Energy Training & Electric Power Classroom Seminars
Power Risk Management & Analysis Workshop
A Two-Day Classroom Seminar (CPE Approved)
Register soon to get Early Bird pricing!
Houston, TX - October 10 & 11, Homewood Suites by Hilton Houston Near the Galleria
Risk interpretation is continually evolving: Knowing what information to incorporate or ignore in quantitative modeling--and how to avoid bad assumptions--is vital. In this interactive, hand-on seminar the participants will learn a comprehensive power risk management methodology that addresses risk from the strategic perspective of the enterprise level all the way down to the detailed management of specific individual risks.
Participants will learn how to make value-at-risk work in practice – how to design, implement and use scalable production value-at-risk measures on the trading floor. Real-world challenges are discussed relating to measurement and computation of energy-related uncertainty and risk.
Through group exercises and case studies, participants will discuss best practices and identify key fundamental relationships, perform exercises to update models; vet standard quant models and examine emergent techniques in risk mitigation and stress testing; and apply different calculation approaches needed for different applications and understand how the underlying statistics can make or break energy risk calculations.
What You Will Learn
8:00 am - 12:00pm
Risk 101: Tools, Templates and Calculations
The opening session focus on understanding basic risk management analysis using specific tools to evaluate a particular company's approach. Discussion includes an overview of the key terms and definitions for energy risk management; understanding and evaluating how companies approach commodities and capital markets risk; hedging vs. optimization; legislative/regulatory outlook for derivatives; ratings, and credit implications, including:
Exercise: Statistical modeling and confidence intervals - Energy Budgetary Risk
Principals of Enterprise Wide Risk Management
In this session, we focus on the fundamental principles of enterprise wide risk management from strategic corporate goals to risk identification and reporting. The discussion includes methods and challenges of risk identification beyond financial instruments, to corporate wide earnings at risk measures. Real-world challenges are discussed relating to measurement and computation of energy related uncertainty and risk. Participants will learn:
Energy Derivatives, Pricing and Hedging
Understanding the valuation of options and derivatives; best practices to keep analysts on point, considerations in the option and derivative markets and how these elements impact the valuation on these instruments. Participants will learn different calculation approaches needed for different applications and understand how the underlying statistics can make or break energy risk calculations, including:
Exercise: Portfolios and volatility – getting the units right
Day One Concludes
Hedge Optimization to Increase Cash Flow and Minimize Risk
Utility hedge design has generally focused on creation of balanced physical positions largely independent of market prices. Although disciplined rules applied to cover physical exposure work well, they fall far short of optimal hedging. Unleash the latent value of generation assets and load obligations by turning risk management into an affirmative business tool that drives value and reduces uncertainty in budgeted cash flows. This is a hands-on session that builds on lessons learned in previous sessions and will walk attendees through exercises on portfolio hedging for actual utility portfolios, including:
Exercise: Regression Analysis of Hedge Effectiveness
Analytics of Managing Commodities Risk as Markets Evolve
This session will outline the knowledge and skills needed to pursue a comprehensive risk strategy in today's ever-changing commodities marketplace. Through practical exercises from the power sector, the instructor will walk participants through the process to develop a strategy that is comprehensive enough to take account of traditional fundamental drivers of price volatility while being flexible enough to cope with the new demands of the emerging regulatory framework. Key elements include:
Exercise: Building a NYMEX gas portfolio VaR calculation from scratch
Case Studies: Risk Mitigation/Modeling
The focus is on how to make value-at-risk work in practice—how to design, implement and use scalable production value-at-risk measures on real trading floors. The relationship between risk and value is further developed as we apply financial engineering principals to strategic capital asset problems. Participants will discuss best practices/identify key fundamental relationships as well as perform exercises to update models; vet standard quant models and examine emergent techniques in risk mitigation, strategic valuation and stress testing, including:
Exercise: Valuing Physical Energy Assets using Financial Engineering Tools
Your Instructor - Houston
Kenneth Skinner, PhD - VP and Chief Operating Officer, Integral Analytics
Kenneth Skinner, Ph.D. is Vice President of Risk & Evaluation Products for Integral Analytics, an analytical software and management consulting firm focused on operational, planning, and market research solutions. Dr. Skinner has over 20 years’ experience in evaluation and risk measurement, having worked as an energy consultant with PHB Hagler Bailly and Financial Times (FT) Energy, and as the Derivative Structuring Manager for the retail energy supplier Sempra Energy Solutions. He has his Ph.D. from Colorado School of Mines, in Mineral Economics, with an emphasis in Operations Research, an MBA from Regis University and his BS in Engineering from Letourneau University.
Dr. Skinner is a nationally recognized expert in economic evaluation and modeling of energy assets including energy storage, distribution and generation, efficiency and demand response, renewable energy alternatives, financial derivatives and structured contracts using net present value, econometric and statistical methods, optimization principles, and real option valuation techniques. Dr. Skinner is currently the technology columnist for Wiley Natural Gas and Electricity Journal and is a noted speaker on energy related topics for organizations such as AESP, IAEE, ACEEE, PLMA, IEPEC, INFORMS, Infocast, EUCI, SNL Energy and PGS Energy Training.
Who Should Attend this Seminar
Credit risk analysts Market risk managers Energy traders and managers End-users of derivatives in corporations Risk consultants Risk and audit committee members Finance department professionals Compliance managers
Prerequisites and Advance Preparation
Power Risk Analysis Workshop presumes that participants are familiar with standard basic option pricing theory or risk modeling, such as Monte Carlo simulation. Please bring laptop.
Basic level. This fundamental course begins with basic material and then proceeds to the intermediate level.
Why choose PGS?
PGS seminars are known for their clear explanations and in-depth content. Register for a PGS class today, and join the over 10,000 energy professionals who have already attended one of PGS's proven programs. View Past Seminar Attendees
Hotel and Seminar InformationThis two-day seminar will be held at the hotel listed below. The seminar will start promptly at 8:00 AM and will finish at 5:00 PM on the first day. On the second day, the seminar will resume at 8:00 AM and will finish at 3:00 PM. Your registration includes all conference materials and continental breakfast and lunch on both days. Dress is business casual.
October 10 & 11
Homewood Suites by Hilton Houston Near the Galleria
2950 Sage Road
Houston, TX 77056
Telephone: (713) 439-1305
The hotel is holding rooms at a discounted rate of $149.00 plus tax. Please call the hotel and ask for the PGS Energy discount. Make your reservations early because these rooms sell out. If you have questions about the sleeping room reservation, please call Hillary at The Homewood Suites at 832-369-1668.
Registration Fee and Discounts
Register Today!. The price for this comprehensive two-day seminar is $1,795 (USD).Early Bird Special: Register on or before Sep 20, 2017 and save an additional $100 per order!
Register soon to get Early Bird pricing. A limited number of Early Bird seats are available.
Payment and 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" 26 Teal Lane · Hilton Head Island, SC 29926. Cancellations can be made up to five (5) business days prior to the start of the seminar for a full refund. No refunds will be made thereafter, but a one year full seminar credit will be given toward future workshops upon receipt of $175 which will used to help offset the non-refundable food, beverage, manual and other expenses incurred by PGS. This one year seminar credit is good for any PGS Energy Training program except for seminars offered by PGS affiliate organizations. Colleague substitutions may be made at any time. If PGS needs to cancel a seminar due to instructor unavailability, lack of attendance or other unforeseen reason, you will be offered the choice of rescheduling for another seminar, a seminar credit, or a refund. For more information on PGS policies regarding administrative matters and complaint resolution, please contact our offices at (440) 853-1038.
CPE Credits in Specialized Knowledge & Applications
This live group seminar is eligible for 14.5 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 submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. CPAs interested in attending any seminars should contact our offices for details on CPE credits granted and any prerequisite requirements. PGS telephone seminars are eligible for CPE credits only if seminar participants use the printed seminar slides - not the Internet posted slides.
PGS Energy Training is registered with GARP as an Approved Provider of Continuing Professional Development (CPD) credits. PGS Energy Training has determined that attending Power Risk Management & Analysis Workshop qualifies for 14.5 GARP CPD credit hours. If you are a Certified FRM or ERP, please record this activity in your Credit Tracker at http://www.garp.org/cpd.
The Global Association of Risk Professionals (GARP) is a not-for-profit membership association dedicated to preparing professionals and organizations for making better-informed risk decisions. GARP’s membership represents more than 150,000 risk management practitioners and researchers at academic institutions, banks, corporations, government agencies, and investment management firms in 195 countries and territories. GARP administers the Financial Risk Manager (FRM) and Energy Risk Professional (ERP) Exams – certifications recognized by risk professionals worldwide. Visit www.garp.org/cpe.