Pelosi, House Democrats to FTC: Investigate Record Gas Prices

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.

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.

House again votes for drilling in Arctic refuge - May 26,2006

WASHINGTON - Citing the public outcry over $3-a-gallon gasoline and America’s heavy reliance on foreign oil, the House voted Thursday to open part of the Arctic National Wildlife Refuge in Alaska to oil drilling, knowing the prospects for Senate approval were slim.

Drilling proponents contend that the refuge on Alaska’s North Slope would provide 1 million barrels a day of additional domestic oil at peak production and reduce the need for imports.

But opponents to developing what environmentalists argue is a pristine area where drilling will harm caribou, polar bears and migratory birds, said Congress should pursue conservation and alternative energy sources that would save more oil than would be tapped from the refuge.’

Good thing the caibou are happy. huh Nancy?

Republicans should hammer her onher obstruction to development.

April 24, 2006: Pelosi Promises “Commonsense Plan” to Lower Gas Prices ... April 24, 2008: Where Is It?
Pelosi Premium Costs the Average American Family $1,400 Per Year

Washington, Apr 24 - On April 24, 2006, then-House Minority Leader Nancy Pelosi (D-CA) promised the American people a “commonsense plan” to lower gas prices. Exactly two years later, we’re still waiting for Speaker Pelosi and her House Democratic colleagues to reveal this much-anticipated plan. And all the while, gas prices continue to soar – up from $2.33 per gallon on January 4, 2007, Rep. Pelosi’s first day as Speaker, to $3.56 per gallon today, according to AAA. With the Pelosi Premium clocking in at an all-time high of $1.23, if there ever was a moment to reveal a “commonsense plan” to reduce gas prices, this is it.

To put the true extent of the Pelosi Premium into perspective, consider that the average American family consumes 1,143 gallons of fuel per year, according to the Energy Information Administration. Based on the $2.33 price per gallon of gasoline when the Democrats took control of Congress on January 4, 2007, a family would have spent $2,663 per year on gas. But based on today’s price – a whopping $3.56 per gallon – that same family would spend about $4,069 per year.

In other words, the Pelosi Premium is costing American families $1,406 per year. That’s $1,406 less for summer vacations…$1,406 less for necessities like food and clothes…and $1,406 less for retirement or college savings. Once again, Madam Speaker, the American people are asking you, “Where is that ‘commonsense plan’ you promised two years ago today?”

House Democrats yesterday had not one, not two, but three chances (Roll Call votes 211, 216, and 218) to demand that Speaker Pelosi finally reveal her “commonsense plan” to bring down gas prices on behalf of their constituents and every American family and small business feeling the pain of the Pelosi Premium. But on all three occasions, they punted, choosing instead to keep the Pelosi Premium firmly in place by keeping her top-secret “commonsense plan” tightly under wraps.

All of this led Investor’s Business Daily to rap Speaker Pelosi and her House Democratic colleagues in an editorial published this morning for making that now-infamous 2006 “commonsense plan” campaign promise to the American people and not going back on their word:

“Wasn’t it two years ago that then-Minority Leader Nancy Pelosi vowed, if her party took over Congress, to cut energy prices - especially gasoline?”

“‘Democrats have a common-sense plan to help bring down skyrocketing gas prices by cracking down on price-gouging; rolling back the billions of dollars in taxpayer subsidies, tax breaks and royalty relief given to big oil and gas companies; and increasing production of alternative fuels,’ Pelosi wrote back in April 2006, as part of her efforts to convince Americans to elect Democrats.”

“How’s that working for you?”

The short answer: not well. Prices have reached historic levels from coast-to-coast, and with the summer driving season on the horizon, they are only going to get worse.

Isn’t it time for the Democratic Majority to finally reveal its “commonsense plan,” or at the very least, isn’t it time to admit to the American people that the Speaker never had one to begin with? At least then, congressional Democrats may finally decide to begin working with Republicans on a real plan to reduce our dependence on foreign sources of energy, lower energy prices here at home, and invest in all forms of energy to create American jobs.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.