Quote of the Day - Along with Enron, Dynegy and El Paso Corporation , they broke the rules and violated the law. This settlement holds Reliant accountable for its substantial role in the rip-off that was the energy crisis. - Bill Lockyer
Ready to 'fess up, Reliant Energy (formerly know as Relaint Resources) said Saturday that it will pay a whopping $836,000 to resolve allegations that it manipulated electricity prices in California during the 2000-2001 energy crisis.
That ought to just about cover it. With that massive contribution (tongue planted firmly in cheek here), California's $35 Billion deficit - yes, with a "B" - is well on the road to recovery.
In a classic oxymoron, the CNN article quoted the Federal Regulatory Commission's findings: "The commission found no evidence supporting allegations that Reliant tried to skirt California's electricity price caps, according to the settlement. It also found no evidence that the company sold services without the resources to provide them, the Houston Chronicle reported Saturday."
Riiiight. That's why Reliant is paying that marvelously round number of $836,000.
The Commission says the settlement agreement has yet to be approved by the Administrative Law Judge. The only thing that's online is the FERC docket, and that's not too helpful.
MIPTC wonders whether this settlement monies will go to the FERC or to California. More to follow.
For an updated News Release as of August 7, 2007 click here.