An uptick in extreme weather events is one reason why North American power and gas companies may need to manage risk differently. Weather-related events have become more frequent in recent decades, and the resulting damage comes with hefty price tags, partner Roland Rechtsteiner and coauthors note. There were 97 natural disasters between 1984 and 2003 that cost more than $1 billion. From 2004 to 2023, that number rose to 273. Extreme weather events can affect demand for utilities, threaten aging infrastructure, and result in volatile fuel costs.
To read the article, see “Unlocking value from power and natural gas trading in North America,” November 5, 2024.