Kobach sues energy company for natural gas price manipulation during 2021 winter storm
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Kansas Attorney General Kris Kobach is suing a national energy company that serves as a middleman to Kansas natural gas companies for market manipulation during 2021’s winter storm Uri.
In a lawsuit filed in Shawnee County Court against Macquarie Energy earlier this month, Kobach claims that on Feb. 17, 2021, Macquarie purchased natural gas from the state’s primary supplier, Southern Star, at the highest rate ever paid to the company.
As a result, Kobach argues, the price Macquarie charged its clients — including several major Kansas natural gas companies — was artificially inflated and that cost was passed onto Kansas customers to the tune of more than $50 million.
“Macquarie goosed its net trading revenues profits by tens of millions of dollars – at a minimum – by materially inflating the benchmark February 17, 2021 Southern Star Gas Daily price,” the lawsuit said. It later notes that the company’s net profit projects for the year went up 10% after the storm.
Macquarie Energy declined to comment citing pending litigation.
The company is a provider for Atmos Energy, Black Hills Energy and Kansas Gas Service among others.
In the wake of the 2021 winter storm, all three companies began charging customers additional costs to help recoup their losses.
Kobach is asking the Shawnee County District Court to find that Macquire violated the Commodity Exchange Act and require them to pay damages for the violations.
Price manipulation by energy companies has been the focus of numerous lawsuits and investigations since the 2021 winter storm that swept through the Midwest resulting in increased energy usages, severe supply chain disruptions and rolling blackouts.
During the 2022 gubernatorial race, Republican nominee Derek Schmidt, Kobach’s predecessor as attorney general, was consistently criticized by Democrats for not acting quicker in his investigation of price gouging in Kansas. In September, he told the Topeka Capital-Journal that the investigation was ongoing.
