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Financier Seeks Posting Of Counter-Parties' Maximum MWh Activity In ERCOT Under New NPRR

July 23, 2018

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Reporting by Paul Ring • ring@energychoicematters.com

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Citigroup Energy, Inc. has sponsored and filed with ERCOT Nodal Protocol Revision Request (NPRR) 887 which would create a new Market Information System (MIS) Certified Area posting which it said would provide insight to the potential risk associated with default uplift charges to each Counter-Party, including each active Counter-Party’s Maximum MWh Activity

"The risk to a Counter-Party is currently difficult to quantify, due to the byzantine nature of the default uplift formula. This NPRR will provide transparency to the calculation which will help all Counter-Parties to assess risk," Citigroup said in the NPRR

Under the NPRR, the protocols would be amended to provide that ERCOT post the following additional Counter-Party information as follows: "ERCOT shall post once each month on the MIS Certified Area each active Counter-Party’s Maximum MWh Activity, Maximum MWh Activity Ratio Share, and the individual components of Maximum MWh Activity, as well as the market’s Maximum MWh Activity Total, as defined by Section 9.19.1, Default Uplift Invoices. Each month’s report shall be updated with Final and True-Up Settlement data when ERCOT’s systems contain the necessary information to complete the report with the updated data."

Currently, the protocols require ERCOT to post the following information: "ERCOT shall post twice each Business Day on the Market Information System (MIS) Certified Area each active Counter-Party’s credit monitoring and management related reports as listed below. The first posting shall be made by 1200 and the second posting shall be made as close as reasonably possible to the close of the Business Day but no later than 2350. The reports listed in items (f) and (g) below are not required to be included in both first and second posting if the Counter-Party has no active CRR ownership. The reports listed in items (c), (d), (e), (f), and (g) below are not required to be included in the second post if there are no changes to the underlying data. ERCOT shall post one set of these reports on the MIS Certified Area on each non-Business Day for which an ACL is sent.

(a) Available Credit Limit (ACL) Summary Report;

(b) Total Potential Exposure (TPE) Summary Report;

(c) Minimum Current Exposure (MCE) Summary Report;

(d) Estimate Aggregate Liability (EAL) Summary Report;

(e) Estimated Aggregate Liability (EAL) Detail Report;

(f) Future Credit Exposure for CRR PTP Obligations (FCEOBL) Summary Report; and

(g) Future Credit Exposure for CRR PTP Options (FCEOPT) Summary Report."

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