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, $/mmbtu; NYMEX Jan. gas $/mmbtu X Heat Rate = $/MWH. ( for Jan. 2010) The question is, what heat rate would one use? mainly, how would Heat Rate be calculated and what benchmarks would be used? Reuters, ICAP, ICE, Platts? And how does one calculate the price for each zone in ERCOT?

Right now only NZ I think. Its dollar for dollar on the spread. They take they anchor price of one (HH gas for instance), derive a power price based on HH and the HR, come up with the notional value, and give you an equal amount of each. To be exact, the gas amounts can be in 2 tickets.