05/24/2004
This is the first time that Dow Jones Electricity Indexes have been licensed for use by an exchange. The contracts will be based on the average peak day prices for the electricity market hubs at Palo Verde in Arizona, North Path 15 and South Path 15 in California, and the non-federal dams along the mid-Columbia River in Washington state. They will be available for competitive trading on NYMEX ClearPortsm or for submission solely for clearing as off-exchange transactions. The contracts will initially be listed for July 2004 through December 2006.
Dow Jones Electricity Indexes is a group of broad-based pricing indexes used extensively by U.S. and European utilities, power marketers, independent power producers, consultants and municipalities for pricing short- and long-term contracts and hedging instruments. Dow Jones has contracts with more than 60 utilities, power marketers and power producers to contribute to Dow Jones all pertinent transactions for the day, every day, making Dow Jones Electricity Indexes the most consistent, dependable barometers available.
The New York Mercantile Exchange also offers trading in financially settled PJM electricity monthly futures and options contracts; PJM weekly and daily futures contracts; and New York Independent System Operator Zone A, G, and J electricity futures contracts, as well as clearing services for physically delivered PJM, Palo Verde, and mid-Columbia River electricity futures contracts.