Risk Management and Insurability Strategies for Power Generation

doe

Authors

Andrea Rota, Austin Linder, Mark DellaCroce, Cooper Wolanin

Sponsor

U.S. Department of Energy

Advisors

Scott Jiusto, James Hanlan

Term

October – December 2017

Project Outcomes

Final Report

Abstract

Insurance can be an important risk mitigation strategy for power generation. The 2017 hurricane season, for example, highlighted the challenges faced by electric utilities in serving their customers. This project focused on gathering data from power utility and insurance companies to learn more about power sector risks and corresponding insurance industry products. Interviews and case studies of power utility and insurance companies illuminated connections between the two intertwined industries. Findings emerged including what the two industries view as their largest risks and how nuclear power is covered through a cumulative industry pool. The project provided the Department of Energy insights into both power sector insurance issues and challenges of researching same.