Posted on 12/29/2003 1:12:46 PM PST by snopercod
WASHINGTON - Federal energy regulators announced settlements with Mirant Corp. and Duke Energy Corp. that could require the companies to pay more than $8 million to settle claims of improper actions during California's 2000-2001 energy crisis.
California officials immediately denounced the settlements announced Friday as too low.
Mirant Corp. agreed to pay nearly $3.7 million to settle claims by California regulators that it improperly sold reserve electricity meant to be used only for emergency purposes or to support grid reliability. The settlement must still be approved by the Federal Energy Regulatory Commission or a judge.
FERC approved a $2.5 million settlement with Duke to settle allegations it manipulated bidding processes and withheld energy during the electricity crisis, and announced a proposed settlement of up to $2.05 million more covering other allegations of market gaming.
Mirant's settlement is a small fraction of the $28 million claim California officials filed against the company, and the state said the Duke settlements were also far below what California is owed.
"FERC has little or no credibility with California, and these settlements and proposed settlement are the latest example of why. They continue to slap wrongdoers on the wrist and slap the victims in the face," said Tom Dressler, spokesman for Attorney General Bill Lockyer.
FERC spokesman Bryan Lee defended the settlements.
"The commission is diligently working to resolve the aftermath of the state's failed market design. The commission will resolve these matters based on the facts and the law, and expects its rulings will withstand scrutiny," he said.
Neither company admitted wrongdoing.
"Mirant is settling today to put this matter behind us and avoid the significant investment in time and money required to fight this suit," said Doug Miller, the company's general counsel. Company officials contend data recorded by the California Independent System Operator, which runs the state's power grid, did not support allegations Mirant was selling reserve power without being instructed to.
"Bringing closure to these protracted proceedings is in the best interest of our shareholders," said Fred Fowler, president and chief operating officer of Charlotte, N.C.-based Duke.
In separate proceedings, California is still seeking $9 billion it believes it is owed from overcharges during the energy crisis.
Where is the outrage among Californians that Davis and Co. spent probably hundreds of millions of taxpayer money on this witch hunt for nothing.
As usual, the press splatters the allegations of "Energy Piracy" all over the front pages, but prints the fact that there was nothing substantial to the original allegations on page D72 next to the pet obituaries.
I am doing a pinglist out of memory so I am sure I have missed some that might still be following this.
You have reached the only one that matters to Mrs. bender...
Just a tad shy of the $9 billion Davis/Lockyer were angling for. And yet more proof of the lies which emanated from the ousted Davis Administration.
I guess that Davis/Lockyer never could spell and the billions were always "millions" except to the press.
Happy New Year to all!
A happy and prosperous new year to you as well!
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