TXU abused power market, report says
AUSTIN, TEXAS - Utility TXU Corp., facing scrutiny in its planned $32 billion private-equity buyout, abused Texas's deregulated power market, an independent report says.
The Dallas company manipulated the state's wholesale power market, causing at least $70 million in higher electricity prices in the summer of 2005, the report commissioned by the state Public Utility Commission said.
TXU's wholesale arm made a profit of about $19.6 million through its anti-competitive behavior, the report said.
Overall, the investigation said TXU's actions caused wholesale prices statewide to rise an average of 15.5 percent that summer, The Austin (Texas) American-Statesman reported.
"TXU's behavior constitutes market power abuse," special projects Manager Brian Lloyd wrote in a memo about the 37-page report.
The report could lead to fines of up to $25,000 per day per violation.
TXU rejected the report's allegations, saying it "thoroughly reviewed" its conduct and believed it was "consistent with the commission's rules and policies."
Related News
Pandemic causes drop in electricity demand across the province: Manitoba Hydro
WINNIPEG - The COVID-19 pandemic has caused a drop in the electricity demand across the province, according to Manitoba Hydro.
On Tuesday, Manitoba Hydro said it has tracked overall electrical use, which includes houses, farms and businesses both large and small.
Hydro said it has seen about a six per cent reduction in the daily peak electricity demand, adding this is due to the many businesses and downtown offices which are temporarily closed.
"Currently, the impact on Manitoba electricity demand appears to be consistent with what we saw during the 2008 recession," Bruce Owen, the media relations officer for Manitoba Hydro, said…
