Kemper Insurance Companies, Aquila Inc. and its wholly owned affiliate Aquila Re Ltd. announced they have joined together to market and underwrite products that protect buyers or sellers of electric power from unexpected spikes in the price of replacement power during an unplanned outage of a generating unit.
According to the companies, an unplanned generator outage can have a significant financial impact if the outage occurs when spot market prices for power are high. Generator owners that have fixed delivery commitments and power users or traders that have agreed to purchase power on a unit contingent basis can be forced into the spot market to purchase replacement power to meet their needs during an unexpected outage.
Kemper’s Power Generation Protection was developed to provide insurance that indemnifies customers for the difference between a pre-determined price and the cost for replacement power. Customers can also opt for an alternative that provides physical delivery of replacement power through Aquila. Aquila’s GuaranteedGeneration SM provides customers with a contingent call option for power with physical delivery or financial settlement.
Kemper, a leading provider of property/casualty insurance and risk management services, is headquartered in Long Grove, Ill. The Kemper Insurance Companies are “A” rated by A.M. Best, Standard & Poor’s and Moody’s.
Based in Kansas City, Aquila is one of the top wholesalers of electricity and natural gas in North America, is an innovative provider of risk management products and services and owns and controls a diverse portfolio of merchant assets including power plants, gas storage, pipeline, and processing facilities, and other complementary merchant infrastructure facilities. Aquila also provides wholesale energy services in the U.K., Scandinavia, Germany and Spain.
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