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1、STAFF'SINITIALREPORTONPHYSICALWITHHOLDINGBYGENERATORSSELLINGINTOTHECALIFORNIAMARKETANDNOTIFICATIONTOCOMPANIESThe"FinalReportonPriceManipulationinWesternMarkets,"issuedinMarch,2003,inDocketNo.PA02-2-000(FinalReport),suggestedtherewasasignificant1possibilityofphysicalwithholdingofe
2、lectricgenerationfromtheCaliforniamarket.CoincidentwiththeissuanceoftheFinalReport,theCommissiondirectedStafftoconductaninvestigationintotheexistenceofanysuchphysicalwithholdingofpowerfromCalifornia.Accordingly,StaffcommencedaninvestigationtoascertainwhethergeneratorslocatedinCal
3、iforniahadphysicallywithheldenergyfromtheCaliforniamarkettoaffectmarketpricesduringthetimeperiodfromMay1,2000,toJune30,2001.AttheCommissionmeetingofJune25,2003,Staffindicateditwouldnotifytheentitiesoriginallyconsideredinthisinvestigationastowhethertheywouldbesubjecttofurtherinves
4、tigation.Thisreportservesassuchnotification.TheentitieslistedintheAppendixwillnotbefurtherinvestigatedintheinstantmatterunlessinformationcomes2tolightthatwouldrequirefurtheranalysesoftheiractions.Theentitieswho,aspartofthisinvestigation,receiveddatarequestsandrequestsforadmission
5、sandwhoarenot3listedintheAppendixattachedheretoaresubjecttofurtherinvestigation.ThisshouldnotbeinterpretedasCommissionStaffhavingfoundconclusiveevidenceofphysicalwithholdingatthistime,butthatStaffhasnotconcludeditsreviewoftheseentities.1FinalReportatVI-54-55.2Asageneralprinciple,
6、anadministrativeprosecutorhasdiscretionastowhetherorwhomtosue,andprosecutorialdecisioniseitherentirelycommittedtoagencydiscretionandhenceunreviewableunder5U.S.C.S.§701or,atmost,subjecttolimitedreviewunder"arbitraryandcapricious"standardof5U.S.C.S.§706.Presinzanov.dHoffman-LaRoche
7、,Inc.,726F.2d105(3Cir.1984).SeealsoHecklerv.Chaney,470U.S.821(1985).3Oneentitywasservedwithadatarequesttoolatetoreasonablybeabletosubmititsfullresponsepriortotheissuanceofthisreport.Uponreceiptofthedataresponsefromthatentity,Staffwilldeterminewhetheritisnecessarytocontinueinvesti
8、gatingthatentity.1DiscussionIndeterminin