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A federal appeals court recently questioned the US government's oversight of New York state's electricity market in a $67 million legal fight between power companies and their suppliers.
Consolidated Edison and other power companies in New York state have sued the Federal Energy Regulatory Commission to recoup $67 million they claim energy suppliers overcharged them for power reserves.
The power companies say they were overcharged for a period of about six weeks in 2000, and want FERC to authorize retroactive rebates, which the agency has refused to do.
New York State Electric & Gas Corp. and Niagara Mohawk joined Con Ed in seeking the rebates.
FERC lawyer Larry Gasteiger argued the agency's decision was justified, insisting transactions made years ago between buyers and sellers of electricity and reserve power should not be revisited with 20/20 hindsight.
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