Grid operator seeks relief in Lehman case
The Midwest Independent System Operator (MISO), which oversees the power grid in the U.S. Midwest and parts of Canada, and administers a wholesale electric market, said in court papers it needed to close out several transactions with Lehman.
A spokesman at MISO said Lehman owed the grid operator money, but could not say how much was owed. He said Lehman had more than enough cash in collateral to cover the bill.
He could not say immediately how much collateral Lehman had with the MISO, noting the amount depended upon a market participant's level of activity. MISO has an electronic platform where companies and individuals can buy and sell electricity.
A Lehman declined to comment on the filing. The court papers did not specify how much is owed to either party.
At any given time, MISO said it had 32 different types of market charges that could be due from or paid to Lehman, according to the documents. MISO said in the court papers it was trying to complete its "ordinary business practices," adding that its contract with Lehman should excuse it from an automatic stay that prevents creditors from seizing funds at bankrupt companies.
Over the past decade or so, banks like Lehman, hedge funds, brokerage firms and other traders have joined electricity generators and utilities in trading in the power market.
A hearing on the motion is scheduled for Dec. 3 in the case, according the papers.
Related News
Congressional Democrats push FERC to act on aggregated DERs
WASHINGTON - The Monday letter from Congressional Democrats illustrates growing frustration in Washington over the lack of FERC action on multiple power sector issues.
Last May, after the FERC technical conference, 16 Democratic Senators wrote to then-Chairman Kevin McIntyre urging him to develop guidance for grid operators on aggregated DERs.
In July, McIntyre responded, saying that FERC was "diligently reviewing the record," but the commission has taken no action since.
Since then, "DER adoption and renewable energy aggregation have continued to grow," House and Senate lawmakers wrote in their identical Monday letters, "driven not only by state and federal policies, but consumer interest…
