Responding to a chorus of calls from Capitol Hill and California politicians, the Federal Energy Regulatory Commission last week said it will release to the public the mass of documents that has been furnished by sellers and others as part of the agency’s probe into potential manipulation of prices for natural gas and electricity in western markets, and in related refund proceedings. However, it noted some of the information still will remain confidential.

Specifically, the Commission said it will make available to the public the bulk of the filed documents, tape recordings and other records related to its year-long investigation of energy price gouging in the West [PA02-2]; evidence submitted by California regulators and others last week and previously to show western energy markets were manipulated by suppliers in 2000 and 2001, and that refunds are warranted; and suppliers’ responses to the allegations [EL00-95-048, EL00-98-042, EL00-10]. Certain documents that FERC obtained from other federal agencies in the course of its probe [PA02-2] will not be unsealed because they may jeopardize ongoing investigations, according to FERC’s notice of intent (NOI) to open the documents to the public, which was issued last Wednesday.

The Commission said parties with a “confidentiality interest” will have until March 12 to file comments protesting the release of documents. The parties’ challenges “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 and other materials, 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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