I don't see any problem for CPN at the moment with this news : however I think that there are a few unions that have their lawyers looking at this ruling. There have been a few pulp mills and aluminium plants etc. that have been forced to shut down.
Judge says 'very large refunds' due
A roundup of news from the energy sector
By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 6:29 PM ET July 12, 2001
WASHINGTON (CBS.MW) -- A federal energy regulatory judge said Thursday that power generators likely owe California more than a billion dollars for alleged overcharges of electricity provided over the last year.
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Chief Judge Curtis Wagner Jr. submitted his comments in a report to the Federal Energy Regulatory Committee late Thursday.
It is clear, he said, that "very large refunds" are due. "While the amount of such refunds is not $8.9 billion as claimed by the state of California, they do amount to hundreds of millions of dollars, probably more than a billion dollars in an aggregate sum," he wrote in the report.
Farr recommended to FERC that a trial-type, evidentiary hearing be held to consider a modified version of the methodology set forth in a June 19 order that established a mitigated price for power. The methodology would then be used to calculate the refund amount.
See Wagner's report.
Congressman backs $8.9 bln refund claim
U.S. Rep. Sam Farr, D-Calif., announced Thursday that he's circulating a letter among lawmakers in support of California Gov. Gray Davis' $8.9 billion power refund demand.
The governor has alleged that power generators overcharged the state, its utilities and consumers for electricity by $8.9 billion over the last year. Settlement talks reached a standstill this week, with the generators offering more than $700 million to settle the case. Resolution of the issue is now up to federal regulators.
Farr's letter was to be submitted to the Federal Energy Regulatory Commission on Thursday, the deadline for the comment period on the case.
In a conference call with Davis, the governor said he would aggressively argue the state's case to the commission.
"We should not give the generators a free gouge because the determination that the marketplace was dysfunctional, was based on the very high prices from June to November in 2000," Davis said.
Davis said that Judge Curtis Wagner Jr., the judge hearing the case, and FERC "don't seem terribly interested in granting us relief" for that time period. There's "no penalty for the burglaries in the past," he added, "so the FERC has to sanction activities that it finds contrary to the expressed intent of the Federal Power Act."
Enron tops second-quarter views
Enron's wholesale and retail energy operations pushed second-quarter results past Wall Street's profit expectations, offsetting weakness in its broadband division.
Houston-based Enron (ENE: news, msgs, alerts) , the No. 1 buyer and seller of natural gas in the U.S., reported Thursday a 40 percent increase in income to $404 million, or 45 cents a share, which compares to $289 million, or 34 cents a share, earned a year ago. Analysts surveyed by First Call/Thomson Financial expected Enron to earn an average of 42 cents a share in the most recent quarter.
During a conference call Thursday, Enron CEO Jeff Skilling said California's energy problems passed the "high water mark" and he expects the state to get through summer "just fine," leading to lower wholesale prices.
See full story.
Court OKs Calpine, PG&E pact
A U.S. Bankruptcy Court approved a pact Calpine announced nearly a week ago with bankrupt Pacific Gas &Electric that will likely guarantee the payment of $267 million in back debt.
Under the terms of the agreement, Calpine (CPN: news, msgs, alerts) will be paid 100 percent of all past due amounts plus interest on contracts with its qualifying facilities, also known as environmentally friendly power generation facilities, once the court approves a reorganization plan for the PG&E utility. |
