San Antonio’s KSAT News reported on the 18 lawsuits filed by CPS Energy. According to the article, multiple experts agree that CPS “failed to effectively hedge its long-term projections in a way that would have properly enabled it to make better energy preparations days ahead of the storm.”

Excerpt:

One energy executive, who only agreed to speak with the Defenders on the condition of anonymity since their company is associated with CPS, said the utility also failed to effectively hedge its long-term projections in a way that would have properly enabled it to make better energy preparations days ahead of the storm.

“Hedging costs money. It’s insurance. These companies failed to undertake what would be considered appropriate risk management,” said University of Houston Energy Fellow Ed Hirs during a March 9 interview with the Defenders.

“They should be rolling the hedge every year. It’s not necessary that they actually have the contract for the delivery of the natural gas, but they have the offsetting futures contract,” said Hirs.

To read the full article on KSAT’s website click here.