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

Jun
12
2018

A Sea of Change in Charleston

It’s 90 degrees in the shade here in Charleston, South Carolina, where the Southeastern Association of Regulatory Utility Commissioners (SEARUC) has gathered for its annual meeting. Eleven states’ public utility regulators, from Texas and Arkansas to Florida and the Carolinas, are represented. This year’s theme is “Effective Utility Regulation – All in the Public Interest.” In a time of increasing cynicism about government, it’s uplifting to focus on elected officials and professional staff who work hard for consumers each day.

It’s also refreshing to be with so many who accept that appropriate regulation is needed to monitor and provide course

May
08
2018

TVA Generation Mix: Celebrating Wins for Consumers

This past weekend, the Chattanooga Times Free-Press published an article updating readers on the Tennessee Valley Authority’s multi-year program to transition its generation mix. Nearly a decade ago, in 2011, a lawsuit by environmental groups led to a settlement agreement. TVA has lived up to the agreement by taking sweeping actions to reduce emissions while providing affordable and reliable power to a growing population.

To be sure, TVA looks different today than it did in 2011. Over the past seven years, the utility has shut down 33 coal units and updated other coal units to reduce emissions. It has also

May
03
2018

Georgia: Doing its Part for Nuclear, Solar & National Security - While Keeping Rates Low

This week, PACE is pleased to feature a guest blog by Dr. David Gattie, a faculty member at the University of Georgia with deep expertise in energy policy, and co-author of our 2017 paper on net metering.

The U.S. Energy Information Administration recently released new data for 2017, so I compiled a few statistics for some of the top GDPs in the U.S. In particular, average residential rates since 1990 (Figure 1) and the energy portfolios for those states (Figure 2). Since my home state is Georgia and we’re working toward the completion of the only nuclear reactors under