How This Seminar Works
	1. This live seminar consists of two 90-minute, high quality conference calls combined with your choice of printed or Internet-posted slides. 2. The day before the seminar, you will be emailed a toll-free telephone number to access the audio portion of the live seminar session. The seminar's slides will be attached to the email as a PDF file, and a Website link will be provided so you can view the slides on the Internet if you prefer. Phone calls originating from outside of the USA and Canada will be a toll call billed to you by your telephone service provider. 3. A few minutes before the seminar is to begin, you will call the toll-free phone number to access the audio portion of the seminar. You can follow the visual portion of the presentation by using the printed PDF files or by viewing the Internet-posted slides on your computer screen. 4. A professional moderator will manage the seminar teleconference and there will be ample opportunity to ask questions. All participants will hear both the question and the instructor's response. After the seminar is over, further questions can be directed to the instructor via email.

This seminar addresses the fundamentals of heat rates, spark spreads, tolling arrangements, electric generation optionality and the basics of hedging gas-fired power plants.

You will also learn how heat-rate-linked power transactions can financially hedge electricity price risk, and how this technique is used to structure profitable arbitrage transactions between the natural gas and electric power markets. Click Here to Register

What You will Learn (Session #1 from 1:00 pm to 2:30 pm)

	What heat rates are and how they are expressed.

	The difference between a generating plant's operating heat rate and its economic or conversion heat rate.

	How to correctly convert coal, oil and natural gas prices to equivalent electric power prices.

	How to correctly calculate fuel quantities. (For example, how many MMBtus per day of natural gas is needed to serve a 50 MW on-peak power deal?)

	What the spark spread is and what the difference is between spot and forward spark spreads.

	How to define the spark spread as both a product price spread and as a market implied heat rate.
	The basics of spread trading using a spark spread example.
	The structure of forward tolling, reverse tolling and power purchase arrangements -- and what to watch out for.
	How tolling arrangements can be used to sell natural gas by "wire".

What You Will Learn (Session #2 from 3:00 pm to 4:30 pm)

	Why and how coal and natural gas fired generating units are valuable call options on the spark spread.
	How to hedge electric generation assets while keeping the upside income potential that results from the asset's optionality. ( A detailed example.)
	What heat-rate-linked power transactions are, and why they are important.
	How heat-rate-linked power transactions can be used to hedge electricity price risk. (Mini Case Study)
	How heat-rate-linked power transactions can be used to arbitrage natural gas/electricity price discrepencies without access to physical generation facilities. (Mini Case Study)

Your Instructor

John Adamiak is President and Founder of PGS Energy Training and is 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 12 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.

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 the basics of power generation economics. Energy producers, utilities, banks, law firms, municipals, ISOs, power marketers, 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.

Why Choose PGS?

Save time and travel expenses while you increase your knowledge. PGS seminars are known for their clear explanations and in-depth content. Over 3,000 energy and financial professionals have already attended PGS Energy Training's proven courses. View Past Seminar Attendees

Prerequisites

This fundamental level, group live seminar has no prerequisites. No advance preparation is required before the seminar.

Registration Fee