Fortnightly Magazine - July 15 2003

Gas Pipelines Do the Safety Dance

The industry responds to FERC's new safety regulations.

The industry responds to FERC's new safety regulations.

Utility companies are scrambling to understand and comply with the Pipeline Safety Improvement Act of 2002, which became law in December 2002. According to Daphne Magnuson, director of public relations at the American Gas Association (AGA), the act will require member companies to make significant changes during the next 10 years in how they operate.

Taking the Weather Option

Weather-contingent options are cheaper than other weather risk products and can be crafted to suit emissions allowance markets.


Weather-contingent options are cheaper than other weather risk products and can be crafted to suit emissions allowance markets.

Weather is a pivotal demand factor in energy consumption, but one that is difficult to predict and impossible to control. With weather-hedging tools available in the over-the-counter (OTC) markets for several years, the market has grown to $4.2 billion, with approximately 4,000 contracts traded in 2001, according to Pricewaterhouse-Coopers.

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