AC E Po w e r P r o d u c t s S M
ACE Power Products: Evolving Insurance Products for Covering Outage and Market Risk The ACE Group of Companies is one of the world’s largest providers of insurance and reinsurance. ACE leverages its unique strengths and broad expertise to deliver specialty insurance and tailored products for clients worldwide.
ACE Power Products is uniquely positioned to meet the power industr y’s evolving risk management needs. ACE introduced shor t-term outage protection in the summer of 1998 with PowerBackerSM and launched the secondgeneration Long-term Outage Program in the fall of 2001. ACE has insured more than 70,000 megawatts of power generation concurrently during summer peak period and has insured multiples of this over the five years that ACE has offered this coverage. ACE Power Products is a specialized underwriting team within ACE USA and is the leading insurance provider of risk management solutions for the electric power industry. ACE USA, headquar tered in Philadelphia, is the U.S.-based operating division of the ACE Group of Companies, headed by ACE Limited (NYSE: ACE). PowerBacker PowerBacker provides flexible protection and immediate loss measurement for par ticipants in deregulated energy markets as a bridge between the physical exposures of unplanned outages and the financial exposures of spot electricity markets. PowerBacker is also available in the United Kingdom and Australia. PowerBacker has been utilized by cogeneration facilities from as small as 2 megawatts up to 12,000-megawatts-plus systems to protect against shor t-term outage events concurrent with high replacement power costs. Coverage is structured based on customer need from indemnification for catastrophic risk exposures and capping the cost to switch fuels to var ying coverage based on weather to offer increased protection during peak load periods, to name a few applications.
Long-Term Outage Program The Long-term Outage Program provides coverage for generating units to protect against a potential negative earnings shock. This standalone program is not linked to a property policy and can cover a particular exposure, including cost of forward purchased power, debt payment, fixed costs, or alternative fuel costs. This coverage complements PowerBacker and other property insurance coverage by offering a stipulated value indemnity for longer-term events, simplifying the claims process and allowing for greater flexibility in structuring coverage.
ACE Power Products: Your Risk Management Partner As industry experts in generation risk, power trading, engineering, finance, and insurance, ACE Power Products concentrates on energy risk management. ACE Power Products has first-hand knowledge of the customer’s changing needs and develops innovative solutions quickly. Customers face less basis risk to their underlying need than with a “commodity” solution. The basis product concept – “eventdriven coverage for events that affect your organization” – also means efficiently priced coverage. Not a commodity provider, ACE Power Products will not force a solution on a customer to make it a “trade-able” product. There are no scheduling requirements and other mandates. Indemnification is through a look-back mechanism. ACE Power Products is not a potential competitor in your business, retaining underwriting information in strict confidence. The ACE policy form is clear, concise, and tested. ACE’s policies also have cancellation provisions unlike commodity transactions, allowing for flexibility if an insured’s situation changes prior to the effective date of the policy. ACE Power Products policy limits are available up to $100 million. To learn more about creating a customized solution to the risk management needs of the power generating industry, contact ACE Power Products at
[email protected], call 1.800.356.2827, or contact your insurance broker.
w w w. U t i l i t i e s P r o j e c t . c o m
Solution Provider
www.ACEpowerproducts.com CONTACT INFORMATION Dominic J. Frederico Chairman, ACE INA Holdings Susan Rivera President, ACE INA
ACE Power ProductsSM TL30N Two Liberty Place 1601 Chestnut Street P.O. Box 41484 Philadelphia, PA 19101-1484 Phone 800.356.2827 Fax 215.640.5696 www.acelimited.com
[email protected] BUSINESS CONTACT
Patricia Goudarzi Senior VP ACE Power Products
[email protected] Phone 215.640.1893
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