Companies that are highly exposed to price volatility like wholesale electricity and gas prices can include some kind of energy hedging in their risk management

Companies that are highly exposed to price volatility like wholesale electricity and gas prices can include some kind of energy hedging in their risk management portfolio. It will cost them money in good years but it keeps them from going out of business in bad years. Companies that choose not to hedge make more profit in good years but must come begging to the government for bailouts or price controls in bad years. (i.e. shareholders pocket the profit while taxpayers cover the losses) Depending on the government's response to those kinds of requests, you end up with more of one sort of company or the other.