NOTICE DATE: March 12, 2014

NOTICE TYPE: M-A031214-01 Financial/Credit

SHORT DESCRIPTION: Total Potential Exposure (TPE) calculations affected by ERCOT system outages

INTENDED AUDIENCE: ERCOT Counter-Parties

DAY AFFECTED: March 12, 2014

LONG DESCRIPTION: Per ERCOT Protocol Section 16.11.4.6(c), “If all or part of a Counter-Party’s ACLC and/or ACLD cannot be computed due to an ERCOT computer system failure, then ERCOT shall estimate ACLC and/or ACLD for that Counter-Party and provide the information used to determine such estimates to that Counter-Party. If all or part of ACLC and/or ACLD cannot be estimated with current data, then the most recently available values shall be used to determine the Counter-Party’s ACLC and/or ACLD.”

The ERCOT system outages commencing on March 11, 2014 have impacted the ability to calculate Counter-Party Total Potential Exposure (TPE) and Available Credit Limit (ACL). Counter-Parties should be aware that Real-Time Market estimated values for Operating Day March 11, 2014 are not included in the following components of the TPE and ACL calculations:

· Real-Time Liability Forward (RTLF)

· Real-Time Liability Computed Not Settled (RTLCNS)

The most recently available values used in RTLF and RTLCNS for Operating Dates prior to March 11, 2014 continue to be utilized in the calculations. ERCOT will send a follow-up Market Notice when these credit calculation inputs are restored.

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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