Wayne, Pa., Sept. 9, 2002 — Planalytics Inc. announced that Allegheny Power has licensed Planalytics® GasBuyerSM, a web-delivered risk management tool for purchasing and hedging natural gas.
“The goal of our risk management program is to protect our customers from volatility in the natural gas market,” said Karl Pfirrmann, Vice President, Energy Supply of Allegheny Power.
“The GasBuyer has a successful track record of projecting how changes in weather and gas inventory levels will drive changes in gas prices over the next year, and this should help us better optimize our purchasing strategies.”
GasBuyer uses proprietary long-range climate forecasts and inventory change projections, weekly storage data, real-time NYMEX futures contract pricing, and advanced neural network technologies to evaluate gas prices for each of the next twelve months.
Based on future weather and how it will ultimately impact the market, the software determines if gas is currently “undervalued” or “overvalued” and then provides clients with daily buying, selling, and hedging actions that reduce risk and take advantage of opportunities presented by fluctuating prices.
The tool’s year-ahead view of the market allows clients to gradually, proactively, and cost-effectively address their gas needs while minimizing the negative effects of shorter-term price volatility.
Allegheny Power, an Allegheny Energy company, delivers low-cost energy to three million people in parts of Maryland, Ohio, Pennsylvania, Virginia, and West Virginia. More information about the Company is available at www.alleghenypower.com.
Wayne, PA-based Planalytics (www.planalytics.com) helps companies make more effective and profitable decisions by forecasting weather-driven changes in supply, demand and prices for products and services.
Companies in all industries use Planalytics’ technologies to capitalize on market opportunities and improve financial results by hedging the impacts of weather volatility.