Keiser asked last year for probe of gas prices

Excerpts from his blog, Postman on Politics

Attorney General Rob McKenna's announcement last week that he would investigate Washington's record high gas prices surprised Sen. Karen Keiser, D-Kent. Almost exactly a year ago, Keiser asked McKenna to investigate, and she was given a list of reasons why that wouldn't happen.

McKenna's office told her in April 2006 the state has no price-gouging laws, that proving a violation of the Consumer Protection Act is "problematic," and that gas prices are unregulated at the wholesale and retail level.

"No government agency has the power to dictate what the oil companies, jobbers or local gas stations may charge for gasoline. No law requires that gasoline prices be low or reasonable or just," Assistant Attorney General David Huey in the Consumer Protection Division wrote to Keiser.

"This means, under both state and federal law, oil companies and gas-station operators may charge whatever price the market will bear," he continued. "An unexplained price differential, without more, is probably insufficient to invoke the attorney general's investigative power. ... "

Huey said it may be appropriate to update comprehensive study of the state's gasoline market published in 1991.

But last week McKenna issued a news release headlined "Attorney General McKenna Announces Investigation of Washington Gas Prices."

"Should our research uncover price-fixing or other violations of our state's consumer-protection or antitrust laws, the Attorney General's Office stands ready to take enforcement action," McKenna said in the release.

What changed? Not much.

First, it appears that most of the "investigation" by McKenna and the Department of Community, Trade and Economic Development (CTED) will entail updating that old market survey. The Attorney General's Office also has asked consumers to submit tips about alleged price gouging.

The other thing different this time around is that Gov. Christine Gregoire and McKenna have been pushed publicly to do more about rising gas prices.

The Bellingham Herald has been at the forefront of that, and its message has been received. The paper editorialized in January that Gregoire "promised to look into the baffling and unfair prices Whatcom County residents pay for gasoline."

The paper also noted that Whatcom County — home to two of the state's oil refineries — consistently has higher gasoline prices than anywhere else in Washington.

The paper reported that Whatcom County Executive Pete Kremen also asked McKenna to investigate last year.

"It really did pique everybody's interest," Huey said Wednesday. "After that editorial there was some conversation between the AG and CTED at the staff level and they decided, well, we can maybe come up with the money ... and update that [market survey] and see if that gives us any insight into the present market."

Better late than never, Keiser said. "I think he should have taken it on last year," she said. "But it's better to at least have their attention than to continue to feel there is no there, there."

Findings from the first phase of the updated study are due in July. The state will hold a series of public forums in the fall to discuss the findings.

This material has been edited for print publication.

David Postman is The Seattle Times' chief political reporter. Reach him at 360-236-8267 or at dpostman@seattletimes.com