Should FERC look to all Securities and Exchange Commission precedent for a model?
Michel Marcoux is a partner in Bruder, Gentile & Marcoux LLP, a law firm in Washington, D.C. Contact him at jmmarcoux@ brudergentile.com.
New regulations from the Federal Energy Regulatory Commission (FERC) to prevent energy industry market manipulation take deep root in securities industry law. Modeled in part on the Securities Exchange Act of 1934 (Exchange Act), the Energy Policy Act of 2005 (EPACT) outlaws direct or indirect use or employment of manipulative or deceptive devices or contrivances in energy industries FERC regulates under the Natural Gas Act (NGA), the Natural Gas Policy Act of 1978 (NGPA), and the Federal Power Act (FPA).
That statutory mouthful boils down to a prohibition against manipulation and fraud in U.S. wholesale markets for natural gas and electric energy. EPACT does not prohibit merely negligent practices or corporate mismanagement in those markets.