CITIZEN POWER ALLIANCE

U.S. Senator Charles E. Schumer today demanded that the Federal Energy Regulatory Commission immediately conduct an investigation into an energy trading scam that allowed players in New York State’s energy markets to reap huge profits while passing on sky-high costs to consumers and municipalities. Between the months of January and July of 2008, market traders were using deceptive energy trading practices that slammed consumers with millions of dollars in unnecessary, additional fees and put the state at risk of blackouts.

In an effort to shut down the practice and protect consumers, Schumer wrote a personal letter to FERC Chairman Joseph Kelliher demanding an immediate investigation into the practices and urging that FERC take immediate action permanently close the loophole.

“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. “From what we know, it wasn't just a dollar here and a dollar there -- these folks may have fleeced New Yorkers out of a quarter billion dollars. FERC’s job is to be the cop on the beat to protect consumers but a loophole is costing us dearly and putting everyone at risk of blackouts. FERC must immediately investigate the market traders’ practices and take swift action to nip this problem in the bud.”

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