NOTICE DATE:  February 1, 2012

NOTICE TYPE:  W-A020112-01 Financial/Credit

SHORT DESCRIPTION:  Interest payments on cash collateral

INTENDED AUDIENCE:  Treasury or Accounts Payable personnel

DAY AFFECTED:  February 15, 2012

LONG DESCRIPTION:  On February 15, 2012, Counter-Parties (CPs )who had cash collateral posted with ERCOT (in accordance with Section 16.11.3 (d), Alternative Means of Satisfying ERCOT Creditworthiness Requirements) in 2011 will be paid interest accrued on their cash collateral through December 31, 2011. 

• Counter-Parties that are due less than $50.00 will receive credit in their prepay account, which will be disclosed on their Available Credit Limit (ACL) Summary Report posted on the MIS.
• Counter-Parties that are due $50.00 or more will receive a Fed Wire for interest due.

ERCOT will send interest payments as reported on the IRS Form 1099.

Going forward, ERCOT plans to pay interest on cash collateral on a semi-annual basis (approximately August 2012 and February 2013). However, if the total amount of interest held by ERCOT mid-year is less than $50,000, ERCOT plans to forego the mid-year payment in that year and pay interest only after the end of the year.  

Cash collateral is invested in accordance with the ERCOT Investment Corporate Standard as approved by the ERCOT Finance & Audit Committee.

CONTACT:  If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at [log in to unmask].

If you are receiving email from an ERCOT distribution list that you no longer wish to receive, please follow this link in order to unsubscribe from this list: http://lists.ercot.com.

 

 

 

 

 

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