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

Oct
04
2017

Natural Gas Hedging Works for Customers

Earlier this year, PACE reported on the importance of natural gas hedging as a tool for keeping power prices stable and affordable. With debate continuing about the role of natural gas in our country’s power generation portfolio, we think it’s timely to revisit the topic.

Last month, we asked two experts to share their views on why using natural gas makes our nation more safe and secure, and why allowing utilities to hedge natural gas purchases makes good business sense and protects consumers.

You can see a short excerpt from our conversation here:

Natural gas is now