LDC Gas Forum - Northeast

May 29, 2014

Come join R^2 at the Northeast LDC Gas Forum on June 16-18, 2014 in Boston, MA.


Monday Jun 16, 2014 1:00 pm - 5:00 pm

Seminar: Hedging for Budgetary Success

Register Now


This class provides tools that can be used to solve the most common dilemma facing managers of hedge programs; hedge portfolios are designed to insulate a firm’s cash flows from commodity price shocks, but hedge performance is often measured instead by profitability.


"Hedging for Budgetary Success" will demonstrate to attendees how to communicate to supervisors (PUCs, Board of Directors and rate payers) why hedging is prudent and/or necessary. Attendees will be introduced to a statistical approach developed by the instructor that quantifies the cost/benefit of hedging. They will be exposed to analytical tools that quantify risk in budgetary terms. These tools are used by more than 35 firms, managing more than $65 billion in cash flows, to communicate and document their rationale for hedging. These same tools are also used to monitor hedge performance as it relates to targeted budgetary objectives. The class will explain how to:

•Assess and risk fuel prices
•Quantify commodity price risks in budgetary terms
•Identify appropriate and effective hedge volumes and strategies
•Demonstrate that selected hedge strategies support budgetary goals and are expected to minimize the costs associated with hedging
•Develop and implement hedge execution strategies
•Monitor and report on hedge performance


If you are involved in the design, execution of or reporting on your firm’s hedge program, this seminar can help you. Whether you are a member of the accounting staff, hedge committee or have an office in the executive suite, this class will provide you a solid understanding of the guidelines that have been used by the Instructor’s clientele to build hedge portfolios that have generated more than $2 billion in receivables.


If you have questions regarding the seminar, please contact Ted Jones at Risked Revenue Energy Associates at 713-522-6161 or

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