NOTICE DATE:  February 10, 2011

NOTICE TYPE:  W-A020311-02 Financial/Credit

SHORT DESCRIPTION:  Clarification on credit updates

INTENDED AUDIENCE:  Counter-Parties and QSEs   

DAY AFFECTED:  February 10, 2011

LONG DESCRIPTION:  The following are clarifications on the approach outlined in Market Notice W-A020311-01 to exclude the impact of last week’s weather event from forward components of credit calculations.  

1)    DALE – Per Market Notice W-A020311-01, the Daily Average Liability Extrapolated (DALE) calculation was held constant from Friday, February 4, 2011, through Wednesday, February 9, 2011. After February 9, ERCOT indicated that it would calculate the DALE excluding the Day-Ahead Market (DAM) runs for Operating Days February 3 and 4 from the DALE. 

To exclude the DAM runs for Operating Days February 3 and 4 from the DALE, ERCOT will use Invoices generated for Operating Days subsequent to February 4 to calculate DALE. ERCOT will use the number of Invoices available (e.g. on February 10, the Invoices for Operating Days February 5 – 7 will be used; on February 11, the Invoices for Operating Days February 5 – 8 will be used, etc).

2)    ADTE – ERCOT will exclude Operating Days February 2 and 3, 2011, from the Average Daily Transaction Extrapolated (ADTE) calculated beginning February 18, 2011, before determining the Highest ADTE.

CONTACT:  If you have any questions, please contact Vanessa Spells at [log in to unmask], (512) 225 7014, or Rizaldy Zapanta at [log in to unmask], (512) 225-7015. You may also send credit inquiries to [log in to unmask].

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