Subsidiary of Reliant may be indicted by feds (California 2000 crisis)

[Judi Lynn]

March 9, 2004, 1:02AM

Subsidiary of Reliant may be indicted by feds
California officials allege price manipulation in 2000
By LAURA GOLDBERG
Copyright 2004 Houston Chronicle

Federal prosecutors in California intend to seek a criminal indictment against a subsidiary of Houston-based Reliant Resources, the company disclosed Monday.

Reliant, which was notified Friday by the office of the U.S. Attorney for the Northern District of California, said the expected indictment would be based on allegations that the subsidiary, Reliant Energy Services, engaged in price manipulation on two days in June 2000 by curtailing power plant generation in California.

Reliant Energy Services, which itself is based in Houston, buys fuel for and sells the power produced by Reliant Resources' power plants. It essentially serves as the company's energy trading unit.

The company, also said prosecutors are likely to seek indictments against four former or current employees of Reliant Energy Services. None of those people is an officer of Reliant Resources.
(snip/...)

http://www.chron.com/cs/CDA/ssistory.mpl/topstory/2439586
(This may be a free registration site)

[henslee]

1. CA. got screwed by Bush, Cheney, FERC and their energy pals to the tune of

what?.... 14 billion or something like that? Money that will never be entirely recouped, right? And afterward, Cheney/Bush deceitfully blamed our clean air act, our environmental restrictions on "new plants" and claimed that the problem eminated from the state, itself, one more lie -- it was established that out of state wholesalers knowingly manipulated prices. This said, HOW THE HECK CAN THE ADMINISTRATION EVEN THINK THEY HAVE A SHOT OF WINNING THIS STATE???? They have such gall. They truly screwed us brilliantly.

[Judi Lynn]

2. Same subject, different article, from the L.A. Times

March 9, 2004


U.S. Seeks to Indict Reliant Resources Unit
The Houston trader is accused of withholding electricity during the California energy crisis.

By Elizabeth Douglass, Times Staff Writer


Federal prosecutors plan to indict a Reliant Resources Inc. unit on charges that it withheld much-needed electricity to boost prices during California's energy crisis, the Houston-based power company said Monday.

The U.S. attorney's office in San Francisco notified Reliant on Friday that it would ask a grand jury for a criminal indictment against Reliant Energy Services and four of the energy trading unit's current and former employees, Reliant spokeswoman Pat Hammond said.

Reliant said that it would contest the charges and that it didn't expect the indictment to hurt its business. In January 2003, Reliant agreed to pay $13.8 million to settle charges raised by the Federal Energy Regulatory Commission stemming from the actions involved in the criminal probe but did not admit wrongdoing.

In California, word of the possible action cheered those who have been trying to prove that companies and traders manipulated electricity prices and forced consumers to suffer through blackouts and sky-high energy bills in 2000 and 2001.
(snip/...)

http://www.latimes.com/business/la-fi-reliant9mar09,1,569156.story?coll=la-home-business
(Free registration required)

[UpInArms]

3. until some time in the early months of 2001

James A. Baker III was listed as the Chairman of the Board for Reliant Industries.

:puke:

[bvar22]

4. Criminal indictments should extend beyond fraud...

If a single elderly person or invalid or handicapped person died with the rolling blackouts as a contributing factor, ALL of the conspiring execs of ALL of the Corps that withheld electricity should be charged with homicide.

I do not know of an individual death that has been attributed to the rolling blackouts, but suspect that there may be some. Does anyone know of a death?

[lazarus]

5. dupe

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x409229