NOTICE DATE:  February 12, 2013



NOTICE TYPE:  W-A021213-01 Financial/Credit



SHORT DESCRIPTION:  Interest payments on cash collateral



INTENDED AUDIENCE:  Treasury or Accounts Payable personnel



DAY AFFECTED:  February 14, 2013



LONG DESCRIPTION:  On February 14, 2013, Counter-Parties (CPs) who had cash collateral posted with ERCOT (in accordance with Section 16.11.3 (d), Alternative Means of Satisfying ERCOT Creditworthiness Requirements) in 2012 will be paid interest accrued on their cash collateral through December 31, 2012.



*         Counter-Parties that are due less than $50.00 will receive credit in their prepay account, which will be disclosed on their Available Credit Limit (ACL) Summary Report posted on the MIS.



*         Counter-parties that are due $50.00 or more will receive a Fed Wire for interest due.



ERCOT will send interest payments as reported on the IRS Form 1099.



ERCOT plans to pay interest on cash collateral on a semi-annual basis (approximately August 2013 and February 2014). 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]<mailto:[log in to unmask]>.



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