Posted on 04/25/2008 8:19:12 AM PDT by 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
Free markets are absolutely beyond the comprehension of Democrats.
She really is an imbecile.
Wait, I thought the Failed Speaker of the Failed Congress had a ‘Commonsense’ solution to gas prices?
Year 2. Zero accomplishments. Failed Speaker Nancy Pelosi’s Failed Congress.
Dear Nancy,
Fuel prices have gone up since you guys took over congress.
All sorts of other things have gone in the toilet since then also. You figure it out.
Yours truly,
The FTC
PS, raising taxes is NOT the cure.
We are the perrenial "whipping boy" of these scum. In memory, never have they found a prosecutable culprit. Other than their own energy policies, which always FEED price rises.
Natural gas is fairly high, might even be near the record just before Enron crashed and burned. Don’t know if this is worth a Congressional investigation at this late date since they had 35 years to do something and didn’t do jack and it’s just too late.
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!
G. Soros knows he is about to be exposed for inflating the oil bubble, and the bubble is ready to explode and the dims will have America's gratitude.
Simple to reason out when the real players are exposed! :-)
MAYBE they should look at the various EPA regulations that cause the seasonal spike every spring for a change instead of pulling the exact same stupid trick every single time. Tend to your duties Congress and pull some oversight on the bureaucracies for a change. What a set of totally incompetent morons.
At what point are Democrat Party voters going to wake up to the fact that their worst enemy is their own Political leadership?
Congress is one place where you will find cheap natural gas in plentiful supply.
Dear Nancy,
After thorough investigation and careful consideration, I have concluded that the record high oil and gas prices derives primarily from two major issues that are artificially constricting supply: (1) lack of refining capacity due to the fact that liberal over-regulation has prevented the construction of any new refineries in the past three decades; (2) regulations and restrictions placing off-limits billions of barrels of oil in the Alaska National Wildlife Refuge and off the coast of Florida.
They are desperate.
More ‘rat table thumping and demagoguery for Evening news.
Been there, seen that.
If Ms. Pelosi wants to know why gas prices are high, she should look in the mirror.
Good Lord, but she is so stupid.
One thing is sure, the price of gas will fall 40 cents or so per gallon between Labor Day and the election. Bet on it and listen to all the free marketeers’ explanations.
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