IN-PERSON CLASSROOM SEMINARS

• What the spark spread is and how it is traded; the details of tolling arrangements; and how to correctly convert fuel and electricity prices & quantities into equivalent terms.
• What btu & heat rate swaps are, and how they can be used to diversify your firm's commodity price risk.
• What spark spread options, heat rate options and synthetic options are and how they are used to create virtual generation assets.
• Why a physical electric generating asset is equivalent to a spark call or heat rate call option, and why coal-fired and gas-fired generating units are valuable options in disguise.
• Three different ways to hedge and monetize the optionality of physical generation assets.
• The power of heat rate linked power transactions, and how to structure profitable virtual transactions without access to physical generation assets.
• How to leverage the capacity of a physical generation asset using virtual capacity created by financial contracts.
• Why physical generation assets, tolling arrangements, heat-rate-linked power deals, spark spread calls, and heat rate call options are essentially the same from a financial point of view.

• Fundamental defintions and units of conversion, the difference between operational and economic heat-rates, spark spreads and MIHRs.
• A detailed look at tolling arrangements.
• How a btu swap can convert natural gas prices to crude oil-based revenues
• How a heat rate swap can convert natural gas prices to electricity price-based revenues
• What spark spread & heat rate call options are, and why they are the same financial instrument.
• What synthetic options positions are and how they relate to the put-call parity equation.
• Why owning or controlling a gas, oil or coal-fired merchant generator is equivalent to owning a spark spread.
• Numeric Example # 1: How to use forward energy contracts hedge electric generating assets (while keeping the upside potential associated with the plant's optionality).
• Example # 2: How to use physical generation assets to back the sale of a spark call option or heat rate option.
• Example # 3: How the optionality of physical generation assets can be daily dispatched to capture volatility-based margins between the electricity and fuel markets.
• What heat-rate-linked power transactions are, and why they are so powerful.
• Examples # 4 & #5: How to hedge electricity price risk with NYMEX natural gas futures contracts and options.
• Example # 6: How to convert a natural gas over-the-counter "paper" option into a physical electricity price cap
• Example # 7: How to financially arbitrage between electricity and natural gas prices.
• Example # 8: How a heat rate call option can mimic a physical generation plant.
• Why physical generation assets, tolling arrangements, heat-rate-linked power deals, spark spread calls and heat rate call options produce the same economic payouts and are essentially the same from a deal-making point of view.

Kenneth Skinner, Ph. D. -- Vice President Integral Analytics Inc.
Dr. Skinner is a Vice President for Integral Analytics Inc. (IA), an energy conservation focused analytical planning software and consulting firm. IA is fully owned by Willdan, an industry-leading energy solutions provider and sustainability consultant. Dr. Skinner supports core energy risk management and sustainability services including electric grid optimization, integrated resource planning, design and implementation of integrated demand side projects and distributed energy resources. He is part of a team specializing in energy engineering, renewable generation, electric vehicle fleets and infrastructure, program management, microgrids, financing, data analysis, software development, and other fields. Dr. Skinner has over 20 years of energy industry experience developing energy conservation and commodity supply strategies involving portfolio risk management, hedging strategies, and least-cost supply opportunities. Having worked as an energy consultant, Dr. Skinner has significant experience in economic analysis and modeling of distributed energy projects, forward energy prices, financial derivatives, and valuation of energy assets using econometric analysis, statistical methods, optimization principles, real option valuation techniques. Dr. Skinner is widely published having served as the technology columnist for Wiley Natural Gas and Electricity Journal. He is a noted speaker on energy related topics for organizations such as AESP, IAEE, ACEEE, PLMA, IEPEC, INFORMS, Infocast, EUCI, SNL Energy and PGS Energy Training.

This one-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 8:00 AM and will finish at 4:30 PM. The program includes continental breakfast, lunch, and coffee/cookie breaks. 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.

The price for this comprehensive two-day seminar is $975 (USD).

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 (843) 212-4038.

This live group seminar is eligible for 7.0 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.