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| New York Independent System Operator Zone J Monthly Peak, Monthly Off-Peak, and Daily Peak Futures |
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The New York Independent System Operator (NYISO) is a not-for-profit corporation that operates one of the largest wholesale power markets in the United States.
New York State's electric power transmission system serves a population of approximately 18 million individuals - ranging in density from the central business district of Manhattan to the sparsely populated hamlets in the Adirondacks. The mission of the NYISO is to ensure the reliable, safe and efficient operation of the transmission system and to administer an open, competitive wholesale electricity market that consists of many participants: transmission operators, private and public power producers, power marketers, and retail suppliers.
The state's power grid is fueled by diverse resources — oil, coal, natural gas, nuclear, and hydropower — and is connected to the power grids of other states and Canadian provinces — the Pennsylvania-New Jersey-Maryland interconnection, the New England ISO, Quebec, and Ontario.
To help market participants better manage their market risk while mitigating counterparty risk, the New York Mercantile Exchange, Inc. provides futures contracts for on-peak and off-peak electricity transactions established for the Locational Based Marginal Prices for the hourly day-ahead market for Zone J published by NYISO. NYISO Zone J is comprised of the City of New York, a compact geographical area that is home to nearly 41% of the state's population, approximately 7.3 million people. Zone J is also the location of substantial generating resources, but its transmission ties to other regions are constrained and can become severely congested during periods of high demand.
The financially settled contracts are available for trading through the NYMEX ClearPort® trading platform.
On-peak monthly trades are conducted in increments of on-peak hourly blocks of 25 megawatts (400 megawatt hours per 16-peak-hour day). Transaction sizes for any delivery month must be in multiples consistent with the number of peak days in that contract month, which will fall between 19 and 23 days.
Off-peak trades are conducted in units of 2.5 megawatts times the number of off-peak hours in the contract month. Total contract size ranges from 880 to 1,060 Mwh.
The daily peak contract is for a unit of 40 Mwh per peak day. |
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