Energy Risk Management
The key function of the Energy Risk Management Division is to identify, value, measure, monitor and report risks so that Associated is better able to manage its portfolio of resources and protect the cooperative from inherent market risks.
The division, established in 2017 by incoming CEO David Tudor, has increased the flexibility of Associated’s power marketing and fuels team by developing infrastructure – the people, processes and software – to support new hedging strategies that enable the cooperative to succeed in a changing marketplace.
Since it was established, division staff have improved the control environment and system of record for all energy commodity risks, including electricity, natural gas, diesel fuel, emissions and renewable energy credits. Centralized management of these risks improves the cooperative’s ability to develop hedge strategies, monitor, manage and report on them, said Chief Risk Officer Scott Thompson, who adds, "You can’t manage what you don’t measure,” a quote by scholar and teacher Dr. W. Edwards Deming.
The team supports power marketing and fuels team and assist other teams, from providing risk reports to Accounting and Finance to generating maintenance outage risk reports for Power Production.