Platts Introduces Pricing References to Gauge Daily Profitability Margins for German Electric Power Generation

LONDON, March 3 /PRNewswire/ -- Platts, the world's leading energy and metals information provider, today launched two new daily price references that will help European power producers and risk managers assess their power generation profitability and compare the profitability of using coal versus natural gas as the feedstock for electricity production.  These price references are based on the cost of power generation in Germany where utilities are equipped to use either coal or gas.

The daily forward curves for Platts German Dark Spreads and Platts German Clean Dark Spreads represent the unit profitability of German coal-fired power generation, without and with the costs associated with European Union carbon emissions certificates. "Dark" refers to the fact that the fuel source is coal and "clean" signifies that the cost of purchasing the EU's carbon emissions allowances and certificates is included in the calculation.

Platts German Dark Spreads and Platts German Clean Dark Spreads forward curves reflect an end-of-day profit margin for German coal-fired power generation, calculated as the difference between the cost of coal as a feedstock to produce electricity and the wholesale cost of the electricity produced. The forward curves values reflect price indications for coal and power one and two months out, for the front two quarters and two calendar years.

The two sets of assessments are calculated from Platts' power, coal and carbon emissions pricing data using established industry formulas and are quoted in both Euro and U.S. dollars per megawatt hour (Euro/MWh or Dollars/MWh, respectively). The forward values will be published daily on the real-time service Platts European Power Alert and in two Platts' newsletters, Coal Trader International and European Power Daily.

Designed in consultation with the industry, Platts' new forward curves allow power producers to run comparisons with their own data or with Platts' Spark Spread calculations for gas-fired power generation as a means of gauging power production profitability margins between coal and natural gas.

For detail on the calculations for the Platts German Dark Spreads and Platts German Clean Dark Spreads forward curves, see Platts' methodology and specifications guidelines.  For information on Platts publications and how to subscribe, visit the products and services section of the Platts' website.

Additional information about Platts, coal, natural gas, and electricity, can be found at the Platts website at www.platts.com.  Platts publishes more than 8,500 price assessments, indexes and references in energy and metals on a daily basis.

About Platts: Platts, a division of The McGraw-Hill Companies (NYSE: MHP), is a leading global provider of energy and commodities information. With a century of business experience, Platts serves customers across more than 150 countries. An independent provider, Platts serves the oil, natural gas, electricity, emissions, nuclear power, coal, petrochemical, shipping, and metals markets from 17 offices worldwide. Platts' real-time news, pricing, analytical services and conferences help markets operate with transparency and efficiency. Traders, risk managers, analysts, and industry leaders depend upon Platts to help them make better trading and investment decisions. Additional information is available at http://www.platts.com.

About The McGraw-Hill Companies: Founded in 1888, The McGraw-Hill Companies (NYSE:  MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, Platts, Capital IQ, J.D. Power and Associates, McGraw-Hill Construction and Aviation Week. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion. Additional information is available at www.mcgraw-hill.com.  

SOURCE Platts

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