SUBSCRIBER NOTE: Platts to eliminate deal count, volume thresholds, limit on trade size for North American power indexes

Following industry consultations, S&P Global Platts has decided to eliminate deal count and volume thresholds used for producing North American bilateral electricity indexes. Platts has also decided to remove a limit on transaction size.

This decision follows a proposal note sent on November 14, 2018, which can be viewed at www.spglobal.com.

Platts will eliminate the five trade and three counterparty thresholds to produce electricity indexes effective flow date February 1.

Currently, Platts calculates and publishes a volume-weighted-average index for locations that receive reported, transactional-level information that includes at least five individual transactions from three separate sources. If the five-and-three threshold is not met, Platts assesses a price and clearly indicates an assessment has been made by not publishing volume information.

Starting flow date February 1, Platts will publish indexes representing the volume-weighted averages of all trades and publish volumes for locations with robust trading activity.

For less liquid markets, Platts will examine reported transactional-level information to gauge whether it is representative of the day's trading activity and decide whether to publish a volume-weighted index. If Platts deems transactions are not representative of that day's trading activity, Platts will assess a price and not publish any volume.

Similarly, effective flow date February 1, Platts will eliminate the 25 MW standard size limit and include transactions of any size when formulating indexes and assessments.

Please send all feedback and questions to electricityprice@platts.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.