May 2015: Topaz Power Management LP has successfully implemented Lacima Analytics

06/05/2015

Lacima Analytics has been successfully implemented at Topaz for cash-flow based metrics and stress testing across a portfolio of physical generation assets in multiple US regions

May 2015 - Lacima is pleased to announce that Topaz Power Management LP has successfully implemented Lacima Analytics to undertake risk management of both current and potential portfolios of physical generation assets across multiple US regions. Lacima was originally selected primarily because of its strength in modelling physical generation assets – the key driver of Topaz’s gross margin risk, however it was also selected for the robust stress testing module which is helping Topaz meet it its risk quantification goals.

Topaz, based in Austin Texas, manages power portfolios in natural gas, coal and oil-fired electricity generating capacity and ancillary services on a wholesale basis for fifteen power plants, totalling approximately 5,325 MW in generating capability in five states, including within the PJM, ERCOT and NE-ISO regions.

In implementing Lacima Analytics, Topaz has gained insight across both current portfolios and potential portfolios.  While the cashflow- at- risk metrics are the critical foundation for risk analysis, it is the stress testing module that both analysts and decision makers found to be a unique benefit.  Through this module, analysts are able to quantify the potential ‘what-if’s common to the energy market.  More importantly, the stress testing module is allowing Topaz to assess the risk impact of any potential acquisition target which, together with the sensitivity and portfolio splicing abilities, has enabled Topaz to take a large step in meeting its risk quantification goals.

“Being a smaller organization, having a provider that was able to work with us during the implementation was key.  At the end of the on-boarding process, we not only had a solution delivered on time and budget, we also had internal resources fully capable to run the system themselves.  This not only helps in production, but also gives management confidence that outputs are understood internally.”  commented Dean Charette – Topaz Director of Analytics.

Dr Chris Strickland, Lacima CEO, remarked, “We are very pleased to welcome Topaz as a customer and are delighted to have a great example of the way that Lacima Analytics is able to provide competitive advantages to customers of all sizes and portfolios in disparate US regions.  We are particularly proud of our stress testing module which provides users with deep and tailored insights into both their current and potential portfolios, enabling business decisions to be made with greater confidence and speed.  Lacima Analytics is the only commercially available risk management system with this “on tap” capability.”

About Lacima

Lacima is a specialist provider of software and advisory services dedicated to valuation, optimisation and risk management for global energy markets. We help you to maximise your profit potential and make more informed decisions by providing tools that yield more accurate valuations, hedging analysis and risk exposure analysis for portfolios of financial contracts and physical assets.

Clients of our software and services include structuring, valuation and risk teams in vertically integrated energy companies, energy retailers, financial institutions and large energy consumers in Europe, North America and Australasia.

Our software solutions have been developed and implemented by peer-recognised experts in energy analytics, offering an unparalleled level of expertise and personalised support.

For further information, visit www.lacimagroup.com or email info@lacimagroup.com.

About Topaz Power Management LP

Topaz Power Management, LP (TPM) is based in Austin, Texas and manages competitive power portfolios owned by affiliates of Riverstone Holdings LLC, currently RJS Power Holdings LLC and its subsidiaries: Jade Power Generation Holdings LLC (Topaz Power), Sapphire Power Generation Holdings LLC (Sapphire Power), and Raven Power Generation Holdings LLC (Raven Power).

RJS Power Holdings LLC is an independent power producer operating in the US. We sell electric energy, generating capacity and ancillary services on a wholesale basis from our fleet of fifteen power plants, totaling approximately 5,325 MW in electricity generating capability. Our fleet is located in five states, including within the PJM, ERCOT and NE-ISO regions and consists of natural gas-, coal- and oil-fired generation. We focus on achieving excellence in safety and operating performance at our power plants, compliance with all laws and regulations, managing the dispatch of our assets to maximize physical energy margin and engaging in prudent risk mitigation through contracted forward capacity sales and physical and financial hedges.

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