Dodd-Frank and Electric Utilities
Understanding the new mosaic of commodities trading regulations.
Compliance with Dodd-Frank might not be as complicated as feared; however, companies must be vigilant in order to maintain the relevant exemptions.
hedging
Hedging or Betting?
Lacking regulatory oversight, financial hedges turn into risky speculation.
Many utilities engage in hedging to protect customers from price spikes. But unless regulators are involved in crafting and monitoring these programs, they can turn into speculative ventures that put ratepayers at risk — for the benefit of shareholders.