Proposed Amendments to New York Mercantile Exchange California- Oregon-Border and Palo Verde Electricity Futures Contracts Regarding the Contract Size, Hourly Rate of Delivery, Price Limits and Related Provisions

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The New York Mercantile Exchange (NYMEX or Exchange) has proposed amendments to the California-Oregon-Border and Palo Verde electricity futures contracts that would halve both the hourly rate of delivery, to one megawatt per hour from two megawatts per hour, and the contract size, to 432 megawatt hours (MWhs) from 864 MWhs. In addition, the Exchange proposes conforming amendments to halve the specified monthly delivery-unit amounts (based on the number of on-peak delivery days in the month) to reflect the reduced contract size. In addition, for both contracts, the Exchange proposes certain modifications to the price limit provisions, including setting a uniform price limit of $10 per MWh expandable to $20 and $30 per MWh following a trading halt(s). The Acting Director of the Division of Economic Analysis (Division) of the Commission, acting pursuant to the authority delegated by Commission Regulation 140.96, has determined that publication of the proposals for comment is in the public interest, will assist the Commission in considering the views of interested persons, and is consistent with the purposes of the Commodity Exchange Act.