Risk Sharing and Prudence Review for a Regulated Electric Utility: Some Thoughts

Document Type

Article

Journal/Book Title/Conference

The Electricity Journal

Volume

26

Issue

4

Publication Date

2013

First Page

52

Last Page

56

Abstract

To avoid ‘wasted time’ in conducting prudence reviews of utility activities and programs, specific objectives and guidelines need to be defined clearly in a conceptual and operational manner. Considering the significant costs and complexities associated with natural gas hedging programs by electric utilities, appropriate prudence reviews should be conducted on a regular basis.

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