For Immediate Release August 7, 2003
For More Information, Please Contact:
Melissa Lauderdale, EEI, (202) 508-5616 firstname.lastname@example.org
ISDA and EEI Announce North American Power Annex to ISDA Master Agreement
A combined effort of ISDA and EEI, the Power Annex is intended to facilitate the purchase, sale or transfer of physical power products, and is structured as an annex to the ISDA Master Agreement Schedule. The Annex was developed to enable market participants to enter into physical power purchases and sales as well as financial derivative transactions under one agreement. It is structured to be consistent with EEI documentation already in use in the North American power market and will offer a new method for documenting power transactions under the ISDA Master Agreement.
"The Power Annex will promote efficiencies in the execution of power transactions and reduce documentation basis risk for participants in the North American power market," said Steven Bunkin, Vice President and Associate General Counsel, Goldman, Sachs & Co and Chair of ISDA's North American Energy and Developing Products Committee. "Collaboration between ISDA and EEI made it possible to develop a framework for executing physical power transactions under an ISDA Agreement consistent with prevailing power market standards."
“Standardization of key contract terms and products promotes greater liquidity in the power market and less risk to market participants,” said Edward Comer, Vice President and General Counsel of EEI. “Integrating the energy industry’s standard agreement into the ISDA Master Agreement will help promote market stability and reduce party, systemic, legal and credit risk,”
The International Swaps and Derivatives Association (ISDA) is the global trade association representing leading participants in the privately negotiated derivatives industry. ISDA was chartered in 1985, and today has more than 600 member institutions from 46 countries. These members include most of the world's major institutions that deal in privately negotiated derivatives, as well as many of the businesses, governmental entities and other end users that rely on over-the-counter derivatives to manage efficiently the financial market risks inherent in their core economic activities. Information about ISDA and its activities is available on the Association's web site: www.isda.org.
The Edison Electric Institute
(EEI) is the principal trade association for