ANDREWS CONDEMNS WALL STREET PRICE-FIXING BY OIL AND GAS COMPANIES
Urges Congress to Pass His Bill to Protect Consumers from Ruthless Practice

TRENTON -- With gas prices nearing $4-a-gallon, Democratic U.S. Senate candidate Rob Andrews said yesterday it was urgent that Congress intervene by closing a loophole allowing big energy companies to ruthlessly drive prices higher by manipulating the commodity markets. Andrews said Congress should approve legislation he previously introduced that would reinstate the government's authority to police these unfair trading practices, which artificially inflate energy prices paid by consumers.

"It is simply irresponsible to delay for one more day taking action to end this blatant price-fixing," Andrews said. "People cannot afford these outrageous energy prices. The staggering cost of filling your tank with gasoline has created a terrible hardship on millions of people here in New Jersey and across the nation. We can – and we must – do something now to protect consumers."

The high energy costs, Andrews said, affects the price of items from food to office furniture, walloping consumers and cutting into the bottom line of every business. "We cannot," he said, "allow big oil and gas companies to continue their ruthless assault on the American people by manipulating the oil and gas markets, driving all of our prices even higher. It is price-gouging, pure and simple."

Andrews issued his challenge to Congress during a news conference at the Statehouse. Motorists on the turnpike were hit again yesterday with a new round of gasoline price increases at service stations along the highway.

Joining Andrews to support him in the effort was Eric DeGesero, executive vice-president of the Fuel Merchants Association of New Jersey. DeGesero said Andrews has been "a leader on the issue of energy market speculation in general and the drive to close the Enron loophole in particular. His demonstrated leadership on this issue will be essential in the U.S. Senate."

Oil and gas is being bought and sold on energy markets, much like stocks on the stock exchange. Energy used to be traded on markets regulated by the U.S. government but has now expanded to new electronic markets that are exempt from regulation. The so-called Enron loophole was created after Enron lobbied Congress to include the exemption in 2000. Since then the door has been left open for unfair trading on these markets. According to many financial analysts, this trading by the energy industry has resulted in a 20-to-25 percent increase in oil and gas prices. That would account for up to $40-a-barrel on the price of a barrel of gasoline, which now sells at $100-a-barrel. The legislation sponsored by Andrews would reauthorize the government to police this trading and ensure that the price paid by consumers at the pump is the real price – not one artificially raised by market speculation."

"The Enron fiasco taught us what dishonest traders can do to ordinary consumers when there is no one watching," Andrews said. "We hear a great deal of talk about oil prices, but not many real solutions. Now is the time for action. I am working with both my Democratic and Republican colleagues to support HR5853 and have it brought up for a vote before the full House. I will continue to work for fair competition in the energy markets and will fight to give the government the ability to protect its citizens from unfair market speculation."