hedging

Natural Gas Prices
7:38 pm
Tue October 2, 2012

Dunn Says Hedging Cost Alabama Gas Customers $245 M

Commissioner Dunn says hedging cost Alabama Gas Corp. customers $245 million since 2003.
Wikimedia Commons

A member of the Public Service Commission says hedging agreements on natural gas prices have added nearly $245 million to the bills of Alabama Gas Corp. customers since the state's largest natural gas distributor started the practice in 2003.

PSC member Terry Dunn said Alabama Gas is one of many utilities that used the risk-management strategy and saw it "go very badly in recent years." He said it points to the need for the PSC to re-examine its rules on hedging agreements.