Is there a future for electricity futures?
- Commonwealth Edison, Oakbrook, IL (United States)
- Northern Illinois Univ., DeKalb, IL (United States)
The market for electricity based commodity trading, including futures and options, is in its infancy in the United States. Formal trading of electricity futures started on the New York Mercantile Exchange (NYMEX) on March 29, 1996 with Options trading following on April 26, 1996. NYMEX started two new contracts, one based at the California-Oregon border (COB) and one based at the Palo Verde switchyard (Palo Verde). NYMEX is the commodity futures exchange in the United States that specializes in energy contracts, historically launching futures contracts in energy sectors immediately after the deregulation of the market and after the formation of a competitive cash or spot market. In the case of electricity, NYMEX established the new electricity futures contracts prior to the deregulation of the market and in the middle of the formation of a working spot market. Several questions remain including if there is enough interest in the market, who will be the participants, how will the physical properties of electricity mold the terms for futures contracts, and how will deregulation affect the outcome?
- OSTI ID:
- 319013
- Report Number(s):
- CONF-980426-; TRN: IM9909%%157
- Resource Relation:
- Conference: American power conference, Chicago, IL (United States), 14-16 Apr 1998; Other Information: PBD: 1998; Related Information: Is Part Of Proceedings of the American Power Conference: Volume 60-1; McBride, A.E. [ed.] [Illinois Inst. of Tech., Chicago, IL (United States)]; PB: 613 p.
- Country of Publication:
- United States
- Language:
- English
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