Company

Large Independent Power Producer (IPP) with generation assets in multiple ISOs.

Challenge

Forecast portfolio revenues, costs, margins, and risks while developing optimized hedging strategies for company generation fleets across each ISO and multiple regional markets.

SATURN

• Forecasted stochastic prices for several markets and several commodities across 4 ISOs.
• Simulated optimized generation and forecasted revenues, costs, margins, and risk exposures.
• Developed alternative efficient frontier hedging strategies and enabled effective risk management.

Impact

• Enabled unprecedented efficient frontier hedging that balanced risks and margin optimization.
• Helped company management make risk management decisions with confidence.
• Improved margins by over 10% and reduced risk exposure by over 15%.

SATURN Applications