NOTICE DATE:  July 2, 2014           

NOTICE TYPE:  M-A070214-01 Financial/Credit

SHORT DESCRIPTION:  Revision to Unbilled Finals Amount (UFA) Credit Parameters effective on July 13, 2014

INTENDED AUDIENCE:  Counter-Parties

DAY AFFECTED:  July 13, 2014

LONG DESCRIPTION:  The implementation of NPRR570, Reduce RTM Settlement Timeline to Operating Day Plus Five, was completed on May 1, 2014, and impacts a component of the credit exposure calculation beginning July 13, 2014. The UFA component of Outstanding Unpaid Transactions (OUT) provides for Counter-Party level exposure extrapolated from Real-Time Final Statements.  NPRR570 reduced the posting date of the Final Settlement Statements by two days, from the 57th day after the Operating Day to the 55th day after the Operating Day.  Consequently, the multiplier for UFA will decrease from 58 to 56 days to align with the revised Final Settlement Statement timeline. The updated calculation for UFA is shown below:

EAL_q = Max [(IEL_q during the first 40-day period + DALE_q), (Max {RTLE_q during the previous 40-day period} + DALE_q), (RTLF_q + DALE_q)] + Max [RTLCNS_q, Max {URTA_q during the previous 40 day period}] + OUT_q + PUL_q

OUT_q  = Outstanding Unpaid Transactions for QSEs

OUT_q  = OIA + UFA  + UTA + UDAA + CARD

OIA = Outstanding Invoice Amount or Counter-Party level sum of (invoice amount – payment amount) of all invoices of QSEs

UFA = Unbilled Finals Amount or average of Counter-Party level total of Real Time Final Statements of QSEs by Operating Day * 56

UTA = Unbilled True-Up Amount or  average of Counter-Party level total of Real Time True-Up Statements of QSEs by Operating Day * 180

UDAA = Unbilled Day Ahead Amount or sum of Counter-Party level of Day Ahead Market (DAM) estimates of QSEs by Operating Day for all DAM completed and not settled Operating Days

CARD = CRR Auction Revenue Distribution or Counter-Party level estimated credit of CRR Auction revenue distribution

ADDITIONAL INFORMATION:  NPRR570 and associated documents can be found on the ERCOT website, under Market Rules, at http://www.ercot.com/mktrules/issues/nprr/551-575/570.

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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