EOL

Mark,

The scrutiny that is now falling on online trading platforms means that we
need to stay ahead on this issue here on the Hill. I am concerned that
Congress will uncover a significant regulatory gap between FERC jurisdiction
and CFTC jurisdiction over online OTC activities. Unfortunately, I am
lacking in my knowledge of regulatory structures for our energy products, but
I am confident that I know more than our lobbyists (they still don't know the
difference between an exchange and Enron Online). Our lobbyists are eager to
deflect this scrutiny, but it is not clear they know what they are deflecting.

Is there a way to compare and contrast the differences in various forms of
regulation of the CFTC and the FERC so we coan identify the "gap" (if it
exists at all) and how Congress may attempt to fill the gap. Are there
lessons to be learned from other OTC products and exchange traded products
(securities, banking, commodities)? For example, does the FERC have
jurisdiction to require licenced power marketers to deal only with
counterparties that retain certian credit quality, or maintain certain
reserves to back traded positions, increase reporting of trading activities?
As you can tell I know enough to get myself in trouble.

call me so we can talk furt.her