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August 14, 2014
Shaun Ledgerwood Featured in New York Times Article on the Risks of Market Manipulation in the Electric Grid

Brattle principal Shaun Ledgerwood was quoted in The New York Times article “Traders Profit as Power Grid Is Overworked,” which discusses the recent trend of energy traders and banks profiting as a result of the increasingly congested electric grid as it struggles to meet demand.

In the article Dr. Ledgerwood explains how profits from congestion contracts, which gain value when the grid becomes overburdened, have become a major concern for federal regulators as they present an opportunity for manipulating electricity market prices. He discusses the Federal Energy Regulatory Commission’s (FERC) recent crackdown in the electricity market, which is illustrated by the Commission’s growth in its Office of Enforcement personnel, from about 60 people to 200 in the last 10 years. Additionally, Dr. Ledgerwood points out that today the FERC is getting more regular access to important data needed to screen for manipulative behavior, with the ultimate goal being to get real-time data to better monitor behavior in the electricity markets.

Dr. Ledgerwood was formerly an economist and attorney for the FERC’s Office of Enforcement and is an expert in competitiveness in energy, financial and commodities markets.

To read the full article, visit The New York Times website.