M2:Shortened RTM Settlement Timeline

Vanessa Spells CWG/MCWG MeetingApril 24, 2013

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NPRR 509

• NPRR 509, Shortened RTM Settlement Timeline, which was approved by the ERCOT Board on March 19, 2013, reduces the posting date for the Initial Settlement Statement from nine days after the Operating Day to seven days after the Operating Day, and reduces the posting date of the Final Settlement Statement from the 59th day after the Operating Day to the 57th day after the Operating Day. – Phase 1 reduces the posting requirement for the Initial

Settlement Statement to eight days after the Operating Day, starting with Operating Day April 1, 2013. 

• The first affected RTM Initial Settlement Statement is for Operating

Day April 1, 2013 and will be posted on April 9, 2013. 

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NPRR 509

– Phase 2 further reduces the posting requirement for the Initial Settlement Statement to seven days after the Operating Day.

• Additionally, the posting date of Final Settlement Statements is reduced from the 59th day after the Operating Day to the 57th day after the Operating Day to compensate for the two days eliminated from the Initial Settlement Statement posting.

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Credit Calculation

• The following components of the Estimated Aggregate Liability (EAL) calculation relate to the settlement timeline:

– M2 = 12 Multiplier for URTA. Provides for unbilled historical activity based on historical activity. Per Protocols, M2 is recommended by TAC and approved by the ERCOT Board.

– OUT - Outstanding Unpaid Transactions. Outstanding, unpaid transactions of the Counter-Party, which include (a) outstanding Invoices to the Counter-Party; (b) estimated unbilled items to the Counter-Party, to the extent not adequately accommodated in the RTLE calculation (including resettlements and other known liabilities); and (c) estimated CRR Auction revenue available for distribution for operating days in the previous two months, to the extent not invoiced to the Counter-Party. Invoices will not be considered outstanding for purposes of this calculation the Business Day after that Invoice payment is received

• UFTA = Average of CP level total of RTM Final Statements of QSEs by operating date * 60 + Average of CP level total of RTM True-Up Statements of QSEs by operating date * 180

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Credit Calculation Proposal

• When Phase 2 of NPRR 509 is implemented:– Reduce M2 from 12 to 10 days (initial settlement)– Reduce the number of days in the UFTA for Real Time Final

Statements from 60 days to 58 days

• Next Steps:– WMS and TAC Review/Approval