On April 4, 2016, the US Commodity Futures Trading Commission and the Securities and Exchange Commission jointly proposed guidance relating to the treatment of certain electric power and natural gas contracts. Specifically, the guidance proposes that certain capacity contracts in electric power markets and certain natural gas contracts known as peaking supply contracts should not be considered “swaps” under the Commodity Exchange Act, because such contracts are examples of customary commercial arrangements as described in the final rule defining what constitutes a “swap.” The proposed guidance will be open for comment for 30 days after it is published in the Federal Register.

The Proposed Guidance is available at: http://www.cftc.gov/idc/groups/public/@newsroom/documents/file/federalregister040416.pdf