FERC documents in California trading case to be secret

The documents will be temporarily kept private under an agency order issued on Friday to "try to encourage settlement negotiations," FERC Judge Carmen Cintron told Reuters in a telephone interview.

So far, more than a half-dozen companies or municipalities have reached tentative deals with FERC trial staff to settle allegations that they used manipulative trading tactics to boost their profits in 2000-01.

The settlements involve relatively small amounts of money, ranging from $17,000 to $857,000, compared to demands from California officials for billions in refunds from unfair trading strategies.

In June, FERC commissioners ordered 43 firms that may have used Enron-style strategies to "show cause" why they should not have to repay the profits gained from the use of these strategies. The agency did not quantify the amount of money at stake.

Judge Cintron said she will will hold a hearing on Wednesday to determine when the secret responses will be made public.

Morgan Stanley (MWD) agreed to pay $857,089 in one of the biggest tentative settlements to emerge from closed-door talks hosted by FERC. All settlements must be approved by FERC's three commissioners before they can be finalized.

Other firms that have reached tentative settlements with FERC trial staff are Reliant Resources Inc., Aquila Inc., American Electric Power Co. Inc. and Mirant Corp.

FERC staff has recommended that similar cases brought against the Los Angeles Department of Water and Power and Bonneville Power Administration be dropped.

Cases that are not settled by Nov. 3 will proceed to formal hearings before a FERC administrative law judge.

The cases are pending in docket EL03-137.