Energy regulators order refunds of electricity charges

Energy regulators order refunds of electricity charges

October 11, 2001

WASHINGTON (AP) — Federal energy regulators have directed four energy companies to refund excessive charges for electricity sales in California and 10 other Western states in July.

The order from the Federal Energy Regulatory Commission does not include the amount of the refunds, which the California Independent System Operator, which manages much of California’s electricity grid, was attempting to calculate Monday.

The commission’s action was the first of its kind since its imposition in late June of a ceiling on wholesale power prices in Western states, an outgrowth of soaring prices in California’s deregulated electricity market.

Power sales above the ceiling may be allowed if the companies can justify them within seven days of the end of the month.

The FERC order, issued late Friday, applies to sales made by affiliates of Dynegy Inc., Mirant Inc., Reliant Energy and the Williams Cos.

In the case of Dynegy and Mirant, FERC turned down the higher prices partly because the companies were late with their paperwork — two days late in the case of Dynegy, one day for Mirant.

"We reject Dynegy’s and Mirant’s cost justifications both because they are untimely and because neither company supported in detail its actual costs for the transactions," the commissioners wrote.

FERC said Reliant and Williams failed to justify the prices they charged.

Williams spokeswoman Paula Hall-Collins said the amount in question is under $30,000, and that Williams would contest the refund order.

Spokesmen for the other companies said they did not have dollar figures available, but Richard Wheatley, a Reliant spokesman, said, "It’s not that big a deal."

Other companies that exceeded the ceiling, but did not submit justification, also will be required to provide refunds, FERC said.

It did not name any other company.

In addition to California, the other states are Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming.

The FERC order is independent of a dispute over how much energy wholesalers overcharged California at the height of the state’s power crisis late last year and early this year.

A FERC administrative law judge is expected to send his recommendations to the commission in early March.