26.7 Additional Financial Assurance Policies for External Transactions

26.7.1 ISO Monitoring

The ISO shall monitor the External Transaction Bids submitted by a Customer. If the credit support required for any batch of External Transaction Bids submitted by a Customer exceeds the amount of the Customer’s available credit support for External Transactions, then all of the Customer’s External Transaction Bids in that batch of Bids shall be rejected by the ISO.

26.7.2 Suspension

If, at any time, the net amount owed to the ISO by a Customer as a result of External Transactions reaches fifty percent (50%) of the credit support provided by the Customer to support its External Transactions, then the ISO shall attempt to contact the Customer to request either payment or additional credit support in the amount then owed by the Customer as a result of its External Transactions.

If the day of the ISO’s request stated above falls on a business day and the Customer fails to make payment or provide additional collateral as described above by 4:00 p.m. Eastern Time on the same day as the ISO’s request, then the ISO may immediately suspend the Customer’s authorization to engage in External Transactions until payment or provision of its required amount of credit support using Unsecured Credit and/or collateral.

If the day of the ISO’s request stated above does not fall on a business day, then the ISO may issue a demand for credit support and immediately suspend the Customer’s authorization to engage in External Transactions until the Customer makes payment or provides its required amount of credit support using Unsecured Credit and/or collateral.

If, at any time, the amount owed to the ISO by a Customer as a result of its External Transactions reaches one hundred percent (100%) of the credit support provided by the Customer to support its External Transactions, then the ISO may cancel any pending Day-Ahead Bids before they are accepted and may immediately suspend the Customer’s authorization to engage in External Transactions until the Customer makes payment or provides its required amount of credit support using Unsecured Credit and/or collateral.