DRAFT

Credit Working Group

ERCOT

Meeting Minutes

February 18, 2015 (Face-to-Face Meeting, MET Center Room 206B)

Attendance

Independent Power Marketers / Mark Holler – Tenaska Power Services Co.
Independent Generators / Valerie Webster – IPR-GDF SUEZ Energy Marketing NA Inc.
Tanya Rohauer – Calpine Corp
Independent Retail Electric Providers / Bill Barnes – Reliant Energy
Investor Owned Utilities / Abu Moavu – Luminant Energy
Municipals / Michael Mathews – Bryan Texas Utilities (BTU)
Donald Meek – Austin Energy
Cooperatives / Loretto Martin – Lower Colorado River Authority
Others / Shams Siddiqi
Josephine Wan
Clint Sandidge
David Hastings
Ryan Evans
Amanda Frazier
Matt Robson
Ryan Mychel
Jeff Brown
Casey McCowen / Sherry Looney
Pam Shaw
Adrianne Brandt
Clayton Greer
James Spaulding
Bob Helton
Sandy Morris
Don Daugherty
Malcolm Ainspan
ERCOT Staff / Mark Ruane
Vanessa Spells
Suresh Pabbisetty
Spoorthy Papudesi / Julio Dovalina
Rizaldy Zapanta
Kelly Landry

The meeting was called to order at 9:30 a.m.

Approval of Meeting Minutes – January 20, 2015

Loretto Martin submitted a motion to approve the January 20, 2015 minutes. Bill Barnes seconded the motion. Motion passed.

Review of NPRRs for Credit Implications

The following NPRRs were reviewed:

672 / Clarification of EMR Status
678 / Posting of Wind Peak Average Capacity Percentage Data
679 / ONOPTOUT for RUC Given After the Adjustment Period

Mark Holler submitted a motion that the above NPRRs have no credit implications. Ms. Martin seconded the motion. Motion passed.

ACL Proposal

Abu Moavu presented to the group the draft of the NPRR changing the determination of ACL. The group agreed to review and discuss the NPRR in the next meeting.

Seasonal Adjustment Factor

Mark Ruane presented the proposed approach to estimating the Seasonal Adjustment Factor (SAF) which is based on the ratio of historical prices to the previous month for the months of June, July and August. The group agreed to review and potentially vote on the proposal in the next meeting.

NPRR 638 Updated Backcasting

Suresh Pabbisetty presented to the group the updated back-casting results on NPRR 638. The group requested ERCOT staff to provide Counter-Party level data broken down into counter-party groups e.g. generators, load, traders. Mr. Ruane also said that Counter-Party specific data would also be available upon request. Bill Barnes told the group that he will update PRS on the status of NPRR 638.

MCWG Charter

Mr. Barnes presented to the group for discussion the current MCWG Charter pointing out salient points in the charter. He added that the charter requires that MCWG provide the F&A a summary of all reports provided to WMS.HeH

Market Risk Appetite Goal

Donald Meek discussed the need to develop a market risk appetite goal and the processes associated with the development of such. The group agreed to discuss further in the next meeting.

Letter of Credit Concept

Mr. Meek presented to the group various mitigation options to address systemic market risk in ERCOT including the establishment of a credit facility. The group will discuss further in the next meeting.

Credit Risk Impacts and Modeling Sub-Group

Mr. Pabbisetty informed the group of the purpose and objective of the group. Mr. Meek asked any interested member to inform ERCOT staff. The group will discuss in detail the structure of the sub-group in the next meeting.

Credit Updates

Mr. Ruane informed the group about updates on approved and outstanding change requests and other credit assignments. Mr. Ruane also informed the group that the capacity forecast report is expected to be posted on a daily basis commencing on the week of February 23rd. He also reminded the group about that audited financials and the SFA Attachment A are due by April 30th for Counter-Parties with December 31, 2014 financial year-ends.

The meeting was adjourned at 12:30 p.m.

ERCOT Public