Reading the T&D Leaves: How Interest Rates Influence Prices for Wires Services
The strong correlation holds lessons for power marketers, who naturally will build large short positions on delivery service.
The analysis shows how one could expect allowed return on equity to change as interest rates change and the resulting financial effect on endusers. The positive side of this thought process is that a continuing low interest rate environment should attenuate the effect of high commodity prices for retail users of electricity.