Western US Energy Crisis

Washington, DC: (Apr-02-08) The US Federal Energy Regulatory Commission (FERC) brought charges against Midway Sunset Cogeneration Co., over its role in the Western US energy crisis and the resulting price hike in 2000 and 2001. Records show that California experienced a power supply crisis in 2000, after a drought that cut Western hydropower supplies compounded an already tight supply-demand situation. The FERC began an investigation into the company's trade practices, which revealed that power marketer Enron Corp. and other companies exploited the crisis and gamed California's power market.

Sources stated that as part of a settlement reached between the two parties, Midway will pay $85.7 million to settle claims stemming from its role in the crisis. FERC officials said that the commission oversaw the deal between Midway Sunset and parties including PG&E Corp. (PCG) utility Pacific Gas & Electric Co., Edison International (EIX) unit Southern California Edison, Sempra Energy (SRE) subsidiary San Diego Gas & Electric Co., state Attorney General Jerry Brown and the California Public Utilities Commission. Commission records reveal that as a result of claims related to the crisis, the FERC has approved more than $6.3 billion worth of settlements [CNN MONEY: MIDWAY SUNSET TO PAY $85.7 MILLION IN FERC SETTLEMENT]

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Published on Apr-3-08