Intercontinental Exchange Inc. (NYSE: ICE) expanded its Value-at-Risk portfolio margining methodology, known as ICE Risk Model 2, to its U.S. ERCOT power markets, the company announced.

The expansion adds ICE's U.S. ERCOT power futures and options to more than 1,000 energy derivative contracts already using the IRM 2 methodology. The model covers ICE's global power, oil and refined products, natural gas, LNG, emissions and freight markets.

ICE ERCOT futures and options allow market participants to manage electricity price risk in Texas. The contracts are structured around specific locations on the Texas electricity grid, covering peak or off-peak hours across multi-hour blocks, daily, or monthly periods.

The IRM 2 model uses a Filtered Historical Simulation VaR approach designed to respond to changing market conditions and provide stability through different volatility conditions. The model includes anti-procyclical features to avoid large margin changes and adjusts for seasonality.

ICE ERCOT futures and options open interest increased 23% year-over-year, with average daily volume up 14% year-over-year, according to the company statement.

"The expansion of IRM 2 to ICE ERCOT power is an important move for our customers who rely on capital-efficient risk management tools to trade and hedge effectively across U.S. power and wider energy markets," said Brian Lewis, Senior Director, Head of North American Natural Gas and Power at ICE.

Open interest across ICE's U.S. power futures and options reached 1.55 billion megawatt hours in the first quarter, rising 10% over the quarter. Volumes during the quarter reached nearly 2 billion megawatt hours, up 9%. The company reported record trading of 7.8 billion megawatt hours in U.S. power futures and options in 2025, up 30% from 2024.

ICE offers more than 400 financially settled futures and 60 options contracts in U.S. power derivatives.