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Draft NPRR – Incremental POLR Exposure CWG/MCWG ERCOT Public January 22, 2014

Draft NPRR – Incremental POLR Exposure CWG/MCWG ERCOT Public January 22, 2014. Incremental POLR Exposure.

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Draft NPRR – Incremental POLR Exposure CWG/MCWG ERCOT Public January 22, 2014

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  1. Draft NPRR – Incremental POLR Exposure CWG/MCWG ERCOT Public January 22, 2014

  2. Incremental POLR Exposure As reviewed in earlier CWG/MCWG meetings, existing exposure calculations will not reflect the risk of incremental load to a POLR in the event of a Mass Transition. At the December 16th 2013 CWG/MCWG meeting ERCOT agreed to draft an NPRR based on the following option: “ERCOT could adjust POLR TPE to reflect additional volume based on pro rata allocation of the TPE of the defaulting entity.” ERCOT Public

  3. Incremental POLR Exposure The draft NPRR adds an exposure component ILE: Incremental Load Exposure – In the event of a Mass Transition necessitated by the default of a Counter-Party, ERCOT may adjust the TPE of designated Providers of Last Resort (POLRs) to reflect the estimated Incremental Load Exposure resulting from the Mass Transition. The adjustment will be based on the POLR’s pro rata share of the total estimated ESIIDs to be transitioned applied to the defaulting Counter-Party’s RTLE . ERCOT will communicate any such adjustment to the Authorized Representative of each POLR within 24 hours of the initiation of a Mass Transition. The ILE adjustment will remain in place no more than M1b days, after which time the incremental exposure would be fully reflected in the Counter-Party’s unadjusted TPE. ERCOT Public

  4. Settlement Point Exposure Questions ERCOT Public

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