Appeals Court Slams Energy Regulators (California)

[jpak]

http://www.lasvegassun.com/sunbin/stories/nat-gen/2006/aug/02/080206223.html

SAN FRANCISCO (AP) - 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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[eppur_se_muova]

1. K&R, should crosspost to GD. nt