Manipulation

As part of FERC’s investigation into energy prices and potential manipulation in the western gas and power markets, it has requested some general information on the methodology Natural Gas Intelligence uses in collecting, calculating and publishing natural gas price information (see Intelligence Press, Inc.’s web site: http://intelligencepress.com/methodology.html). The Commission has requested this information by June 4 under Docket No. PA02-2-000.

As part of FERC’s investigation into energy prices and potential manipulation in the western gas and power markets, it has requested some general information on the methodology Natural Gas Intelligence uses in collecting, calculating and publishing natural gas price information (see Intelligence Press, Inc.’s web site: http://intelligencepress.com/methodology.html). The Commission has requested this information by June 4 under Docket No. PA02-2-000.

The Federal Energy Regulatory Commission’s investigation into the possible manipulation of energy prices is a critical first step toward wiping away some of the taint that blankets the entire energy industry in the wake of the Enron Corp. financial scandal and the energy deregulation flop in California, said Commissioner Nora Mead Brownell last week.

The Federal Energy Regulatory Commission’s investigation of possible manipulation of energy prices is a critical first step toward wiping away the taint that blankets the entire energy industry in the wake of the Enron Corp. financial scandal and the energy deregulation flop in California, said Commissioner Nora Mead Brownell.

FERC yesterday cleared El Paso Natural Gas of charges that itrigged the bidding for capacity on its system during an open seasonin February 2000 to favor its affiliates El Paso Merchant EnergyGas L.P. and El Paso Merchant Energy Co. The charges arose when thetwo affiliates ended up the big winners, snaring contracts for 1.22Bcf of firm capacity to the California border – about one-third ofthe capacity on the pipeline.

Despite moves by the Republican-led FERC last week to addresspotential refunds and possible price manipulation in the Californiawholesale power markets, the Bush administration continued to bethe favorite whipping boy of Senate Democrats for its unrelentingopposition to some form of price mitigation for the short term inthe western region.

El Paso and its marketing affiliate El Paso Merchant Energystill face charges of market manipulation through pipeline capacity”hoarding” in a case pending before FERC despite the pipelinecompany’s recent decision to divvy up 1.2 Bcf/d of firm capacityheld by its affiliate among 30 different marketers. Merchant Energyrelinquished all but 277 MMcf/d of firm space on its affiliatedpipeline (see Daily GPI, March 2).

Allegations that large capacity-holders on El Paso Natural Gashave deliberately withheld pipeline capacity from the market todrive up gas prices in California, and that the pipeline wasinvolved in a “conspiracy” in 1996 to block new interstate pipecapacity from entering the state are unfounded, said a companyspokeswoman.