What does the report look like?

Below, you will find a clip from a report generated in September 2008 for ISO New England, CT Zone.

Location Term    Value  Change   %  FVol   DVol   dNG

ISONE-CT 2008V   89.53  3.81  4.3%  44.5%   9.7%  0.360
.        2008X   92.60  4.44  4.8%  41.4%  10.0%  0.460
.        2008Z  103.70  4.97  4.8%  41.4%  12.5%  0.506
.        2009F  112.42  5.29  4.7%  40.2%  14.8%  0.545
.        2009G  111.43  5.06  4.5%  38.5%  14.6%  0.529
.        2009H   99.58  4.41  4.4%  31.0%  11.7%  0.502
.        2009J   92.05  3.47  3.8%  29.0%  10.1%  0.442
.        2009K   91.93  3.51  3.8%  29.1%   9.9%  0.460
.        2009M  100.30  3.74  3.7%  28.8%  11.2%  0.471
.        2009N  113.45  4.24  3.7%  30.7%  12.7%  0.497
.        2009Q  109.69  4.05  3.7%  31.8%  12.4%  0.507
.        2009U   98.24  3.63  3.7%  33.8%  10.9%  0.510
.        2009V   93.71  3.42  3.7%  31.6%  10.2%  0.507
.        2009X   97.48  3.47  3.6%  31.4%  10.3%  0.573
.        2009Z  109.79  3.94  3.6%  32.0%  12.9%  0.621

How is the report interpreted?

• Remember that these values are contingent on fuel price forward curves at the time.
• Location: ISO New England, Connecticut Zone
• Term: October (V) 2008 through December (Z) 2009
• Value: The modeled price for January 2009 as of the report date was $112.42
• Change: This price change was $5.29 or 4.7% from the previous settlement.
• FVol: The forward volatility was 40.2%. Recall that this is reported in annualized terms. The principal driver of forward volatility is natural gas volatility.
• DVol: The delivered volatility was 14.8%. Recall that this is not reported in annualized terms. The principal driver of delivered volatility is weather, and secondarily natural gas spot volatility.
• dNG: For every percentage (.01) that natural gas changes in price, power will move .00545. In our research, we have learned that dNG varies depending on several factors.

For additional explanation of these elements, please refer to Report Elements.