"The challenges currently facing participants in the competitive electricity markets are unique and staggering: unprecedented price volatility, fluctuations in the demand, a lack of historical market data on which to test the new modeling approaches, increased competition and continuously changing regulatory structure...Electricity plant owners and purchasers of electricity may benefit from various techniques to manage price volatility. For electricity, however, no futures market is actively traded. The electricity forward market in NYMEX is in its nascent stage and is low in liquidity. Producers and purchasers of electricity may find cross-hedging electricity with natural gas futures contracts to be effective in reducing exposure to price volatility. The objective of this study is to estimate the cross-hedge relationship and strategies between spot electricity price and the NYMEX natural gas futures market for the cross-hedging horizon of one month"--Introduction, page 10-11.
Enke, David Lee, 1965-
Chowdhury, Badrul H.
Dagli, Cihan H., 1949-
Engineering Management and Systems Engineering
M.S. in Systems Engineering
Missouri University of Science and Technology
viii, 45 pages
© 2008 Karthik Viswanathan, All rights reserved.
Thesis - Open Access
Library of Congress Subject Headings
Accounting and price fluctuations
Electric utilities -- Rates
Financial risk management
Hedging (Finance) -- Prices -- Econometric models
Print OCLC #
Electronic OCLC #
Link to Catalog Recordhttp://laurel.lso.missouri.edu/record=b6489595~S5
Viswanathan, Karthik, "Formulating hedging strategies for financial risk mitigation in competitive U.S. electricity markets" (2008). Masters Theses. 6832.