U.S. District Judge Nancy Atlas postponed the trial date of Michelle Valencia, a former Dynegy Inc. energy trader, to Sept. 29 until prosecutors decide whether to appeal the judge’s decision to dismiss three charges related to making false reports to an industry publication. Valencia’s wire fraud charges related to the bogus reporting were not dismissed. Atlas earlier this month postponed the trial date of Todd Geiger, an ex-El Paso Corp. trader, to Sept. 29 also. He too is accused of wire fraud in making false reports to an industry publication (see Daily GPI, Sept. 4). Atlas in August dismissed the false reporting charges against Valencia and Geiger, ruling they were too broad and unconstitutional. Atlas said the Commodities Exchange Act, upon which prosecutors made the charges, lacked a requirement that the person charged have shown intent, and not just made false statements, which are protected as free speech. Prosecutors have until the end of September to decide whether to appeal the rulings. Valencia and Geiger, who have pleaded not guilty, remain free on bond.
District
Articles from District
Prosecutors Weigh Whether to Appeal Bogus Price Reporting Ruling
U.S. District Judge Nancy Atlas set Sept. 29 as the new hearing date for former El Paso Corp. executive Todd Geiger, and said she hopes to set a new trial date for the ex-energy trader at that time. Prosecutors said they plan to use the intervening time to weigh whether to appeal two of the Houston judge’s recent rulings, in which she dismissed a false reporting charge against the ex-energy trader as well as three charges against a former Dynegy Inc. trader (see NGI, Sept. 2).
Judge Dismisses Another False Reporting Charge, This Time Against Ex-El Paso Trader
For the second time this week, a Houston district court judge has dismissed a criminal charge against a former energy trader accused of reporting false natural gas pricing information to an industry publication. Judge Nancy Atlas late Wednesday dismissed one count of false reporting against former El Paso Merchant Energy executive Todd Geiger, which mirrors the court’s dismissal of three false reporting counts against former Dynegy trader Michelle Valencia a day earlier (see Daily GPI, Aug. 28).
Prosecutors Weigh Whether to Appeal Bogus Price Reporting Ruling
U.S. District Judge Nancy Atlas in Houston Wednesday set Sept. 29 as the new hearing date for former El Paso Corp. executive Todd Geiger. Prosecutors will use the intervening time to weigh whether to appeal the judge’s recent ruling, in which she dismissed a false reporting charge against the ex-energy trader (see Daily GPI, Aug. 29).
Houston Judge to Rule on CFTC Subpoena of Platts Documents
A district judge was expected to rule shortly on whether McGraw-Hill Cos. subsidiary Platts would be required to turn over its natural gas trading data to the Commodities Futures Trading Commission (CFTC) following a hearing in Houston last Monday. The CFTC subpoenaed the data as part of an investigation into market manipulation during the western energy crisis.
Houston Judge to Rule on CFTC Subpoena of Platts Documents
A district judge was expected to rule as early as Monday night on whether McGraw-Hill Cos. subsidiary Platts would be required to turn over its natural gas trading data to the Commodities Futures Trading Commission (CFTC) following a hearing in Houston on Monday. The CFTC subpoenaed the data as part of an investigation into market manipulation during the western energy crisis.
Missouri Court Sends Aquila’s $270M Utility Purchase Back to PSC
The Missouri Court of Appeals for the Western District last week sent Aquila’s two-year-old purchase of St. Joseph Light & Power Co. back to the Missouri Public Service Commission. After an appeal by St. Joseph’s customer AG Processing, the court found that the PSC failed to decide whether the $92 million premium paid for the utility should be recovered from its customers as approved.
Missouri Appellate Court Sends Aquila’s $270M Utility Purchase Back to PSC
The Missouri Court of Appeals for the Western District in Kansas City has sent back to the Missouri Public Service Commission Aquila Inc.’s $270 million two-year-old purchase of St. Joseph Light & Power Co. After an appeal by St. Joseph’s customer AG Processing, the court found that the PSC failed to decide whether the $92 million premium paid for the utility should be recovered from its customers as approved.
Court Rejects Connecticut Bid to Delay New England SMD
The U.S. Court of Appeals for the District of Columbia Circuit last Thursday turned aside an emergency stay request filed by Connecticut Attorney General Richard Blumenthal that would have delayed the implementation of a standard market design (SMD) in New England, which is set to go into effect this month.
Industry Briefs
NewPower Holdings Inc. said Judge W. Homer Drake Jr. of the U.S. Bankruptcy Court for the Northern District of Georgia, Newnan Division, has confirmed its Chapter 11 plan as it applies to subsidiary The New Power Company, and the company expects the court to issue its order in the next several days. Ten days following the order, NewPower will begin paying the allowed pre-petition claims of its creditors. Creditors will receive distributions totaling $8.1 million, representing payment in full of allowed claims plus interest from June 11, 2002, the date the company and its subsidiaries filed voluntary petitions under Chapter 11. NewPower will transfer any cash remaining after such payment to TNPC Holdings, Inc. in satisfaction of all intercompany debt outstanding between them.
