Meeting Date:
Wednesday, March 23, 2011
CFTC Staff:
Eric Juzenas
Dan Berkovitz
Terry Arbit
Mark Fajfar
Organization(s):
Next Era Energy Power Marketing, LLC
Next Era Energy Resources, LLC
Delta Strategy Group
Cadwalader, Wickersham & Taft LLP
External Attendees:
Brent Hendry (Next Era Energy Power Marketing, LLC)
Lawrence Silverstein (Next Era Energy Resources, LLC)
Graham Harper (Delta Strategy Group)
Paul Pantano (Cadwalader, Wickersham & Taft LLP)
Additional Information:
Next Era elaborated on points in its comment letter dated February 22, 2011 (Comment No. 27816). Next Era described its offer of swaps to customers in conjunction with its offer of electric power. In summary, a customer may have a choice between purchasing power from Next Era or purchasing power on the market at a floating price and entering into a fixed/floating swap with Next Era where the customer pays a fixed price and receives the floating market price. Next Era generally limits the volume of such swaps to the volume of power that it sells at a floating price (so that such swaps serve to convert the floating price that Next Era receives for power to a fixed price.
Next Era also said that they believe a person that limits itself to selling options that require physical settlement should be excluded from the definition of swap dealer.
