NOTICE DATE:  March 21, 2011

NOTICE TYPE:  W-A032111-01 Financial/Credit

SHORT DESCRIPTION:  Interest payments on cash collateral

INTENDED AUDIENCE:  Treasury or Accounts Payable personnel

DAY AFFECTED:  March 23, 2011

LONG DESCRIPTION:  Counter-Parties (CPs), Congestion Revenue Right Account Holders (CRRAHs), Qualified Scheduling Entities (QSEs) and Transmission Congestion Right (TCR) Owners who had cash collateral posted with ERCOT (in accordance with Section 16.11.3 (d)) in 2010 will receive a Fed Wire on March 23, 2011, from ERCOT for any unpaid interest accrued on their cash collateral through December 31, 2010.

ERCOT will send interest payments based on the amounts reported on the IRS Form 1099. The interest payment on March 23, 2011, will be reduced by any interest paid prior to December 31, 2010.

Going forward, ERCOT plans to pay interest on cash collateral on a semi-annual basis (approximately August and February). 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].

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