Recorded Seminars

Introduction to Heat Rates, Spark Spreads, Generation Optionality, Tolling & Heat Rate Linked Power Transactions.
Recorded Seminar Lesson E904
Register for one or both recorded sessions of this two part seminar
How This Seminar Works
  1. Each seminar session consists of a high quality streamed audio recording combined with Internet-posted and PDF formatted PowerPoint slides. The audio recording includes all questions asked during the original presentation as well as the instructor's response.
  2. After registering for a seminar session, you will be emailed a Web link and password which will enable you to view the online seminar session through your computer's Internet connection. Seminar slides will also be provided in PDF format in case you want to print a copy.
  3. Upon registration, you will receive immediate online access to each seminar session you purchase. Your 48 hour viewing period does not begin until the first time the seminar is accessed. Flexible viewing options are available for groups of 10 or larger. Please call Janice Ohmura at (440) 853-1038 for more information.
  4. After your access time is completed the online session will expire, but the PDF formatted seminar slides will be yours to keep. You can access the online seminar session using one or more computers, but you will need to register the total number of attendees who will view the seminar.
  5. Instructor contact information will be provided to you before you access the seminar. After you have viewed the presentation, questions can be directed to the instructor via email or telephone.

This seminar addresses the fundamentals of heat rates, spark spreads, tolling arrangements, electric generation optionality and the basics of hedging gas-fired power plants.

You will also learn how heat-rate-linked power transactions can financially hedge electricity price risk, and how this technique is used to structure profitable arbitrage transactions between the natural gas and electric power markets. Click Here to Register

What You will Learn - Session #1
  • What heat rates are and how they are expressed.
  • The difference between a generating plant's operating heat rate and its economic or conversion heat rate.
  • How to correctly convert coal, oil and natural gas prices to equivalent electric power prices.
  • How to correctly calculate fuel quantities. (For example, how many MMBtus per day of natural gas is needed to serve a 50 MW on-peak power deal?)
  • What the spark spread is and what the difference is between spot and forward spark spreads.
  • How to define the spark spread as both a product price spread and as a market implied heat rate.
  • The basics of spread trading using a spark spread example.
  • The structure of forward tolling, reverse tolling and power purchase arrangements -- and what to watch out for.
  • How tolling arrangements can be used to sell natural gas by "wire".
What You will Learn - Session #2
  • Why and how coal and natural gas fired generating units are valuable call options on the spark spread.
  • How to hedge electric generation assets while keeping the upside income potential that results from the asset's optionality. ( A detailed example.)
  • What heat-rate-linked power transactions are, and why they are important.
  • How heat-rate-linked power transactions can be used to hedge electricity price risk. (Mini Case Study)
  • How heat-rate-linked power transactions can be used to arbitrage natural gas/electricity price discrepencies without access to physical generation facilities. (Mini Case Study)
Your Instructor

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.

Who Should Attend this Seminar

These seminar sessions will benefit those organizations and professionals interested in learning the relationship between coal, natural gas and electric power prices and the basics of power generation economics. Energy producers, utilities, banks, law firms, municipals, ISOs, power marketers, industrial companies, and electric generators will gain valuable insights, as will energy and electric power executives, traders, marketers, (sales, purchasing and risk management professionals), accountants, trading support staff, auditors, attorneys, government regulators, rate-making specialists, plant operators, engineers and corporate planners.

Why Choose PGS?

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

Prerequisites

This seminar has no prerequisites. No advance preparation is required before the seminar.

Registration Fee

Each session is $149 for the first attendee, $75 for the second attendee, and $45 for each attendee thereafter.

Flexible viewing options are available for groups of 10 or more.
Please call Janice Ohmura for details at (440) 853-1038.

Click Here to Register

Payment and Cancellations

Payment can be made by Visa, Master Card, American Express, Diners Club, check or wire transfer. 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. Due to the nature of this pre-recorded product, no refunds are possible, but full credit for one year will be given toward another seminar. For more information on PGS policies regarding administrative matters and complaint resolution, please contact our offices at (440) 853-1038.

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