FERC Conducting Two Investigations into Generator Offer Behavior During Polar Vortex

FERC Enforcement Staff revealed during a Commission meeting yesterday that Staff has opened two informal, non-public investigations related to generator offers during the polar vortex.

Staff has also opened an investigation related to the formation of a single monthly gas index.

Regarding the generator offer behavior, Staff said that it has opened two investigations to determine whether certain generators may have improperly benefited from the constrained conditions in the electric markets through offer behavior that resulted in increased uplift payments.

The gas market investigation alleges downward price manipulation in order to benefit short financial derivative positions.

Staff did not provide more specifics and did not identify the market participants which are the subject of the investigations, or the specific markets in which the suspect behavior occurred.

Staff said that all three investigations were at an, "early stage."