IN-PERSON CLASSROOM SEMINARS

• Financial engineering and stochastic methods and the statistics of structuring
• 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 calculate risk in structured energy products.
• How to increase asset value and build the business case for electric batteries, renewables and other distributed energy resources.
• The Intrinsic and Extrinsic "Option Value" of energy & electric power assets
• How to trade around storage, transportation, btu and electric generation assets.
• How to structure cross-commodity structured transactions.
• Real Options, Insurance Value and Trading Around a Hedged Asset.
• The structure of forward tolling, and reverse tolling arrangements -- and what to watch out for
• The statistics of energy transactions, and how to value opportunities and manage risk.
• How structured financial transactions can mimic physical energy and electric power assets.
• How to structure retail energy supply obligations and community choice aggregation deals.
• And much more!

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

Kenneth Skinner, Ph. D. -- Vice President Integral Analytics Inc.
Dr. Skinner is a Vice President for Integral Analytics Inc. (IA), an energy conservation focused analytical planning software and consulting firm. IA is fully owned by Willdan, an industry-leading energy solutions provider and sustainability consultant. Dr. Skinner supports core energy risk management and sustainability services including electric grid optimization, integrated resource planning, design and implementation of integrated demand side projects and distributed energy resources. He is part of a team specializing in energy engineering, renewable generation, electric vehicle fleets and infrastructure, program management, microgrids, financing, data analysis, software development, and other fields. Dr. Skinner has over 20 years of energy industry experience developing energy conservation and commodity supply strategies involving portfolio risk management, hedging strategies, and least-cost supply opportunities. Having worked as an energy consultant, Dr. Skinner has significant experience in economic analysis and modeling of distributed energy projects, forward energy prices, financial derivatives, and valuation of energy assets using econometric analysis, statistical methods, optimization principles, real option valuation techniques. Dr. Skinner is widely published having served as the technology columnist for Wiley Natural Gas and Electricity Journal. He 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.

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 4:30 PM on the first and second day. On the third day, the seminar will resume at 8:00 AM and will finish at 12:00 PM. The program includes continental breakfast, lunch on the first and second day, and breakfast on the third day. Attendees also receive a professionally produced seminar manual that can serve as a valuable office reference. Dress is business casual for all seminars.

COVID 19 Information: Please click here for the PGS Covid-19 policy. You can confirm each hotel's specific COVID 19 policy using the link(s) provided below.

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

Payment is due prior to the start of the seminar by Visa, Master Card, American Express, 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 will result in a credit that is good for 2 years which can be transferred to a colleague. Substitutions may be made at any time. For more information on PGS policies regarding administrative matters and complaint resolution, please contact our offices at (440) 853-1038.

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.