Latest News
Broad Coalition Sends Letter to Congress on Energy Derivatives Regulation
WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) joined a unique group of energy supplier and consumer associations on a letter sent to all members of Congress and the Commodity Futures Trading Commission today expressing concern with aspects of proposals to address oversight and transparency of over-the-counter (OTC) energy markets.
The letter notes concern "with proposals to impose mandatory clearing of all OTC transactions, as well as requirements to force OTC derivative transactions to be moved onto an exchange. We believe that such proposals would significantly increase costs for companies seeking to hedge risks through OTC products, as well as greatly limit, or eliminate altogether, needed customized products used for risk management." The coalitions letter concludes "that there are far better ways to accomplish the goals of greater transparency and effective regulatory oversight of OTC energy derivatives and commodities markets without mandatory clearing or forcing these products to be moved onto an exchange."
EPSA President & CEO John E. Shelk said "It is clear from this unprecedented coalition of energy supplier and consumer associations that thoughtful oversight of the OTC markets is a critical issue in ensuring affordable and reliable energy supplies. As EPSA has previously noted, forcing OTC transactions onto a centrally cleared exchange could unnecessarily delay the move to a clean energy economy by drastically increasing costs for new infrastructure. Competitive suppliers are committed to working with Congress and the Administration to ensure transparency and oversight of these markets in a manner that allows for continued efficient plant operations and necessary infrastructure investment."
Signatories of the letter include the American Gas Association, Americas Natural Gas Alliance, Independent Petroleum Association of America, American Exploration & Production Council, Interstate Natural Gas Association of America, American Public Gas Association, Large Public Power Council, National Association of Manufacturers, American Public Power Association, Natural Gas Supply Association, Edison Electric Institute, Electric Power Supply Association, National Rural Electric Cooperative Association, US Chamber of Commerce and US Oil & Gas Association.
EPSA had last month released a policy paper on energy trading.
Joint Association Letter Regarding the OTC Derivatives Issue
CONTACT: JOHN SHELK
(202) 349-0154or 703-472-8660
EPSA is the national trade association representing competitive power suppliers, including generators and marketers. These suppliers, who account for nearly 40 percent of the installed generating capacity in the United States, provide reliable and competitively priced electricity from environmentally responsible facilities serving global power markets. EPSA seeks to bring the benefits of competition to all power customers.