Cal-ISO offers plan to use basis swaps as substitute price for generator fuel costs

摘要

In a compliance filing earlier this month, California Independent System Operator floated the idea of using swaps to determine proxy gas costs for generators participating in the ISO markets.rnCal-ISO also proposed to use New York Mercantile Exchange basis swaps instead of data from IntercontinentalExchange "because NYMEX data are publicly available on the Internet," while a special contract would be needed to obtain data from ICE. "The ISO believes that the additional transparency associated with the NYMEX data makes it the better choice," said the compliance filing.rnFERC in February rejected a second request by Cal-ISO to use the Henry Hub natural gas delivery point in Louisiana as the projected proxy price for gas in determining caps on gas-fired generation start-up and minimum-load costs (IF, 2 March, 9).