<article><p>Two power trading firms will appeal a judge's decision to throw out their lawsuit alleging that GDF Suez North America withheld its Texas generation to manipulate power prices and benefit other financial positions.</p><p>A federal judge in Texas dismissed the traders' suit last month after finding they failed to make a valid legal claim on which to base their case. The problem with the claims, the judge said, was that all the alleged manipulative activity took place in the Electric Reliability Council of Texas (ERCOT) power markets that were exempted from a federal statute the traders used to make their claim.</p><p>Aspire Commodities and Raiden Commodities on 3 March said they plan to appeal the decision to the 5th Circuit Court of Appeals. They believe the judge reached the "wrong conclusion" about the suit, their attorney Barry Hammond of the Houston law firm Rapp and Krock said.</p><p>GDF said the appeal lacks merit and that it would still fight the claim. </p><p>The power traders told the court last year that they lost $20mn in 2012-13 because of the alleged market manipulation. The suit claimed that when supply was tight, GDF would increase its energy offers to $5,000/MWh or curtail its generation so it could profit from its futures positions on the Intercontinental Exchange (Ice). GDF has denied the allegations and said it has fully complied with all applicable laws and regulations.</p><p>The judge hearing the case dismissed the lawsuit because of another issue. He said while the firms made their market manipulation claims under the Commodity Exchange Act, federal regulators in 2013 exempted from that statute all "energy transactions," which would include trades within ERCOT.</p><p>The judge also rejected the firms' arguments that they could base their claims on Intercontinental Exchange transactions, as he noted all of the alleged manipulation took place within ERCOT markets that were exempt. The judge dismissed the suit with prejudice, blocking them from refiling their claims, because he said another suit would "be futile."</p><p>Hammond said the firms hope the 5th Circuit views the suit "in a different light."</p><p>ck/ee</p><p><br> Send comments to <a href="mailto:feedback@argusmedia.com" target="_parent"> feedback@argusmedia.com </a></p><p><u><a href="http://www.argusmedia.com/Info/General/News" target="_TOP"> Request more information </a></u> about Argus' energy and commodity news, data and analysis services. </p><p><i> Copyright © 2015 Argus Media Ltd - <a href="http://www.argusmedia.com/" target="_TOP"> www.argusmedia.com </a> - All rights reserved. </i></p></article>
