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Following the financial crises that challenged corporate America and our industry in 2000-2001, EEI is playing a leading role in restoring investor confidence in the electric industry, particularly in its Financial Disclosure, Corporate Governance, and Energy Trading & Risk Management practices.
Financial Disclosure and Corporate Governance
Broad market uncertainty reinforces the urgent need to make continuing progress towards strong coporate governance and enhanced financial information disclosures.
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" Beyond the Boardroom: Understanding the Energy Industry" is a seminar for boards of directors of member companies of EEI and AGA on the legislative and regulatory process as well as critical industry issues and public policymaking. The semi-annual program is accredited by Institutional Shareholder Services.
- The Wall Street Advisory Group was established in 2003 to provide real-time feedback on investor confidence issues and support industry positions in legislative and regulatory forums. The Group includes six senior Wall Street leaders who represent debt and equity analysts and investment bankers as well as EEI’s Finance EAC members.
- EEI commissioned a survey on Corporate Governance/Sarbanes-Oxley Implementation of 15 member CEOs and their high-level executives to evaluate the industry’s implementation progress (August 2003).
- For the second year, a study of Wall Street Investor Perceptions (August 2003) was conducted for EEI to determine the financial community’s level of confidence in electric industry disclosure practices.
- EEI's Guide to Enhanced Corporate Governance and Financial Reporting in the Energy and Utility Industry
 (December 2003) synthesizes the new corporate governance requirements and financial accounting and reporting standards facing the electric industry.
- EEI's Guide To Improving Financial Information and Energy Trading Disclosure for the Electric Industry (January 2003) provides guidance on how to make disclosure transparent, consistent, understandable, and complete. The study is available free to members and for purchase by associate members and non-members.
- Throughout 2003, EEI conducted Sarbanes-Oxley Section 404 – Evaluation of Internal Controls training for member companies on the issues raised by implementation of 404 Evaluation of Internal Controls.
Energy Trading & Risk Management
Energy trading promotes liquid, transparent energy markets, ensuring reliable electricity at stable prices.
- Update of 2004 ESAI Study: Liquidity in U.S. Power Markets—This study updates the Day Ahead and Calendar Year trading liquidity analysis performed in the 2004 study for 10 market areas.
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Master Netting Agreement—Credit exposure is making it increasingly difficult for electric companies to enter into wholesale transactions. EEI has joined with member companies, major independent energy traders, financial institutions, and law firms to develop a Master Neeting Agreement to help companies mitigate credit risk and increase liquidity.
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Standardized Master Power Purchase & Sale Agreement—A disparate array of contracts and tariffs are used in today's wholesale power markets. To help overcome these differences, EEI has facilitated an industry-wide collaborative to develop the Standardized Master Power Purchase & Sale Agreement, a model bilateral master agreement containing the essential terms governing forward purchases and sales of wholesale electricity.
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