Unfinished rules likely to cause continued hedging woes

Post-crisis financial legislation is generating deep uncertainty for industry participants, making life difficult for companies that rely on commodity markets as a vital way of managing their risk

It was little over a year ago, in May 2013, when a prominent speaker at Energy Risk Summit USA in Houston memorably said the energy industry had been ‘Dodd-Franked’.

The speaker was Lynda Clemmons, principal at NRG Solutions – a unit of New Jersey- and Texas-based utility NRG Energy. What she was referring to was the pernicious effect of post-crisis legislation, which has generated deep uncertainty for industry participants in recent years, causing some companies to exit the commodity markets