Posted on 06/16/2004 10:27:03 AM PDT by Robert357
SACRAMENTO, Calif. (AP) California Attorney General Bill Lockyer has asked federal regulators to reverse a May order that demands the state pay Enron and other energy companies almost $270 million in refunds stemming from the 2000-01 energy crisis.
The refunds add ``insult to injury by rewarding the sellers a second time for their market manipulation activities and predatory pricing,'' the attorney's general motion said. It was filed Monday with the Federal Energy Regulatory Commission.
----snip-----
The order was particularly unfair considering ``the recent Enron tapes and so much other evidence of market manipulation by the energy generators,'' Lockyer said in an interview Tuesday.
FERC has ordered refunds and is calculating how much power companies owe in overcharges from the energy crisis. At issue are megawatts bought and sold through the Independent System Operator, the manager of the state's power grid.
The May order makes it clear that its refund order includes $2.9 billion worth of electricity purchases made by California energy traders in 2001, when the state stepped in to buy power on behalf of three nearly bankrupt utilities.
In his filing, Lockyer said the state's power buys helped the ISO secure enough energy to keep the lights on. State buyers bought power at the high market price, then resold it at the state's cost ``in order to protect California's electricity grid from blackouts,'' the filing said.
Most of the state's electricity purchases were used by the utilities Pacific Gas and Electric Co., Southern California Edison and San Diego Gas & Electric Co.
But some of the power sold into the ISO market was bought by other energy companies, such as Enron. Those are the sales subject to the refund order, and could cost the state $270 million.
----snip-----
Because the state bought a lot of power, it will be entitled to refunds nearly equal to what it has to pay in refunds, FERC said.
The difference is the $270 million owed to generators, which the attorney general's office said would let energy sellers ``improperly reap millions of dollars in additional profits at the expense of ratepayers.''
he Western Power Trading Forum, said the state was acting as an energy company when it sold power to the ISO, so it should be held to the same rules. ``What's good for the goose is good for the gander,'' said Ackerman, whose group represents electricity sellers.
Because the spot market price was ruled too high, FERC set a new benchmark for what power should have cost. ``Any seller who sold at prices above the benchmark will have to refund the difference,'' Ackerman said. ``No one is exempt.''
The refunds California could have to pay would go to a variety of energy traders and wholesalers, including: $23 million to Enron; Reliant Energy, $33.7 million; Williams, $25 million; Dynegy, $16.1 million; Mirant, $26.7 million; and $33.2 million to Duke.
Enron spokeswoman Karen Denne said the energy company's lawyers hadn't seen Lockyer's motion and any response would be filed with FERC.
Instead of refunds, Lockyer said, a most ``just outcome would be more Enron officials would go to prison, Enron and other generators would be required to make restitution to California ratepayers and FERC would switch loyalties from energy pirates to residential customers and business owners in California. But that doesn't seem to be happening.''
(Excerpt) Read more at kcal9.com ...
Actually this whole thing is getting pretty absurd.
I would like to see FERC really point out all the shady things that the Cal PX, Cal ISO, and DWR did during the energy crisis as they certainly did not operate with "clean hands" in their energy transactions. While the media is fixated on Enron (for obvious smoking gun reasons), there is plenty of blame to go around to just about all market participants and California government regulatory agencies and elected leaders.
I guess this is today's installment of the continuing California versus FERC energy melodrama.
California Just Hates ‘Gougers’ – So Who’s Its Top Energy Adviser? posted Aug. 9, 2001:
The California Independent System Operator, or Cal-ISO, which manages the spot market, says the Los Angeles Department of Water and Power, or LADWP, overcharged the state by millions. In June it sold California power for $1,000 a megawatt hour – 30 times what it charged the month before.And a report released Wednesday from the Independent Energy Producers Association, a California energy trade group, says the LADWP charged more on average for electricity than the out-of-state generators from January to March of this year.
David Freeman used the $200 million windfall he made from selling the state power to help pay down the LADWP’s massive $4 billion debt. L.A.’s mayor at the time, Richard Riordan, was appreciative.
We haven't heard much about David Freeman lately.
Average power prices (per megawatt hour) charged in the first quarter, 2001
*out-of-state companies singled out as ‘gougers’ by California Gov. Gray Davis and others
Source: Independent Energy Producers Association
Apparently, S. David Freeman is still freeloading on Californians as the Chairman of the CONSUMER POWER AND CONSERVATION FINANCING AUTHORITY
If you happen to notice the extremely fine print at the bottom of the page, it says (enlarged for your viewing pleasure):
The content found herein may not necessarily represent the views and opinions of the Schwarzenegger Administration.
BWWWAAAAAAHAHAHAHAHA!
An official statement.... ROFL!
Average power prices (per megawatt hour) charged in the first quarter, 2001
Portland General Electric $660
City of Seattle $640
Powerex $510
Sempra Energy Trading $450
Sacramento Municipal Utility District $330
Bonneville Power Administration $310
Los Angeles Department of Water and Power $300
*Williams Energy Marketing and Trading $290
*Dynergy $250
*Reliant $240
*Mirant $230
*Calpine $220
*El Paso Power Services $210
*Enron $190
*Duke $150
Constellation $95
*out-of-state companies singled out as ‘gougers’ by California Gov. Gray Davis and others
Four of the biggest gougers appear to power companies owned by lefty cities/counties: Seattle, Portland, Sacramento and LA.
Thanks for posting this. Lockliar, had better learn to shut his mouth, or he might be sharing a jail cell with Bubba.
Locliar, the worthless/bribe taking CA AG made this comment:
"Instead of refunds, Lockyer said, a most ``just outcome would be more Enron officials would go to prison, Enron and other generators would be required to make restitution to California ratepayers and FERC would switch loyalties from energy pirates to residential customers and business owners in California. But that doesn't seem to be happening.''
Well, LockLiar, the data shows that the biggest gouging came from power plants owned/controlled by liberal cities. You probably got contributions from them to attack Enron. Speaking of illegal contributions, Lockliar, did your return the illegal contributions from your buddies at Whoreacle?
If I'm not mistaken, "Powerex" is the Canadian utility BC Hydro. Help us out here, Robert.
You have a good memory:
"Powerex Corp., a wholly-owned subsidiary of BC Hydro, is a leading marketer of wholesale energy products and services in western Canada and the western US, and a growing niche player in other markets across North America."
I wonder if LockLiar got an illegal donation from Powerex to keep him quiet about their gouging. If Lockliar feels that Enron gouged, then Powerex did some super gouging.
Me want'm offed the payrolled.
Boy that brings back memories, I now remember at the time rumors among utilties about LADWP spending money like a drunken sailor and not raising rates. Yes, Mr Freeman has been silent for quite a while.
Five days into the Power "Crisis" I said enough already. PULL THE PLUG and let the brokers eat their mega watt lunch. It gets stale pretty fast...
Yes, PowerEx is the export arm of BC Hydro. As to the four lefty cities; Seattle City Light is owned by the Soviet Socialst Republic of Seattle; SMUD is owned by its customers and is a separate government agency from the City of Sacramento; LADWP is owned by the City of L.A. Now the Bonneville Power Administration is a federal power marketing agency (PMA) that is "self financed," unlike many other PMA's. So it is not owned by Portland.
A self financed PMA has fixed annual (like mortguage payments) interest and principal payments that it must make to the federal treasury to pay off all capital investment by the federal government. The interest rates charged are those interest rates used by the US Treasury at the time of investment. As such BPA is funded by ratepayers not taxpayers. Actually BPA pays the U.S. Army Corps of Engineers and the Bureau of Reclamation so those agencies will operate, maintain, and refurbish certain dams that produce power for BPA
Figuring out who gouged more or who was the victim and who was the villian is almost like counting angels on the head of a pin. I am convinced that very few utilities had "clean hands" and therefore can ask the courts to intercede on their behalf. We are now getting into politics and the Enron bankruptcy judge wanting to settle and put that bankruptcy to bed.
They were so absolutely insensed at FERC and were blatantly talking about the political price both the President and the Governor were going to pay for laying so low about this abomination in their view!
Now that's what I call fair and impartial journalism... NOT!!!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.