It cannot be stored in large quantities, and its constant flow must be kept in continuous balance to avoid blackouts. By so doing, this major commodity exchange has turned its back on standardized contracts, which are the essence of commodity trading. A ton of coal varies in quality and the cost of its transportation. Like coal, electricity varies in quality. The LOLP, in turn, increases as the transmission network becomes more congested.
Congestion can cause significant increases in the costs of transmitting electricity.
If the locations of congestion could be predicted accurately, then the standardization of transmission costs would be manageable. Unfortunately, such predictions do not fall within the required range of accuracy. Consequently, a standard transmission cost cannot be obtained. The absence of this cost calculation makes electricity an unusual commodity. Perhaps electricity can be a commodity only in an idyllic world where there is no congestion.