RIVER BAY COMMODITIES
Energy Trading across the PJM, MISO & ERCOT Electricity Markets
ABOUT
River Bay Commodities is a firm of experienced Energy Traders across multiple Energy Markets. We utilize virtual, financial and physical trading instruments to capture profits across these markets.
MARKET TYPES
Virtual Transactions
Short-term, hourly product cleared on a daily-prior basis that captures the energy and/or congestion spread between the Day-Ahead and Real-time markets on a particular pricing location or spread between two locations.
Financial Transmission Right
Longer-term (one-to-thirty-six-month duration) product that captures the Day-Ahead congestion spread between two locations in an RTO. Auctions occur monthly for various periods.
Financial Futures (Swaps)
Fixed Price transactions executed through The Intercontinental Exchange. Can transact on multiple locations and time frames for all available approved products.
Physical Power Flows
Purchase and Schedule of actual power flowing between ISO markets.
RTOS VS. ISOS
It is worth noting that the terms Independent System Operator (ISO) and Regional Transmission Organization (RTO) are often used interchangeably. As far as functionality goes, ISOs and RTOs are the same thing. However, FERC order 2000 outlined specific functions required to be classified as an RTO, which advanced the promotion of efficient wholesale power markets. Many markets were already operating as ISOs and subsequently became RTOs after meeting FERC’s requirements but kept their original names.
Other Areas of North America
There are only two areas of the U.S. that do not operate as deregulated markets, the Southeast and areas of the West. However, it is likely that those areas will also transition to competitive markets in the future.
PORTFOLIOS
Exchange-based Products
ICE Energy and Natural Gas Futures and Options
Virtual
Bids/Offers
Hourly nodal directional trades within an ISO
Virtual Spread Products
Hourly basis transaction between nodes within an ISO
Financial
Transmission Rights
Long-term basis transaction between nodes