NOTICE DATE: August 1, 2023
NOTICE TYPE: M-A080123-01 Credit
SHORT DESCRIPTION: Implementation Details of NPRR1112
INTENDED AUDIENCE: All Market Participants
DAYS AFFECTED: October 1, 2023
LONG DESCRIPTION: On October 1, 2023, Protocol language associated with Nodal Protocol Revision Request (NPRR) 1112, Elimination of Unsecured Credit Limits, will be implemented.
NPRR 1112 eliminates Unsecured Credit Limits. Unsecured Credit Limits are offset against Total Potential Exposure Any (TPEA) and thereby reduces the Financial Security available to offset potential future default uplift amounts. On October 1, 2023, all Unsecured Credit Limits and guarantee amounts will be eliminated in the ERCOT credit system. If Total Potential Exposure is not covered by the posted financial security on October 1, 2023, a Market Participant will receive a request for additional collateral from ERCOT.
ACTION REQUIRED: Impacted Market Participants should provide Financial Security to ERCOT, as necessary, in anticipation of unsecured credit being eliminated in order to avoid receiving a collateral call.
ADDITIONAL INFORMATION: NPRR 1112 and its associated documents can be found on the ERCOT website.
CONTACT: If you have any questions, please contact your ERCOT Account Manager or ERCOT Credit at [log in to unmask]. 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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