NPRR #639 · Revision Request
NPRR639 Correction to Minimum Current Exposure
ReasonAddresses current operational issues Market efficiencies or enhancements
Created2014-08-14
Approved2014-12-09
Sections Affected
16.11.4.1
Summary
The Minimum Current Exposure (MCE) calculation, which is part of the Total Potential Exposure (TPE) credit evaluation, fails to recognize net purchases of firm physical power, which is a crucial and widely utilized means to fulfill Load serving obligations. Not recognizing net purchases of firm physical power causes the MCE to inaccurately overstate the actual credit risk posed to the market and unfairly penalizes Market Participants who prudently hedge their Load positions.
Timeline
- Jul 3 '14
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Jul 23 '14
Listed without action at 2 meetings (Jul 23 '14 – Aug 6 '14)
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Aug 14 '14
PRS PRS MeetingPRSDeferred/Tabled Tabled Referred → CREDIT WG“To table NPRR639 and refer the issue to the Credit Work Group (Credit WG).” — Passed→ PRS for consideration
- Aug 20 '14
- Sep 3 '14
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Sep 11 '14
Listed without action at 1 meeting
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Oct 9 '14
PRS PRS MeetingPRSRecommended for Approval Recommended for approval Amended by the Oct 6 '14 ERCOT comments“To recommend approval of NPRR639 as amended by the 10/6/14 ERCOT comments.” — Passed→ PRS for IA review
- Oct 29 '14
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Nov 6 '14
PRS PRS MeetingPRSRecommended for Approval Recommended for approval Forwarded → TAC priority 2015 · rank 1195“To endorse and forward to TAC the 10/9/14 PRS Report and Impact Analysis for NPRR639 with a recommended priority of 2015 and a rank of 1195.” — Passed→ TAC for consideration
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Nov 20 '14
TAC TAC MeetingTACRecommended for Approval Recommended for approval“To recommend approval of NPRR639 as recommended by PRS in the 11/6/14 PRS Report.” — Passed→ Board for consideration
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Dec 9 '14
BOARD Board of Directors MeetingBOARDApproved Approved“To approved NPRR639 as recommended by TAC in the 11/20/14 TAC Report.” — Passed
- Jun 17 '15