In response to a recent FERC order for proof of significant changes to its gas price dissemination methods, Sempra Energy said it instituted provisions last year to protect against wholesale natural gas price manipulation and one employee was disciplined for providing inaccurate data to trade publications.

FERC on April 30 gave 11 gas trading companies, including Sempra, 45 days to either improve their gas price reporting practices to energy trade publications or show that they have exited the wholesale trading business (see Daily GPI, May 1).

“We complied with FERC’s suggested provisions late last year,” said Sempra’s spokesperson, Doug Kline. “So we intend to outline what we’ve already done.” Kline said that Sempra Energy Trading so far has not been asked to provide similar assurances on their electric trading operations.

Declining to say whether anyone was fired, Kline said “one employee was disciplined” for a relatively small number of trades centered on Rocky Mountain natural gas supplies, but a broader audit by the Sempra trading unit turned up no widespread instances of inaccurate price reporting. The one individual in question had misreported prices by a penny to 2 cents/MMBtu, Kline said.

Other companies called out in FERC’s action included: American Electric Power, Aquila, Coral Energy Services, CMS Marketing Services & Trading, Dynegy Inc., Duke Energy Trading and Marketing, El Paso Merchant Energy, Mirant Americas Energy Marketing, Reliant Resources and Williams Energy Marketing and Trading. FERC has concluded that false reporting of gas prices impacted wholesale electricity prices during California’s 2000-2001 energy crisis, and it has suggested that proposed refunds should be increased to account for the inaccurate price reporting.

Federal and state investigators have criticized Sempra and many other electric suppliers for allegedly manipulating the wholesale market to drive up prices. California officials have criticized Sempra along with many out-of-state merchant energy companies, but Sempra has staunchly denied any wrongdoing.

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