Duke Energy, Mirant Settle Power Case

Federal energy regulators unveiled settlements Friday with Duke Energy Corp. and Mirant Corp., two California power plant operators accused of behaving badly during the energy crisis.

The Federal Energy Regulatory Commission approved a $2.5-million settlement with Duke, resolving charges that the North Carolina company withheld electricity from the market during the 2000-01 crisis.

Duke and FERC trial staff also filed a settlement of market-gaming allegations that could result in a payment for at least $550,000 and perhaps as much as $2.05 million, which must be reviewed by the full commission.

Mirant and FERC staff reached a $3.66-million settlement of charges related to the sale of ancillary services, which are various types of backup power to be sold to the California Independent System Operator.

Tom Dresslar, spokesman for California Atty. Gen. Bill Lockyer, said FERC was not being tough enough, allowing the companies to settle for too little. “I hope that the energy companies are going to buy FERC some new kid gloves for Christmas because the ones they have been using must be worn out,” Dresslar said.

Duke and Atlanta-based Mirant did not admit guilt and said they settled to avoid costly litigation. Mirant noted that its settlement was a fraction of the $28 million in claims sought by California officials.