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
Power grab: 5 arrested after Hydro-Québec busts electricity theft ring
MONTREAL - Five people have been arrested in connection with an electricity theft ring alleged to have operated for five years.
The thefts were allegedly committed by the owners of rental properties who used stolen personal information to create accounts with Hydro-Québec.
The utility alleges that between 2014 and 2019, Mario Brousseau, Simon Brousseau-Ouellette and their accomplices defrauded Hydro-Québec of up to $300,000 worth of electricity. It was impossible for Hydro-Québec’s customer service section to detect the fraud because the information on the accounts, while stolen, was also genuine.
The suspects are expected to face 25 counts of fraud, conspiracy and identity theft.
Hydro-Québec…
