Exclusive Publisher of ICE-driven Forward Curves
Meeting the specific needs of the risk management community, Platts established a definitive standard for valuing short and long-term physical and financial electric power contracts with Platts M2M-Power. Now, Platts provides extended forward tenors (120-month/10-year delivered daily), new regional packages, and additional analytical data with the enhanced Platts M2MS-Power.
The latest generation of Platts Commodity Risk Solutions designed to help you manage energy price risk, Platts M2MS-Power is independently and transparently produced, and provides market-based forward curves and supporting analytical data for 66 key trading hubs in North America.
Platts M2MS-Power is published based upon our exclusive use of IntercontinentalExchange (ICE) settlement data. This data, along with our extensive spot price history and proprietary quantitative techniques, allows us to provide standardized, granular forward curves for liquid and illiquid trading hubs alike.
New Regional Packages
Platts M2MS-Power offers curves for the 66 power hubs in five regional packages: ERCOT, Northeast, Southeast, PJM/MISO, and West.
Alternatively, the M2MS-Power National Package includes a cross-section of 22 North America trading hubs.
Platts M2MS-Power enables clear, informed valuations and better investment and trading decisions. Underscore your commitment to efficient risk management by using the checks and balances of a Platts independent, third-party solution. With it, you can:
- Validate internally-generated forward curves
- Mark-to-market and calculate P&L for your portfolios with confidence
- Calculate value-at-risk (VaR) earnings-at-risk (EaR), cash-flow-at-risk (CFaR), or other daily risk management measurement and reporting functions
- Model prices, calculate the current value of derivative instruments, forecast trends, and better evaluate physical and financial assets
- Perform key portfolio risk management functions around risk disaggregation and decomposition, stress testing, and scenario building
- Measure counterparty risk and manage collateral with unbiased inputs
- Optimize strategic assets, mergers and acquisitions, and infrastructure investment decisions
- Resolve legal or contractual disputes through the provision of standardized and industry-adopted independent valuations, based on a transparent methodology
Platts M2MS-Power uses ICE settlement and activity data and broker quotes to produce 10-year monthly forward curves on a daily basis. For locations and delivery months where good forward liquidity exists on ICE, our assessments are closely aligned with ICE. For trading locations at which no active forward market exists on ICE, we use quantitative techniques to derive forward prices.
Liquid hubs that trade actively on ICE are called “market” hubs. The less liquid locations are called “proxy” hubs.
The forward curves for proxy hubs are derived using Platts extensive spot price history and any available forward curve data.
We use EIA long-term fundamental power price forecasts to inform the extension of our 10-year forward curves to 20-year forward curves. The 20-year monthly curves are produced at month end.
New: Extended Tenors and Features
Platts M2MS-Power offers the following sets of data for each of the 48 trading hubs:
- Published daily: 120-month (10-year) forward curves, based on published settlement prices and supplemented by Platts proprietary models wherever there is less liquid market activity
- Published monthly: 240-month (20-year) forward curves, based on the most current long-term power price forecasts provided by the Energy Information Administration (EIA)
- Historical volatility curves for all locations
- Additional derived data curves to subscribers who receive both M2MS-Gas and M2MS-Power
- Spark spread curves
- Heat rate curves
- Historical power versus gas correlation curves
Contact firstname.lastname@example.org to get started. We will work with you to ensure that your staff has access to the data it needs, distributed in a way that meets your specific needs.
Platts M2MS-Power is delivered via FTP and/or e-mail. The files are also available with your subscription at www.platts.com. Forward curves are also available through our delivery partners and through our real-time platform, Platts Electricity Alert.
Platts partners play a critical role to help ensure your company's success. We've struck cooperative partnerships with the world's foremost data delivery and analysis companies to help you leverage the information we provide and extend its value throughout your organization. Please contact us to find out if you can access Platts M2MS-Power through your existing vendor's delivery platform.