• Listing of Twenty Four (24) New ERCOT Electricity Futures Contracts

      • To
      • Members, Member Firms and Market Users
      • From
      • Market Regulation Department
      • #
      • SER-5477
      • Notice Date
      • 17 November 2010
      • Effective Date
      • 05 December 2010

    • Effective Sunday, December 5, 2010 for trade date Monday, December 6, 2010, the New York Mercantile Exchange, Inc. (NYMEX) will launch twenty four (24) new Electric Reliability Council of Texas (ERCOT) swap futures contracts for trading on the NYMEX trading floor and for submission for clearing through CME ClearPort. The contracts are listed with NYMEX, and subject to, the rules and regulations of NYMEX and Chicago Mercantile Exchange Inc.  The new futures contracts will be cash-settled. The first listed month for the contracts will be the January 2011 contract month. The contracts will list current year plus the next five calendar years with a new calendar year added following the termination of trading in the December contract month of the current year.  NYMEX will allow Exchange of Futures for Related Position (“EFRP”) transactions to be submitted through CME ClearPort pursuant to the provisions of Exchange Rule 538. 

      On December 1, 2010, ERCOT is anticipated to transition from its current zonal pricing of transmission congestion to a nodal transmission congestion market.  The installation of nodal transmission will also involve the development of an ERCOT day-ahead energy market.  The redesigned grid will consist of more than 4,000 nodes, and will replace the current congestion management zones.

      PRODUCT SPECIFICATIONS

      Title, Rule Chapter and Commodity Code

      Contract Name

      Rule Chapter

      Code

      ERCOT Houston Competitive Load Zone Day-Ahead 5 MW Peak Swap Futures

      1017

      EHD

      ERCOT West Competitive Load Zone Day-Ahead 5 MW Peak Swap Futures 

      1018

      EWD

      ERCOT North Competitive Load Zone Day-Ahead 5 MW Peak Swap Futures

      1019

      ERD

      ERCOT South Competitive Load Zone Day-Ahead 5 MW Peak Swap Futures

      1020

      EUD

      ERCOT Houston Competitive Load Zone Day-Ahead 5 MW Off-Peak Swap Futures

      1021

      EHY

      ERCOT West Competitive Load Zone Day-Ahead 5 MW Off-Peak Swap Futures

      1022

      EWY

      ERCOT North Competitive Load Zone Day-Ahead 5 MW Off-Peak Swap Futures

      1023

      ERY

      ERCOT South Competitive Load Zone Day-Ahead 5 MW Off-Peak Swap Futures

      1024

      EUY

      ERCOT Houston Competitive Load Zone Real-Time 5 MW Peak Swap Futures

      1001

      EHR

      ERCOT West Competitive Load Zone Real-Time 5 MW Peak Swap Futures 

      1002

      EWR

      ERCOT North Competitive Load Zone Real-Time 5 MW Peak Swap Futures

      1003

      ERR

      ERCOT South Competitive Load Zone Real-Time 5 MW Peak Swap Futures

      1004

      EUR

      ERCOT Houston Competitive Load Zone Real-Time 5 MW Off-Peak Swap Futures

      1005

      EHI

      ERCOT West Competitive Load Zone Real-Time 5 MW Off-Peak Swap Futures

      1006

      EWI

      ERCOT North Competitive Load Zone Real-Time 5 MW Off-Peak Swap Futures

      1007

      ERI

      ERCOT South Competitive Load Zone Real-Time 5 MW Off-Peak Swap Futures

      1008

      ESI

      ERCOT Houston 345 kV Hub Day-Ahead 5 MW Peak Swap Futures

      1033

      EHE

      ERCOT West 345 kV Hub Day-Ahead 5 MW Peak Swap Futures 

      1034

      EWE

      ERCOT North 345 kV Hub Day-Ahead 5 MW Peak Swap Futures

      1035

      ERE

      ERCOT South 345 kV Hub Day-Ahead 5 MW Peak Swap Futures

      1036

      EUE

      ERCOT Houston 345 kV Hub Day-Ahead 5 MW Off-Peak Swap Futures

      1037

      EHP

      ERCOT West 345 kV Hub Day-Ahead 5 MW Off-Peak Swap Futures

      1038

      EWK

      ERCOT North 345 kV Hub Day-Ahead 5 MW Off-Peak Swap Futures

      1039

      ERU

      ERCOT South 345 kV Hub Day-Ahead 5 MW Off-Peak Swap Futures

      1040

      ERA

       

      Days and Hours

      Peak day shall mean a Monday through Friday, excluding North American Electric Reliability Corporation holidays. From Hour Ending (HE) 0700 Central Prevailing Time (CPT) through HE 2200 CPT.

      Off-Peak shall mean Monday through Friday Hour Ending (HE) 0100-0600 and 2300 and 2400 Central Prevailing Time (CPT) and Saturday through Sunday HE 0100-2400 CPT including North American Electric Reliability Corporation holidays.

      Contract Quantity

      Peak contract: The contract quantity shall be 80 Megawatt hours (MWh) and is based on 5 Megawatts for peak daily hours. Transaction sizes for trading in any contract month shall be restricted to whole number multiples of the number of peak days in the contract month. Each futures contract shall be valued at the contract quantity multiplied by the settlement price.

      Off-peak contract: The contract quantity shall be 5 Megawatt hours (MWh). Transaction sizes for trading any contract month shall be restricted to whole number multiples of the number of off-peak hours in the contract month. Each futures contract shall be valued as the contract quantity multiplied by the settlement price.

      Prices and Fluctuations

      Prices shall be quoted in U.S. dollars and cents per MWh. The minimum price fluctuation shall be $0.01 per MWh. There shall be no maximum price fluctuation.

      Termination of Trading

      Trading shall cease on the last business day of the contract month.

       

      Fee Schedule

       

      Member

      Non-Member

      COMEX Blended

      ClearPort (On-Peak)

      $0.35

      $0.40

      NA

      Floor (On-Peak)

      $0.35

      $0.40

      $0.37

      Cash Settlement (On-Peak)

      $0.40

      $0.40

      NA

      ClearPort (Off-Peak)

      $0.02

      $0.03

      NA

      Floor (Off-Peak)

      $0.02

      $0.03

      $0.03

      Cash Settlement (Off-Peak)

      $0.02

      $0.03

      NA

      EFS, EFP, Spreads, Strips and ex Pit trades are available at standard member and nonmember rates – no surcharges apply. Block fees apply at standard levels.

       

      Should you have any questions or require any further information, please contact Mike O'Neill (212) 299-2348 or Kristen Bauer at (713) 658-9294.

       

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