PSNC Energy's Hedging Status Report for 2015

The North Carolina Utilities Commission required PSNC Energy, a subsidiary of Duke Energy, to submit a hedging status report for 2015. The report outlines the company's natural gas hedging activities and their financial impact. This report provides a detailed look into the company's hedging strategy and its effect on their financial position.

Key Takeaways:

• The report covers the period from July 31, 2014, to July 31, 2015.
• PSNC Energy reported a total hedging gain of $61,055,874.90, with a realized gain of $73,900.00 and an unrealized gain of $2,265,670.00.
• The company's hedged position includes natural gas purchases for the months of September 2015 to August 2016, with a targeted volume of 7,230,000 million British thermal units (MMBtu).
• The hedging strategy involves purchasing natural gas at fixed prices, with the cost of gas ranging from $3.316 to $3.911 per MMBtu.
• The company's open positions as of July 31, 2015, include 230,000 MMBtu contracted at a fixed price of $3.370 per MMBtu, representing 65.2% of the targeted volume for August 2016.
• PSNC Energy's hedging program aimed to reduce its exposure to market volatility and provide a stable source of natural gas supply.
• The company's Rates & Regulatory Manager, Candace A. Paton, electronically submitted the report to the North Carolina Utilities Commission.

Statistics:

• Total hedging gain: $61,055,874.90
• Realized gain: $73,900.00
• Unrealized gain: $2,265,670.00
• Open positions target volume: 7,230,000 MMBtu
• Committed volume for August 2016: 230,000 MMBtu
• Cost of gas (September 2015 to August 2016): $3.616 to $3.911 per MMBtu
• Hedging strategy:

Sources:

• North Carolina Utilities Commission
• Docket No. G-5, Sub 555
• PSNC Energy
• Candid A. Paton, Rates & Regulatory Manager (cpaton@scana.com)