This in-depth two-day program provides a comprehensive and clear explanation of the structure, function, and current status of today's U. S. electric power industry; the fundamentals of ISO day-ahead auctions, LMP, FTRs and capacity markets; the operational and economic issues raised by the integration of solar, wind, distributed generation, and demand response power resources into the existing Power Grid; how to market and trade physical and financial electricity both within and outside an ISO footprint; and how heat-rate-linked, spark spread, and tolling deals are structured within and outside of Texas. Each part of this complex industry will be explained in a step-by-step fashion and then all the pieces will be integrated using several clear cut examples so that attendees will leave with an understanding of "how it all fits together."

The seminar also addresses the basics of the electricity futures contracts which trade on the Intercontinental ("ICE")and Chicago Mercantile ("CME") Exchanges.

What You Will Learn

1. The structure and function of the electric service system, its terminology and units, and the properties of electricity.
2. How the North American power grid is structured and how it operates; how the major sources of electric generation work ( coal, natural gas, nuclear, renewables ) and the issues they face; how control areas, spinning reserves, AGC and economic dispatch works.
3. Who the key players in the industry are, and why the industry is so difficult to restructure.
4. The differences between cost-of-service regulation, open access markets, ISOs, transcos, ITCs, RTOs, and ICTs.
5. What the "smart grid" is, a summary of the different business models being tested, a discussion of the key issues and and how the smart grid is likely to develop.
6. The major issues facing wind energy, solar and other renewables and how these generation sources relate to the proposed buildout of the backbone power grid.
7. How ISO Day-Ahead auction markets operate in PJM, New York, Texas, California and other markets; what locational marginal pricing (LMP) is, and why it is important; how LMP is applied in the ISO markets, and why FTRs, TCCs, CRRs, TLRs, RPM and forward capacity markets are important concepts to understand. (The seminars presented at the Houston and California locations will discuss the Texas and California/Western Power markets respectively. Philadelphia, New York and Washington D.C. seminars will focus on PJM, MISO and the New York ISO.)
8. What capacity markets and resource adequacy are, and how these important issues affect the integration of wind, solar and other renewables and how all these issues relate to demand response and the Smart Grid. You will also learn what California's new "Energy Imbalance Market" and "Duck Curve" are and why these topics are important.

You Will Also Learn

1. The structure and characteristics of the wholesale bilateral spot and forward physical and financial power markets.
2. The terminology, concepts and mechanics of power marketing & trading, and the difference between physical, scheduled and contract path power flows.
3. Why open access retail electricity markets may finally now develop.
4. The details of how to structure and execute wholesale and retail power marketing transactions both within and outside of an ISO footprint - including common contract language, NERC tags, LMP basis risk, NITS & ancillary service charges, etc.
5. What "sellers choice is", and how forward "daisy chains" form at virtual trading hubs.
6. How to financially trade physical power with financial bookouts.
7. How power marketing wholesale and retail transactions are done within the ISOs, why wholesale bilateral transactions in theses markets are primarily financial, AND how each piece of end-user transactions is assembled and hedged step-by-step, including price, basis, delivery, NITs charges, UCAP charges, ancillary charges, etc.
8. An overview of the three different types of forward electricity markets: physical, over-the-counter financial and CME & ICE electricity futures contracts.
9. The basics of the ICE and CME electricity cash-settled futures contracts, and how these contracts can be used to hedge electricity price and LMP spread risk.
10. How the Dodd-Frank law implementation is impacting power markets.
11. An introduction to electricity swaps and Cfds and how these relate to ISO financial transmission rights (FTRs, CRRs and TCCs).
12. The difference between operating, economic, market and negotiated heat rates, and what spark spreads, dark spreads, are bark spreads are.
13. What "tolling deals" are, and how the powerful techniques of physical and financial heat-rate-linked power transactions work.
14. Spread trading, trading around assets, how to make electricity financially "jump" between regions, and other basic power trading techniques.
15. 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 merchant generating plant.

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

Program Level
Basic level. This fundamental course begins with basic material and then proceeds to the intermediate level.

Delivery Method
Group-live.

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

NYC Torch Club (NYU Campus)
18 Waverly Place
New York, NY 10003
View Seminar Location Website

Because of the diversity of hotels found in the area, we will not be holding a block of sleeping rooms with one particular hotel.

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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.

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Seminar Agenda

• The properties and terminology of electricity - current, power, var, voltage, etc
• An overview of the electric service system, and how it works.
• 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
• The structure and function of the North American power grid.
• Who the various industry participants are and their roles.
• Why restructuring today's power markets is such a complicated task.
• How control areas function, what spinning reserves are, and how the lights are kept on.
• A summary of FERC Orders 888, 889, & 2000
• The difference between ISOs, ITCs, Transcos and RTOs.
• What TLRs, ATC, OASIS, pancaking rates, shrinkage, economic dispatch and other terms mean.
• A summary of the key issues of today and where the U. S. electric power industry is headed, including a discussion of the smart grid, renewable energy and the building of new transmission lines.
• What locational Marginal Pricing (LMP) is and why it's used
• What the "smart grid" is, a summary of the different business models being tested, a discussion of the key issues and and how the smart grid is likely to develop.
• The major issues facing wind energy, solar and other renwables and how these generation sources relate to the proposed buildout of the backbone power grid.
• The difference between auction and bilateral bulk power markets and the pros & cons of each
• The fundamentals of the PJM, MISO, ERCOT or California wholesale market (Depending on seminar location) and the role of LMP
• How the PJM/MISO/ERCOT/California two-settlement energy and Day-Ahead markets operate.
• What capacity markets and resource adequecy are, and how these important issues affect the integration of wind, solar and other renewables and how all these issues relate to demand response and the Smart Grid. You will also learn what California's new "Energy Imbalance Market" and "Duck Curve" are and why these topics are important.
• What PJM FTRs are; their equivalent names in other ISOs, and how and why these financial instruments are used.
• An overview of the similarities and differences between the PJM, New York, New England, MISO, ERCOT and/or California markets. (Depending on seminar location)
• The fundamentals of bilateral bulk power trading units and terminology.
• The three different types of wholesale forward power markets.
• Common contract language used for bilateral power transactions.
• What OASIS & NERC tags are.
• How power marketers and traders use "sellers choice" to buy and sell forward power at "virtual hubs" across North America.
• How power marketing wholesale and retail transactions are done within the ISOs, why wholesale bilateral transactions in theses markets are primarily financial, AND how each piece of end-user transactions is assembled and hedged step-by-step, including price, basis, delivery, NITs charges, UCAP charges, ancillary charges, etc.
• An introduction to electricity swaps and Cfds and how these relate to ISO financial transmission rights (FTRs, CRRs and TCCs).
• The definition of heat rates, spark spreads, dark spreads and the powerful techniques of heat-rate-linked power transactions and tolling deals.
• Spread trading, trading around assets and other power trading strategies.