What is the P/L calculation for PJM 5MW power contracts?

C

Con1991

Recently I have been analysing some electricity/power futures contracts, and I am attempting to figure out the value of tick sizes etc. In particular the PJM contracts.

I have looked at the CME website, but it is not very clear on these particular products. The trading unit, for example, of the
PJM PECO ZONE 5 MW OFF-PEAK CALENDAR-MONTH DAY-AHEAD LMP(copied and pasted), is supposedly 5MW.

5 MWh
Clears in multiples of the number of off-peak hours in the contract month.

0.05 x 5 MW x # off-peak hours/month = $88.00 - $106.00

Then it states that this product clears in multiples of the number of off-peak hours in the contract month. So if I was trading say, the January 23' contract month, which has 408 off-peak hours, does one multiply 5*408*number of points?

Since the tick size is 0.05 in this instance, the calculation seems to indicate dividing the point move by 0.05 to get a result.

Or is there another calculation for this entirely?
 
No, it's just 408 x 5 x price delta......

Edit: I took the large effort of opening the CME website and there's no multiplier (as expected) so above it's true...

(if there would be a multiplier of 2 it would be a 10 MW contract so the multiplier is already in the title)
 
qwerty11 said:
No, it's just 408 x 5 x price delta......

Edit: I took the large effort of opening the CME website and there's no multiplier (as expected) so above it's true...

(if there would be a multiplier of 2 it would be a 10 MW contract so the multiplier is already in the title)
More...
So in other words, if the price movement of the contract is say from 21 to 26, the difference of 5 is 5*408*5?
 
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