Posted on 06/04/2003 12:49:14 PM PDT by lilylangtree
Federal regulators repeated Tuesday that Avista Corp. should be cleared of allegations it manipulated West Coast energy markets in 2000 and 2001.
Attorneys for the Federal Energy Regulatory Commission were responding to allegations made last week by the state of California and city of Tacoma accusing Avista of improper trading practices.
"Each of the criticisms launched by the California attorney general and Tacoma . . . are baseless, without merit and, accordingly, should be rejected," wrote Edith Gilmore and Michael Cotleur, FERC staff attorneys. The FERC staff filing was accompanied by one from Avista attorneys.
Attorneys for California and Tacoma did not return calls seeking comment.
The Avista case is one among many that California and Tacoma hope will return billions of dollars in refunds as the manipulation of West Coast energy markets is investigated. The parties want reimbursements from energy marketers, whom they accuse of overcharging customers.
Avista was investigated by FERC last year due to a series of trades with Enron and Portland General Electric, an Enron subsidiary. The investigation, released in January, found no evidence that Avista knowingly engaged in improper trading. However, a March report by a different FERC staff detailed market manipulation by numerous companies and implicated the Spokane company again.
In particular, Avista was accused of profiting by selling energy it could not provide, improperly importing and exporting power, and clogging transmission lines and then receiving payments to ease that congestion.
When the March report surfaced, FERC Chief Administrative Law Judge Curtis Wagner Jr. asked FERC staff to clarify several issues in its Avista investigation. Wagner then gave California and Tacoma a chance to respond.
Tuesday's filings are a rebuttal by FERC staff and Avista.
FERC and Avista attorneys said Calfiornia and Tacoma's filings contain no new evidence, but instead just attack the trial staff's investigative methods.
"As the adage goes, if a party has the law in its favor, argue the law; if it has the facts in its favor, argue the facts; and if it has neither in its favor, confuse everyone by attacking the messenger," FERC trial staff wrote. "The California AG and Tacoma have not supported their contentions with either the facts or the law."
Next, Wagner will either approve the agreement absolving Avista or schedule a hearing.
"Given the thoroughness of the investigation and the fact that Avista Utilities and Avista Energy have had an unwarranted investigative cloud hanging over their business activities for nearly one year," attorneys for Avista wrote, "they deserve to have this proceeding come to an expeditious end."
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