Colorado AG Sent Letter to FERC in Support of Investigations into Potential Energy Market Manipulation During Winter Storms

MARCH 9, 2021

Colorado Attorney General Phil Weiser sent a letter to the Federal Energy Regulatory Commission (FERC) expressing support for the Commission’s efforts to “examin[e] wholesale natural gas and electricity market activity to determine if any market participants engaged in market manipulations or other violations” during the deadly winter storm and power outages that hit Texas and Oklahoma in mid-February. The letter highlighted several indications of potential market manipulation, including “unprecedented spikes in natural gas prices” and “reports that an investment bank ... reported ‘a windfall’ of $210 million from the gas and electricity price swing.” The letter explained that the price volatility directly affected consumers in Colorado, noting that “one Colorado electric utility company estimated that its electric and natural gas fuel costs increased by approximately $650 million.”