129 - Energy Risk Management made Simple for Insiders
Insider's Guide to Energy
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The Effects of Node Settlement on the Market Price of Energy
The corporate entities were just accepting these node settled power purchase agreements, which meant that the corporate itself was exposed to that basis. The developers are now offering a hub settled contract because they are now wearing that basis risk. And managing those portfolios really requires a very locational understanding of what that basis is looking like. It requires an acknowledgement of diversification across the portfolio.
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