NPRR #639 · Revision Request
NPRR639 Correction to Minimum Current Exposure
ReasonAddresses current operational issues Market efficiencies or enhancements
Created2014-08-14
Approved2014-12-09
Sections Affected
16.11.4.1
Summary
The Minimum Current Exposure (MCE) calculation, which is part of the Total Potential Exposure (TPE) credit evaluation, fails to recognize net purchases of firm physical power, which is a crucial and widely utilized means to fulfill Load serving obligations. Not recognizing net purchases of firm physical power causes the MCE to inaccurately overstate the actual credit risk posed to the market and unfairly penalizes Market Participants who prudently hedge their Load positions.
Action Log 5 milestones
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Aug 14
PRSDeferred/Tabled→ PRS for consideration
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Oct 9
PRSRecommended for Approval→ PRS for IA review
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Nov 6
PRSRecommended for Approval→ TAC for consideration
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Nov 20
TACRecommended for Approval→ Board for consideration
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Dec 9
BOARDApproved
Amendments
| Date | Body | Motion | Result |
|---|---|---|---|
| Oct 9 '14 | PRS | To recommend approval of NPRR639 as amended by the 10/6/14 ERCOT comments. | Passed |
Documents 11
| Name | Type | Posted | Classification |
|---|---|---|---|
| 639NPRR-01 Correction to Minimum Current Exposure 070314 | doc | Jul 3 '14 | Revision Request |
| 639NPRR-02 PRS Report 081414 | doc | Aug 19 '14 | Committee Report |
| 639NPRR-03 Credit Work Group Comments 082714 | doc | Aug 27 '14 | Revision Request Comments |
| 639NPRR-04 ERCOT Comments 100614 | doc | Oct 6 '14 | Revision Request Comments |
| 639NPRR-05 PRS Report 100914 | doc | Oct 13 '14 | Committee Report |
| 639NPRR-06 Credit Work Group Comments 101014 | doc | Oct 14 '14 | Revision Request Comments |
| 639NPRR-07 WMS Comments 103014 | doc | Oct 30 '14 | Revision Request Comments |
| 639NPRR-08 Impact Analysis 103014 | doc | Oct 30 '14 | Staff Report |
| 639NPRR-09 PRS Report 110614 | doc | Nov 10 '14 | Committee Report |
| 639NPRR-10 TAC Report 112014 | doc | Nov 21 '14 | Committee Report |
| 639NPRR-11 Board Report 120914 | doc | Dec 11 '14 | Committee Report |
Meetings That Took It Up 12
| Date | Meeting | Committee | Status |
|---|---|---|---|
| Jun 17 '15 | CWG/MCWG Meeting (CANCELLED) | CREDITWG | Cancelled |
| Dec 9 '14 | Board of Directors Meeting | BOARD | Concluded |
| Nov 20 '14 | TAC Meeting | TAC | Concluded |
| Nov 6 '14 | PRS Meeting | PRS | Concluded |
| Oct 29 '14 | WMS Meeting | WMS | Concluded |
| Oct 9 '14 | PRS Meeting | PRS | Concluded |
| Sep 11 '14 | PRS Meeting | PRS | Concluded |
| Sep 3 '14 | WMS Meeting | WMS | Concluded |
| Aug 20 '14 | Joint CWG/MCWG Meeting | CREDITWG | Concluded |
| Aug 14 '14 | PRS Meeting | PRS | Concluded |
| Aug 6 '14 | WMS Meeting | WMS | Concluded |
| Jul 23 '14 | Joint CWG/MCWG Meeting | CREDITWG | Concluded |