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DAY ONE - Tuesday, March 23 12:30 p.m. Welcome Remarks Committee of Chief Risk Officers
12:45 p.m. to 5:00 p.m. Roundtable Series 1 Modeled Price Risk vs. Modeled Value Risk Many energy companies monitor enterprise value at risk using models that focus primarily on price. Price and value risk can be two different things and should be considered separately. Chief risk officers will discuss where price and value converge and where they differ and when one should be weighted more than the other. Building and Using Better Scenarios and Stress Tests The financial crisis and recent price volatility has forced energy companies to model robust stress tests and scenarios to more effectively prepare them for unexpected shocks. Banks and financial institutions used best practices for stress tests too, yet they were still caught unprepared. This session will detail the types of stress testing and scenarios some companies have begun to employ, along with lessons learned from banks that failed, despite their stress tests and scenarios. What If Your Analysis Approach Is the Wrong One? Models should be continuously questioned. If they are wrong, what are the implications on the overall payoff profile as shown in the modeled earnings distribution? How robust is the decision recommendation? Are we long or short the low-probability event(s), and what is the upside and downside? Are we factoring-in the observations from actual transactions? When we see a gap is our model wrong or are we seeing an arbitrage opportunity? Risk experts will discuss these questions and provide case examples of how they scrutinize their models. The Perfect Storm Committee Anything can happen, but what if multiple catastrophic events happen at the same time, such as a hurricane during a financial crisis or major power plant outages during a heat wave and employee strike? This roundtable will discuss how to successfully manage the risk of major concurrent events. 5:00 p.m. Improving Energy Market Transparency Published price indices vary significantly because they have different mixes and numbers of companies reporting data that, together, produce different results. One index may be weighted toward buyers while other may be weighted toward sellers. This session will detail how a new industry initiative called Energy Data Hub will bring transparency to energy pricing and could revolutionize energy trading 6:00 p.m. Cocktail reception Sponsored by SNL Energy
DAY TWO - Wednesday, March 24 8:15 a.m. Welcome Remarks Randy Rischard, Director, Energy Markets and News, SNL Energy 8:30 a.m. Optimizing Your Risk Management Backbone: System Priorities for 2010 and Beyond It is nearly impossible to effectively manage your enterprise risk without the support of a sophisticated ETRM system. Unlike years past, there are today dozens upon dozens of top tier transaction and risk management applications from which to choose. The challenge in systems today lies with effective component and platform integration. Panelists will discuss new system priorities, integration best practices and system risk mitigation, and identifying needs. 9:15 p.m. to Noon Roundtable Series 2 Oversight Issues Impacting Energy Risk Regulatory Interests in Systemic Risks and Excessive Speculation The Commodity Futures Trading Commission is considering a major regulatory overhaul that would be a sea change for over-the-counter energy markets at the same time Congress is debating new regulatory oversights that could change energy trading. Energy Risk leaders will discuss their perspective on possible impact on energy companies. Capital Impacts from Proposed Derivatives Legislation Congress is also likely to pass new legislation on derivatives. This session will discuss the legislation and how it will affect the energy companies approach on working capital, inventory, liquidity, margins and other capital impacts. Corporate Board Energy Risk Appetite vs. Risk Capacity Though they may be quantitatively similar, a company’s risk appetite is often confused with its risk capacity. Traders tend to have greater risk appetite than the company has risk capacity. Risk managers will provide various approaches to sizing up these difficult to quantify metrics and recommend the types of planning needed to integrate these concepts. 12:00 p.m. Luncheon and Presentation Scott O'Malia Commissioner 1:15 p.m. CCRO Power Market Credit Panel The CCRO has assembled a panel of experts to draft and publish much needed standards & best practices related to credit across power markets that it will present to FERC. FERC staff has openly expressed interest in this panel that will tackle the impact of settlement cycles and longer-dated transactions (such as FTRs) on credit exposure, “across ISO” and “across product” netting, and a gap analysis of best practices and policies across ISOs. The panel will present and discuss the issues and potential solutions to these problems. 2:30-5:30 p.m. Roundtable Series 3 External Situations and Complications Debt Equivalency and Capital Adequacy This session will review how the rating agencies view debt equivalency and capital adequacy for regulated and non-regulated energy companies, inconsistencies in how the agencies address these issues and best practices for energy companies. Making Markets and Managing Risk at The Node From short- and long-term power to transmission and generation capacity, more and more power trading and hedging opportunities are available within regional markets operated by the RTOs and ISOs. This session will address key energy risk scenarios and considerations for companies that participate in regional power markets. Consequences of A Breakdown in Energy Fundamentals Risk managers have long relied on energy price and fundamental relationships, but some fundamental and price relationships often breakdown and some may be forever broken. For this topic the risk managers will discuss how models and corporate outlooks might need to change to factor in the breakdown of long-term fundamental and price relationships. 5:30 p.m. Closing reception Sponsored by The Committee of Chief Risk Officers
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Discussion Leaders James C. Allison Manager of Risk, Bob Anderson Executive Director, Committee of Chief Risk Officers Tom Blaney Director, Risk Management, WPS Energy Brenda Boultwood SVP and CRO, Constellation Energy Doug Daugherty VP, Technical Services Triple Point Technologies Morgan Davies Director, Corporate Credit, Calpine Corp. Gary M. Germeroth EVP and CRO, Calpine Corp. Phillip Gootee President, Global Credit Services Salim Jabbour President, Abacus Solutions Alan Johnson Director, Regulatory Compliance, NRG Energy Krishnan Kasiviswanathan SVP and CRO, NRG Energy Moazzam Khoja Senior Vice President , Sungard Energy and Commodities Lloyd Komori Former Chief Risk Officer, Bob Long Vice President, Corporate Finance, Shell Energy North America Robert C. Ludlow Vice President, CFO and Chief Compliance Officer, Glen Mackey Director, Global Risk Management, Nexen, Inc. Patrick McNeil SVP Corporate Business Development and CRO, Ontario Power Generation Scott D. O'Malia Commissioner, Commodity Futures Trading Commission Ben Preston Executive Director, Michael Prokop Senior Vice President, Amerex Brokers Randy Rischard Director, News and Markets, SNL Energy Kenneth Robinson Global Head of Market Risk, IST, BP Oil International Ann Sacra President and COO, Vijay Singh Former CRO, Robert Stibolt Managing Director, Galway Group Peter Stockman Partner, Deep River Group Andrew Sunderman Managing Director, Finance, Business Management and Market Risk, J.P. Morgan Jana Utter Director of Credit and Risk Management, Midwest ISO |
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