Abstract: A system and method for creating index values supporting the settlement of wind risk transfer contracts is disclosed. The method includes calculating a first power value as a function of historical wind speeds and a power curve associated with the facility. A second power value is calculated based on the power curve and measured wind speed associated with the facility during a given period. The first and second power values are compared to yield an index. In one embodiment of the invention, an offset is added to the historical wind speed data to compensate for differences between the expected wind speeds at the facility and the region for which the historical data is available. In a further embodiment of the invention, a gain is multiplied by the sum of the offset and historical wind speed data to further compensate for differences between the local and regional wind speeds. In another aspect of the invention, a risk transfer vehicle is disclosed.