NOTICE DATE:  April 26, 2013

NOTICE TYPE:  M-A042613-01 CRR

SHORT DESCRIPTION:  June 2013 Monthly CRR Auction

INTENDED AUDIENCE:  CRR Account Holders

DAYS AFFECTED:  April 26 - May 9, 2013

LONG DESCRIPTION:  Credit Submission for the June 2013 Monthly Congestion Revenue Right (CRR) Auction began at 00:00:01 CPT on April 26, 2013, and will close at 17:00:00 CPT on May 6, 2013.

Per Section 7.5.2(2)(b) of the ERCOT Protocols, ERCOT will enforce a volume limitation of 7,500 market transactions (bids and offers) per account holder. The CRR Auction Bid window opens at 00:00:01 CPT on May 7, 2013, and closes at 17:00:00 CPT on May 9, 2013.

Per Section 7.5.2(2)(e), if the total number of market transactions submitted for the auction exceeds the maximum number of transactions available for the market, currently 200,000, CRR Account Holders will be notified via Operator Message that a second round of submissions will be required. Account Holders whose total bids and offers exceed the maximum number of allowable transactions determined for the second round will have their portfolios removed from the auction and will be required to resubmit a new portfolio with the total number of transactions less than or equal to the second round limit. The preliminary allocated second round CRR transaction limit is 1,006.

Per Section 7.5.2(2)(a), prior to the opening of the auction bid window but after the credit lock deadline, the system will send a message to all account holders regarding the available number of transactions for participating account holders in the event of a second round bid. CRR Account Holders are not included in the CRR transaction volume limitation process if they do not own open CRR positions or they do not have credit allocated to the CRR Auction. Should a second round auction be necessary, the bid/offer limit will be recalculated after credit lock to accommodate only those CRR Account Holders who have open positions or have credit allocated to the auction.

The second round auction bid window, if needed, will be open from 18:00:00 CPT on May 9, 2013, until 17:00:00 CPT on May 10, 2013.

Results for the June 2013 Monthly CRR Auction will be posted to the Market Information System (MIS) on May 16, 2013, as indicated on the CRR Activity Calendar. A Market Notice will be sent if the results are posted on a different date.

ADDITIONAL INFORMATION:  The Baseload CRRs used for the June 2013 Monthly CRR Auction may be found in the Monthly Auction Notice folder on the CRR MIS at https://mis.ercot.com/pps/tibco/mis/Pages/Market+Information/CRR and on the CRR webpage on ERCOT.com at http://www.ercot.com/mktinfo/crr/.

Specifications for the equipment and interfaces necessary to participate in the CRR Auction are included in the CRR Market User Interface Specifications document, which may also be found on the CRR MIS and on the CRR webpage on ERCOT.com.

The ERCOT Board-approved values for A and M as referenced in Protocol Section 7.5.5.3(3)(a)(iii) are currently set at $.75/MWh and 0 respectively. The minimum Option bid price is $.01.

Per Section 7.5.5.3(3)(b), ERCOT will review preliminary auction results to ensure that Counter-Parties have sufficient credit limits to cover post auction credit requirements. If a Counter-Party does not have a sufficient credit limit for post auction credit requirements, ERCOT may send a collateral request that is due by 15:00 CPT on the next Bank Business Day. If sufficient collateral is not received by 15:00 CPT on the next Bank Business Day, ERCOT may set an associated CRR Account Holder's credit limit to zero in the CRR application such that the Counter-Party's bids and negatively priced offers in the CRR Auction are voided and rerun the CRR Auction without that Counter-Party's activity. Collateral calls pursuant to Section 7.5.5.3(3)(b) may be issued on a non-Business Day to minimize impact on CRR timelines.

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 the ERCOT CRR Team via email at [log in to unmask]<mailto:[log in to unmask]>.

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