Please be advised that the Passport Implementation Group will meet
For more information on how to use the Working Group Features, please refer to the videos found on our homepage or Click Here.
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For more information about this working group go to CCRO Passport Implementation
If you have joined as a participant you will be able to enter the secure site.
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Tim also had some comments in that document regarding additional suggestions about organizing & clarifying the questions. This morning, Sid sent-in some of his comments & edits of that document - this should provide the latest draft for our conference call today...
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Energy Risk USA conference.
Join us for great food and networking with your peers and members of SAS RiskAdvisory and the CCRO. Restaurant Wine Director, Jose Perez, has helped us choose wines for the evening. He will join us and share his knowledge to set the stage for an enjoyable dining experience and inspired conversation.
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The survey is intended to document initial market participant experience with liquidity changes in energy transactions occurring within the last six to nine months since CFTC Dodd-Frank implementation.
An adequate response to this survey will:* Allow the CCRO to establish the industry’s foundational knowledge of Dodd-Frank impacts on energy markets
* Facilitate a discussion about monitoring for unintended consequences to liquidity
Given expectations for policy consideration of this matter in the near future, CCRO would greatly appreciate your taking a few minutes to answer these questions promptly.
From the Leadership Team for the Dodd Frank working group,
Click here for the Dodd-Frank and Market Liquidity Survey
Questions should be directed to:
admin@ccro.org<mailto:admin@ccro.org> or 281-825-4870
Executive Director, CCRO
281-825-4870 office
281-382-2538 cell
In response to inquiries from members and policy-makers, the Committee of Chief Risk Officers (CCRO), with the assistance of Deloitte and Touche LLP, polled market participants with a small set of straightforward questions regarding market liquidity.
To date, 20 participants have responded. Most respondents are wholesale marketer/traders, merchant generators, or natural gas producers. Two municipal entities participated.
Overall, the survey focused on getting the “pulse” of the current natural gas markets. The majority of respondents detected a decrease in market liquidity and a decrease in counter-parties available. Respondents are split with regard to whether the nature of counter-parties available had shifted toward financial institutions or not.
Click here for the Dodd-Frank and Market Liquidity Survey
Questions should be directed to:
admin@ccro.org<mailto:admin@ccro.org> or 281-825-4870
Executive Director, CCRO
281-825-4870 office
281-382-2538 cell
Please join us Monday April, 22nd from 4:30PM est to 5:00PM est/3:30PM cst to 4:00PM cst for the Updating Your Risk Policy call.
If you have joined as a participant you will be able to enter the secure site.
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This exciting initiative of CCRO members and contributors seeks to create a new resource of benchmarking around budgets, organizations, and current practices of risk and compliance functions within energy companies.
Proposed survey topics include seven areas of interest:
The working group leadership is arranging a time & date for the next call, information will be sent to all those registered for the working group. Check the box in your personal profile online to join this working group...
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As we discussed in the WG call today, please do send me anything you can put together that details:A big "thank you!" goes to all of you that respond with your information promptly....the working group leadership is eager to get to work on crafting the best questions that most everyone can understand and apply to their own company.
1) How your risk organization fits in your broader corporation
2) Organizational specifics about your company's risk function(s)
I will render anonymous all materials that you send to me, and only then provide it to the working group leaders. We are planning to use this material from several active working group companies as context for efforts to design survey questions for the "Structure of the Risk Organization" section....questions that will accurately depict organizational specifics for a wide range of energy company types that will be taking our survey in the future.
With your quick turnaround of info for this request, we hope to have some initial ideas to discuss with the group by the next Monday call.
Thank you for your help,
Bona Fide Hedges Discussion March 19th
Now that the task force has decided to tackle the specific issue of Bona Fide Hedges, it has been decided that it is best to open to detail discussion to the wider Dodd Frank Working Group. Starting with an extended discussion at the March 19th meeting.
Jim Allison added slides for the CCRO general meeting discussion on the 19th of March - and a spreadsheet that supports analyses from the presentation....
CLICK HERE to view the discussion slides
CLICK HERE to view the analysis spreadsheet
10:00 Central Time, 90 min
Members and meeting guests are encouraged to join in this open discussion which will include introductory comments from Jim Alison, Ann Marie Hanley, Glen Mackey, Mike Prokop, CCRO Contributor Vince Kaminski, and others.
For more information, join the Bona Fide Hedges task force....click on your name / profile at the top right of the screen.
CLICK HERE TO GO TO THE TASK FORCE WEBSITE
At issue is the possibility that proposed CFTC regulatory language may lend itself to different interpretation, versus existing language found in statutory definition. This definition of course is specifically which contracts will qualify as "bona fide hedges" for certain regulatory exemptions.
One central issue here arises from the best practice "probabilistic view" of future exposures, and the associated risk management actions taken in advance to manage those potential exposures...
The task force is hoping that this discussion will help to advance their work efforts with a firm grasp on the views of members and experts. Their goal is to quickly publish a CCRO document or article that will provide expert, independent perspectives. Clarifying this definitive issue for energy trading.
BE SURE TO CHECK-OUT THE ON_GOING DISCUSSION FOR THE WORKING GROUP - it provides some additional thoughts that will be helpful for participation in the discussion...
Jim Allison added slides for the CCRO general meeting discussion on the 19th of March - and a spreadsheet that supports analyses from the presentation....
CLICK HERE to view the discussion slides
CLICK HERE to view the analysis spreadsheet
John W. Judge is vice president, Coporate Risk and chief risk officer. He oversees FirstEnergy’s Credit, Enterprise Risk Management, Insurance, and Risk Control functions.
John began his career with FirstEnergy in 1998 as a senior staff analyst. He was promoted to manager, Generation Strategy, then was named manager, Cross Business Initiatives. In 2001 he was promoted to director of Information Technology Strategy. In 2002 John was named director, Gas Product Line, for the company’s natural gas business. In 2004 he was named director, Commodity Supply Planning, for FirstEnergy Solutions, the company’s competitive subsidiary. In 2007 he was named director, Integrated Business Planning, and in 2009 was named director, Supply Chain. He was promoted to vice president, Supply Chain in February 2011 and moved to his current position in August, 2012.
Prior to joining FirstEnergy, he was employed by Bell Atlantic Corporation in a variety of business analyst positions.
John graduated from the University of Miami with a Bachelor of Arts Degree in economics and international studies. He earned a master’s degree in business administration from Georgetown University.
John is a member of the graduate faculty at the University of Akron where he teaches in the Finance Department. He serves on the boards of the Ohio & Erie Canalway Coaliton, Habitat for Humanity of Summit County, and the Barberton Community Development Corporation. He is a graduate of Leadership Akron Class XXV.
John, his wife Jill, and their three children live in Akron, Ohio.
Mr. Stibolt leads the SDG-Galway Energy Strategy Practice, an alliance between Strategic Decisions Group and Houston-based Galway Group that serves clients in upstream and midstream oil & gas, LNG, and energy marketing & trading. A former partner in SDG Oil & Gas Practice, Mr. Stibolt is currently a managing director at Galway. He is also Global Finance Advisor to the New Zealand-based Tukia Group and serves on the board of directors of the Denkmann Companies.
Prior to his current position, Mr. Stibolt was senior managing director and chief risk officer of Bear Energy LP and, following the merger of the Bear Stearns Companies, Inc., into JP Morgan Chase, managing director in the JP Morgan Global Commodities Market Risk organization.
Earlier in his career, Mr. Stibolt was senior vice president of strategy, portfolio & risk management for Suez Energy North America, Inc., vice president of risk strategy for Sonat Energy Services, manager of decision analysis for Atlantic Richfield Company, and a project manager with Natomas Company.
Mr. Stibolt has been invited to testify on various energy issues by both the U.S. Congress and the FERC. He was among the founders of the Committee of Chief Risk Officers (CCRO) as SUEZ Energy's representative, and has published several articles on the topics of real options and risk management. His most recent publication, A Practitioner's Perspective on Modeling Prices and Trade in a Globalizing Natural Gas Market, appeared in a special issue of The Energy Journal in 2009.
Mr. Stibolt holds a BSE degree from Princeton University in aerospace & mechanical sciences/ engineering-physics and an MS degree from Stanford University in management science & engineering.
Dave’s current practice focuses on strategy and capital project management, with much of his work in the energy industry. Recent engagements include developing a strategy, portfolio management, and budgeting process for a large, independent oil and gas company; creating a cost and schedule risk management process for major capital investment projects at several energy clients; and creating an R&D portfolio management system for a consumer products company.
Much of Dave’s time is spent helping large energy clients analyze and manage cost and schedule risk associated with major capital projects, ranging in size from $50 million to over $40 billion. These projects include some of the largest oil field developments, processing facilities (such as LNG, Gas-to-Liquids, refineries, and petrochemical complexes), power plants, and infrastructure investments in the world.
Dave has a B.S. in Chemical Engineering from the University of California, Davis, and an MBA from Stanford University. He is a consulting lecturer in Stanford University’s Department of Management Sciences and Engineering.
CLICK HERE for Dave's presentation at the March 19, 2013 CCRO meeting ... continuedMichael Finger
Michael has twelve years of experience in the energy business. Prior to EDP Renewables, Michael spent four years with the Boston Consulting Group primarily serving clients in the power and gas industries on topics such as coal fleet environmental retrofit decisions, gas generating asset M&A, utility ratemaking and EPS improvement, and LNG and gas pipeline investment opportunity assessment. He also spent two years as a Marketing Associate with Falcon Gas Storage and a year in Enron’s Analyst & Associates program. Along with this experience, Michael spent six years as a Civil Engineer.
Michael earned a Masters in Business Administration degree from the Jones Graduate School of Management at Rice University in 2002 and a Bachelor of Science degree in Civil Engineering from Texas A&M University in 1994.
 01/29/2013 05:32 PM EST The Commodity Futures Trading Commission (CFTC) today announced that staff will hold a public roundtable on Tuesday, February 5, 2013, from 9:30 a.m. to 5:00 p.m., to discuss the Commission’s proposed rulemaking, “Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations,” which was published for public comment on November 14, 2012. Comments on the proposed rulemaking must be filed with the Commission by February 15, 2013. Washington, DC –The Commodity Futures Trading Commission (CFTC) today announced that staff will hold a public roundtable on Tuesday, February 5, 2013, from 9:30 a.m. to 5:00 p.m., to discuss the Commission’s proposed rulemaking, “Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations,” which was published for public comment on November 14, 2012. Comments on the proposed rulemaking must be filed with the Commission by February 15, 2013. Copies of the proposed rulemaking are available on the Commission’s website, www.cftc.gov. The roundtable will focus on: the role of an “Examination Expert” to review Self-Regulatory Organization (SRO) examination programs; the proposed disclosures of firm specific risks and financial reporting; the proposed requirement for segregation and secured acknowledgement letters; and the proposed residual interest requirements for Futures Commission Merchants. |
COMMENT:
It was proposed the CCRO may be able to defray some of the Working Group's costs by assessing an "appropriate cost recovery fee" for the services being provided. This fee could be assessed to those market participants wishing to participate within the Passport program.
COMMENT:
By way of a quick update, ERCOT has decided to implement their own Verification Process which I believe will begin in January 2013. I have spoken with Mark Ruane concerning this decision. He will try to adjust his scheduled so he will be able to participate on this call.
COMMENT:
We hope Items 2 & 3 will provide a viable intersection point for the ISOs/RTOs and CCRO to actively collaborate on this project. We hope the development of the inspector's guide and the training program could be performed in concert with a group of representatives from the ISOs/RTOs.
I look forward to not only Marc's continued participation in this Working Group but also the participation from representatives of all of the ISOs/RTOs.
working groups have emerged. It is important to recognize that most of the CCRO's materials are created through our working groups. These working groups bring-together our members that are keenly interested in a specific relevant topic because it represents a critical challenge to them. 
The objective of most risk analyses is to achieve one or more of the following objectives:
· To quantify a risk
· To gain insight into the level and drivers of a risk
· To assist in decision making related to the risk
· To support a governance / compliance program
The risk analyses to support each objective are often somewhat different, even when the underlying risk to be assessed may be the same. Further, the risk analysis to achieve a particular objective may differ depending on the nature of the risk tot be analyzed. In short, there is no “one-size-fits-all” risk analysis or metric that will address all of the above objectives for all risks.
While there is no “one-size-fits-all” risk analysis or metric, there are some “best practices” in performing risk analyses that lead to consistent success. ... continued
Is there enough natural gas that is findable and deliverable to plug most of the gap created by the projected closure of 25.5 gigawatts (GW) of coal-fired U.S. generating capacity between now and year-end 2015?
That is an increasingly urgent question facing U.S. utilities, power and gas marketers and regulators.
The risks of brownouts and perhaps even blackouts on weekdays challenged by extreme weather loom as a growing risk that could trigger a backlash against emissions regulations, renewable sources of electricity and competitive power markets.
The principal source of concern is the most recent report by the U.S. Energy Information Administration based on its Form EIA-860, “Annual Electric Generator Report.”
The coal-fired electricity projected to be retired over the next five years is more than four times greater than retirements executed during the preceding five-year period, a mere 6.5 GW by comparison. The estimated 9 GW of coal-fired capacity retirements expected in 2012 will likely be the largest one-year amount EVER. And that record likely won’t stand very long because 10 GW are projected to be retired in 2015.
Yeager was quick to point out that many risk managers tend to settle on a metric “before they even know what question it is they’re trying to answer.” CCRO members don’t want to calculate risk metrics just for the sake of having metrics. “We typically calculate them because somebody has a burning question they need to answer,” Yeager said. ... continued
CCRO meeting discussion:
The Committee of Chief Risk Officers (CCRO) is leading an effort among utilities, power marketers and regional power grid operators to adopt standards that will help them manage risks that threaten the uninterrupted sale and purchase of electricity and associated financial transmission rights.
In response to the first major credit action (Order 741) by the Federal Energy Regulatory Commission (FERC) directed at organized wholesale electricity markets and related regulatory responsibilities by the Commodities Futures Trading Commission (CFTC), a working group of theCCRO on Nov. 28 drafted a white paper, “Risk Management Standards for Energy Market Participants,” and shared it with interested parties in front of a Dec. 14 compliance filing deadline. ... continued
This article first appeared in the 2011 Year End issue of Energy Risk Magazine
With the use of some helpful props, CME Group’s Mike Prokop talks Pauline McCallion through a career spanning more than a quarter of a century in the world of energy trading
A visit to Mike Prokop’s office at CME Group’s Houston location is like a trip down memory lane for the energy markets, featuring paraphernalia from a 26-year career that also includes stints serving on Commodity Futures Trading Commission committees and other key industry bodies such as the Committee of Chief Risk Officers.
On his desk, he keeps a glass obelisk that was given to him by Conoco (now ConocoPhillips) to mark its first ever crude oil options trade on December 22, 1986, which was completed on the opening bell. Prokop worked on the deal as a broker, a year after he took his first job out of college in New York with Rudolf Wolff Commodity Brokers (later Rudolf Wolff Futures). ... continued
Megawatt Daily
August 12, 2011
CCRO forms group to look at ISO risk rules
The Committee of Chief Risk Officers is forming a working group to develop standards independent system operators can use to verify market participants have adequate risk management policies.
In defining the standards, the CCRO hopes to position itself to conduct the verification process on behalf of the ISOs.
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