LAT: Reliant Settles (California) Energy Crisis Suit

[DeepModem Mom]

Reliant Settles Energy Crisis Suit
By Elizabeth Douglass, Times Staff Writer


Reliant Energy Inc. said Monday that it would pay $460 million to resolve claims that it withheld power and overcharged for electricity during California's energy crisis in 2000 and 2001, becoming the last major out-of-state power producer to settle disputes from the troubled time.

The settlement, which would include limited refunds directly to California consumers, closes outstanding civil cases against the company brought by California, its utilities and private plaintiffs, as well as those brought by Washington state and Oregon. Reliant didn't admit wrongdoing....

***

During the state's yearlong energy ordeal, which brought record prices and rolling blackouts, California officials accused several major power producers, including Reliant, of manipulating the electricity market through false plant shutdowns and trading schemes. Last year, a federal grand jury indicted a Reliant subsidiary and four of its managers in connection with an alleged scheme to turn off power plants to force up prices. That criminal case isn't affected by Monday's settlement.

At one point, California regulators and others claimed that ratepayers were owed as much as $9 billion because of alleged electricity overcharges.

California Atty. Gen. Bill Lockyer, who has led the state's fight for refunds, said the Reliant deal was important for ratepayers because "the dollar amount is one of the more significant claims … and it's real money."...


http://www.latimes.com/business/la-fi-reliant16aug16,0,2592736.story?coll=la-home-business

[SoCalDem]

1. Gee thanks for the Chump Change

:puke:

[phantom power]

2. Didn't they soak you guys for billions?

[TahitiNut]

3. Yep. As the story says, up to $9 billion. (I've seen more.)

I doubt there was a householder (outside of LA) who wasn't screwed to the tune of $100 or more that year. Some of the people in LA had a publicly-owned energy company with excess generation capability, so they didn't get screwed. I figure my bills (in Los Gatos - Santa Clara County) ran a total of about $250 above what was 'right' that year.