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Ex Parte Meeting for Proposed Rule 75 FR 63080

  • Title:
    Reporting Meeting with Not For Profit Electricity End Users

    Ex Parte No: 253
    Date: 1/19/2011

    Meeting Date:

    Wednesday, January 19, 2011

    CFTC Staff:

    Dan Berkovitz
    Julian Hammar
    Lee Ann Duffy
    Mark Fajfar
    Jeff Burns
    Susan Nathan
    David Taylor
    Irina Leonova
    Tom Leahy
    Jeff Steiner
    Peter Sanchez


    National Rural Electric Cooperative Association
    American Public Power Association
    American Public Gas Association
    Large Public Power Council
    ACES Power Marketing
    Schiff Hardin LLP
    Wilmer Cutler Pickering Hale and Dorr LLP

    External Attendees:

    Russell Wasson (National Rural Electric Cooperative Association)
    Julie Barkemeyer (National Rural Electric Cooperative Association)
    Susan Kelly (American Public Power Association)
    David Schryver (American Public Gas Association)
    Noreen Carter-Roche (Large Public Power Council)
    Jeffrey Walker (ACES Power Marketing)
    Patricia Dondanville (Schiff Hardin LLP)
    Paul M. Architzel (Wilmer Cutler Pickering Hale and Dorr LLP)
    Josh Kans (SEC)
    Peter Curley (SEC)

    Additional Information:

    NFPEEU, as a whole, stressed that they are not financial entities, engage in no speculation and perform a public service.
    NFPEEU believes its members are in a special situation because they are all non-profit entities and any increased costs they bear must be passed directly to ratepayers (i.e.., they do not have shareholders to absorb losses).  Also, in terms of their use of swaps, they are required to enter into a variety of different types of customized swaps to reduce the risks of energy commodity price fluctuations because they are mandated to provide continuous electric service to their customers and must deal with a variety of variable conditions, such as changing weather patterns and different sized customer bases.  The swaps they use are mostly energy commodity swaps. 
    NFPEEU commented on several rulemakings.
    Interim Final Rule on Record Retention:  Which records should NFPEEU members retain regarding the valuation of electricity and other energy commodity swaps, and regarding the risks hedged by the swaps?  NFPEEU commented that its members should be required to retain the records that they believe in good faith are relevant to valuation and hedging.  Also, NFPEEU believes that its members will have special difficulty in distinguishing records when a single master agreement covers both financial swaps and physical electricity and other commodity swaps.  The smaller members will have difficulty managing and tracking the documentation.

No records to display.