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."
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Power demand across hotels, offices, recreational facilities and restaurants have dwindled as British Columbians self isolate.
The shortfall means there's a surplus of water in reservoirs across the province.
"This drop in load in addition to the spring snow melt is causing our reservoirs to reach near capacity, which could lead to environmental concerns, as well as public safety risks if we don't address the challenges now," said spokesperson Tanya Fish.
Crews will have to strategically spill reservoirs…
