Hedging transaction authority for power agencies approved

A bill that allows certain public power districts to engage in hedging transactions on commodity futures was passed by the Legislature March 24.

Introduced by Omaha Sen. Brett Lindstrom, LB897 authorizes any power-generating agency that operates in a regional transmission organization to participate in hedging transactions for fuel, power or energy.

The agency could use no more than 5 percent of its annual gross revenue averaged over the previous three years for the transactions. It could use only funds designated for the investments—not facilities or other assets—and the agency’s governing body must authorize any hedging agreement.

The bill passed on a 48-0 vote.