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Spot Prices and Forward Premia on the MISO Exchange

Kevin Jones

Energy Studies Review2021https://doi.org/10.15173/esr.v25i1.4661article
ABDC C
Weight
0.38

What the paper says

This paper explores information contained in the basis for wholesale electricity on the Midcontinent Independent System Operator (MISO) electricity exchange. Utilizing Fama and French’s (1987) approach, the basis is found to have predictive power on changes in real-time (spot) prices but provides only limited evidence of a time-varying forward premium. This result contradicts Huisman and Kilic’s (2012) theory that the basis in an electricity market which relies primarily on storable forms of power for electricity production (such as MISO) should contain information on both changes in spot prices and provide evidence of a time-varying forward premium.

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https://doi.org/https://doi.org/10.15173/esr.v25i1.4661

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@article{kevin2021,
  title        = {{Spot Prices and Forward Premia on the MISO Exchange}},
  author       = {Kevin Jones},
  journal      = {Energy Studies Review},
  year         = {2021},
  doi          = {https://doi.org/https://doi.org/10.15173/esr.v25i1.4661},
}

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Spot Prices and Forward Premia on the MISO Exchange

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Evidence weight

0.38

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.09 × 0.4 = 0.03
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.