A federal appeals court ordered energy regulators Wednesday to consider ordering stiffer penalties for power companies that manipulated the market and caused blackouts during the 2000-2001 energy crisis.
The 9th U.S. Circuit Court of Appeals said the Federal Energy Regulatory Commission's 2003 handling of some of the fallout from California's energy crisis was ``arbitrary, capricious and an abuse of discretion.''
The state has sought reimbursement for an estimated $8 billion to $10 billion paid by consumers and businesses for overpriced power. FERC ordered energy companies, including several subsidiaries of bankrupt Enron Corp., to pay about $3 billion for market manipulation.
Those repayments cover the period from Oct. 2, 2000 - when power companies were put on notice they could be forced to pay refunds - to June 20, 2001. A three-judge panel of the court said FERC must entertain allegations and possibly demand refunds for market manipulation that occurred before Oct. 2, 2000.
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