CITY FILES RACKETEERING SUIT RELIANT ACCUSED OF DRIVING UP NATURAL GAS PRICES DURING ENERGY CRISIS.Byline: Rick Orlov Staff Writer Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. officials filed a $218 million civil racketeering Traditionally, obtaining or extorting money illegally or carrying on illegal business activities, usually by Organized Crime . A pattern of illegal activity carried out as part of an enterprise that is owned or controlled by those who are engaged in the illegal activity. suit Friday in federal court, accusing a Texas-based firm of driving up natural gas prices during the energy crisis. ``We are serving notice on the natural gas companies that we intend to get our money back,'' City Attorney Rocky Delgadillo Rockard John "Rocky" Delgadillo (born July 15 1960) is the current City Attorney of Los Angeles, California. Career
``Residents of Los Angeles were gouged by big Texas firms that manipulated the natural gas markets during the energy crisis to manufacture big profits.'' The legal action was filed against Reliant Energy Reliant Energy, Inc., based in Houston, Texas, is a non-utility, retail and wholesale electricity provider. In Texas, it provides service to nearly 1.9 million retail electricity customers, including residential and small business customers and commercial, industrial, Services Inc. of Houston, which had a contract to provide natural gas to the Department of Water and Power in 1999. Delgadillo said the contract was improperly im·prop·er adj. 1. Not suited to circumstances or needs; unsuitable: improper shoes for a hike; improper medical treatment. 2. extended in 2000 - by failing to get approval from the Board of Water and Power Commissioners - and prices were driven up by Reliant's practices in manipulating the natural gas market. Reliant spokesman Richard Wheatley said the company has not seen the legal action and would have no comment. Mayor James Hahn For the Iowa politician, see . James Kenneth "Jim" Hahn (born July 3, 1950) is an American politician from the Democratic Party. He was the Deputy City Attorney (1975-1979), City Controller (1981-1985), City Attorney (1985-2001) and Mayor of Los Angeles, California several weeks ago had urged the DWP DWP Department of Work and Pensions (UK) DWP Drinking Water Program DWP Dynamic Weapon Pricing (gamin, Counter-Strike: Source) DWP Department of Water & Power DWP Drinking Water Protection to take action to recover its costs from Reliant because of its activities. Delgadillo said the company engaged in actions such as using rapid-fire trading, manipulating the volume of gas and reporting false information to drive up prices. ``This company made $1 billion off Los Angeles ratepayers,'' Delgadillo said, estimating the losses at $155 per customer. If the city is successful, Delgadillo said that money would go to offset future increases and help the city as whole. Delgadillo said part of the problem was within the DWP itself, where the contract was given routine staff approval, but never went to the commission for final action. ``We had our own problems with this contract,'' Delgadillo said. ``But it doesn't minimize what Reliant did to the city.'' Delgadillo said he also has had conversations with the U.S. Attorney's Office over the possible filing of criminal charges. Rick Orlov, (213) 978-0390 rick.orlov(at)dailynews.com |
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