Updated: May 20
In our ongoing attempt to keep you informed of all things energy, we would like to alert you to the attached NYISO assessment of the COVID-19 impacts on electricity demand.
Strikingly obvious are the geographic and temporal variations of load as the quarantine progressed from mid-March into late-April. It is our belief that this document provides insight not only into the quantitative details of hedging and scheduling of NYISO load in the short term, but also lends information for future marketing and sales efforts as well.
Particularly important is the inference one can form of maintaining a well-diversified portfolio. Although this document is specific to NYISO electricity demand, one can make broad-brush parallels into other ISOs and zones to feed into future strategy.
For more information, or to speak with a member of our POWWR risk services team, please click here to schedule a meeting
NOTE: POWWR provides this information as a courtesy to enhance the risk management process and are not responsible for the accuracy of this article and/or actions taken as a result of this information.
Mr. Palao specializes in commodity risk management and the science of meteorology/climatology. He serves as POWWR’s many subject matter experts. He has 20 years of experience in the energy/utility industry where he used his skills and knowledge of meteorology and advanced statistics. From 2000 through 2011, he worked at TXU Energy Trading/Luminant Energy in Dallas where he served in three capacities. Most recently, he served as Capital/Liquidity Manager of the trading portfolio, optimizing the use of capital while still maintaining profitability. Prior to that, he managed the Weather Derivatives trading desk, devising strategies and executing trades for both speculative and hedging purposes. Upon joining TXU, he served as manager of the Quantitative Risk Group, assisting the company in the identification, quantification, and remediation of financial risks inherent in the company’s multi-commodity trading portfolio. In his first foray into energy/utilities, he was a Marketing Executive with Louisiana Gas Service Company, a local distribution company, where he primarily marketed natural gas technology to commercial and industrial customers. Before that, he served as a Research Scientist under contract to the National Oceanic and Atmospheric Administration (NOAA). Mr. Palao has an M.B.A. from Tulane University. He also has both an MS and BS in Meteorology from Florida State University. He is a member of the Financial Risk Management Committee of the American Meteorological Society (AMS).