MeetingPRSRecommended for Approval“To recommend approval of NPRR620 as submitted.” — Passed→ PRS for Impact Analysis review.
- May 22
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Jun 11
PRS PRS MeetingPRSRecommended for Approval Forwarded → TAC Amended by the May 21 '14 ERCOT comments Amended by the May 28 '14 Credit WG comments priority 2014 · rank 1160“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→ TAC for consideration
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Jun 26
TAC TAC MeetingTACRecommended for Approval“To recommend approval of NPRR620 as recommended by PRS in the 6/11/14 PRS Report.” — Passed→ Board for consideration
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Aug 12
BOARD Board of Directors MeetingBOARDApproved“To approve NPRR620 as recommended by TAC in the 6/26/14 TAC Report.” — Passed
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Posted since the last meeting