Energy Cos. Fear Worst From Financial Reform Bill

Law360, New York (June 21, 2010, 4:42 PM EDT) -- Many energy companies are worried about the financial reform package moving through Congress, saying its over-the-counter derivatives provisions could lead to rate hikes, increase their transaction costs and prompt more of them to move overseas.

Utilities, pipeline owners, natural gas producers, manufacturers and others have relied on OTC derivatives for the past couple of decades to hedge price risks and help mitigate potential volatility. This kind of trading has brought them through some tough times, they said.

But their way of doing business could be upended...
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