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

Intermediate Energy Trading, Hedging, Portfolio & Risk Management
October 20-21, 2020 | Online :: Central Time

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Overview

This is an Online Course. In light of COVID-19 conditions, for the health and safety of our speakers and attendees, EUCI events are now conducted exclusively online.

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

Energy Transaction & Trading Fundamentals, October , 2020

This course is geared toward those who want to build on a base-line knowledge of energy markets transacting, power trading and hedging. It will cover market dynamics and the difference between transacting in traditional bilateral markets, OTC and exchange energy markets as well as wholesale electricity (ISO) markets. The contents will examine the different market players and their motives, as well as the difference between hedging and speculation. The course will also address various instruments and the implications of credit and collateral on prudent decision-making.

The content explains the various tools used to control the associated risks. It also details how these contracts work, how and when they should be used, and how they are priced. Case examples and problem-solving illustrations optimized for power and natural gas trading are used throughout the course to enhance the understanding of the material.  Finally, it will identify and illustrate best practices associated with the sound measurement of uncertainty and building solid risk metrics for portfolio management and risk management through optimal hedging and solid hedging program design.

Learning Outcomes 

  • Review portfolio management in traditional utility/balancing area, OTC, Exchange and ISO-based market transactions
  • Assess market distinctions and price driver dynamics
  • Discuss relationships between power market trading and hedging
  • Examine market, credit and counterparty risk management best practices
  • Evaluate energy trading compliance programs and their application in the current regulatory environment
  • Demonstrate meaningful uncertainty framework for developing utility and power portfolio hedging programs
  • Describe and illustrate simulation analysis and risk metrics for utilities and power trading organizations
  • Build, design, develop and implement a hedge program

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.

Instructional Methods  

This program will use PowerPoint presentations, case studies 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

Tuesday, October 20, 2020 Central Time

12:45 – 1:00 p.m. :: Login and Welcome

1:00 – 1:15 p.m. :: Overview and Introductions


1:15 – 5:00 p.m. :: Program

Energy Markets Advanced Trading & Hedging

  • Physical forward contracts
  • Futures
  • Swaps
  • Case study — hedging with futures vs swaps
  • Comparative analysis of use of instruments in hedging strategies
  • Recognizing market players and their objectives
  • Basis swaps
  • Hedging natural gas exposures with futures and basis swaps
  • Congestion hedge instruments
  • Financial transmission rights (FTRs) and congestion revenue rights (CRRs)
  • FTR obligations and options
  • Case studies of hedging strategies and potential manipulation in gas and power markets
  • Options
  • Calls and puts
  • What drives the value of option premiums?
  • Options as insurance
  • Are options a cost or an investment?
  • Option strategies: Collars
  • Why most utilities should have options as part of their hedging program
  • Case study — best instruments for different portfolios

Q&A and Discussion Forum


Wednesday, October 21, 2020 Central Time

8:45 – 9:00 a.m. :: Sign-In


9:00 a.m – 12:30 p.m. :: Program

Market Risk Management

  • Market risk measurement and reporting
  • Distinction and applications of
    • Mark-to-Market (MtM)
    • Value at Risk (VaR)
    • Cost at Risk (CaR)
    • Rates at Risk (RaR)
    • Gross Margin at Risk (GMaR)
  • Sensitivity analysis and stress tests
  • Position management for portfolios with assets, physical contracts and financial instruments

Counterparty Risk Management

  • Counterparty risk management and internal rating systems
  • Counterparty risk limits
  • Collateral and netting
  • Current and potential counterparty exposures
  • Counterparty risk policies

Simulation Analysis and Risk Metrics for Utilities

  • Risk metrics and simulation
  • Introduction to distributions
  • Best practices in management of weather, load and price risk for utilities
  • Volumetric risk and hedging
    • Supply and demand risk
  • The cost of ignoring volume uncertainty in hedge programs
    • Lessons learned from utility hedging debacles
  • Designing optimal hedge programs for the entire energy portfolio
    • Retail load
    • Unit characteristics
    • Forced outages

12:30 – 1:15 p.m. :: Lunch Break


1:15 – 4:45 p.m. :: Program

Meaningful Uncertainty Framework to Develop Utility Hedging Programs

  • How to produce realistic weather, load, gas and price scenarios
  • Creating a portfolio view of physical and financial exposures
  • Integrating price and volume risk modeling in a coherent framework
  • Modeling expected costs and revenues
  • How to assess and visualize market and weather risk factors on cash flows
  •  

In-Depth Hedge Program Design and Implementation

  • Hedging tactics vs. hedging strategy
  • A roadmap to implementing an effective hedging strategy
  • Understanding and quantifying risk profile and appetite
  • Defining hedge strategy objectives, linkage to performance objectives
  • Building hedge strategy alternatives — different types of hedge decisions
    • Programmatic (dollar cost averaging) hedges
    • Defensive (risk limits) hedges
    • Contingent hedges (managing foregone opportunities)
  • Hedge strategy design and scenario analysis
  • Case Study — an iterative approach to evaluating the effectiveness of a hedge strategy
  • Implementing a hedge strategy
    • Tactical planning
    • Ongoing monitoring and reporting

Case Studies with Energy Portfolios

  • Market vs contracted cost
  • Dispatch to load vs dispatch to price
  • Integrated portfolio views
    • Purchases and sales positions
    • Distinct load and generation positions
  • Integrated utility value vs portfolio component value
  • Active vs. passive portfolio management
  • Case study — understanding the revenue-at-risk of different portfolios
  • Case study – considering the value of a battery with a wind asset
  • Case study — execution of a hedge strategy under different market conditions

4:45 – 5:00 pm :: Q&A and Discussion Forum

5:00 p.m. :: Program 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.

Online Delivery

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

  • You will receive a meeting invitation will include a link to join the meeting.
  • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
    • You will need to join the appropriate meeting at the appropriate time. 
  • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
  • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

Register

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event

Event Standard RateAttendees
Intermediate Energy Trading, Hedging, Portfolio & Risk Management - (single connection)US $ 1295.00
Pack of 5 connectionsUS $ 5,180.00
Pack of 10 ConnectionsUS $ 9,065.00
Pack of 20 ConnectionsUS $ 15,540.00
Call us at 303.770.8800 if you have any specific questions on the volume discounts
* all other discounts do not apply to license packs

This event has the following related events:

Energy Transaction & Trading FundamentalsUS $ 1295.00
Pack of 5 connectionsUS $ 5,180.00
Pack of 10 ConnectionsUS $ 9,065.00
Pack of 20 ConnectionsUS $ 15,540.00

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Take advantage of these discounts!

  • Attend the Course and Energy Transaction & Trading Fundamentals and pay US $ 2,395.00 per attendee (save US $ 195.00 each)

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 September 18, 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

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