Tonko: FERC Needs to Protect Consumers in Wake of Electricity Trading Scandal

Press Release

Tonko: FERC Needs To Protect Consumers In Wake Of Electricity Trading Scandal

Tonko Demands Consumers Receive Refunds

Paul Tonko, Democratic candidate for the New York's 21st District, is calling for New York utility companies to reimburse consumers in response to news that energy traders may have scammed them of at least $250 million.

From January to July of this year, energy traders schemed to save money by re-routing electricity they were selling from upstate New York to Pennsylvania. The end result was an artificial increase in energy costs that stuck consumers with high electric bills.

"On the fifth anniversary of the 2003 Northeast blackout, I call on the Federal Energy Regulatory Commission (FERC) to protect consumers by increasing its oversight of New York's energy market," said Tonko. "As the Chairman of the New York State Assembly's Standing Committee on Energy, I fought to reverse the deregulation program of the mid-1990's out of concern that this kind of market manipulation would hurt consumers and lead to supply problems. I join New York Senator Chuck Schumer and others in demanding that FERC investigate this scheme, find out who is responsible and determine whether any laws were broken. I also call on New York's Utility Companies to reimburse consumers, who were ultimately victimized here," said Tonko.

The state deregulation of the electric industry in the 1990's circumvented the legislature. As a State Assemblyman, Paul Tonko called on FERC to increase it's oversight of New York's energy market in his 2002 report on entitled "New York's Perfect Storm," in a 2006 letter to FERC, and in testimony before Congress in 2007.

"As part of my comprehensive energy plan, I will introduce legislation in Congress that will protect New York's energy consumers from the market manipulation that is artificially driving up electricity prices," Tonko added.

Paul Tonko is the former President and CEO of NYSERDA and served in the New York State Assembly from 1983 to 2007. He announced his bid for the 21st Congressional District on May 20, 2008 among friends, elected officials and union members. Paul has since been endorsed by the Working Families Party, the Montgomery, Schenectady and Schoharie County Democratic Committees, AFSCME / CSEA Local 1000, 1199 SEIU, SEIU Local 200 United, and CWA District 1, USW Local 17, and the New York League of Conservation Voters.

Source