Tepco hedges weather

Electric power and gas demand are inversely proportionate during summer weather. When it's hot electricity demand rises due to the use of air conditioning and gas demand declines due to less use of heating and hot water.

If the summer season proves to be warmer than average Tepco will pay an amount to both gas companies, and if it proves to be cooler than the norm the gas companies will pay Tepco.

Tepco has not revealed the size of the deal.

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