Summary
This 8-K filing from The Williams Companies, Inc. (WMB) on June 24, 2002, addresses a critical regulatory matter concerning its subsidiary, Williams Energy Marketing & Trading Company. The filing details the company's response to a June 4, 2002, show cause order issued by the Federal Energy Regulatory Commission (FERC). Specifically, Williams asserts that its power exports outside of California were conducted in a manner consistent with a business practice of avoiding price caps, not for the purpose of circumventing them. This response aims to clarify previous submissions and address FERC's concerns regarding market behavior during a period of significant energy market scrutiny.
Key Highlights
- 1Williams Energy Marketing & Trading Company submitted a narrative response to the FERC's show cause order on June 19, 2002.
- 2The response addresses allegations or concerns related to power exports outside of California.
- 3Williams claims its power export practices were consistent with a policy of not exporting to avoid price caps.
- 4The filing clarifies a previous submission made on May 22, 2002.
- 5This action is a direct response to a FERC show cause order dated June 4, 2002.
- 6The filing includes Exhibit 99.1, which is the full text of the company's response to the FERC.
Frequently Asked Questions
The main purpose of this 8-K filing is to disclose Williams Companies, Inc.'s response to a show cause order issued by the Federal Energy Regulatory Commission (FERC) concerning its subsidiary, Williams Energy Marketing & Trading Company. The company is addressing concerns about its power export practices.
The FERC is investigating the power export practices of Williams Energy Marketing & Trading Company, specifically focusing on exports outside of California and whether these were conducted to avoid price caps.
Williams stated in its response to the FERC that its power exports outside of California were conducted in line with a business practice of not exporting for the purpose of avoiding price caps. They are asserting compliance and clarifying their intentions.
The filing implies that Williams is actively engaged with regulators to address and clarify its operational practices. By submitting a detailed response and asserting their adherence to a policy of not exporting to avoid price caps, they are aiming to demonstrate regulatory compliance.