Pelosi, House Democrats to FTC: Investigate Record Gas Prices

Speaker.house.gov ^

[Sub-Driver]

Press Releases Contact: Brendan Daly/Nadeam Elshami 202-226-7616 For Immediate Release 04/25/2008 Pelosi, House Democrats to FTC: Investigate Record Gas Prices

Washington, D.C. – Speaker Nancy Pelosi and House Democratic leaders sent the following letter today to Federal Trade Commission (FTC) Chairman William E. Kovacic urging him to investigate record gas prices. The Energy Independence and Security Act of 2007 gives the FTC the authority to probe possible market manipulation of gas prices, but to date, the Commission has failed to exercise its power to protect consumers from skyrocketing energy costs.

Below is a text of the letter:

April 25, 2008

The Honorable William E. Kovacic

Federal Trade Commission

600 Pennsylvania Avenue, N.W.

Washington, DC 20580

Dear Chair Kovacic:

In light of nationwide consumer concern about the record prices for oil and gas at the pump, we urge the Federal Trade Commission (FTC) to immediately initiate a rulemaking to implement the market manipulation authority mandated by Congress in the Energy Independence and Security Act of 2007 (P.L. 110-140). Congress provided this authority to the FTC four months ago -- but to date, the FTC has failed to exercise its power to protect consumers from skyrocketing energy costs. Recent price volatility and investor speculation in the oil market require the diligent oversight Congress called for, especially when oil prices break records daily, hitting $119 per barrel this week.

The Energy Independence and Security Act, which became law last December, directs the FTC to ensure that the U.S. petroleum market is free from price or supply manipulation. Congress gave you the power to levy tough penalties against those who might seek to profit from such illegal activities. Utilized effectively, this new authority will substantially strengthen consumer protections against high energy prices. More importantly, vigorous enforcement will help lower and stabilize prices, increase market transparency, and provide Americans with confidence that retail gasoline and diesel prices are free from the influence of anticompetitive practices and the exercise of market power.

This new authority granted to the FTC is modeled on the anti-manipulation authorities utilized by other agencies such as the Securities and Exchange Commission (SEC) and the Federal Energy Regulatory Commission (FERC). Specifically, Title VIII, Subtitle B of the Energy Independence and Security Act is modeled on section 10(b) of the Securities Exchange Act of 1934 for which a substantial body of case law has been developed over the last half century. In fact, the Supreme Court has compared this body of law to “a judicial oak which has grown from little more than a legislative acorn.” Blue Chip Stamps v. Manor Drug Stores, 421 U.S. 723, 737 (1975).

FTC has acknowledged that oil and gas markets are susceptible to manipulation. In 2006, the FTC’s Congressionally-mandated investigation of gasoline prices after Hurricane Katrina acknowledged the possibility that the petroleum industry can manipulate prices by reducing production, distribution, or inventories or increasing margins.

We need aggressive oversight to ensure such actions are not presently occurring, and to punish them if they are cheating consumers. The FTC must no longer delay action on implementing the mandate from Congress to stop market manipulation as American families and businesses struggle to deal with record gas prices.

Sincerely,

Nancy Pelosi Steny Hoyer

Speaker of the House House Majority Leader

James E. Clyburn Rahm Emanuel

House Majority Whip Chairman, Democratic Caucus

John Dingell Henry Waxman

Chairman, Energy and Chairman, Oversight

Commerce Committee and Government Reform

Edward Markey

Chairman, Select Committee on

Energy Independence and Global Warming

cc: Pamela Jones Harbour, FTC Commissioner

Jon Leibowitz, FTC Commissioner

J. Thomas Rosch, FTC Commissioner

[Dog Gone]

It’s the farm cartel, dammit.

We need a windfall profits tax on corn.

[AGreatPer]

I still think they are punishing the US because we have a potential Democracy going in their area. They are sticking it in our ear.

[BOBTHENAILER]

We need a windfall profits tax on corn.

Bwaaaaahahahaha

It would only dent the subsidies.

[Dog Gone]

What I like best about what the Democrats are proposing with regard to a windfall profits on oil is that this would help the consumer.

First of all, oil companies are not making a larger return on investment than other industries. But if you take away their profits, you take away their ability to drill new wells.

This increases the supply of oil and natural gas in what way?

No, it increases the supply of money to the Democrat run Congress at the expense of consumers and oil companies.

It’s madness.

[dr_who]

Imbeciles voted her into office, and she does their bidding.

[headstamp 2]

This woman may be the stupidest person on the face of the earth.

[headstamp 2]

I think they also keep turning the car on and off.

[4woodenboats]

The oil company executives should trumpet loudly how the government rakes in over twice as much money from each gallon of gas as the oil companies do. They should also point out that Congress has blocked drilling for oil in (fill in the blank) for decades. Refinery capacity is limited due to environmental regulations and lawsuits that make it nearly impossible to build new refineries or to upgrade and improve older refineries. Don’t forget those futures speculators that are also having a noticable effect on the price of gas. Mentioning a few big Dem donors such as Soros might help embarrass the Dems. The executives should be shouting this stuff from the rooftops!

I agree wholeheartedly. But not just the oil companies.

We need to hear from truckers, retailers, commuters, people losing their homes because just getting to work is sucking up their mortgage dollars, literally millions of Americans are victims of the Democrats Deliberately Engineered Recession D.E.R..

We have all the oil and natural gas we need but the democrats consistently refuse to let us at it. Instead, we burn our corn, so that skyrockets, along with everything that normally eats it.D.E.R.

They are just as desperate for this recession as they were losing the war and for the same reason - the democrat's insatiable appetite for absolute, unchallenged power. They desperately need a catastrophe that they can blame on a Republican administration, and are ready, willing, and experienced in engineering them.D.E.R

I'd sure like to see a 527 spell this out in a factual, step by step documentary based exclusively on the Rat's legislative attacks on the citizens and military (D.E.R.), and get this out in the open once and for all.

I'd donate to a well done expose' like that, just as I donated to a large group of indignant sailors who had to get the word out about a certain treasonous bilge rat.

[BOBTHENAILER]

This increases the supply of oil and natural gas in what way?

You'd never make it in the MSM. Your question is WAY TOO hard.

Back to your cartel theme, a few years ago when a Freeze in FL & CA practically wiped out the orange crop, I wanted my soap box rantings about "BIG ORANGE" colluding to triple the price of OJ heard loud and clear. Ah well, they just don't have a funny bone.