FERC recommends dropping charges;

L.A., other utilities accused of manipulating prices

The San Francisco Chronicle


The staff of the Federal Energy Regulatory Commission has recommended dismissing charges that the Los Angeles Department of Water and Power and several other public and private utilities manipulated prices during California’s energy crisis.

They were among more than 40 utilities and energy companies ordered by FERC in June to explain trading activity that might have helped raise state electricity prices to record levels.

Some companies have agreed to settlements without admitting wrongdoing. One of the largest, Reliant Resources, filed a settlement Friday under which it would pay $836,000, the amount the company said it potentially earned by double-selling power-related services that it held in reserve for emergencies.

FERC staff attorneys moved Friday to dismiss allegations against more than a dozen utilities, including city-owned power agencies in Los Angeles, Anaheim, Pasadena and Burbank. If the recommendations are approved by an administrative law judge, they will go to the five-member commission.

“I’m pleased that, after a comprehensive review of claims that LADWP engaged in illegal gaming activities during the state power crisis, FERC’s trial staff found no basis for these claims of wrongdoing,” said Los Angeles Mayor Jim Hahn.

But Tom Dresslar, spokesman for state Attorney General Bill Lockyer, said Saturday that “this so-called exoneration” should be viewed skeptically.

“FERC’s history throughout this whole debacle has been to be aggressive only when it comes to absolving energy companies of any wrongdoing, to let them off the hook or off easy,” Dresslar said.

Lockyer is investigating manipulation of state energy markets and has submitted thousands of pages of evidence to FERC in support of California’s claim for $9 billion in refunds. The state has also asked a federal appeals court to overrule two unfavorable FERC decisions.

During the 18-month FERC investigation, now-bankrupt Enron has admitted using misleading trading strategies, with nicknames like Fat Boy and Death Star, to milk the state’s energy grid for financial gain. Two former Enron executives have pleaded guilty to criminal charges.

“There’s no doubt that private power companies did by far the most damage,” said Doug Heller, of the advocacy group Foundation for Taxpayer and Consumer Rights. “But we still have some concern that public entities (like LADWP) made off with ill-gotten gains.”

In another development, a federal judge in San Diego dismissed class-action lawsuits by small businesses who accused Duke Power Co. of artificially restricting the supply of electric power to boost prices in 2000.

U.S. District Judge Robert Whaley ruled Friday that FERC has exclusive authority over the issues raised in the lawsuit and that federal law bars any challenges to utility rates that a federal agency has reviewed and approved.
—————
Chronicle staff writer Bob Egelko contributed to this story.

Latest Energy Videos
Video thumbnail
Who is Behind SB 540?
02:29
Video thumbnail
ABC 7: Controversial CA Energy Bill Moves Forward
08:15
Video thumbnail
KCBS-LA (CBS) - Los Angeles, CA: Late-Night Vote Can Spike Gas Prices
02:26
Video thumbnail
KCAL-LA - Los Angeles, CA: How Will Phillips 66 Closing The Refinery Impact Consumers At The Pump?
03:04
Video thumbnail
KCBS-LA (CBS) - Los Angeles, CA: Phillips 66 To Close Refinery
03:01
Video thumbnail
KGO-SF (ABC) - San Francisco, CA: Controversy Over SF's Bottle Bank Pilot
04:40
Video thumbnail
KTLA-LA (CW) - Los Angeles, CA: Newsom Signs Gas Law Aimed At Preventing Spike In Gas Prices
03:14
Video thumbnail
KNBC-LA (NBC) - Los Angeles, CA: New CA Law Aims To Protect Gas Price Spikes
02:14
Video thumbnail
KTTV-LA (FOX) - Los Angeles, CA: New Laws On Oil And Gas In California
03:04
Video thumbnail
Consumer Alert: Newsom Takes on Gasoline Price Spikes
00:31
Video thumbnail
KCBS-LA (CBS) - Los Angeles, CA: Chevron Moving Headquarters to TX
03:03
Video thumbnail
KGTV-SD (ABC) - San Diego, CA: Californians Overcharged For Gas in 2015
01:55
Video thumbnail
KTXL-SAC (FOX) - Sacramento, CA: Oil Windfall Profits Law Under Microscope
06:06
Video thumbnail
KGTV-SD (ABC) - San Diego, CA: Watchdog Blames Oil Industry For High Prices
02:26
Video thumbnail
KGTV-SD (ABC) - San Diego, CA: Who's To Blame For Recent Spikes In Gas Prices?
02:16
Video thumbnail
Support Oil Driller Accountability, AB 3155
00:54
Video thumbnail
Consumer Alert: The Buck Stops This Summer
01:29
Video thumbnail
New Consumer Alert Exposes Deceptive Oil Industry Attack On Governor Newsom
01:39
Video thumbnail
KOVR-SAC (CBS) - Sacramento, CA: Signs Fueling Debate Over Gas Tax
02:24
Video thumbnail
Consumer Alert: More Deceptive Big Oil Ads Targeting California
01:31
Video thumbnail
KGO-SF (ABC) - San Francisco, CA: CRV Fee on Alcohol Starts On January 1st
02:31
Video thumbnail
Consumer Alert: Deceptive Oil Ads
01:38
Video thumbnail
Consumer Alert: Big Oil’s BS Mailer
01:52
Video thumbnail
KABC-LA, CA: Lawmakers Should Prevent Refineries from Selling Expensive Summer Blend of Gas Overseas
02:58
Video thumbnail
KPIX-SF (CBS) - San Francisco, CA: California Gas Prices Are Soaring Again
00:32
Video thumbnail
KCAL-LA - Los Angeles, CA: Gas Prices Skyrocketing
02:52
Video thumbnail
KTLA-LA (CW) - Los Angeles, CA: So Cal Gas Prices Nearing $6 a Gallon
03:20
Video thumbnail
Spectrum News 1 (San Fernando Valley) - Los Angeles, CA: Controversy Over Gas Storage Facility
03:50
Video thumbnail
KFMB-SD (CBS) - San Diego, CA: Gas Tax Increase Takes Effect July 1st
03:23
Video thumbnail
CBS 8 - Los Angeles, CA: What You Need to Know About Gas Prices
02:02
Video thumbnail
KGO-SF (ABC) - San Francisco, CA: BottleBank Update, Is It Really Effective?
02:39
Video thumbnail
Senator Portantino, Shame on You
01:18
Video thumbnail
Senator Portantino: Protect Our Communities From Oil Drillers
00:51
Video thumbnail
KERO-BFL (ABC) - Bakersfield, CA; Oil Drilling Near Homes Can Cause Health and Safety Concerns
03:06
Video thumbnail
KNBC - LA, CA; Consumer Watchdog's Liza Tucker On New Concerns With Santa Susana Field Lab Clean Up
04:09
Video thumbnail
(ABC) - LA, CA; SoCal Edison's New Income Based Proposed Charges Might Not Be As Stable As They Seem
02:40
Video thumbnail
(CBS)-Fresno, CA; Victory For Californians As Bill Passes That Will Regulate Profits Of Oil Refiners
02:17
Video thumbnail
CNBC - Jamie Court Speaks About The Bill That Would Penalize Oil Refineries For Price Gouging
06:39
Video thumbnail
KXTV(ABC) - Sacramento, CA; Governor Newsom Announced A New Deal With Lawmakers To Take On Big Oil
02:56
Video thumbnail
KNBC-LA (NBC) - Los Angeles, CA; Holding Utility Companies Accountable For Power Outages
02:01
Video thumbnail
Consumer Watchdog at CA Senate Energy Cmte 2 22 23
50:54
Video thumbnail
KFMB CW - San Diego, CA; Oil Companies Need to be Held Accountable for High Gas Prices
02:42
Video thumbnail
KTTV (FOX) - Los Angeles, CA; Recap Of Jamie Court's Testimony At The Senate Hearing For Gas Prices
05:07
Video thumbnail
KGTV(ABC) - SD, CA; Jamie Court Will Testify at the Price Gouging Hearing for Rising Gas Prices
01:17
Video thumbnail
KTTV-LA (FOX) - Los Angeles, CA; SoCal Gas Bill Sticker Shock
04:24
Video thumbnail
Spectrum News 1 - Los Angeles, CA; Who Is SoCal Gas Buying Their Gas From?
09:18
Video thumbnail
Why SoCal Gas is at Fault For Doubling Your Natural Gas Bill
01:43
Video thumbnail
KNBC - Los Angeles, CA; Spike In Natural Gas Prices
02:32
Video thumbnail
KCBS - Los Angeles, CA; New Year, New Pain At The Pump
03:02
Latest Energy Report

Subscribe to our newsletter

To be updated with all the latest news, press releases and special reports.