Electric cooperatives rely on financial instruments and bi-lateral contracts to hedge risk and protect their consumer-members from volatility in the energy and financial markets. These commercial risk management tools are essential to the development and financing of energy infrastructure to serve America’s demand for energy in the years to come.
NRECA is working closely with cooperative members and other energy stakeholders to ensure that the Commodity Futures Trading Commission, as it implements new regulation under the Dodd-Frank financial reform bill, understands the needs and goals of cooperatives.
Where We Stand:
- Electric cooperatives support transparency and oversight of the over-the-counter (OTC) derivatives market.
- Electric cooperatives must be allowed to continue using OTC derivatives markets to insulate our customers from volatile wholesale electric power and natural gas prices.
- NRECA opposes unnecessary or burdensome regulations that could impose unnecessary costs, or hamper or even prohibit the participation of cooperatives in energy markets.
- NRECA opposes the imposition of duplicative and possibly conflicting regulation of the same markets and transactions by multiple regulators.
- Federal Energy Regulatory Commission expertise in and jurisdiction over energy markets should not be supplanted by the CFTC.