Senator Menendez Calls For Federal Examination Into Allegations Surrounding Major Electric Power Company

Electricity wholesaler PJM has been charged by its Market Monitor with undermining oversight that could help keep electricity prices down

July 10, 2007 -- WASHINGTON – U.S. Senator Robert Menendez (D-NJ), a member of the Senate Energy and Natural Resources Committee, today urged the Federal Energy Regulatory Commission (FERC) to hold a full hearing to investigate charges against a major electric power company that could affect electricity prices in New Jersey, 12 other states and the District of Columbia.

PJM, which manages wholesale electricity over an area with a population of 51 million, has been charged with undermining the work of its Market Monitor, who has the responsibility of ensuring a competitive wholesale electricity market. The market monitor has claimed that the company has stripped him of resources, denied him data, censored his reports and transferred some duties to other parts of the company.

“The Market Monitor ensures that PJM is doing its job. If PJM is manipulating the Market Monitor, that raises the possibility that electricity prices are actually higher than they should be,” said Menendez. “These charges carry major implications and whether or not they prove to be valid, they should be taken with the utmost seriousness by the federal government. Consumers in New Jersey and the other areas in question should be ensured that they are not paying more than they have to every time they flip on the light switch.”

Text of the letter to FERC: http://menendez.senate.gov/pdf/LettertoKelliheronPJMMMU7-10-07.pdf

Source: Senator Robert Menendez