The Gangsters Behind Interstate Transmission

If you are a regular reader of The Power Line, you will have heard many comments about how electricity traders and investment banks are the real interests pushing huge new interstate transmission lines so they can trade electricity coast to coast in ever increasing amounts.

Here’s why — corruption and market manipulation.

The Financial Times reported yesterday that the Staff of the Federal Energy Regulatory Commission (FECR) was investigating a number of electric power marketing affiliates owned by major banks — including JP Morgan Chase, Barclays, Deutsche Bank AG, and others, on charges of manipulating electricity prices.  Immediately, reporters starting wondering whether this is like Enron’s antics back in the early 2000s, which ripped off California consumers and decimated California’s flawed electricity markets.

The blog post that I have linked to is written by a former staffer at an independent market monitor who worked with energy trading markets.  He appears to know his stuff.  Remember what PJM’s market monitor said about PJM’s capacity auctions: “They are gameable.”  It looks like FERC is investigating more games.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s