CITY SETTLES FERC SUIT FOR $25,000.Byline: Naush Boghossian Staff Writer GLENDALE - Glendale has reached a $25,000 settlement with the Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. in two cases claiming the city profited from Enron's price manipulations, officials announced Thursday. As part of the tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. settlement, Glendale does not admit to, and in fact denies, the allegations arising from the 2000-01 energy crisis. The settlement is expected to be approved by FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability within 30 to 60 days. Under the agreement, Glendale agrees to make three payments totaling $25,000 into a fund administered by the U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. . ``It's a cost-benefit decision by the city,'' said Steve Lins, senior assistant city attorney. ``At the end of the day, it's more prudent to settle for $25,000 than to spend much, much more than that to litigate the issues.'' FERC officials acknowledged in a written statement that it is ``satisfied based on its review and verification of specific transaction data provided by the ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. ... and on the additional information provided by Glendale, that there is no basis for any further investigation into the allegations made ... with respect to Glendale.'' In a March report, FERC listed Glendale among those who may have profited from Enron's price manipulations - and the city could have been forced to repay some of those profits. Glendale earned $1.9 million after retaining Enron Enron A U.S. energy-trading and utilities company that housed one of the biggest accounting frauds in history. Enron's executives employed accounting practices that falsely inflated the company's revenues, which, at the height of the scandal, made the firm become the seventh from June 1999 to June 2000 to market and sell its excess electricity to the California Independent System Operator, which manages the state transmission grid. Glendale did not settle a third case with FERC, however, in which the commission continues to review the prices charged by the city when it sold electricity into the California ISO markets from October 2000 through June 2001. Glendale and other municipal utilities continue to challenge the ability of FERC to conduct this retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a rate review of their sales. Jerry Jordan, executive director of the California Municipal Utilities Association, said the settlement implies that FERC didn't find any wrongdoing wrong·do·er n. One who does wrong, especially morally or ethically. wrong  do . ``Some municipalities looked like they were charging high prices, then got accused of a variety of things after that,'' Jordan said. ``By and large, they weren't making any money and actually got hurt by that market, and there was a lot of trouble getting people past the emotions.'' Naush Boghossian, (818) 546-3306 naush.boghossian(at)dailynews.com |
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