| WASHINGTON,
DC -- Unable to receive adequate justification from natural gas producers
for this winter’s high costs, U.S. Representative Jan Schakowsky (D-IL)
today announced that the General Accounting Office (GAO) has agreed to
her request to investigate the factors that led to consumers paying exorbitant
prices to heat their homes this winter.
“My
constituents and consumers in the Chicago area and across the country were
forced to pay more than double this winter what they paid in previous years
to keep their homes warm. Some were even faced with the difficult
decision of choosing between food, medicine, or heat. My constituents
will continue to feel the effect of this winter’s gas prices on their pocket
books well into the summer months,” Schakowsky said.
“I
want answers. My constituents want answers. We need answers
in order to provide relief to consumers. Back in January, I called
on President Bush to use his and Vice President Cheney’s close ties to
this country’s oil and gas executives to bring consumers some relief.
It’s clear now that the President and his Administration have no intention
of doing so,” Schakowsky added.
Schakowsky
and Congressman John Spratt (D-SC) asked the GAO to include the following
in their investigation:
-
Natural
gas supply availability from domestic and imported (Canadian and Mexican)
production during the recent period of extremely high gas prices.
-
Changes
in demand by class of gas consumers – residential, small commercial, industrial,
and electric generation (both utility and non-regulated merchant generators),
and the impact of these demand increases on overall prices.
-
The
impact on prices from natural gas-fired electric generation coming on line
in recent years, particularly during the summer of 2000.
-
The
role of the trading of futures contracts on the New York Mercantile Exchange
(NYMEX), natural gas forward contracts, and any over-the-counter derivatives
contracts involving natural gas in the escalation of the market price for
natural gas over the past two years.
-
The
methods used to establish published spot market index prices for natural
gas.
-
The
role of pipeline capacity constraints in causing a shortage of supply and
price increases of natural gas in each region of the country.
-
Whether
manipulation of prices appears to have occurred during the recent price
spike, and if such manipulation occurred, what legislation might prevent
it from recurring in the future.
The
GAO is assembling a team to conduct the investigation and it will begin
work soon. The investigation should be completed within the next six to
eight months, and Schakowsky plans to closely monitor its progress.
|
