Company

Small IPP managing high-risk assets in volatile MISO zone with dynamic pricing conditions.

Challenge

Develop optimal hedging alternatives with effective risk management under volatile market conditions, minimize downside exposure, protect operating margins, and balance risk-return optimization.

SATURN

• Simulated potential power and fuel prices and spark spreads using most recent forward curves – within minutes.
• Developed optimized operations of power plants and forecasted operating margins and potential margin variability.
• Provided breakdowns, long term trends, sensitivity analysis, and risk metrics that facilitated valuation with confidence.

Impact

• Enabled management to make an informed decision with confidence and achieve 15% hedging cost reduction.
• Established reusable workflow and solution frameworks that enable rapid response to evolving hedging needs.
• Implemented automated reporting and data visualization enabling real-time collaboration and results sharing.

SATURN Applications