February 2006 Market Clearing in the Energy Industry 50 © Copyright 2005, CCRO. All rights reserved. 10. APPENDIX C: CREDIT POLICY DIFFERENTIATION AMONG ISO/RTOS ISO/ RTO/ Pool Credit topic CAISO ERCOT MISO ISO-NE NYISO PJM SPP Generic Trans- mission Owner WSPP Policy Document ation ISO Credit Policy and Procedure Guide http://www. caiso.com/ docs/2005/ 06/14/200 50614165 6326466.h tml Operating Guide Section 16.2.5.1.1 Creditwort hiness Standards http://www. ercot.com/ mkt_part_ apps/mark et_particip ant_applic ation_f.htm Open Access Transmissi on and Energy Market Tariff, Attachmen t L, Second Substitute Original Sheet #1219 Tariff Attachmen t L, Attachmen t M and Attachmen t O) Tariff Attachmen t K of the Market Services Tariff and W of OATT Attachmen t Q of OAT Tariff Southwest Power Pool Credit Policy OATT Western Systems Power Pool Agreemen t General Credit Policy Short term (A-1/P-1) for unsecured limits for GMC (Grid Managem ent Charge) and Market Activity A-2 A- / P2 A3 or better for only Market activity. No internal scoring Minimum Sr. Unsecured rating of BBB- / Baa3, equivalentl y scored, minimum or RUS 38 ratios No minimum senior unsecured rating. Scoring model is utilized to create credit limits.39 Minimum Sr. Unsecured rating of BBB- /Baa3 Collateral @ BBB for 25% of TADO40. Minimum Sr. Unsecured rating of BBB- /Baa3 or equivalent from internal scoring model Minimum Sr. Unsecured rating of BBB- /Baa3 or equivalent from internal scoring model Minimum Sr. Unsecured rating of BBB/Baa2 or equivalent from internal scoring model Minimum Sr. Unsecured rating of BBB / Baa2, equivalentl y scored, minimum or RUS 41 ratios Bilateral credit standards 38 Rural Utilities Service ratios include Time Interest Earned Ratio and Debt Service Coverage Ratio [Reference CFR Sec. 1717.656(3)] 39 MISO credit scoring model produces a "suggested unsecured credit limit" based upon a composite score. For Public Power Companies, (Munis, Co-op's, and not for profit entities), the composite score is weighted 60% Qualitative Score and 40% Financial Score. For Non Public Power Companies (IOU's, IPP's, Marketers, "for profit companies") the composite score is weighted 60% Financial Score and 40% Qualitative score. 40 See http://www.iso-ne.com/stlmnts/assur_crdt/misc/index.html 41 Rural Utilities Service ratios include Time Interest Earned Ratio and Debt Service Coverage Ratio