Master Netting Agreement

As part of ongoing efforts to improve electric power markets and to restore investor confidence, EEI has developed a "Master Netting Agreement" to help companies mitigate credit risk and increase liquidity. This standardized contract, available for use by all companies involved in energy trading, allows trading counterparties to "net" their collateral requirements when making wholesale power trades and offset positive balances of one transaction with negative balances of another.  EEI member companies, major independent energy traders, financial institutions, and law firms collaborated in a public process to produce this important contract.

Resources

• Frequently Asked Questions
  Find answers to frequently asked questions about the Master Netting Agreement.
• Legal Landscape and the Master Netting Agreement
  Legal Landscape discusses how a netting agreement could be affected by bankruptcy and commercial laws as well as issues to consider in entering into Master Netting Agreements.
• User's Guide
  See the User's Guide  (version 1.2 January 2003), a redline comparison  of User's Guide Versions 1.1 and 1.2, or the User's Guide Summary .

EEI Staff Contact

• Aryeh Fishman, Director, Regulatory Legal Affairs, 202-508-5023, afishman@eei.org

© 2008 Edison Electric Institute