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- Hedging Policy: Do you have a written hedging policy with clearly defined goals and constraints to ensure your strategy will work?
- Hedging Tools: Have you evaluated all of the hedging tools available to you? What are they and how do you use them effectively?
- Basis Risk: Fuel hedging has particular basis risk that needs to be monitored versus hedging tools chosen. Are you watching your basis risk?
- Trading and Execution: Are you using the lowest cost hedging execution strategies
- Counterparties and Exchanges: There is a wide variety of hedging counterparties and exchanges. Have you review who and what is best for you?
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