A dozen energy companies may soon be involved in a federal
investigation of natural gas price manipulation
Feb. 20--KANSAS CITY, Mo. -- Current or former employees of more than a dozen
energy companies including Aquila Inc. may soon be involved in a federal
investigation of natural gas price manipulation. The Commodity Futures Trading Commission has already reached 13 settlements
with companies including Aquila and has filed lawsuits against two other
companies accused of providing false information intended to manipulate gas
price indexes. The commission typically gives little information about the status of
investigations. But the commission's chairman, James Newsome, in a speech made
last Friday -- and recently posted on the agency's Web site -- said although the
investigation was being wrapped up the agency was still looking at other
companies and employees of all the companies that had been the target of the
investigation. The speech was made before an American Bar Association committee meeting in
Key West, Fla. Officials declined Thursday to elaborate on Newsome's remarks.
Vincent McGonagle, the deputy director of the commission's Enforcement Division,
said they're "working to a resolution as soon as possible." Aquila agreed last month to settle allegations that it had intended to
manipulate natural gas prices over about a three-year period that ended in
August 2002 by providing false prices and other information to trade
publications that use such data to calculate the indexes. The $26.5 million
civil penalty it agreed to pay was the second largest of the companies that have
settled. The indexes are important because they are used to set the price of
many gas contracts. He said the company had provided whatever information the commission had
asked for, but the agency had not told it where the investigation was heading. "It would be improper for us to speculate," he said.