ERCOT Clarifies Credit Calculations

ERCOT issued the following clarifications on the previously reported approach to exclude the impact of last week's weather event from forward components of credit calculations.

1) The Daily Average Liability Extrapolated (DALE) calculation was held constant from Friday, February 4, 2011, through Wednesday, February 9, 2011. After February 9, ERCOT indicated that it would calculate the DALE excluding the Day-Ahead Market (DAM) runs for Operating Days February 3 and 4 from the DALE.

To exclude the DAM runs for Operating Days February 3 and 4 from the DALE, ERCOT will use Invoices generated for Operating Days subsequent to February 4 to calculate DALE. ERCOT will use the number of Invoices available (e.g. on February 10, the Invoices for Operating Days February 5 - 7 will be used; on February 11, the Invoices for Operating Days February 5 - 8 will be used, etc).

2) ERCOT will exclude Operating Days February 2 and 3, 2011, from the Average Daily Transaction Extrapolated (ADTE) calculated beginning February 18, 2011, before determining the Highest ADTE.