October 2013

Bien! EEX Introduces French Futures

Appalachian Coal Colombia, Chile, Declines, Ends Peru Integrate FX Argus Assessments Markets

SGX to Launch 1st Asian Electricity Futures Market

In Search of Equilibrium: Growth of Capacity and Transmission in the NYISO

October 2013

Summary
Platts to Reflect Ex-duty Cargoes in CIF NWE Jet Fuel Assessments Platts to Change US Atlantic Coast Gas to 15RVP Platts to Reduce Portland Bunker Volumes IHS Releases Next Generation of IHS AccuMap CME Postpones Crude Oil Delisting Argus Changes Differential Bases for 6 Ukrainian Gasoil Diesel Products Argus to Change Coal Spark Spread Assessments Platts Suspends EIA Oil Market Data Due to Shutdown CME To Use OPIS for Fuel Contracts to Replace Shutdown Data

Editors Letter.4 Whenever a discussion develops around the power industry, the thought of storage is not something that immediately comes to mind. Nevertheless, it has been recently drawing more attention from regulators and newsmakers. Interestingly enough, storage, as a solution, is being viewed as a panacea for seemingly opposing, at least from an environmental perspective, sources of power generation: renewables and coal. Power Markets .....................................................................5
NGX Adds Texas Physical Power Clearing Services EEX Introduces French Futures Platts Launches UK NBP Intra-day, N2EX Power Auction Assessments SGX to Launch First Asian Electricity Futures Market Platts to End M2M-Power Assessments Compression Cycle Eliminates 4300 EU Energy Swaps, Forwards Platts Refocuses Spanish Power Assessments FEBEG, Belpex to Develop Belgian Reserve Capacity Board

Agriculture, Forestry and Metal Markets............................ 15

NCDEX Launches Guar Seed Futures ICE to Add Canola Futures NCDEX Adds Gold Futures NCDEX Adds Silver Futures NCDEX Adds 16 Agriculture Contracts, Premium/Discounts Argus Adds Two Dry Bulk Iron Ore Freight Rates Argus Adds FMB Fertilizer Europe Datafeed Argus Adds Two Nitrogen Fertilizer Assessments Argus Adds 14 FMB North American Fertilizer Assessments CME Adds Soybean Meal Calendar Spread Options CME Adds Non-Consecutive Soybean Oil Options NYSE Euronext Lists Gold Bullion Securities in Brussels Marex Spectron Launches Financial Iron Ore Broking in Oslo, Singapore Platts Discontinues Eight Steel Product Publications CME Dairy Futures, Options Settlement Unchanged by Shutdown

Fossil Fuel Markets ...............................................................7

CME Adds Transco Nat Gas Fixed Price Products Futures CME Adds Fuel Oil Barges Fob Rdam Mini Weekly Spread Futures CME Adds EU Diesel Differentials, NY Harbor ULSD Futures CME Adds Tennessee, Texas Natural Gas Futures Platts Launches Portland, Seattle Suboctane Gasoline Platts to Use eWindow for European Diesel, Jet, Gasoil Cargoes EEX Announces New H- and L- Gas Products SHFE Launches Bitumen Futures Contracts EIA Launches Monthly Drilling Productivity Report CME Adds Singapore 380cst Fuel Oil Mini Weekly Spread Futures Argus Adds PEG Sud Day-Ahead Index Argus Adds Australia Daily LNG Index Series Assessments Argus to Add European LNG Assessment Argus to Expand Northeast Asia, China, India LNG Assessments Argus Adds API 3 fob Richards Bay 5500 NAR Index Assessment Argus, IHS McCloskey Launches API 3 Coal Index Argus to Add Three Ukrainian Motor Fuel Assessments Argus Adds Colonial Pipeline 85 CBOB A Grade Gasoline Products Argus Adds Butadiene Assessment Argus Ends 36 Daily Coal Assessments Argus Ends 6 Quarterly Central Appalachian Coal Barge Assessments Argus Discontinues 3 Russian Gasoil Diesel Assessments Argus to End Two Ukrainian Motor Fuel Assessments Argus Ends European Coal Freight Assessment Argus Ends 12 Russia-Central Asia Assessments Platts to End M2M-Gas Assessments Platts to End USGC Premium CBOB Platts to End China Fuel Oil Assessments Platts to Exclude Three Ports in CFR China Styrene Assessment Platts to End Questar Pipeline Bidweek Location Listing Platts to Discontinue US Waterborne Low Sulfur Diesel Assessments Platts to Amend Asia Gasoline Density Specs Platts Proposes Four Changes to US Spot Gas Survey Platts to Change US Atlantic Coast Residual Fuel Cargo Size

Environmental Markets and Weather Services ................... 19

Argus Adds Four International Methanol Codes CME Expands NYMEX RINs Listings NYMEX Eliminates Biodiesel Futures Contracts Argus Ends Nitrogen Fertilizer Assessment Argus Ends Two East China Domestic Methanol Codes Argus Changes Four International Methanol Codes CME Changes Kansas City Hard Red Winter Wheat from KCB to CBT

FX, Interest Rates, Credit and Equity Indexes ..................... 21

Eurex to Launch Six Currency Pair Derivatives Colombia, Chile, Peru Integrate Foreign Exchange Markets Xetra Gains Three SPDR ETFs Xetra Launches Daily Hedged Energy ETC Xetra Gains Three db X-trackers ETFs NYSE Liffe Launches GBP/USD, GBP/EUR Options and Futures CME Adds USD, ZAR Futures Contracts SGX Launches Six Asian Currency Pairs CME Adds S&P MLP Index Futures Contracts CME Adds CDX, iTraxx Index Series CME Changes CDX Index Liquidity Margin Methodology

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October 2013

Other Matters ....................................................................23

TMX Adds CDN Implied Volatility, Greeks Analytics Feed ISE Gemini Adds 200 Products, Full Penny Pilot Boerse Stuttgart to Use NASDAQ OMXs Trading Technology HKEx Starts Orion Market Data Platform Rollout HKEx Upgrades Derivatives Trading, Clearing Systems Euronexts Mini Futures Now Certified GFI Approved to Run Swap Execution Facility EEX Approves New Derivatives Market Trading System Deutsche Brse Approves 1 billion RWE Prime Standard Bond Deutsche Brse Market Data and Services Announces New VPS Deutsche Brse Adds Celestial to Xetra Network Xetra Gains New Risk-weighted Commodity Index Fund IHS CAPS Universe Incorporated Into Aras Innovator PLM EBS Direct Chooses Third-Party Aggregator Apama Nodal Exchange to Begin Operation as DCM ICAP SEF Receives CFTC Application Approval SGX, Clearstream to Launch Collateral Management Service NYSE Euronext Announces Strategic Partnership with ACE NYSE, KOSCOM Enter Global Trading Hub Agreement Berkeley Lab Releases China Energy Databook LCH.Clearnet Receives OSC Clearing Agency Recognition LCH.Clearnet, NYSE Sign New Derivatives Clearing Agreement LCH.Clearnet, EMCF, SIX to Provide CPP Services to Aquis Exchange Barchart Launches Market Data Service Online Barchart Adds New Market Data and Commodities Trading Platform Fitch Adds 100 Anniversary Online Forum for Transparency, Discussion Argus Deletes Erroneous Polymer Data Platts Plans to Consolidate US EIA Summary Data Pages FTSE Reclassifies Colombian Derivatives Market CME Changes Dow Jones Swaps Schedule USDA Not Publishing Data Due to Government Shutdown NOAA Not Publishing Due to Government Shutdown EPA Not Updating Data Due To Government Shutdown Newedge UK Financial Ltd Joins Eurex Clearing Argus Completes Independent Assurance Review Crude Oil Brent vs WTI: Prompt-Month Contract (NYMEX)

News from Data Vendors ................................................... 31

New Data Reports for ZEMA PEGAS: Successful launch of PEG Sud natural gas Front Month contract EPEX SPOT: Franco-German price convergence at year-high MDA Introduces TempRisk Apollo PEGAS: Record Volume on the TTF Spot market

InDepth35 In Search of Equilibrium: Growth of Capacity and Transmission in the NYISO By Karen Hung & Ian Mathieson
The New York Independent System Operator (NYISO) was founded in December of 1999, taking over from the New York Power Pool and following the nationwide unbundling of electricity supply and delivery in the nineties. It is the responsibility of the NYISO to ensure reliability of power generation, and transmission across New York State. Furthermore, the NYISO was founded in a period of high electricity prices and it was a hope that a more competitive marketplace would help to reduce the cost of electricity for end users.

Monthly Market Analysis ...................................................28

Crude Oil Brent vs WTI: Forward Curve (NYMEX) North American Natural Gas Spot Prices (ICE) Henry Hub Natural Gas Forward Curve (ICE) Actual Weather (AccuWeather) Electricity: Day-Ahead Prices (ICE)

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October 2013

Editors Letter

Storage for Carbon and Storage for Energy Intended to Make Air Cleaner
Whenever a discussion develops around the power industry, the thought of storage is not something that immediately comes to mind. Nevertheless, it has been recently drawing more attention from regulators and newsmakers. Interestingly enough, storage, as a solution, is being viewed as a panacea for seemingly opposing, at least from an environmental perspective, sources of power generation: renewables and coal. Storage solutions for both sectors, renewable and coal-fired power generation, are different in concept and implementation but are expected to provide sought after backing for these resources in light of growing environmental concerns. Coal has been at the top of the Environmental Protection Agencys (EPA) agenda for a while. The drive to reduce the impact from coal on the environment has resulted in revised standards, new rules, and regulations, which are all viewed by the industry as a slow and imminent death of coal. The most recent EPAs proposal to limit carbon emissions from new fossil-fueled generators stirred up quite a loud roar of disappointment from coal-based generators. EPA proposed different standards for natural gas and coal-fed facilities. For natural gas-fired stationary combustion units, the proposed limits are based on the size of the units: 1,000 lb CO2/MWh for larger units (>850 mmBtu/hr) and 1,100 lb CO2/MWh for smaller units (850 mmBtu/hr). For coal, these limits are based on the compliance period that the unit selects: 1,100 lb CO2/MWh for those generators that select it to be over a 12-operating month period or 1,000-1,050 lb CO2/MWh for a period over 84 operating months. According to the EPAs report on the Greenhouse Gas Reporting Program for 2012, the power sector remained the top culprit that accounted for about 67% of direct CO2 equivalent (CO2e) emissions and contributes 2,090 million metric tons CO2e to the U.S. carbon pollution. The top three electricity generation emitters reported between about 18 and 21 million metric tons of total direct GHG emissions in 2012. No surprise that the reaction from the coal-fired power units was very antagonistic with the arguments directed at the virtually unachievable goals given the level of current technology. According to the industry reps, these standards will likely result in the phasing out of the coal-based generation. Some see salvation in Carbon Capture and Sequestration (CCS), which is, in most cases, an underground storage for emissions. Others claim that this technology is too new, too expensive and unproven. Serious concerns remain with the potential CO2 leakage. In effect, construction of CCS projects has proven to be challenging: many proposed ones have been cancelled or delayed. Those that are currently in operation were constructed to support mainly natural gas or oil recovery and processing. The power industrys pockets are not as deep as those of fossil fuel moguls; this makes power generators mostly reliant on government support. Many expectations are held with the Department of Energys draft loan guarantee solicitation released in July 2013, which avails of US$8 billion for CCS projects. Unfortunately, the history of the governmental support leaves many skeptical. Remember FutureGen, the first coal-fired zeroemissions power plant to produce 275 MW of electricity? Its CCS portion was expected to be funded through the private-federal partnership; however, after the costs started to get closer to $2 billion, the government retrieved its support. There are other partially completed CCS projects intended to be integrated with power units (Southern Company's Kemper County Energy Facility and SaskPowers Boundary Dam are both over 75% complete). Lets just hope that they will not follow the fate of the former poster child for CCS designed to support clean coal-based power generation. In effect, according to EPA, few, if any, new coal-fired [electric generating units (EGUs)] would be built in this decade and those that are built would include CCS. This leaves a very warm and fuzzy feeling of a hope for CCS technology. Whether liked by the industry or not, CCS seems to remain the main option for those entities that intend to invest in coal-fired power generation. Another type of storage intended to solve a different set of concerns of the power sector is energy storage. Unlike CCS that will extend the life of coal-based generation, energy storages main focus in on renewables. The main objective of energy storage is to address intermitte ncy of renewable generation and solve related concerns, such as mitigation of peak demand, deferral or even elimination of investments in transmission and distribution. No doubt, the key objective is to reduce CO2 emissions. On October 17, 2013, California PUC released the decision that establishes energy storage targets of 1,325 MW for the top three (PG&E, SCE and SDG&E) by 2020. The procurement targets are set for each IOU for every two years starting 2014. Storage capacity is expected to be solicited from the market, which means one thing - there will be another type of market established in California, a storage capacity market. This means that once again, California is leading the pack by inventing, experimenting, and innovating. I am almost confident that this experiment will not end up being anything like the case of California Power Exchange but concerns, of course, remain with the design of the program and its potential price tag. Some parties point out the prematurity of the program since the requirements for additional resources are not defined or even known. Whether liked or not, the new market is coming to California. Along with the new market comes new pricing, new market players, new mechanisms, new technologies, and, no doubt, new complaints.

Olga Gorstenko
Editor Olga Gorstenko Phone: 778-296-4183 Email: olga@ze.com Advertising & Vendor Relationships Bruce Colquhoun Phone: 604-790-3299 Email: bruce.c@ze.com ZEMA Suite Inquiries Bruce Colquhoun Phone: 604-790-3299 Email: bruce.c@ze.com

Have an idea for an article or would like to contribute to an upcoming issue? Write to us at datawatch@ze.com. To access previous Back to Summary 4 issues of ZE DataWatch, go to datawatch.ze.com

October 2013

Power Markets

NGX Adds Texas Physical Power Clearing Services

On September 9, 2013, Natural Gas Exchange Inc. (NGX) announced the launch of its U.S. physical power clearing services in the ERCOT (Texas) market. The new services reflect the agreement that NGX entered into with NASDAQ OMX Commodities Clearing Company (NOCC) in July 2013. NGX aims to provide its customers with benefits like collateral efficiencies, regulatory certainty, and improved liquidity.

SGX to Launch First Asian Electricity Futures Market

On October 28, 2013, Singapore Exchange (SGX) announced it is creating the first Asian electricity futures market, set to launch by the end of 2014. SGX has received great industry support and is collaborating with the EMA, Energy Market Company (EMC), and market participants to create an effective market, which will help customers manage risk in the electricity market.

EEX Introduces French Futures

On September 23, 2013, the European Energy Exchange (EEX) announced that it will reintroduce power futures trading in the form of French Futures with physical delivery. Due to trader feedback, EEX will also offer trading of the French Futures with physical settlement on a weekly, monthly, quarterly, and annual basis, up till the end of 2013. The graph below shows the historical prices of EEX French Power Futures from August 2005 to November 2011. In this period, the futures prices ranged between 50.76 /MWh to 108.66 /MWh with the average price of 66.37/MWh.

Platts to End M2M-Power Assessments

On September 27, 2013, Platts announced a proposal to end its M2M-Power (36-month forward curves), effective December 31. This is due to Platts recent launch of the new M2MS-Power assessments on July 1, that cover 48 North American Power hubs with daily 120 months (10-year) forward curves. Feedback can be sent by October 15 to support@platts.com.

Compression Cycle Eliminates 4300 EU Energy Swaps, Forwards

On October 15, 2013, TriOptima announced that over 13 banks and energy houses have stopped more than 4,300 power and gas forwards and swaps (8.4 billion in combined notional principal value) in what has been the largest compression cycle ever seen in the energy markets. There were physical and financial natural gas and power products affected from around the globe, including: Type Power Products & Areas Affected Amprion (Germany), CEPS (Czech Republic), NGrid (UK), MAVIR (Hungary), OMEL (Spain), PUN (Italy), RTE (France), SwissGrid (Switzerland), TenneT (Netherlands), and TERNA (Italy) Baumgarten (Austria), Gaspool (Germany), NBP (UK), NCG (Germany), PEG (France), and TTF (Netherlands)

Graph created with ZEMA. Data Source: EEX

Platts Launches UK NBP Intra-day, N2EX Power Auction Assessments

On October 7, 2013, Platts announced it will publish UK NBP intra-day gas prices for within-day and next-day gas delivery, effective October 7. The products can be found on page 670 of the European Power Alert. Additionally, Platts has also begun publishing the N2EX UK power auction price, which is located on page 671 of the EPA. 5

Natural Gas

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October 2013

Power Markets

Platts Refocuses Spanish Power Assessments

On October 1, 2013, Platts announced it has refocused its Spanish power assessments through concentrating on higher liquidity contract periods. Platts launched daily assessments for weekend baseload power and also discontinued less liquid balance-of-month and balance-of-year contract assessments. To find the current assessments, see page 81 of the European Power Alert in its European Power Daily as well as in its market data.

FEBEG, Belpex to Develop Belgian Reserve Capacity Board

On September 30, 2013, FEBEG (the Belgian Federation of Electricity and Gas companies) and Belpex (the Belgian Power Exchange) announced a joint project to develop a Reserve Capacity Bulletin Board for all market participants who are active on the Belgian reserve capacity market. The new platform will provide market participants a place to post buy/sell intentions and enter into negotiations with interested parties.

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October 2013

Fossil Fuel Markets

CME Adds Transco Nat Gas Fixed Price Products Futures

On September 18, 2013, CME Group announced the addition of Transco Natural Gas (Platts IFERC) Fixed Price products futures, effective September 23, 2013. The futures are financially settled, and are traded on Globex, ClearPort, and NXPIT. Description Transco Zone 1 Natural Gas (Platts IFERC) Fixed Price Futures Transco Zone 3 Natural Gas (Platts IFERC) Fixed Price Futures Transco Zone 4 Natural Gas (Platts IFERC) Fixed Price Futures Transco Zone 6 Natural Gas (Platts IFERC) Fixed Price Futures (Clearing: existing synthetic product: was nontradable; is now tradable) Transco Zone 6 non-NY Natural Gas (Platts IFERC) Fixed Price Futures Clearing XZ1 Globex XZ1 SPAN XZ1

CME Adds EU Diesel Differentials, NY Harbor ULSD Futures

On October 7, 2013, CME Group announced the addition of futures contracts referencing the spread between European Diesel fob Rotterdam barges, New York Harbor ULSD Cargoes, and NYMEX ULSD Heating Oil, effective October, 21, 2013. The futures are financially settled, and are traded on Globex, ClearPort, and NXPIT. Description European Diesel 10ppm Barges FOB Rdam (Platts) vs. New York Harbor ULSD Futures ULSD 10ppm m Cargoes CIF NEW (Platts) vs. New York Harbor ULSD Futures ULSD 10ppm Cargoes CIF Med (Platts) vs. New York Harbor ULSD Futures Clearing EL1 Globex EL1 SPAN NY-EL

XZ3

XZ3

XZ3

E01

E01

NY-EO

XZ4

XZ4

XZ4

EP1

EP1

NY-EP

XZ

XZ

XZ

XZ6

XZ6

XZ6

CME Adds Tennessee, Texas Natural Gas Futures

On September 13, 2013, CME Group announced the addition of five natural gas fixed price futures for Tennessee and Texas, effective September 23. The futures are financially settled, and are traded on Globex, ClearPort, and NXPIT. Description Tennessee 500 Leg Natural (Platts IFERC) Fixed Price Futures Tennessee 800 Leg Natural Gas (Platts IFERC) Fixed Price Futures Tennessee Zone 0 Natural Gas (Platts IFERC) Fixed Price Futures Texas Eastern Zone M-3 Natural Gas (Platts IFERC) Fixed Price Futures Texas Gas Zone 1 Natural Gas (Platts IFERC) Fixed Price Futures Clearing ZNP Globex ZNP SPAN ZNP

CME Adds Fuel Oil Barges Fob Rdam Mini Weekly Spread Futures
On August 5, 2013, CME Group announced the addition of European 3.5% Fuel Oil Barges Fob Rdam (Platts) Mini Weekly Spread Futures, effective August 12, 2013. The futures are financially settled, and are traded on Globex, ClearPort, and NXPIT. Description European 3.5% Fuel Oil Barges Fob Rdam (Platts) Mini Weekly Spread Futures Clearing EMW Globex EMW SPAN EMW

ZZ6

ZZ6

ZZ6

ZNT

ZNT

ZNT

Z5P

Z5P

Z5P

ZTA

ZTA

ZTA

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October 2013

Fossil Fossil Fuel Fuel Markets Markets

Platts Launches Portland, Seattle Suboctane Gasoline

On October 1, 2013, Platts launched regular and premium grade, suboctane gasoline assessments for Portland and Seattle, reflecting evolving gasoline standards in the US West Coast. The new assessments reflect 84 octane, conventional suboctane gasoline and 90 octane, premium suboctane gasoline, reflecting current standards for Olympic Pipeline system shipments. As previously announced, effective March 1, 2014, Platts will discontinue finished regular and premium gasoline assessments in Seattle and Portland.

EIA Launches Monthly Drilling Productivity Report

On October 22, 2013, the U.S. Energy Information Administration (EIA) announced the launch of a new monthly Drilling Productivity Report (DPR), providing region-specific insights into oil and natural gas drilling rig efficiency, new well productivity, existing well decline rates, and overall oil and natural gas production trends. The report uses a new approach, rather than traditional indicators of future oil and gas production, and initially covers six regions that account for a majority of domestic oil and natural gas production growth.

Platts to Use eWindow for European Diesel, Jet, Gasoil Cargoes

On October 7, 2013, Platts announced that it will begin using its Editorial Window (eWindow), a web-based data-entry and communications tool, for its European diesel, gasoil, and jet CIF Northwest European cargoes assessment procedure and its Mediterranean diesel and gasoil cargoes assessment procedure, effective Thursday, October 31, 2013. This decision will create changes to the format of headlines and bids, company short-form names, final pricing periods, and to incrementability.

CME Adds Singapore 380cst Fuel Oil Mini Weekly Spread Futures
On August 5, 2013, CME Group announced the addition of Singapore 380cst Fuel Oil (Platts) Mini Weekly spread futures, effective August 12, 2013. The futures are financially settled, and are traded on Globex, ClearPort, and NXPIT. Description Singapore 380cst Fuel Oil (Platts) Mini Weekly Spread Singapore 180cst Fuel Oil (Platts) Mini Weekly Spread Clearing SMW SDM Globex SMW SDM SPAN SMW SDM

EEX Announces New H- and L- Gas Products

On September 23, 2013, the European Energy Exchange (EEX) announced that it has agreed to launch quality specific products on the Natural Gas Spot Market, effective October 1, 2013. The decision will allow traders to trade H- and L-gas directly on the exchange using the PEGAS platform, coming closer towards shifting from control energy trading in natural gas to trading via the exchange.

Argus Adds PEG Sud Day-Ahead Index

Effective October 1, 2013, Argus announced it added the Natural Gas PEG Sud day-ahead index (PA0012936) to its data feed. Data from December 2009 to September 30, 2013 will be available upon request and will be provided in data CSV file format after the October 1 launch. The data code will be added to the /DENG folder of the ftp.argusmedia.com server. PA Code PA0012936 Description Natural gas PEG Sud day-ahead index

SHFE Launches Bitumen Futures Contracts

On September 23, 2013, the Shanghai Futures Exchange announced the introduction of bitumen futures contract, approved by the China Securities Regulatory Commission, effective October 9, 2013. The listed contract months range from February 2013 to September 2015.

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October 2013

Fossil Fuel Markets

Argus, IHS McCloskey Launches API 3 Coal Index
On October 15, 2013, Argus and IHS McCloskey announced the introduction of a weekly API 3 price assessment for 5,500 kcal/kg fob Richards Bay coal in Argus/McCloskeys Coal Price Index Report. The API 3 index can be used as a reference for a lower grade of South African coal and as a gauge for calculating the appropriate discount against the 6,000 kcal/kg API 4 price, complementing the existing API 5 and API 8 indexes. The introduction is in response to changing market trends as South African coal producers place their cargoes in the east, especially in China and India. These developments are due to growing Asia-Pacific demand, additional alternative supply in the Atlantic basin, and sustained trade in lower quality coal.

Argus Adds Australia Daily LNG Index Series Assessments

Effective October 4, 2013, Argus announced it will be adding a new series of Natural gas PEG Sud day-ahead index assessments for Australia, under the code PA0012986. The code can be found at DLNGD module in Arguss DATA/DLNGD folder. PA Code PA0012986 Description Natural gas Argus Victoria index

Argus to Add European LNG Assessment

Effective November 4, 2013, Argus has announced the introduction of European LNG data series to the Argus LNG Daily publication located in the DLNGD module (in the DATA/DLNGD folder). The new series is as follows: PA Code PA0013148 Description LNG fob Iberian Peninsula reload half-mth

Argus to Add Three Ukrainian Motor Fuel Assessments

Effective October 21, 2013, Argus has announced it will add three Ukrainian daily assessments to its Argus Ukrainian Motor Fuels publication. The new series is as follows: PA Code PA0012999 PA0013000 PA0013001 Description Gasoil diesel summer 10ppm fca Ilovaisk Gasoil diesel winter 10ppm fca Illovaisk Gasoil diesel 10ppm daf Russia/Ukraine border

Argus to Expand Northeast Asia, China, India LNG Assessments

Effective November 4, 2013, Argus has announced that it will be adding price types to three Asia-Pacific LNG data series located in the DLNGD module (in the DATA/DLNGD folder). The introduction of the low and high prices will affect the midpoint price types, changing it to 3 decimal places. The affected products are as follows: PA Code PA0010603 PA0010604 PA0010605 Description LNG des Northeast Asia (ANEA) half-mth LNG China delivered half-month LNG India delivered half-month

Argus Adds Colonial Pipeline 85 CBOB A Grade Gasoline Products

Effective October 1, 2013, Argus has announced it will add three new Colonial pipeline 85 CBOB A grade gasoline assessments to the DHP data modules in the DUSPR folder of the ftp.argusmedia.com server. The new series is as follows: PA Code PA0006998 PA0012950 PA0012951 Description Gasoline 85 CBOB Colonial A cycle Gasoline 85 CBOB Colonial A 9.0 RVP Supplemental wtd avg cycle Gasoline 85 CBOB Colonial A wtd avg cycle

Argus Adds API 3 fob Richards Bay 5500 NAR Index Assessment
Effective October 4, 2013, Argus announced it will add the API 3 fob Richards Bay 5500 NAR index (Price Type 4) assessment to its list of reports. PA Code PA0012924 Description Coal API 3 index (fob Richards Bay 5500)

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October 2013

Fossil Fuel Markets

Argus Ends 6 Quarterly Central Appalachian Coal Barge Assessments
Effective October 8, 2013, Argus has announced that it will discontinue six Central Appalachian coal barge assessments in the Argus Coal Transportation report and datafeed (located in the CTR datafile within the DATA\CTR folder). The affected products are as follows: PA Code PA0006959 PA0006960 PA0006961 Description Central App US Barge 1.2 12000 del Pittsburgh quarter Central App US Barge 1.2 12000 del Southwest Ohio quarter Central App US Barge 1.2 12000 del St. Louis quarter Central App US Barge 1.2 12000 SO2 Adj del Pittsburgh quarter Central App US Barge 1.2 12000 SO2 Adj del Southwest Ohio quarter Central App US Barge 1.2 12000 SO2 Adj del St. Louis quarter

Argus Adds Butadiene Assessment

ffective October 10, 2013, Argus has announced it will add a Butadiene assessment to the Argus DeWitt Butadiene publication dbutadiene data file (located in the DATA/DButadiene folder). The new series is as follows: PA Code PA0012991 Description Butadiene cfr southeast Asia month

Argus Ends 36 Daily Coal Assessments

Effective October 4, 2013, Argus announced that it will discontinue 36 daily coal assessments. For a full list of discontinued assessments, see Arguss Subscriber Notes here.

PA0006965 PA0006966 PA0006967

Argus Discontinues 3 Russian Gasoil Diesel Assessments

Effective October 16, 2013, Argus has announced that it will discontinue assessments for three Russian gasoil diesel winter products delivered to Central Asia in the Argus Caspian Market data series (located in the dark.csv files in the DARK folder). The affected products are as follows: Graph created with ZEMA. Data Source: NYMEX In the above graph, the prompt price for Central Appalachian Coal (CAPP) is plotted against that of Henry Hub Natural gas as published by NYMEX. As seen above, since 2009, the coal and natural gas prices have switched direction of their movement and the gap between them has been increasing. The factors influencing the demand of CAPP coal are numerous and changing. For more on this, read our blog Mining the Issue of Central Appalachian Coal Decline . PA Code PA0008582 PA0008583 PA0008584 Description Gasoil diesel winter daf Orsk Novy Gorod Gasoil diesel winter daf Kombinatskaya Gasoil diesel winter daf Kanisay

Argus to End Two Ukrainian Motor Fuel Assessments

Effective October 21, 2013, Argus has announced it will discontinue two Ukrainian daily assessments. The affected products are as follows: PA Code PA0007207 PA0007209 Description Gasoline A-92 fca Shebelinka Gasoline A-80 fca Shebelinka

10

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October 2013

Fossil Fuel Markets

Platts to End USGC Premium CBOB
On September 19, 2013, Platts proposed to end its assessment for US Gulf Coast Premium CBOB (D-Grade). This is due to Colonial Pipeline no longer shipping this grade on a regular basis, causing the assessments liquidity to decrease. These assessments can be found on page 330 of Platts Global Alert (PGA), and in the Platts assessment database under code AAWRW00 for pipeline Premium CBOB, and AAWET00 for waterborne Premium CBOB. The seasonal supplemental assessment for Premium CBOB can be found on page 332 of the PGA under the code AASOC00.

Argus Ends European Coal Freight Assessment

Effective October 4, 2013, Argus announced it has discontinued the Gdansk-Rotterdam panamax freight assessment located in the DFR folder \DFR. The affected data code is as follows: PA Code PA0003073 Description Coal panamax size Gdansk-Rotterdam

Argus Ends 12 Russia-Central Asia Assessments

Effective October 15, 2013, Argus announced that it will discontinue 12 Russian products that are delivered to Central Asia. The following codes have been affected and will no longer be in the dark.csv files in Arguss DARK folder: PA Code PA0007441 PA0007442 PA0007443 PA0007444 PA0007445 PA0007446 PA0007447 PA0007448 PA0007449 PA0007450 PA0007451 PA0007452 Description Gasoline Ai80 daf Orsk Novy Gorod Gasoline Ai92 daf Orsk Novy Gorod Gasoline Ai95 daf Orsk Novy Gorod Diesel summer daf Orsk Novy Gorod Gasoline Ai80 daf Kombinatskaya Gasoline Ai92 daf Kombinatskaya Gasoline Ai95 daf Kombinatskaya Diesel summer daf Kombinatskaya Gasoline Ai80 daf Kanisay Gasoline Ai92 daf Kanisay Gasoline Ai95 daf Kanisay Diesel summer daf Kanisay

Platts to End China Fuel Oil Assessments

On October 1, 2013, Platts proposed to discontinue all domestic and China fuel oil and dirty tanker assessments, effective January 2, 2014. The discontinuation is due to changing market conditions as the domestic Chinese fuel oil market reduces in size and activity, including the rapid expansion of refining capacity and the increased use of alternative utility feedstocks natural gas.

Platts to Exclude Three Ports in CFR China Styrene Assessment

On September 30, 2013, Platts announced it will exclude the three ports of Shanghai, Nanjing, and Zhenjiang, from its CFR China styrene monomer assessment, effective October 1. These exclusions reflect the changing market trading patterns for Asian styrene monomers.

Platts to End M2M-Gas Assessments

On September 27, 2013, Platts announced a proposal to end its M2M-Gas (36-month forward curves), effective December 31. This is due to Platts recent launch of the new M2MS -Gas assessments on July 1, that cover 79 North American gas hubs with daily 120 months (10-year) forward curves. Feedback can be sent by October 15 to support@platts.com.

Platts to End Questar Pipeline Bidweek Location Listing

On October 3, 2013, Platts announced its proposal to terminate its monthly bidweek listing for Questar Pipeline, Rocky Mountains, effective April 30, 2014, due to low monthly bidweek dealmaking levels. The proposal would end the listing in Platts monthly bidweek North American spotprice survey; however, the listing would remain in Platts daily price survey. Currently, the listing is found in the "Prices of Spot Gas Delivered to Pipelines" tables in Inside FERC's Gas Market Report, Energy Trader and Gas Daily Price Guide.

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October 2013

Platts to Discontinue US Waterborne Low Sulfur Diesel Assessments

On October 9, 2013, Platts announced that it will terminate its waterborne assessments for low sulfur diesel on the US Gulf Coast and US West Coast, effective January 1, 2014. The decision is due to reduced US demand for 500 ppm diesel, since demand has mostly shifted to ultra low sulfur diesel. The US Gulf Coast assessment is found on Page 481 of Platts Global Alert (PGA) under the code POAES00. The US West Coast assessment is found on Page 482 of PGA under the code AADDV00. These assessments are also found in US Marketscan and Oilgram Price Report. Comments can be sent to americas_products@platts.com with a cc to pricegroup@platts.com.

Platts to Change US Atlantic Coast Residual Fuel Cargo Size

On October 15, 2013, Platts announced it will change the cargo sizes for U.S. Atlantic Coast residual fuel oil assessments, effective April 1, 2014. With this change, the cargo size would be changed to 50,000 barrels from 120,000 barrels, in order to match prevalent industry norms. Platts will continue to provide market assessments on a delivered basis.

Platts to Reflect Ex-duty Cargoes in CIF NWE Jet Fuel Assessments

On October 15, 2013, Platts announced it will now reflect exduty cargoes for its benchmark Jet CIF Northwest Europe Cargo fuel assessments, effective January 1, 2014. The new ex-duty cargoes are used to reflect changes in the European Union taxation policy changes that make substantial supplies of jet fuel subject to taxation. For more background on this, see our previous DataWatch announcement here.

Platts to Amend Asia Gasoline Density Specs

On September 13, 2013, Platts proposed to improve the specifications for gasoline represented in its FOB Singapore gasoline 92 RON unleaded, 95 RON unleaded and 97 RON unleaded assessments. Platts would like to boost the minimum T50 distillation temperature threshold for Singapore gasoline assessments from the present 75 degrees Celsius to 80 degrees Celsius, along with a new minimum density requirement of 0.720 g/ml, effective January 1, 2014. The proposed changes are due to changing quality standards in Singapore, where gasoline trading generally reflects requirements in main regional markets.

Platts to Change US Atlantic Coast Gas to 15RVP

On October 15, 2013, Platts announced that as part of its seasonal RVP shift, it will begin supplemental U.S. Atlantic Coast gasoline assessments of 15 RVP gasoline, effective October 28. The main assessment continues to reflect a value of 13.5 RVP. However, due to pipeline schedules, on November 4, the main assessment will be changed to reflect 15 RVP and the 13.5 RVP supplemental assessments will be stopped.

Platts Proposes Four Changes to US Spot Gas Survey

On October 3, 2013, Platts proposed four additions and changes to its daily and monthly bidweek North American spot-price surveys. The changes are as follows: A new Westcoast Energy, Station 2, location in the monthly bidweek survey A new name for the CenterPoint Energy Gas Transmission, East, listing in the daily and monthly bidweek surveys A change to the Tennessee Gas Pipelines description, zone 6 delivered A new Tennessee zone 6 (300 leg) delivered listing for the daily survey

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October 2013

Fossil Fuel Markets

Platts to Reduce Portland Bunker Volumes

On October 15, 2013, Platts announced a proposal to reduce the bunker fuel assessment volumes for Portland, Oregon, from 500-2,000mt to 200-800mt, effective December 1. The reduction is to reflect the market volume changes for both high and low sulfur bunkers where the volumes are lower than other U.S. West Coast ports (due to Columbia River draft restrictions). The affected products are as follows: Code PBAAX00 PUADJ00 AAGRO00 AAGRL00 AAWTB00 AAWSZ00 AAWTA00 AAWSY00 AAWYE00 AAWYX00 Description ex-wharf 380 CST bunker fuel (high sulfur) ex-wharf 180 CST bunker fuel (high sulfur) delivered 380 CST bunker fuel (high sulfur) delivered 180 CST bunker fuel (high sulfur) ex-wharf 1%S 380 CST bunker fuel (low sulfur) ex-wharf 1%S 180 CST bunker fuel (low sulfur) delivered 1%S 380 CST bunker fuel (low sulfur) delivered 1%S 180 CST bunker fuel (low sulfur) delivered MGO (marine gas oil) ex-wharf MDO (marine gas oil)

Argus Changes Differential Bases for 6 Ukrainian Gasoil Diesel Products

Effective October 17, 2013, Argus has announced that it will be changing the differential basis of six Ukrainian gasoil diesel assessments in the Argus Ukrainian Motor Fuels data series (located in the dumf data files in the DATA/DUMF folder). The affected products are as follows: PA Code PA0007417 PA0007821 PA0007823 PA0007823 PA0007824 PA0007825 Description Gasoil diesel summer 350ppm ddu Novograd Gasoil diesel summer 350ppm Novograd Ukrainian border netback Gasoil diesel summer 350ppm Ventspils Ukrainian border netback Gasoil diesel summer 10ppm daf Ukrainian border Gasoil diesel Korosten - Ukrainian border netback Gasoil diesel Ventspils - Ukrainian border netback

IHS Releases Next Generation of IHS AccuMap

On September 25, 2013, IHS Inc., announced the launch of the latest version of IHS AccuMap, a new interpretation solution platform for the Canadian oil and gas industry. The latest generation has a more user-friendly interface and improved navigation, allowing users to view various data sets and make decisions faster. The map can be found at www.ihs.com/newAccuMap.

The same products will be available with a new differential basis from the start dates June 27, 2013 (PA0007417, PA0007821, and PA0007822) and April 24, 2012 (PA0007823, PA0007824, and PA0007825).

Argus to Change Coal Spark Spread Assessments

Effective November 8, 2013, Argus has announced it will change the categories for six Spark spread Ercot assessments in the Argus US Electricity report. Argus datafeeds will not be affected as only the metadata will change. The affected products are as follows: PA Code PA0008104 PA0008105 PA0008106 PA0008143 PA0008144 PA0008145 Description Spark spread Ercot North Coal 10000HR peak month Spark spread Ercot North Coal 10000HR peak season Spark spread Ercot North Coal 10000HR peak year Spark spread Ercot North Gas peak month Spark spread Ercot North Gas peak season Spark spread Ercot North Gas peak year

CME Postpones Crude Oil Delisting

On October 18, 2013, CME Group announced the postponement of the Seventh Month Crude Oil TAS Removal from Listing Rules, originally announced effective October 21, 2013, due to CFTC regulatory review activity. The postponed date will be determined once the CFTC regulatory review activity resumes. The Crude Oil TAS futures will change from the current listing schedule of months 1, 2, 3, and 7 to months 1, 2, and 3, on trading platforms CME Globex, Open Outcry, and CME ClearPort.

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October 2013

Fossil Fuel Markets

Platts Suspends EIA Oil Market Data Due to Shutdown

On October 15, 2013, Platts announced that it has suspended publication of its U.S. Department of Energys Energy Information Administration (EIA) oil market data due to the government shutdown. The suspension affects the Platts publications: US Marketscan, Platts Global Alert, and Platts Market Data for the following products: Page PGA076 PGA077 PGA078 PGA088 PGA095 PGA099 Description DOE Quick Summary US Apparent Demand Weekly Statistics EIA Weekly Refiner Stocks EIA Weekly Refiner Stocks EIA Quick Summary

CME To Use OPIS for Fuel Contracts to Replace Shutdown Data

On October 16, 2013, Oil Price Information Service (OPIS) announced that the Chicago Mercantile Exchange (CME) would be using OPIS for its fuel contracts because of missing Energy Information Administration (EIA) data due to the partial federal government shutdown. OPIS created a new report called the OPIS Retail Gasoline and Diesel Surcharge Index, which reflects EIAs format to fill the data gap.

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October 2013

Agriculture, Forestry and Metal Markets

NCDEX Launches Guar Seed Futures

On September 5, 2013, the National Commodity and Derivatives Exchange Limited (NCDEX) introduced futures contracts in Guar Seed 10 MT (GUARSEED10). Futures expiring in the months of October 2013, November 2013, December 2013 and January 2014 will be available for trading from September 05, 2013. COMTRACK will be exclusively used to settle all Guar Seed 10 MT futures contracts expiring in October 2013 and thereafter. For contract specifications, click here.

NCDEX Adds 16 Agriculture Contracts, Premium/Discounts

On August 8, 2013, National Commodity and Derivatives Exchange Limited (NCDEX) announced it added premium/discount differences for its 16 new contracts to be introduced August 10, 2013. The new contracts can be found in the table below: Commodity Barley Chana Cotton Seed Oil Cake Coriander Jeera Maize Polyvinyl Chloride Rbd Palmolein Rubber Mustard Seed Steel Long Sugar M Grade Soya Bean Refined Soya Oil Turmeric Wheat Symbol Barleyjpr Charjddel Cocudakl Dhaniya Jeeraunjha Maizekhrf Pvc Rbdpalmoln Rbrrs4koc Rmseed Steellong Sugarm200 Sybeanidr Syorefidr Tmcfgrnzm Wheat Expiry Date 20-Dec-13 20-Dec-13 20-Feb-14 20-Dec-13 20-Dec-13 20-Dec-13 20-Nov-13 29-Nov-13 20-Dec-13 20-Dec-13 20-Dec-13 20-Feb-14 20-Jan-14 20-Jan-14 20-Dec-13 20-Dec-13

ICE to Add Canola Futures

On October 18, 2013, ICE Futures Canada announced that it will add one-month Canola calendar spread options on the ICE Platform and clearing through ICE Clear Canada, effective November 25. The new product will be available for Clearing Participant and vendor testing on November 1. Code RS1 Description Canola 1-Month CSO

NCDEX Adds Gold Futures

On August 27, 2013, the National Commodity and Derivatives Exchange Limited (NCDEX) introduced futures contracts in Gold 1 KG (GOLD). Futures expiring in the months of October 2013, December 2013 & February 2014 will be available for trading from August 27, 2013. COMTRACK will be exclusively used to settle all Gold 1 KG (GOLD) futures contracts expiring in October 2013 and thereafter. For contract specifications, click here.

Argus Adds Two Dry Bulk Iron Ore Freight Rates

Effective, October 7, 2013, Argus announced it will add two dry bulk freight rates for Tubarao to Antwerp 160,000t and Tubarao to Qingdao 160,000t iron ore, both capesize. The code can be found in the DFR1 file (located in the \DFR folder). PA Code PA0012226 PA0012227 Description Iron ore Tubarao-Antwerp cape size 160kt Iron ore Tubarao-Qingdao cape size 160kt

NCDEX Adds Silver Futures

On August 27, 2013, the National Commodity and Derivatives Exchange Limited (NCDEX) introduced futures contracts in Silver 30 KG (Symbol: SILVER). Futures expiring in the months of December 2013, March 2014 & May 2014 will be available for trading from August 27, 2013. For contract specifications, click here.

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October 2013

Agriculture, Forestry and Metal Markets

Argus Adds FMB Fertilizer Europe Datafeed

Effective October 25, 2013, Argus announced it will be adding the FMB Fertilizer Europe datafeed, with 40 PA Coded product assessments and six freight product assessments included. The files can be found in the deurofert data file inside the DATA/DEuroFert folder weekly. Historical data is available upon request at datahelp@argusmedia.com. For a full list of codes and products introduced, please see the Argus update here. The graph below shows forward curves of New Orleans urea and diammonium phosphate fertilizer futures on LCH.Clearnet.

Argus Adds 14 FMB North American Fertilizer Assessments

Effective October 10, 2013, Argus announced it will add fourteen FMB North American fertilizer assessments to the Argus FMB Weekly Nitrogen report and datafeed. PA Code PA0013083 PA0013084 PA0013085 PA0013086 PA0013087 PA0013088 PA0013089 PA0013090 PA0013091 PA0013092 Description Urea granular bulk fob US Gulf nutrient value USD/st Urea granular bulk fob US Gulf nutrient value USC/lb UAN 32 fob New Orleans nutrient value USD/st UAN 32 fob New Orleans nutrient value USC/lb Ammonium nitrate bulk fob New Orleans nutrient value USD/st Ammonium nitrate bulk fob New Orleans nutrient value USD/lb Ammonia fob US Gulf domestic barge nutrient value USD/st Ammonia fob US Gulf domestic barge nutrient value USC/lb DAP bulk US Gulf barge nutrient value USD/st DAP bulk US Gulf barge nutrient value USC/lb MAP bulk fob New Orleans nutrient value USD/st MAP bulk fob New Orleans nutrient value USD/lb Potash Granular MOP bulk fob New Orleans nutrient value USD/st Potash Granular MOP bulk fob New Orleans nutrient value USD/lb

Graph created with ZEMA. (Data Source: LCH.Clearnet)

PA0013093 PA0013094 PA0013095 PA0013096

Argus Adds Two Nitrogen Fertilizer Assessments

Effective October 10, 2013, Argus announced it will add two nitrogen fertilizer assessments to the Argus FMB Weekly Nitrogen report and data feed. PA Code PA0012997 PA0012998 Description Urea granular bulk cfr Brazil Dry urea Mideast Gulf - Brazil 30-35kt

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October 2013

Agriculture, Forestry and Metal Markets

CME Adds Soybean Meal Calendar Spread Options

On October 9, 2013, CME Group has announced that it will add three soybean meal calendar spread options, effective November 11, 2013. The futures are financially settled, and will be traded on Globex. Description Soybean Meal Calendar Spread Options December July Soybean Meal Calendar Spread Options August December Soybean Meal Calendar Spread Options September December Clearing SM3 Globex MC3 SPAN SM3

Marex Spectron Launches Financial Iron Ore Broking in Oslo, Singapore

On October 14, 2013, Marex Spectron announced the introduction of financial ore broking desks in Oslo and Singapore. The introduction is reflective of growing client demand for access to hedging and speculation strategies as the iron ore market continuously expands, with a growing demand for steel products and industrial production. The addition complements Marex Spectrons existing brokerage of physical products in the ferrous complex. A majority of the global swaps volumes are cleared through SGX Asia Clear in Singapore

SM4

MC4

SM4

SM5

MC5

SM5

Platts Discontinues Eight Steel Product Publications

On October 4, 2013, Platts announced that it has discontinued the niche and regional publications listed below in order to efficiently organize its steel product publication lineup. Other content, such as price assessments, data, and news, will be listed mostly in the Global Briefing. Last Publication Day October 25, 2013 October 25, 2013 October 25, 2013 October 25, 2013 October 25, 2013 October 25, 2013 October 25, 2013 November 22, 2013 November 22, 2013 November 22, 2013 Publication Briefing - Europe Briefing - Asia Briefing - China (language) Briefing - Tubes & Pipes Briefing - Stainless Steel Briefing - North America World Steel Review - Italian (language) Tubular Market Report American Steel Review Panorama da Sucata

CME Adds Non-Consecutive Soybean Oil Options

On October 9, 2013, CME Group has announced that it will add three soybean oil calendar spread options effective, November 11. The futures are financially settled, and will be traded on Globex. Description Soybean Oil Calendar Spread Options December July Soybean Oil Calendar Spread Options August December Soybean Oil Calendar Spread Options September - December Clearing OC3 Globex NC3 SPAN OC3

OC4

NC4

OC4

OC5

NC5

OC5

NYSE Euronext Lists Gold Bullion Securities in Brussels

On October 22, 2013, NYSE Euronext announced that it has listed Gold Bullion Securities (GBS), the worlds first physically-backed gold exchange traded product on its Brussels market. The Gold Bullion Securities is a product of ETF securities, a leading, independent provider of Exchange Traded Products (ETPs). The addition is reflective of investor demand for physical gold, initially listed on Euronext Brussels in response to gold demand from Belgian investors. 17
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October 2013

Agriculture, Forestry and Metal Markets

CME Dairy Futures, Options Settlement Unchanged by Shutdown

On October 8, 2013, CME Clearing announced that despite the government shutdown, it is CME Groups understanding that the weekly and monthly USDA/AMS Class and Component prices will still be released causing CMEs final settlement for CME Milk (Class 3 & 4), Butter, Cheese, Nonfat Dry Milk, and Whey futures and options contracts to occur as scheduled on Wednesday, October 30. The graph below shows the percent change in the price of Class IV Milk and Cash-Settled Butter futures on CME Group.

Graph created with ZEMA. (Data Source: CME Group)

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October 2013

Environmental Markets and Weather Services

Argus Adds Four International Methanol Codes

Effective September 27, 2013, Argus announced the following four international methanol codes will be added to the dmethanol data file in its DATA/DMethanol folder: PA Code PA0012987 PA0012988 PA0012989 PA0012990 Description Methanol fob Western Canada distributor USD/t month (Price type: 8) Methanol Methanex fob MEPCP USD/t quarter (Price type: 8) Methanol fob Europe contract USD/t quarter (Price type: 8) Methanol fob Rotterdam T2 spot USD/t (Price types: 1 & 2)

NYMEX Eliminates Biodiesel Futures Contracts

On August 8, 2013, CME Group announced that NYMEX will eliminate all contract months after December 2013 from CME Globex, CME ClearPort, and the NYMEX trading floor for the derivatives listed in the table below, effective August 19, 2013. Code Clearing/ Globex 1A / A1A 2L / A2L LE / SLE KE / AKE Product Name Argus Biodiesel RME FOB Rdam Futures FAME 0 Biodiesel FOB Rdam (Argus) Futures FAME 0 Biodiesel FOB Rdam (Argus) vs. Gasoil Futures RME Biodiesel FOB Rdam (Argus) vs. Gasoil Futures

CME Expands NYMEX RINs Listings

Effective September 30, 2013, and for trade date October 1, CME Group announced that the New York Mercantile Exchange (NYMEX) will expand the listing schedule for seven RINs products. From its current Globex listing schedule of one month, it will be expanded to six months. The affected products are as follows: Clearing / Globex D62 / D62 D63 / D63 D64 / D64 D52 / D52 D53 / D53 D42 / D42 D43 / D43 Title D6 Ethanol RINs (Argus) 2012 Futures D6 Ethanol RINs (Argus) 2013 Futures D6 Ethanol RINs (Argus) 2014 Futures D5 Advanced Biofuel RINs (Argus) 2012 Futures D5 Advanced Biofuel RINs (Argus) 2013 Futures D4 Biodiesel RINs (Argus) 2012 Futures D4 Biodiesel RINs (Argus) 2013 Futures

The bar graph below sketched in ZEMA shows the historical prices of Argus Biodiesel RME FOB Rdam Swap Contract (NYMEX Future Settlements):

Graph created with ZEMA. Data Source: NYMEX

Argus Ends Nitrogen Fertilizer Assessment

Effective October 10, 2013, Argus has announced it will discontinue one nitrogen fertilizer assessment from the Argus FMB Weekly Nitrogen report and data feed. The affected product is as follows: PA Code PA0009783 Description Dry urea Black Sea - WC India 40-50kt

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October 2013

Environmental Markets and Weather Services

Argus Ends Two East China Domestic Methanol Codes

Effective September 27, 2013, Argus announced the following two codes will no longer be published: PA Code PA0012867 PA0012868 Description Methanol ex-works east China domestic Yuan/t (Price type: 1 & 2) Methanol ex-works east China domestic USD/t (Price type: 1 & 2)

The following equivalent codes will continue to display methanol ex-works east China domestic Yuan/t prices: PA Code PA0011995 PA0011996 Description Methanol ex-works east China domestic Yuan/t (Price type: 1 & 2) Methanol ex-works east China domestic $/t (Price type: 1 & 2)

Argus Changes Four International Methanol Codes

Effective September 27, 2013, Argus announced it will be changing the following four methanol international codes: PA Code PA0011986 Old Description Methanol fob Western Canada distributor month Methanol Methanex fob MEPCP quarter Methanol fob Europe contract quarter Methanol fob Rotterdam T2 spot New Description Methanol fob Western Canada distributor CAD/t month Methanol Methanex fob MEPCP EUR/t quarter Methanol fob Europe contract EUR/t quarter Methanol fob Rotterdam T2 spot EUR/t

PA0011988

PA0012554

PA0012560

CME Changes Kansas City Hard Red Winter Wheat from KCB to CBT
On October 10, 2013, CME announced that the Kansas City Hard Red Winter Wheat Contract will have its Designated Contract Market (DCM) switched from Kansas City Board of Trade (KCB) to Chicago Board of Trade (CBT). The changes apply to seven wheat assessments; for the full list of affected products, see the original CME Update. 20
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October 2013

FX, Interest Rates, Credit and Equity Indexes

Eurex to Launch Six Currency Pair Derivatives

On August 21, 2013, Eurex Exchange announced that currency derivatives (FX contracts) will also be available as exchange-listed products, effective October 7, 2013. At first, the new asset class will include the following currency pairs: EUR/USD, EUR/GBP, EUR/CHF, GBP/USD, GBP/CHF, and USD/CHF. The FX futures will be tradable between 8:00 a.m. and 10:00 p.m. CET and the FX options from 8:00 a.m. to 7:30 p.m. CET. They will be delivered via the international currency settlement system Continuous Linked Settlement. Eurexs decision helps improve the integrity and transparency of financial markets.

Xetra Launches Daily Hedged Energy ETC

On October 21, 2013, Deutsche Brse announced the introduction of a new energy sector exchange traded commodity (ETC) issued by ETF Securities on Xetra. The new exchange traded commodity reflects price movements of futures contracts on individual commodities in the energy sector, including natural gas, Brent crude and WTI oil, as well as heating oil. The reference index is also hedged against US dollar exchange rate fluctuations.

Xetra Gains Three db X-trackers ETFs

On September 6, 2013, Deutsche Brse announced the addition of three db X-trackers ETFs to its XTF segment, including db X-trackers II Global Sovereign UCITS ETF (LU0908508731), db X-trackers II iBoxx Global Inflation-linked UCITS ETF (LU0908508814), and db X-trackers MSCI World Index UCITS ETF (LU0659579733). The new additions provide investors with access to globally issued government bonds, inflation-linked government and quasi-government bonds, and the performance of stock corporations around the world respectively. For full details on the three new db X-trackers ETFs, see the full product details here.

Colombia, Chile, Peru Integrate Foreign Exchange Markets

On October 2, 2013, Bolsa Electronica de Chile, the Colombian Securities Exchange, the Lima Stock Exchange, Set ICAP FX of Columbia, and Perus Datatec announced the launch of a new integration tool, Foreign Currency Regional Spot, for the money markets of Chile, Peru and Colombia. The new tool acts as a platform to facilitate operations of exchange between the three South American Pacific countries, which will aid in the development of the MILA market.

Xetra Gains Three SPDR ETFs

On August 28, 2013, Deutsche Brse announced the addition of three SPDR-ETFs to Xetra, including SPDR Barclays 0-3 Year Euro Corporate Bond UCITS ETF (IE00BC7GZW19), SPDR Barclays 0-3 Year US Corporate Bond UCITS ETF (IE00BC7GZX26), and SPDR Barclays 1-3 Year U.S. Treasury Bond UCITS ETF (IE00BC7GZJ81). The new additions allow investors to participate in the performance of corporate and government bonds with residual maturities of less than three years. For full details on the three new SPDR-ETFs, see the full product details here.

NYSE Liffe Launches GBP/USD, GBP/EUR Options and Futures

On September 16, 2013, NYSE Liffe launched GBP/USD and GBP/EUR options and futures for its Amsterdam market. The new derivatives are attractive for retail and professional investors who would like to invest in currency derivatives without physical delivery and hedge currency risk. The options and the futures will both have lifetimes that vary from one to 12 months at first. The last trading day will be the third Friday of the expiry month.

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October 2013

FX, Interest Rates, Credit and Equity Indexes

CME Adds USD, ZAR Futures Contracts

On September 12, CME Group announced the addition of U.S. Dollar and South African Rand futures contracts, effective September 23. The futures are financially settled, and are traded on Globex and ClearPort. Description U.S. Dollar/South African Rand Futures Clearing ZAR Globex ZAR SPAN ZAR

CME Adds CDX, iTraxx Index Series

On September 18, 2013, CME Group announced the addition of a new CDX and iTraxx index series, effective September 20. Effective September 27, 2013, an additional CDX index series will be eligible for clearing. The new series is as follows: Index & Series September 20 CDX.IG; Series 21 CDX.EM; Series 20 iTraxx Europe (Main); Series 20 iTraxx Europe HiVol; Series 20 iTraxx Europe Crossover; Series 20 Index & Series September 27 CDX.HY; Series 21

SGX Launches Six Asian Currency Pairs

On October 28, 2013, Singapore Exchange (SGX) announced its plans to launch Asian foreign exchange (FX) futures for deliverable and non-deliverable Asian currencies, effective November 11, 2013. At first, futures contracts for six currency pairs will be released, consisting of AUD/USD, AUD/JPY, USD/SGD, INR/USD, KRW/USD, and KRW/JPY, with plans to release more in the next 12-18 months. The new futures give investors improved transparency efficiency, help minimize risk, and are convenient for those living in the Asian time zone.

CME Changes CDX Index Liquidity Margin Methodology

On September 26, 2013, CME Group announced the liquidity factor calculation change for the margin methodology for CDS Index Credit Default Swap contracts, effective October 4. The liquidity factor will include the market risk exposure from the SDV01 portfolio and the basis risk exposure from the RSDV01 portfolio. In addition, CME will introduce a charge for Duration/Series/Tenor (DST) based floor liquidity.

CME Adds S&P MLP Index Futures Contracts

On September 13, 2013, CME Group announced the addition of S&P MLP index futures, effective September 23. The futures are financially settled, and are traded on Globex and ClearPort. Description S&P MLP Index Futures Clearing MLP Globex MLP SPAN MLP

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October 2013

Other Matters

TMX Adds CDN Implied Volatility, Greeks Analytics Feed

On August 27, 2013, TMX announced the implementation of its new Canadian implied volatility and Greeks analytics feed for options traded on Montral Exchange Inc. The new feed will be accessible for traders via the TMX Atrium global network as well as other content distributors. With its new product, TMX aims to help its clients to make knowledgeable and effective trading decisions.

HKEx Upgrades Derivatives Trading, Clearing Systems

On October 16, 2013, Hong Kong Exchanges and Clearing Limited (HKEx) announced it has upgraded the trading and clearing systems for both its derivatives market Hong Kong Futures Automatic Trading System (HKATS) and Derivatives Clearing and Settlement System (DCASS). HKEx has upgraded to Genium INET, a new technology platform to provide better performance and to support further market development. Some of the improvements include enhanced system clearing and trading capacity, trade processing capability, new central gateways for participants, and new functionalities (e.g. TailorMade Combination). The system upgrade is a part of HKExs Orion technology initiatives, which started last year in September.

ISE Gemini Adds 200 Products, Full Penny Pilot

On September 30, 2013, ISE Gemini announced it had completed an addition of 200 products, including all the options classes for the penny pilot and the most active in the non-penny pilot segment. ISE Gemini now houses around 500 products that represent 90% of the ETF and equity options industry volume. All membership, application, market data and tradition right fees have been waived by ISE Gemini until January 1, 2014. For a full listing of the new products, click here.

Euronexts Mini Futures Now Certified

On August 21, 2013, NYSE Euronext (Euronext) requested expedited review by the Commodity Futures Trading Commission (CFTC) of its Euronext Amsterdam AEX-Index mini futures contract and its Euronext Paris CAC40 Index mini futures contract, so that they can become available to the American public. After reviewing the contracts, the CFTCs Division of Market Oversight concluded that they satisfy the requirements of the Commodity Exchange Act (Act) and the Commissions Regulations and thus may be offered or sold in the U.S. Euronext aims to make the contracts available for trading through its direct access terminals in the U.S.

Boerse Stuttgart to Use NASDAQ OMXs Trading Technology

On September 10, 2013, the NASDAQ OMX Group announced that its leading Genium INET trading technology will support Boerse Stuttgarts market model in 2015. The upgrade to NASDAQ OMXs technology will improve Boerse Stuttgarts trading engine, which serves as Europes principal exchange for private investors.

GFI Approved to Run Swap Execution Facility

On September 16, 2013, GFI Group announced that its subsidiary, GFI Swaps Exchange LLC, has been temporarily approved by the Commodity Futures Trading Commission (CFTC) to run a Swap Execution Facility (SEF) for the trading of regulated swaps in fixed income, interest rates, foreign exchange, energy, commodity, and equity markets. The exchange will encompass the following trading systems: CreditMatch, GFI ForexMatch, GFI RatesMatch, and EnergyMatch. GFI Group hopes to enhance the transparency and integrity of swap markets while providing clients with regulatory trust and flexibility.

HKEx Starts Orion Market Data Platform Rollout

On September 30, 2013, Hong Kong Exchanges and Clearing Limited (HKEx) announced it begun to roll out the first phase of its Orion Market Data Platform (OMD) by introducing its new system into the securities market. The OMD allows HKEx to share a wide range of datafeed products (including different features and content) and it provides low-latency market data to information vendors, market participants, and investors. HKEx also launched a historical securities and derivatives subscription data product (including the Historical Full Book Securities Market product) to help provide support for market trading and research. 23

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October 2013

Other Matters

EEX Approves New Derivatives Market Trading System

On September 23, 2013, the European Energy Exchange (EEX) announced its approval to upgrade the present EUREX Derivatives Market trading system to the T7 trading system, effective December 2, 2013. The new T7 trading system, created by Deutsche Brse AG, has improved performance and functionality for traders.

Xetra Gains New Risk-weighted Commodity Index Fund

On September 12, 2013, Deutsche Brse announced that a risk-weighted commodity index fund issued by Ossiam is available on the Xetra. The ETFs name is Ossiam Risk Weighted Enhanced Commodity Ex Grains UCITS ETF (EUR), and the ISIN is LU0876440578. This is the first time investors have a chance to engage in the performance of a riskweighted commodity index ETF. The new index fund tracks the Risk Weighted Enhanced Commodity Ex Grains Index, which reflects a basket of 20 commodity futures contracts that are weighted given their volatility.

Deutsche Brse Approves 1 billion RWE Prime Standard Bond

On August 8, 2013, Deutsche Brse AG announced that the RWE Finance BV bond (ISIN: XS0412842857) was added to Deutsche Brse's Prime Standard for corporate bonds. The 1 billion bond, under the guarantee of RWE AG, has an interest rate of 6.5%, a nominal denomination of 1,000, and matures on August 10, 2021. RWE is a leading European gas and electricity provider that is involved from end-to-end in the energy value chain.

IHS CAPS Universe Incorporated Into Aras Innovator PLM

On September 4, 2013, IHS Inc. announced that it has partnered with Aras to incorporate the IHS CAPS Universe electronic and electromechanical and fastener data into the Aras Innovator Product Lifecycle Management (PLM) platform. The collaboration provides Aras customers with timelier information, allowing them to make better decisions throughout the entire lifecycle of products and systems.

Deutsche Brse Market Data and Services Announces New VPS

On October 21, 2013, Deutsche Brse Market Data and Services announced the launch of Virtualised Private Simulation (VPS), a web-based service that gives clients ondemand connection to Eurex Exchanges T7 simulation environment. The cloud-based service gives users greater speed, flexibility, and security when using the T7 system.

EBS Direct Chooses Third-Party Aggregator Apama

On September 26, 2013, EBS, the leading electronic FX company for ICAP, announced today that it has chosen the third-party aggregate and smart execution solution for the FX market, Apama software, for its EBS Direct service. EBS Direct is the new liquidity service that enables direct streaming for tailored prices. Using, EBSs network and global desktop presence, EBS Direct offers transparent and cost-effective solutions to meet FX traders needs.

Deutsche Brse Adds Celestial to Xetra Network

On August 1, 2013, Deutsche Brse announced that Celestial Securities Limited (a subsidiary of the CASH Financial Services Group) has now joined its Xetra trading system as the first ever member from Hong Kong. The financial conglomerate is the first East Asian participant to join the Xetra network, which is comprised of over 240 participants with approximately 4,500 traders in 18 countries. By joining the Xetra network, Celestial Securities Limited is able to offer its clients direct access to German exchange markets, allowing them to access vital market information after Asian markets close and giving them a competitive advantage over their peers.

Nodal Exchange to Begin Operation as DCM

On September 27, 2013, Nodal Exchange, LLC announced today that it had received approval on its October 11, 2012 application to become a Designated Contract Market (DCM) by the U.S. Commodity Futures Trading Commission (CFTC). It will begin DCM operation as of September 30. Nodal began operating as an exempt commercial market in 2009 and is the first commodities exchange that is dedicated to offering nodal (locational) futures products related to the North American electric power markets. 24
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October 2013

Other Matters

ICAP SEF Receives CFTC Application Approval

On September 30, 2013, ICAP plc announced that its Swap Execution Facility (SEF) subsidiary, ICAP SEF (US) LLC, received temporary registration approval from the Commodity Futures Trading Commission (CFTC) to be an SEF. When up and running, ICAP SEF will operate as a market for credit default swaps (CDS), equity derivatives, commodities, interest rate swaps (IRS), and non-deliverable forwards (NDFs).

Berkeley Lab Releases China Energy Databook

On September 23, 2013, Berkeley Lab released its eighth edition of the China Energy Databook, which contains exhaustive information on Chinas energy and environmental statistics from a multitude of sources. The book discusses Chinas recent shift in energy consumption and its important role in the global energy market. To learn more, see the China Energy Databook here.

SGX, Clearstream to Launch Collateral Management Service

On September 13, 2013, Deutsche Brse announced that SGX and Clearstream have signed a Letter of Intent regarding their new collateral management service. The service helps customers use assets held at CDP, SGXs securities depository, as more ready collateral. The arrangement utilizes Clearstreams collateral management infrastructure, the Global Liquidity Hub, to offer SGXs Liquidity Hub GO service which manages collateral on a real-time basis. SGX and Clearstream hope to address the challenge of finding high quality collateral in Asian markets with their partnership. For full details on the new collateral management service, see the full product details here.

LCH.Clearnet Receives OSC Clearing Agency Recognition

On September 23, 2013, LCH.Clearnet Limited announced that it has received clearing agency recognition by the Ontario Securities Commission (OSC), for interest rate swaps, bonds, and repos for Ontario-based Canadian market participants. On April 2, 2013, the SwapClear service was labeled as systemically important by the Bank of Canada. LCH.Clearnets interest rate swap clearing ser vice, SwapClear, is presently in use by five Canadian institutions, and plays a major role in the Canadian OTC derivatives market.

LCH.Clearnet, NYSE Sign New Derivatives Clearing Agreement

On October 17, 2013, LCH.Clearnet SA (Paris subsidiary) and NYSE Euronext announced that they have signed a new fiveyear contract for LCH.Clearnet SA to clear NYSE Euronexts continental listed derivatives, effective until December 2018. The new agreement replaces the current clearing services terms and contract, which were due to expire on March 31, 2014, and reflects new commercial and governance terms. The agreement also allows customers to maintain their existing trading and clearing connectivity and infrastructure with both parties.

NYSE Euronext Announces Strategic Partnership with ACE

On September 9, 2013, NYSE Euronext (NYX) announced that it will partner with ACE to create an independent technology backbone for newly issued private securities. NYSE is the main global operator of public financial markets and ACE is a popular transaction management platform for financial derivatives. Together, the companies hope to bring enhanced productivity and transparency to the private market.

NYSE, KOSCOM Enter Global Trading Hub Agreement

On September 12, 2013, NYSE Technologies announced that it has entered into a Global Trading Hub Connectivity Agreement with KOSCOM. The agreement connects its 1,300 member MarketplaceTM trading community to KOSCOMs STP Hub of 130 key Korean firms. The connection gives KOSCOM and NYSE Technologies customers more efficient FIX connectivity and enhances cross-border trading. 25

LCH.Clearnet, EMCF, SIX to Provide CPP Services to Aquis Exchange

On October 8, 2013, LCH.Clearnet announced that it has entered into agreements with the European Multilateral Clearing Facility (EMCF) and SIX x-clear to provide Aquis Exchange with central counterparty (CCP) services. The agreements are pending regulatory approval from the UKs Financial Conduct Authority to launch subscription pricing for European stock trading.
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October 2013

Other Matters

Barchart Launches Market Data Service Online

On October 1, 2013, Barchart.com, Inc. announced the launch of Barchart On Demand, a web-based service that connects users to thousands of fields of market data from numerous sources using cloud computing. The service allows users to quickly and easily access information on a variety of industries, from financial services or software development to commodities. Barchart On Demand functions with any operating system (e.g. Windows, Linux, iOS or Android) and any programming language (e.g. Java, PHP or ASP.NET). For more information, visit Barcharts website.

Platts Plans to Consolidate US EIA Summary Data Pages

On October 9, 2013, Platts announced its plans to consolidate two pages that currently contain weekly summary data from the U.S. Department of Energy's Energy Information Agency. The "DOE QUICK SUMMARY," found on page 76 of PGA, will be discontinued, effective November 1, 2013. The "EIA Quick Summary -- Stocks, Input, Production, Imports" on the other hand, will continue being published on page 99 of the PGA Page 99 of PGA will show all of the data from page 76, including U.S. gasoline production.

Barchart Adds New Market Data and Commodities Trading Platform

On September 10, 2013, Barchart.com, Inc announced the launch of Barchart Trader, its new flagship market data and commodities trading platform. The platform contains realtime price data from leading derivatives exchanges, among other features useful for traders of all markets.

FTSE Reclassifies Colombian Derivatives Market

On October 15, 2013, Bolsa de Valores de Colombia announced that FTSE, the British provider of stock market indices, has modified the classification of the Colombian derivative market from Not Met to Restricted in FTSEs latest report on countries and their markets. The change in classification is a result of FTSEs assessment on various aspects of the Colombian market, particularly its advances in the creation of instruments on stock indices and specific stocks. According to the FTSE, Colombia is one of the most dynamic in terms of securities industry development, with the least criteria among Latin American markets requiring development.

Fitch Adds 100 Anniversary Online Forum for Transparency, Discussion

On September 18, 2013, Fitch Ratings launched 'The Why? Forum, a website where Fitch analysts and other market leaders discuss global market and economy themes, in honor th of Fitchs 100 anniversary. The Why? Forum includes videos, presentations, and event previews, improving Fitchs transparency and providing investors with valuable information. For more details, visit The Why Forum.

CME Changes Dow Jones Swaps Schedule

On September 20, 2013, CME Group announced that it has reduced the listing schedule of two Dow Jones forward swaps and one commodity index swap. The affected product listings are as follows:
Clearing Title Current Listing Schedule 5 contract months in the March quarterly cycle and 2 serial contract months 5 contract months in the March quarterly cycle and 2 serial contract months 5 contract months in the March quarterly cycle and 2 serial contract months New Listing Schedule The 4 nearest calendar Months The 4 nearest calendar Months The 4 nearest calendar months

Argus Deletes Erroneous Polymer Data

On October 2, 2013, Argus announced that specific values in the Polymers data module were published incorrectly on October 2 in the 20131004dpolymers.csv file. These values should be deleted from any reports that were built off the wrong data. For a full listing of the affected polymer codes, please see the Data Deletion Notice here.

DG2

DJ-UBS CI Index 2 Month Forward Swaps DJ-UBS CI Index 3 Month Forward Swaps Dow Jones-UBS Commodity Index Swaps

DG3

DGS

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October 2013

Other Matters

USDA Not Publishing Data Due to Government Shutdown

On October 10, 2013, the USDA's Natural Resources Conservation Services's website announced that due to a lack of funding, the website will not be maintained and datafeeds will not be published. However, the NRCS Water & Climate Center and USA.gov websites are still available.

Argus Completes Independent Assurance Review

On October 11, 2013, Argus Media announced that it has successfully executed an independent external assurance review. The company has provided a statement outlining the policies and procedures it has in place to meet the Iosco PRA Principles requirements, assessed by professional services firm PwC. The Iosco PRA Principles include administration, control, quality, honesty and problem management in regards to commodity benchmark price assessments reported by PRAs. A mandatory requirement is an annual external audit, which Argus Media has successfully completed.

NOAA Not Publishing Due to Government Shutdown

On October 10, the NOAA website announced that "Due to the Federal government shutdown, the NOAA.gov and most associated web sites are unavailable." However, specific NOAA websites that are "necessary to protect lives and property are operational and will be maintained."

EPA Not Updating Data Due To Government Shutdown

On October 10, the United States Environmental Protection Agency (EPA) website housed the message that according to a "lack of government funding" the EPA website, its datafeed, and media channels will not be available.

Newedge UK Financial Ltd Joins Eurex Clearing

On October 22, 2013, Eurex Clearing, Europes leading clearing house, announced the introduction of Newedge UK Financial Limited as a member of EurexOTC Clear for Interest Rate Swaps (IRS). The new membership allows Newedge to expand its clearing services, broadening their cross border services and clearing offer for clients. Eurex Clearing offers clearing and collaterization of OTC transactions and listed derivatives in a single clearing house and under one legal framework. Newedge specializes in global exchange-traded and cleared derivatives. Newedges OTC Clearing service is supported by a partnership between Socit Gnrale Corporate & Investment Banking (SGCIB) and Crdit Agricole Corporate and Investment Bank (CACIB).

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October 2013

Monthly Market Analysis

Crude Oil Brent vs WTI: Forward Curve (NYMEX)

Crude Oil Brent vs WTI: Prompt-Month Contract (NYMEX)

After a quarter of Western Texas Intermediates premium over Brent, the European benchmark rallied on the New York Mercantile Exchange (NYMEX) to lead WTI in October again. While the WTI Prompt-Month Contract dropped by 5%, Brent prices went up by 1%. This was enough to send the Brent-WTI spread from $2 USD/bbl WTIs premium to Brent in the previous month to $4 USD/bbl WTIs discount to Brent this month, a net change of $6 USD/bbl in the spread over a period of four weeks. This is the widest gap since June 2013. The NYMEX WTI Prompt-Month contract fell to $102 USD/bbl (the lowest in more than three months) as U.S. crude stockpiles were 3.8 million barrels above last year at this time 1 according to American Petroleum Institute. Meanwhile, a survey done by Bloomberg suggested that the production 1 supplies climbed up in the same period as well. While WTI fell due to the abundance of crude supply, Brent prices were supported by global supply problems mostly in North Africa. Geopolitical and supply-demand concerns, along with the depreciating U.S. dollar against the Euro, pushed the European benchmark to $106 USD/bbl. In October, Libya was struggling to return to full export capacity after labor strikes 2 shut down all of the nation's largest export terminals. Moreover, Nigerian outputs have been repeatedly hit by 2 theft, which supported the Brent as well. Brent received further support from the continuing gridlock between union workers and the owner of the Grangemouth Refinery in Scotland in addition to deterioration in relations between the United States and Saudi Arabia (over the U.S. inaction in Syria). The Brent-WTI spread is likely to widen more in the next month. Graphs created with ZEMA.

In October, crude oil futures for both Brent and WTI dropped on the New York Mercantile Exchange (NYMEX). Brent futures fell as suggested in the last months DataWatch analysis to below $110 USD/bbl in October, whereas WTI settled just above $102 USD/bbl. Brent for December delivery traded at $108 USD/bbl whereas Texas light sweet futures dropped to be traded around $101 USD/bbl for the same month delivery. The premium of NYMEX Brent over WTI widened further this month to $7 USD/bbl, as WTI fell more sharply than its European counterpart. WTI has been under pressure recently as government data showed an increase of 24.2 million barrels (6.8%) over the past five weeks in U.S. crude supplies stockpiles. Record oil supply and stockpiles in the U.S. are trouncing demand 1 affected by slow economic growth. The U.S. fiscal standoff was luckily resolved in mid-October (for the time being at least), which removed some pressure from the market. Brent crude deepened mostly due to strong U.S. supply and indications that the Federal Reserve may start tapering its US$85 billion-per-month bond-buying program. The impact of supply disruptions across the Middle East and North Africa on one side and the rise in North American production on the other affected the markets short-term outlook. Although there is optimism over the international talks with Iran to lift sanctions that have curbed oil exports from the Persian Gulf producer, there is no significant sign of the production increase in near future.

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October 2013

Monthly Market Analysis

Henry Hub Natural Gas Forward Curve (ICE)

North American Natural Gas Spot Prices (ICE)

On the Intercontinental Exchange (ICE), North American natural gas spot prices varied slightly compared to the last month in all four major hubs: Chicago Citygates, Henry Hub, New York Transco Zone 6, and PG&E Citygate in California. From September to October (week ending October 25, 2013), the monthly average prices rose in Chicago Citygates and Henry Hub by 2% to $3.83 USD/MMBtu and $3.70 USD/MMBtu respectively. Also, the spot prices fell to $3.98 USD/MMBtu in PG&E Citygate and to $3.69 USD/MMBtu in Trans Z6. For the week ending October 24, 2013, EIAs Natural Gas Weekly Update reported temperatures across the U.S. haven't been low enough to trigger demand for natural gas to heat homes and businesses. Weather outlooks typically drive prices this time of year as furnaces burn natural gas to heat 1 homes, offices, and other buildings. According to the EIA, about 50% of all households in the U.S. use gas as their primary heating source. However, more seasonably cool weather particularly in Chicago area supported the prices. Strong natural gas supply (storage and production near a record-high pace) overshadowed the demand for most of the 1 month, a trend that has been going on since April 2013.

On the Intercontinental Exchange (ICE), Henry Hub natural gas futures dropped by 1% in October compared to September 2013. From this month to the previous, the future prices at Henry Hub for the year ahead dropped on average by $0.03 USD/MMbtu to $3.86 USD/MMbtu, whereas natural gas futures for November 2013 to March 2014 delivery declined $0.04 USD/MMbtu to $3.85 USD/MMbtu. Natural gas futures fell after the U.S. Energy Information Administration (EIA) report showed a glut of heating fuel in the middle of October amid weak demand and high 1 production levels. According to EIA, working natural gas in storage increased to 3,741 Bcf by the end of third week of 2 October, 2.1% above the five-year average. On October 17, 2013, FERC approved the start of service on November 1 for two natural gas projects (New York-New Jersey Expansion project and TGPs Northeast Upgrade Project) that would provide almost 1.0 billion cubic feet per day (Bcf/d) to consumers in the New York/New Jersey region. This increase of gas flow to the northeast region will secure the supply; pipeline constraints had led to price spikes during 2 periods of peak winter demand previously. For now, supplies are more than adequate to meet even the coldest winter heating demand.

Graphs created with ZEMA. 29

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October 2013

Monthly Market Analysis

Electricity: Day-Ahead Prices (ICE)

Actual Weather (AccuWeather)

From September to October, the average monthly temperature dropped in New York City by four degrees Celsius to 16C, in Sacramento by three degrees to 18C, in Raleigh by five degrees to 17C, and in Chicago by eight degrees to 12C. Although the temperature has dropped in all the four cities due to seasonality, this years October is warmer than the two-year average. Comparing October 2013 temperatures to the past two-year average, the temperature is higher in New York City by five degrees Celsius, in Chicago by three, in Raleigh by four, and in Sacramento by one. In October, Chicago was the coldest among the four cities, while experiencing the largest temperature fluctuations. Data from AccuWeather showed the temperature was as high as 22C on the fifth day of October, while it almost dropped to 0C th on the 24 of the month.

On the Intercontinental Exchange (ICE), electricity day-ahead prices dipped in all four reported North American markets in October. From September to October, the day-ahead monthly average prices dropped in ISO-NE by 13% to $40 USD/MWh, in PJM North by 27% to $34 USD/MWh, in NYISO by 23% to $45 USD/MWh, and in CAISO-SP15 by 13% to $43 USD/MWh. The mild weather in the U.S. could be the main reason for the seasonally weak demand that also led to a slight fall of electricity prices this month. However, NYISO market participants ended up paying more than $5 USD/MWh in October 2013 compared to the last October.

Graphs created with ZEMA. 30

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October 2013

News from Data Vendors

New Data Reports for ZEMA

At ZE, we are continuously growing our data coverage. Our highly flexible data parsers can collect information in any electronic format, from any source and at any frequency. Since the September 2013 edition of DataWatch, we have added the following new data reports to ZEMA: Data Source APX APX Atlas BPA BPA DTN Elia EOX Live EOX Live EOX Live EOX Live EPEX EPEX EPEX Ergon GSEC IEA IVG IVG Kempler Kempler MISO MISO National Grid Report Name NL Power Day Ahead Market NL Power Day Ahead Market EOD Platts Indication Cutplanes Hourly Loading Cutplanes Hourly Loading ProphetX Daily History (CME) Imbalance Prices AQ - Trade Transactions (Futures) AQ - Trade Transactions (Options) Trade Transactions (Futures) Trade Transactions (Options) Power Spot Market Auction - Daily Power Spot Market Auction - Hourly Power Spot Market Auction Block Prices Crude Oil Price Daily Margin Report Estimate Balance Sub-Product Daily Ethanol Market Indications - Futures Daily Ethanol Market Indications - Spot Ethanol and RIN Settlement - Futures Ethanol and RIN Settlement - Spot Cost to Serve Load Rate Forecast AQ - Forecast Demands (SISR03) Commodity Energy Energy

Data Source National Grid NEISO NEISO NEISO NEISO NEISO NEISO NOAA Fuel Transmission Transmission Others Electricity Others Others Others Others Electricity Electricity Electricity Oil Others Oil Fuel Fuel Oil Oil Electricity Others Natural Gas Swissgrid 31 PJM PJM PJM RIM Intelligence RTE France SCB SNL SPP IMM SutronWIN NOAA NOAA NOS NOS NOS NYISO NYISO OPIS OPIS PJM PJM PJM PJM

Report Name Forecast Demands (SISR03) Ancillary Hour Dataset Hourly Wholesale Load Cost Market Ancillary Hourly ARR Market Ancillary Hourly Capacity Market Ancillary Hourly LFR Market Ancillary Hourly NCPC LSCPR Freezing Level Forecasts Precipitation Forecasts Temperature Forecasts Closing Prices - Futures Closing Prices - Options Closing Prices - Spot Installed Capacity: Locational Calculations Installed Capacity: Transmission District Loads Closing Biolite Closing Net Black Start Revenue Requirements InSchedule - EDC Loss Factor NITS Revenue Requirements and Rates Reactive Supply and Voltage Control Revenue Requirements RPM Daily Zonal Scaling Factors Schedule 9 Rates Schedule 9 Settlement Rates Japan Domestic Spot Imbalance Settlement Price Chicago Platts Settles SNL - Natural Gas Indexes Energy Dispatch Set Real Time Station Hydromet Balance Energy Price

Commodity Natural Gas Electricity Electricity Electricity Electricity Electricity Electricity Weather Weather Weather Freight Freight Freight Electricity Electricity Others Others Electricity Transmission Others Electricity

Electricity Electricity Electricity Others Electricity Oil Natural Gas Electricity Hydrology Energy
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October 2013

News from Data Vendors

Data Source Swissgrid Terna U.S. Department of the Treasury U.S. Department of the Treasury Xcel Energy

Report Name Balance Energy Price Values Market Ancillary Services Treasury Bill Auction Results Treasury Bill Auction Results - Futures Generation Plants Meter Data

Commodity Energy Electricity Others

Members benefit from one common Trayport gas trading platform with access to all spot and derivatives market products offered by the two exchanges for the German, French and Dutch market areas. Furthermore, spread products between these market areas are tradable on the same trading platform. For more information: www.pegastrading.com About EEX: The European Energy Exchange (EEX) is the leading European energy exchange. It develops, operates and connects secure, liquid and transparent markets for energy and related products on which power, natural gas, CO2 emission allowances, coal and guarantees of origin are traded. Clearing and settlement of all trading transactions are provided by the clearing house European Commodity Clearing AG (ECC). EEX is a member of Eurex Group. For more information: www.eex.com About Powernext: Powernext SA manages complementary, transparent and anonymous energy markets. Powernext Gas Spot and Powernext Gas Futures were launched on 26 November 2008 in order to hedge volume and price risks for natural gas in France and in the Netherlands. Powernext manages the National Registry for electricity guarantees of origin in France since 1 May 2013. Powernext owns 50 % in EPEX SPOT and 20 % in EEX Power Derivatives. For more information: www.powernext.com

Others

Electricity

PEGAS: Successful launch of PEG Sud natural gas Front Month contract
Paris, Leipzig 3 October 2013 Following the request of its members, PEGAS has launched on 1st October a Front Month contract on PEG Sud together with its related cleared geographical PEG Sud / PEG Nord spread supported by GDF Suez and Total Gas and Power as Market Makers. The first PEG Sud November 2013 transaction was concluded at 10:15 for a volume of 720 MWh at 29.70 Euros/MWh. The first PEG Sud / PEG Nord November 2013 spread transaction was completed a few seconds later for a volume of 720 MWh at 1.90 /MWh. Bid and Ask spreads, as tight as 0.05 /MWh have been observed on the platform during the trading session. A total volume of 79 200 MWh was traded on this launch date on the PEG Sud Futures market segment, including 57 600 MWh for the PEG Sud / PEG Nord spread. Jean-Franois Conil-Lacoste, CEO of Powernext, comments: PEGAS is further extending its product offering with this new PEG Sud Front Month contract, responding to the needs of its members through the fast implementation of new products and features. The entire natural gas offering of EEX and Powernext is available for trading on the PEGAS platform launched in May 2013, including spot and derivatives products for the market areas GASPOOL, TTF, NCG, PEG Nord and PEG Sud as well as spot products for the PEG TIGF market area. About PEGAS Pan-European Gas Cooperation: PEGAS is a cooperation between the European Energy Exchange (EEX) and Powernext. In the framework of this cooperation, both companies combine their natural gas market activities to create a pan-European gas offering.

EPEX SPOT: Franco-German price convergence at year-high

Paris, 3 October 2013. In September 2013, a total volume of 26.0 TWh was traded on EPEX SPOTs Day-Ahead and Intraday markets (September 2012: 26.5 TWh). Prices within the French and the German market, both coupled with the Benelux markets within Central Western Europe (CWE), converged 73% of the time. This is the highest figure since September 2012 (75%). Price convergence is one of the most visible results of Market Coupling and epitomizes the effectiveness of power market integration.

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October 2013

News from Data Vendors

Day-Ahead markets In September 2013, power trading on the Day-Ahead auctions on EPEX SPOT accounted for a total of 24,196,474 MWh (September 2012: 25,144,130 MWh) and can be broken down as follows: Monthly volume previous year MWh DE/AT 18,649,183 19,502,886 FR 4,160,443 4,426,740 CH 1,386,848 1,214,504 ELIX European Electricity Index * Peak excl. weekend Intraday markets On the EPEX SPOT Intraday markets, a total volume of 1,804,450 MWh was traded in September 2013 (September 2012: 1,374,857 MWh). Areas Monthly volume MWh 1,551,826 179,451 73,173 Monthly volume previous year MWh 1,228,029* 146,828 0** Areas Monthly volume MWh Price monthly average (Base / Peak*) Euro/MWh 41.71 / 54.27 43.30 / 58.19 44.07 / 57.52 41.19 / 55.11

MDA Introduces TempRisk Apollo

Launched on October 1, 2013, EarthRisk Technologies newest product, TempRisk Apollo, provides the markets most sophisticated temperature guidance in a one-stop shop for all your forecast needs. It optimally blends TempRisks unique, objective temperature output with numerical guidance for the full spectrum of temperature probabilities. What makes TempRisk Apollo better? Temp Risk Apollo is: A one-stop shop. TempRisk Apollo integrates numerical forecast guidance from external models such as the European Center for Medium-Range Forecasting (ECMWF) into its algorithm to provide users a more comprehensive and robust view of weather risk More than just extremes. Where previous TempRisk versions showed the probability of extreme heat or extreme cold events, TempRisk Apollo shows a full spectrum of probable temperature events (much below, below, slightly below, normal, slightly above, above, and much above) for a more finely tuned forecast A smarter model. TempRisk Apollo runs on a machine learning Neural Network as opposed to a purely probabilistic Nave Bayes model. It is the only product in the weather sphere using this sophisticated engine similar to technology used in facial recognition software and self-driving cars to forecast weather beyond 15 days out.

DE/AT FR CH

* without Austrian market, which was launched in October 2012 // ** Swiss market launched in June 2013 In September, cross-border trades represented 22% of the total Intraday volume. Volume in 15-Minute contracts amounted to 248,820 MWh. In September, they represented 15.6% of the volume traded on the German and Swiss Intraday markets. *** The European Power Exchange EPEX SPOT SE operates the power spot markets for France, Germany, Austria and Switzerland (Day-Ahead and Intraday). Together these countries account for more than one third of the European power consumption. EPEX SPOT is a European company (Societas Europaea) based in Paris with a branch in Leipzig. 255 TWh were traded on EPEX SPOTs power markets in the first nine months of 2013.

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October 2013

News from Data Vendors

PEGAS: Record Volume on the TTF Spot market

Leipzig, Paris, 8 October 2013 PEGAS, the natural gas platform formed by cooperation between the European Energy Exchange (EEX) and Powernext, announced that a total volume of 15.6 TWh was traded on the platform and cleared by the European Commodity Clearing (ECC) in September 2013. In the framework of this cooperation, EEX and Powernext combine their natural gas market activities to create a pan-European gas market. Spot Markets: Overall, trading volumes on the Spot Markets amounted to 10.6 TWh in September 2013. The German spot markets (market areas GASPOOL and NCG) recorded a volume of 4.0 TWh and in the French spot markets (market areas PEG Nord, PEG Sud, PEG TIGF) the traded volume amounted to 4.1 TWh. The Dutch spot market recorded a volume of 2.5 TWh which represents the highest monthly volume since the launch of this market in May 2011. Derivatives Markets: In September 2013, trading volumes on the Derivatives Markets connected to PEGAS amounted to 5.0 TWh. The German Futures markets (market areas GASPOOL and NCG) recorded a volume of 2.0 TWh. In the French PEG Nord area, the traded volume amounted to 2.4 TWh while the TTF Futures market recorded a volume of 642 GWh in September. Details on the natural gas volumes and prices are available in the enclosed monthly report. PEGAS Monthly Figures Report for September 2013 Volumes Spot Market Sep 2013 in MWh 1,628,209 2,337,694 2,560,810 1,527,800 28,640 2,521,920 10,605,073 Derivatives Market Sep 2013 in MWh 771,660 1,221,560 2,378,190 n/a n/a 641,850 5,013,260

Indices
Spot Market Index Name Sep 2013 Index Value (min. / max. in EUR/MWh)

GASPOOL NCG PEG Nord

PEG Sud

TTF

EEX Daily Reference Price EEX Daily Reference Price Powernext Gas Spot DAPPowernext Gas Spot EOD Powernext Gas Spot DAPPowernext Gas Spot EOD EEX Daily Reference Price
Index Name

25.679 / 27.592 25.875 / 27.133 26.01 / 27.76 26.15 / 27.70 26.82 / 29.95 26.54 / 30.67 25.494 / 27.049

Derivatives Market

Oct 2013 Index Value (in EUR/MWh)

Germany

GASPOOL NCG PEG Nord

TTF

EGIX (European Gas Index) Monthly Average EGIX Monthly Average EGIX Monthly Average Powernext Gas Futures Monthly Index Powernext Gas Futures Monthly Index

26.680

26.651 26.709 27.13

26.54

GASPOOL NCG PEG Nord PEG Sud PEG TIGF TTF Total

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October 2013

InDepth

In Search of Equilibrium: Growth of Capacity and Transmission in the NYISO

By Karen Hung and Ian Mathieson
The New York Independent System Operator (NYISO) was founded in December of 1999, taking over from the New York Power Pool and following the nationwide unbundling of i electricity supply and delivery in the nineties. It is the responsibility of the NYISO to ensure reliability of power generation, and transmission across New York State. Furthermore, the NYISO was founded in a period of high electricity prices and it was a hope that a more competitive marketplace would help to reduce the cost of electricity for end users. Early in the life of the NYISO there were concerns regarding capacity of generation and transmission constraints around ii New York City (NYC) and Long Island (LI). In 2001, William J. Museler, the President and CEO of the NYISO made a presentation called Power Alert: New Yorks Energy Crossroads where he warned that load was increasing faster than new capacity was coming online and that already in 1999, the NYISO could not meet the reliability with only instate resources. Museler made a number of specific recommendations including that NYC alone must increase capacity by 2,0003,000 MW and that those plans must begin immediately given the delays between approval and the first MW being generated. In a 2001 interview with the New York Times, Clarence D. Rappleyea, chairman and chief executive of the authority said about a plant being built near New York City, Because of transmission bottlenecks, it's dubious it (Athens power plant) will help the city. You have to do it from inside almost. These places are ''load pockets.'' Even if you have the iii generation outside, it's hard to get it in. Figure 1. % of Load from NYC and Long Island as viewed from DA Load Forecast published on the NYISO. Graph created with ZEMA. From a regulatory perspective they have put in place particular provisions in the capacity and congestion markets to meet these goals. For one, both the Long Island and New York City regions each have their own demand curves to be used to determine unforced capacity obligations in the v region. 35
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New York City and Long Island Over the life of the NYISO, the NYC and LI zones (J and K) on average have accounted for 46.5% which follows since as of the 2010 census, NYC (including LI) makes up 42.2% of the iv state population. This region is particularly difficult to serve given its isolated geographic location and high population density. Figure 1 shows the percentage of load required by the NYC and LI zones versus the remainder of the state. Since mid-2005, these two population heavy zones have outpaced the rest of the state, requiring over 50% of the load for the whole state during peak summer months. These two regions have affected the development of the power markets as the NYISO tries to ensure reliability in the region while keeping prices low.

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Further, these two regions constitute the two localities within the New York Capacity Auction where the Locational Minimum Installed Capacity Requirements are imposed. The Locational Minimum Installed Capacity Requirements are determined by resource adequacy studies and compel load serving entities (LSEs) to procure a percentage of their vi capacity in these regions. The Impact on Prices The constraints in this region have had an impact on pricing. Figure 2 shows the percentage of electricity price represented by congestion on average for NYC and LI versus the rest of the NYISO zones. On a monthly average the percentage of congestion for the NYC and LI zones rarely drops below 10% of the LMP. This is in contrast to the rest of the state, where generation is rich and there are few transmission constraints the congestion cost is rarely over 10% of the LMP.

Figure 4. Cost of electricity in NYC and LI versus the rest of the state including cost of generation, loss and congestion. Graph created with ZEMA. According to the draft of NYISOs 2013 Congestion Assessment and Resource Integration Study, NYC and LI have consistently had the highest congestion prices of all the 11 zones; in 2012, New York City saw a total of $261 million in congestion costs and Long Island totaled $377 million. In contrast, Hudson Valleywhich has the third highest congestion costs in New vii York Stateonly totaled $39 million. The Need for Transmission Capacity In the last decade, much of the focus of the NYISO has been toward increasing capacity to serve the load demands of NYC and LI and toward demand response programs to reduce load at peak serving times. The NYISOs creation of capacity obligations as well as capacity markets in NYC, LI, and ROS (Rest of State) incentivized the building of over 10,000 MW in viii new generating capacity from 2000 to 2012, with 80% of ix new generation built right in New York City. All the while, the economic recession as well as the growth of energy efficiency programs has reduced the load on New Yorks electricity grid. In 2012, total power usage fell to 162,942 GWh from 163,330 GWh in 2011, and peak demand x fell from 33,865 MW in 2011 to 32,439 MW in 2012. Even as the retirement of old power plants has reduced New Yorks in-state generation resources from 39,570 MW in 2012 xi to 37,925 MW in 2013, they are still more than sufficient to meet projected demand, and the NYISO estimates that there xii will be no need to build new generating capacity until 2019. Nevertheless, as is evident in Figure 4, the surplus supply of electricity in New York State has not reduced the load pockets in NYC and LI, and LBMP remains high in NYC and LI in comparison to the rest of New York State. This is mainly because these regions depend heavily on power from upstate and out-of-state generation, but transmission constraints xiii limit transfer levels to about 3000 MW. Transmission is also impacted by widespread degradation in voltage performance [] caused by load growth and unit xiv retirements. 36
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Figure 2. NYISO Congestion as a percentage of LMP from the NYISO Real Time Pricing report. Graph created with ZEMA. Similar to congestion, largely due to the location and geographic restrictions in the region, the cost of losses in NYC and LI are on average double that of the rest of the state (see Figure 3). When this is all taken into account to look at the overall price of electricity between NYC and the rest of the state it shows a consistent gap.

Figure 3. % of LMP contributed by loss in NYC and LI versus the rest of the state. Graph created with ZEMA.

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capacity that would move power from upstate to downstate; there were also recommendations to replace and upgrade xx some of New Yorks aging transmission lines. NYISOs State Transmission Assessment and Reliability Study (STARS) estimated that, in the next 30 years, the state will require $25 billion in investment to replace 4700 miles of transmission and another $2 billion to upgrade the transmission system to xxi ease congestion and increase transfer capability. Looking Forward New Yorks transmission infrastructure is integral to the health of their power grid, and an efficient and resilient grid will become more important as more power plants are retired. Initiatives are already underway in the NYISO to develop smart grid infrastructure, green the grid, broaden xxii the regional markets, and expand interregional planning. While the NYISOs current projection of annual growth in electricity use from now until 2023 is very modestonly xxiii 0.47%, the possible retirement of the Indian Point Nuclear Plantwhich supplies 30% of New York Citys electricity, as well as other power plants whose life cycles will be determined by upcoming, stricter EPA emission rules, means that generation resources will need to be either found or built to replace that lost generation capacity when those xxiv power plants are decommissioned. The possibility of severe weather events becoming more common has also highlighted the need to weatherize New Yorks electricity grid. Superstorm Sandy caused power outages all along the eastern coast of New York State, cutting off power to over 900,000 customers on Long Island and over 750,000 customers in the Con Edison service territory. Over 90 transmission facility encountered outages, and all ties to xxv neighboring ISOs were out of service. The disaster highlighted the necessity of strengthening the N YISOs ties to other ISOs in the region to better coordinate efforts in, not only emergency response, but also grid efficiencies and resilience. Hence, the NYISOs coordination with neighboring control areas such as PJM, IESO, Hydro Quebec, and ISO-NE; this is part of their Broader Regional Markets initiative to address limitations that currently exist where the markets and systems connect, be they market inefficiencies or electrical xxvi grid inefficiencies. The ability to buy cheaper power from a neighboring grid rather than expensive local power, or shortening the time commitment of moving power in and out of New York State, are just some of the improvements that can help the NYISO ensure reliable transmission and generation resources and potentially reduce costs for consumers. By Potomac Economics estimations, these improvements alone could provide New York with regional xxvii savings of $193 million a year.

For reference, around 1,990 MW is supplied upstate to meet downstate power needs, but during extreme weather conditions, such as heat waves, the downstate regions could xv require a supply of nearly 2,800 MW. The NYISO has tried to address these transmission constraints by building more transmission lines; over 1600 MW of transmission capability has been added since 2000, most of which allow electricity to be imported from neighboring xvi electricity markets into the downstate region. Even so, projected congestion costs for NYC is $353 million in 2022, up from $283 million in 2013, and congestion costs for LI will xvii increase from $165 million to $269 million, suggesting that more aggressive measures are needed to enhance transmission capacity in New York State before wholesale electricity prices in NYC and LI will decrease to levels comparable with the rest of the state.

Figure 5. New transmission added between 2000-2012 shows how the new cables all connect to the New York City and Long Island regions in an effort to address congestion there. Source: Power Trends 2013, NYISO. Currently, there exists an NYISO Tariff to help provide cost recovery and cost allocation for transmission projects whose capital costs exceed $25 million, whose cost savings exceed the project cost measured over the first ten years from the proposed commercial operation date, and whose xviii beneficiaries are over 80% in favor of the project. FERC has also ordered the NYISO to develop a process to create new capacity zones to address transmission constraints, and just this April, the NYISO submitted a proposal to create a capacity zone encompassing the Lower xix Hudson Valley and New York City. Additionally, Governor Andrew Cuomo unveiled the New York Energy Highway initiative in January of 2012 to modernize New Yorks energy infrastructure. The eventual blueprint included a proposal to build 1000 MW of transmission 37

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InDepth

Particularly as electricity generation in the Northeast becomes more dependent on natural gas, and gas supplies in the region need to be more carefully scheduled during the heating months from November to March, more tightly intertwined regional coordination will likely become standard, and it will be interesting to see how NYISO transmission and capacity will evolve with its neighboring control areas.

http://www.nyiso.com/public/flipbooks/nyiso_lightingtheway/lightingthewa y/files/nyiso_lighitngtheway_final_nov2009.pdf
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2009 Congestion Assessment and Resource Integration Study, NYISO, p. 19. Power Trends 2013, NYISO, p. 17. Power Trends 2013, NYISO, p. 10. CARIS 2013 Draft Report, NYISO, p. 34. CARIS 2013 Draft Report, NYISO, p. 56.

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http://www.nyiso.com/public/webdocs/markets_operations/committees/bic _prlwg/meeting_materials/2001-0322/ARCHIVE/presentations/ARCHIVE/w_museler_opener.pdf iii http://www.nytimes.com/2001/01/14/business/five-questions-forclarence-d-rappleyea-different-sort-new-york-power-struggle.html

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xviii

http://www.nyc.gov/html/dcp/pdf/census/census2010/pgrhc.pdf
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Power Trends 2013, NYISO, p. 27. Power Trends 2013, NYISO, p. 29.

http://www.nyiso.com/public/webdocs/markets_operations/documents/Ma nuals_and_Guides/Manuals/Operations/icap_mnl.pdf -p. 30

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http://www.nyiso.com/public/webdocs/markets_operations/documents/Ma nuals_and_Guides/Manuals/Operations/icap_mnl.pdf - p.31

vii

Cordaro, Matthew. New Yorks Transmission Challenges and Opportunities: An Overview, NY AREA, p. 4.
xxii

NYISOs 2013 Congestion Assessment and Resource Integration Study, NYISO, Table 5-1: Historic Demand$ Congestion by Zone 2008-2012.
viii

NYISO Power Trends 2013, NYISO, p. 17.

xxiii

Power Trends 2013, NYISO, p. 4.

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Power Trends 2013, NYISO, p. 9. Power Trends 2013 By the Numbers, NYISO.

Cordaro, Matthew. New Yorks Transmission Challenges and Opportunities: An Overview, NY AREA, p. 5.
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Power Trends 2013, NYISO, p. 34. NYISO: Planning for the FutureBroader Regional Markets NYISO: Broader Regional Markets Fact Sheet

xxvi xi

Power Trends 2012 By the Numbers, NYISO.

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Power Trends 2013, NYISO, p. 9. Power Trends 2013, NYISO, p. 17.

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About ZE PowerGroup Inc. ZE is an experienced software and strategic consulting firm that combines energy industry expertise with advanced software development capability. The company possesses deep industry knowledge and comprehensive operational experience. ZE is the developer of the ZEMA Suite, a sophisticated Enterprise Data Management and Analysis solution built to meet the specific challenges of energy and commodity market participants. About ZEMA ZEMA is an enterprise data management suite designed for collecting data and performing complex analysis. ZEMA replaces fragmented data collection and analysis processes with a sophisticated, unified and automated data management system. Each ZEMA component can perform as an independent product; this means greater flexibility when integrating ZEMA into your organization. ZEMA is consistently ranked #1 for preferred system, #1 for ease of system integration, and #1 for customer service. ZEMA is easy to use and backed by our support team around the clock. Disclaimer ZE DataWatch is a report, comprised of data updates and expectations for energy and commodity markets and powered by ZEMA. The information contained in the ZE DataWatch is for information purposes only. Although ZE PowerGroup believes the information in this report to be correct and attempts to keep the information current, ZE PowerGroup does not warrant the accuracy or completeness of any information. Information in this report is not intended to provide financial, legal, accounting, or tax advice and should not be relied upon in that regard. ZE PowerGroup is not responsible in any manner whatsoever for direct, indirect, special or consequential damages, howsoever caused, arising out of the use of this report.

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