Illustrative hedging strategies

There are different strategies for businesses to manage spot price risk by using financial instruments to offset potential losses from price fluctuations. Common hedging strategies include using base load futures contracts, power purchase agreements, and financial derivatives like futures and options.

This dashboard is designed to demonstrate the hedging of electricity purchases with base load futures contracts. It can be used to test and understand different hedging scenarios. Select the quarter, contract location, amount of load to hedge and when hedges will be purchased, then check out the results.

For more background information, view our hedging with base load futures tutorial.

While this data is real, and every effort has been taken to ensure its accuracy, it should not be relied on for financial advice.