Market regulation · 02/04/2013

Final Order in Response to a Petition From Certain Independent System Operators and Regional Transmission Organizations To Exempt Specified Transactions Authorized by a Tariff or Protocol Approved by the Federal Energy Regulatory Commission or the Public Utility Commission of Texas From Certain Provisions of the Commodity Exchange Act Pursuant to the Authority Provided in the Act

The Commodity Futures Trading Commission ("CFTC" or "Commission") is issuing a final order ("Final Order") in response to a consolidated petition ("Petition") \1\ from certain regional transmission organizations ("RTOs") and independent system operators ("ISOs") (collectively, "Requesting Parties") to exempt specified transactions ("Covered Transactions") from the provisions of the Commodity Exchange Act ("CEA" or "Act"),\2\ and Commission regulations. The Final Order exempts contracts, agreements, and transactions for the purchase or sale of the limited electric energy- related products that are specifically described within the Final Order from the provisions of the CEA and Commission regulations, with the exception of the Commission's general anti-fraud and anti-manipulation authority, and scienter-based prohibitions, under CEA sections 2(a)(1)(B), 4(d), 4b, 4c(b), 4o, 4s(h)(1)(A), 4s(h)(4)(A), 6(c), 6(d), 6(e), 6c, 6d, 8, 9, and 13 of the Act and any implementing regulations promulgated under these sections including, but not limited to Commission regulations 23.410(a) and (b), 32.4, and part 180. To be eligible for the exemption contained in the Final Order, the contract, agre