COLUMBUS, Ohio — A Texas energy company has agreed to pay $30 million to settle allegations that it manipulated natural gas prices, federal regulators said Monday.
Energy Transfer Partners LP was accused of manipulating the price of natural gas delivered to the Houston Ship Channel, one of the principal gateways for gas destined for markets in Texas, the Midwest and Northeast, from 2003 through 2005, according to the Federal Energy Regulatory Commission.
The Dallas-based company will pay a $5 million civil penalty and establish a $25 million fund to settle claims that it profited unfairly during that period.
The commission said the settlement is the largest related to an enforcement action since Congress gave it enhanced enforcement authority under the Energy Policy Act of 2005.
Energy Transfer Partners said it was preparing a statement in response to the announcement.
According to a filing with the Securities and Exchange Commission in August, Energy Transfer Partners said federal regulators were asking the company to give up $69.9 million in profit, plus interest, and $82 million in civil penalties.
Energy Transfer Partners previously agreed to pay $10 million to settle similar allegations made by the Commodity Futures Trading Commission.
Shares of Energy Transfer Partners rose 34 cents to $43.16 in trading Monday.
It has pipeline operations in Arizona, Colorado, Louisiana, New Mexico, and Utah, and owns the largest intrastate pipeline system in Texas along with three storage facilities.
Business, Pages 20 on 09/22/2009