SUBSCRIBER NOTE: Platts proposes new US West region specified electricity assessments

S&P Global Platts is seeking feedback on a proposal to begin US North American electricity assessments for day-ahead specified transactions. These specified transactions typically carry a premium and differ from standard day-ahead, firm with liquidated damages (firm LD) product because the price is adjusted for carbon content. The spread between a standard, firm LD and specific transaction can fluctuate.

Platts is proposing to publish new assessments for specified transactions for day ahead and weekend terms in on-peak and off-peak markets at the following locations: COB (California-Oregon Border comprises the Captain Jack and Malin substations on the AC transmission system between Oregon and California), NOB (Nevada-Oregon Border is part of the Pacific DC Intertie that connects the Pacific Northwest directly with Southern California.

The DC Intertie connects the Celio DC Converter station near The Dalles, Oregon with the Sylmar substation north of Los Angeles, California), and Palo Verde (Palo Verde comprises the switchyard at the Palo Verde nuclear power station west of Phoenix, Arizona).

Platts would require price reporters to identify specified transactions and encourages counterparty names.

A specified transaction is power imported into the state of California that must satisfy certain aspects of California's greenhouse gas emissions regulations and parties to these transactions are obligated to fulfill specific reporting requirements to the state of California.

A specified source transaction is a deal between buyer and seller for direct delivery of energy from a specified source. A specified source includes generation facility, generator or unit, or asset-controlling supplier (ACS) system, which is a particular type of electric power entity approved and registered by the California Air Resources Board (CARB) under the regulation for the mandatory reporting of greenhouse gas emissions.

At present, Platts excludes specified transactions from its day-ahead electricity assessments and indexes.

Platts will use its North American electricity methodology to assess specified transactions.

Please send all feedback by October 31, 2018. Platts is proposing to begin West specified assessments in December 2018.

Please send all feedback and questions to electricityprice@platts.com and pricegroup@spglobal.com by October 31, 2018.

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.