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CFTC Commissioner O’Malia, FERC Commissioner Moeller to Host Joint Meeting on Energy Clearing

Washington, DC - Commissioner Scott D. O’Malia of the Commodity Futures Trading Commission (CFTC) and Commissioner Philip D. Moeller of the Federal Energy Regulatory Commission (FERC) will host a joint meeting at 9:00 a.m. on Tuesday, June 22, 2010, to consider issues related to clearing and inter-ISO/RTO netting in the energy markets.

The Committee of Chief Risk Officers (CCRO) has been invited to present its report titled, “Power Market Netting Best Practices.” Presentations by staff from the CFTC and FERC and a roundtable discussion with CCRO members and others interested in inter-ISO netting concepts will follow.

“Over the last decade the energy sector has expanded the utilization of clearing. The CCRO Whitepaper proposes expanding the use of inter-ISO clearing and netting opportunities to lower risk and improve the utilization of capital in these markets.   I am interested to learn more about the opportunities and challenges facing the electricity sector before taking the next steps in netting and clearing trades on a larger scale,” stated CFTC Commissioner O’Malia.

“Many questions and issues have been raised about improving the netting and clearing functions in wholesale electric markets.  We’re spearheading this roundtable to discuss these issues in an effort to better protect electric consumers in these markets,” stated FERC Commissioner Moeller.

House and Senate negotiators are expected to start reconciling differences between the financial reforms bills passed in the respective chambers of Congress.  Both legislative proposals significantly expand the use of central counterparty clearing houses as a means to mitigate risk with exceptions for end users.

The CFTC will host the meeting at its Headquarters’ hearing room. Members of the public interested in participating can visit the CFTC website for more information, www.cftc.gov.

For those unable to attend the hearing, a listen-only teleconference capability is available. Participants should be prepared to provide their first name, last name and affiliation. The Conference ID # is 82632168, and the “Leader’s Name” is “CFTC CFTC”. The dial-in numbers are:

Domestic: (877) 312-3898

International Toll: (404) 537-3379

Members of the media can contact Allison Lurton at 202-418-5349 for more information. CCRO White Papers and registration available on the CCRO website, www.CCRO.org.

Market Clearing in the Energy Industry, February 2006 (http://ccro.org/content?type=whitepaper)

Power Market Netting Best Practices, March 2010 (http://assets.ccro.org/original/PMC_Netting_Report3-22-10.pdf)

Last Updated: June 16, 2010