This seminar is for professionals who are looking for a fundamental understanding of natural gas and electricity financial instruments, the markets they trade in, and how these tools can be used to manage price and basis risk. View Past Seminar Attendees

What You Will Learn:

1. The three different types of forward energy and electricity markets and the terminology they use; how each of these markets operate and their purpose; and why an understanding of these markets is critical for energy industry participants.
2. The difference between brokers, traders, dealers, market-makers, marketers and wholesale energy merchants. 
3. How electronic marketplaces and electronic futures exchanges such as ICE, NYMEX CME Globex, and NYMEX Clearport Services operate. 
4. How to use futures contracts, commodity swaps, CFDs, and trigger deals to protect your company from natural gas and electricity price and basis risk – and the pros and cons of each approach.
5. What basis risk is, and how basis and delivery risk can destroy a hedging program.
6. The three different ways to hedge locational basis risk.

You will also Learn:

1. What The Master Hedging Equation is, and how energy markets are different from equity, bond & currency markets.
2. How heat-rate-linked power transactions can effectively convert natural gas futures, options, swaps and other financial instruments into electric power hedging instruments.
3. A basic overview of energy options: puts/calls and other option terms and concepts.
4. How buyers and sellers can use NYMEX options to create price caps, price floors, and "no-cost" collars to manage price risk.

Seminar Agenda

• Overview of energy & electric power forward markets, terminology, price risk and the basics of energy and electricity wholesale markets.
• Liquidity risk, funding risk and credit risk.
• What futures contracts are, and why and how they evolved.
• How physically-settled energy futures contracts are traded on the NYMEX trading floor and through the electronic NYMEX CME Globex platform.
• How cash-settled energy futures contracts are electronically traded on the ICE Futures Exchange and why the crude oil futures contract has been so successful.
• How buyers and sellers hedge natural gas and electricity price risk with NYMEX futures contracts.
• How to use heat rate linked power transactions to hedge electricity price risk with NYMEX natural gas futures contracts.
• What basis is, and what the different types of price spreads are.
• What basis risk is, and how it can destroy a futures hedge.
• What spread or basis trading is and how it works.
• The fundamentals of fixed-for-floating swaps, basis swaps, exchange indexed swaps, and contracts-for-differences.
• How electronic marketplaces such as ICE and NYMEX's Clearport Services work, how an Internet marketplace differs from an Internet futures exchange, who the CFTC and the United Kingdom's FSA regulates, and why these issues are important.
• The difference between financial and physical basis ("fin" and phys").
• Why so many industry participants use trigger deals. .
• How the wholesale energy hedging equation is defined, and how it is used.
• Puts and calls / Basic option terminology and concepts. 
• What American, European and Asian style options are.
• How to create price caps and collars with exchange-traded options.

Your Instructor

John Adamiak is President and Founder of PGS Energy Training and is an expert in energy derivatives and electric power markets. Mr. Adamiak is a well-known and highly effective seminar presenter who has over 20 years experience in the natural gas and electric power industries. His background includes 12 years as a seminar instructor, 9 years of energy transaction experience, and 6 years of strategic planning and venture capital activities. John's academic background includes an M.B.A. degree from Carnegie Mellon University.

Who Should Attend this Seminar?

Among those who will benefit from this seminar include energy and electric power executives; attorneys; government regulators; traders & trading support staff; marketing, sales, purchasing & risk management personnel; accountants & auditors; plant operators; engineers; and corporate planners. Types of companies that typically attend this program include energy producers and marketers; utilities; banks & financial houses; industrial companies; accounting, consulting & law firms; municipal utilities; government regulators and electric generators.

Prerequisites

This fundamental level group live seminar has no prerequisites. No advance preparation is required before the seminar.

Why Choose PGS?

PGS seminars are known for their clear explanations and in-depth content. Register for a PGS program today, and team up with the leader in electric power and energy education. Join over 12,000 energy and financial professionals who have already attended one or more of PGS's proven courses. View Past Seminar Attendees

Hotel & Seminar Information

This one-day seminar will be held at the hotel listed below or can be conducted on-site at your facilities. The seminar will start promptly at 8:00 AM and will finish at 4:00 PM. The program includes continental breakfast, lunch, and coffee/cookie breaks. Attendees also receive a professionally produced seminar manual of over 400 slides that can serve as a valuable office reference. Dress is casual for all seminars. 

The Melrose Hotel
2430 Pennsylvania Avenue, NW
Washington, DC 20037
Telephone 1-202-955-6400
View Hotel Website

Because of the diversity of hotels found in the area, PGS Energy Training will not be holding a block of sleeping rooms with one particular hotel. Should you need a list of local hotels in the area, please contact us at 412-521-4737 and we can help you with your accommodations.

Registration Fee & Discounts

Register Now and invest in your future. The price for this one-day seminar is $895 (USD).

• Additional attendees and government employees receive a 10% discount.
   
• Sign up for 4 or more classroom seats during the same month and all attendees will receive a 20% total discount. ( If you plan to register 4 or more classroom seats, but want attendees to pay by separate credit cards, register one party now and mention this fact in the "Comments" section of the registration form. We will manually subtract the 20% discount from the first registrant's seminar fee. Tell other parties in your group to mention your name when they register, and we will give them the 20% discount as well.) Please call 412-521-4737 for more information.
  

Payment & Cancellations

Payment is due prior to the start of the seminar by Visa, Master Card, American Express, Diners Club, or corporate check. Seminar fees will be charged to your credit card at the time of registration unless other arrangements have been made. Please make checks payable to "PGS Energy Training" 43 Fawnvue Drive, Suite 700 • Mckees Rocks, PA 15136. Cancellations can be made up to three (3) business days prior to the start of the seminar for a full refund. No refunds will be made thereafter, but credit will be given toward future workshops. Substitutions may be made at any time. For more information on PGS policies regarding administrative matters and complaint resolution, please contact our offices at 412-521-4737.

CPE Credits

This group live seminar is eligible for 7.0 CPE credits. Be aware that state boards of accountancy have final authority on the acceptance of individual courses for CPE credit. As of January 1, 2002, sponsored learning activities are measured by program length, with one 50-minute period equal to one CPE credit. One-half CPE credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity. You may want to verify that the state board from which your participants will be receiving credit accept one-half credits.

PGS  Energy Training is registered with the National Association of State Boards of Accountancy (NASBA)  as a sponsor of continuing professional education  on the National Registry of CPE Sponsors. State boards of accountancy have final authority on  the acceptance of individual courses for CPE  credit. Complaints regarding registered sponsors  may be addressed to the National Registry of  CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasba.org. CPAs interested in attending any seminars  should contact our offices for details on CPE credits granted and any prerequisite requirements.