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NPRR #323 · Revision Request

NPRR323  Correct DAM Credit Exposure Language and Enable Qualified Expiring CRRs to Offset PTP Bid Exposure

Approved Urgent sponsor Tenaska Power Services posted 2011-02-10 ercot.com
ReasonThis NPRR revises the over-collateralized requirements related to energy-only bid curves and PTP bids that may have discouraged Market Participants from participating in the DAM. Additionally, qualified expiring CRRs will be recognized has providing a credit exposure offset and may enable QSEs to mitigate congestion price exposure in Real-Time at a reduced credit cost. The changes should reduce default risk related to extreme Real-Time congestion cost by enabling Market Participants to effectively carry CRR hedges expiring in the DAM to Real-Time.
Created2011-02-17
Approved2011-03-22
Sections Affected
4.4.10
Summary
This NPRR revises the language in Section 4.4.10 to match the implemented DAM credit exposure calculations for Three-Part Supply Offers as they relate to combined cycle and to PTP bid calculations currently identified in paragraph (6)(d) of Section 4.4.10; right size the credit exposure calculation for DAM transactions submitted via the use of an energy-only bid curve to equate to the maximum exposure; and right size the credit exposure calculation for DAM PTP bids where a qualified expiring Congestion Revenue Right (CRR) offsets cleared DAM exposure.
Timeline