Structured Energy/Power Transactions, Retail Electricity Deals, and How to Trade Around Energy Assets
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.
A laptop is not required.
- The economics of electric power generation and how to make money trading between next-day vs. real-time electricity prices.
- How to trade around, hedge, and monetize natural gas, petroleum and electric power storage, processing, and transmission assets.
- Surprisingly effective natural gas structured transactions that lock in profits and value.
- How and why many energy/power market participants "leave money on the table" by undervaluing energy options.
- How to increase asset value and build the business case for electric batteries, renewables and other distributed energy resources.
- How to trade around storage, transportation, btu and electric generation assets.
- How to structure cross-commodity structured transactions.
- The structure of forward tolling, and reverse tolling arrangements -- and what to watch out for
- How structured financial transactions can mimic physical energy and electric power assets.
- How to structure retail energy supply obligations, RFPs, full requirements contacts and community choice aggregation deals.
- And much more…
FOUNDATIONS OF STRUCTURING
- 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…
OVERVIEW OF STRUCTURED TRANSACTIONS
TRADING AROUND ENERGY STORAGE, TRANSMISSION, AND GENERATION ASSETS
- Time Spreads (Storage)
- Locational Spreads (Transportation)
- BTU Commodity Spreads (Generation)
- 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
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
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
- How to structure profitable energy, electric power, and petroleum transactions without exposure to price risk, and how to financially turn one commodity into another.
- How to make money by buying valuable energy options from your customers and suppliers, and how your company may be missing a significant financial opportunity.
- Why "extendible" deals can be profitable, and how energy trading desks "trade around assets."
- Paying a Premium Over Market and Making a Profit
- Selling at a Discount to Market and Making a Profit
STRUCTURED POWER GENERATION TRANSACTIONS
- 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
- Financial Contracts that mimic physical assets
- Cross Commodity Energy Swaps
- Spark Spread Options
- Heat Rate Call Options
- Heat Rate Linked Power Contacts
FINANCIAL CONTRACTS THAT MIMIC PHYSICAL ASSETS
- Cross Commodity Energy Options
- Spark Spread Options
- Heat Rate Call Options
- Heat Rate Linked Power Contacts
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
- RETAIL ELECTRICITY DEAL STRUCTURES
- Intermittent Renewables
- Pricing an RFP
- Wholesale Portfolios and Bidding
- Managing Intermittent Renewable Risk
- Managing Switching/Migration Risk
- Managing "Full Requirement" Load Shape Risk
- Power Purchase Agreements
- Contractual Issues
- Mitigating Risks to Value
- Different power products/structures (7x8, 2x16)
COVID-19 Information: Please see the PGS COVID-19 policy. You can confirm each hotel's specific COVID-19 policy using the link(s) below.
The price for this comprehensive two-day seminar is $1,945 (USD).
Register online or call (843) 212-4038.
- 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. Call (843) 212-4038 for assistance.
Payment is due prior to the start of the seminar by Visa, Master Card, American Express, or corporate check. Seminar fees are charged at the time of registration unless other arrangements have been made. Checks payable to “PGS Energy Training,” 26 Teal Lane, Hilton Head Island, SC 29926. Cancellations result in a credit good for 2 years, transferable to a colleague. Substitutions may be made at any time. For more on PGS policies, contact our offices at (843) 212-4038.
This live group seminar is eligible for 12.0 CPE credits in Specialized Knowledge. 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 accepts one-half credits.
PGS is a NASBA-registered CPE sponsor and a GARP-approved CPD provider — see accreditation details.