IEX Slips 4% as CERC’s VPPA Rules Let Large Users Meet RE Obligations via Bilateral, Non‑Tradable Contracts—Raising Volume-Risk for Exchanges

shares fell over 4% after CERC notified a framework for Virtual Power Purchase Agreements (VPPAs), which allow designated large electricity consumers to meet renewable compliance without physically buying green power through the exchange. The rules permit bilateral VPPA contracts with renewable generators for a minimum tenure of one year, and these agreements are explicitly non-tradable and non-transferable. Because VPPAs allow compliance without routing procurement through power exchanges, investors are factoring in a potential hit to exchange-based green product demand and trading volumes, which is directly relevant for IEX’s transaction-led revenue model. The stock was already weak—down about 25% over the past year and near its 52-week low—and the report also flagged a bearish technical setup with the price trading below key moving averages. Source: The Economic Times No Recommendations