IN-PERSON CLASSROOM SEMINARS

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Fundamentals of Energy/Power Marketing & Trading
A comprehensive & practical two-day training program.

A Two-Day Classroom Seminar (CPE Approved)

Register Soon to get Early Bird Pricing.

Welcome to the world of wholesale energy merchants, power marketers, REPs, ESCOs and ESPs. This new seminar is for professionals who are looking for a comprehensive and clearly explained understanding of U.S. natural gas/electricity marketing and trading. Learn how to structure and sell profitable transactions; how natural gas/electricity physical, financial, virtual PPA, and heat rate transactions are done; how power marketing is accomplished within an ISO LMP world; common customer/supplier contract structures and how to manage volumetric/intermittency risk; the eight different types of customers and what they are looking for; how energy marketers and traders make money buying options from their customers and suppliers; the hidden money-making power of extendible contracts; the basics of energy options and how low-cost collars work; basic energy trading techniques and how traders gain an edge; what asset optionality is; and how to make money trading around pipeline, storage, electric generation, and refiner/processing assets.

What You Will Learn
  • How to use futures, options, swaps, trigger deals, "The Master Marketing/Trading equation" and other techniques to structure profitable energy and electricity transactions.
  • The eight different types of energy buyers and what they are looking for.
  • Full Requirements, "LD" contracts, Swing Deal, load shape, load factor, and other important energy marketing terms and concepts.
  • How energy and power marketers add value through aggregation, financial products, market-making, risk management, the portfolio effect, merchant assets, and the management of volumetric, intermittency and delivery risks.
  • The basic organizational structure and key terminology of an energy marketing company.
  • What the difference is between the financial and physical basis ("fin" and "phys").
  • Why trigger deals, low-cost collars, heat rate deals, and free-electricity sales products are so popular, and how energy/power marketers make money on these transactions.
  • How to use energy and electricity financial instruments to change the pricing terms of energy transactions, bilateral power deals, and solar & wind Virtual PPAs.
  • How to financially turn one commodity into another.
  • How marketers make money by buying valuable energy options from their customers and suppliers, and how your company may be missing significant financial opportunities.
  • Why "extendible" deals can be so profitable.
  • The basics of spread/basis trading, the 12 different types of energy risks, and what can go wrong.
  • The meaning of asset optionality, and how to 'trade around' transmission, storage, processing, and electric generation assets.
What You Will Also Learn
  • The terminology, concepts and mechanics of physical, financial & heat rate power transactions.
  • How to purchase pipeline transmission capacity, the basics of nominations and scheduling, and what accounting pool-to-pool transfers are.
  • How to transport physical power using OASIS and NERC tags.
  • How and why companies often move physical power and natural gas virtually by causing it to financially 'jump' between regions.
  • The difference between physical, scheduled, and contract path power and natural gas flows.
  • What "sellers choice" is, and how transaction "daisy chains" form at virtual power trading hubs and in natural gas pipeline accounting pools.
  • How and why power and natural gas physical transactions are often "booked-out" and settled in cash, and why bilateral transactions in ISO markets are primarily financial.
  • How to execute wholesale and retail power marketing transactions both within and outside of an ISO area- including commonly used contract language and NERC tags; how to manage LMP, basis, delivery, volumetric, intermittency and operational risks; and why NITS, TAC, UCAP, resource adequacy and ancillary service charges need to be included.
  • How ICE & CME cash settled financial futures contacts, commodity swaps and FTRs/CRRs/TCCs can be used to hedge electricity price, basis and LMP spread risk.
  • The difference between operating, economic, market and negotiated heat rates, and what the terms spark spread, dark spread, crack spread, and bark spread mean.
  • What "tolling deals" are, and how the powerful technique of heat-rate-linked power transactions can be used.
  • How a natural gas-fired generating plant is a call option on the spark spread, what "optionality" means, and a simple rule to use to optimize the economics of a natural gas or coal-fired merchant generating plant.
  • What The Master Energy Trading Equation is, and why trading energy and electricity is different from the trading financial products and other commodities.
  • The many different types of energy and electricity trading, why traders specialize, and the different ways energy traders can get an "edge" on the competition.
  • What the rationale, concepts and mechanics are for basis trading, spread trading, trading around assets and structured transactions.
  • The fundamentals of energy and electricity options, the implications of high energy price volatility, and why merchant energy and electric power assets are highly valuable call options on spreads.
  • How to calculate annualized volatility, the fundamentals of pricing options and why the Black and Black-Scholes models need to be modified to price energy and electricity options.
  • The put-call option parity equation and basic synthetic option positions.
  • What Tolling Deals, Asset Optionality, and the petroleum industry's "Carry Trade" are, and how they work.
  • Why a merchant fossil fuel generating plant is a call option on the spot spark spread, and you will learn a simple rule that will optimize your daily decisions on whether to use or idle an electric generator, storage facility or transportation asset.
  • How heat-rate-linked power transactions can effectively convert natural gas futures, options, and swaps into electric power financial instruments which can then be used to manage electricity risks or structure profitable transactions.
  • How the ICE and CME-NYMEX futures exchanges and electronic marketplaces function, and what the differences are between ICE OTC, ICE Futures, CME Globex, CME Clearport Services and The Nodal Exchange.
  • What the differences are between a futures commission merchant ("FCM"), over-the-counter broker, trader, market-maker, power marketer and wholesale energy merchant.
Seminar Agenda
  • The seminar will begin with an in-depth overview of how energy, commodity, and electric power markets and energy/power sales work including important terminology, and key concepts.
  • The above "What You Will Learn" and "What You Will Also Learn" topics will then be addressed in a systematic way.
  • First from the perspective of natural gas. coal. oil, and other energy products;
  • Second from the perspective of electric power; and
  • Finally from the perspective of natural gas and electricity cross commodity transactions.
  • Please call Janice Ohmura at PGS if you need additional information. Janice can be reached during Eastern U.S. business hours at (440) 853-1038.
Your Instructor
John Adamiak
John Adamiak is President and Founder of PGS Energy Training and 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 15 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.
Hotel and Seminar Information
This two-day seminar will be held at the hotels listed below or can be conducted on-site at your facilities. 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 2:30 PM. The program includes continental breakfast, lunch and coffee breaks on the first day and a continental breakfast, snack and coffee breaks on the second day. Attendees also receive a professionally produced seminar manual that can serve as a valuable office reference. Dress is casual for all seminars.
COVID 19 Information: Please click here for the PGS Covid-19 policy. You can confirm each hotel's specific COVID 19 policy using the link(s) provided below.
Registration Fee and Discounts
The price for this comprehensive two-day seminar is $1,895 (USD).
Register online or Call (440) 853-1038.
  • Additional attendees and government employees receive a 10% discount.
  • Register 4 or more attendees and receive 20% Off. Special pricing is available for groups of 5 or more.
    If you want attendees to pay with separate credit cards or have other questions, please call (440) 853-1038 for assistance.
Payments and Cancellations
Payment is due prior to the start of the seminar by Visa, Master Card, American Express, 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 will result in a credit that is good for 2 years which can be transferred to a colleague. Substitutions may be made at any time. 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

This live group seminar is eligible for 13.5 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 Energy Training is registered with GARP as an Approved Provider of Continuing Professional Development (CPD) credits. If you are a Certified FRM or ERP, please record this activity in your Credit Tracker at http://www.garp.org/cpd. Please inform PGS Energy Training that you are a GARP CPE participant upon seminar registration.

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/cpd.
Who Should Attend

Among those who will benefit from this seminar include energy/power marketing, sales, purchasing, origination, structuring, & risk management professionals; executives; traders & trading support staff; energy and electricity buyers; asset managers and developers; IT/software professionals, attorneys; government regulators; accountants; auditors; and corporate planners. Types of companies that typically attend this program include energy/power marketers, REPs, ESCOs, ESPs and wholesale merchants; energy producers, electric generators, and renewable energy developers; banking and financial professionals; software and asset development firms; utilities; industrial companies; accounting, consulting & law firms; municipal utilities; and government regulators.

Prerequisites and Advance Preparation

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 class today, and join the over 10,000 energy professionals who have already attended one of PGS's proven programs.

Program Level & Delivery Method
Basic level. This fundamental course begins with basic material and then proceeds to the intermediate level. Delivery method is "Group-Live.”