May 28, 2002 — In a letter sent to all sellers of natural gas in the U.S. portion of the Western Systems Coordinating Council and/or Texas during the years 2000-2001, the Federal Energy Regulatory Commission (FERC) has announced its intention to investigate possible market manipulation by gas providers.
FERC has already sent out two rounds of letters ordering electric wholesalers to either admit or deny participating in trading activities such as “wash” or “round trip” or “sell/buyback”. This trading involves the sale of natural gas together with a simultaneous purchase of the same product at the same price.
Now FERC has widened the investigation (Docket No. PA02-2-000) to providers of natural gas trading at locations in the U.S. portion of the Western Systems Coordinating Council (WSCC) and/or Texas during the period 2000-2001.
For more information, visit FERC’s web site at http://www.ferc.fed.us/electric/bulkpower/pa02-2/pa02-2.htm#5-22gas