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NPRR #357 · Revision Request

NPRR357  Revisions to Collateral Requirements Concerning CRR Auctions (formerly "Multi-Month CRR Auction and Revisions to Collateral Requirements")

Approved Urgent sponsor Luminant posted 2011-05-04 ercot.com
ReasonThis NPRR addresses operational, risk-management and collateral concerns around the annual CRR Auction. This NPRR is designed for organized market liquidity, which creates visibility and hedging opportunities. At the same time, this NPRR seeks to right-size credit risk in the pre-auction engine and Future Credit Exposure (FCE) calculations. By allowing for more accurate cash management and more liquidity of CRRs, Market Participants can better manage their CRR activities.
Created2011-05-19
Approved2011-08-16
Sections Affected
7.57.5.17.5.27.5.5.37.5.67.5.6.17.5.6.27.5.6.39.816.11.4.5
Summary
The Nodal Protocol Revision Request (NPRR) proposes revisions to collateral requirements for Congestion Revenue Right (CRR) Auctions including a pre-CRR Auction screening process to determine the maximum potential exposure of each CRR Account Holder and a path-specific adder to be defined by an ERCOT Board-approved methodology.
Timeline