Tuesday, March 31, 2015
Webinar - Risk Management: Planning for Ups and Downs
Recent developments in fracking, which brought on the shale boom, has drastically changed not only the way natural gas is extracted, but also its pricing dynamics in the open market. While higher natural gas production has dampened prices, daily price movements have become increasingly more volatile as the market wrestles with supply and demand balance.
A prudent risk management plan is needed to safeguard users against volatility in the budget, as a result of volatile market prices. Fully protecting against rising cost by fixing prices may not produce a low-cost budget, and total exposure to open market prices may yield a much higher than expected budget. A step-by-step risk management plan that culminates into an actionable risk policy would provide an achievable balance toward managing the energy budget in a volatile environment.
Phuong Le Project Manager, Sustainability & Energy Management Siemens
Ms. Phuong Le is an energy professional with over 15 years of experience in energy market valuation and energy consulting. She has direct experience in electric power and natural gas procurement in deregulated and regulated markets, financial modeling, commodity hedging, power plant valuation, and rate case intervention.
Ms. Le has managed the risk positions of wholesale and retail trading books transacting in commodity futures, swaps, and options in all electricity, natural gas, and coal markets in the U.S. Her experience in risk management of trader books consists of assessing daily VaR and P&L analysis, monitoring trader risk limits, reviewing structured transactions related to long-term contracts and tolling arrangements, and application of the FAS 133 accounting requirements. She also has direct experience with re-pricing and unwinding the asset management books associated with power plants across the U.S. in bankruptcy proceedings.
Ms. Le is knowledgeable on the regulatory side of the industry, and has experience in researching and analyzing the investment, capital budgeting and capital structure, cost of debt, common equity and financial and operating practices of public utilities. She has prepared discovery questions, exhibits and cross examination questions in a rate case intervention involving a water utility; participated in a rate case study reviewing the cost allocation and cost recovery mechanism for a power authority; and participated with the State Corporation Commission to define the terms and criteria of the Performance Incentive Program for rewarding or penalizing utilities in a regulated state.
Douglas R. Romaine, Associate Director, Sustainability & Energy Management Siemens
Mr. Douglas R. Romaine has over five years of experience in the electric power and natural gas industry, and is currently an Associate Director in Siemens Sustainability & Energy Management (SEM) division. Mr. Romaine specializes in competitive energy markets and risk management; through which, he has provided strategic planning support and analysis to various projects identifying market structures, energy procurement strategy, and utility operations. In addition, Mr. Romaine has provided operational support to physical generation assets and utility sized load. He has been involved extensively in Siemens growing Energy Management Services practice and has multiple project engagements for the firm, including Risk Management, Asset Management, Operations, Load Management, and Generator Bid/Dispatch Evaluation.
Mr. Romaine holds a Bachelor’s degree in Economics and Political Science from the University of Kentucky, and is currently obtaining a Master’s in Business Administration from The George Washington University.
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Posted by Richard Matthews