Preparing for Severe Weather Conditions
Based on weather forecasts predicting a severe winter storm in the United States and Northern Mexico, characterized by low temperatures, which could lead to disruptions in natural gas deliveries and high volatility in prices, the Federal Electricity Commission (CFE) outlines its preventive measures to minimize operational risks posed by this situation.
CFE’s Capacity and Resources
The CFE possesses more than 28,000 MW of available capacity that does not rely on natural gas. This includes conventional thermoelectric, coal-based, and clean energy technologies, ensuring the continuity of electricity supply in the country. Furthermore, CFE has two liquefied natural gas (GNL) regasification terminals capable of supplying up to 350,000 cubic meters within the country.
Monitoring and Coordination
To effectively manage the situation, CFE established the Directive Group for Emergency Attention. This group remains in constant session to monitor the weather evolution, assess potential impacts, and coordinate actions ensuring electricity supply continuity and promptly restoring service when necessary.
Managing Natural Gas Prices
Price Volatility Mitigation:
To counteract the effects of international price volatility in natural gas, CFE maintains a financial hedging program using options-like instruments. These tools confine prices within favorable ranges and reduce exposure during periods of high volatility.
These hedges effectively mitigate financial impacts from sudden price increases and support the operational continuity of the National Electric System.
CFE’s Commitment
The CFE reaffirms its dedication to the public by implementing strategic actions to safeguard the continuity, security, and reliability of electricity supply.
Key Questions and Answers
- What is the CFE preparing for? The CFE is preparing for a severe winter storm in the United States and Northern Mexico, which could disrupt natural gas deliveries and cause price volatility.
- What resources does CFE have to ensure electricity supply? CFE has over 28,000 MW of capacity that doesn’t rely on natural gas, including conventional thermoelectric, coal-based, and clean energy technologies. Additionally, CFE has two GNL regasification terminals.
- How is CFE managing potential price volatility in natural gas? CFE uses financial hedging instruments, such as options, to confine prices within favorable ranges and reduce exposure during periods of high volatility.
- What is the Directive Group for Emergency Attention? The Directive Group for Emergency Attention is a CFE group that remains in constant session to monitor weather developments, assess potential impacts, and coordinate actions ensuring electricity supply continuity.
- What is CFE’s commitment to the public? CFE is committed to safeguarding the continuity, security, and reliability of electricity supply through strategic actions.
