Oct 20, 2006 6:35 pm US/Central
PUC: TXU Named In Price Manipulation Report
by Bennett Cunningham
DALLAS (CBS 11 News) ―
A recent state report suggested a large electric company may have manipulated the wholesale price of electricity in Texas last year. In the report, released by the Texas Public Utility Commission, the name of the company was disguised – represented by only a letter.
In the report, the company in question was called "Company C." At the time, the PUC refused to reveal the company's real name. Since then, CBS 11 News has been fighting with state officials to reveal the name of the company. Late Friday afternoon, the PUC revealed that "Company C" is TXU Wholesale.
The report indicates "Company C"--which we now know is TXU Wholesale--may have withheld electricity from the market, raising substantial competitive concerns.
The report goes on to state that "Company C" had 13,000 megawatts of available capacity. That suggested "Company C" could be TXU - arguably the only company in Texas that could make that much power available.
When the report was released, TXU spokesperson Chris Shien told CBS 11 News it was not clear if TXU is Company "C" because its own data doesn't match up with the report. In addition, Shien said, "we do not condone that kind of activity."
Today the PUC warns that the report alone does not support a conclusion that TXU engaged in the behavior named in the report or that it violated state regulations. The PUC says it intends to conduct a thorough and detailed investigation.
In a statement emailed to CBS 11 News, TXU spokeswoman Lisa Singleton said, "TXU stands firmly behind its record. We strongly condemn any improper withholding of electricity from markets, and firmly reject any implication that we have done so."
The market manipulation report looked at the market in 2005.
Manipulation of the market can result in higher electric costs to other retail electric companies, which then get passed on to customers.
(CBS 11 News)
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