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NOTICE DATE: April 30, 2021

NOTICE TYPE: M-D043021-01 - Financial/Credit

SHORT DESCRIPTION: CPS Energy Temporary Restraining Order


DAYS AFFECTED: April 30, 2021

LONG DESCRIPTION:  On April 28, 2021, CPS Energy obtained an ex parte Temporary Restraining Order (TRO) against ERCOT. Among other things, the TRO prohibits ERCOT from requiring CPS Energy to pay Default Uplift Invoices resulting from the February winter storm event and requiring the collateralization of CPS Energy’s obligation for such Invoices. A copy of the TRO is attached to this Market Notice.

The TRO will necessitate reallocation of expected default uplift amounts to exclude CPS Energy. Therefore, the Potential Uplift (PUL) component of Total Potential Exposure (TPE) will be recomputed. As detailed in Protocol Section, Potential Uplift reflects amounts expected to be uplifted within one year of the date of the calculation.

Credit reports for affected Counter-Parties posted after 4:00 pm CPT on Monday, May 3, 2021, will reflect the revised PUL amounts. PUL will continue to total $15 million in the aggregate. As disclosed in Market Notice M-A042721-01, an additional $15 million adjustment to PUL will be made on May 17, 2021.

In addition, when applicable, while the TRO is in effect ERCOT will stop allocating a pro rata share of short-paid Invoices to CPS Energy. The short-pay amount avoided by CPS Energy will be disclosed in Market Notices on days when it is necessary to short-pay Invoice Recipients. 

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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