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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Hope Praytochange who wrote (760713)	3/29/2007 10:57:00 AM
From: DuckTapeSunroof	Respond to of 769670

Texas accuses electric utility of market abuse The Associated Press Published: March 29, 2007 iht.com DALLAS: Texas state regulators have recommended $210 million in fines against the state's largest utility, TXU, after an investigation accused it of manipulating the electric market. The alleged market abuse was observed between June and September of 2005, according to the Public Utility Commission. It wound up costing consumers $70 million and earned the utility $20 million in extra profit, according to an outside expert whose report was released by state regulators two weeks ago. TXU, the largest power generator in Texas, sold power to the market at inflated prices and caused electricity prices to rise 15.5 percent during the summer stretch, the commission said Wednesday. Sophia Stoller, a spokeswoman for TXU, denied any wrongdoing and said that the Dallas-based company was "very disappointed" in the recommended fine. "The accusation of any market power abuse is flatly wrong," Stoller said. "We look forward to exposing the flaws in the analysis as we contest the staff's position." Stoller said that TXU believed it had properly followed the commission's rules, and added that the agency was "clearly trying to penalize TXU inappropriately." TXU has up to 30 days to respond to the state's recommendation, which will then go before the commissioners, Terry Hadley, a spokesman for the commission, said. TXU can either pay the fine or contest it by seeking a hearing before the Texas State Office of Administrative Hearings or a settlement conference. TXU serves 2.3 million customers, mostly in the Dallas-Fort Worth area. The commission recommendation came the same day that TXU announced it would cut electricity prices by 6 percent as part of its pending $32 billion acquisition by private investors. The rate reduction will affect about 1.3 million TXU customers beginning with their next monthly bill. On average, customers using 1,500 kilowatt-hours of electricity per month will save about $150 annually, company officials said. Prices would be cut an additional 4 percent if the deal goes through. A holding company formed by Kohlberg Kravis Roberts, Texas Pacific Group and other investors announced last month that it was trying to acquire TXU for about $32 billion and the assumption of about $13 billion in debt. It would be the largest private buyout ever. TXU shares gained 34 cents to close at $64.94 on the New York Stock Exchange, then climbed another 81 cents in after-hours trading Wednesday. As recently as October 2002, TXU shares were below $6.