ERCOT Says It Will Use "Available Discretion" To Adjust Counter-Parties' Collateral Case-by-Case, To Mitigate Disruption To Market Which Would Otherwise Occur From Defaults
February 19, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
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ERCOT said in a market notice that, "In an attempt to protect the overall integrity of the ERCOT market by mitigating the disruption of defaults, ERCOT is using its available discretion under the Protocols to adjust collateral for Counter-Parties (CPs) on a case-by-case basis, dependent upon the CP’s activity in and risk to the market."
"ERCOT encourages CPs and their represented entities (e.g., Resource Entities; Load Serving Entities) to work through available financial or business transition options during this time," ERCOT said in the notice
"In addition, ERCOT encourages Qualified Scheduling Entities (QSEs) to contact [ERCOT's credit email address] in advance of an Invoice payment due if they believe they may be unable to pay the Invoice in part or in full. This will allow ERCOT to prepare to use available collateral to cover any shortfall," ERCOT said in the notice