Nem committee aims to safeguard post-Enron credibility

Michael Walker, senior vice-president of New York-based energy derivatives technology company Caminus, was today named co-head of the executive committee of the National Energy Marketers Association (Nem). Together with Lee Taylor, senior vice-president of broker Prebon Energy, Walker will head the Nem committee that aims to ensure stability and financial credibility of the North American wholesale energy markets.

“The formation of the task force on valuation, risk management and accounting is a vital part of Nem's greater effort to encourage quick action by our members in ensuring the continued viability and stability of the energy markets following Enron's collapse,” said Craig Goodman, president of Nem.

The committee will take a leadership role in addressing industry-specific accounting issues, including FASB 133, which will forge industry consensus on the proper valuation of energy trading contracts, plus appropriate disclosure rules for physical and financial trading activities. Goodman added the committee would focus on educating the investment community on the appropriate use of energy derivatives to manage corporate risk in the competitive wholesale energy markets.

“Energy producers, marketers and traders now need improved internal processes that are supported by software to comply with the SEC's standards,” said Walker. “The main goal of this task force will be to collaborate with auditing and rating firms to develop standard methods of valuation and accounting practices. This will enable companies to provide consistent and complete information to the investment community.”

Walker has more than 35 years' experience in the energy trading and risk management industry. Prior to joining Caminus, he served as operations director for Ernst & Young’s (E&Y) Magellan Center for Trading & Risk Management. Before joining E&Y he was chief information officer of Enron's wholesale energy trading business units .

Nem represents wholesale and retail energy marketers, as well as suppliers of energy-related products, services, information and technologies throughout the US.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here