Boise-based IDACORP, parent company of Idaho Power, disclosed that it is under investigation by the Commodity Futures Trading Commission for potentially engaging in round-trip or wash trading, which is designed primarily to boost trading volumes to create the appearance of a larger trading operation.

In a quarterly 10-Q filing on Friday, IDACORP said it received a subpoena on Oct. 2 from the CFTC “requesting, among other things, all records related to all natural gas and electricity trades by IPC involving round trip trades, also known as wash trades or sell/buyback trades including, but not limited to those made outside the Western Systems Coordinating Council region.” The subpoena also applies to marketing subsidiary IDACORP Energy (IE).

The company said it responded to a similar subpoena from the Federal Energy Regulatory Commission on May 22. The company told FERC it did not engage in round trip or wash trades. By letter from the CFTC dated Oct. 7, the Division of Enforcement agreed to hold in abeyance until a later date all items requested in the subpoena with the exception of one paragraph that related to three trades on a certain date with a specific party. The companies said they have provided the requested information.

IDACORP said last week that its natural gas marketing days are over and its future in the midstream gas gathering and processing business simply was not meant to be (see Daily GPI, Nov. 6). The company cut its power marketing staff in half during the summer (see Power Market Today, June 24). The announcement stated that IE would not seek new electric customers, would limit its maximum value at risk to less than $3 million, would target a reduction of working capital requirements to less than $100 million by the end of 2003 and would reduce its workforce by 46% or 50 employees.

IDACORP shares fell 6% Monday to $22.75, near the bottom end of the company’s 52-week trading range of $20.87-$41.14.

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