Risk on in Texas
June 29, 2020
Buyers and brokers in ERCOT took a dramatic turn to market risk this week in terms of pricing requests. This market jumped from 13% to 21% in the ratio of index/flex products versus fixed price solutions. Several factors could be at play. The Texas economy is on the verge of another shutdown in order to stem the surge of COVID-19. Dallas and Houston have seen two weeks of weather-related cooling demand that is below historic norms.
Risk Appetite Report 6/22/20 – 6/26/20
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 126,668,126 for customers with peak demand above 750 KWh.