Washington (Platts)--20Jun2007

The US Federal Energy Regulatory Commission's chief enforcement officer 
Wednesday expressed confidence that the federal government can adequately
police the expanding physical and financial energy markets.

     Speaking at a Platts Energy Podium in Washington FERC Office of
Enforcement Director Susan Court defended the commission's enforcement efforts
as members of Congress and state officials have increasingly called on federal
regulators to explain rising oil, natural gas and electricity prices.

     "FERC, without a doubt, has joined the ranks of federal enforcement
agencies," Court said. "Its ability to enforce its rules and orders issued to
carry out its responsibilities is as great as any agency in the federal
government."

     Court addressed concerns that commission either does not have enough
regulatory and investigative tools to monitor the vast gas and power markets,
or is not using them to the extent it should, saying that FERC investigators
have "adequate tools" to monitor markets and enforce laws barring
manipulation.

     Coming off the market breakdown of the Western energy crisis in 2001-02
and the price spikes after Hurricanes Katrina, Congress strengthened FERC's
authority in 2005 to aggressively pursue possible instances of market
manipulation and penalize energy companies that ignore federal regulations or
try to defraud customers.

     FERC has authority under the Energy Policy Act to impose fines of up to
$1 million per day per violation of regulations. 

     Congress and states have ramped up the pressure on FERC and its chairman,
Joseph Kelliher, to keep a close eye on trading in the financial futures
market that impact the physical gas and power markets.

     "We have adequate tools to do that," Court said, adding that a nearly
doubling of enforcement staff in the past five years is enough to oversee the
interrelated physical and future markets. 

     Kelliher has supported changes in staffing to do just that, she said. "To
the extent that we see a need, he's never said no. We have access to
sufficient information, but we also have staff that understands the
relationship between those markets."

		--Joel Kirkland, joel_kirkland@platts.com