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Cap and Trade, Natural Gas Risks Focus of Twin Cities Chapter Meeting |
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The AFS Twin Cities Chapter hosted a dinner and meeting Jan. 12 at the Green Mill, Shoreview, Minn. The focus of the meeting was cap and trade and natural gas risks in metalcasting facilities. Featured speakers included Doug Allen and Beau Griffey, from U.S. Energy Services, who gave a presentation titled “Natural Gas, Power, and Carbon Management.”
Allen covered ways to manage your natural gas risk. "To manage your natural gas risk you first need to understand your risk, define your benchmark of success, have a plan and don’t drive with the rear view mirror," said Allen. "Ways to manage risk are to do nothing [buying on the daily or monthly spot market], buy forward fixed price [physical or financial], use options [puts and calls] to set price ceilings and floors, or a combination of all 3."
Beau generated a great deal of interest in his practical discussion of the impacts of the Cap and Trade Legislation and simplified some of the terminology. "The fundamental difference between allowances and offsets are that allowances allow the holder the right to emit, offsets [outside the cap] effectively reduce emissions," said Beau. He also covered the effects of the 2007 Supreme Court Ruling in Massachusetts vs EPS and the Final Endangerment Ruling where the EPA established regulatory authority to act.
For more information on this meeting, contact Joy Clifford, AFS Twin Cities Chapter secretary/treasurer, at
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