Online Seminars

Introduction to Heat Rates, Spark Spreads, Tolling Deals, PPAs, and Heat Rate Linked Power Transactions

On-Demand Recording ‐ Available Now! (72 hour access)

How These Online Seminars Work

This seminar begins by explaining operating heat rates, economic heat rates, spark spreads, market implied heat rates, negotiated heat rates, and how to convert natural gas/electricty prices and quantities into equivalent units. The fundamentals of tolling deals and power purchase agreements ("PPAs") are then addressed.

After a 1/2 hour break the seminar will continue and  introduce the powerful technique of heat-rate-linked power transactions which can be used in many ways. For example, heat rate structres can be used to sell solar and wind power under PPAs; financially hedge electricity price risk with liquid natural gas financial products; mimic physical generating assets; and potentially structure profitable arbitrage transactions between the natural gas and electric power markets.

This proven online seminar features the same material used in the popular PGS in-person classroom training program. Register today and join the over 10,000 energy professionals who have already benefited from an in-depth PGS seminar.

What You Will Learn

  1. What operating and market implied 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 required to serve a 50 MW on-peak power deal?)
  5. What spark spreads and dark spreads are.
  6. The basics of a spark spread trade, and why merchant generating assets are call options on the spot spark spread.
  7.  What the difference is between a tolling arrangement, power purchase agreement, and heat rate deal.
  8. What forward and reverse "tolling deals" are, and what can go wrong.
  9. How heat-rate-linked power transactions can hedge a generator's cross-commodity risk.
  10. How heat rate deals can be combined with natural gas futures, options, and swaps to manage electricity risk and structure profitable transactions.
  11. How a heat-rate-linked power transaction and henry Hub natural gas futures contracts can be combined to hedge electricity price risk. (Example #1)
  12. How a  heat-rate-linked power transaction  can be used to sell solar electricity tied to natural gas prices under a multi-year power purchase agreement, and how to financially convert this natural gas determined revenue stream to a fixed sales price for project financing purposes. (Example #2)
  13.  How a heat rate transaction and natural gas financial option can be combined to offer a customer a price cap on physical electricity, thereby virtually mimicking one of the benefits of owning a physical electric generation asset. (Example #3).

Seminar Agenda

This proven online seminar features the same material used in the popular PGS in-person classroom training program. Register today and join the over 10,000 energy professionals who have already benefited from an in-depth PGS seminar.

Who Should Attend this Seminar

This seminar will benefit those organizations and professionals interested in learning the relationship between coal, natural gas and electric power prices and how heat rate transactions can be used to sell power, manage electricity risk, and structure profitable transactions.Electric generators, power marketers,energy producers, utilities, banks, law firms, municipals, ISOs, 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.

Prerequisites and Advance Preparation

This fundamental level group live seminar has no prerequisites, but a basic understanding of electricity and natural gas units (MWhs, MMBtus) and futures hedging will be helpful.

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.

Instructor

John Adamiak
President PGS Energy

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.

Seminar Price

$295 for the first attendee, $149 for the second attendee, and $75 for each attendee thereafter
for either the live or on-demand version of this seminar.

Payment and Cancellations

Payment is required prior to seminar attendance. Payment can be made by Visa, Master Card, or American Express. Seminar purchases will be charged to your credit card at the time of registration unless other arrangements have been made.

Live seminar registrations can be cancelled for a full refund up to 5:00 PM (U.S. Eastern Time) two (2) business days before the scheduled seminar date. For example if the live seminar is on Thursday then the cancellation would need to occur by 5:00 PM Eastern Time on the Tuesday before the seminar. No refunds will be made thereafter, but a streamed recording of the live seminar can be provided. Attendee substitutions may be made at any time. 

Due to the nature of a recorded event, no refunds can be made for on-demand recorded seminars. For more information on PGS policies regarding administrative matters and complaint resolution, please contact our offices at (440) 853-1038.

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