Industrial Energy Consumers of America 

The Voice of the Industrial Energy Consumers 

1155151

h Street, NW, Suite 500 • Washington, D.C. 20005 

Telephone 202-223-1661• Fax 202-530-0659 • www.ieca-us.org 

October 21, 2009 

The Honorable Gary Gensler 

Chairman - ---

Commodity Futures Trading Commission 

Three Lafayette Centre 

1155 21st Street, ·Nw 

Washington, DC 20581 

COMMENT 

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Re: CFTC Seeks Public Comment on Notice of Intent to Determine Whether 17 

Contracts Offered for Trading on the Intercontinental Exchange, Inc., Perform Significant 

Price Discovery Functions 

On behalf of the Industrial Energy Consumers of America (IECA), I am responding the ~ 'f i 

October 5, 2009, U.S. Commodity Futures Trading Commission (CFTC) Notice of Intent, ~ 2 

pursuant to the authority in Section 2(h)(7) of the Commodity Exchange Act (Act) and ~a < 

Commission Rule 36.3(c)(3), to undertake a determination whether 17 contracts offered ~ CD 

for trading on the Intercontinental Exchange, Inc. (ICE) perform significant price ---c::t 'I} C. 

d!sg?very fU~ctio~s~ _ Our evalu~tio_n has concluped tJla_ t ~lf,of the 9ontra~ts _P_ . erform a ~ ~ s1gn1ficant pnce d1scovery funct1on. • , . _ _,_, ., . , . ; . ... _. ·· _ cr. -1 •,._-:,-·. ;:__· -- -· ·-:' !' ·' 0 (') 

The Industrial Energy;Gonsumer~- oL~merica is a nqnpartjsan,association of leading . ::s 

manufacturing companies with $900billion in annual sales and with more than 850,000 

employees nationwide. It is an organization created to promote the interests of 

manufacturing companies for which the availability, use and cost of energy, power or 

feedstock play a significant role in their ability to compete in domestic and world 

markets. IECA membership represents a diverse set of industries including: .plastics, 

cement, paper, food processing, brick, chemicals, fertilizer, insulation, steel, glass, 

industrial gases, pharmaceutical, aluminum and brewing. Each of these industries is 

either significant consumers of natural gas or electricity or both. 

The IECA Board of Directors is largely comprised of individuais who are responsible for 

energy purchasing and risk management function of natural gas and electricity. 

Combined, they have facilities in every state and are qualified to make judgments 

concerning the significant price discovery function of each contract. 

The natural gas contracts include: PG&E Citygate Financial Basis Contract; Waha 

Financial Basis Contract; Malin Financial Basis Contract; HSC Financial Basis Contract; 

Dominion-South Financial Basis Contract; AECO Financial Basis contract; Permian 

Financial Basis Contract; TCO Fin,ancial Basis Contract; San Juan Financial Basis 

Contract; ·rsrco:.M3r.Financiat Basis Contract; Zqne 6-~Y Fi~ancial Basis Contract; 

Chicago Financial Basis Contract; NGPL TxOk Financial Basis Contract. The electricity 

_ contracts include: Mid'.:C Financial Peak Contract; Mid-C Financial Peak Daily Contract; 

' M)ti:c Financll:il Off-P~ak Contract 9<nd Miq7G Financial Off-Pea~ Daily Contract. .~· ~~1] - ·;-L;,'_; :;_:;!J~(i;1,~ ; ... ~!J~~~·,: ,·· .,,1 -·- l 

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Given our conclusion, we believe that Intercontinental Exchange, Inc. contracts should 

be required to come into compliance with core principles mandated by Section 2(h)(7) of 

the Act and with other statutory provisions applicable to registered entities. These 

contracts should be subject to the Commission's position limit authority, emergency 

authority and large trader reporting requirements, among others. 

IECA would be happy to meet with you and others if necessary. Thank you for your 

diligence in support of transparency and oversight of these important contracts and 

markets. 

·~~)~ Paul N. b'k{o 

President