NOTICE DATE:  July 5, 2011
NOTICE TYPE:  M-A070511-01 NPRR
SHORT DESCRIPTION:  Implementation details of NPRR323
INTENDED AUDIENCE:  ERCOT Market Participants
DAY AFFECTED:  July 26, 2011

LONG DESCRIPTION:  On July 26, 2011, ERCOT will partially implement Nodal Protocol Revision Request (NPRR) 323, Correct DAM Credit Exposure Language and Enable Qualified Expiring CRRs to Offset PTP Bid Exposure, which was approved by the ERCOT Board on March 22, 2011. NPRR323 revises the language in Protocol Section 4.4.10, Credit Requirements for DAM Bids and Offers, to:

1.    Match the implemented Day-Ahead Market (DAM) credit exposure calculations for Three-Part Supply Offers as they relate to combined cycle and to Point-to-Point (PTP) bid calculations currently identified in paragraph (6)(d) of Protocol Section 4.4.10;

2.    Ensure that the credit exposure calculation for an energy-only bid curve does not exceed the maximum exposure under the curve;

3.    Right size the credit exposure calculation for DAM PTP bids where a qualified expiring Congestion Revenue Right (CRR) offsets cleared DAM exposure; and

4.    Authorize ERCOT to use a percentile other than the 90th percentile of any positive hourly difference of Real-Time Settlement Point Price and Day-Ahead Settlement Point Price over the previous 30 days of the hour in determining credit exposure per paragraph (6)(b) in evaluating DAM Energy-Only Offers.

The July 26, 2011, implementation will address the issues in items 1, 3 and 4 above. Item 2 will be addressed with a later implementation in August 2011. A follow-up Notice will be sent when this implementation date is finalized.

Further details are included in the attached NPRR323 Implementation Supplement.
ADDITIONAL INFORMATION:  Pursuant to Protocol Section 21.6, Nodal Protocol Revision Implementation, ERCOT is required to provide notice as soon as practicable, but no later than ten days prior to implementation.
NPRR323 and associated documents can be found on the ERCOT website, under Market Rules, at http://www.ercot.com/mktrules/issues/nprr/301-325/323/index.
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]<mailto:[log in to unmask]>.
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