ERCOT Market Credit Exposure Update April 17, 2025
"Explore the latest credit exposure update in ERCOT, with insights on market-wide average Total Potential Exposure, discretionary collateral, TPE trends, real-time prices, credit limits, and more for March 2024 - March 2025."
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Credit Exposure Update Market Credit Work Group ERCOT Public April 17, 2025
Monthly Highlights: February 2024 March 2025 Market-wide average Total Potential Exposure (TPE) remained flat at $1.84 billion in March Both real-time prices and forward adjustment factors were slightly lower in March Discretionary Collateral is defined as Secured Collateral in excess of TPE,CRR Locked ACL and DAM Exposure Average Discretionary Collateral decreased from $4.53 billion in February to $4.10 billion in March No unusual collateral call activity 2 PUBLIC
TPE and Forward Adjustment Factors: March 2024 March 2025 3 PUBLIC
TPE/Real-Time & Day-Ahead Daily Average Settlement Point Prices for HB_NORT:H March 2024 March 2025 4 PUBLIC
Available Credit by Type Compared to Total Potential Exposure (TPE): March 2024 March 2025 Numbers are as of month-end except for Max TPE Max TPE is the highest TPE for the corresponding month 5 PUBLIC
Issuer Credit Limits vs Total LC Amounts Per Issuer: End-March 2025 Unused Capacity based on Tangible Net Worth(US$) Issuer Limits based on Tangible Net Worth(US$) Total LC Amounts Per Issuer(US$) Tangible Net Worth(US$) Issuer Name Natixis (FI) BNP Paribas (FI) Wells Fargo (FI) Deutsche Bank AG(FI) CoBank ACB (FI) Societe Generale (FI) ANZ Bank (FI) Sumitomo Mitsui Banking Corporation (FI) Lloyds Bank Corporate Markets PLC (FI) Mizuho Bank Ltd (FI) Others (26 banks) Totals Over CL 97% 86% 67% 58% 52% 48% 42% 40% 38% 34% 11% 24% $ 267,910,462 17,283,074,400 $ $ 276,529,190 $ 8,618,728 $ 645,882,005 126,186,026,400 $ $ 750,000,000 104,117,995 $ $ 501,128,563 132,055,000,000 $ $ 750,000,000 248,871,437 $ $ 438,595,001 72,721,459,200 $ $ 750,000,000 311,404,999 $ $ 93,450,000 11,193,000,000 $ $ 179,088,000 $ 85,638,000 $ 360,090,151 63,578,169,600 $ $ 750,000,000 389,909,849 $ $ 317,000,000 44,649,689,400 $ $ 750,000,000 433,000,000 $ $ 301,000,006 71,843,140,365 $ $ 750,000,000 448,999,994 $ $ 270,471,138 44,078,296,800 $ $ 705,252,749 434,781,611 $ $ 257,746,604 51,575,819,455 $ $ 750,000,000 492,253,396 $ $ $ 1,670,524,965 5,123,798,895 1,335,304,438,690 $ 1,970,468,114,310 $ 14,999,387,901 $ 21,410,257,840 $ 13,328,862,936 $ 16,286,458,945 $ As of March 31, 2025 There are a total of 36 banks that have issued LCs. 6 PUBLIC
Discretionary Collateral by Market Segment March 2023 - March 2025 * Discretionary Collateral adjusted to exclude short pay amounts eliminating data skew 8 PUBLIC
TPE and Discretionary Collateral by Market Segment - March 2025 Load and Generation entities accounted for the largest portion of discretionary collateral 9 PUBLIC
TPEA Coverage of Settlements February 2024 - February 2025 Invoice Exposure Historical Future Existing Invoice Exposure RTLCNS + UDAA M1 Days (including current day) Forward Charge Invoice Amounts New Invoice Exposure 7 Days Back Net Invoice Amounts (Charges & Credits) M1 Days (including current day) Forward Net Invoice Amounts (Charges & Credits); Excluding: 1) Securitization Invoices; 2) CRR Auction Invoices; and 3) Subchapter N Funds Distribution Invoice TPEA closely approximates actual/invoice exposure 1 0 PUBLIC
TPEA Coverage of Settlements February 2024 - February 2025 Invoice Exposure Historical Future Existing Invoice Exposure RTLCNS + UDAA M1 Days (including current day) Forward Charge Invoice Amounts New Invoice Exposure 7 Days Back Net Invoice Amounts (Charges & Credits) M1 Days (including current day) Forward Net Invoice Amounts (Charges & Credits); Excluding: 1) Securitization Invoices; 2) CRR Auction Invoices; 3) Subchapter N Funds Distribution Invoice *TPEA exceeds invoice exposure 1 1 PUBLIC
TPEA Coverage of Settlements February 2024 - February 2025 Invoice Exposure Historical Future Existing Invoice Exposure RTLCNS + UDAA M1 Days (including current day) Forward Charge Invoice Amounts New Invoice Exposure 7 Days Back Net Invoice Amounts (Charges & Credits) M1 Days (including current day) Forward Net Invoice Amounts (Charges & Credits); Excluding: 1) Securitization Invoices; 2) CRR Auction Invoices; 3) Subchapter N Funds Distribution Invoice Invoice exposure generally exceeds TPEA 1 2 PUBLIC
TPEA Coverage of Settlements February 2024 - February 2025 Invoice Exposure Historical Future Existing Invoice Exposure RTLCNS + UDAA M1 Days (including current day) Forward Charge Invoice Amounts New Invoice Exposure 7 Days Back Net Invoice Amounts (Charges & Credits) M1 Days (including current day) Forward Net Invoice Amounts (Charges & Credits); Excluding: 1) Securitization Invoices; 2) CRR Auction Invoices; 3) Subchapter N Funds Distribution Invoice * TPEA generally exceeds Invoice exposure 1 3 PUBLIC
TPEA Coverage of Settlements February 2024 - February 2025 Invoice Exposure Historical Future Existing Invoice Exposure RTLCNS + UDAA M1 Days (including current day) Forward Charge Invoice Amounts New Invoice Exposure 7 Days Back Net Invoice Amounts (Charges & Credits) M1 Days (including current day) Forward Net Invoice Amounts (Charges & Credits); Excluding: 1) Securitization Invoices; 2) CRR Auction Invoices; 3) Subchapter N Funds Distribution Invoice *TPEA generally exceeds invoice exposure 14 PUBLIC
TPEA Coverage of Settlements February 2024 - February 2025 Invoice Exposure Historical Future Existing Invoice Exposure RTLCNS + UDAA M1 Days (including current day) Forward Charge Invoice Amounts New Invoice Exposure 7 Days Back Net Invoice Amounts (Charges & Credits) M1 Days (including current day) Forward Net Invoice Amounts (Charges & Credits); Excluding: 1) Securitization Invoices; 2) CRR Auction Invoices; 3) Subchapter N Funds Distribution Invoice *TPES exceeds actual/invoice exposure 1 5 PUBLIC
Questions 1 6 PUBLIC
