Energy/utility risk management to energy trading?

Just did a more thorough search of past posts. I came away with the impression that some people definitely have spent some time in risk before moving on to energy trading (the financial side, not sure about physical).

Thoughts on this? I've gotten some interest from a couple small/mid-size utilities and I'm just trying to gauge how valuable a position like this would be in the long run.

My initial thought is that 1-2 years in risk before moving on to a masters in math or economics at a good school would help me to secure a job on a desk.

I'd like some feedback if possible, got a few interviews coming up. Thanks!

Only reason I'd get a masters is to restart my education (strong regional state school but non-target), take advantage of on-campus recruiting, and take an internship in between years. It might not be necessary, depending on my ability to network and get an offer.

I have an interview soon with the utility, what should I expect?

i'd only consider going back to school if you got into an Ivy or similar. Experience speaks more than education, once you have your foot in the door, it's only up to you how fast you want to get to trading. If you work in a decent size company, make friends with traders, ask them questions, express your interest. For the most part, people will be willing to help you out as long as you approach them the right way. One thing I highly recommend is going on ISO websites as they have lots of modules and videos they explain power markets in very great detail. It's amazing that no one on this forum has mentioned this so far. Google PJM, MISO, CAISO, and then go to the training page. It's an amazing resource that most people don't take advantage of.

What positions will you be interviewing for?

Noted on grad school. I'd only go if it was a top 10 program in whatever field it's in - otherwise it wouldn't be worth the debt.

The positions are related to managing the commodity risk inherent in their energy trading, marketing, wholesale and retail divisions.

Thanks for the tips!

Agreed. I'm not too familiar with what to expect for middle/back office interviews, obviously expect the fit and behavioral questions.

Diggin' the username "you know i always wanted to pretend to be an architect!"

energy trading one of the few areas that does not care that much about non-target/target stuff, so do not worry too much about that one. The only thing a masters in math/economics is going to help you truly with is congestion or more quant side of power trading so make sure you know want to do at first.

The interview should be mainly about fit and seeing how you think. Also how you deal with certain problems and basics of energy risk nothing too indepth. Yes have met lots of people who move from risk analyst/manager to a trading position over time helps with understanding exposures and so forth.

VandalayIndustries

What are the exit opportunities from being in the risk management department at a utility? The position would entail analysis around hedging energy exposure with financial contracts (futures, swaps, options, etc) , with some administrative work centered around trade entry, trade reconciliation, market pricing, etc.

It's my goal to break into energy trading with modest experience, and this seems like a doable entrance into the energy space. Is it a waste of time or could I leverage it into a trading role?

would you have any contact with people in trading positions?

@VandalayInsustries- I have the same exact strategy, except I'm one step behind you. In two months, I'll be graduating with majors in math/stats/econ and am looking to break into risk management for a utility or retailer. To demonstrate my interest, I did academic research on retailer risk aversion techniques, which boiled down to a least squares monte carlo simulation. My goal is to move into energy trading as well. Any advice as to how I can make the first jump to risk mgmt?