June 2007 Capital Adequacy Extension © Copyright 2007, CCRO. All rights reserved. Page 30 of 92 In the following pages, each aspect of the risk capital requirement for economic capital adequacy is discussed in detail. These sections will focus on Operative, Credit, and Market Risk Capital determination respectively, as well as the impact of Business Risks on those capital requirements, and lay out a framework that energy companies can utilize and benchmark their own procedures against in the determination of appropriate risk capital requirements.