Online Courses

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

1/2 day on-demand seminar with Live Q&A
Available Now. (96 hour access)

How this online course works

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 training program  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 training program features the same material used in the popular PGS in-person classroom seminar. Register today and join the over 10,000 industry professionals who trust PGS for their energy training needs.

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  training program features the same material used in the popular PGS in-person classroom training program. Register today, and join the over 10,000 industry professionals who trust PGS with their energy training needs.

Who Should Attend

This training program 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 online training program 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 training programs are known for their clear explanations and in-depth content. Register today, and join the over 10,000 industry professionals who trust PGS with their energy training needs.

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.

On-Demand Access Time

The on-demand training presentation is available for a total of 96 hours from the time the training program is first viewed. After 96 hours, your access to the online presentation will expire. However the PDF training program slides and other materials you receive are yours to keep.

Program Pricing

 PGS online courses are known for their clear explanations and in-depth content.
 
1/2 day on-demand seminar with Live Q&A - Available Now. (96 hour access)

$395 for the first attendee, $295 for the second attendee, and $245 for each attendee thereafter

Payment and Cancellations

Payment is required prior to training program access. Payment can be made by Visa, Master Card, American Express, or corporate check. Your credit card will be charged at the time of registration unless other arrangements have been made.

Cancellations for online training programs can be made before the program access instructions are sent by PGS, and cancellations will result in a credit. For more information on PGS policies regarding administrative matters and complaint resolution, please contact our offices at (440) 853-1038.
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