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APGA Supports Winter Storm Uri Legislation

By Emily Wong posted 10-28-2021 11:40 AM

  
On Wednesday, Congressman Joaquin Castro (D-TX) introduced the Gas Consumer Emergency Market Protection Act to prevent natural gas price gouging during emergencies. Congressman Lloyd Doggett (D-TX) cosponsored the bill.

If enacted, the bill directs the Commodity Futures Trading Commission (CFTC) to conduct a study and report to Congress on who benefited from the dramatic price increases that occurred as a result of Winter Storm Uri, as well as recommendations on how to address any similar future events.

The bill also proposes giving the CFTC authority to regulate the spot and day-ahead markets by imposing limits on trading natural gas during federal emergencies to prevent price distortions. The CFTC would do that by conducting a rulemaking to establish a baseline price that trading should not exceed for the duration of the emergency. Anyone trading above that price would be subject to civil penalties of up to $1 million per day.

APGA believes this legislation takes important steps to protect consumers and ensure APGA members are able to continue providing their customers with affordable and reliable energy even during extreme weather conditions. We look forward to working with Congressman Castro’s office to ensure Congress takes action to prevent another energy market crisis like this from occurring again.

A copy of the legislation is available online here.

For questions on this article, please contact Emily Wong of APGA staff by phone at 202-470-4262 or by email at ewong@apga.org.

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