About WMTI

  • Increased market price transparency through improved market indices is the goal of a group of proactive Western utilities that have voluntarily agreed to expand the reporting of price information about energy transactions in the Western electricity market.
  • Price transparency increases confidence, credibility and market liquidity, promoting a more active and competitive market to the benefit of all market participants and consumers.
  • Expanded reporting will include all buy and sell energy transactions and counterparty information from WMTI participants. The index developer ensures the confidentiality of individual participant’s reporting data. (Counterparty information will be reported only when the counterparty has agreed to the disclosure. Each utility in the start-up group of WMTI participants has agreed to the disclosure of its identity when it is the counterparty or is otherwise pursuing overcoming barriers to such disclosure.)
  • Costs are minimized for WMTI participants by improving an existing index rather than developing a new index.
  • The index developer can verify accuracy of trades through WMTI's enhanced reporting, thus significantly reducing the risk of fraudulent index manipulation.
  • All trading hubs meeting a threshold number of transactions will be published.
  • WMTI builds upon the success of www.wesTTrans.net, the Web-based region-wide OASIS started March 31, 2004, as another voluntary effort by proactive western utilities to continue to expand and improve wholesale energy markets in the West.
  • Dow Jones, an established and reputable market leader, has been selected as the WMTI index developer.
  • Dow Jones has modified existing processes and is in full compliance with FERC requirements meant to ensure accurate, reliable and transparent price signals in the energy market.
  • WMTI participants transact in wholesale markets throughout the Western Interconnection.

Advantages

  • Supports and improves existing bilateral electricity markets Enhances credibility and liquidity
  • Provides a necessary tool to support trading and risk management activities Supports accurate valuation of trading positions Promotes development of new electricity products
  • Supports FERC voluntary guidelines "Safe Harbor" protection for good faith reporting Satisfies a component of market monitoring

FERC guidelines

The following FERC voluntary guidelines are met by implementing WMTI:

  • Enhanced data reporting
  • Verification and error resolution processes
  • Monitoring and auditing
  • Independent reporting of trade data

Reporting steps

There are three steps to full reporting:

  • Step 1 (began April 30, 2005)
    Day-ahead index
    Firm products
  • Step 2 (start date TBD)
    Real Time index
    Non-firm product
  • Step 3 (start date TBD)
    Additional products such as forward or contingent transactions