FERC approves settlement with Canadian utility in California Crisis
The agreement settles allegations that Powerex used trading tactics to inflate energy prices during the 2000-01 crisis.
Last year, FERC commissioners ordered some 43 major utilities, smaller energy traders and city-owned utilities to prove they did not violate trading rules to boost profits.
Powerex and other companies denied any wrongdoing and said the soaring electricity costs simply reflected market conditions and California's poorly designed electricity deregulation plan. Powerex will return $1.3 million in revenues to its customers to settle charges that it "participated in alleged gaming practices" with failed energy trading giant Enron Corp., FERC said in its order.
The utility, owned by the province of British Columbia, welcomed the initial deal reached with FERC trial staff in October as a way to end costly litigation.
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