Five Questions on Electricity Hedging and Trading with Ray Robey '02 MMF, CFA, Director of Fuel Supply and Energy Hedging, UNS Energy
What type of professional experience have you had so far?
Since graduating from the MMF program, I have worked for UNS Energy in various capacities. I began as a credit and risk analyst, then transitioned to wholesale marketing and trading analyst, energy trader (natural gas and electricity), portfolio manager (hedge planning and trading) and day-ahead power and gas manager.
My current position is director of fuel supply and energy hedging, which consists of planning and directing procurement of coal, natural gas, natural gas transportation, long-term electricity and risk management.
What surprised you about the hedging and trading of electricity?
The electricity markets are quite unique in the western United States (excluding California). Without centralized clearing and consistent volume, there are times when there is little liquidity in the over-the-counter trading markets. When potential arbitrage opportunities arise, it can be difficult to extract full value due to the challenges of market structure.
How did the the MMF degree prepare you for your current role with Tucson Electric Power within UNS Energy?
The MMF program required practical applications of financial theories and incorporated many topics that I utilize consistently, such as game theory and derivatives valuation.
What is the one thing you know about the field now that you wish you knew as a student?
Don’t shy away from valuation of complex instruments.
What would you look for if hiring new MSF graduates?
We look for creativity, dynamic personalities and diverse interests. These traits usually yield out-of-the-box solutions to problems.
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