Peak Market Activity definition
Examples of Peak Market Activity in a sentence
For the avoidance of doubt, after one (1) Business Day after the calculation of the Peak Market Activity (as defined in the PJM Tariff) for the prior twelve (12) months performed by PJM in October of 2014, Seller shall not be required to maintain in effect its financial obligations under the PJM Credit Support.
When the Market Participant provides additional Unsecured Credit Allowance and/or Financial Security in excess of its Peak Market Activity credit requirements, such additional Unsecured Credit Allowance and/or Financial Security shall not be discounted by 25% when calculating the Working Credit Limit for Virtual Transactions.
For the avoidance of doubt, if Peak Market Activity calculations result in a requirement for collateral postings in excess of the amount provided by Seller at Closing, and if the requirement for additional collateral postings is caused by the Transferred Company’s and/or its Subsidiaries’ transaction activity after Closing, then IPH shall be responsible for providing any collateral in excess of that provided by Seller.
The Working Credit Limit for Virtual Transactions shall be calculated as 75% of the Market Participant’s Unsecured Credit Allowance and/or 75% of the Financial Security provided by the Market Participant to PJMSettlement when the Market Participant is at or below its Peak Market Activity credit requirements as specified in section II.D of this Credit Policy.
Peak Market Activity shall be the greater of the initial Peak Market Activity, as explained below, or the greatest amount invoiced for the Participant’s transaction activity for all PJM markets and services, excluding FTR Net Activity, in any rolling one, two, or three week period, ending within a respective semi-annual period.
Participants who do not qualify for an Unsecured Credit Allowance will be required to provide Financial Security based on their Peak Market Activity, as provided below.
Prepayments shall not affect Peak Market Activity unless otherwise agreed to in writing pursuant to this Credit Policy.
PJMSettlement may, at its discretion, adjust a Participant’s Financial Security Requirement if PJMSettlement determines that the Peak Market Activity is not representative of such Participant’s expected activity, as a consequence of known, measurable, and sustained changes.
The initial Peak Market Activity for Participants, calculated at the beginning of each respective semi-annual period, shall be the average of all non-zero invoice totals, excluding FTR Net Activity, over the previous 52 weeks.
A PJM Participant or Applicant that has an insufficient Unsecured Credit Allowance to satisfy its Peak Market Activity will be required to provide Financial Security such that its Unsecured Credit Allowance and Financial Security together are equal to its Peak Market Activity in order to secure its transactional activity in the PJM Market.