Webinars

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 be used to financially hedge electricity price risk and how this technique can structure profitable arbitrage transactions between the natural gas and electric power markets Click here to register.

1. What heat rates are and how they are expressed.
2. The difference between a generating plant's operating heat rate and its economic or conversion heat rate.
3. How to correctly convert coal, oil and natural gas prices to equivalent electric power prices.
4. 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?)
5. What the spark spread is and what the difference is between spot and forward spark spreads.
6. How to define the spark spread as both a product price spread and as a market implied heat rate.
7. The basics of spread trading using a spark spread example.
8. The structure of forward tolling, reverse tolling and power purchase arrangements -- and what to watch out for.
9. How tolling arrangements can be used to sell natural gas by "wire".

1. Why and how coal and natural gas fired generating units are valuable call options on the spark spread.
2. How to hedge electric generation assets while keeping the upside income potential that results from the asset's optionality. (A Detailed Example)
3. What heat-rate-linked power transactions are, and why they are important.
4. How heat-rate-linked power transactions can be used to hedge electricity price risk. (Mini Case Study)
5. 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)

This seminar 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 & risk management professionals), accountants, trading support staff, auditors, attorneys, government regulators, rate-making specialists, plant operators, engineers and corporate planners.

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

$395 for the first attendee and $195 for the second attendee, and $125 for each attendee thereafter.

Special discounts are available for groups of 10 or more. Please call Janice Ohmura for details at (412) 521-4737.

Payment is due prior to the start of the seminar by Visa, Master Card, American Express, Diners Club or 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 two (2) 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 seminars. Substitutions may be made at any time. For more information on PGS policies regarding administrative matters and complaint resolution, please contact our offices at (843) 342-9945.

This group seminar is eligible for 3.5 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 3.5 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.