Xcel Energy Chooses SAS RiskAdvisory Solution for Dodd-Frank Compliance

Cary, NC and Calgary, AB - 28 September 2012

RiskAdvisory, a division of business analytics leader SAS, have announced that Xcel Energy has selected SAS® BookRunner® to help it meet new compliance obligations for commodity swap market participants under the Dodd-Frank Act. SAS BookRunner will enable the Minneapolis-based electric and natural gas utility to minimize disruption to its Commodity Trading and Risk Management (CTRM) practice while meeting its Dodd-Frank compliance obligations.

Risk management for power plant fuel procurement involves the commodity swap market, which is now regulated under Dodd-Frank Title VII. Xcel Energy, which operates multi-state generation facilities fueled by coal, oil, gas and other commodities, is making plans to respond to the new regulations. The SAS solution will aggregate data from multiple locations and systems, and automate Dodd-Frank requirements for recordkeeping, surveillance, data reporting and operational controls.

“Utilities must be able to effectively address Dodd-Frank compliance requirements without interruption to daily operations,” said Cary Oswald, Managing Director, Risk Strategy and Control, at Xcel Energy. “We have considerable past experience with SAS advanced analytics solutions and we are looking forward to working with them to implement this new solution.”

“SAS has made a strong commitment to providing Dodd-Frank solutions, and we are pleased to forge a partnership with a long-time customer like Xcel Energy in this area. Dodd-Frank compliance is a challenge we are actively trying to help customers overcome, in particular because the industry faces tight timelines for a complex regulatory task,” Carl Farrell, Executive Vice President, SAS Americas, said. “We address those concerns with our modular approach, which can provide an end-to-end solution or be used solely to aggregate trade data and manage the mandated reporting, position limits and regulatory interface.”

Final rules for the Dodd-Frank Title VII were published in Summer 2012, mandating a rapid compliance schedule for commodity market participants who fall under the regulations. Position limits for enumerated commodities come into effect on October 12, while swap data repository (SDR) onboarding, connectivity and testing must begin before January 1. All end-user processes, historical trade uploads and calculations are required to be fully functional by April 2013.

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