Risk management for LDCs

Local gas distribution companies in the US (LDCs) have been plunged into a rapidly transforming market. In recent years there have been massive changes in key players, an influx of new entrants like banks and hedge funds, and an increase in trading liquidity. LDCs that previously off-loaded commodity price risk onto the merchant energy companies have had to shift risk management to banks, and many have assumed part of it themselves. In addition there has been unprecedented price volatility, acce