A client has sold gas and they want to capture it in their ETRM system. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A client has sold gas and they want to capture it in their ETRM system. The gas deal is priced against a formula based on oil prices of the form: PGas = 0.062* PGasoil + 0396*PFuel Oil: The deal is for 6 months with deliveries starting October 2018. Payments are done on monthly basis- with a due date of 20 days after delivery for the month is done. There is a minimum delivery quantity per month of 1000 MWh. If the client takes less than this amount, they pay 85% of the final price for the month (the so called Take or Pay clause). a. What functionalities do you need in the system in order to be able to capture the trade correctly? In other words what an ETRM system should be able to do in order for this contract to be sensibly captured in it? b. Assume the deal is captured and the calculated payment for Nov 2018 is wrong. Give two examples of things that could have gone wrong? A client has sold gas and they want to capture it in their ETRM system. The gas deal is priced against a formula based on oil prices of the form: PGas = 0.062* PGasoil + 0396*PFuel Oil: The deal is for 6 months with deliveries starting October 2018. Payments are done on monthly basis- with a due date of 20 days after delivery for the month is done. There is a minimum delivery quantity per month of 1000 MWh. If the client takes less than this amount, they pay 85% of the final price for the month (the so called Take or Pay clause). a. What functionalities do you need in the system in order to be able to capture the trade correctly? In other words what an ETRM system should be able to do in order for this contract to be sensibly captured in it? b. Assume the deal is captured and the calculated payment for Nov 2018 is wrong. Give two examples of things that could have gone wrong?
Expert Answer:
Answer rating: 100% (QA)
The global energy structure is on a lowcarbon transition path featuring more natural gas consumption ... View the full answer
Related Book For
Bank Management and Financial Services
ISBN: 978-0078034671
9th edition
Authors: Peter Rose, Sylvia Hudgins
Posted Date:
Students also viewed these organizational behavior questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
You would like to design a product to sell to shopping malls that tells them more about the behaviours of their customers. The system would use cameras to track customers as they walk from store to...
-
On December 1, 2005 the Cone Company issued its 10%, $2 million face value bonds for $2.3 million, plus accrued interest. Interest is payable on November 1 and May 1. On December 31, 2007 the book...
-
Determine the velocity of sound in steam at 800 kPa and 350oC assuming (a) 1% variation of temperature across the wave and using the PC model, (b) Steam to behave as a perfect gas. Use the PC Flow...
-
Refer to the CVS annual report and the financial statements of Southwest Airlines Co. in the Supplement to Chapter 1 to answer these questions: 1. Which company is larger in terms of assets and in...
-
Roman Inc. has the following totals from its operating budgets: Selling and administrative expenses budget..............$ 244,500 Cost of goods sold budget.............................................
-
DELIVERABLE LENGTH: 8 12 SLIDES WITH 150200 WORDS IN NOTES SECTION Respond to the following scenario with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce...
-
The finance director for the City of Green Falls printed the General Fund Revenues and Appropriations Ledgers shown below for the year just ended. The beginning-of-the-year fund balance was $160,160....
-
Gregory University, a private, nonprofit university, receives $10,000,000 from a donor who specified the gift is an endowment, and the earnings are restricted for operating costs associated with a...
-
The total payroll of Waters Company for the month of October 2 0 0 7 was $ 3 6 0 , 0 0 0 . Taxable wages for Social Security ( 6 . 2 % ) were $ 2 7 0 , 0 0 0 Taxable wages for SUTA ( 1 % ) were $ 6 0...
-
NETWORK DEFENSE AND COUNTERMEASURES (PEARSON IT CYBERSECURITY CURRICULUM (ITCC)) http://download.cnet.com/ZoneAlarm-Free- Firewall/3000-10435_4-10039884.html www.firewallguide.com/freeware.htm...
-
Most appropriate communication strategy for the situation described would be a combination of verbal and nonverbal communication.
-
Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of...
-
3. Suppose good X and good Y are perfect complements to a particular individual and this person always consumes 5 units of good X with 3 units of good Y. Price of X is $6 and price of Y is $5. The...
-
UnidentifiedYou will be receiving a shipment of 168 cases oftem #203; there are 28 cases on each pallet. Thepallets are to be stored in section D1 of thewarehouse. If 4 pallets fit on a storage rack
-
Given that all the choices are true, which one concludes the paragraph with a precise and detailed description that relates to the main topic of the essay? A. NO CHANGE B. Decades, X-ray C. Decades...
-
Contrary to the exuberant economic forecast described in problem 11, suppose a banks economics department is forecasting a significant recession in economic activity. Output and employment are...
-
Forever Savings Bank estimates that building a new branch office in the newly developed Washington town ship will yield an annual expected return of 12 percent with an estimated standard deviation of...
-
If you know the following figures: Please calculate these items: Total assets _______ Net loans _______ Undivided profits _______ Fed funds sold _______ Depreciation _______ Totaldeposits _______...
-
Develop a brief answer to each of the following questions. 1. What makes accounting a valuable discipline? 2. Why do managers in governmental and not-for-profit organizations need to understand...
-
Siglo Pharmaceuticals has recently been formed to develop a new type of drug treatment for cancer. Previously a partnership, Siglo has now become a corporation. Describe the various groups that will...
-
Max owns and operates a minimart. Which of Maxs actions described below are business transactions? Explain why any other actions are not considered transactions. 1. Max reduces the price of a gallon...
Study smarter with the SolutionInn App