at the Citizen Power Alliance 2010 Wind Conference
Schumer wants “rogue” energy traders investigated
|U.S. Sen. Charles Schumer, D-N.Y., said today he wants a federal investigation into “rogue” energy traders, whom he said have ripped off New York consumers by as much as $290 million.|
Schumer did not identify the trading firms that he says scheduled electricity transmission for “inefficient” routes between New York and Pennsylvania and New Jersey through the Midwest, avoiding fees incurred by scheduling the most direct route over congested transmission lines between New York, Pennsylvania and New Jersey.
The problem is that electricity takes the most direct route, so the congested lines got even more congested.
Because of the congestion, the New York Independent System Operator, the East Greenbush nonprofit that oversees the state’s wholesale electric market, had to increase fees known as “uplift charges” for all energy buyers. This increase was passed on to consumers, as were other congestion fees.
Schumer’s office said this practice of routing electricity through the Midwest has cost consumers as much as $290 million since January.
Schumer is asking the Federal Energy Regulatory Commission to look into the trading practices, which were not necessarily illegal but exploited loopholes in transmission and trading regulations.
The NYISO wrote to FERC on July 21 detailing the problem.
“New York state’s energy consumers got ripped off by rogue energy traders who are employing deceptive practices and it must stop immediately,” Schumer said in a statement issued today.
posted by CITIZEN POWER ALLIANCE at 3:45 PM - permanent link
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