At a Platts Energy Podium Roundtable, US Official Emphasizes FERC's Solid Enforcement Role in Energy Markets

At a Platts Energy Podium Roundtable, US Official Emphasizes FERC's Solid Enforcement Role in Energy Markets

June 21, 2007

    WASHINGTON, June 21 /Xinhua-PRNewswire/ -- The chief
enforcement officer of the U.S. Federal Energy Regulatory
Commission (FERC) on Wednesday expressed confidence that
the federal government can adequately monitor the expanding
physical and financial energy markets.

    At a Platts Energy Podium roundtable with reporters,
FERC Office of Enforcement Director Susan Court emphasized
the commission's enforcement efforts as members of Congress
and state officials increasingly call on federal regulators
to explain rising oil, natural gas and electricity prices.

    "FERC, without a doubt, has joined the ranks of
federal enforcement agencies," Court said. "Its
ability to enforce its rules and orders issued to carry out
its responsibilities is as great as any federal agency in
the federal government."

    Court addressed concerns that the commission either
does not have enough regulatory and investigative tools to
monitor the vast gas and power markets, or is not using
them to the extent it should. She insisted that FERC
investigators have "adequate tools" in terms of
information and authority to monitor markets and enforce
laws barring manipulation.

    Coming off the market breakdown of the Western energy
crisis in 2000-01 and the price spikes after Hurricanes
Katrina and Rita, Congress strengthened FERC's authority in
2005 to aggressively pursue instances of market manipulation
and penalize energy companies that ignore federal
regulations or try to defraud customers.

    FERC has authority under the Energy Policy Act of 2005
to impose fines of up to $1 million per day per violation
of regulations. 

    Congress and states have ramped up the pressure on FERC
and its chairman, Joseph Kelliher, to keep a close eye on
trading in the financial futures markets that impact the
physical gas and power markets.

    "We have adequate tools to do that," Court
said, adding that a nearly doubling of enforcement staff in
the past five years is enough to oversee the interrelated
physical and future markets. 

    Kelliher has supported changes in staffing to do just
that, she said. "To the extent that we see a need,
he's never said no. We have access to sufficient
information, but we also have staff that understands the
relationship between those markets."

    Sponsored by Platts, a division of The McGraw-Hill
Companies, Platts Energy Podium provides an ongoing forum
for prominent newsmakers and the press to address important
energy and environmental issues. Credentialed members of the
media may receive complementary registration for Energy
Podium events by contacting Nancy Covey at 202-942-8719,
[e-mail]. A recording of the Susan Court
session is available via podcast at
http://www.energypodium.platts.com .

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