April 14, 2015

Brattle Consultants Release Book on Market Power and Market Manipulation in Energy Markets

Brattle principals Gerald Taylor, Shaun Ledgerwood, Romkaew Broehm, and Peter Fox-Penner have authored a book that provides insights and an analytical framework for understanding the legal and economic nuances associated with energy market manipulation. Market Power and Market Manipulation in Energy Markets: From the California Crisis to the Present will be published in April 2015 by PUR Inc.

Since the California crisis of more than a decade ago, the Federal Energy Regulatory Commission (FERC), Commodity Futures Trading Commission (CFTC), and other agencies are opening many market manipulation cases following the recently expanded regulatory authority. Investigations involve both physical and financial commodities and extend beyond electric power into natural gas, electricity and gas derivatives, and financial products unrelated to electric power.

The authors of this book are energy industry and market manipulation experts who draw upon their experience analyzing and assessing trader behavior in regulatory proceedings arising from the Crisis, which resulted in Brattle’s assisting the California Parties, a group representing purchasers, in obtaining approximately $4 billion in settlements from suppliers for the high prices they suffered during the Crisis.

Designed for attorneys, energy traders, compliance personnel, energy economists, regulators, and students, the book gives readers deep insights into market power and market manipulation in energy markets, and discusses how the features of electricity markets and pricing make them particularly vulnerable to manipulation. The book’s framework also provides perspective on the future of manipulation compliance and enforcement under the FERC and CFTC’s continuing mandates, as well as an outline of processes for applying the framework in monitoring activities and in enforcement actions.

Market Power and Market Manipulation in Energy Markets has been featured in a recent Forbes article. To view the article, please visit their website.

The book is available for purchase here.

Associated Experts
Broehm 076
Principal
+1.617.864.7900
Dr. Broehm is an economic expert in the electric utility industry specializing in the areas of market competition, impacts of regulatory policies on wholesale power markets and power assets and valuation, and the evaluation of power procurement. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
0107 1
Principal
Dr. Ledgerwood is an expert in market competitiveness with an emphasis on the economic analysis of potential market manipulation claims in commodities and securities markets. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Taylor 066
Principal
+1.617.864.7900
Mr. Taylor's areas of expertise include contract and market risks and incentives, antitrust and regulatory economics, and transition markets. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Fox penner 131
Academic Advisor
+1.202.955.5050
Dr. Fox-Penner specializes in economic, regulatory, and strategic issues in network industries. His practice centers on energy and environmental policies and electric regulation, planning, and competition issues. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4