California Governor Gavin Newsom referred to as this week for an investigation by the Federal Vitality Regulatory Fee to find out whether or not market manipulation or anticompetitive habits may clarify why the state’s pure fuel costs are increased than elsewhere within the U.S.

Costs skyrocketed in December through the winter storm to as excessive as $55/MMBtu, prompting California utilities to warn of sky-high payments.

Costs have since fallen considerably however remained above $15/MMBtu final week at some supply factors in California, whereas Henry Hub fuel costs have tumbled beneath $3/MMBtu.

In a letter to FERC Performing Chair Willie Phillips, Newsom acknowledged the influence of chilly climate earlier within the winter however mentioned that “can not clarify the extent and longevity of the value spike.”

Two of the state’s largest utilities, PG&E (NYSE:PCG) and Sempra Vitality’s (NYSE:SRE) Southern California Gasoline mentioned they assist Newsom’s name for an investigation, whereas sustaining they don’t set the value of fuel and prices are handed alongside to prospects with no markup.

State power regulators started hearings Tuesday to look at the causes and impacts of the excessive pure fuel charges.

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Newsom’s name for a federal probe into the pure fuel markets follows his proposal to restrict the earnings of oil corporations working in California by chopping their gross refining margins.