Serving the energy industry for over 30 years
By - Jon Brown

Energy Transaction & Trading Fundamentals
For Bi-Lateral, OTC, Exchange and Wholesale Electricity Market Transactions
May 4-5, 2020 | Orlando, FL

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Overview

If this event is of interest you may also be interested in this related event

Intermediate Energy Trading, Hedging, Portfolio & Risk Management, May 5-6, 2020 in Orlando, FL

The landscape of power generation and delivery is tremendously vaster and more complex than it was a generation ago.  Long gone, for the most part, are islanded utilities that command the full-scale infrastructure to generate, transmit and distribute electricity without linkage and access to the larger power universe.  Now, most utilities and power providers must engage in sophisticated energy contracting and trading transactions to serve their load efficiently, profitably and in a balanced fashion on a moment-to-moment basis.  Whether through 1) bi-lateral contracts, 2) over-the-counter (OTC) trading, 3) exchange trading or 4) wholesale electricity market transactions, utilities and power organizations must:

  • Be familiar with the array of options available to them
  • Understand how to properly deploy these different instruments
  • Manage the financial and operational processes with these transactions, and
  • Optimize the risk profile of their organizations to avoid catastrophic outcomes

This course will provide the fundamental knowledge necessary to understand these energy transaction and trading principles, how they relate to each other and what is necessary to optimize their functions.  It will start with an overview of power system structures, price drivers and regulatory oversight.  The program will then look at the types of instruments that can be used in bilateral, over-the-counter, exchange-based and wholesale electricity market transactions.  A review of hedging, with the goal of minimizing risk, will explore the strategy and tactics of these programs.  Finally, it will devote attention to risk monitoring, reporting and management oversight with an eye toward anticipating program exposures and limiting breakdowns.

Learning Outcomes

  • Review power system elements in a transactional context
  • Identify the regulatory and oversight bodies and their roles relating to transactions and trading
  • Assess multiple energy markets and transaction platforms
  • Evaluate the price drivers associated with power transactions
  • Discuss energy transacting, trading and hedging elements
  • Examine risk oversight, measurement and monitoring concepts
  • Review case studies of trading and transacting approaches that failed
  • Assess trading and transacting best practices
  • Build a simple, coherent risk management model

Credits

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EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.1 CEUs for this event.

Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 12.0
There is no prerequisite for this Course.
Program Level: Beginner/Intermediate
Delivery Methood: Group-Live
Advanced Preperation: None

CpeEUCI 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.

 

Instructional Methods  

This program will use PowerPoint Presentations and group discussions. 

Requirements For A Successful Completion Of Program  

Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit. 

Agenda

Monday, May 4, 2020

7:45 – 8:15 a.m. :: Registration and Continental Breakfast

8:15 – 8:30 a.m. :: Overview and Introductions


8:30 – 9:45 a.m. :: Survey of Power System Elements in a Transactional Context

  • Laying the groundwork of electricity, terms/definitions, and units
  • Power system components
    • Generation
    • Transmission
    • Distribution
    • Loads
  • Electricity tranches in energy markets
    • Capacity
    • Energy (+ fuel)
    • Supplemental system needs
      • Ancillary and reserves services
      • Congestion
    • Temporal dynamics
      • Monthly, day ahead and daily
      • Intra-day
    • Impact of variable and demand side resources on dispatch of the electric commodity
      • Renewable
      • Fuels
      • Emissions
      • Demand response, energy efficiency and load management products

9:45 –10:40 a.m. :: Industry Structure and Regulatory Oversight

  • Types of utilities
    • Vertically integrated
      • IOUs
      • Munis
      • CoOps
    • Local distribution utilities
    • Independent power producers (IPPs)
    • Retail electricity providers (REPs)
    • Regional transmission (RTOs) and independent system operators (ISOs)
  • Oversight bodies and their roles, especially relating to transactions and trading
    • Federal Energy Regulatory Commission (FERC)
      • Anti-market manipulation authority
      • Reporting elements
        • EQR
        • Standards of Conduct
      • Commodity Futures Trading Commission
      • North American Electric Reliability Corporation (NERC)
      • Nuclear Regulatory Commission (NRC)
      • State Public Service Commissions

10:40 – 11:00 a.m. :: Morning Break


11:00 a.m. – 12:30 p.m. :: Energy Markets and Transaction Platforms

  • Transaction premise — wholesale electricity price volatility
  • Transaction platforms and characteristics
    • Bi-lateral contracts
    • Over-the-counter (OTC) trades
    • Exchange trades
    • ISOs/RTOs
  • Types of energy markets
    • Physical vs. financial
    • Forward vs. real time
  • Liquidity
  • Products
    • On-peak
    • Off-peak
    • Wrap
  • Firmness viewed across the span of the marketplace
    • Firm
    • System firm
    • Unit firm
    • LD
    • Non-firm
  • Cost of transmission congestion

12:30 – 1:30 p.m. :: Group Luncheon


1:30 – 2:00 p.m. :: Overview of Price Drivers

  • Heat rates and impact on dispatch stack and electricity prices
  • Renewable offer pricing and impact on electricity prices
  • Net Load impacts on dispatch clearing price
  • Natural gas fuel price drivers
  • Coal fuel price drivers

2:00 – 3:30 p.m. :: Energy Transacting, Trading and Hedging Elements

  • Energy transacting lifecycle
  • Correlating physical vs. financial markets and transactions
  • Energy transaction parties and risk profiles
    • Price taker
    • Asset optimizer
    • Proprietary trader
  • Hedging — trading vs speculating
  • Examining specific transactional elements
    • Price volatility
    • Counterparties
    • Contracts
  • Establishing the value portal
    • Real time vs. forward markets
    • Forward price curves
  • Differentiating common financial hedging instruments
    • Futures contracts
    • Swaps contracts
    • Options (calls and puts)

3:30 – 3:45 p.m. :: Afternoon Break


3:45 – 5:15 p.m. :: Risk Oversight, Measurement and Monitoring Concepts

  • Market risk exposures
    • Price
    • Volatility
    • Correlation
  • Mark-to-market, P/L position management
    • The mark-to-market process
      • Step-by-step calculations for futures
      • Step-by-step calculations of gas and power swaps
    • Bid-ask spreads in gas and power transactions
    • Margin and collateral calculations
    • Value of transparency in public utility hedging programs
    • Credit risk exposures
      • Current exposure
      • Collateral and collateral-at-risk
      • Liquidity planning
      • Margin
        • Initial
        • Maintenance
        • Variation
      • Case study — potential future exposure
    • Limits
      • Position
      • Transaction
      • Risk
    • Measuring and reporting risk exposures
      • Different risk simulation techniques
        • Historical
        • Parametric
        • Monte Carlo
      • Advanced “at-risk” metrics
      • Pros and cons of different risk metrics
      • Case study — applying different risk quantification techniques
      • Identifying the most appropriate risk metric for an organization

5:15 p.m. :: Day One Program Adjournment


Tuesday, May 5, 2020

7:45 – 8:15 a.m. :: Continental Breakfast

8:15 – 8:30 a.m. :: Review of Previous Day Topics


8:30 – 10:20 a.m. :: Hedge Strategy Design for Utilities and Others Transacting in Power

  • Hedging philosophy and policy
  • Key dimensions in hedging
    • Market
    • Credit
    • Liquidity
    • Accounting
    • Regret
  • How should the ratepayer’s risk appetite influence the hedging decisions?
  • Balancing ‘potential’ and ‘regret’ in hedge strategy design
  • Common hedging mistakes
  • Case study — alternative hedging programs
    • Pros and Cons

10:20 – 10:40 a.m. :: Morning Break


10:40 – 11:45 a.m. :: Weaving Together a Coherent Risk Management Approach

  • Chart the organizational risk mission
  • Obtain assurances of proper…
    • Risk functions
    • Alignment
    • Feedback loops
    • Compliance
    • Accountability
  • Formation of front, middle and back offices
    • Assigning roles and delegating responsibilities
    • Assembling best practices
  • Vet the processes and systems
  • “Go live”
  • Establish and follow performance criteria
  • Maintain system integrity

11:45 a.m. :: Course Adjournment

Instructors

Scott Wrigglesworth, Director of Analytics and Strategy, Ascend Analytics

Scott Wrigglesworth is Director of Analytics and Strategy with Ascend Analytics. Before joining the company, he spent 17 years with Dayton Power and Light and the AES Corporation.  There he focused on practical solutions in energy analytics, actionable reporting, margin modeling and portfolio optimization.   In that role, Mr. Wrigglesworth provided analytic expertise for portfolio optimization, planning, and risk management activities. These activities included merchant generation optimization, fuel procurement, wholesale hedging, retail energy, load auctions, rate case preparation, asset valuation, and commercial budget development.  Mr. Wrigglesworth teaches a course in Energy Markets at the University of Dayton from where he also earned his MBA. He holds a BA in Global Economics and International Business from Cedarville University.


Michael Ballow, Director of Analytics and Strategy, Ascend Analytics

Michael Ballow is Director of Analytics and Strategy with Ascend Analytics. He has 37 years of diversified risk management experience in energy, financial, and commodity markets, and 22 years of direct portfolio risk management in electric and gas utilities, including wholesale electric and gas, and retail gas and electric marketing.  Before he recently joined Ascend Analytics staff, Mr. Ballow worked in concert for 12 years as a user of its products and services while at Dayton Power and Light (DP&L), where he served as Director of Portfolio Analytics and Risk Analytics.  Prior to joining DP&L, he was Vice President of Portfolio Management at Cinergy where he managed the utility’s portfolio in Ohio, Kentucky, and Indiana. He previously was in senior risk management roles at the Tennessee Valley Authority and Public Service of New Mexico. Prior to his experience in the energy sector, Mr Ballow was in fixed income brokerage, asset management, and interest rate hedging.

Location

Renaissance Orlando Hotel-Airport

5445 Forbes Pl

Orlando, FL 32812

Reserve your room:

please call 1-407-240-1000

Room Block Reserved For:

Nights of May 3 – 5, 2020

Room rate through EUCI:

$165.00 single or double plus applicable taxes
Make your reservations prior to April 10, 2020.

Register

Please Note: Confirmed speakers do not need to register and are encouraged to participate in all sessions of the event. If you are a speaker and have any questions please contact our offices at 1.303.770.8800

EventEarly Bird Before
Friday, April 17, 2020
Standard RateAttendees
Energy Transaction & Trading FundamentalsUS $ 1295.00 US $ 1495.00

This event has the following related events:

Intermediate Energy Trading, Hedging, Portfolio & Risk ManagementUS $ 1295.00 US $ 1495.00

Take advantage of these discounts!

  • Attend the Course and Intermediate Energy Trading, Hedging, Portfolio & Risk Management and pay US $ 2,395.00 per attendee (save US $ 195.00 each)

Register 3 Send 4th Free!

Any organization wishing to send multiple attendees to these conferences may send 1 FREE for every 3 delegates registered. Please note that all registrations must be made at the same time to qualify.

Cancellation Policy

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before April 03, 2020 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

Summary
Event
Energy Transaction & Trading Fundamentals
Location
Renaissance Orlando Hotel-Airport, 5445 Forbes Pl,Orlando,FL-32812
Starting on
May 4, 2020
Ending on
May 5, 2020
This course will provide the fundamental knowledge necessary to understand energy trading principles and how they relate to each other
Offer Price
USD 1295.00

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