Volume 24, Issue 3, June 2010
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Director Kim Greene Promoted at TVA<=
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EIM’s Financial Statement at March 3=
1,
2010
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IAC’s Newest Member – Mark Webster
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EIM/OCIL Alliance Provides $100M Lim=
its
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Pinnacle West, SPP - New Member Repr=
esentatives
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Resolutions of Tribute
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PNG Companies Join EIM; Membership
Remains at 168
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27 Participate in EIM-Sponsored Ener=
gy
School in Philadelphia
Sam
Garvin, 54, EIM vice president and chief financial officer, will retire on =
June
30, 2010, after more than 22 years with the Company.
Among the initial five hir=
es
when EIM moved its operations from
Having first talked about
retiring at the end of 2009, newly elected President and CEO Scott Goodell
asked Sam to continue for another six months for purposes of a smoother
transition. Sam, who has a host of
friends among the representatives of the Member Companies, was thereby able=
to
begin his official farewells at the 2010 Risk Managers Information Meeting =
in
February.
At the meeting, Sam led on=
the
opening night a heart-felt farewell to his friend and long-time colleague,
David Hadler, toasting David as “someone we will
never forget.” The next evening, Sam was present=
ed a
Steuben decanter and wine glasses which was followed by a standing ovation =
from
a large gathering of mostly risk managers, brokers, and their guests.
He
and his wife Jackie were further honored on Monday evening, May 3, in
Sam began his accounting c=
areer
in his native city of
In 1975, Sam married his w=
ife
Jackie, the former Jacquelyn Charlotte Daniels, also of Mobile, a health ca=
re
professional for a number of years, who is now celebrated by her family and
friends as an extraordinary chef. =
Sam
and Jackie, who are now on the eve of their 35th wedding anniversary, are t=
he
proud parents of three children—Marcia Garvin, 31, who works as an insurance
manager in Tampa; Amy Garvin Wren, 29, who is married to David Wren and also
lives in the Tampa Bay area and is the mother of Sam and Jackie’s twin
grandchildren; and son Tyler, 19, who is a sophomore at Florida Southern
College, Lakeland, studying music and business.
The nine-month-old twins are Ella Payton Wren and Jackson Patrick Wr=
en.
Return=
to front page
…
The
five new directors are:
Donald Chappel, senior vice
president and chief financial officer, The Williams Companies, Inc., Tulsa,=
OK;
Marian Durkin, senior vice
president, general counsel, and chief compliance officer, Avista,
Corp., Spokane, WA;
Benjamin Fowke, president =
and
chief operating officer, Xcel Energy Inc., Minneapolis, WI;
Scott Goodell, president a=
nd
chief executive officer, Energy Insurance Mutual, Tampa, FL; and
Darren Olagues, senior vice
president and chief financial officer, Cleco Co=
rp.,
Pineville, LA.
Two
current directors were re-elected to three-year terms. They are:
Trevor Carmichael, barrist=
er at
law, Chancery House,
chairm=
an,
president, and chief executive officer, Northeast Utilities,
Two
directors, now retired from their companies, whose terms expired at the 2010
Annual General Meeting were re-elected for one-year terms since directors m=
ay
serve for only two annual meetings beyond their retirement dates. They are:
Barry Mitchell, retired,
president and chief operating officer, ComEd, <=
st1:place
w:st=3D"on">
O’Donn=
ell,
retired, executive vice president, NiSource Inc.,
On
March 10, Director Allen Leverett, who is execu=
tive
vice president and chief financial officer of Wisconsin Energy Corporation,=
In
addition to the five newly elected and four re-elected directors, the other
members of the EIM Board are:
Kim Greene, group presiden=
t of
strategy and external relations, Tennessee Valley Authority,
Jim Hatfield, senior vice
president and chief financial officer, Pinnacle West Capital Corporation, <=
st1:place
w:st=3D"on">
Ed Holland, executive vice
president, general counsel, and corporate secretary, Southern Company,
Rich M=
arsh,
retired, senior vice president and chief financial officer, FirstEnergy Cor=
p.,
Return=
to front
page …
Professional Profiles of New EIM Directors
What
follows are biographical sketches of the newly elected EIM directors: Don
Chappel, Marian Durkin, Ben Fowke, Scott Goodell, and Darren Olagues.
Don joined Williams in Apr=
il
2003 as senior vice president and chief financial officer. He
led the successful restructuring of the company’s finances, the implementat=
ion
of an EVA-based disciplined financial management system and administrative =
cost
reduction program, and Williams’ IPOs of Williams Partners and Williams
Pipeline Partners.
Don’s previous experience
includes serving twice in the late 1990s as chief financial officer of Waste
Management, Inc., during periods before and after its 1998 merger with USA
Waste Services. Don joined Waste M=
anagement
in 1987 as vice president and controller of a newly formed operating
subsidiary. He then served in a nu=
mber
of positions of increasing responsibility in operating subsidiaries, leadin=
g to
his appointment as chief financial officer by the company’s board of direct=
ors
during a period of crisis.
Don graduated from the
Don serves on the boards of
directors of Family and Children’s Services, Children’s Hospital Foundation=
at
Saint Francis, and the
As Avista’s chief legal officer, Marian provides counsel=
and
guidance to the Avista Corp. board of directors=
and
officers on legal matters relevant to the company and its subsidiaries. As chief compliance officer, she is
responsible for coordinating and overseeing Avista’s
ethics and compliance programs.
Prior to joining Avista in 2005, Marian was vice president, deputy gen=
eral
counsel, and assistant secretary of United Airlines in
A native of
A frequent lecturer at leg=
al
conferences, Marian also has served as an adjunct professor at William Mitc=
hell
College of Law. She is currently o=
n the
board of directors for Vanessa Behan Crisis Nursery and the board of truste=
es
for the Northwest Museum of Arts and Culture, both in
Before assuming his current
responsibilities, Ben held a variety of executive positions with the compan=
y,
including vice president and chief financial officer and vice president and=
CFO
of Energy Markets, where he was responsible for the financial operations of=
the
company’s commodities trading and marketing business unit. Prior to the 2000 mergers of Northern S=
tates
Power Co. and New Century Energies (NCE)that for=
med
Xcel Energy, he was vice president in the NCE retail business unit.
Prior to Xcel Energy, Ben =
served
10 years with FPL Group, Inc., in
Ben currently serves on the
board of directors of the American Gas Association and the Minnesota
Orchestra. He also is a member of =
the
board of advisors for the University of Colorado
Denver Business School. He earned a
bachelor’s degree in finance and accounting from
Scott
Goodell was announced on December 9, 2009, as EIM’s next president and chief
executive officer and moved into that position January 11, 2010. He was appointed to the Board of Directors at its me=
eting
in
At the time of his selecti=
on,
Scott was managing director of Guy Carpenter & Company, LLC, a $900-million risk and reinsurance specialist that is=
part
of the Marsh & McLennan Companies.
Guy Carpenter has over 50 offices worldwide.
Since 2005, Scott had been
responsible for Guy Carpenter’s West Region’s broking operations and was a
member of the region’s senior management team.
From 2001 to 2005, Scott was managing director responsible for Guy
Carpenter’s East Region. From 1998=
to
2001, he was managing director of the firm’s Instrat
unit, a global quantitative analytics group.
From 1987 to 1998, Scott was senior vice president, general counsel,=
and
secretary of Sedgwick Re, Inc., which was later merged into Guy Carpenter.<=
span
style=3D'mso-spacerun:yes'>
Scott began his insurance =
career
in 1985 with American Centennial Insurance Company, the reinsurance arm of
Beneficial Insurance Group,
A native of
Since joining Clec=
o
in July 2007, Darren had been serving as senior vice president of Cleco Midstream Resources LLC, the company’s competit=
ive
wholesale generation business.
Before joining Cleco, Darren was vice president of asset management =
and
development for Exelon Power. Prio=
r to
that, he served as Exelon’s director of corporate development and as senior
vice president and CFO at Sithe Energies. A certified public accountant, Darren a=
lso
worked for PricewaterhouseCoopers, where he was senior manager of audit.
Darren, 38, graduated in 1=
992
from
Return=
to front
page …
Ed Holland New Vice Chairma= n
At
the May 4 Board meeting near Dallas, EIM Chair-man Jim Hatfield of Pinnacle
West, Phoenix, was re-elected chairman of the board and Board Member Ed Hol=
land
of Southern Company, Atlanta, was elected vice chairman.
The other EIM officers
re-elected are:
Scott Goodell, president a=
nd
chief executive officer; Sam Garvin, vice president and chief financial
officer; Jill Dominguez, vice president—underwriting; Robert Schmid, vice
president, subsidiary operations; Tommy Bolton, controller and chief accoun=
ting
officer; Joan Bryant, secretary; and Trevor Carmichael, assistant secretary=
.
Jim Hatfield
Jim,
appointed to the EIM Board in 1998, was elected to his first three-year ter=
m in
1999. He has been the Company’s ch=
airman
of the board since April 2009.
Two years ago, Jim moved to
Pinnacle West where he is senior vice president and chief financial officer=
of
the parent company and its operating utility, Arizona Public Ser-vice. With 30 years of electric and gas indus=
try
experience, Jim was previously at OGE Energy Corp.,
From 1980-1993, Jim worked=
for UtiliCorp United Inc., of
He and his wife, Eileen, h=
ave
three children and two grandchildren.
Pinnacle West
has consolidated assets of about $12 billion.
Through its subsidiaries, the company generates, sells, and delivers
electricity and sells energy-related products and services to retail and
wholesale customers in the western
Ed Holland
G.
Edison (“Ed”) Holland, Jr., the newly elected EIM vice chairman, is Southern
Company’s chief compliance officer as well as executive vice president, gen=
eral
counsel, and corporate secretary.
Prior to assuming his curr=
ent
position at Southern Company in May 2001, Ed was president and chief execut=
ive
officer of Savannah Electric from July 1997-April 2001. Savannah Electric was merged into Georg=
ia
Power, Southern’s largest operating subsidiary,=
in
July 2007.
Ed joined Southern Company
subsidiary Gulf Power,
Prior to joining Gulf Power, Ed was a
partner in the law firm of Beggs & Lane,
A native of
=
Ed
joined the EIM Board a year ago. H=
e also
is a member of the boards of directors of First Chatham Bank Financial
Corporation, Georgia Appleseed, the Georgia Aquarium, and the Southern Golf
Association.
He is a past chairman of t=
he
Edison Electric Institute’s Legal Committee, is a director of the Institute=
for
Legal Reform of the U.S. Chamber of Commerce, and is a member of the
Electricity Committee of the Public Utility, Communications, and Transporta=
tion
Law Section of the American Bar Association.
Ed is married to the former
Elizabeth (Betsy) Bird of Marietta, GA.
They have two daughters, Laura and Caroline. Laura is an attorney in
Southern
Company, one of EIM's 17 founding Members, has 4.4 million customers in four
southeastern states and more than 42,000 megawatts of generating capacity.<=
span
style=3D'mso-spacerun:yes'> Headquartered in downtown Atlanta, Sout=
hern
Company has more than 500,000 stockholders and about 26,000 employees.
Return=
to front
page …
Return=
to front
page …
Ed Holland, Tommy Bolton New EIS Officers=
At
the Energy Insurance Services Annual General Meeting, also on May 4 near
The new EIS directors are Ed Holland,=
Scott
Goodell, and Barry Mitchell. Jim
Hatfield, Sam Garvin, Robert Schmid, and Chuck Shivery are the other four
members who also serve on the EIS Board.
At the EIS Board meeting, =
Ed
Holland, the newly elected vice chairman of EIM was elected vice chairman of
EIS and Tommy Bolton was elected controller and chief accounting officer of
EIS. He has the same title with EI=
M.
The other EIS officers who=
were
re-elected are: Jim Hatfield, chairman; Scott Goodell, president and chief
executive officer; Sam Garvin, vice president and chief financial officer;
Robert Schmid, vice president and chief operating officer, and Joan Bryant,
secretary.
Return=
to front
page …
On
May 11, 2010, an article in the online publication AEGIS News reported that=
the
AEGIS Risk Management Advisory Committee (RMAC) and management agreed AEGIS
should place a $35-million per occurrence/$70-million annual aggregate limit
(or twice the per occurrence limit, if lower) on the excess liability polic=
y. The intent is to put a finite limit on the policy no
matter how many “occurrences” are reported. The article further states
the aggregate will take effect with excess liability policies renewing on a=
nd
after January 1, 2011.
As many of you are
aware, EIM continues periodic interaction with AEGIS to identify
potential changes in underlying policy terms and conditions and to
ensure EIM Member Company coverage continuity. This
“aggregation” issue has been discussed already at the EIM Insurance Advisory
Committee (IAC) level. Currently, there are no definite details
on the AEGIS wording and how its strategy affects EIM. While the details are still in the work=
s,
please be assured EIM and the IAC are committed to working through this
development. EIM will have a timely response as soon as we are c=
lear
on how this change will ultimately affect our Policyholders’ following form
coverage.
Return=
to front
page …
Kimberly
S. Greene, who had been TVA’s chief financial officer and executive vice
president of financial services since 2007 and became the regional power
supplier’s chief risk officer in 2008, was promoted this past January to gr=
oup
president of strategy and external relations.
Kim went to TVA three years ago from
Southern Company,
In 2002, Kim moved to Sout=
hern
Company Generation and Energy Marketing as director of portfolio management,
responsible for trading strategies and long-term resource plans. She was named treasurer of Southern Com=
pany
Services in 2003.
A native of
Kim joined the EIM Board of Directors in 2004 and currently chairs the Board’s Audit Committee. She also serves on the Nominating and Reinsurance committees.
Return=
to front
page …
Return=
to front
page …
Mark Webster – Naval Nuke
Officer Turned Risk Manager
Filling a seat vacated by
long-time IAC Member Bob Semet, who has since r=
etired
from Exelon, Mark joined Duke in November 2006, having been previously a vi=
ce
president with Marsh’s power and utility group in
A native of
Why did you seek IAC membership?
I wanted to learn more about how our ind=
ustry
mutual works. Essentially, I wante=
d to
peek behind the curtains to better understand how decisions are made, decis=
ions
that impact both EIM and its Members.
What are your expectations as an IAC member?
I hope I can use this liai=
son
position between the Board and the Members to make beneficial contributions=
for
both EIM and its Members.
Is the IAC role changing?
Not on paper, but I cannot=
see
how it won’t in operation with the changes in EIM’s top management. Because I’m new, I don’t have any persp=
ective
for which I can compare it though.
How did you get into risk management?
Late in 2002, when I decid=
ed to
leave Active Duty Naval service, I interviewed with Dan McGarvey
of Marsh who is also a Naval Nuke Officer as they were looking for a nuclear
risk consultant/broker. I remember=
he
said it was easier to teach insurance to a Nuke than teach nuclear power to=
an
insurance professional. The positi=
on,
Dan, Marsh, and
Describe the risk management function at Duke Energy.
Duke’s risk management department is a great grou=
p of
people to work with. There is a go=
od
blend of contract reviews, insurance placements, project risk analysis, and
captive subsidiary coordination to keep us busy but also keep it interestin=
g.
What are your most significant challenges as a risk manager?
Finding time and finding t=
he
contract, project, or operational risks that we don’t know about.
What is it like in general working for Duke Energy?
It is great to be with a
financially sound, employee-friendly company that continues to develop and
update operations.
How did mechanical engineering prepare you for risk management?<= o:p>
It didn’t help me specifically for general risk
management, but it is helpful in understanding the technical side of operat=
ions
and projects that dovetail with risk management in the power and utility
sectors.
Tell us about your 10 years in the U.S. Navy.
I spent about three years learning nuclear power,
about three years standing watch on a nuclear-powered submarine that carried
intercontinental nuclear warhead missiles, and then about three years teach=
ing
nuclear power to new officers. We did get to launch a couple o=
f the
130,000-pound missiles across the ocean.
Obviously, as you can tell since there wasn’t a World War III, we to=
ok
the nuclear warheads off before launching them.
Describe your seven months in
I was proud to serve a need requested from our
country, but leaving the family was hard.
It was a good experience that I don’t ever want to do again. I was disa=
ppointed
to see the international politics within NATO challenging our effectiveness=
.
What are your thoughts on the
I don’t think it is in the U.S.’ best interest to
allow any group that wants to, supports, or does attack innocent American
citizens to exist without diligent prosecution and best efforts to prevent =
an
attack again. If our national defe=
nse
experts ask for my help in this endeavor, I’ll serve accordingly. Only histo=
ry will
tell if our actions or inactions were beneficial, but none of it is easy or
without sacrifice. I think any fig=
ht
against terrorist groups is worthwhile, as well as our helping innocent peo=
ple
try to gain self-sustaining freedom and prosperity. It’s a huge problem. With limited resources, picking the rig=
ht
battles is tough and never perfect.
Tell us about life in the Webster household.
I married my high school sweetheart 16 years ago<=
span
class=3DGramE>. She is very
supportive, especially through the military separations that she did not li=
ke. She has do=
ne a
great job raising our 14-year-old daughter Emi and our 11-year-old son Zack=
. When work,=
school,
homework, sports and Navy Reserves give us an opening, we like to boat and =
do
water sports on one of Duke’s awesome lakes near Charlotte.
What are your interests outside work?
Bass f=
ishing,
golf, dirt bikes, and NASCAR.
Return=
to front
page …
In
late February, EIM President Scott Goodell reported to the Membership that =
the
Company would continue to offer maximum limits of $100 million through the =
use
of a reinsurance arrangement with Oil Casualty Insurance, Ltd., which is ba=
sed
in
After a great deal of anal=
ysis
in 2009, the Company decided in December of this past year that it would re=
duce
maximum excess general liability policy limits from $100 million to $75
million. Yet, “subsequent discussi=
ons
with Members revealed that many wanted EIM to maintain the $100 million
limits,” Scott said. “We listened.=
”
He also said the alliance =
will
be seamless to EIM Members and Member Brokers with all negotiations, policy
terms, claims handling, and services to be handled by EIM. The $100-million policy will be issued =
on EIM
paper.
On
May 11, 2010, an article in the online publication AEGIS News reported that=
the
AEGIS Risk Management Advisory Committee (RMAC) and management agreed AEGIS
should place a $35-million per occurrence/$70-million annual aggregate limit
(or twice the per occurrence limit, if lower) on the excess liability polic=
y. The intent is to put a finite limit on the policy no
matter how many “occurrences” are reported. The article further states
the aggregate will take effect with excess liability policies renewing on a=
nd
after January 1, 2011.
As many of you are
aware, EIM continues periodic interaction with AEGIS to identify
potential changes in underlying policy terms and conditions and to
ensure EIM Member Company coverage continuity. This
“aggregation” issue has been discussed already at the EIM Insurance Advisory
Committee (IAC) level. Currently, there are no definite details
on the AEGIS wording and how its strategy affects EIM. While the details are still in the work=
s,
please be assured EIM and the IAC are committed to working through this
development. EIM will have a timely response as soon as we are c=
lear
on how this change will ultimately affect our Policyholders’ following form
coverage.
Return=
to front
page …
Two
Member Companies—Pinnacle West Capital Corp and Southwest Power Pool, Inc.—=
have
named new EIM Member Representatives, Barbara M. Gomez and Thomas P. Dunn,
respectively.
Barbara
Gomez, a native of
After graduating high school in
Barbara joined Arizona Pub=
lic
Service in 1978, working in a variety of financial positions. In 1999, she was elected vice president=
and
treasurer; in 2009, vice president and controller, both positions being with
the parent company. In January 201=
0, she
was elected to her present position with the utility.
She is on the board of dir=
ectors
of Goodwill of Central Arizona, The Wellness Community, and the Catholic
Diocese of Phoenix, where she serves as chairman of the finance council.
Tom received his bachelor’s degree in f=
inance
in 1987 from the
From 1994 to 2001, Tom was=
vice
president, commercial banking, US Bank,
On
May 11, 2010, an article in the online publication AEGIS News reported that=
the
AEGIS Risk Management Advisory Committee (RMAC) and management agreed AEGIS
should place a $35-million per occurrence/$70-million annual aggregate limit
(or twice the per occurrence limit, if lower) on the excess liability polic=
y. The intent is to put a finite limit on the policy no
matter how many “occurrences” are reported. The article further states
the aggregate will take effect with excess liability policies renewing on a=
nd
after January 1, 2011.
As many of you are
aware, EIM continues periodic interaction with AEGIS to identify
potential changes in underlying policy terms and conditions and to
ensure EIM Member Company coverage continuity. This
“aggregation” issue has been discussed already at the EIM Insurance Advisory
Committee (IAC) level. Currently, there are no definite details
on the AEGIS wording and how its strategy affects EIM. While the details are still in the work=
s,
please be assured EIM and the IAC are committed to working through this
development. EIM will have a timely response as soon as we are c=
lear
on how this change will ultimately affect our Policyholders’ following form
coverage.
Return=
to front
page …
Return=
to front
page …
Membership Remains at 168
PNG
Companies LLC, perhaps better known as Peoples Natural Gas Company, joined =
EIM
February 2, 2010; at the same time, RC Cape May Holdings, LLC, reduced its
limits and left the Company, thereby keeping the total Membership at 168.
People=
s is
a Pittsburgh-based local gas distribution company serving approximately 375=
,000
residential, commercial, and industrial customers in 16 counties throughout
southwestern
PNG is an asset of SteelRiver Infrastructure Partners, which is an indep=
endent
investment management firm that invests in core infrastructure assets for t=
he
long term.
Return=
to front
page …
Twenty-seven
attendees, including EIM’s Gary Gresham, second from left, spent a rigorous
week in late April of lectures, case studies, and peer reviews—all
participating in the jointly sponsored
Return=
to front
page …
Comments,
questions, and suggested subjects from Members are sincerely welcomed.
Please
send them to the EIM office in
Energy Insurance Mutu=
al
1-800-446-2270
Or, email us at: <=
/span>publisher@eimltd.com