NOTICE DATE:  August 25, 2015

NOTICE TYPE:  M-B082515-01 NPRR

SHORT DESCRIPTION:  Incorporation of the ERCOT Creditworthiness Standards into the Protocols

INTENDED AUDIENCE:  ERCOT Counter-Parties

DAY AFFECTED:  September 25, 2015

LONG DESCRIPTION:  NPRR690, Incorporation of Creditworthiness Standards into Protocols was approved by the ERCOT Board of Directors on June 9, 2015.

This NPRR incorporates the ERCOT Creditworthiness Standards, which are currently an Other Binding Document (OBD), into the Protocols and deletes references to the existing OBD. 

In addition, this NPRR: (a) corrects discrepancies between the Protocols and the current ERCOT Creditworthiness Standards relating to the requirements for receiving unsecured credit; (b) eliminates the annual Finance and Audit Committee review process for letter of credit concentration limits, in favor of the change control process used elsewhere in the Protocols; (c) corrects a discrepancy between the requirements for Electric Cooperatives (ECs) and applicable regulatory standards; and (d) aligns Protocol language with the current ERCOT Creditworthiness Standards to clarify that audited financial statements must be prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) or International Accounting Standards (IAS).

ADDITIONAL INFORMATION:  Pursuant to Protocols 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.

NPRR690 and associated documents can be found on the ERCOT website.

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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