IN-PERSON CLASSROOM SEMINARS

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Introduction to Heat Rates, Spark Spreads, Generation Optionality, Tolling & Heat Rate Linked Power Transactions


A Half-Day Classroom Seminar (CPE Approved)

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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

What You Will Learn
  • 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 Also Learn
  • 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)
Seminar Agenda
  • Please see above.
Your Instructor
John Adamiak
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.
Hotel and Seminar Information
This half-day seminar will be held at the hotel listed below or can be conducted on-site at your facilities. The seminar will start promptly each day at 1:00 PM and will finish at 5:00 PM. Attendees also receive a professionally produced seminar manual that can serve as a valuable office reference. Dress is 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.
Registration Fee and Discounts
The price for this comprehensive two-day seminar is $595 (USD).
Register online or Call (440) 853-1038.
  • 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.
    If you want attendees to pay with separate credit cards or have other questions, please call (440) 853-1038 for assistance.
Payments and Cancellations
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.
CPE Credits in Specialized Knowledge

This live group seminar is eligible for 4.0 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.

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 submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. CPAs interested in attending any seminars should contact our offices for details on CPE credits granted and any prerequisite requirements.
PGS Energy Training is registered with GARP as an Approved Provider of Continuing Professional Development (CPD) credits. If you are a Certified FRM or ERP, please record this activity in your Credit Tracker at http://www.garp.org/cpd. 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/cpd.
Who Should Attend

Among those who will benefit from this seminar include energy and electric power executives; electric generation owners and operators; 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 electric utilities; power marketers; banks & financial houses; electric generators; coal and natural gas producers, accounting, consulting & law firms; municipal utilities; and government regulators.

Prerequisites and Advance Preparation

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

Why Choose PGS?

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.

Program Level & Delivery Method
Basic level. This fundamental course begins with basic material and then proceeds to the intermediate level. Delivery method is "Group-Live.”