Reliant Resolves Claims Linked to Energy Crisis

The Federal Energy Regulatory Commission said Thursday that it had accepted a $512-million settlement with Reliant Energy Inc., California utilities and commission staff to resolve claims stemming from the 2000-01 Western energy crisis.

Specifically, the settlement resolves claims that the Houston-based power generator charged unfairly high prices for electricity during the crisis.

“This marks another significant milestone in bringing closure to the 2000-2001 energy crisis,” commission Chairman Joseph T. Kelliher said.

The commission has now accepted or helped secure settlements stemming from the energy crisis that total more than $6.3 billion, he said.

Reliant officials did not immediately return a call for comment.

In November, the commission accepted a $1.5-billion settlement with Enron Corp. to resolve allegations that the energy company manipulated Western energy markets over a five-year period starting in January 1997.

The commission noted that Reliant’s $512-million refund settlement includes cash payments of $3.5 million each to the attorneys general of Oregon and Washington state.

“The settlement is a comprehensive and reasonable effort by the parties to end their litigation and resolve their legal disputes,” the commission said.

As part of the settlement, Reliant must also update FERC with information regarding sales of electricity in the West. In addition, Reliant will be subject to semiannual independent audits of power outages.

The parties represented in the settlement include the attorneys general of California, Oregon and Washington; the California Electricity Oversight Board; PG&E; Corp.’s Pacific Gas & Electric Co.; Edison International’s Southern California Edison Co. and Sempra Energy’s San Diego Gas & Electric Co.