Learn ''how it all fits together.'' This in-depth, ambitious and
fast-paced program provides a comprehensive and clear explanation of the
structure, function, and current status of today's U. S. electric power
industry and the many industry topics listed below, but it also adds
material to address the fundamentals of power marketing and how
competitive physical, financial and heat rate power transactions are
designed and executed at the wholesale and end-user retail levels--both
within and outside of an ISO footprint. The basics of heat rates, spark
spreads, tolling deals, generation optionality, and heat-rate-linked
power transactions are also addressed.
Before addressing power
marketing and transactions, this fast-paced seminar provides a
comprehensive and clear explanation of the structure, function, and
current status of
today's U. S. electric power industry; who the
industry players are, and why it is so difficult to develop new projects
and get things done; the fundamentals of ISO day-ahead auctions, LMP,
FTRs, CRRs, LSEs, SCs, QSEs and forward capacity markets; the basics of
utility cost-of-service ratemaking, competitive customer choice retail
markets, heat rates, electricity storage, solar, wind, distributed
energy resources (''DER''), demand response and demand side management
(''DSM''); and the reliability and economic ''Duck Curve'' type of
issues raised by the integration of renewable energy, DER, and
electricity storage resources into the existing power grid.
Each
part of this complex industry will be explained piece-by-piece, and then
the pieces will be integrated so that attendees will leave with an
understanding of ''how it all fits together.''
What You Will Learn
- The structure and function of the electric service system, its terminology and units, and the properties of electricity.
- How the North American power grid is structured, how it operates and what the different types of electric generation are.
- How control areas, balancing authorities, spinning reserves, AGC and security constrained environmental economic dispatch work.
- Who the key players in the industry are, and why the industry is so difficult to restructure.
- How
cost-of-service utility ratemaking and open access deregulated markets
work, and why open access retail electricity markets are finally
developing in states that permit them.
- What ISOs, RTOs, ITCs and merchant transmission companies are, and how they operate.
- What
the smart grid, demand side management (''DSM''), distributed energy
resources (''DER'') and demand response (''DR'') are, and how these
forms of ''virtual generation'' and renewable energy resources are
disrupting the U.S. power industry.
- The opportunities and challenges associated with wind, solar and other renewables.
- How ISO Day-Ahead energy auction markets operate in PJM, New York, Texas, California, MISO and other ISO areas;
- What
locational marginal pricing (LMP) is and why it is important; how
Day-Ahead and Real Time LMP is applied in the ISO markets, and why FTRs,
TCCs, CRRs, TCRs , virtual bids (''Incs & Decs'') and convergence bidding are important to understand.
- What
capacity markets and resource adequacy are, and how this important
issue relates to demand response, DER and demand side management and
affects the integration of wind, solar and other renewables into the
existing power grid.
- An overview of Utility scale solar, rooftop solar, and net metering, and wind and other renewable energy resources.
- What
the Western Grid ''Energy Imbalance Market'' is, and why it is
important to understand Community Choice Aggregators, the California
''Duck Curve'' and ''FRAC-MOO.''
You Will Also Learn
- The terminology, concepts and mechanics of physical, financial & heat rate power transactions.
- How
to transport physical power using OASIS and NERC tags, and how and why
companies often move physical power financially causing it to 'jump'
between regions.
- The difference between physical, scheduled, and contract path power flows.
- What ''sellers choice'' is, and how transaction ''daisy chains'' form at virtual trading hubs.
- How
and why physical power transactions are often ''booked-out'' and
settled in cash, and why bilateral transactions in ISO markets are
primarily financial.
- How
to execute wholesale and retail power marketing transactions both
within and outside of an ISO area- including commonly used contract
language and NERC tags; how to manage LMP, basis, delivery, volumetric,
intermittency and operational risks; and why NITS, TAC, UCAP, resource
adequacy and ancillary service charges need to be included.
- How
ICE & CME cash settled futures contacts, commodity swaps and
FTRs/CRRs/TCCs can be used to hedge electricity price, basis and LMP
spread risk.
- The difference between operating, economic, market
and negotiated heat rates, and what the terms spark spread, dark spread
and bark spread mean.
- What ''tolling deals'' are, and how the powerful technique of heat-rate-linked power transactions can be used.
- How
a natural gas-fired generating plant is a call option on the spark
spread, what ''optionality'' means, and a simple rule to use to optimize
the economics of a natural gas or coal-fired merchant generating plant.
Who Should Attend this Seminar
Among
those who will benefit from this seminar include energy and electric
power executives; attorneys; government regulators; traders &
trading support staff; marketing, sales, purchasing & risk
management personnel; accountants & auditors; plant operators;
engineers; and corporate planners. Types of companies that typically
attend this program include energy producers and marketers; utilities;
banks & financial houses; industrial companies; accounting,
consulting & law firms; municipal utilities; government regulators
and electric generators.
Prerequisites and Advance PreparationThis fundamental level group live seminar has no prerequisites. No advance preparation is required before the seminar.
Program LevelBasic level. This fundamental course begins with basic material and then proceeds to the intermediate level.
Delivery MethodGroup-live.
Each Class is Limited to First 20 Registrants
Your Instructor
John Adamiak
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.
Seminar Agenda
DAY 1- The properties and terminology of electricity - current, power, var, voltage, etc.
- An overview of the electric service system, and how it works.
- The structure and function of the North American power grid.
- How control areas & balancing authorities operate, what spinning reserves are, and how the lights are kept on.
- The pros and cons of different sources of electric generation ( coal, natural gas, nuclear, renewables ), and how they work.
- How cost-of-service ratemaking and retail open access markets work
- Why open access retail electricity markets are finally developing in states that permit them.
- Who the various industry participants are and their roles.
- Why restructuring today's power markets is such a complicated task.
- The difference between ISOs, RTOs, ITCs and merchant transmission companies.
- Why it is so difficult to build new high voltage power lines.
- How ISO Day-Ahead energy energy auction markets operate in PJM, New York, Texas, California, MISO and other ISO areas.
- What locational marginal pricing (LMP) is, and why it is important.
- How Day-Ahead and Real Time LMP applied and managed in the ISO markets.
- Virtual bids (''Incs & Decs'') and convergence bidding and what their purpose is.
- Financial transmission rights (''FTRs''), congestion revenue rights (''CRRs''), TCCs, TCRs and TRs.
- Forward capacity markets, resource adequacy and generation reserve margins.
DAY 2- Wind, utility scale solar, rooftop solar, community solar, and the net metering debate.
- The opportunities, challenges and risks associated with wind, solar and other renewables.
- The
smart grid, demand side management (''DSM''), distributed energy
resources (''DER'') and demand response (''DR''), and why these assets
are forms of ''virtual'' electric generation..
- How wind, solar, DER, DSM, demand response and conservation are disrupting the U.S. power industry
- The Western Grid ''Energy Imbalance Market,'' The California ''Duck Curve'' and California's ''FRAC-MOO.''
- The fundamentals of bilateral power transactions-units, concepts and terminology.
- Common contract language used for bilateral power transactions.
- Point-to-Point Firm, Network Firm, and Non-Firm transmission service, and how to buy transmission contracts on OASIS.
- How to transport physical power using purchased transmission service and the purpose of NERC tags.
- What ''seller's choice'' and ''buyer's choice'' are, and how forward ''daisy chains'' form at virtual trading hubs.
- The
difference between physical, scheduled and contract path power flows,
and why power transactions have nothing to do with the flow of
electrons.
- How trading floors and futures exchanges help commercial players manage risk.
- How and why physical power transactions are often ''booked-out'' and settled in cash.
- How any why companies often move physical power financially causing it to 'jump' between regions.
- An
introduction to electricity cash settled futures, swaps, and CFDs, and
how these products relate to ISO administered financial transmission
rights (FTRs), congestion revenue rights (CRRs) and TCCs.
- Detailed
examples of how to execute wholesale and retail power marketing
transactions both within and outside of an ISO area-- including commonly
used contract language & NERC tags; how to manage price, LMP,
basis, delivery, volumetric, intermittency and operational risks; and
the importance of including NITS, TAC, UCAP, resource adequacy and
ancillary service charges.
- The difference between operating,
economic, market and negotiated heat rates, and what the terms spark
spread, dark spread and bark spread mean.
- What ''tolling deals'' are, and how the powerful technique of heat-rate-linked power transactions can be used.
- How
a natural gas-fired generating plant is a call option on the spark
spread, what ''optionality'' means, and a simple rule to use to optimize
the economics of a natural gas or coal -fired merchant generating
Hotel and Seminar Information
This two-day seminar will be held at the hotels listed below. The seminar will start promptly at 8:00 AM and will finish at 5:00 PM on the first day. On the second day, the seminar will resume at 8:00 AM and will finish at 3:00 PM.
The program includes continental breakfast, lunch, and coffee breaks on
the first day. On the second day a continental breakfast, snack and
coffee breaks are included. Attendees also receive a professionally
produced seminar manual that can serve as a valuable office reference.
Dress is casual for all seminars.
Venue
Homewood Suites by Hilton Houston Near the Galleria2950 Sage Road
Houston, TX 77056
Telephone: (713) 439-1305
View Seminar Location WebsiteBecause of the diversity of hotels found in the area, we will not be holding a block of sleeping rooms with one particular hotel.
