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NPRR #484 · Revision Request

NPRR484  Revisions to Congestion Revenue Rights Credit Calculations and Payments

Approved sponsor Luminant Energy Company, LLC posted 2012-09-28 ercot.com
ReasonThe current credit calculations collateralize in a uniform manner and do not recognize that different congestion paths have various levels of risk. This can lead to under-collateralization of the riskiest paths, leaving the market exposed, or significant over-collateralization, therefore increasing the cost of participation for many Market Participants. In addition, this proposal allows Market Participants to post collateral in lieu of pre-paying for forward awarded CRRs.
Created2012-10-18
Approved2013-03-19
Sections Affected
7.5.5.39.99.9.19.9.216.11.4.5
Summary
This Nodal Protocol Revision Request (NPRR) replaces the Congestion Revenue Right (CRR) Auction credit calculations with path-specific exposure calculations based on Day-Ahead Market (DAM) clearing prices over a rolling period and revises the Future Credit Exposure (FCE) calculations for CRR Account Holders; which results in a modification to the payment schedule for CRRs.
Timeline