Judge Turns Down Avista Settlement

A federal judge declined to certify a settlement that would have cleared Avista Corp. of allegations that it helped Enron Corp. manipulate power prices in California during the state’s energy crisis of 2000 and 2001.

Administrative Law Judge Curtis L. Wagner said he was caught “between a rock and a hard place” after a Federal Energy Regulatory Commission probe found Avista was involved in questionable trading. He scheduled a conference for May 20 to decide whether to certify a new settlement or set a trial.

Shares of Spokane, Wash.-based Avista lost 33 cents to $11.05 on the NYSE.