AGENDA 

Meeting of the “NFP Energy End User Coalition” 

National Rural Electric Cooperative Association, 

American Public Power Association and 

American Public Gas Association 

Large Public Power Council 

With Staff of the 

Commodities Futures Trading Commission 

Washington, D.C. 

September 15, 2010 

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I. The “Not-For-Profit Energy End User Coalition”

A. Description of consumer-owned coalition members 

B. “Mission critical” to American consumers and businesses – reliable, 

affordable natural gas and power 

C. Unique end user group – 

1. Comprehensively regulated energy industry – we are relatively 

small participants, with local ownership and control, cost of servicebased rates to retail consumers, and public service obligations to 

serve all consumers in service territory 

2. Extensive environmental regulations; renewable energy standards 

in many states 

3. Need regulatory certainty and long-term planning to meet public 

service requirements of infrastructure business 

4. Not-for-profit entities – large and small entities, but for each, all 

costs are borne directly by consumers 

5. Most have few assets available to be used as collateral/margin, and 

do not hold non-operating cash reserves, accounts or credit lines 

6. Energy and energy-related transactions, which may be “swaps” 

under DFA, are intrinsically tied to the physical commodity business 

7. At larger NFP EEU entities, energy supply, fuel procurement and 

environmental staffs are sophisticated – part of our core 

commercial operations 
8. Our affiliated entities are not typical corporate or independent entity 

structures. Example -- FPA 201(f) transactions 

9. Most members do not regularly use, and do not have the back 

office resources to use, exchange markets/cleared markets. 

Majority of transactions are bilateral, not on ECMs or EBOTs 

10. Most members do not regularly post or accept/hold/administer 

collateral or margin; their contract relationships are unsecured 

D. Our involvement is in a very narrow portion of the global OTC derivatives 

or “swaps” markets 

E. As consumer-owned or government entities, we take risk management 

and compliance seriously 

II. Significant commodity end user issues, that the Coalition shares, include:

A. Need to clarify deadlines regarding pre-enactment non-cleared swap 

reporting by end users – the “interim final rule” in DFA 729, CEA 

4r(a)(2)(B) – deadline October 19, 2010 

III. Significant energy end user issues, that the Coalition shares, include:

A. CEA 2(h) petitions to continue exemption for all “exempt commodities” (or 

at least all energy and energy-related, whether ECM/EBOT transactions or 

bilateral transactions) for 1 year – changes to existing business practices 

and systems and operational challenges are significant for our members in 

terms of time and cost 

B. “Tariff energy transactions” exemption process and timeline 

C. FERC/CFTC MOU process – deadline January 17, 2011

D. Position limits and large trader reporting – deadline January 17, 2011 for 

“exempt commodities” 

IV. Unique issues of importance to the Coalition

A. Definition of “commercial risk” for a not-for-profit entity 

B. “Between 201(f) transactions” exemption process and timeline 

C. Our affiliated entities are unique 

D. SD and MSP duties regarding “special entities” 

E. Record-keeping and reporting requirements – burden/benefit analysis 

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