Risk On Repeat in ERCOT

July 06, 2020

Buyers and brokers in ERCOT continue to lead other markets in terms of risk appetite. Their ratio of a 22% interest in index/flex products versus fixed price solutions (78%) is a slight week-over-week increase. Economic and weather volatility are factors in this market. Heat index adjusted temps in Houston for this week are near 100 degrees after two weeks of below normal high temps. And, the Texas economy remains on the verge of another shutdown in order to stem the surge of COVID-19.

Risk Appetite Report 6/29/20 – 7/3/20

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 88,456,826 for customers with peak demand above 750 KWh.