Commodities Now Glossary

Petroleum Administration for Defense District (PADD) – A geographic aggregation of the 50 States and the District of Columbia into five Districts, with PADD I further split into three subdistricts. The PADDs include the States listed below: PADD I (East Coast): PADD IA (New England): Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.PADD IB (Central Atlantic): Delaware, District of Columbia, Maryland, New Jersey, New York, and Pennsylvania. PADD IC (Lower Atlantic): Florida, Georgia, North Carolina, South Carolina, Virginia, and West Virginia. PADD II (Midwest): Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, SouthDakota, Tennessee, and Wisconsin. PADD III (Gulf Coast): Alabama, Arkansas, Louisiana, Mississippi, NewMexico, and Texas. PADD IV (Rocky Mountain): Colorado, Idaho, Montana, Utah, and Wyoming. PADD V (West Coast): Alaska, Arizona, California, Hawaii, Nevada, Oregon, and Washington.

PCR Price Coupling of Regions (PCR) is the initiative of seven European Power Exchanges, to develop a single price coupling solution to be used to calculate electricity prices across Europe, and allocate cross-border capacity on a day-ahead basis. This is crucial to achieve the overall EU target of a harmonized European electricity market. The integrated European electricity market is expected to increase liquidity, efficiency and social welfare. PCR is open to other European Power Exchanges wishing to join.

Platts – A leading global provider of energy and metals information and the world's foremost source of price assessments in the physical energy markets. Since 1909, Platts has enabled the markets to operate with transparency and efficiency, and helped traders, risk managers, analysts, and industry leaders make better trading and business decisions.

PMEX – Pakistan Mercantile Exchange Limited (PMEX) – Formerly National Commodity Exchange Limited – is the first technology driven, de-mutualized, on-line commodity futures exchange in Pakistan. PMEX ’s shareholders are National Bank of Pakistan, Karachi Stock Exchange, Lahore Stock Exchange, Islamabad Stock Exchange, Pak Kuwait Investment Company (Pvt.) Limited, and Zarai Taraqiati Bank Ltd and it is regulated by Securities and Exchange Commission of Pakistan.

Point-and-figure charts - Charts that show price changes of a minimum amount regardless of the time period involved.

Power Purchase Agreement (PPA) is a legal contract between an electricity generator (provider) and a power purchaser (host). The power purchaser purchases energy, and sometimes also capacity and/or ancillary services, from the electricity generator. Such agreements play a key role in the financing of independently owned (i.e. not owned by a utility) electricity generating assets. The seller under the PPA is typically an independent power producer (IPP). Energy sales by regulated utilities are typically highly regulated, so that no PPA is required or appropriate. The PPA is often regarded as the central document in the development of independent electricity generating assets (power plants), and is a key to obtaining project financing for the project.

Project Design Document (PDD) A central document of project-based mechanisms, the PDD notably describes the project activity (including environmental impacts and stakeholders consultations), the baseline methodology and how the project is additional as well as the monitoring plan.

Project Idea Note (PIN) A note prepared by a project proponent presenting briefly the project activity (e.g. sector, location, financials, estimated amount of ERs etc.).

Purchasing(long)hedge - 

Buyer buys contracts to protect against a possible price increase of cash commodities that will be purchased in the future. At the time the cash commodities are bought, the open futures position is closed by selling an equal number and type of futures contracts as those that were initially purchased. Also referred to as a buying hedge.

Put option - An option that gives the option buyer the right but not the obligation to sell (go “short”) the underlying futures contract at the strike price on or before the expiration date.

Power Exchange Central Europe (PXE) - The Power Exchange Central Europe (PXE), is a business platform for trading with electricity in the Czech Republic, Slovak Republic and hungary. Established on 5th March, 2007 (under the old name Prague Energy Exchange), it aims at setting new rules for trading with electricity; causing it to enter a whole new era where the price is driven mainly by the relationship between the current supply and demand.