Statement by Senator Feinstein on
Reliant Settlement with FERC
October 2, 2003

"Today, the Federal Energy Regulatory Commission (FERC) announced that Reliant Energy would pay $25 million in cash and up to $25 million worth of electric generation to the State of California. Given that FERC says that Reliant inflated energy prices by $1.6 billion during the Energy Crisis, this settlement is but a slap on the wrist and once again reveals FERC's weakness as a regulatory agency mandated to see that rates are 'just and reasonable.'

Reliant was one of the worst offenders during the crisis, entering into billions of dollars worth of wash trades and intentionally holding power off-line to inflate prices.

Earlier this year, I urged FERC to punish Reliant to the fullest extent of the law and remove the company's ability to sell power at market rates. FERC has unfortunately refused to do so."

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