Risk Avoidance Rules in ERCOT

July 08, 2019

ERCOT electricity buyers are exhibiting levels of risk avoidance not seen since we started producing the weekly Risk Appetite Report more than one year ago. Customer interest in index or flex type products represents only 4% of the pricing requests this past week. In other words, 96% of the volume priced was for fixed price products. For the week, customers in NEPOOL and PJM showed small increases in their risk appetite while NYISO saw a drop from 27% to 16%. 

 

Risk Appetite Report 7/1/19 – 7/8/19

The risk appetite gauges above reflect the mix of fixed, flex and index volume that were priced on behalf of customer requests in the period. Total annual MWh priced represents 228,462,221 for customers with peak demand above 750 KWh.