FERC, Energy Groups Slam CFTC Over Proposal on Lawsuits

The Commodity Futures Trading Commission is encroaching on the Federal Energy Regulatory Commission’s territory with its proposal to allow parties that trade in the wholesale energy markets to sue the operators of power grids for market manipulation, FERC said.

CFTC movement into FERC oversight territory opens the door for private parties to take advantage of regulatory disputes between the agencies, FERC said in a June 15 comment letter to the CFTC. Such an outcome “could increase both regulatory uncertainty and litigation risk and make the markets less efficient,” the agency said.

The May CFTC proposal would clarify that the agency’s ...