NOTICE DATE:  August 31, 2012
NOTICE TYPE:  M-A082812-02 NPRR
SHORT DESCRIPTION:  Implementation details for NPRR357, NPRR430, and related Other Binding Document - Updated FAQ document
INTENDED AUDIENCE:  ERCOT Market Participants
DAY AFFECTED:  September 13, 2012

LONG DESCRIPTION:  Based on recent feedback and questions from Market Participants about the example credit calculations to be implemented in September 2012, ERCOT has updated the attached FAQ document supporting NPRR357/NPRR430.

On September 13, 2012, ERCOT will implement Nodal Protocol Revision Request (NPRR) 357, Revisions to Collateral Requirements Concerning CRR Auctions (formerly "Multi-Month CRR Auction and Revisions to Collateral Requirements"), NPRR430, Corrections Related to NPRR357, Revisions to Collateral Requirements Concerning CRR Auctions and Clarification to Collateral Requirements, and related Other Binding Document, Credit Formulas and Detail Whitepaper for Day-Ahead Market and Congestion Revenue Rights Auction.

NPRR357, which was approved by the ERCOT Board on August 16, 2011, revises collateral requirements for Congestion Revenue Right (CRR) Auctions and adds a pre-auction screening process to determine the maximum potential exposure of each CRR Account Holder (CRRAH).

NPRR430, which was approved by the ERCOT Board on April 17, 2012, corrects some formula issues found in NPRR357 that result in the overcollateralization of CRRAHs and Counter-Parties. NPRR430 also removed equations to calculate exposure for the pre-auction screening for each CRRAH from the Protocols. Such equations are now included in the Other Binding Document, "Credit Formulas and Detail Whitepaper for Day-Ahead Market and Congestion Revenue Rights Auction".

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.
NPRR357 and associated documents can be found on the ERCOT website, under Market Rules, at http://www.ercot.com/mktrules/issues/nprr/351-375/357/index.
NPRR430 and associated documents can be found on the ERCOT website, under Market Rules, at http://www.ercot.com/mktrules/issues/nprr/426-450/430/index.
The "Credit Formulas and Detail Whitepaper for the Day-Ahead Market and Congestion Revenue Rights Auction" Other Binding Document can be found on the ERCOT website, under Market Rules, at http://www.ercot.com/mktrules/obd/obdlist.
Additional details are provided in the attached "NPRR357, NPRR430 FAQs - Updated 08312012".
Information on upcoming releases can be found on the ERCOT Multi Year Project Priority List (PPL) at http://www.ercot.com/services/projects/.
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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