Governor Rell: Federal Energy Regulators to Hear

State’s Complaint Regarding Undelivered Electricity

            Governor M. Jodi Rell today announced that the Federal Energy Regulatory Commission (FERC) has confirmed it will investigate the state’s complaint that two energy companies that received more than $50 million in ratepayer money to provide power never delivered the electricity.

“This is a significant step forward for electric customers in Connecticut who will finally get answers as to why the power they paid for was never delivered and where exactly did their hard-earned money go,” Governor Rell said. “I am tremendously pleased that FERC has agreed to investigate our complaint and our demand for ratepayer refunds. The failure to deliver electricity that has been bought and paid for is simply outrageous and comes at a time when families and businesses are doing all they can to make ends meet.”

The Governor directed the state Department of Public Utility Control to file a complaint with FERC in April alleging that electricity importers Brookfield Energy marketing Inc. and Constellations Energy Commodities Group, Inc. engaged in a market manipulation scheme in which they collected over $50 million in payments for agreeing to be available to delivery electricity while never intending to deliver the power.  The Connecticut Attorney General and Office of Consumer Counsel also joined the DPUC in the complaint.

The state’s complaint seeks:

·        A return of all payments made to generators;

·        An order to make customers whole for the injury cause;

·        Penalties to be levied for market manipulation;

·        Changes in the way ISO-New England (the regional power grid monitors the power market to ensure independence and consumer protection.

FERC officials notified the state Monday that the agency establishing a hearing procedure and consolidating proceedings allowing it to move forward with a formal inquiry.

“The DPUC is very encouraged by the actions of the FERC, particularly in that it declined the requests of ISO-New England and the electricity importers to dismiss the complaint,” DPUC Commissioner Kevin DelGobbo said. “Only by a complete and thorough analysis and investigation of the incidents in question will we be able to insure against future bad actors and more importantly get back every dime owed to Connecticut and New England ratepayers for the market manipulation that is before the FERC in this proceeding.”