As a further fallout from Enron Corp.’s financial collapse, three Democratic senators from the West Coast plan to introduce legislation in Congress today to step up the regulatory oversight of the energy markets to ensure full disclosure of all energy transactions.

The bill would close the loopholes that were granted by the Commodity Futures Modernization Act of 2000, which the senators claim allowed energy companies, such as Enron, to operate without regulatory oversight. Sponsors of the legislation are Sens. Dianne Feinstein of California, Maria Cantwell of Washington and Ron Wyden of Oregon.

The proposal would expand the Commodity Futures Trading Commission’s (CFTC) oversight in the paper energy markets, giving it additional regulatory authority over three areas: 1) transactions conducted on private online trading platforms; 2) derivatives; and 3) bilateral energy transactions, said Feinstein spokesman Jim Hock.

The proposed measure would also augment the Federal Energy Regulatory Commission’s oversight of the physical energy markets, providing the agency with the authority to regulate rates in forward markets.

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