Earlier in October, APGA responded to a request for information (RFI) from the Commodity Futures Trading Commission (CFTC), as they consider future action to mitigate climate-related financial risk. With any next step, the CFTC needs to avoid negative impacts, directly or indirectly, to registered entities, registrants, and other market participants as well as the derivatives markets and the underlying commodities markets themselves. The RFI aims to collect information from these stakeholders to prevent scenarios such as heightened market volatility, disruptions of historical price correlations, and challenges to existing risk management assumptions. APGA appreciates that the CFTC requested information and was glad to provide the public gas utility perspective to inform any future action that could include new or amended guidance, interpretations, policy statements, regulations, or other effort.
APGA understands that the CFTC must protect entities under its jurisdiction, as well as promote responsible innovation, ensure the financial integrity of all transactions subject to the Commodity Exchange Act, and avoid systemic risk. However, any future action must not be detrimental to APGA members, recognizing the important efforts of public gas utilities, in partnership with the entire natural gas value chain, to provide sustainable energy in an affordable and environmentally-conscious manner.
To see APGA’s comments,
click here.
For questions on this article, please contact Stuart Saulters of APGA staff by phone at 202-544-1334 or by email at
ssaulters@apga.org.