CCRO Meeting September 26th & 27th, 2018
Our Venue for Both Days:
OFFICE OF BROOKFIELD RENEWABLES
41, Victoria Street, Gatineau, QC J8X 2A1
Evolution board room, ground floor
Can’t be here? Want to be a CCRO guest and participate over the web?...
This meeting will be primarily CCRO members. However we encourage guests that are interested in the CCRO and in this meeting in-particular. If you would like to request an invitation to join us on-line - please contact Bob at info@ccro.org and I will send you an online registration e-mail…
~ Afternoon Sep 26 ~
Day 1: CCRO Initiatives Day; Summary of the afternoon's timing:
The day starts at 11:00 eastern time - ...with members catching-up over lunch
12:30 to 5:00 Members Discussions - General round-table discussions regarding topics below
5:30 - Cocktails Continue unfinished discussions / start new ones, informally
7:00 - CCRO Member & Guest Dinner - Enjoy a dinner together with new & old friends
11:30 Eastern Time
Networking lunch gets things started
Catch-up with your fellow CCRO members, meet some of our guests
Sponsored by
Brookfield Renewables
1:00 Eastern Time
Welcome and Introductions
Meet the CCRO members and our guests; anti-trust statement
Bob Anderson
CCRO Exec Director
About Brookfield Renewables – Our Host
Frederic will briefly introduce Brookfield and their businesses
Frederic Verlez
SVP of Enterprise Risk Management
Brookfield Renewables
1:30 About One of our Host’s Risk Practices
Brookfield’s Trading Area Operational Risk Program
Oded will review how Brookfield is addressing a wide range of operational risks across his trading area in Gatineau.
Oded Hirsch
Vice President, Energy Risk Management
Brookfield Renewable
A CCRO Guest
2:15 - The Retail Risk Management Standards Group
Our Retail Risk Management Standards White Paper
A Full Draft of Section 3: "Creation of Retail Risks" is Emerging
After reaching an ideal overall structure for this comprehensive paper, and completing fifteen webinars with interested CCRO members, the retail risk management group “Phase One” team has developed section 3 into a near-complete draft.
The comprehensive Section 3 document addresses the "Creation of Retail Risks", for power and gas retailers. It also provides for an organized taxonomy of all risk types and discussion of them.
We will take a close look at this robust draft as well as discuss new developments in the project plans and team.
Amir Andani
CRO, Just Energy
A CCRO Member
Retail Group Co-Chair
Frank Caliva,
President, PR Quinlan
A CCRO Advocate Member
Retail Group Principal Editor
Michael Sergeev,
President, Deca Energy
A CCRO Member
Retail Group participant
3:00 - New “Credit Risk Council”
Credit Risk Management Practice Standards
A new CCRO Initiative Gets Under-way
The CCRO membership agrees that since our first credit risk publication in 2002, credit risk management practices have evolved in a number of important directions. In these past fifteen years:
New technologies have emerged making complex analyses more practical
New mitigation instruments are now offered by new service providers; while others have faded in use
New sources of credit risk have emerged, particularly from emerging industry segments such as retail energy
Morgan Davies,
Managing Director,
Alliance Risk
A CCRO Board Member
Nigeria Bloczynski,
Head of Corporate Risk Management, WGL
A CCRO Board Member
This new CCRO group is forming quickly, by first establishing the leadership group of credit-practitioner members. In addition, we want to invite the appropriate credit solution providers as CCRO advocate members to provide expertise and resources needed to tackle research and carry-out case-example credit analyses for the paper. The wider team of credit professionals participating as editors is expected to incorporate a wide cross-section of industry and specialties.
CCRO welcomes the International Energy Credit Association (IECA) to this initiative.
CCRO and IECA will be working together to advance development of this set of white papers as well as related events & training...
3:30 The KRI Group
Benchmarking Key Risk Indicators
The Leadership Shares their Best Practice Procedures and Policy for this Benchmarking Service
Many members have indicated they do internally measure and report their own KRIs. They also indicated that the value of these measures is limited because they can only be inward-looking, measuring only their own numbers and trends. However, benchmarking to industry peers would dramatically increase the value of KRI measures by bringing a sense of what numbers and trends may be "best" or "worst" in-class KRI results. With external KRI benchmarking, a CRO's reports can make a much more compelling case for internal change initiatives.
For Discussion at this meeting: Our CCRO Member-driven Solution. Taking constructive action towards solving this situation, the CCRO's KRI working group is striving to create an entirely new database of anonymous industry KRI benchmarking statistics, particularly in the area of operative risks. Proof of concept of this database and an associated cloud-based reporting tool has already begun.
At this meeting, the group's leadership team will be hosting discussions about the latest developments in this initiative and reaching-out for more participant companies. By joining as a participant in this group the KRI benchmarks become more robust overall, and your company will gain access to the results data through the cloud-based viewer.
Current status: participants, access to viewer, clarifying data being submitted, periodicity of data, etc.
Practices for gathering the necessary internal data
Joe Zappia,
Senior Manager, Corporate Risk Assessment,
EQT Corporation
A CCRO Member
Malinda Prudencio,
CRO
The Energy Authority
A CCRO Board Member
Roderick Austin,
Director,
Cube Logic
A CCRO Advocate
4:!5 The Commission on Compliance
New Initiative: Best Practices for Trade Area Monitoring
Compliance with CFTC regulations related to commodity trade orders and related patterns
Jack Yeager,
Risk & Compliance Expert,
Whitley Penn
Mike DeLaval,
Trading & Markets Expert
Whitley Penn
We are excited to be proposing a very important initiative addressing the broad subject of trade area monitoring as part of managing operational risks. Today’s discussion will focus on risks of non-compliance with complex CFTC regulations concerning trading tactics. These regulations cover exchange trades AND all swaps, companies with trading activity of any size, and retailers as well as their credit providers…this area is for virtually all CCRO member companies.
The discussion Jack and Mike have developed is an interactive exercise that is designed to help members:
Understand what they are up against and what they can do about it
Gain a real sense of the urgency associated with addressing this specific risk
Better appreciate how much we don’t know right now to be able to do this effectively
Identify how the CCRO can help advance industry practice in this area
A note: Our November CCRO meetings will be centered around compliance issues, with this being an important one of those. Join in this engaging and informative discussion to kick off our next steps in this area.
5:00 - 5:15
Tour of the Brookfield Renewables Trading Floor
Frederic has volunteered to open the trading floor for us to have a walk-through and Q&A session...
Evening: Cocktails followed by dinner
5:30 - Cocktails at Andaz Hotel’s rooftop bar
Head upstairs to Copper Spirits & Sights and take in a view like no other. Located on the 16th floor of the hotel, this premium lounge boasts the title of city's tallest rooftop bar.
Copper Spirits & Sights
325 Dalhousie St
Ottawa, K1N 7G1
7:30 - Dinner at the “Social” restaurant
Continue discussions at our members and guests dinner, just down the street from the Andaz.
Social - 537, Sussex Drive, Ottawa, K1N 6Z6
~ Full Day Sep 27: ~
Day 2 Symposium: Risk Management Methods for Renewables
Want to be a CCRO guest at this Symposium?...
This symposium will be primarily CCRO members. However, we welcome guests that are interested in the CCRO and in this meeting in-particular. If you would like to request an invitation to join us - please contact Bob at info@ccro.org
Summary of the day's timing:
Coffee at 8:30 - If you weren't too late last night...
9:15 to 2:00 - Symposium
9:15 - Brief new business update during coffee
Quick update on the CCRO Survey of Industry Practices…
Our goal is to publish in October...
We are seeking members that would like to test the on-line subscription service…
Bob Anderson
CCRO Executive Director
9:30: Risk Management Processes for Large Renewable Energy Capital Projects
CCRO members have expressed interest in exploring best risk management practices when developing large scale renewable energy projects (e.g., wind, solar, geothermal, and battery storage projects). This discussion explores the similarities and differences between more conventional energy project risk management practices and those necessary to ensure the success of large scale renewable energy projects.
Following are several project management topics we’ll explore:
Assessing Project Drivers (Customer Demand, Public Policy, Other)
Business Strategy and Decision-Making Criteria
Project Planning & Administration
Financing, Credit, Market Pricing & Currency Issues
Vendor Due Diligence, Selection & Contracting
Regulatory Pre-Approvals (Cost Recovery, Siting, and Permitting)
Construction, Third Party & Contract Administration
System Energizing and Delivery
Post-Construction Reviews & Approvals
Tom Birmingham,
VP Compliance, Emera
A CCRO Member
Malinda Prudencio,
CRO, The Energy Authority
A CCRO Board Member
Pam McKinnon,
VP, Emera
A CCRO Guest
10:30 - Mitigation of On-going Risks of Renewable Energy Assets
(Risks that may need to be addressed during the project planning stages to secure financing)
Projecting future generation output and its variability
Hedging of forward revenue streams
o Energy
o Capacity
o Environmental Attributes
Variability of generation output
o Determining forward volumes to be hedged
o Implications for hedge program design across revenue streams (energy, capacity, environmental attributes)
Implications for daily bidding strategy
Niraj Shah,
CRO, Munich Re Trading
A CCRO Member
Steve Kleege (Remote),
Director, Veritas
A CCRO Advocate Member
11:30 Light lunch served… we resume discussions during lunch
11:45 - Brief Update on Regulatory Issues Presenting Risks for Renewables
Morgan will walk through some significant changes in Canadian regulators & regulations
Morgan Davies
Managing Director
Alliance Risk
A CCRO Board Member
12:00 - Risk Tolerance and the Holtwood Dam Safe Harbor Rules
A Case Study
Brookfield Energy’s risk group has helped the company optimize revenues while managing risks at this large renewable asset… Join the discussion as the leader of this risk analysis project walks through the challenges and results.
Bruno Benedetti
Manager Hydrology and Optimization,
Brookfield Renewables
A CCRO Guest
12:30 - Risk Systems that Handle Renewables Exposures...
What are the challenges to ETRM systems when a renewable asset, or portfolio of assets, is involved?
What approaches are available to tackle these challenges?
Roderick Austin,
VP Business Devt, Cube Logic
A CCRO Advocate Member