Trading Team:

Credit is currently working on providing to Trading a more applicable credit watch list for the larger industry marketers/generators that will include your actively traded Tier 1 counterparties such as Williams, Reliant, Duke, Mirant, El Paso, Dynegy, AEP, etc. in order to communicate areas of credit concern and details to which type of deals may or may not receive a credit price (depending on volume, basis concentration, incremental risk vs. offsetting, price transparency due to tenure, & strength of trading contract).

Over the past few months, I have observed an influx of long-term trades that have been executed without a prior credit 'heads up' for approval.  In order to effectively manage the power portfolio with these counterparties that trade actively in both the East and West desks, Credit needs to be called prior to transacting particularly on deals beyond cal '03.

We also have those trading counterparties that are not as well capitalized such as Avista Energy, Aquila, Constellation, and Allegheny to name a few.  Transacting with these counterparties beyond 12 months need prior approval for these reasons.  

I appreciate you all working with Credit to ensure that the trading portfolio is managed in the most seamless manner.

Regards,
Tracy