June 6, 2015
What lock in strategies can I use?
Generally, customers should look at an implementation strategy for executing the fixed price using the following criteria;
• First, to meet budget or price targets
• Second, timing the market at a historical low point. In the past, a reasonable strategy was to lock in if prices reached what had been historically low prices.
• Third, blind hedging within a specified time window. This assumes that “averaging “ the costs of buying gas over a longer period will smooth out price anomalies.