NPRR #683 · Revision Request

NPRR683 Revision to Available Credit Limit Calculation

Approved sponsor Luminant posted 2015-02-09 ercot.com

ReasonThe current method unfairly penalizes Counter-Parties posting excess collateral and equally incents other Counter-Parties to post little to no excess collateral. The method proposed by this NPRR better aligns collateral requirements with actual credit risk and provides a level playing field for all Market Participants.

Created2015-03-12

Approved2015-06-09

Sections Affected

16.11.4.616.11.4.6.1and 16.11.4.6.2

Summary

This Nodal Protocol Revision Request (NPRR) revises the calculation of Available Credit Limit for the CRR Auction (ACLC) and Available Credit Limit for the DAM (ACLD) by replacing the existing 10% discount to the ACL based on the Counter-Party’s unused letter of credit amount with a 10% gross up of the sum of the Total Potential Exposure Any (TPEA) and the Total Potential Exposure Secured (TPES).

Action Log 4 milestones

Mar 12
PRSRecommended for Approval
→ PRS for Impact Analysis review
Apr 16
PRSRecommended for Approval
→ TAC for consideration
May 28
TACRecommended for Approval
→ Board for consideration
Jun 9
BOARDApproved

Documents 7

Name	Type	Posted	Classification
683NPRR-01 Revision to Available Credit Limit Calculation 020915	doc	Feb 9 '15	Revision Request
683NPRR-02 PRS Report 031215	doc	Mar 16 '15	Committee Report
683NPRR-03 Credit WG Comments 032515	doc	Mar 25 '15	Revision Request Comments
683NPRR-04 Impact Analysis 040815	doc	Apr 8 '15	Staff Report
683NPRR-05 PRS Report 041615	doc	Apr 21 '15	Committee Report
683NPRR-06 TAC Report 052815	doc	May 29 '15	Committee Report
683NPRR-07 Board Report 060915	doc	Jun 10 '15	Committee Report

Name

Type

Posted

Classification

683NPRR-01 Revision to Available Credit Limit Calculation 020915

doc

Feb 9 '15

Revision Request

683NPRR-02 PRS Report 031215

doc

Mar 16 '15

Committee Report