Markets

Basis risk

Exposure to price differences between a contract hub (like PJM Western Hub) and the actual delivery node where generation or load is located. Buyers settle...

⏱ min read · Markets · Glossary

Basis risk

Category: Markets

Exposure to price differences between a contract hub (like PJM Western Hub) and the actual delivery node where generation or load is located. Buyers settled at congested nodes can pay substantially more than hub prices suggest.

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