In the spirit of continuous improvement, Washington State has been working to improve its regulatory approach to natural gas utilities' hedging practices; the goal has been to foster more robust methodologies. On March 13, 2017 the Washington Utilities And Transportation Commission issued an order stating “It is the Commission’s explicit policy preference that Companies employ risk-responsive hedge strategies.” The order went on to say that “Companies should develop a framework for risk mitigation informed by quantitative metrics.” The full order can be found here . . . WA Order. The order relies heavily on a white paper authored by Mr. Gettings of RiskCentrix; the white paper can be viewed here.
The State of Florida is also conducting an investigation into more robust risk mitigation strategies. Mr. Gettings’ testimony in Florida PSC Docket No. 160001-EI detailed all of the elements necessary for a risk-responsive strategy as well as suggested regulatory changes to promote more robust hedging practices; it is available here . . . Testimony.
The State of Florida is also conducting an investigation into more robust risk mitigation strategies. Mr. Gettings’ testimony in Florida PSC Docket No. 160001-EI detailed all of the elements necessary for a risk-responsive strategy as well as suggested regulatory changes to promote more robust hedging practices; it is available here . . . Testimony.