Spark Spread
Power minus the fuel needed to generate it (usually gas, sometimes coal) — the electricity generator’s margin as a spread.
Definition
Spark Spread refers to the electricity generator’s margin as a spread. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
It is a named object desks use to frame risk, positioning, or process. When the electricity generator’s margin as a spread shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what spark spread is saying. If the electricity generator’s margin as a spread moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Keep the definition fixed, then challenge it with cross-checks before sizing. Prefer a short written null hypothesis for Spark Spread: what would falsify the current reading in the next window?