Media April–June 2007
News Release: June 22, 2007 | View Printable PDF Version |
Federal Court rejects challenge to Commission's authority to prevent market manipulation
A federal appellate court today rejected a challenge to the Federal Energy
Regulatory Commission's ability to set rules to prevent market manipulation in wholesale
power markets.
The decision by the U.S. Court of Appeals for the District of Columbia Circuit
found that the Federal Power Act gives the Commission the discretion to investigate and
resolve issues surrounding market-based rates. It upheld rules the Commission issued in
2003 to prevent manipulative practices in wholesale power sales.
"The U.S. Supreme Court's decision earlier this week to leave the Lockyer decision in California undisturbed removed all remaining doubt about our legal authority
to authorize market-based rates," Commission Chairman Joseph T. Kelliher said.
"Today's decision confirms our authority to promote effective competition in wholesale
power markets, by preventing manipulation of those markets."
The short decision effectively dismissed arguments that the Commission could not
authorize market-based rates. "When combined with our new final market-based rates
rule, which the Commission approved yesterday, today's decision clears the way for the
Commission to conduct effective enforcement of wholesale power markets and guard the
consumer from exploitation," Kelliher said.
The court decision, Colorado Office of Consumer Counsel, et. al., v. Federal
Energy Regulatory Commission, is available at www.ferc.gov, under Legal
Resources/Court Cases/Opinions.
R-07-41
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