System and method for implementing risk management strategies in regulated and/or deregulated energy markets
First Claim
1. A method of mitigating risks associated with transacting in commodities, comprising:
- determining a rate structure associated with each of the commodities;
determining demand information for the commodities; and
developing a hedging strategy based at least on the rate structure and the demand information.
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Accused Products
Abstract
A system, method, and computer program product are provided for enabling risk management in regulated and/or deregulated commodity markets through selection of Bundled Utility Services along with volumetric and/or energy commodity risk hedge productsBundled Utility Service. Risk management strategy may be implemented by determining a rate structure associated with a commodity delivered by a Utility and demand information to develop a hedge based on a composite of underlying market quoted products. The invention further provides system and methods for mitigating commodity price risks, Counterparty Credit Risk, and Physical Supply Risks. In one aspect of the invention, a system and method are provided for hedging utility prices associated with varying tariff cost structures, wherein no market product previously existed for tracking tariff cost structures.
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Citations
20 Claims
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1. A method of mitigating risks associated with transacting in commodities, comprising:
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determining a rate structure associated with each of the commodities;
determining demand information for the commodities; and
developing a hedging strategy based at least on the rate structure and the demand information. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11)
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12. A device for mitigating risks associated with transacting in commodities, comprising:
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a rate structure determining module, associated with each of the commodities, that is adapted to determine a rate structure of each commodity;
a demand information determining module, associated with selected end users, that is adapted to determine demand information for the commodities corresponding to the selected end users; and
a hedging strategy developing module in communication with the rate structure determining module and the demand information determining module that is adapted to develop a hedge based at least on the rate structure and the demand information. - View Dependent Claims (13, 14, 15)
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16. A device for mitigating risks associated with transacting in commodities, comprising:
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rate structure determining means for determining a rate structure of each commodity;
demand information determining means, associated with selected end users, for determining demand information for the commodities corresponding to the selected end users; and
hedging strategy developing means for developing a hedge based at least on the rate structure and the demand information. - View Dependent Claims (17, 18, 19)
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20. A computer readable medium having computer readable program code embodied therein for mitigating risks associated with transacting in commodities, comprising:
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computer-readable program code for causing a computer to determine a rate structure associated with each of the commodities;
computer-readable program code for causing the computer to determine demand information for the commodities; and
computer-readable program code for causing the computer to develop a hedging strategy based at least on the rate structure and the demand information.
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Specification