Methodology and specifications guide - S&P Global

1 Introduction 2 How this Methodology statement is organized 2 Part I: Data quality and data submission 2 What to report 3 How to report 3 Part II: Security and confidentiality 3 Part III: Calculating indices and making assessments 3 Price assessment and index guidelines 4 Daily market 4 Monthly market 5 Outliers 7 Regional and national averages 7 Part IV: platts editorial standards 7 Part V: Corrections 8 Part VI: Requests for clarifications of data and complaints 8 Part VII.

2 Definitions of the trading locations for which platts publishes daily and monthly indices or assessments 9 Northeast 9 Appalachia 10 Midcontinent 11 Upper Midwest 12 East Texas 13 Louisiana/Southeast 14 Rockies/Northwest 15 Southwest 17 platts locations daily symbols 18 platts locations monthly symbols 22 platts Canadian OTC Indices daily symbols 25 platts Canadian OTC Indices monthly symbols 25 ICE locations daily symbols 26 ICE locations monthly symbols 30 Daily CGPR Symbols (CAD/Gj) 36 Daily CGPR Symbols (USD/MMBtu) 37 Monthly CGPR Symbols (CAD/Gj) 38 Monthly CGPR Symbols (USD/MMBtu)

3 39 CGPR Daily & Monthly Indices Methodology 40 Gas Indices Americas (GIA) Daily Indices Methodology 40 GIA Symbols 41 Revision history 42 Methodology and specifications guideUS and Canada natural gas Latest update: May and specifications guideUS and Canada natural gas: May 20202 2020 S&P Global platts , a division of S&P Global Inc. All rights Global platts methodologies are designed to produce price assessments and indices that are representative of market value, and of the particular markets to which they relate. Methodology documents describe the specifications for various products reflected by platts assessments and indices, the processes and standards platts adheres to in collecting data, and the methods by which platts arrives at final values for publication.

4 platts discloses publicly the days of publication for its price assessments and indices, and the times during each trading day in which platts considers transactions in determining its assessments and index levels. This schedule of publication is available on the platts website, at the following link: dates of publication and the assessment periods are subject to change in the event of circumstances that affect platts ability to adhere to its normal publication schedule. Such circumstances include network outages, power failures, acts of terrorism and other situations that result in an interruption in platts operations at one or more of its worldwide offices.

5 In the event that any such circumstance occurs, platts will endeavor, whenever feasible, to communicate publicly any changes to its publication schedule and assessment periods, with as much advance notice as methodologies have evolved to reflect changing market conditions through time, and will continue to evolve as markets change. A revision history, a cumulative summary of changes to this and previous updates, is included at the end of Methodology and specification documents. Methodology is reviewed regularly to ensure it reflects current market reviews are carried out by platts reporters and their managers, supplemented and supported by price Methodology specialists who operate separately from the reporting teams.

6 platts follows a clearly defined process for public consultation on material changes to its methodologies. This process is based on full transparency and communication with industry stakeholders aimed at gaining market acceptance for any proposed introduction or changes to Methodology . For more information on the review and approval procedures, please visit All platts methodologies reflect platts commitment to maintaining best practices in price this Methodology statement is organizedThis description of Methodology for indices and assessments is divided into seven major parts (I-VII) that parallel the entire process of producing price values for the specified market period (daily or monthly).

7 Part I describes what goes into platts indices and price values, including details on what data market participants are expected to submit, the process for submitting data and criteria for timeliness of market data submissions. Part II describes any security and confidentiality practices that platts uses in handling and treating data. Part III is a detailed account of how platts collects market data, and what platts does with the data to formulate its indices and assessments. It includes descriptions of the methods that platts uses for reviewing data, and the methods used to convert raw data into indices or assessments, including the procedures used to identify anomalous data.

8 This section describes how and when judgment is applied in this process, the basis upon which transaction data may be excluded from an index, and the relative importance assigned to each criterion used in forming the index or price assessment. This section describes the minimum amount of transaction data required for a particular price assessment to be published, and the criteria for determining which values are indices, and which are assessments, based on reported transactions and other market information. Part IV explains the process for verifying that published prices comply with platts standards. Part V lays out the verification and correction process for revising published prices and the criteria platts uses to determine when it publishes a correction.

9 Part VI explains how users of platts assessments and indices can contact platts for clarification of data that has been published, or to register a complaint. It also describes how to find out more about platts complaint policies. Part VII is a list of detailed specifications for the trading locations for which platts publishes indices or I: Data quaLIty anD Data SubMISSIonPlatts objective is to ensure that the submission of transactional information and other data inputs that editors use as the basis for their price index and assessments is of the highest quality. This is crucial to maintaining the integrity of platts pricing encourages entities that submit any market data for consideration in its pricing processes to submit all transactional data that they have.

10 Under price reporting guidelines issued by the US Federal Energy Regulatory Commission in 2003, which apply to US natural gas markets, companies should report each bilateral, arm s-length transaction between non-affiliated companies in the physical markets at all trading locations. In North American gas markets, platts establishes reporting relationships with market participants in which data is submitted from a central point in the mid- or back office (a segment of the reporting entity that does not have a commercial interest in the reported prices). platts expects that a price submitter is making a good-faith effort to submit data completely and accurately, and will have staff assigned to respond to questions concerning data submissions.