Latest News
Broad Coalition Submits Statement to Congress on Energy Derivatives Regulation
Broad Coalition Submits Statement to Congress on Energy Derivatives Regulation
WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) today co-signed a joint statement on energy derivatives with a diverse group of electric power and natural gas industry associations representing suppliers serving every energy consumer in the country. The joint statement was filed in connection with today's hearing by the House Financial Services Committee on over-the-counter (OTC) derivatives markets.
The statement specifically expresses concern regarding proposals which would require that all derivatives transactions be centrally cleared or executed on exchanges noting that "mandating the clearing of OTC transactions would jeopardize the ability of energy providers to manage risks, increase consumers costs and increase excessive consumer exposure to market volatility." The group of energy associations believes that "reform to the OTC derivatives markets should increase transparency and oversight to provide confidence to market participants and consumers in the fairness of these markets."
EPSA President & CEO John E. Shelk said, "It is clear from the collaboration of associations representing such a broad range of energy interests that well-balanced oversight of the OTC markets is an important issue in the energy industry. As EPSA has noted, forcing OTC transactions onto a centrally cleared exchange could unnecessarily impose untenable cost increases on business and consumers and limit the product and service offerings companies can provide to energy consumers. 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."
Speaking about the recent legislative discussion draft issued by House Financial Services Committee Chairman Barney Frank (D-MA) the joint statement noted, "This group of energy associations would also like to acknowledge the constructive and thoughtful discussion draft put forward by Chairman Frank, which reflects a number of the concerns that we have raised to date. We particularly appreciate the draft bill's recognition of the importance of maintaining the OTC markets for risk management purposes." EPSA and other associations are presently reviewing the discussion draft in more detail.
Those filing the statement with EPSA include America's Natural Gas Alliance, American Exploration & Production Council, American Gas Association, American Public Gas Association, American Public Power Association, Edison Electric Institute, Independent Petroleum Association of America, Interstate Natural Gas Association of America, Large Public Power Council, Natural Gas Supply Association, National Rural Electric Cooperative Association, and U.S. Oil & Gas Association.
Statement on Proposed Reform of OTC Markets
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.