Manipulation

El Paso Corp. is nearing a $1.7 billion settlement with California to resolve allegations that it manipulated natural gas prices in the state during the energy crisis in 2000 and 2001, according to published reports Thursday.

FERC plans to rule on the “Big Four” cases dealing with the alleged manipulation of the California natural gas and electricity markets at its next regular meeting on March 26, Chairman Pat Wood said last Wednesday.

The Commodity Futures Trading Commission (CFTC) Wednesday charged Enron Corp. and Hunter S. Shively, manager of Enron’s central futures trading desk, with using EnronOnline (EOL) to manipulate the natural gas market, causing a spike in prices at the Henry Hub and affecting the futures price on the New York Mercantile Exchange (Nymex). The CFTC also said Enron operated EnronOnline as an illegal futures exchange.

FERC plans to issue the “Big Four” decisions addressing manipulation of the California natural gas and electricity markets at its next regular meeting on March 26, Chairman Pat Wood said Wednesday.

Standard & Poor’s Ratings Services lowered El Paso Corp.’s credit ratings to ‘B+’ from ‘BB’ on Friday, ending a long and difficult week, that included a 42% collapse in El Paso’s stock price to $4.92/share on Friday from Monday’s open. Investors dumped the company’s stock after it announced that it would cut its dividend 82% to 16 cents annually, sell off another $2.9 billion in assets and exit the rapidly growing liquefied natural gas (LNG) business.

As part of its continuing investigation into the alleged manipulation of western energy markets, the Federal Energy Regulatory Commission has sent out data requests to the top natural gas marketers seeking information related to gas prices submitted to energy trade newsletters (such as NGI) that publish gas price indexes.

As part of its continuing investigation into the manipulation of western energy markets, the Federal Energy Regulatory Commission last week sent out data requests to the top natural gas marketers based on their 2001 physical sales volumes, seeking information related to gas prices submitted to energy trade newsletters that publish gas price indexes.

FERC Chief Administrative Law Judge Curtis L. Wagner said last week he expects to issue an initial decision by the end of August in a long-standing complaint case brought by California regulators, accusing El Paso Natural Gas of withholding transportation capacity from customers during the 2000-2001 heating season in an attempt to drive up prices for natural gas delivered to the Southern California border.

FERC Chief Administrative Law Judge Curtis L. Wagner said Tuesday he expects to issue an initial decision by the end of August in a long-standing complaint case brought by California regulators, accusing El Paso Natural Gas of withholding transportation capacity from customers during the 2000-2001 heating season in an attempt to drive up prices for natural gas delivered to the Southern California border.