ERCOT Settlement Point Types — Resource Nodes, Load Zones, Hubs, and PUNs
Key Takeaway
ERCOT has four settlement point types: resource nodes (~700+ for individual generators), load zones (Houston, North, South, West), hubs (financial trading references), and private use networks.
Quick Answer
ERCOT settlement points are the price locations in the nodal market. Four types: resource nodes (individual generators, ~700+), load zones (four geographic areas), hubs (financial trading references), and private use networks (on-site generation facilities).
Resource Nodes
Individual generator connection points. Most granular and most volatile prices. Generators settle at their resource node price.
Load Zones
| Zone | Code | Characteristics |
|---|---|---|
| Houston | HB_HOUSTON | Refining/petrochem load, frequent congestion premium |
| North | HB_NORTH | DFW metroplex, largest zone, most traded |
| South | HB_SOUTH | San Antonio/Austin area |
| West | HB_WEST | Wind-heavy, frequently lowest/negative prices |
Load zone prices are load-weighted averages of resource node prices within the zone. Most retail customers settle at their load zone.
Hubs
Financial reference prices for trading and contracts. HB_BUSAVG (bus average) is the primary reference. Not physical delivery points.
Private Use Networks
Industrial facilities with on-site generation settle at unique settlement points.
Frequently Asked Questions
Load zones are geographic pricing areas for load settlement. Hubs are financial reference prices for trading and contracts — not physical delivery points.
Over 700 resource nodes, four load zones, several hubs, and hundreds of electrical bus settlement points.
Most settle at their geographic load zone price through a REP. Direct wholesale participants may have specific settlement point designations.