Williams Companies stock dropping
Thursday, June 6th 2002, 12:00 am
By: News On 6
Tulsa based Williams Companies is still reeling today after the Federal Energy Regulatory Commission threatened to pull their energy-trading license.
The feds apparently aren't happy with Williams' answers in connection with an investigation into the California energy crisis. They want to know if Williams contributed in something called ricochet trading. That's where a company buys power from California, sends it to another state and then resells it to California at a higher price.
At first, Williams said it wasn't sure because it hadn't had a chance to check all the records. Now they've told the feds there had been no ricochet trading. Williams Energy Trading President Bill Hobb, "We certainly had we known at the time that the response we got from them was as severe as it was we would have denied at the time."
Williams believes its trading license is secure. The news sent the company's stock tumbling nearly 20% Wednesday.