Cathy Landry, spokeswoman for the Interstate Natural Gas Association of America (INGAA), said if FERC
were able to order refunds, a pipeline could be punished for charging the rate FERC
had previously approved.
Glendale did not settle a third case with FERC
, however, in which the commission continues to review the prices charged by the city when it sold electricity into the California ISO markets from October 2000 through June 2001.
Pursuant to the settlement agreement, FERC
will make no findings of fact or conclusions of law.
On a related point, FERC
notes that its recently enhanced monitoring and surveillance capabilities have detected trading anomalies that were tied to various forms of market manipulation, including:imited risk or riskless combinations of trades to enhance the value of a position or portfolio, such as wash trades,repetitive, uneconomic physical trading or flows to benefit a position,trading to affect the formation of an index price,withholding physical generation to benefit a financial and/or physical position; and using virtual bids to benefit a financial and/or physical position.
In announcing the investigation, FERC
said the three pipelines, based on the Form 2 data, appeared to have estimated earned returns on equity of above 20%.
The official explanation, according to FERC
Commissioner Nora Mead Brownell, is that ``investors will not participate in a market in which disgruntled buyers are allowed to break contracts.
Upon validation of the data generated via FERC
Specific statistics in the report include the following: FERC
opened 17 investigations in FY2014, over half of which involved market manipulation, more than half of these 17 new investigations arose from referrals based on conduct observed by FERC
surveillance staff or RTO/ISO Market Monitoring Units, nine notices of alleged violations were issued by FERC
in FY2014, five of which involved alleged market manipulation (two of which have settled); and every settlement of an investigation in FY2014 included provisions requiring the subject to enhance compliance programs and report back to FERC
on the results of those enhancements.
Pipelines and gas producers are on different sides of the rekindled debate over whether FERC
should re-regulate natural gas gathering lines in shallow waters in the Outer Continental Shelf.
expressed justifiable unease about the figurehead nature of most of the 26 members of the ISO board and about the fact real power was invested in a core of board members representing the power generators that benefited from the ISO's actions.
The Court's opinion remands the case back to the FERC
, finding that the FERC
applied the wrong legal standard and ignored relevant factors in denying the Company's complaint.
While Riordan alluded to problems facing proposed LNG terminals, they were hardly in evidence during FERC
's consideration of the Freeport (Texas) LNG terminal which FERC
approved in July, a scant 15 months after the initial application was filed.