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Title: Formulating hedging strategies for financial risk mitigation in competitive U.S. electricity markets
Author (s): Viswanathan, Karthik, 1980-
Advisor(s): Enke, David L.
Department/Lab Affiliations: Intelligent Systems Center
Issue Date: 2008
Publisher: University of Missouri-Rolla [sic] [Missouri University of Science and Technology]
Citation: Viswanathan, Karthik. "Formulating Hedging Strategies for Financial Risk Mitigation in Competitive U.S. Electricity Markets." Master's Thesis, Systems Engineering, Missouri University of Science and Technology, 2008.
Abstract: "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, p. 10-11.
Type: Thesis/Dissertation
text
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titleFormulating hedging strategies for financial risk mitigation in competitive U.S. electricity markets
contributor.advisorEnke, David L.
contributor.authorViswanathan, Karthik, 1980-
contributor.deptlabIntelligent Systems Center
contributor.deptlabLaboratory for Investment and Financial Engineering
subject.LCSHAccounting and price fluctuations.
subject.LCSHElectric utilities -- Rates.
subject.LCSHFinancial risk management.
subject.LCSHHedging (Finance) -- Prices -- Econometric models.
date.issued2008
publisherUniversity of Missouri-Rolla [sic] [Missouri University of Science and Technology]
identifier.URI
http://scholarsmine.mst.edu/thesis/pdf/Viswanathan_09007dcc8047876c.pdf
identifier.citationViswanathan, Karthik. "Formulating Hedging Strategies for Financial Risk Mitigation in Competitive U.S. Electricity Markets." Master's Thesis, Systems Engineering, Missouri University of Science and Technology, 2008.
identifier.oclc226377280
descriptionDegree granted by Missouri University of Science and Technology, formerly known as the University of Missouri-Rolla.
descriptionIncludes bibliographical references (p. 42-44).
descriptionMode of access: World Wide Web.
descriptionSystem requirements: Adobe Acrobat Reader; Internet browser.
descriptionThe entire thesis text is included in file.
descriptionThesis (M.S.)--Missouri University of Science and Technology, 2008.
descriptionTitle from title screen of thesis/dissertation PDF file (viewed March 31, 2008)
descriptionVita.
description.abstract"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, p. 10-11.
description.
statementOfResponsibility
by Karthik Viswanathan.
typeThesis/Dissertation
type.DCMITypetext
rightsThese materials are protected under copyright by the original author.
language.ISO639-2eng
format.extentviii, 45 p. : ill., digital, PDF file.
date.accessioned2008-01-15T20:41:39Z
date.available2008-04-29T18:50:58Z
identifier.persist.URI
http://scholarsmine.mst.edu/thesis/Formulating_hedging__09007dcc804ef758.html
Full Text
Viswanathan_09007dcc8047876c.pdf