NOTICE DATE: February 13, 2024

NOTICE TYPE:  M-A021324-01 Financial/Credit

SHORT DESCRIPTION: Partial Implementation Details of NPRR1184, Update to Procedures for Managing Interest on Cash Collateral

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED: February 26, 2024

LONG DESCRIPTION: On February 26, 2024, Protocol language associated with Nodal Protocol Revision Request (NPRR) 1184, Update to Procedures for Managing Interest on Cash Collateral, will be partially implemented. Specifically, Phase 1 of NPRR1184 (Section 16.11.3, Alternative Means of Satisfying ERCOT Creditworthiness Requirements, except paragraph (1)(c)(iii)) will be implemented. 

Pursuant to NPRR1184, interest earned for the prior month on the average daily balances of cash collateral posted by a Counter-Party will be calculated and credited to each Counter-Party's cash collateral account on a monthly basis.  On February 26, 2024, ERCOT will credit the interest earned for the month of January 2024 to each Counter-Party's cash collateral account as applicable.

Phase 2 of NPRR1184 will be implemented at a later date.

For the details of the interest calculation, Counter-Parties can send a request to ERCOT Credit at [log in to unmask].  

ACTION REQUIRED: Counter-Parties should review their Available Credit Limit (ACL) Summary Report on February 26, 2024 to view the interest earned on cash collateral.

ADDITIONAL INFORMATION:  Pursuant to Nodal Protocol 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.

NPRR1184 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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