Skip to main content

Guidebook for Evaluating Fuel Purchasing Strategies for Public Transit Agencies (2012) / Chapter Skim
Currently Skimming:


Pages 54-58

The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.


From page 54...
... 54 Program Implementation Fuel price hedging programs are the most effective way for a public transit agency to manage fuel price volatility. Starting a hedging program can be a long and involved process depending on the type of strategy and instrument and the types of financial activity that the agency is authorized to participate in.
Read the entire page →
From page 55...
... Program implementation 55 available. This process involves reviewing informational resources (such as this guidebook)
Read the entire page →
From page 56...
... 56 Guidebook for evaluating Fuel Purchasing Strategies for Public transit Agencies 8.4 Develop Hedging Policy Timeframe: 1 month Once authorization for the hedging program has been obtained, the transit agency must begin developing its hedging policy. This policy can be developed before authorization has been obtained or while the agency is in the process of obtaining authorization.
Read the entire page →
From page 57...
... Program implementation 57 and the hedging policy has been approved. Hedging with exchange-traded futures or options requires a relationship with a broker with a seat on the NYMEX and is an easier process than evaluating counterparties for over-the-counter transactions.
Read the entire page →
From page 58...
... 58 Guidebook for evaluating Fuel Purchasing Strategies for Public transit Agencies reviewed by upper management, and sometimes the board of directors, before being signed by the transit agency. A full overview of the myriad of negotiable clauses in an OTC hedging agreement is beyond the scope of this guidebook.
Read the entire page →

Key Terms



This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More information on Chapter Skim is available.