Insights
Risk Management Insights
Develop a "SMART" Goal for Your Energy Procurement Plan
October 2008
Commodity markets tend to bring out the competitive nature in people. Everyone wants to "beat" the market and the rush of doing so can be addictive, more addictive than the pain of losing to the market. But when a speculative position is taken the likelihood of either outcome is about the same. Developing a "SMART" goal is a critical first step in an energy procurement plan. Read more >>
What is the Cost of Managing Energy Price Risk?
October 2008
We often say that cost reduction and risk reduction are at opposite ends of a spectrum when it comes to energy buying. This implies that risk reduction costs something. Is this true? What is the cost of energy price risk managment? Read more >>
Managing Cost and Risk with a Supplier Portfolio
August 2008
For commodities such as natural gas a strong relationship with a single supplier doesn't lead to improvements in cost or quality. In the worst case, using a single natural gas supplier can create financial risk. Read more >>
Taking Stock of Carbon Emissions and Risk
July 2008
How to deal with GHG emissions in Canada (through regulations and/or taxation) is being debated. With the federal and provincial governments each putting forward their own initiatives for addressing the challenge of climate change, it is not surprising that there is some confusion about what should be done. Is it best to wait until a complete and formalized process is in place or are there things that can be done now to begin to measure and manage risks that will arise from these processes? Read more >>
Retail Electricity Contracts: Do They Reduce Risk?
July 2008
When entering into any fixed-price electricity arrangement, there are two primary factors to consider: price and quantity. Retail electricity deals are a common offering, often involving paying a fixed price on all of one's electricity consumption. Such deals can assist in managing price risk and possibly lower one's cost of electricity, but only if... Read more >>
Climate Change Policy - Cost and Risk Impacts
June 2008
Climate change policy has been a hot subject in the news lately. As Federal and Provincial governments each weigh in with their own policies, it can become a challenge to keep track of how these policies impact our businesses. In this article, we discuss the various policies and the potential impact on consumers. Read more >>
Key Considerations for CESOP and CHP
June 2008
If your organization is considering participation in the Ontario Power Authority's Combined Heat and Power (CHPII) request for proposal or the Clean Energy Standard Offer Program (CESOP), you need to give careful consideration to key elements of your gas supply strategy before you submit your proposal. Careful planning before submitting your proposal can ensure that you have taken full advantage of the OPA programs to manage your risks. Read more >>