RISK VS. PROTECTION
RISK MANAGEMENT SERVICES
Energy users need to tailor their risk management practices to relative market price conditions. In higher cost markets, new hedges should be kept short and energy users should rely heavily on index supply until markets have an opportunity to correct. As market prices fall, the term of energy hedges should be extended and the volumes covered increased.
Traditionally most retail energy users hedge their energy price risk thru their selected energy supplier. While such "physical" hedges are easy to implement, they tie a client’s risk management to a single vendor which may not be the most competitive solution. More and more, larger energy users are employing financial hedging to manage their electric and natural gas price risk.
Just as with traditional physical hedges, TLS Energy, LLC. will recommend attractive financial hedging opportunities for interested clients. We can execute trades thru our affiliated partner Ethree Financial and provide all necessary reporting to satisfy FASB requirements.

Advantages of Financial Hedging
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Lower cost solution than physical hedges
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No embedded risk & cost of money premiums
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Less credit support needed to initiate positions
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Flexibility
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Cap & collar strategies allow user to benefit from downward market movements
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"Out-of-Market" positions can be quickly terminated
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Transparency
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Cross commodity hedging