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| ERCOT Houston Peak Swap (Platts Megawatt Daily) Contract |
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The Electric Reliability Council of Texas (ERCOT) is a non-profit corporation that provides electricity to approximately 20 million customers, handling roughly 85% of the state's energy needs. It is the Independent System Operator for its area and one of only ten regional reliability councils in North America.
Regulated by the Public Utility Commission of Texas and governed by a board of directors consisting of independent members, customers and consumers from its market base, ERCOT is dedicated to giving the best rates for reliable energy in a fair and competitive marketplace. ERCOT manages 70,000 megawatts of active generation capacity and 38,000 miles of transmission lines over a perimeter consisting of more than 75% of Texas property.
To help market participants better manage their risk while mitigating counterparty risk, the New York Mercantile Exchange, Inc. provides an ERCOT Houston peak swap contract for monthly electricity transactions in the Houston hub area, one of four in ERCOT's market. The Houston trading hub price is the simple average of the bus prices in each interval for each bus included in this trading hub.
The financially settled contracts provide risk management for both the day-ahead and real-time markets in ERCOT, and are available for trading on the NYMEX ClearPort® trading platform. Off-Exchange contracts can be submitted solely for clearing on the NYMEX ClearPort clearing system during regular NYMEX ClearPort hours.
ERCOT peak day-ahead contracts settle on Platts Megawatt Daily index prices. ERCOT peak real-time contracts settle on ERCOT's Market Clearing Price for Energy.
Monthly contracts are for a unit of 40 Mwh per day times the number of monthly peak days. Daily contracts are for 40 Mwh per day. The contracts settle ten business days prior to the last day of the delivery month. |
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