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13.7.2 International Operations > 13.7.2 International Operations - Pg. 331

308 Commonwealth Energy System other business units, including energy brokerage and international opera tions, will be developed. Before these units are formed, opportunities in these markets will be evaluated. 13.7.1 energy Brokerage Brokerage of energy is a major area of opportunity that is evolving. For many years, oil has been purchased on a commodity basis with associated futures options. With the implementation of Orders 436 and 636, natural gas can also be purchased on a commodity basis. Similarly, with the introduction of self generation as a major source of power, electricity will be purchased as a commodity in the very near future. With these changes, financial instru ments are now being introduced as a means to establish short and long term pricing options. The introduction of futures contracts is the result of the markets' need for greater certainty regarding energy prices. With the utilization of oil, gas, and electricity hedges, new products will be launched to meet customer needs. These products will be required in the marketplace as a way for utilities and customers to minimize price risks. In addition, the coupling of fuel and electricity options will allow for contract innovations that will change the industrial and commercial