Florida utilities’ $6bn hedging loss spurs public backlash
Firms face heat over out-of-the-money natural gas hedge transactions
In the energy business, having a corporate hedging programme is often seen as the mark of a mature, sober-minded company with a sound approach to risk management.
But that's not what some critics are saying in Florida, where a group of electric utilities has come under blistering criticism for nearly $6 billion in accumulated losses on their natural gas hedges. Local newspapers have skewered the firms as profligates with a "gambling problem", and consumer advocates have slammed them for saddling
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