Aug
10
2018

Flexibility, Fuels & the Future

This week, Energy Fairness presented energy policy updates to the American Coal Council and conducted a workshop for state leaders at the American Legislative Exchange Council’s annual meeting.

You can see some of the content and ideas we shared here. Download the presentation PDF.

Jul
11
2018

Hedging 101, Part 2

This week, we continue our conversation with hedging expert Andy Whitesitt. Over two decades, and as a senior executive with ACES, he’s helped dozens of utilities smooth cost curves and mitigate risk. Hedging helps consumers across the country every day.

What’s the difference between financial hedging and physical hedging?

Financial hedging is locking in only the price risk by utilizing either a futures contract or a swap. After locking in the price, the utility still must go out and procure the natural gas needed to run the generation unit.

Physical hedging is a purchase of physical gas to be

Jul
04
2018

Freedom from Worry

Recently, Energy Fairness asked Andy Whitesitt, Vice President of Business Development & Customer Service at ACES, to talk with us about hedging basics.

We hope the following Q & A interview will help you understand how utility hedging programs work to remove some worry about future costs. Next week, we’ll follow up with some additional insights about this common business practice many utilities routinely deploy to protect consumers.

Can you provide a 101 explanation of hedging?

Hedging is simply locking in the price of a commodity in order to reduce the risks of potential impacts. When electric utilities use

Jun
27
2018

Energy Debates Help Summer Heat Up

Energy Fairness is on the road again, enjoying 110 degree highs in Phoenix. Back in D.C., energy debates are heating up the Beltway atmosphere, but we also found some bright spots to share.

The Senate is working on appropriations bills, but partisan divides mean that many “riders” aimed at rolling back rules and programs set in motion by the Obama Administration aren’t viable this year. For example, language that would halt the unpopular and sweeping “Waters of the U.S.” rule won’t be included.

With Energy Fairness now formally a part of the National Energy & Utility Affordability Coalition (NEUAC)

Jun
14
2018

Hedging Happens Every Day

Everyone needs to manage risk. We do it in our daily lives both personally and professionally. Utilities are no different. PACE has spent the last few weeks highlighting natural gas hedging after the Missouri legislature passed a resolution supporting the continued use of this essential, though often misunderstood practice.

Today’s infographic explains the top five benefits of natural gas hedging, from protecting consumers to supporting national security. We hope you will find this graphic useful as you think about all the ways you manage risk every day. #HowDoYouHedge?

May
30
2018

Natural Gas Hedging - Smart Tool for Diverse Energy Portfolio

PACE thanks Morning Consult for publishing this op-ed as original content. https://morningconsult.com/opinions/hedging-smart-tool-diverse-energy-portfolio/.

As the U.S. energy portfolio continues to diversify, the tools and tactics electric utilities use to protect consumers and stabilize costs must keep up with the times to accommodate the growth of natural gas, renewable resources, storage and other innovations.

One of the most critical tools is hedging, a fact frequently discussed and underscored by state lawmakers. As an example, Missouri recently passed Senate Concurrent Resolution 43 that reaffirms the state’s policy of allowing electric utilities to hedge natural gas contracts and supports

Apr
20
2018

Springtime in D.C. - Cold, Sunny, Chance of Hearings and Orders

PACE got a taste of warm weather, sunshine and BBQ last week, visiting with Cobb EMC, a progressive urban/suburban electric cooperative just outside Atlanta that serves over 200,000 meters. Cobb’s board and leadership team are responding adeptly to consumer demand for renewable energy by making significant investments in utility-scale solar. PACE also visited the Southern States Energy Board (we joined SSEB earlier this year) to discuss energy and environmental issues that are top-of mind to the elected officials in SSEB’s sixteen state, two territory membership.

Returning to D.C., I found that with Easter recess in the rearview mirror, the springtime

Apr
10
2018

Views from a Visit with APGA

Last week, I was honored to be invited to address the American Public Gas Association’s annual marketing conference. Millions of consumers across the country receive natural gas service from community-owned distribution utilities.

Over 150 attendees spent three days examining trends affecting how customers view and use natural gas in their homes, businesses and vehicles. Spending a day with APGA gave me a great opportunity to spread the word about the Partnership’s mission and to re-learn some lessons about how natural gas distribution utilities view the energy policy landscape. I say “re-learn” because I spent two happy years representing APGA at

Apr
04
2018

Hedging Protects More than Just Energy

Brian Munzlinger is a member of the Missouri State Senate, representing District 18. He recently introduced a resolution, which is advancing in the Missouri Senate, to educate consumers and fellow lawmakers about the benefits of allowing utilities to hedge fuel inputs. His April 2 op-ed in the Hannibal Courier-Post appears below as a PACE guest blog.

Brian Munzlinger: Hedging Protects More than Just Energy – Opinion – Hannibal Courier – Post – Hannibal, MO.

http://www.hannibal.net/opinion/20180401/brian-munzlinger-hedging-protects-more-than-just-energy

Just like for any good or service that depends on commodities, power prices are linked to the costs of generation fuels. For years now,

Mar
13
2018

Show-Me State Legislators Show Value of Hedging

Later this week, PACE will offer testimony to the Missouri House of Representatives Utilities Committee highlighting why natural gas hedging helps assure consumer electricity prices are stable and predictable.

In February, PACE testified to a key committee of the Missouri Senate. Our goal was and is supporting a pair of resolutions (Senate Concurrent Resolution 43 and House Concurrent Resolution 87) introduced earlier in the session by Sen. Brian Munzlinger and Rep. Rusty Black.

Each resolution urges the Missouri Public Service Commission to continue allowing the state’s electric utilities to prudently hedge natural gas contracts, through financial means or by taking