In a notice of intent (NOI) issued late Wednesday, the Federal Energy Regulatory Commission said it intends to release to the public a mass of documents that were furnished by energy suppliers and others as part of the agency’s year-long probe into potential manipulation of short-term prices for natural gas and electricity in western markets. However, it also noted that some of the information still will remain confidential [PA02-2].

Certain documents that FERC obtained from other federal agencies could jeopardize ongoing investigations, and thus will not be released, according to the Commission’s NOI. Also exempted will be the additional evidence filed by California regulators and others this week at FERC purportedly showing conclusively that the state’s energy market was manipulated by suppliers in 2000 and 2001, as well as suppliers’ responses to that evidence [EL00-95-048, EL00-98-042].

The Commission said parties with a “confidentiality interest” will have until March 12 to file comments protesting the release of documents. The parties’ protests “should clearly explain any opposition to the release of these documents, or portions thereof, and the rationale for that position,” it said. “The Commission will not be persuaded by conclusory statements as to why the information deserves protection.”

FERC did not indicate how soon after March 12 it will begin releasing the thousands of pages of documents. The agency has been under mounting political pressure, particularly from Sen. Dianne Feinstein (D-CA) and California Gov. Gray Davis, to make the information public. The documents, which have been under protective orders and shielded from public view, could shed further light on further wrongdoing and/or illegalities of energy companies.

Noting that industry responses to the new California evidence are due at FERC (March 20) after the comments addressing the release of documents are to be filed, the Commission suggested that parties take up both issues in their March 12 filings.

The majority of the documents to be issued by FERC are expected to deal with manipulation of the electricity prices in the West, but some will focus on the alleged price gouging of natural gas. “Gas was a central part of the fuel mix out there” in the West, said an agency spokesman, so it’s only logical it will be addressed.

FERC staff currently is working on its final report, which will provide the findings of its probe into the activities of energy suppliers in California and other western markets. In an interim 107-page report released last August, staff said it uncovered “preliminary evidence” of price manipulation in the gas and power markets, and of violations of FERC’s standards of conduct for affiliate companies.

In addition to the Commission probe, energy companies are being investigated by the U.S. Attorney’s Office, the Commodity Futures Trading Commission and the Securities and Exchange Commission for alleged trading, pricing and other irregularities.

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