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Letter of Credit Issuer Limits Mark Ruane Credit Work Group / Market Credit Work Group

Letter of Credit Issuer Limits Mark Ruane Credit Work Group / Market Credit Work Group ERCOT Public August 20, 2014. Letter of Credit Issuer Limits.

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Letter of Credit Issuer Limits Mark Ruane Credit Work Group / Market Credit Work Group

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  1. Letter of Credit Issuer Limits Mark Ruane Credit Work Group / Market Credit Work Group ERCOT Public August 20, 2014

  2. Letter of Credit Issuer Limits ERCOT Creditworthiness Standards incorporate Letter of Credit (LC) issuer limits determined by the long-term issuer rating and the Tangible Net Worth of the Issuer. Per the Standards “Issuer limits will be reviewed by CWG and approved by F&A no less often than annually.” The limits were last approved by F&A in November 2013. In addition, F&A has requested staff to present a summary of activity under the concentration limit after the summer. ERCOT Public

  3. Letter of Credit Issuer Limits LC issuer limits are determined as follows: (1) Determined in accordance with ERCOT Creditworthiness Standards, based on most recent audited financial statements. In addition, each issuer is subject to an overall limit of $750 million. ERCOT Public

  4. Letter of Credit Issuer Limits ERCOT computed the issuer limits and reviewed outstanding LCs since opening of the nodal market. • Summary Statistics • Number of issuers: 23 • Minimum computed limit: $13.3 million • Issuers with limit at $750 million cap: 4 • Minimum current excess capacity: $13.1 million • Maximum excess capacity: $708.9 million • LC issuances in violation of limits: 0 ERCOT Public

  5. Letter of Credit Issuer Limits Detailed statistics ERCOT Public

  6. Letter of Credit Issuer Limits • Questions ERCOT Public

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