Executive Summary
Today’s Credit Working Group focused on NPRR1088 (making credit requirements reflect more recent activity), NPRR1067(Part of ERCOT’s response to the PJM Green Hat default) and one future NPRR related to default uplift methodology.
Notes
NPRR1088 which would adjust the calculation of credit for market participants was discussed. The original NPRR adjusted credit calculations for all market participants, but the real discussion was on a set of edits that only adjusts the calculation for trading only entities. The conclusion of the discussion was that (upon the expected approval of the original sponsor) the original NPRR will be withdrawn at the next PRS and the set of edits will be introduced as a new NPRR.
NPRR1067 (Market Entry and Continued Participation requirements) was briefly mentioned. This has sat dormant for a long time, but ERCOT committed to bringing it back soon, as the PUC mentioned it at the Work Session and it is thus a priority.
Default Uplift Methodology. There is no current NPRR, but many market participants are unhappy with how much of default uplifts are born by CRR participants. It would be a stretch to say that there is a consensus, however. DC Energy has committed to write an NPRR that makes ERCOT default uplift process more “PJM-like”, so look for that in an upcoming PRS.
AGENDA
Discussed Issues
- NPR1088 (Changing Credit Requirements for traders)
- NPRR1067 (Market Entry and Continued Participation Requirements)
- Default Uplift Methodology
