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Enron Mail |
I am reviewing my ethical obligations to see if I can pounce on this reward.
Steve Hall <steve.c.hall@enron.com< Sent by: "Report mailer problems to http://www.quicken.com/support" <nobody@nowhere.com< 04/11/2001 05:02 PM Please respond to Steve Hall To: undisclosed-recipients:; cc: Subject: Calif Atty Gen Offers $50M Reward In Pwr Supplier California hits a new low. ------------------------- Article ------------------------- Wednesday, April 11, 2001 12:15 PM <!--TEXT--< NEW YORK (Dow Jones)--California Attorney General Bill Lockyer is offering a reward of more than $50 million to anyone who has information that will help his office prosecute power suppliers accused of gouging the wholesale electricity market in the state. Lockyer's Energy Emergency Task Force has been conducting an investigation for several months into allegations that generators and natural gas marketers have engaged in "any wrongful act which may have resulted in reduction in the California (electricity) supplies or increase in the price of natural gas or electricity." "My office is conducting an aggressive investigation into whether energy providers have violated any laws," Lockyer said. "It is possible that one or more members of the public can help with information, and if so, the financial reward to such a person or persons could be enormous." Gov. Gray Davis earmarked $4 million of state funds so Lockyer's office can investigate claims of collusion, profiteering, price gouging and other anticompetitive behavior on the part of generators. Generators such as Reliant Energy Inc. (REI) and Duke Energy (DUK) have vehemently denied the claims, saying their behavior in the wholesale electricity market has already been investigated by federal regulators and various state agencies, all of whom have concluded that the companies did not violate any antitrust laws. Recently, however, the California Independent System Operator, manager of the state's electricity grid, concluded a study that found the same companies overcharged California $6 billion for electricity during part of 2000 and early 2001. Generators said the high prices are due to an imbalance in supply and demand in the state and the high price of natural gas. The ISO has asked the Federal Energy Regulatory Commission to order generators to refund the money to the state's utilities. FERC agreed, but gave generators the benefit of the doubt and asked the companies to substantiate their electricity prices or refund the money. Lockyer, whose investigation has yet to uncover any wrongdoing, according to a spokeswoman in his office, is now seeking a whistleblower. "Anyone who provides information leading to the successful prosecution of a false claim action may be entitled to percentage share in the award," Lockyer said. "Since billions of dollars may be recovered, the award to an informant could potentially range from $50 million to the hundreds of millions of dollars." Davis has frequently referred to out-of-state generators as "greedy profiteers" and one Sacramento lawmaker has introduced legislation that would place a windfall profits tax on sales of electricity generators earn in the state's wholesale market. Lockyer said the state should not be left holding the bag for "greedy business decisions of generators, marketers and utilities" adding that he will seek criminal and civil penalties if his investigation finds that generators gouged the wholesale electricity market. "Justice requires that those who have reaped unconscionable profits at the expense of California pay back what they owe." -By Jason Leopold; Dow Jones Newswires; 310-666-9986; jason.leopold@dowjones.com 2001 Dow Jones & Company, Inc. All Rights Reserved. ----------------------------------------------------------- This article on the Excite Money and Investing Channel is produced by Quicken.com, the objective source for making the most of your money. Visit Excite Money and Investing at http://quicken.excite.com next time you need financial news, stock quotes, portfolio services, or information about taxes, mortgages, and insurance.
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