Conversion to Megawatt Hours

[hanbei23]

Forgive me for asking a very basic question. The reason I ask here is that I am getting very different answers from people.

Does anyone know how to convert # of contracts on NYMEx to megawatt hours.

for instance, on YTD total for the product n9 is approx. 1,200,000 contracts.

the contract specs say the lot size is 5mwh and it is off-peak.

so do I say 1,200,000 * 5 * (number of off-peak hours in the month)

so in this case it would be approximately 1.9 Billion megawatt hours?

 

[deltastrike]

Quote from hanbei23:

Forgive me for asking a very basic question. The reason I ask here is that I am getting very different answers from people.

Does anyone know how to convert # of contracts on NYMEx to megawatt hours.

for instance, on YTD total for the product n9 is approx. 1,200,000 contracts.

the contract specs say the lot size is 5mwh and it is off-peak.

so do I say 1,200,000 * 5 * (number of off-peak hours in the month)

so in this case it would be approximately 1.9 Billion megawatt hours?

The floating price for this contract is the average price for off-peak hours for the month bal. Basically, you're just trading 5mwh for the average price of those hours, which means it's (5mwh*1,200,000) (at least that's how I interpret it). If it were a physical product you could use your logic, but seeing as how these are purely financial and cash-settled I'm fairly certain it follows my explanation.