Mitigating Merchant Risk in Power Projects: Hedging Contracts | Practical Law

Mitigating Merchant Risk in Power Projects: Hedging Contracts | Practical Law

A Practice Note discussing the hedging arrangements developers of natural gas-fired project use to mitigate merchant risk and to make their projects financeable. This Note also discusses why these arrangements are necessary and the benefits and drawbacks of these arrangements.

Mitigating Merchant Risk in Power Projects: Hedging Contracts

Practical Law Practice Note 5-607-8325 (Approx. 14 pages)

Mitigating Merchant Risk in Power Projects: Hedging Contracts

by Practical Law Finance based on an article by David John Frenkil, Managing Director, and Nathaniel Greeson, Counsel of Centennial Generating Co.
Maintained • USA (National/Federal)
A Practice Note discussing the hedging arrangements developers of natural gas-fired project use to mitigate merchant risk and to make their projects financeable. This Note also discusses why these arrangements are necessary and the benefits and drawbacks of these arrangements.