Marking the latest in a series of similar settlements recently reached between power companies and FERC staff, Idaho Power Co. has agreed to pay $83,373 under a proposed agreement filed with FERC trial staff on Thursday. The deal is aimed at resolving allegations that Idaho Power attempted to manipulate the California energy market in 2000-2001.

In a June 25 order, FERC formally initiated show cause enforcement proceedings against an estimated 60 energy marketers, as well as municipal and investor-owned utilities, for allegedly gaming the California Independent System Operator (CAISO) and Power Exchange (PX) more than two years ago.

The show cause order determined that Idaho Power may have engaged in so-called “paper trading,” “false imports” and “circular scheduling.”

But in a proposed settlement filed last week, FERC staff said that it is satisfied that there is no basis upon which to proceed further with its probe into the false imports gaming practices as it relates to Idaho Power. Staff reached this conclusion based upon data submitted by CAISO on July 15.

FERC staff noted that the CAISO data does not include Idaho Power among those entities alleged by the ISO to have engaged in false imports. That data shows that the company didn’t sell out-of-market power into California at a price over the cap during the relevant period, May 2000 through Oct. 2, 2000.

FERC staff is also satisfied that there is no basis upon which to proceed further with its investigation into the paper trading gaming practice as it relates to Idaho Power. The only days listed by the ISO in its July 15 data as being associated with paper trading were later determined by the ISO to result from transmission/congestion conditions, the filing noted.

“With respect to circular scheduling, Idaho Power Co. has chosen not to bear the expense of pursuing this matter further, and will refund the full amount associated with the transactions in question,” the agreement stated.

Idaho Power and FERC staff said that the settlement, and any FERC order approving the agreement, should not be construed as an admission “or as evidence of wrongdoing or violation of any law or regulation, or any Commission rule…” on the part of Idaho Power.

Bankrupt Mirant Corp. recently agreed to pay $332,411 under a settlement agreement hammered out between staff at the agency and the power company aimed at settling gaming charges against the company.

FERC staff also recently filed settlement agreements with the Los Angeles Department of Water and Power (LADWP), Puget Sound Energy, PacifiCorp, Morgan Stanley Capital Group and Reliant Resources (see Power Market Today, Sept. 3).

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