CWG MCWG 11/11/21 - CIMView

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CWG MCWG 11/11/21

Table of Contents

Executive Summary

Nothing particularly exciting in today’s CWG. A couple NPRRs were deemed to have no credit problems, NPRR1067 (improving background checks and credit scoring) is still waiting on ERCOT staff finishing its securitization work, and NPRR1088 (adjusting forward factors) is waiting for a full Shams Siddiqui rewrite so that it can be revived as a new, easier to read NPRR.



NPRR1103 (Securitization details for Competitive Entities defaults) was discussed and approved with no changes

NPRR1104 (As built for credit calculations) was discussed and approved; the main point was that this NPRR will *NOT* result in any changes to the ERCOT credit system; it only changes the protocols so that the protocols reflect what the credit system is currently doing.  Further, the general consensus is that the credit system is doing what should be done and the protocols are currently in error and will be fixed by this NPRR.

NPRR1067 (Market Entry and Continued Participation requirements) was discussed.  ERCOT says that it will be early 2022 before they can take it up, as they are very busy with securitization.  This NPRR needs to be adjusted to account for NPRR1073 (which has been approved).  The NPRR deals with background checks and credit scoring of market participants.  Market participants asked for (after securitization) highlights on what parts have already been enacted by NPRR1073 from ERCOT, as well as an overview of the credit scoring process.  ERCOT will get to that in Q1 of next year.  

NPRR1088 (Adjust forward factors)  Shams will write a new NPRR for the next CWG meeting and when that NPRR exists, CWG will recommend rejection of NPRR1088 (or it will be withdrawn) in favor of the new NPRR.  

Discussed Issues

  • NPRR1088 (adjust credit requirements for traders)
  • NPRR1067 (market entry and continued participation requirements)
  • NPRR1103 (Securitization M)
  • NPRR1104 As Built for RTLE calculation – link goes to ERCOT page