NOTICE DATE: September 6, 2023

NOTICE TYPE: M-A080123-02 Settlements

SHORT DESCRIPTION: Implementation Details of NPRR1112 (Settlement-Related)

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) which 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.

In addition, beginning October 1, 2023, the Available Credit Limit (ACL) Summary Report (EMIL ID: FNC-470-SG, Report Type ID: 11173) (Protocol Section 16.11.4.7, Credit Monitoring and Management Reports) will have the following changes: 

  1. Collateral and Unsecured Credit Summary section will be renamed to Collateral Summary;
  2. Total Secured Collateral column will be renamed to Total Financial Security;
  3. Guarantee and Unsecured Credit Limit columns will be removed;
  4. TPES in Excess of Secured Collateral will be renamed to TPES in Excess of Collateral;
  5. Outstanding Secured Collateral Request will be renamed to Outstanding Collateral Request;
  6. Additional Secured Collateral Required will be renamed to Additional Collateral Required;
  7. TPES as % of Secured Collateral will be renamed to TPES as % of Collateral; and
  8. TPEA as % of Any Collateral and Unsecured Credit Limit will be renamed to TPEA as % of Any Collateral.

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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dg


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