Feds Find California Power Manipulation7 minutes ago By MARK SHERMAN, Associated Press Writer
WASHINGTON - Federal energy regulators said Wednesday that their investigation found widespread manipulation of natural gas and electricity prices and supplies in California.
Pat Wood, chairman of the Federal Energy Regulatory Commission, said that as a result of the manipulation California would receive more than the $1.8 billion in refunds recommended by a FERC judge in December. The exact amount is to be determined in the coming months.
The FERC singled out seven subsidiaries of bankrupt Enron Corp. and five other companies for taking advantage of a dysfunctional market and reaping millions of dollars in unjust profits.
"The price gouging abounded," Commissioner William Massey said. He said he regretted that FERC did not intervene earlier to police the newly deregulated power market in California.
The agency is considering placing limits on the profits of four marketers of wholesale power and banning eight gas companies from selling natural gas in California, Wood said.
The power marketers are Enron Power Marketing Inc., Enron Energy Services Inc., Reliant Energy Services Inc., and BP Energy Company.
The natural gas companies are Bridgeline Gas Marketing LLC, Citrus Trading Corp., ENA Upstream Company, Enron Canada Corp., Enron Compression Services Company, Enron Energy Services Inc., Enron MW LLC and Enron North America Corp.
The investigation also found a close link between natural gas and electricity prices. Gas is the fuel at many power plants.
After a 13-month investigation, FERC concluded "that many trading strategies employed by Enron and other companies violated the anti-gaming provisions" of marketing rules.
"Enron manipulated thinly traded physical markets to profit in financial markets," FERC said, estimating that Enron made more than $500 million in online trading in 2000 and 2001.
FERC investigators recommended that the companies be forced to give up unfairly earned profits.
Investigators also urged the commission to consider sanctions energy companies and public utilities that sold power in California during the summer of 2000. That could further increase the amount of money owed to California since that time period is not accounted for in the refunds that already have been recommended.
Wood said he and his two colleagues also would consider California's request to renegotiate some $20 billion in long-term power contracts signed at the height of the energy crisis. FERC also is continuing to evaluate other evidence the state has submitted to support more allegations that some energy companies withheld power in a bid to increase prices.
FERC planned to make public the California evidence later Wednesday.
The energy crisis cost the state as much as $45 billion over two years in higher electricity costs, lost business due to blackouts and a slowdown in economic growth, according to the Public Policy Institute of California.
Shortcomings in California's energy market rules and a shortage of electricity stemming from the lack of hydropower in the Northwest in 2000 "made this fertile ground for the manipulation we found," said Donald Gelinas, who headed FERC's investigation.
The regulatory agency capped wholesale power prices across the West and instituted other changes in June 2001 that brought a quick end to the energy crisis.
Wood ordered an investigation in February 2002 after California officials repeatedly charged energy marketers with gouging California's utilities and its customers.
Two months later, FERC obtained an internal Enron memo that described trading strategies, including sham transactions and other schemes aimed at creating congestion on the Western power grids and forcing up prices. Two former Enron traders have pleaded guilty to federal charges stemming from the trading strategies.
The memo indicated that other companies had similar strategies, but provided no details. Energy companies have largely denied wrongdoing.
Separately, California last week agreed to a settlement with El Paso Corp., for $1.7 billion, ending a dispute over whether the company withheld natural gas from California to drive up prices.
― hstencil, Wednesday, 26 March 2003 18:17 (twenty-three years ago)
― hstencil, Wednesday, 26 March 2003 18:18 (twenty-three years ago)
"School bully not so tough after being molested"
― donut bitch (donut), Wednesday, 26 March 2003 18:33 (twenty-three years ago)
Still, tis good that CA folk are getting royally un-screwed for a change. Mind you, the refund checks may only be for 5 cents instead of $50, if the company has its way.
― Nichole Graham (Nichole Graham), Wednesday, 26 March 2003 18:47 (twenty-three years ago)
― donut bitch (donut), Wednesday, 26 March 2003 18:55 (twenty-three years ago)
― Ned Raggett (Ned), Wednesday, 26 March 2003 18:57 (twenty-three years ago)
― donut bitch (donut), Wednesday, 26 March 2003 19:06 (twenty-three years ago)
― Ned Raggett (Ned), Wednesday, 26 March 2003 19:07 (twenty-three years ago)
― donut bitch (donut), Wednesday, 26 March 2003 19:07 (twenty-three years ago)
― Nichole Graham (Nichole Graham), Wednesday, 26 March 2003 19:12 (twenty-three years ago)
Bush pushes through his spending bill and the tax cuts he requested have been cut in half (but its still a pointless tax cut for the rich).
A plane carrying three "American government officials" crashed in Colombia. They were looking for Americans kidnapped by FARC after their plane crashed very close to where they themselves just crashed.
There is unrest in Nigeria, resulting in a drop in oil production - Nigeria is a major producer of oil.
― fletrejet, Wednesday, 26 March 2003 19:13 (twenty-three years ago)
― Nichole Graham (Nichole Graham), Wednesday, 26 March 2003 19:14 (twenty-three years ago)
― hstencil, Wednesday, 26 March 2003 19:16 (twenty-three years ago)
― Mr Noodles (Mr Noodles), Wednesday, 26 March 2003 19:16 (twenty-three years ago)
― hstencil, Wednesday, 26 March 2003 19:17 (twenty-three years ago)
http://www.austin360.com/aas/news/ap/ap_story.html/Intl/AP.V0632.AP-Koreas-Nuclear.html
― badgerminor (badgerminor), Wednesday, 26 March 2003 19:20 (twenty-three years ago)
http://www.weeklyworldnews.com/news/index.cfm?instanceid=57356
― nickalicious (nickalicious), Wednesday, 26 March 2003 19:23 (twenty-three years ago)
India, Pakistan play atomic handball No Face Disease stalks Chihiro Matador band smacks Peruvian assTobacco Farmer Mentalist
― donut bitch (donut), Wednesday, 26 March 2003 19:24 (twenty-three years ago)
― donut bitch (donut), Wednesday, 26 March 2003 19:25 (twenty-three years ago)
― stevem (blueski), Wednesday, 26 March 2003 19:25 (twenty-three years ago)
― Mr Noodles (Mr Noodles), Wednesday, 26 March 2003 19:41 (twenty-three years ago)
― hstencil, Wednesday, 26 March 2003 19:43 (twenty-three years ago)
a friend handed me a pamphlet that predicts major aggression towards palestinians while all cameras are pointed at iraq. it was scary and possibly scare-mongering stuff, replete with racist and violent quotes from every major israeli leader for the last 100 years.
― Clare (not entirely unhappy), Wednesday, 26 March 2003 19:45 (twenty-three years ago)
― Rockist Scientist, Wednesday, 26 March 2003 19:46 (twenty-three years ago)
McDonald's must give $10,000,000 to various vegetarian, Hindu, kosher, and children's charities
― donut bitch (donut), Wednesday, 26 March 2003 19:51 (twenty-three years ago)
(also annoyed from seeing Robert Kaplan’s latest Atlantic Monthly story where he practically beatifies leader of Eritrea in opposition to all fact)
I’ve become so cynical about publications I used to somewhat somewhat trust. The amount of bias and inaccuracy I see has made me understand why ppl ignore news period, and why ppl abroad hate western media. I am depressed.
― H (Heruy), Wednesday, 26 March 2003 22:51 (twenty-three years ago)
― I'm Passing Open Windows (Ms Laura), Wednesday, 26 March 2003 23:41 (twenty-three years ago)
― Ned Raggett (Ned), Wednesday, 26 March 2003 23:42 (twenty-three years ago)
― I'm Passing Open Windows (Ms Laura), Wednesday, 26 March 2003 23:48 (twenty-three years ago)
― stevem (blueski), Thursday, 27 March 2003 00:15 (twenty-three years ago)
― stevem (blueski), Thursday, 27 March 2003 00:16 (twenty-three years ago)
― Dan Perry (Dan Perry), Thursday, 27 March 2003 00:23 (twenty-three years ago)
http://www.cnn.com/2003/US/South/03/26/nuns.abducted/index.html
― Lara (Lara), Thursday, 27 March 2003 10:12 (twenty-three years ago)
― MarkH (MarkH), Thursday, 27 March 2003 10:18 (twenty-three years ago)
― stevem (blueski), Thursday, 27 March 2003 10:27 (twenty-three years ago)
April 3, 2003Claims for Jobless Benefits Are Highest Since April 2002By THE ASSOCIATED PRESS Filed at 5:02 p.m. ET
WASHINGTON (AP) -- The number of American workers filing new claims for unemployment benefits climbed last week to the highest point in nearly a year as businesses trimmed jobs in the muddled wartime economic climate.
The Labor Department reported Thursday that new applications for jobless benefits jumped by a seasonally adjusted 38,000 to 445,000 for the week ending March 29 -- a level last reached in the week ending April 13, 2002.
``It is the pall of the Iraqi war, higher energy prices and lower stock prices just weighing on the willingness of companies to maintain jobs,'' said Mark Zandi, chief economist at Economy.com. ``The uncertainty is so high they just can't think about expanding their businesses at this point.''
A second report offered more unsettling news: Activity in the service sector -- normally the engine of job creation in the United States -- contracted in March, ending 13 months of growth.
The Institute for Supply Management reported that its nonmanufacturing index sank to 47.9 in March, from a reading of 53.9 in February. An index reading below 50 means activity contracted; a reading above 50 signifies growth.
``It is clear that the war is having a negative impact on most sectors of the economy,'' said Maury Harris, chief economist at UBS Warburg.
The institute reported this week that manufacturing activity shrank in March, raising fears the economy may be headed for a new recession.
On Wall Street, the disappointing economic news helped push stocks lower. The Dow Jones industrial average lost 44.68 points to close at 8,240.38.
In the jobless claims report, the pace of layoffs was worse than economists were predicting. They were forecasting claims to rise to around 410,000.
Economists say claims above the 400,000 mark generally show an extremely weak job market.
The more stable four-week moving average of new claims rose last week to 426,250. The moving average has been above the 400,000 level for five weeks in a row.
Lackluster profits and uncertainties surrounding the war are some of the factors behind the increasing layoffs. Those same factors also are making companies reluctant to invest heavily in capital projects, further restraining the economy.
After falling into a recession in 2001, the economy has struggled to return to firm footing. It has been a bumpy road to recovery, with three months of economic strength followed by three months of weakness.
With economists predicting subpar growth for both the first and second quarters of this year, the labor market is likely to deteriorate further, the economists say.
The unemployment rate rose to 5.8 percent in February. Economists believe it could move to 5.9 percent or 6 percent for March, and higher in the months ahead. The government reports on the employment situation for March on Friday.
Economists believe the economy lost 40,000 jobs in March alone -- not good news but not as bad as the situation in February, when payrolls fell by 308,000.
To energize the economy and help job creation, President Bush has called on Congress to enact a fresh round of tax cuts.
``Today's bad news makes it even more important for Congress to act and pass the president's proposal,'' said White House spokesman Ari Fleischer.
Treasury Secretary John Snow, in Florida Thursday trying to sell the plan, seconded that notion. Snow offered his own take on the jump in jobless claims. ``I think it's less uncertainty about the war than it is simply some underlying weakness in the economy as a whole,'' he said.
Federal Reserve policy-makers have kept interest rates at very low levels, with the hope that might help cushion the fallout from the ailing job market, a turbulent stock market, higher energy prices and war worries.
A big fear is that a worsening labor market will make consumers, essential to economic activity, more cautious.
The number of workers continuing to draw unemployment benefits soared by 107,000 to 3.61 million for the work week ending March 22, the most recent period for which that information is available.
Continuing benefits were at their highest point since Nov. 16, 2002.
^------
On the Net: Jobless report: http://www.doleta.gov
Institute for Supply Management: http://www.ism.ws/
― hstencil, Thursday, 3 April 2003 20:35 (twenty-three years ago)
― N. (nickdastoor), Thursday, 3 April 2003 20:38 (twenty-three years ago)
― James Blount (James Blount), Thursday, 3 April 2003 23:35 (twenty-three years ago)
― Mary (Mary), Friday, 4 April 2003 01:19 (twenty-three years ago)