Aquila accused of manipulating markets

? Aquila is one of several firms that engaged in manipulating energy markets in the western United States in 2000 and 2001, according to a federal report.

Kansas City, Mo.-based Aquila, which has previously denied that it engaged in any activity to manipulate prices, said Wednesday it will reinvestigate the allegations and cooperate with federal regulators.

In a report released Wednesday, the Federal Energy Regulatory Commission outlined a broad range of manipulation of natural gas and electricity prices that aggravated electricity supply problems in the West, causing prices to soar in late 2000 and early 2001.

The report concludes that Aquila was involved in an apparent attempt to manipulate natural-gas prices in the Midwest and eastern United States. Federal officials said the company also provided false prices to publications that compile price indices used by utilities to set the price paid for wholesale gas.