SUBSCRIBER NOTE: Platts proposes changes to marginal heat rates

Platts is proposing to change how it calculates marginal heat rate values for grid operator day-ahead power prices.

Platts proposes to simplify how marginal heat rates are determined by using a calculation that divides the grid operator day-ahead locational marginal power prices with corresponding Platts day-ahead spot gas prices.

Platts currently calculates LMP marginal heat rates by matching each hour that comprise day-ahead power prices with corresponding gas flow hours and then averages these resulting values across on-peak and off-peak time periods.

Platts proposes to implement these changes March 25, 2016. Please send comments and feedback by March 4 to electricityprice@platts.com and pricegroup@platts.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.