NOTICE DATE:  December 13, 2012
NOTICE TYPE:  M-B121312-01 NPRR
SHORT DESCRIPTION:  Implementation details for NPRR438 and NPRR458
INTENDED AUDIENCE:  ERCOT Market Participants
DAY AFFECTED:  January 1, 2013
LONG DESCRIPTION:  On January 1, 2013, ERCOT will implement Nodal Protocol Revision Request (NPRR) 438, Additional Minimum Counter-Party Qualification Requirements, Including Risk Management Capability Requirements, and NPRR458, Establishment of ERCOT's Central Counterparty Role. Both of these NPRRs were approved by the ERCOT Board on July 17, 2012.
NPRR438 establishes additional Counter-Party qualification requirements, including minimum capitalization levels, in Protocol Section 16.16, Additional Counter-Party Qualification Requirements. NPRR438 also requires that Counter-Parties submit an annual notarized officer's certification that they are in compliance with the qualification criteria. The certification form is available in Protocol Section 22 Attachment J. Certifications must be received by ERCOT no later than 120 days after the close of the fiscal year of the Counter-Party or its Guarantor.
NPRR458 establishes ERCOT as the central counterparty to all transactions in the ERCOT markets, except those involving bilateral trades or self-arranged services. NPRR458 modifies the ERCOT Protocols, including the Standard Form Market Participant Agreement (SFA), by deleting any references to ERCOT acting "as agent for" or "on behalf of" a Market Participant.
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.
NPRR438 and associated documents can be found on the ERCOT website, under Market Rules, at http://www.ercot.com/mktrules/issues/nprr/426-450/438/index.
NPRR458 and associated documents can be found on the ERCOT website, under Market Rules, at http://www.ercot.com/mktrules/issues/nprr/451-475/458/index.
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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