Credit policy stakeholder process

All market participants within the ISO markets are subject to a financial review in accordance with ISO standards for determining creditworthiness. Such review procedures are designed to protect market participants from undue exposure to default risk by other market participants. The ISO intends to maintain market participant confidence in the markets and to ensure an adequate supply of power at a reasonable cost by equitably, consistently and strictly enforcing these credit procedures. Current ISO credit policies and procedures are documented in the Business Practice Manual for Credit Management.

FERC order 741 credit reform in organized energy markets

FERC Order Numbers. 741 and 741-A require ISOs to implement a weekly settlement cycle and certain credit policy enhancements, as well as net market transactions that reduce customer exposure to market defaults. Through this stakeholder process the ISO will solicit input on the minimum requirements for participating in the ISO market, and establish when to reduce or revoke market participants’ unsecured credit limit because of a material adverse change.