Energy Training & Electric Power Classroom Seminars

Three Days: Structured Energy/Power Transactions, Real Options, Retail Electricity Deals and How to Trade Around Energy Assets
A Three-Day In-Depth Seminar and Workshop
Each Class is Limited to First 20 Registrants / A Three-Day Classroom Seminar (CPE Approved)
Register soon to get Early Bird pricing!
New York, NY - November 13, 14 & 15, NYC Torch Club (NYU Campus)

This seminar is designed for regulated and deregulated energy managers, structuring professionals, and anyone else who wants to gain a better understanding of the concepts, methods, and tools energy managers use to structure and price profitable energy/power agreements; how to monetize energy & electric power assets; structure retail power transactions; and increase profits.

This program covers a wide range of energy and power transactions and assets illustrating common principles used across the energy industry. Many powerful energy/power structuring and asset trading techniques are explored, with examples of how these techniques can be applied to many real-world energy transactions and assets. This course also addresses retail electricity pricing structures, RFP proposals, full requirements contract structures, the issues faced by providers of last resort, switching/migration risk, power purchase agreements and a number of other topics. This course is unique in that it addresses both the deterministic intrinsic value and the hidden “insurance extrinsic value” associated with complex agreement structures, energy assets and other opportunities.

A laptop is required with any version of EXCEL.

Click here to register.

What You Will Learn
  1. Financial engineering and stochastic methods and the statistics of structuring
  2. The economics of electric power generation and how to make money trading between next-day vs. real-time electricity prices.
  3. How to trade around, hedge, and monetize natural gas, petroleum and electric power storage, processing, and transmission assets.
  4. Surprisingly effective natural gas structured transactions that lock in profits and value.
  5. How and why many energy/power market participants “leave money on the table” by undervaluing energy options.
  6. How to calculate risk in structured energy products.
  7. How to increase asset value and build the business case for electric batteries, renewables and other distributed energy resources.
  8. The Intrinsic and Extrinsic “Option Value” of energy & electric power assets
  9. How to trade around storage, transportation, btu and electric generation assets.
  10. How to structure cross-commodity structured transactions.
  11. Real Options, Insurance Value and Trading Around a Hedged Asset.
  12. The structure of forward tolling, and reverse tolling arrangements -- and what to watch out for
  13. The statistics of energy transactions, and how to value opportunities and manage risk.
  14. How structured financial transactions can mimic physical energy and electric power assets.
  15. How to structure retail energy supply obligations and community choice aggregation deals.
  16. And much more…
Seminar Agenda
  • DAY 1: FOUNDATIONS OF STRUCTURING
  • Continental Breakfast opens at 7:45am
  • 8:00 AM DERIVATIVES REVIEW
  • Swaps, Futures, Options, etc.
  • Structured Contracts - What they are and how they differ from plain vanilla derivatives
  • Deal Capture and Compliance issues with derivatives and structured transactions
  • Regulatory Issues, ISDA, EEI, FAS133, Dodd Frank
  • Financing needed for these kinds of transactions – Margining, Counterparty credit, etc…
  • 9:30 AM FINANCIAL ENGINEERING AND STOCHASTIC METHODS
  • Statistics of Structuring
  • Closed Form and Numeric Pricing Models, Black Scholes, Monte Carlo, Binomial Trees
  • Volatility and Forecasting
  • General Stochastic Price Models
  • 10:30 FUNDAMENTALS OF HEDGING
  • The Greeks
  • Delta Hedge, Dynamic Hedge, Gamma Hedge
  • Fundamental Charting – Payoff Diagrams and Portfolio VaR
  • 1:00 PM RISK IN STRUCTURED PRODUCTS
  • Risk Analytics and Strategy Tools
  • Calculating Component Risk, Volatility, Correlation and Portfolio Value
  • Measuring Risk in Transactions and Extreme Value Risk
  • VaR – How it’s Calculated and Generalized to Strategy Models
  • Risk Adjusted Return on Capital (RAROC) and other Efficiency Frontier Concepts
  • 2:30 PM REAL OPTIONS AND INSURANCE VALUE EXAMPLE
  • Tolling Contracts
  • The structure of forward tolling, and reverse tolling arrangements -- and what to watch out for
  • A review of an actual tolling-type agreement “term sheet”
  • How tolling arrangements can be used to buy coal and sell natural gas by "wire".
  • CLASS ENDS 4:00 p.m.
  • DAY 2: OVERVIEW OF STRUCTURED TRANSACTIONS
  • Continental Breakfast opens at 7:45 a.m.
  • 8:00 AM OVERVIEW OF STRUCTURED TRANSACTIONS
  • Heat Rates and How they are Hedged
  • Converting Coal, Oil and Natural Gas to Equivalent Electric Power Prices
  • Spark Spreads and Market Implied Heat Rates, Spot and Forward Spark Spreads
  • The Basics of Spread Trading using a Spark Spread
  • 9:00 AM STRUCTURING STORAGE, TRANSPORTATION AND COMMODITY SPREADS
  • Time Spreads (Storage)
  • Locational Spreads (Transportation)
  • BTU Commodity Spreads (Generation)
  • 10:30 AM STRUCTURING RENEWABLE, ENERGY EFFICIENCY AND OTHER DISTRIBUTED ENERGY RESOURCES
  • Building the Business Case for Electricity Storage – An example of optionality
  • Renewable Portfolio Standards and Wind Energy and Photovoltaic
  • Cost-Effectiveness Calculations of Energy Efficiency
  • 1:00 PM STRUCTURED NATURAL GAS AND PETROLEUM TRANSACTIONS
  • Hedging Firm Transportation
  • Selling Physical Swing Options to End-Users
  • Trading Physical in One Location Priced at Index for Another Location
  • Buying Index with a Floor from a Seller
  • Paying a Premium Over Market and Making a Profit
  • Selling at a Discount to Market and Making a Profit
  • 1:30 PM RETAIL ELECTRIC STRUCTURING
  • Power Purchase Agreements
  • The role of aggregators, Community Choice Aggregators and Micro-Grids
  • Rate Design, Fixed and Variable Costs, Adders
  • Contractual Issues
  • Mitigating Risks to Value
  • Different power products/structures (7x8, 2x16)
  • 2:30 PM INTERMITTENT RENEWABLE/DEFAULT SERVICE/PROVIDER OF LAST RESORT/FULL REQUIREMENTS
  • Pricing the RFP
  • Wholesale Portfolios and Bidding
  • Managing Intermittent Renewable Risk
  • Managing Switching/Migration Risk
  • Managing “Full Requirement” Load Shape Risk
  • CLASS ENDS 4:00 p.m.
  • DAY 3: STRUCTURED POWER GENERATION TRANSACTIONS
  • Continental Breakfast opens at 7:45 a.m.
  • 8:00 AM THE ECONOMICS OF POWER GENERATION
  • Term Trading and Load Obligation
  • Intra-Month Balancing
  • Next-day, Real-Time Balancing, Scheduling and Settlements
  • Hedging & Monetizing Generation Assets
  • Intrinsic and Extrinsic Valuation of Electric Generation Assets
  • 9:30 AM FINANCIAL CONTRACTS THAT MIMIC PHYSICAL ASSETS
  • Cross Commodity Energy Swaps
  • Spark Spread Options
  • Heat Rate Call Options
  • Heat Rate Linked Power Contacts
  • 10:30 AM POWER GENERATOR OPTIONALITY
  • Owning a physical generation asset;
  • Owning a Spark Spread Call Option;
  • Owning a Heat Rate Call Option;
  • Controlling a generating asset through a tolling arrangement; or
  • Using a heat-rate-linked power transaction
  • CLASS ENDS AT NOON
Your Instructor - New York

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

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 and Advance Preparation

This fundamental level group live seminar has no prerequisites. No advance preparation is required before the seminar.A laptop is required with any version of EXCEL.

Program Level

Basic level. This fundamental course begins with basic material and then proceeds to the intermediate level.

Delivery Method

Group-live.

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 Information
This 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 on the first and second day. On the third day, the seminar will resume at 8:00 AM and will finish at 1:00 PM. The program includes continental breakfast, lunch on the first and second day, and coffee breaks. Attendees also receive a professionally produced seminar manual that can serve as a valuable office reference. Dress is casual for all seminars.
November 13, 14 & 15
NYC Torch Club (NYU Campus)
18 Waverly Place
New York, NY 10003
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 (440) 853-1038 and we can help you with your accommodations.
Registration Fee and Discounts

Register Today!. The price for this comprehensive three-day seminar is $2,945 (USD).

Early Bird Special: Register on or before Oct 24, 2018 and save an additional $200 per order!
Register soon to get Early Bird pricing. A limited number of Early Bird seats are available.
  • Additional attendees and government employees receive a 10% discount.
  • Members of TOGA, AIPRO, INGAA or IOGA-NY receive a 15% discount. Please call (440) 853-1038.
  • 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 for the same seminar, 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 and will call you to obtain the credit cards and registration information for your other attendees in order to give them their 20% discount. If applicable the Early Bird discount of either $200 or $100 will be divided evenly between all participants.) Please call (440) 853-1038 for more information.
    Special pricing is available for groups of 5 or more. Please call Janice Ohmura at (440) 853-1038.
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 18.0 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 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 Three Days: Structured Energy/Power Transactions, Real Options, Retail Electricity Deals and How to Trade Around Energy Assets qualifies for 18.0 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.

PGS Energy Training · 26 Teal Lane · Hilton Head Island, SC 29926
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