Calcualting whoelsale $/MWH in ERCOT

Discussion in 'Energy Futures' started by TTFIO, Nov 24, 2009.

  1. TTFIO

    TTFIO

    If I wish to determine wholesale cost of power, $/MWH in ERCOT, per zone, I know that (in general) the equation would be Gas price X Heat Rate = Power price
    Example: Jan 2010 Power:

    NYMEX gas $/mmbtu X Heat Rate = $/MWH.

    The question is, what heat rate would one use? Or how would Heat Rate be calculated and/or what benchmarks would be used for the heat rate? Reuters, ICAP, ICE, Platts? And how does one calculate the price for each zone in ERCOT?