Fuel procurement and risk management functions integration
A Bates White expert advised CFE on the integration of its fuel (natural gas, oil, and coal) procurement and risk management functions. The advisory services included the definition of a risk management function and identification of business models (and related IT systems), as well as methods of transferring risk-managed benefits to the utility’s customers. Reviewed fuel purchase and sales contracts, and made recommendations regarding the appropriate price references, indices, and structures, with a particular focus on basis differentials.