Sempra settles over power-manipulation charges

Tuesday, Sept. 2, 2003 | 11:10 a.m.

SUN STAFF AND WIRE REPORTS

SAN DIEGO -- Sempra Energy's San Diego Gas & Electric Co. utility settled allegations by U.S. regulators of manipulating California power prices, joining four other power sellers that settled earlier.

Sempra Energy agreed to pay $27,972, the Federal Energy Regulatory Commission said on its website. The company didn't admit wrongdoing.

Sempra owns the Eldorado power plant in Boulder City. Also, MGM MIRAGE and the Monte Carlo are currently seeking permission from the state Public Utilities Commission to leave the Nevada Power Co. system and buy electricity from Sempra.

The commission in June ordered Sempra and about 60 other companies to prove that their actions during the California energy crisis of 2000 and 2001 didn't violate anti-gaming rules.

The commission earlier reached settlements with American Electric Power Company, Scottish Power Plc, Enron Corp.'s Portland General Electric utility, and Puget Energy Inc. FERC has also recommended dropping nine other power sellers from the case.

"I don't think any of this is over a $20,000 settlement," said Craig Shere, a utilities analyst with Standard and Poors Equity Research Services. "I think it's all over setting the stage for the future and making it clear what the new paradigm is for the trading and marketing industry."