NOTICE DATE: March 27, 2015

NOTICE TYPE: M-A032715-01 CRR

SHORT DESCRIPTION: 2015.MAY.Monthly.Auction

INTENDED AUDIENCE: CRR Account Holders and Counter-Parties

DAYS AFFECTED: March 27 – April 16, 2015

LONG DESCRIPTION: The credit submission window for the 2015.MAY.Monthly.Auction opened at 00:00:01 CPT on March 27, 2015, and the auction bid window will open at 00:00:01 CPT on April 7, 2015. The credit and bid submission windows will close at 17:00:00 CPT on April 9, 2015.

Congestion Revenue Right (CRR) Account Holders associated with Counter-Parties that fail to lock credit, and who do not currently own CRRs in the auction period, will have their portfolios removed from this auction at the close of the transaction submission window. Portfolios removed for this reason will not be counted towards any auction transaction limits. Per Section 7.5.2(2)(b) of the ERCOT Protocols, ERCOT will enforce a volume limitation of 7,500 market transactions (bids and offers) per account holder.

Per Section 7.5.2(2)(e), if the total number of market transactions submitted for the auction exceeds the maximum number of transactions available for the market, currently 200,000, CRR Account Holders will be notified via Operator Message that a transaction adjustment period (second round of submissions) will be required. Account Holders whose total bids and offers exceed the maximum number of allowable transactions determined for the transaction adjustment period will have their portfolios removed from the auction and will be required to resubmit a new portfolio with the total number of transactions less than or equal to the transaction adjustment period limit. The preliminary allocated CRR transaction limit is 886.

Per Section 7.5.2(2)(a), after the transaction submission window is closed, the CRR system will send a message to all CRR Account Holders regarding the available number of transactions for Participating CRR Account Holders in the event of a transaction adjustment period. CRR Account Holders are not included in the CRR transaction volume limitation process if they do not own open CRR positions or they do not have credit allocated to the CRR Auction. If a transaction adjustment period is necessary, only those CRR Account Holders who have open positions or have credit allocated to the auction will be able to submit bids.

If needed for the 2015.MAY.Monthly.Auction, the transaction adjustment period bid window will be open from 18:00:00 CPT on April 9, 2015, until 17:00:00 CPT on April 10, 2015.

Per Section 7.5.3(5), on April 2, 2015, ERCOT will post the Monthly Path Specific Adders report for the 2015.MAY.Monthly.Auction on the CRR Page on the MIS and on the CRR Page on ERCOT.com.

Results for the 2015.MAY.Monthly.Auction will be posted to the Market Information System (MIS) on April 16, 2015, as indicated on the CRR Activity Calendar. A Market Notice will be sent if the results are posted on a different date.

ADDITIONAL INFORMATION: The Baseload CRRs used for the 2015.MAY.Monthly.Auction may be found in the Monthly Auction Notice folder on the CRR Page on the MIS and on the CRR Page on ERCOT.com.

Information about proxy Settlement Points used in calculating CRR credit exposure can be found in the “DAM Proxy Settlement Points” list posted at http://www.ercot.com/services/rq/credit/index.html.

Specifications for the equipment and interfaces necessary to participate in the CRR Auction are included in the CRR Market User Interface Specifications document, which is located on the CRR Page on the MIS and on the CRR Page on ERCOT.com (note that the CRR application currently supports Internet Explorer (IE) version 6, 7, or 8 and Java Runtime Environment (JRE) 1.6). IE Configuration Guides are located on the User Guides Page on ERCOT.com, under Public Data. Bids and Offers may be submitted in increments of one-tenth (.1) MW. The minimum Option bid price is $.01.

Per Section 7.5.5.3(4), ERCOT may review preliminary auction results to ensure that Counter-Parties have sufficient credit limits to cover post auction credit requirements. If a Counter-Party does not have a sufficient credit limit for post auction credit requirements, ERCOT may send a collateral request that is due by 15:00 CPT on the next Bank Business Day. If sufficient collateral is not received by 15:00 CPT on the next Bank Business Day, ERCOT may set an associated CRR Account Holder’s credit limit to zero in the CRR application such that the Counter-Party’s bids and negatively priced offers in the CRR Auction are voided and rerun the CRR Auction without that Counter-Party’s activity. Collateral calls pursuant to Section 7.5.5.3(4)(a) may be issued on a non-Business Day to minimize impact on CRR timelines.

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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