Power Producers to Shoulder More Costs

Calpine Corp., Reliant Resources Inc. and other U.S. power producers must shoulder more of the costs of connecting new plants to local utilities’ transmission grids, U.S. regulators said.

The Federal Energy Regulatory Commission ordered the changes to a July rule after utilities including Southern Co. and Entergy Corp. objected, saying it would have been unfair to existing customers.

At issue is who pays for new equipment or high-voltage lines needed to ensure the grid doesn’t become overloaded by a new plant.

Separately, FERC approved a refund by Reliant Resources Inc., four other power sellers and Morgan Stanley of $1.93 million in profits to settle allegations they tried to manipulate power prices during California’s energy crisis of 2000 and 2001.

From Bloomberg News