Testifying on behalf of EEI, on December 2, 2009, Exelon Executive Vice President Elizabeth "Betsy" Moler told members of Congress that the Federal Energy Regulatory Commission (FERC) should remain the sole regulatory authority that governs organized energy markets and the transactions that occur within those markets.
Moler's comments were part of testimony regarding financial reform and the regulation of over-the-counter (OTC) derivatives transactions, which are valuable financial tools used by the electricity industry to help reduce risk and keep costs low for customers.
In her prepared testimony before the House Committee on Energy and Commerce, Subcommittee on Energy and Environment, Moler said that any proposed regulation of governing energy trading – including OTC derivatives – should clarify FERC’s role in relationship to other federal agencies, including the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
“Clear and unambiguous authority for FERC to regulate these transactions is essential,” Moler said. “Because organized energy markets are already pervasively regulated by FERC, we see no reason for duplicative CFTC or SEC regulation in this space.”
Moler's testimony emphasized that any increased regulation or requirements placed on OTC derivatives markets by Congress should include oversight rules that allow for prudent use of these tools by “end-users,” including electric, natural gas, and numerous other U.S. companies.