Reliant Resources subsidiary facing criminal indictment (Price gouging CA)

[RamboLiberal]

http://www.chron.com/cs/CDA/ssistory.mpl/topstory/2439268

Houston-based Reliant Resources disclosed this afternoon that the U.S. Attorney's office in San Francisco has notified the company it intends to seek a criminal indictment against one of its subsidiaries.

Reliant said the indictment will be based on allegations that the subsidiary, Reliant Energy Services, engaged in price manipulation on two days in June 2000 by curtailing its power plant generation in California. That came during the state's energy crisis.

Reliant also said it understands the U.S. Attorney's office is likely to seek indictment against "certain former and current employees of Reliant Energy Services." The company said none of those people is an officer of Reliant Resources.

In January of 2003, Reliant Resources entered into a settlement with the Federal Energy Regulatory Commission regarding the actions that could lead to an indictment.

Reliant agreed to pay $13.8 million but didn't admit or deny that the actions affected electricity prices in any market or violated any law, tariff or regulation.

[Hekate]

1. This is glad news

:kick:

[salin]

2. This is just the tip of the iceberg

related to the gaming of California into the energy crisis. May this just be the beginning of many.

[AlecBGreen]

3. pay $13.8 million?

when they bilked CA out of how much? 10s of millions no doubt.