Welcome to the Akin Gump Power Hedge Settlement Calculator. This interactive model should be used only for illustrative purposes as it is a simplified model of a typical physically-settled renewable energy hedge, with a tracking account to manage node-to-hub basis risk.
This interactive financial model allows you to adjust price, interest rate, actual production (and other cells to the left) to see how such inputs affect the amount that the theoretical Project Company would receive under a typical hedge. For simplicity, the inputs reflect one number for an entire month where, in actual practice, the real-time price, hub price and other variables will be calculated (and then aggregated) for each unit of measure within a month (typically an hour). For now, think of the real-time price and hub price as the weighted-average price for such month.
To review a structural chart of how a hedge typically fits within a Project, please click here.
For any questions about this webpage or any other derivative questions, please contact Dan Lynch.
Welcome to the Akin Gump Power Hedge Settlement Calculator. This interactive model should be used only for illustrative purposes as it is a simplified model of a typical physically-settled renewable energy hedge, with a tracking account to manage node-to-hub basis risk.
This interactive financial model allows you to adjust price, interest rate, actual production (and other cells available after pressing the "Enter the Calculator" button) to see how such inputs affect the amount that the theoretical Project Company would receive under a typical hedge. For simplicity, the inputs reflect one number for an entire month where, in actual practice, the real-time price, hub price and other variables will be calculated (and then aggregated) for each unit of measure within a month (typically an hour). For now, think of the real-time price and hub price as the weighted-average price for such month.
To review a structural chart of how a hedge typically fits within a Project, please click here.
For any questions about this webpage or any other derivative questions, please contact Dan Lynch.
- To review a structural chart of how a hedge typically fits within a Project, please click here.
- For any questions about this webpage or any other derivative questions, please contact Dan Lynch.