Schneider, Trotta Publish Column for Natural Gas & Electricity
Stinson Leonard Street LLP attorneys Jonathan Schneider and Jonathan Trotta comment on FERC's controversial prosecution of energy traders in their recent piece in Natural Gas & Electricity, a monthly journal for the natural gas industry.
Powhatan claims its traders could not have known that their activity was unlawful. Schneider and Trotta argue that Powhatan, and other energy traders should not be surprised by FERC’s aggressive prosecution in this case, even if there is ground for letting them go.
“[S]tudents of the Commission’s anti-manipulation activity have understood that an activity with no legitimate business purpose in and of itself, designed in order to take advantage of a market affected by that activity, or to secure a benefit under tariff, would be the target of the Commission’s unwanted attention. The Powhatan case dramatically underscores that message, and the framework the Commission used for understanding manipulation in Powhatan is likely to continue to serve as a focal point for FERC’s enforcement activity whether or not the traders ultimately prevail. Market participants and advisors would ignore it at their peril.”
Read the full article "FERC Comes Under Fire for High-Profile Prosecution in Powhatan," Natural Gas & Electricity 31/11, ©2015 Wiley Periodicals, Inc., a Wiley company.
Schneider is a partner and co-chair of the firm’s energy regulation practice group; Trotta is an associate in the group. Both practice in the firm’s Washington, DC office.