The Federal Energy Regulatory Commission will hold a hearing on state claims that two energy companies received as much as $50 million from Connecticut ratepayers to provide power if needed at peak periods, with no intention of actually providing the electricity if asked.
The commission OK”™d a hearing at the request of state Attorney General Richard Blumenthal and state Consumer Counsel Mary Healey on their claims against Brookfield Energy Marketing Inc. and Constellation Energy Commodities Group Inc.
ISO New England, a Holyoke, Mass.-based organization that oversees the region”™s electricity markets, had stated in March as part of a separate proceeding that some energy providers had failed to deliver energy when requested. In May, ISO New England retracted those statements, saying the power was not actually needed, but Blumenthal and Healey pressed ahead with their complaint on grounds the companies never intended to deliver the power, and that by bidding to deliver power at allegedly abnormal prices they pushed up overall rates.
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“Power generators were paid on a promise to deliver ”“ but had no ability or intent to provide that power,” Blumenthal said, in a prepared statement. “Electric consumers deserve facts and accountability for this apparent scam that richly rewards generators for providing power that they have no intention of delivering.”
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The companies disputed the allegations.
“ISO-New England has retracted initial statements that power bid into the forward capacity markets was not delivered, finding that requests for power were never made,” said Lawrence McDonnell, as quoted by Bloomberg News.
Hartford-based Northeast Utilities and New Haven-based United Illuminating Co., the two dominant utilities in Fairfield County, had also filed for rights to intervene in the FERC hearing, as did power providers and regulators in New York, Massachusetts and Rhode Island.
