Invoice Due Dates

Invoice Due Dates

Presented to

TPTFNovember 30, 2006

Jack BrownSettlement Specialist

City of Garland

Invoice Due Dates

Overview: Purpose Current Zonal Invoice Due Dates Nodal Invoice Due Dates:

RTM Invoice Due Dates with Calendars DAM Invoice Due Dates with Calendars CRR Invoice Due Dates with Calendars

Credit Implications Recommendations

Invoice Due Dates

Purpose: Compare Areas of Nodal Protocols Identify Differences Identify / Discuss Reasons For Differences (if any) Recommend Changes to the Invoice Due Dates to

Assist Smaller Market Participants (MPs) with up to an 800% Increase in Nodal Invoice Processing Requirements

Recommend Changes to the Nodal CRR Auction Process So It Will Work in All Months

Invoice Due Dates (Current Zonal)

Current Zonal Invoice Due Dates: Current Zonal Protocol 9.3 states:

The payment date will be five (5) Bank Business Days after the Settlement Invoice date. If the payment date does not fall on a Business Day, the Invoice will become due on the next Business Day.

Invoice Due Dates (Current Zonal)

Sunday Monday Tuesday Wednesday Thursday Friday Saturday1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

7 Operating Days

October 6 – 12, 2006

Ten (10) Days To Post Settlement Statements

OD 11&12 Invoice Posted Five (5)

Bank Business Days Due Date

1 2

Invoice Due Dates (Nodal RTM)

Nodal RTM Invoice Due Dates: Nodal Protocol 9.7.1 (1) states:

The payment due date and time for the RTM Invoice, with funds owed by an Invoice Recipient, is 1700 on the 5th Bank Business Day after the RTM Invoice date, unless the 5th day is not both a Business Day and a Bank Business Day. If the 5th Bank Business Day after the RTM Invoice date is not both a Business Day and a Bank Business Day, then the RTM Invoice is due on the next Business Day after the 5th day that is both a Business Day and a Bank Business Day.

Invoice Due Dates (Nodal RTM)


8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

7 Operating Days

October 6 – 12, 2006




1 2

Invoice Due Dates (Nodal DAM)

Nodal DAM Invoice Due Dates: Nodal Protocol 9.4.1 (1) states:

The payment due date and time for the DAM Invoice, with funds owed by an Invoice Recipient, is 1700 on the fourth Business Day after the DAM Invoice date, unless that fourth Business Day is not a Bank Business Day. If the fourth Business Day is not a Bank Business Day, then the payment is due by 1700 on the next Business Day after the fourth Business Day that is also a Bank Business Day.



8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

OD DAM PostInvoice Posted Four (4) Bank

Bus. Days Due Date



8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

OD

DAM PostInvoice Posted Four (4) Bank Business Days

Due Date

Invoice Due Dates (RTM and DAM)


8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

7 Operating Days

October 6 – 12, 2006




1 2

OD

DAM PostInvoice Posted Four (4) Bank Business Days

Due Date

OD DAM PostInvoice Posted Four (4) Bank Bus.

DaysDue Date

OD DAM PostInvoice Posted Four (4)

Bank Business DaysDue Date

OD DAM PostInvoice Posted

Four (4) Bank Business Days Due Date

OD DAM

PostInvoice Posted Four (4) Bank Business Days

Due Date

OD

DAM Post Invoice Posted Four (4) Bank Business Days

Due Date

OD

OD

Invoice Due Dates (CRR Auction)

Nodal CRR Invoice Due Dates: Nodal Protocol 9.9.1 (1) states:

The payment due date and time for the CRR Auction Award Invoice, with funds owed by an Invoice Recipient, is 1700 on the 3rd Bank Business Day after the CRR Auction Award Invoice date, unless the 3rd day is not both a Business Day and a Bank Business Day. If the 3rd Bank Business Day after the CRR Auction Award Invoice date is not both a Business Day and a Bank Business Day, then the CRR Auction Award Invoice is due on the next Business Day after the 3rd day that is both a Business Day and a Bank Business Day.


Nodal CRR Auction Process: Bid Submission – 3 Days Optimization – 5 Days Validation and Invoice Posting – 1 Day Payment Deadline – 3 Days Post To Accounts – 1 Day

(must post before the last day of the month – DAM for 1st day of next month happens on last day of month)

13 Days Required For Auction Process


Sunday Monday Tuesday Wednesday Thursday Friday Saturday1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28

5 DaysBid Submission 3 Days

Invoice Posted 3 Bank Bus. DaysOptimization

PostDue Date

Invoice Due Dates (Revise DAM)

Recommendations: Revise Nodal Protocol 9.4.1 (1) as follows:

The payment due date and time for the DAM Invoice, with funds owed by an Invoice Recipient, is 1700 on the fourth fifth Business Day after the DAM Invoice date, unless that fourth fifth Business Day is not a Bank Business Day. If the fourth fifth Business Day is not a Bank Business Day, then the payment is due by 1700 on the next Business Day after the fourth fifth Business Day that is also a Bank Business Day.

Invoice Due Dates (Revise DAM)


8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

OD

DAM PostInvoice Posted Revise to Five (5) Bank Bus.

Days Due Date

Invoice Due Dates (Revise CRR)

Recommendations: (Continued) Revise Nodal Protocol 9.9.1 (1) as follows:

The payment due date and time for the CRR Auction Award Invoice, with funds owed by an Invoice Recipient, is 1700 on the 3rd fifth Bank Business Day after the CRR Auction Award Invoice date, unless the 3rd fifth day is not both a Business Day and a Bank Business Day. If the 3rd fifth Bank Business Day after the CRR Auction Award Invoice date is not both a Business Day and a Bank Business Day, then the CRR Auction Award Invoice is due on the next Business Day after the 3rd fifth day that is both a Business Day and a Bank Business Day.

Sunday Monday Tuesday Wednesday Thursday Friday Saturday1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28



Invoice Posted


Optimization

Post

Revise To Five (5)


Recommendations: (Continued) Revise Nodal Protocol 7.5.1 (4) (b) as follows:

ERCOT shall conduct a monthly CRR Auction commencing on the second Tuesday following the first Sunday of the month immediately before the one-month term during which the CRRs being auctioned are effective. If the second this Tuesday is not a Business Day, then that monthly auction must occur on the next Business Day after the second this Tuesday.

Invoice Due Dates (CRR Auction Feb)


5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28


Invoice Posted 3 Bank Bus. DaysOptimization

PostDue Date


7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28

Invoice Due Dates (Revise CRR Feb)


Invoice Posted


Optimization

Post

Revise To Five (5)

Invoice Due Dates (CRR Auction Nov)


5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30


Invoice Posted

3 Bank Bus. Days

Optimization

PostDue Date

Day After Thanksgiving


7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30

Invoice Due Dates (Revise CRR Nov)


Invoice Posted


Optimization

Post

Revise To Five (5)

Day After Thanksgiving

http://rds.yahoo.com/_ylt=A9G_RqoTklhFrCAAvTSJzbkF;_ylu=X3oDMTBjcDR2NTN2BHBvcwM2BHNlYwNzcg--/SIG=1ft08kp3c/EXP=1163518867/**http%3A//images.search.yahoo.com/search/images/view%3Fback=http%253A%252F%252Fimages.search.yahoo.com%252Fsearch%252Fimages%253Fp%253Dturkey%2526ei%253DUTF-8%2526fr%253Dyfp-t-501%2526b%253D1%26w=354%26h=390%26imgurl=www.annthegran.com%252FATG_Designs%252Fthanksgiving%252Fturkey-l.jpg%26rurl=http%253A%252F%252Fwww.annthegran.com%252FATG_Designs%252Fthanksgiving%252Fturkey.htm%26size=141.3kB%26name=turkey-l.jpg%26p=turkey%26type=jpeg%26no=6%26tt=2,102,066%26oid=71b23e43536ac8b6%26ei=UTF-8


7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31

Invoice Due Dates (Revise CRR Dec)


Invoice Posted


Optimization

Post

Revise To Five (5)

Day After Christmas

http://rds.yahoo.com/_ylt=A9G_RqrLz2FF_NgAPAKJzbkF;_ylu=X3oDMTBkNjAzbzkzBHBvcwMzNgRzZWMDc3I-/SIG=1g4f4242h/EXP=1164124491/**http%3A//images.search.yahoo.com/search/images/view%3Fback=http%253A%252F%252Fimages.search.yahoo.com%252Fsearch%252Fimages%253Fp%253Dchristmas%252Btree%2526ei%253DUTF-8%2526fr%253Dyfp-t-501%2526b%253D21%26w=344%26h=400%26imgurl=crespi.homestead.com%252F%257Esite%252Fclipart%252FHoliday%252Fchristmas_tree.jpg%26rurl=http%253A%252F%252Fwww.partyapp.com%252Fdefault.aspx%26size=44.1kB%26name=christmas_tree.jpg%26p=christmas%2Btree%26type=jpeg%26no=36%26tt=387,191%26oid=2a7ba5b36324e694%26ei=UTF-8

Invoice Due Dates

Credit Implications: No Change To Nodal RTM Invoice Due Dates

Exposure Remains All MPs, 7 ODs, 22 to 28 Calendar Days DAM Invoice Due Dates Increase One Day

Exposure Goes From 9 - 11 Days To 10 - 12 Days Exposure Only Opting MPs, 1 OD, 1 More Calendar Day Exposure Still Considerably Less Than RTM 22 to 28 Days

CRR Invoice Due Dates Increase Two Days Exposure Goes From 3 to 5 Days (modify to finish before month’s end) Exposure Only Opting MPs, Monthly, 2 More Calendar Days CRRs will only be allocated when payment is received Exposure Still Considerably Less Than RTM 22 to 28 Days

Invoice Due Dates

Summary of Recommendations: Revise DAM Invoice Due Date From 4 to 5 Days Revise CRR Auction Invoice Due Date From 3 to 5 Days Revise CRR Auction Process Start Date From Second

Tuesday of the Month to the Tuesday Following the First Sunday of the Month

Invoice Due Dates

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