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News ReleaseMay 18, 2005 PNM: Company Did Not Game California Market
Albuquerque: PNM today reaffirmed that the company did not engage in any activity to inflate electricity prices during the California energy crisis in 2001. "During the past few years, we have cooperated fully with federal regulators in their investigations into the California energy crisis," said PNM chairman, president and CEO Jeff Sterba. "Allegations that PNM engaged in market manipulation practices were dismissed in one case by the Federal Energy Regulatory Commission. The FERC's staff has joined with PNM to recommend dismissal of a second case involving similar allegations. We consider our wholesale market business activities to be above reproach." Sterba denied allegations made against PNM by the California Attorney General in a lawsuit filed in California state court on Wednesday that PNM, Powerex and 100 other unnamed power sellers used manipulative practices to inflate California energy prices in 2001. Federal courts have consistently ruled that cities and states, such as California, alleging unlawful pricing for electricity must pursue these types of charges through the Federal Energy Regulatory Commission, not through state or federal courts. The state of California is already heavily involved in FERC proceedings regarding allegations of unlawful pricing during the California electricity crisis. In January 2004, the FERC dismissed PNM from its "gaming practices" investigation, saying there was no evidence that the company acted inappropriately during the California energy crisis. In addition, FERC staff filed a motion to dismiss PNM from another case, the "gaming partnerships" investigation. The FERC has yet to rule on the latest staff motion. Background
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