Member article: ACES Power Marketing

During our Spring Coal Forum, we welcomed a list of new members to the
association. An oversight caused us to miss one of those valued new
members in the list. As a means of addressing that oversight, we have invited ACES Power
Marketing to submit a short introductory article to the Coalblog.

We would also like to officially welcome ACES Power Marketing as a member and look forward to a long and fruitful relationship.

ACES Power Marketing (APM) has been a Member of the American Coal Council since November, 2008. APM is a nationally-recognized energy management firm owned by 17 power supply cooperatives (including 16 G&Ts), several of whom rely substantially on the coal-fired generation they own to serve the energy needs of their member co-ops serving over 6 million consumers. Coal has been a fuel-of-choice for co-ops for decades, because it can be reliably supplied, transported and burned in cost-effective manner. Furthermore, for many of APM’s members, hedgeable coal-related costs are often embedded in the power purchase agreements they have with other power suppliers.

The primary business of APM is providing a broad suite of energy risk management and transaction execution services that are applicable to every type of power and fuel supply for its 17 members. APM also provides its services to a wide variety of energy industry participants, including non-member power supply co-ops, municipal utilities, public power agencies, independent power producers and renewable energy developers.

With specific regard to coal-fired generation resources, the APM services most relevant include sophisticated portfolio modeling and analysis, highlighting risk and return tradeoffs in power hedging strategies. Additionally, APM provides guidance and execution in the development of coal purchasing strategies, the hedging of fuel price risk in supply and transportation contracts, and the compliance with evolving emissions regulations.

Because APM actively tracks climate change initiatives (including the possibility of CO2 cap-and-trade) and helps formulate and execute hedge strategies for future power supply alternatives, APM is uniquely positioned to provide guidance on strategies designed to respond to the political and regulatory concerns of coal-fired generators. Although APM can offer advice, it does not assume an advocacy role on coal-related issues.

APM has a broad geographic reach. Its member and customers stretch from northern Maine to Baja, California, and from the Pacific Northwest to the Florida peninsula.

APM Members include:

  • Arizona Electric Power Cooperative, Inc.
  • Big Rivers Electric Corporation (Kentucky)
  • Brazos Electric Power Cooperative, Inc. (Texas)
  • Buckeye Power, Inc. (Ohio)
  • Central Iowa Power Cooperative
  • East Kentucky Power Cooperative
  • Golden Spread Electric Cooperative, Inc. (Texas and Oklahoma)
  • Great River Energy (Minnesota)
  • Hoosier Energy Rural Electric Cooperative, Inc. (Indiana)
  • North Carolina Electric Membership Corporation
  • Oglethorpe Power Corporation (Georgia)
  • Old Dominion Electric Cooperative
  • Southern Illinois Power Cooperative
  • Southern Maryland Electric Cooperative, Inc.
  • Sunflower Electric Power Corporation (Kansas)
  • Wabash Valley Power Association, Inc. (Indiana)
  • Western Farmers Electric Cooperative (Oklahoma)

The American Coal Council has an association objective of "supporting the business, marketing and management capabilities of American
coal suppliers, coal consumers, coal transporters, coal traders and
coal support service companies. We’re proud to offer our members the opportunity to showcase their companies and products.

05. May 2009 by Jason Hayes
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