How to Buy and Sell Physical and Financial Power with Bilateral Contracts and Power Purchase Agreements (PPAs)

The information presented in this practical step-by-step training course is not available anywhere else.

Learn how physical and financial power is bought and sold in wholesale and retail competitive markets, and how physical and virtual power purchase agreements ("PPAs") work. Learn how and why power transactions are done financially in the ISO regions and how these transactions relate to the ISO day-ahead energy auctions. Multiple detailed examples will walk you step-by-step through the mechanics of physical and financial bilateral power transactions and PPAs. Bilateral transactions and PPAs are not connected with the ISO administered day-ahead energy auctions and are a completely different way to buy and sell power.

What You Will Learn

• What the diiference is between a bilateral power contract and a power purchase agreement ("PPA").
• Why physical energy transactions are mostly a game of virtual contractual promises with no need for warehouses or inventory.
• How simultaneous virtual title transfer works and when payment is due.
• The meaning of terms financially firm, "LD",  full requirements, interruptible, and unit contingent, and where to view the contract language used by the various industry accepted master sales & purchase agreements.
• How to move physical power using OASIS and NERC tags, wheeling, pancaking rates, and why companies often instead move physical power financially causing it to ‘jump’ between regions.
• The important difference between physical power flows, the scheduled transmission path, and and the commodity ownership chain, and why power transactions often having nothing to do with with the flow of electricity on the grid.
• What "sellers choice" and "buyers choice" are, and how virtual transaction "daisy chains" form at trading hubs and at the Mid-C.
• Why many physical bilateral power transactions never go to delivery and instead are “booked-out” and settled in cash.
• Multiple detailed examples are explained step-by-step.

What You Will Also Learn

• How to transport power financially causing it to ‘jump’ between regions which can help renewable energy resources reach new PPA customers. 
• How commodity swaps, cfds, and financial futures contracts can be combined with ISO energy auctions to give a company the best of both worlds when buying, selling, and moving power.
• A detailed listing of all the costs components contained within a competitive end-user price including supply cost, LMP spreads, HV and LV NITS  charges (HV & LV TAC in California), UCAP, Resource Adequacy, FRAC-MOO (California), and the five different ancillary service charges.
• What "basis risk" is and how a company can hedge this risk financially using ICE futures contracts, an energy commodity swap, or ISO financial product.
• What FTRs, CRRs, and TCCs are; how they help an ISO reduce transmission congestion; how these products can hedge basis risk; and how they can cause financial losses for a power market participant.
• Why most bilateral power transactions within an ISO/RTO region are purely financial, and why generators, LSEs, QSEs, and SCs often self-schedule.
• What fixed-for-floating swaps, dart swaps, and financial futures contracts are. 
• Why a power marketer often has to underprice risk to get a deal done.
• Multiple detailed examples are explained step-by-step.

How This Online Course Works

Get the best of both worlds with this blended learning approach.

• Learn at your own pace and on your own schedule as you first enjoy the internet-streamed, on-demand seminar. Speed up, slow down, or repeat sections of the presentation.
• Upon completion, join us for one of our regularly scheduled live online Q&A sessions. A calendar of live Q&A dates and times is provided in the program access instructions you will receive. You can also email your questions directly to the instructor.

Course Access

You will receive immediate online access to the on-demand training presentation. The audio for the online seminar is only available through your computer or other Internet connected device. You will also receive links in your access instructions to PDFs for all the presentation materials in case you want to print or keep a copy.

The on-demand training presentations are available for a total of 15 days from the time any one of the training presentations is first accessed. After 15 days, your access to the on-demand presentations will expire. However the PDF formatted training program slides and other documents you receive are yours to keep.