James Carson Bio

Since 1998, my firm, RisQuant Energy, has provided risk and value management analysis, advice, information, and services to a variety of companies in the electric power industry. Clients have included power marketers, integrated utilities, retail power providers, hedge funds, and power plants.

Over that period, I developed a suite of models for a variety of power markets that quantify value and risk. The models have been used to value the forward curve from next day up to three years. They have also been used to value exotic derivatives, forward exercise option contracts, daily exercise option contracts, power plants, load obligations, and weather derivatives. The models can value these elements individually, or in complex portfolios to assess value, earnings and cash flow at risk.

These models can be deployed for both liquid and illiquid markets. They can also be readily integrated into control systems.

RisQuant Energy has also published a set of detailed temperature distribution statistics for twenty-three locations where weather derivatives are listed on the CME. The data covers thirty to sixty years, allowing detailed reporting of distributions.

About RisQuant

The RisQuant blog is intended to foster intelligent discussion of practical issues in the power trading space, with a particular focus on risk management.