Calendar of Events

May 21, 2013 to May 22, 2013 | Washington, DC
May 21, 2013 to May 22, 2013 | Charlotte, North Carolina
May 21, 2013 to May 23, 2013 | Atlanta, GA

Keywords

Public Utilities Reports

PUR Guide 2012 Fully Updated Version

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FortisBC

Hedging Under Scrutiny

Planning ahead in a low-cost gas market.

Julie Ryan and Julie Lieberman

IIt’s ironic that in today’s market, as the cost of hedging against commodity price increases has declined, support for utility hedging programs has sunk to a historic low. The ideal time to hedge is when prices are low and markets are relatively calm, because that’s when hedging costs and risks are the lowest. Conversely, waiting until prices rise and markets become volatile will expose customers to higher costs. Convincing regulators to approve hedging programs now will require a collaborative approach to educating and enlisting support from stakeholders.