Timeline for Activities in Breach CWG/MCWG ERCOT Public September 25 2013
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 18.104.22.168, M1 is the forward risk multiplier for DALE (day-ahead exposure) and RTLE (real-time exposure) • Currently set at 20 days.
Timeline for Activities in Breach ERCOT Public
Timeline for Activities in Breach ERCOT Public ERCOT Public
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.
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.
Timeline for Activities in Breach Questions ERCOT Public