Energy & Environmental Risk Management/Trading
Selected Engagement Briefs
- For numerous clients we have set up trading operations, encompassing all aspects of operations including recruiting, policies and procedures, business process mapping, software system selection and implementation, training, desk set-up, product design, NYMEX account set-up, credit screening processes, and counter party negotiation.
- For a major Midwestern Utility, we served as co-project leader with Deloitte & Touche's Capital Markets Group in performing an assessment of company-wide activity level risks associated with the utility's electricity generation, transmission and distribution in seven states. We analyzed trading opportunities and risks associated with physical and financial bulk power trading strategies. We developed a risk management infrastructure for the company and presented our findings to the Board of Directors.
- For a European oil trading company, we performed competitive analysis on US oil, gas and power trading as part of their strategy for entry into gas and electricity trading.
- For a large Southeast Utility managed the creation of an implementation plan for bulk power trading and fuel procurement. We developed board policies and guidelines, designed risk management infrastructure for the power marketing business unit, and trained management.
- For a large Energy Trader we assisted in setting up a structured products group and developed a strategy for their wholesale marketing functions, including long-term capacity and forward price curves.
- For a number of clients we performed asset optimization and business process mapping analysis. Our subsequent documentation enabled the company to realize significant savings using the improved methodologies developed.
- For a large Midwest Energy Marketer revamped their transfer models and mark to market methodology, aligning trading accounting to the financial accounting models.
- Educated trading and marketing groups for a large Gas Marketer to develop a procedure for creating unique structured products. Designed BTU contracts, shared risk and portfolio management arrangements, and worked through the fulfillment requirements for the organization to be able to manage to these new product offerings. This included training, system design and implementation, plus business process mapping.
- For a large Energy Marketer, assisted in setting up their structured products and developing a strategy for their wholesale marketing functions including long-term capacity and forward price curves.
- For a Midwest Utility, developed strategy for lowering risk of existing deal structure by instituting a portfolio approach.
- For a large Gas Utility performed supply demand forecast study to analyze the exploration activities, pipeline constraints and demand forecasts of specific utility territories.
- For a large Electric Generator analyzed demand forecasts and pricing curves against planned generation.
- For a large Midwest Energy Marketer, performed regional market pricing analysis for both wholesale to retail values for ESCOs, trading houses and IPPs. Looked at forward curves against futures and tariff rates to evaluate market conditions for planned asset acquisitions and for supply portfolio requirements as well as to assist in the design of new risk related product offerings.
- Fuel forecasts have been performed for numerous clients, especially in the area of power generating planning.
- For a large Energy Cooperative developed energy purchasing strategy to service customers in western PA and create load profiles and energy forecasts for various rate classes and weather profiles.
- Developed a number of risk products for use in reselling to ESCOs and for reselling to end users (primarily industrialists).
- For numerous large Energy Marketers developed buy/sell strategy, including futures contracts and physical products.
- For numerous large Manufacturing Companies, developed optimum energy procurement strategy including risk management opportunities.