Hedging with base load futures
This tool is designed to simulate the outcomes of purchasing electricity futures contracts. It describes the role futures contracts may play from the perspective of either a pure retailer, who would likely want to ensure their cost is lower than the price they are charging their customers, or an industrial consumer who will likely have a budget for making electricity purchases.
Users of the tool need to make several choices:
- Select which contract quarter to purchase
- Select a load profile to be hedged and the number of contracts to purchase
- Select the date the contracts are to be purchased.
Finally, be sure to click on the ‘View glossary’ button for a description of the many terms encountered in this dashboard.
