Nem committee aims to safeguard post-Enron credibility

“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.

• Tweet  
• Facebook  
• LinkedIn  
• Save this article
• Send to  
• Print this page  

• Topics
• People