Lockyer Asks Judge to Order Firms to Release Records
California Atty. Gen. Bill Lockyer, ratcheting up his investigation of possible civil and criminal violations by the state’s power suppliers, is asking a San Francisco judge to order two firms to hand over confidential records.
In a motion filed Thursday in Superior Court, Lockyer said Reliant Energy and Mirant Corp. have failed to comply with subpoenas for documents that were to be produced by March 19.
Amid soaring electricity costs and rolling blackouts, the attorney general launched an investigation of possible manipulation of wholesale electricity prices that have skyrocketed to record levels and have financially crippled the state’s major utilities.
Dozens of other public and private power suppliers are complying with the subpoenas.
But in an interview, Lockyer accused Reliant and Mirant of stonewalling investigators “so they can keep enjoying these exorbitant profits and prices for as long as possible.”
Ultimately, the companies will have to honor the subpoenas, he said. “I’m going to pit bull them,” he said. “This is one we win.”
Both companies say they have done nothing wrong and played by the rules of California’s flawed electricity deregulation plan.
A spokesman for Houston-based Reliant said Thursday the firm is seeking court action of its own to ensure that sensitive business information will not be shared with other public agencies or its competitors.
Last week, Reliant asked a Los Angeles Superior Court judge to clarify the attorney general’s obligation to keep proprietary information confidential.
“We’re glad to cooperate with his investigation to the extent we can,” said Reliant spokesman Richard Wheatley. “[But] we have not received sufficient assurances [that Lockyer] would keep the data confidential.”
Lockyer called Reliant’s court filing “frivolous” and “propagandistic” and insisted that adequate safeguards are in place. He reserves the right under state law to share information with other government agencies aiding in his investigation but has said he will keep sensitive business information from being made public.
Atlanta-based Mirant demanded and received similar guarantees of confidentiality, Lockyer said. Mirant did not return phones calls Thursday.
Lockyer did not discuss details of the probe or the kinds of information he’s seeking. But based on the investigation so far, he said, “it’s beginning to get interesting.”
Other records indicate that the attorney general has sought 91 categories of information about the power merchants’ activities. They include the operation of power plants, trading information that may have been shared by private power suppliers and bidding strategies in the California market.
