Hoping to head off crisis Energy regulators keep an eye out for suspect trades

Every weekday morning, government analysts gather inside the headquarters of the Federal Energy Regulatory Commission to scour the nation’s energy markets for fraud.

They meet in a small room lined with computer screens linked to the country’s electrical grids. The analysts pore over energy sales data, hunting for odd patterns or prices that don’t make sense.

They are trying to prevent a repeat of California’s energy crisis, when traders manipulated the state’s electricity and natural gas markets, drove up prices and triggered blackouts. The analysts, many drawn from the private sector, search for any sign that energy markets across the country are being gamed.

“We’re designed to be skeptical,” said Stephen Harvey, who leads the group. “I will never tell you everything is fine.”

San Francisco Chronicle