Electric companies in the state of New York are under investigation by the Federal Trade Commission for suspicious increases in the electric bills of many New York citizens. Some reported increases of up to 60% compared to last year. Electric companies blame the especially cold winter for increased rates, but U.S. Senator Charles Schumer suspects that this may be a scapegoat for price gouging and market manipulation.

Electric companies like National Grid have insisted that the demand for natural gas this winter exceeded the supply, resulting in an increase in the New York electric rates. It is true that if some parts of the state reached capacity in the transmission lines, then the price of natural gas would significantly increase; however, citizens and experts alike are not so sure that this was the case. The Public Service Commission has asked the Federal Energy Regulatory Commission to investigate whether gas pipelines were filled to capacity. If they were not filled, then electric companies are very likely guilty of anti-competitive behavior at the cost of their customers.

Senator Schumer has received phone calls from all over the state begging for help to pull back the curtain of this so-called supply and demand. Residents are having a hard time making ends meet as a result of the energy crisis. One business owner provided billing statements showing an increase from 6 cents per KWH in December to 17 cents in February. Senator Schumer agrees that there is no apparent reason for this outrageous increase. There is no evidence of wrongdoing, but the lack of a logical explanation is quite disturbing.

Senator Schumer hopes that the Federal Trade Commission will see this as an issue concerning anti-competitive behavior. If price gouging and market manipulation have taken place, electric companies will be guilty of Schumer's accusation. Schumer has been quoted as saying that, "Like you, I'm concerned that utilities are using the cold weather and the demand for natural gas to justify skyrocketing rates. We can't let those factors protect these multibillion-dollar companies from scrutiny." 

The New York electricity consumers are relieved to have the attention of the state Senator. It is their hope that this investigation will help to maintain a fair price for electric rates, especially going into the next winter months. Unfair market practices affect everyone: business owners, residents, and official state buildings. Citizens are coming together in an unprecedented unification against these energy providers.