DRAFT
Credit Working Group
ERCOT
Meeting Minutes
April 22, 2015 (Face-to-Face Meeting, MET Center Room 206A)
Attendance
Independent Generators / Valerie Webster – IPR-GDF SUEZ Energy Marketing NA Inc.Tanya Rohauer – Calpine Corp
Independent Retail Electric Providers / Bill Barnes – Reliant Energy
Loretto Martin – Direct Energy LP
Independent Power Marketers / Mark Holler – Tenaska Power Services Co.
Municipals / Donald Meek – Austin Energy
Others / Shams Siddiqi
Seth Cochran
Josephine Wan
Ryan Evans
Loretto Martin
Jack Brown
Ryan Michel
Jennifer Beville / Casey McGowen
Bob Wittmeyer
Richard Ramirez
Sandy Morris
Matt Robson
Heather Lottering
ERCOT Staff / Mark Ruane
Vanessa Spells
Suresh Pabbisetty
Spoorthy Papudesi
Rizaldy Zapanta
Maruthi Gaddam / Julio Dovalina
Kelly Landry
Cory Phillips
Dave Maggio
Cary McCafferty
The meeting was called to order at 9:40 a.m.
Approval of Meeting Minutes – March 10, 2015
Bill Barnes submitted a motion to approve the March 10, 2015 minutes. Mark Holler seconded the motion. Motion passed.
Review of NPRRs
The following NPRRs were reviewed:
681 / Clarifications to Dynamic Ratings686 / Changing the IRR Forecast from Next 48 Hours to Next 168 Hours
687 / Required Telemetry for Operational Awareness and PDCWG Analysis
688 / Black Start Services Testing Clarifications
690 / Incorporation of Creditworthiness Standards into Protocols
On NPRR 690, the group commented that the NPRR clarifies discrepancies between requirements for ECs, improves transparency of creditworthiness standards and aligns protocol language with creditworthiness standards. In addition, it also removes F&A annual review of letter of credit issuer concentration limits.
Donald Meek submitted a motion approving the comments to NPRR 690 above and confirming that NPRRs 681, 686, 687 and 690 have no credit implications
Mr. Barnes seconded the motion. Motion passed.
NPRR 638
Mr. Barnes explained to the group the reasoning behind the changes to the MAF language, including the intent and process relating to usage of the MAF. Shams Siddiqi suggested inserting “previously” before “anticipated changes” for further clarification.
Mr. Barnes submitted a motion to approve the changes in the MAF language as modified. Mr. Meek seconded the motion. Motion passed.
CWG members observed that there were significant volatilities in the back-casting results and agreed to further review the look-back period and historical percentiles used. They asked ERCOT staff to run additional scenarios using different historical percentiles for DALE and also to further validate the model to confirm the validity of the results. The group agreed to further discuss the matter in the CRIM task force meeting.
The group drafted comments to NPRR638 as follows:
“With respect to NPRR 638, CWG reached consensus regarding the MAF language and additional revisions (FIP and ERCOT clean-up items). CWG has made considerable progress however it has concerns regarding the back-casting model results and requests PRS continue to table NPRR638 to allow further CWG consideration. The current work product of CWG can be found at the 4/22/15 CWG meeting page. CWG has directed the CRIM Task force to up the back-cast results and work with ERCOT to identify any remaining issues.”
Mr. Meek submitted a motion to endorse the comments above. Mr. Barnes seconded the motion. Motion passed.
Capacity Forecast Model
Suresh Pabbisetty presented updated results of the capacity forecast model. The group agreed to continue reviewing the results of the model pending resolution of issues with respect to NPRR638.
Credit Updates
Vanessa Spells updated the group on approved and outstanding change requests and other credit assignments as reflected in the slides posted in the meeting site.
CWG Leadership Update
Mr. Meek informed the group that since Loretto Martin has moved from LCRA to Direct Energy, the position of Vice Chair has been effectively vacated and therefore a Vice Chair needs to be elected. Mr. Meek opened the floor for nominations for the Vice Chair position for the year.
Mr. Meek nominated Ms. Martin as Vice Chair. The group voted to approve Ms. Martin’s nomination. Mr. Meek informed the group that this will go through the confirmation process with the F&A Committee.
Other Business
Mark Ruane informed the group that project work on Phase 2 of NPRR 484 (deferred invoicing) has started and that there were several issues that were identified. ERCOT staff is currently working on identifying all issues and will present possible revisions to clarify and address such issues in the next meeting. Slides on the list of issues will be posted in the meeting site for reference
Mr. Ruane also told the group that ERCOT staff has started on working on other clarifying revisions to Section 16 including simplification of calculations and would seek input from the group before formalizing an NPRR.
The meeting was adjourned at 12:18 p.m.
ERCOT Public