Energy Training & Electric Power Classroom Seminars

Exercise: Statistical Modeling and Confidence Intervals - Energy Budgetary Risk

9:30am-10:30am--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:

• Fundamentals of Hedging Energy Risk
• Price volatility; hedging strategies;how correlation and hedging work together to manage risk
• Develop the framework to analyze derivatives structures and long term contracts
• Using the Efficiency Frontier and the Sharp Ratio to determine VaR limits and risk tolerance
• Apply the variable of credit risk; identify the issues and use the appropriate models

Case Study-Hedging Energy Exposure
Case Study-Layered Hedging Strategy

10:30am-BREAK

10:45am-12:00pm-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

• Interpreting and applying metrics of hedge effectiveness
• Where basic hedge strategies fall short
• How to apply dynamic hedging to meet corporate goals
• Case studies in hedge applications with review and interpretation of results

Exercise: Regression Analysis of Hedge Effectiveness
Exercise: Delta and Dynamic Hedging 

12:00noon-LUNCH

1:00pm-2:30pm-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:

• Examine market risk and how to calculate VaR; three approaches to calculating VaR-model-building, historical simulation and Monte Carlo simulation-advantages and disadvantages
• Incorporate current margin and capital requirements to your risk models
• Consider other trends in more recent instruments (weather contracts, catastrophic, volatility indices and credit default swaps)
• Implementing extreme value theory (and other lessons from the banking crises)

Exercise: Portfolios and volatility-getting the units right
Exercise: Building a NYMEX gas portfolio VaR calculation from scratch
Exercise: Cornish-Fisher expansion to correct gamma error
  
2:30pm-BREAK

2:45pm-5:00pm-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:

• Selection and use of risk metrics and value drivers
• How to incorporate forward market prices, unit characteristics, forced outages, and retail load
• Visualization of market and physical component contributions to risk
• Model validation and benchmarking of results
• How to forecast strategic project risk using financial engineering methods

Exercise: Calculating Retail Supply Demand Uncertainty Risk
Exercise: Monte Carlo Modeling of Risk Factors
Exercise: Valuing Physical Energy Assets using Financial Engineering Tools
Exercise: Calculating the value of Energy Storage for Renewable Energy Intermittency Risk

5:00pm-Workshop ends

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.

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

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

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

• Additional attendees and government employees receive a 10% discount.
• Members of TOGA, AIPRO, INGAA or IOGA-NY receive a 15% discount. Please call 412-521-4737.
• 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.
  Special pricing is available for groups of 5 or more. Please call Janice Ohmura at (412) 521-4737.

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 HHP · 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 full credit for one year 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.

This live group seminar is eligible for 7.5 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 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. 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 education (CPE) credits. PGS Energy Training has determined that this program qualifies for 7.5 credit hours. If you are a GARP CPE participant, please record this activity in your Credit Tracker at www.garp.org/cpe. 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/cpe.