Senior Market Risk Specialist

Minimum Pay Rate: $119,641.60 

Maximum Pay Rate: $158,433.60 

Civil Service Status: Civil Service 

Posting Type: Open 

 

This posting may close at any time without notice after October 29th, 2024 so interested applicants are encouraged to apply early. This posting intends to fill one (1) regular full-time position, and establish an eligibility list which may be used to fill future vacancies over the next two (2) years. 

 

The Commodity Risk team is thrilled to announce an exciting opportunity for a Senior Market Risk Specialist. This pivotal role will be at the forefront of a newly established stochastic forecasting initiative within commodity risk, offering a unique chance to influence the future direction and strategy at SMUD.

 

In this dynamic position, you will be responsible for building and modeling in Python, R, and SQL, as well as working with industry models for stochastic analysis. Collaborating closely with the trading and settlements groups, you will ensure accurate and timely execution of trades while developing and managing budgets, forecasting market trends, and conducting comprehensive risk assessments.

 

As a Senior Market Risk Specialist your expertise will directly contribute to SMUD’s ambitious goal of achieving zero carbon emissions by 2030. By minimizing commodity risk, you will play a crucial role in keeping costs low for the community, ensuring both environmental and economic sustainability.

 

Join us and become part of a team dedicated to driving innovation and excellence in commodity risk management. Your contributions will shape the future of SMUD and the broader energy landscape, making a tangible impact on our community and environment.

 

Purpose

To perform portfolio risk assessment by providing technical analysis and review of physical and financial power purchase options and hedges and alternative power production, correlations between energy prices and other variables, financial and commodity market futures prices and basis differentials and profitable opportunities in the medium-term wholesale energy market to ascertain the trade-off between profitability and cost stability, provide practical and feasible risk-neutral, cost effective energy trading solutions, and support SMUDs ability to manage its energy portfolio and financial risk.

Nature and Scope

Serves as a technical or functional expert or consultant providing expertise and/or direction in one or more areas of a professional discipline and assists in resolving complex problems and working on complex projects.  May assist in developing lower level personnel.

Duties and Responsibilities

• Synthesizes energy risk management and portfolio optimization theories and techniques with market results by evaluating the risk characteristics and market value of physical and financial power and gas purchases and sales to SMUD; and developing the risk/profit trade-off associated with changes in the operation of SMUD owned and/or controlled power plants. To assist in providing market and risk evaluation of physical and financial options and hedges.
• Estimates the risk premiums embedded in retail energy sales contracts to support SMUD rate design efforts. To assist in quantifying the premium value to assign to risk in designing rates for retail energy sales contracts.
• Coordinates data capture with various SMUD units and develops and maintains a database of future, current and historical bulk power and gas prices and data related to other variables having an impact on bulk power and gas prices. To ensure the capture and availability of historical, current and future bulk power and gas rates and variables for modeling of pricing and SMUD rate design.
• Model retail contracts and evaluates their impact on SMUDs overall risk exposure. To ensure assessment of retail contract impact on SMUD risk exposure.
• Applies statistical and mathematical techniques to market data to analyze pricing trends and volatility. To ensure analysis and extrapolation of market prices and volatility to model SMUD risk.
• Performs the technical analysis needed to estimate the risk characteristics and value to SMUD of alternative power supply and retail contract options. To ensure that physical and financial options and hedges are examined for value to SMUD risk.
• Develops and provides effective reports and presentations for management of findings of analyses and evaluations of various market, portfolio and economic factors to support management decision making and formulation of risk management policies. To ensure timely, accurate management reporting of market risk assessment findings to support SMUD decision making and policy formulation.
• Maintains technical skills by keeping current in energy and financial commodities trading techniques; understanding the financial and risk implications of current and emerging bulk power and gas issues; tracking changes in power and gas markets and industry or regulatory restructuring; and maintaining knowledge of SMUD portfolio optimization and related policy decisions. To ensure that in-depth and state-of-the-art technical expertise is available for market risk assessment to ensure SMUD financial protection.
• Assists in planning, coordinating, prioritizing, monitoring, and guiding work activities with work-unit employees to meet established task objectives and deadlines by following established policies and precedents; communicating with team members and incorporating and their input to processes and techniques; promoting staff safety and a safe work environment; participating as a team member in accomplishing objectives; and referring problems to supervision where solutions are not readily achievable. To participate in assigned tasks of a work unit in order to meet defined unit goals and schedules and comply with SMUD schedule, quality, quantity, safety and performance standards.
• Performs related duties as required.

Required Education

BS/MA degree from an accredited college or university majoring in Economics, Engineering, Business Administration, Mathematics, Statistics or related field or equivalent experience.  If no degree, at least nine (9+) years of relevant experience is required.

Required Experience Qualifications

At least five (5+) years of progressively responsible relevant work experience in a combination of resource/portfolio planning, pricing, contract analysis, operations, finance, engineering, energy trading, energy marketing or related fields.
 

Knowledge Of

SMUD policies, procedures, applicable MOUs and other special agreements; energy or financial commodities trading; financial and physical commodity markets and practices; electric power industry at an advanced level; WSPP power markets; restructured California power markets; California ISO, FERC and other applicable regulatory rules and procedures; physical generation resources and their operation; utility scheduling and trading practices; micro-economics and quantitative and statistical methods; decision analysis portfolio optimization, operations research and options pricing; safety policies, practices and procedures; standard operating procedures for modern office equipment including a computer and applicable software; and, English grammar, punctuation and vocabulary standards.

Skills To

Develop advanced quantitative analytical techniques for data analysis; develop analytical applications in person computer based spreadsheets and databases; effectively communicate findings to internal/external audiences; interpret and apply SMUD policies, procedures, applicable MOU and/or other special agreements; synthesize energy risk management and portfolio optimization theories and techniques with market realities; provide practical and feasible risk-neutral and cost-effective energy trading solutions; assist in developing and presenting comprehensive energy risk management and financial recommendations balancing analytical results with market realities; solve problems of medium complexity creatively and pragmatically; handle stress well under time pressure; collaborate and achieve “win-win” solutions with cross-departmental team members; utilize a personal computer and/or computer terminal systems and software relevant to the job; communicate effectively orally and in writing internally/externally; establish and maintain effective working relationships internally/externally.

Desirable Qualifications

• Advanced proficiency in statistical analysis and modeling using Python, R, and/or SQL.
• Experience with data visualization tools (e.g. Jupyter Notebook, R Shiny, PowerBI)
• In-depth knowledge of the energy and gas sectors.
   

Physical Requirements

Applicants must be able to perform the essential job functions with or without a reasonable accommodation.

Sacramento Municipal Utility District (SMUD) - Who We Are

As the nation's sixth-largest community-owned electric service provider, we're proud of our reputation as one of the best places to work in Sacramento. Our employees tell us in our engagement surveys they're "Happy, satisfied and engaged" which helps create a workplace that best serves our customers. Sacramento was named as the 2nd happiest place to work in America by Forbes Magazine. Lake Tahoe, San Francisco and the world-renowned Napa Valley are within easy driving distance of our locations.

 

Our Commitment to Diversity & Inclusion

SMUD celebrates diversity, and inspires an inclusive culture based on trust and respect to create belonging and connection among our employees, customers, and communities. By working together, we are powering positive, equitable opportunities for all. We aspire to be a workplace where you can be yourself, achieve your best, and thrive together. 

 

An example of our commitment to Diversity, Equity, Inclusion, and Belonging is when SMUD signed the California Equal Pay Pledge in 2020. This requires equal pay for employees who perform “substantially similar work,” when viewed as a composite of skill, effort, and responsibility at the time those employees started within that classification.  As such, initial hiring salary range is not subject to negotiation and salaries will vary over time based on performance.

 

SMUD is proud to be an equal opportunity employer. We do not discriminate in employment decisions on the basis of race, color, religion, gender (including pregnancy), national origin, political affiliation, sexual orientation, gender identity or expression, marital status, disability, genetic information, age, veteran status, or any other applicable legally protected characteristic. All employment decisions are made on the basis of individual qualifications, merit, and business needs and interests.

 

Why Sacramento, California?

The capitol of California, Sacramento is the state's sixth-largest city, and the 35th largest in the U.S. Local universities include California State University, University of the Pacific's McGeorge School of Law, and the University of California, Davis and several competitive community colleges. The UC Davis Medical Center, a world-renowned research hospital, is one of more than a dozen hospitals and shared services centers in the Sacramento region. Part of the agriculturally-rich Central Valley, Sacramento is at the forefront of the farm-to-fork food movement. Northern California is home to some of the country's top technology companies, including Google and LinkedIn, and a multitude of startups in many industries. Sacramento is home to the NBA Kings, the River Cats (AAA baseball), the Republic FC (soccer) and the San Francisco Giants, NBA Warriors and NFL 49er's aren't far away. Sacramento offers an affluent liberal arts community with Broadway, Mondavi Center, Crocker Museum and summer musical theater to name a few.

 

Hybrid Work

This position may be eligible for SMUD's remote work employee benefit, the schedule of which will be determined by the successful candidate and the Hiring Manager. SMUD takes pride in powering the Sacramento region community where we live and work. We value the strong working relationships we develop with our colleagues. Our approach to remote work will continue to evolve. Please be aware that should SMUD’s business needs change, emergencies occur, or various other reasons arise, you may be required to report onsite on a part-time or full-time basis.