FERC examining “wrongdoing” in power markets during cold snap
By Jame Osborne February 22, 2021
The Federal Energy Regulatory Commission announced Monday it would be examining power market activity over the last week for incidents of market manipulation as cold weather ravaged power grids in Texas and other states.
In Texas, the state’s grid operator reported close to a third of power generators went offline due to the cold or weather-related fuel shortages, forcing widespread blackouts and causing wholesale power prices to spike to more than 300 times normal levels.
FERC investigators will be screening both natural gas and electricity markets for signs of manipulation, as part of “ongoing surveillance of market participant behavior,” the commission said.
The investigation comes as millions of people in Texas lost power for days on end, resulting in deaths and tens of billions of dollars in economic damage.