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ERCOT Public Breach Activities Timeline - September 25, 2013

Explore the timeline for activities in breach within ERCOT, including financial impacts and insights on risk management. Delve into the considerations and potential outcomes related to default and mass transition scenarios.

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ERCOT Public Breach Activities Timeline - September 25, 2013

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  1. Timeline for Activities in Breach CWG/MCWG ERCOT Public September 25 2013

  2. Timeline for Activities in Breach In addition to the settlement period for the Real-Time Market, collateral is also held against the period of time over which a default and mass transition might be executed. • Under Protocols Section 16.11.4.1, M1 is the forward risk multiplier for DALE (day-ahead exposure) and RTLE (real-time exposure) • Currently set at 20 days.

  3. Timeline for Activities in Breach

  4. Timeline for Activities in Breach ERCOT Public

  5. Timeline for Activities in Breach ERCOT Public ERCOT Public

  6. Timeline for Activities in Breach Financial impact • Based on September 18th data, reducing M1 by two days (to reflect elimination of the cure period) reduced TPE by $13 million or 2.3%. • EAL is reduced by $32 million or 22.2%, but most of the reduction is offset by minimum collateral requirements.

  7. Timeline for Activities in Breach Other considerations • Due to system constraints at both ERCOT and TDSPs, there is a risk that a large mass transition might take considerably longer than estimated. ERCOT is currently running system tests to better gauge the potential number of transitions that can be processed. • Elimination of the two-day cure period would require re-execution of the SFA by all Market Participants, potentially a lengthy process.

  8. Timeline for Activities in Breach Questions ERCOT Public

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