Introduction to Heat Rates, Spark Spreads, Generation Optionality, Tolling & Heat Rate Linked Power Transactions
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Learn all about heat rates, spark spreads, tolling arrangements and generation optionality. This seminar will also show how heat-rate-linked power transactions can be used to hedge electricity price risk and profitably arbitrage fuel and electricity price discrepencies. Click Here to Register
What You will Learn (Session #1) -->

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) -->
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 InstructorJohn 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 10 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 SeminarThis 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?