Key Benefits of REP Book Sale
This content discusses the benefits of a REP book sale, including allowing departing REPs to potentially exit with a positive value, reducing acquisition costs for customers, and minimizing the market impact of a default. It also explains the triggering event, auction process, and transition to a new REP.
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Presentation Transcript
Benefits Allows departing REP to potentially exit with positive value Reduces buying REPs acquisition cost for customers Reduces impact to market of a default Customers not transferred to POLR
Triggering Event Most likely a margin call REP will most likely try to find a way to secure funding prior to making decision If nothing works, provide systematic, irrevocable ability to enter book auction
Auction Process Once an REP elects to enter process they are done Remaining REPs in the market alerted Information disseminated to potential buyers Load information (already available) (rulemaking?) ESIid counts By Load Zone/Weather Zone Other? Bids would be single lump sum payment Simplify evaluation Minimum time possible
Drop to New REP Mass transition similar to drop to POLR process Rates charged new customers limited by POLR rates
