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FERC denies market manipulation complaint against National Grid Generation


From the November 26, 2012 issue of Public Power Daily

Originally published November 26, 2012

By Robert Varela
Editorial Director
The Federal Energy Regulatory Commission has denied a complaint by a Long Island, N.Y., village charging that National Grid Generation LLC manipulated markets in the Long Island control area. In a Nov. 15 order, the commission rejected the village of Port Jefferson’s requests to launch an investigation and to order National Grid to divest its generating units in the area. 

Section 222 of the Federal Power Act "makes clear that there is no private right of action to pursue a manipulation claim under the FPA," the commission said of the village’s market manipulation claims. In any case, the fact that National Grid may "retire or repower its inefficient units or that Long Island energy prices may be higher than surrounding areas does not sufficiently allege manipulation," FERC said. National Grid is a pivotal supplier in the Long Island control area, but the facts "do not show that it has a ‘near monopoly’ or ‘monopoly power,’" the commission said.

Port Jefferson can "contact the Office of Enforcement’s Hotline if it believes that market manipulation has occurred and if it has additional facts to bring to commission staff’s attention," FERC said. "Staff would then determine whether or not to pursue such allegations and how to pursue them."

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