NOTICE DATE: December 19, 2022
NOTICE TYPE: M-C121922-01 Financial / Credit
SHORT DESCRIPTION: The Potential Uplift amounts and credit Invoices attributable to Brazos short pays will be removed from Counter-Parties' Total Potential Exposure (TPE) effective on Tuesday, December 20, 2022.
INTENDED AUDIENCE: All Counter-Parties
DAYS AFFECTED: December 20, 2022
LONG DESCRIPTION: Under ERCOT Nodal Protocols § 16.11.1, a Counter-Party (CP) must, at all times, maintain its Financial Security at or above the amount of its TPE minus its Unsecured Credit Limit. On a daily basis, ERCOT monitors and calculates each CP’s TPE. ERCOT Nodal Protocols § 16.11.4.1 sets forth the methodology for calculating a CP’s TPE. Included in this calculation is a CP’s Potential Uplift. A CP’s Potential Uplift is the sum of (a) amounts expected to be uplifted within one year of the date of the calculation; and (b) the lesser of: (i) 25% of amounts expected to be uplifted beyond one year of the date of the calculation; or (ii) five years’ worth of uplift charges. Credit Invoices owed to CPs attributable to the Brazos short pays were included in the Outstanding Invoice Amounts (OIA).
Per the Market Notice issued on December 16, 2022, “M-A121622-01 ERCOT has received the first payment from Brazos Electric Power Cooperative, Inc. under the court-approved Amended Chapter 11 Plan of Reorganization,” ERCOT plans to distribute each Market Participant's Effective Date Payment per the Settlement Agreement on Tuesday, December 20, 2022.
The Potential Uplift amount and credit Invoices owed to CPs that are attributable to the Brazos short-pay will be removed from their TPE effective on Tuesday, December 20, 2022.
Additionally, by December 20, 2022, ERCOT anticipates receiving $500,000 from a letter of credit associated with amounts owed to the market by Volt Electricity Provider, LP (Volt). For practical purposes and given the materiality of the amounts, the credit Invoices attributable to amounts owed by Volt Electricity will also be removed.
ADDITIONAL INFORMATION: CPs can find updated Potential Uplift amounts and TPEs on their TPE Summary Reports and credit Invoices on their EAL Detail Reports.
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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