WASHINGTON, DC - McDermott Will & Emery currently advises the Committee of Chief Risk Officers, which, as reported on the front page of the November 19th Wall Street Journal in the Money & Investing section, issued four white papers containing recommended best practices for energy merchant companies. The white papers contain recommendations for companies with significant merchant energy activities to use in managing risk and more clearly reporting the results of these activities. The Committee represents 31 energy companies that account for approximately half of the power and natural gas transactions in the United States.
The best practices documents, which were made public on November 19 at a press conference in Washington, D.C., conclude the initial phase of the Committee's work. The Committee is now working on Phase II activities, which include white papers providing guidance on creating more credible and verifiable forms of market price indices, and on what constitutes an adequate amount of capital and liquidity needed to support a merchant energy business.
McDermott Will & Emery has provided "soup to nuts" legal representation to the Committee, including advice on incorporation, creation of association membership requirements and voting procedures, antitrust advice in creating voluntary standards, and assistance in interacting with various federal regulatory agencies. McDermott will continue to provide advice to the Committee as it enters Phase II of its activities. The Firm's legal team advising the Committee includes Ray Jacobsen, head of the Firm's Regulation and Government Affairs Department, and associate William Diaz, all resident in the Firm's Washington, D.C. office.
For additional information, including a current list of member companies and copies of the best practices documents are available on the Committee's Web site at http://www.ccro.org.