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Commodity Futures Trading Commission
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Release: 4947-04
For Release: July 1, 2004

U.S. COMMODITY FUTURES TRADING COMMISSION SUES NRG ENERGY, INC. FOR FALSELY REPORTING NATURAL GAS TRADES

WASHINGTON, D.C. – The United States Commodity Futures Trading Commission (CFTC) announced the filing of a complaint today in the United States District Court for the District of Minnesota charging NRG Energy, Inc., (NRG), located in Minneapolis, Minnesota, with violations of the Commodity Exchange Act (CEA) through the knowing delivery of knowingly false reports concerning the price of natural gas to Gas Daily, an affiliate of the McGraw-Hill Companies, Inc.

The complaint charges that from at least August 2001 through May 2002, NRG reported false information, including price and volume information, about natural gas trades to Gas Daily, an energy index reporting service. According to the complaint, Gas Daily and others use price and volume information in calculating surveys or indexes of natural gas prices for various hubs throughout the United States. The complaint alleges that participants in the natural gas markets use these indexes to price and settle commodity transactions, and that natural gas futures and options traders refer to the published indexes for price discovery and for assessing price risks.

The complaint specifically charges that NRG knowingly delivered to Gas Daily information concerning hundreds of natural gas trades, many of which contained false, misleading or knowingly inaccurate information.

Gregory Mocek, Director, CFTC Division of Enforcement, said:
“The egregious misconduct by NRG alleged today is typical of the unlawful activity the CFTC's Division of Enforcement vigorously pursues. Today’s complaint targets deceitful conduct that has the potential to harm our natural gas markets. The CFTC’s strong commitment to aggressive enforcement, together with its actions against energy companies such as this one, proves that the Commission is indeed using all of its authority to pursue illegal conduct in the energy area."

In its ongoing litigation, the CFTC seeks a permanent injunction against NRG barring further violations of Section 9(a)(2) of the Commodity Exchange Act, 7 U.S.C. 13 (a)(2).

The following CFTC Division of Enforcement staff members are responsible for this case: Judith Hutchison, Kim Bruno, Anthony Mansfield, Gretchen Lowe, and Richard Wagner.

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Media Contacts
Alan Sobba
(202) 418-5080
Dennis Holden
(202) 418-5088
Office of External Affairs

Staff Contact
Richard Wagner
Deputy Director
CFTC Division of Enforcement
(202) 418-5390

Related Document
Complaint