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Subject:
M-A092408-02 ERCOT Takes Actions to Confirm Asset Security
From:
ERCOT Client Relations <[log in to unmask]>
Date:
Fri, 31 Oct 2008 12:36:35 -0500
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NOTICE DATE:  October 31, 2008

NOTICE TYPE:  M-A092408-02 General

SHORT DESCRIPTION:  ERCOT Receives Initial Distribution of Funds from
The Reserve

INTENDED AUDIENCE:  All ERCOT Market Participants

 

DAY AFFECTED:  October 31, 2008

 

LONG DESCRIPTION: The Electric Reliability Council of Texas, Inc.
(ERCOT), grid operator for most of the state, today received an initial
distribution of $24.3 million from The Reserve
<http://www.reservefund.com/index.shtml> , a major money-market
investment management company.

 

 "This further confirms that ERCOT's investments are secure," CEO Bob
Kahn said.  "We are committed - with the Public Utility Commission's
backing - to ensuring the continued liquidity of the ERCOT market." 

 

ERCOT has maintained funds in money market mutual funds controlled by
The Reserve, including the Primary Fund and the U.S. Government Fund. On
Monday, September 15, 2008, the day after the bankruptcy of Lehman
Brothers Holdings, Inc., it became known that approximately 1.2% of the
Primary Fund assets were Lehman securities, which triggered a high level
of redemption request for The Reserve's funds.  On September 16, 2008,
ERCOT delivered a letter requesting that The Reserve immediately close
all of its investment accounts with The Reserve; and ERCOT has received
confirmation of this redemption order from The Reserve. 

 

Based on the information known at this time, ERCOT expects a full
recovery of all of its and its members' funds invested in The Reserve's
funds due to the priority of its redemption request; however, the timing
of full recovery is still unknown.

 

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 e-mail at
[log in to unmask] <mailto:[log in to unmask]> .

If you are receiving e-mail 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 <http://lists.ercot.com/> .

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