ERCOT·WATCH Search ercot.com  ⌕
NPRR #140 · Revision Request

NPRR140  Revision to CRR Obligation Margin Adder

Approved sponsor J. Aron posted 2008-07-14 next action Consideration ercot.com
ReasonCurrent margin adder is excessive given the level of risk provided by the market and is well in excess of margin requirements of other markets. For instance, a Congestion Revenue Right (CRR) that is purchased for $0.10/MW will be margined $10.00 in ERCOT ($87,600 annually). That comparable CRR would be margined approximately $0.23 in the New York Independent System Operator (NYISO) market and even less in the Midwest Independent System Operator (MISO) market.
Created2008-08-21
Approved2009-01-20
Sections Affected
16.11.4.5Determination of the Counter-Party Future Credit Exposure
Summary
Revises the margin adder for Point-to-Point (PTP) Obligations to a value "X" to be determined by the subcommittee process.
Timeline