WHITE PAPER
Assessing Credit Risk
in Today's Post-Crisis
World
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WHITE PAPER
A Practical Approach
to Risk Management

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WHITE PAPER
FERC Regulations

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Press Releases

	Preem AB Selects Allegro Energy Trading and Risk Management Solution

	Allegro Expands ETRM Functionality for Global Power Markets

	Allegro Announces Enhanced Functionality for Natural Gas Trading & Logistics

	SUEK AG Selects Allegro Energy Trading and Risk Management System

Upcoming Events

Customer Summit
September 13-15, 2010
Dallas, Texas
Energy Risk Asia
September 27-28, 2010
Singapore
Platts 4th Annual European Refining Markets
September 27-28, 2010
Brussels, Belgium

Supporting Material

Market Brief 600Kb
Power 8.1 656Kb

Case Study

A power company that serves more than half a million residential, commercial, and industrial customers was running spreadsheets and using multiple legacy systems for their risk management and compliance reporting. Decision makers could not transparently view positions and attendant risks in order to execute in the market with confidence. Accountants and legal personnel were faced with compliance challenges because data was not auditable. Additionally, credit exposure could not be netted across power and fuel transactions from the same counterparty.

Allegro delivered a single, comprehensive solution that solved those problems and brought efficiencies to front, middle, and back offices. With Allegro’s automated business processes, the company has saved time and resources that enable them to make commercial decisions with confidence, while reducing costs and maintaining a comprehensive audit trail for compliance reporting.

Power Generation ETRM Solutions

Allegro ETRM Solutions for Power Allegro delivers a suite of solutions for merchant power generators, utilities, cooperatives, and traders. Our risk management, scheduling and settlement solutions for power drive business efficiency, while working in concert with Allegro solutions for coal, natural gas, oil, and other fuels. Allegro solutions also support economic dispatch of multiple units to provide for optimized physical logistics and scheduling management for all transportation types. Each of Allegro’s components is tightly integrated with physical and financial transactions, power and fuels physical capacity and provides customers with a single view of their entire portfolio.

Allegro provides a single platform for risk managers to transparently view and optimize power portfolios, inclusive of all fuel types, physical and financial transactions, and live markets.

Allegro’s Power component provides users the ability to rapidly and easily create and manage load shapes for expected demand in and/or generation output. Users can store forecasted average volumes of energy in increments based on time ranges, time units and forward curves associated with the load shapes. The flexible solution can capture load shapes in multiple granularities including fifteen minutes, half hour and hourly increments as required.
Allegro’s Generation component delivers proven methodologies for managing physical power assets. Allegro captures and utilizes volumes, efficiencies, and other plant data. This enables a holistic view of the entire operation.
Allegro provides Physical Logistics functionality that supports scheduling management for all transportation types including barge, rail, truck and pipeline with scheduling automation and audit tracking controls.

Optimal Software Components for Power Generation

Trade Execution - Provides tools to efficiently capture and confirm physical and financial trades for commodities.
Trade Strategy - Provides the ability to define trading strategies, which can be made up of existing positions and hypothetical positions, to allow for analysis of different trading scenarios while setting operational goals and limits.

Positions 8.0 - Provides comprehensive risk position reporting and viewing capabilities. This component allows reporting on Mark to Market, exposure, limit management, and profit and loss across the entire portfolio.
Optimization 8.0 - Calculates the incremental valuation of all possible dispositions of long and short commodity positions, based on market prices, transportation, storage, and processing information.
Simulation - Provides a set of tools to help analyze the impact to exposure and profit and loss resulting from movements in the market.
Credit 8.1 - Delivers advanced credit monitoring, analysis, scoring and rating, and overall counterparty credit management to accurately measure current and future exposure along with using robust credit risk models to accurately rate counterparty credit scores in a timely manner.

Generation 8.0 - Manages the generation of power from fuels to allow for position management on the fuel and power sides of the unit.
Power 8.0 - Manages physical power scheduling, transmission and actualization of power and ancillary services.
Natural Gas - Manages physical gas scheduling, nomination, capacity utilization, measurement, allocation, and imbalances on natural gas pipelines for both pathed and non-pathed pipelines.

Contracts 8.0 - Captures and manages all contract information across the enterprise and through the entire contract management life-cycle.
Settlement 8.0 - Provides the tools that settle and feed data to invoice physical, financial and other transactions associated with commodity transactions and logistical movements.
Net Valuation 8.0 - Enables the valuation of inventory along with the ability to complete net forward, net back, and profit margin calculations across commodities, including commodity value, transactional, and transportation costs.
Price 8.0 - Provides flexible tools to capture, create, and access pricing data and forward curves for all commodities, including coal, natural gas, electric power, crude, refined products and natural gas liquids (NGLs).
Currency 8.0 - Provides the solution to enable management of multiple currencies including the ability to capture currency exchange rates and currency trading.
Hedge 8.1 - Assists with hedge accounting and fair value disclosure requirements by providing robust tools for analysis and reporting such as Financial Instrument Management, Currency Management, Interest Rate Management, Fair Value Management, Fair Value Option Management and Disclosure Management.
FERC Connect 8.1 - Assists in the ease of extracting and compiling all transactional natural gas and electricity data need to meet current FERC 552 and FERC EQR regulatory reporting requirements. Upon validation, the information can automatically be filled and uploaded to FERC in an accurate and timely manner.
Emissions 8.1 - A dedicated component providing efficient, and manageable yet comprehensive capability to accommodate trade activity for either renewable energy credits or emissions certificates. This functionality is unique to the market, in that it not only supports current market conditions but allows customers to be ahead of the curve as mandates by various global requirements change.

Workflow - Alert-based workflow engine that automates business processes through task and approval tools and automated control management, as well as having the ability to seamlessly integrate with third-party software and database systems.
Price Connect 8.1 - Provides a standard interface to market prices from different data providers. This is a one way import of data from the market provider to Allegro to be used for pricing data.
Exchange Connect - Provides a standard interface to electronic trading exchanges to allow the submission and receipt of bid and offer data while allowing for execution and confirmation of transactions through the exchange. The interface is bilateral allowing for straight through processing of transactions from and to the exchange directly from the Allegro environment.
NETA Connect 8.0 - Allows market participants to interface with the NETA market system. The interface is bilateral allowing both submission and retrieval of volume, transaction status , forward positions and periodic reports.

Industries

Optimal Software Components for Power Generation