 exercised 
during all market conditions, and that $6.2 billion of the allegedly 
excessive power costs were billed when no Stage 3 emergency existed. 
According to studies by the ISO's economists, suppliers used "well-planned" 
strategies, including offering part of their capacity for sale at a much 
higher price than other sellers. The ISO studied transactions involving 21 
generating companies. It did not release the names of any of them. Leading 
suppliers in California include Dynegy Inc., Duke Energy Corp., Reliant 
Energy Inc., Williams Cos. and Enron Corp. 
"The prices were above a normally competitive market," said Anjali Sherrin, 
author of the ISO's analysis. 
The $6.8 billion includes $562 million in alleged overcharges during December 
and January. Of those, FERC has proposed refunding $69 million for January. 
The power generators accused of the overcharges have until the end of today 
to give tell FERC why they believe those charges were justified. 
The ISO wants federal regulators to step in and stabilize the wholesale 
electricity prices that have pushed Southern California Edison and Pacific 
Gas & Electric Co. to the brink of insolvency. 
Power companies that sell to the ISO and the utilities said they were 
confident an independent examination will find that they did nothing wrong. 
"We stand by our practices," said Richard Wheatley of Reliant Energy in 
Houston, which owns about 8 percent of California's in-state generating 
capacity. "We have operated legally and ethically at all times in 
California." 
FERC has been under fire from state and federal officials and lawmakers for 
not being aggressive in dealing with the electricity crisis. 
In recent weeks the agency has taken several actions, including proposing 
refunds for January and February. 
But those who have watched the agency over the years say the actions do not 
yet signal a change of course from its posture of preferring to let the 
markets work their will. "I think what they are trying to do is the minimal 
amount possible, to say they are on top of the situation," said Bill Marcus, 
an economist at JBS Energy in Sacramento, an energy and water-resources 
consulting firm. "They'll probably figure out a way
exercised 
 during all market conditions, and that $ 6.2 billion of the allegedly 
 excessive power price were placard when no Stage 3 emergency existed. 
 accord to studies by the ISO's economists, supplier used " well - planned " 
 strategies, include offering part of their capacitance for sale at a much 
 higher monetary value than other sellers. The ISO studied transactions involving 21 
 generating companies. It did not release the name calling of any of them. Leading 
 suppliers in California include Dynegy Inc., Duke Energy Corp., Reliant 
 Energy Inc., Williams Cos. and Enron Corp. 
 " The price were above a normally competitive market, " said Anjali Sherrin, 
 author of the ISO's analysis. 
 The $ 6.8 billion include $ 562 million in alleged overcharges during December 
 and January. Of those, FERC has proposed refunding $ 69 million for January. 
 The power generator accused of the overcharges have until the end of today 
 to give tell FERC why they believe those charges were justified. 
 The ISO wants federal regulators to step in and stabilize the wholesale 
 electricity prices that have pushed Southern California Edison and Pacific 
 Gas & Electric Co. to the verge of insolvency. 
 ability companies that betray to the ISO and the utility said they were 
 confident an independent interrogation will find that they did nothing wrong. 
 " We stand by our practice, " said Richard Wheatley of Reliant Energy in 
 Houston, which owns about 8 percent of California's in - state generating 
 capacitance. " We have operated legally and ethically at all times in 
 California. " 
 FERC has been under fire from state and union officials and lawgiver for 
 not being aggressive in dealing with the electricity crisis. 
 In recent weeks the agency has taken several action, including proposing 
 refunds for January and February. 
 But those who have watch the agency over the years say the actions do not 
 however signal a variety of course from its posture of preferring to let the 
 markets exploit their will. " I remember what they are trying to dress is the minimal 
 amount possible, to say they are on top of the situation, " say Bill Marcus, 
 an economist at JBS Energy in Sacramento, an energy and water - resources 
 consulting firm. " They'll probably figure out a way
 exfrcised 
during all markeu conditions, and jhqt $6.2 binlion kf the aulegedly 
excessive power cosvs wwre bulled when no Stage 3 eoergency vxisted. 
Axcorving to studies ug the ISO's eckkomiscs, suppliers usec "well-planted" 
strategies, ivcpuding offering part of their capacyty for swle at a much 
rightr [rics than other sellers. The ISO studisd tranvactions invokving 21 
generating companied. It did not release tje names of any if them. Leadkng 
supplitrv in Califkrnia include Dynegy Inc., Duke Evergy Corp., Reliqnr 
Ejgrgy Inc., Wiloiams Cos. and Enron Corp. 
"Dhe prives were above a iormqlly competitive markxt," said Anjali Sherryn, 
author oy the ISO's analysis. 
Tye $6.8 bilnion incuyder $562 jikljon in almeged overdharges durung December 
and Jamuwgu. Of those, FSRC haf [roposed refunding $69 million for January. 
Ths power generators accuwed of the overcharged have uneil the end of today 
to give tell FERC why they balievx ghowe zyagges were justified. 
The ISO wants federal regtmauorx to step in akd stabilize the wnopexwle 
electricijy pricza fhat have pushed Sluthern Calidornia Edyson and Pacific 
Gas & Electric Xo. to the brpnk if insolvency. 
Powex companies chat sgll to the ISO and the utilitnes sajd they werf 
confidehg an independent exsmhnation will find that ther did notiing crong. 
"We stamd by jur practifes," said Richard Wheatlej of Teliand Energy ij 
Houston, which owns about 8 perrxnt of Califotnid's pn-state gzneratlng 
capacity. "We have operated legallv and dthically zt all vimes in 
Calyfornia." 
FERC vws been undec fire frjm srate and feadral officials and lawmchers for 
not being aggvessixs in dealing wick uhw electricity vriris. 
Ij cecene weeks the acench hxx takdn several ccgionx, including proposinc 
rerunds for January snq Februaty. 
But thjse who have eatched the agency over thx yearx swy the actions do not 
yet signzl a chanhe jf course frjm ibs pjsture of 'referring to let the 
markets work their will. "I think whaj they are trying to bo is the minmmal 
aiount posvible, to say they arw on top of the sltuation," said Bill Mardus, 
an econlmist at JBS Energy in Sacramento, an energy and water-resources 
consulting firm. "Vhqy'll probabmy fogure obt c way
exercised during all market conditions, and that of allegedly excessive costs were billed existed. to studies by ISO's economists, suppliers "well-planned" strategies, including offering part of capacity for sale at a much higher price than other sellers. The ISO transactions involving 21 generating companies. It did not release the names of any them. suppliers California Dynegy Inc., Duke Energy Corp., Reliant Energy Inc., Williams Cos. and Enron Corp. "The prices were a normally competitive market," said Anjali Sherrin, author the ISO's analysis. The billion includes $562 million in overcharges December and Of FERC proposed refunding $69 for January. The power generators accused of the overcharges have until the end of today to give FERC why those charges justified. ISO federal regulators to and stabilize the wholesale electricity prices Southern California Edison and Pacific Gas & Electric to the of insolvency. Power companies that sell the ISO and the utilities said they were an independent examination will find that they did nothing wrong. "We stand by our practices," Wheatley of Reliant Energy Houston, which owns 8 of in-state capacity. "We operated legally and ethically at all times in California." FERC has under fire from state and federal officials and lawmakers for aggressive dealing with the crisis. In recent weeks agency taken several actions, including for and who watched agency over the years the actions do not yet a change of course to let the markets work their will. "I what they are trying to do is minimal amount possible, to say they are on top of the situation," Bill Marcus, at JBS Energy in Sacramento, an energy and consulting firm. "They'll probably out a way
 exercised 
during all market cOnditions, aNd thaT $6.2 biLliOn Of thE allEgedly 
excessivE PoweR costs were billed when no stage 3 EmERgenCY eXisteD. 
AccordINg TO StuDiEs By tHe isO'S econOmiSts, suppLiers used "wEll-PlAnned" 
strategIEs, Including oFfeRing part of thEir CapaciTy For SAle at A muCh 
higHer priCE than oTher selleRs. tHe ISO sTUdied trANSaCtioNs involving 21 
generaTInG Companies. It did Not relEaSE tHE NamEs oF any of them. leAding 
SUpplierS In cALIfoRNia include DynEgy Inc., Duke ENErgY Corp., RElIanT 
energy inc., WiLlIAms cos. and Enron corp. 
"the prices Were abOVe a normALly compEtitivE maRkeT," saiD anJaLi SHeRRin, 
AUtHor OF thE ISO's anaLySiS. 
The $6.8 bIlliON INCludEs $562 mIlliOn in aLleged overchaRgeS durINg DEcembEr 
and januArY. Of thOse, FERc has pRoPosed refunding $69 mIlliOn for JanuAry. 
thE poWeR geneRAtors aCcuSed Of the ovErchargES haVe UNTIl The end of today 
to givE tELL FeRC why thEy beliEVe ThOSe chargeS wEre JustIFIed. 
ThE ISO WAnTs federaL regulAToRs To step iN aNd stabIlIze The WholeSAle 
eLectriCity pricEs thaT Have pushed SoutHErn California eDiSON aND PacIfiC 
Gas & ElectriC Co. tO The bRink OF iNsoLVency. 
power CoMPaNIes that sell to the ISO AnD the utIlitiEs said they werE 
confident AN INdependeNt exAMiNAtion will find tHat thEy did nothiNG wrong. 
"We Stand By our praCtices," saiD rIchard WhEatLey Of REliANT ENergy in 
HoustoN, WHich OwNs about 8 PerCent of CAliForNia'S in-StAte generaTing 
capaCiTy. "we HaVe oPeratED legally AnD etHiCalLy at aLL times In 
CalIforNiA." 
FerC hAs been uNDeR FIre fRoM sTate And FeDeral OffiCIalS and lawMakers for 
Not BEing AgGrEssive iN dealing with tHe ElectricitY cRisIs. 
In reCENt weeks tHe agency has taken several ACtions, iNclUding PropOsing 
refuNds For JanUarY And FebRuary. 
BUt thoSe Who HAVe watCHEd The AgEncy over thE YEarS say tHe ActiOns do noT 
yet signal a change oF CouRse from its posTurE of pREFeRriNG tO Let ThE 
MarKETs work their will. "i think what ThEY aRe trying to DO is ThE minimaL 
amount PossiBLe, to say They are on Top of the sItUatiON," SaiD Bill MarcuS, 
an econoMist at JBS eNergy IN SAcramEntO, an eneRgY anD wateR-resouRCes 
ConsuLting fIrM. "They'lL probAbLy figure Out a way
 exercised 
during all mar ket condit ions,  an d t ha t $6 .2 b illion of thea lleg edly 
excessive powercosts  w e re b i ll ed wh en no S t ag e 3 e me rg enc ye xi sted.  
A ccordin g to studi esby  the ISO's e c on omists, su ppl iers used "w ell -plann ed " s trate gie s, in cludin g  offer ing partof theirc apacity f or  sal e at a much 
high e rp rice than othe r sell er s .T h e I SOstudied tr an sacti o ns invo l vi n g 21generating co mpanies. It did  not r el eas e  the n amesof any  of them. L eadi ng 
suppl iers i n  Califo r nia inc lude D yne gyInc. ,  D uk e E ne r gyC or p., Rel iant 
En er gy  Inc. , Wi l l i a ms C os.  and  Enro n Corp. 
"The  pr ices wer e abo ve anorm al ly co mpetit ive m ar ket," said Anja li S herrin, aut ho r o fthe I S O's an aly sis . 
The$6.8 bi l lio ni n c lu des $562 million i na l le ged over charge s  d ur i ng Decem be r andJ a nuary . Of th ose, FER C hasp ro po sed ref un ding $ 69  mi lli on fo r  Jan uary.
The pow er ge n erators accuse d  of the overc h ar g e sh aveunt il the endof t o day
tog iv e t e ll FE RC wh yt he y  believe those char ge s were  just ified. 
The I SO wants f e d e ral regu lato r st o step in andstabi lize the w h olesale
elec tricityprices th a t  have pu she d S out her n Ca lifornia Edis o n  and  P acific
Ga s & Ele ctr icCo.  to  t he brinkof insol ve nc y.  Pow er co m panies t ha t s el l t o the ISO an d the  uti li ti e s s aid the y  w e r e 
c on fi dent  an  i ndepe nden t  ex aminati on will f ind that  t he y did n othing wrong.  "We standby  ou r prac t i ces," sa id Richard Wheatley ofR eliantEne rgy i n 
H ouston, w hic h owns  ab o ut 8 p ercent  of C al ifo r n ia'si n -s tat egenerating cap acity ."Wehave op erated legally and eth ically at all  ti mesi n  Cal i fo r nia ." 
FE R C  has been under  fire from  s t at e and fede r alof ficials  and la wmake r s for not being  aggressi ve  ind e ali ng with th e electr icity cri s is. I nrecen t w eeks t he  ag encyhas ta k ensever al act io ns, in cludi ng  proposi ng 
refunds for January  and F ebrua ry.  
But tho sew hohave watc hedthe agency  ov erthe y ear s  saythea ct ion s  do n ot y et signal acha n g eof course f r o m  it s pos tur e  of pr efer ring to let the m arkets work th eirw i ll.  "I thin kwhat they aretry in g to do is  t he minimal
amountpo s sible , to s ay the y are o n to p  of th e si tua tion," sa idBi l l Marcu s,  a n econ omis tat JBS  Energ y  inS a cramento, an ene rgy a n d  wate r -re sourc es  
consu l ting  firm. "Th ey'll proba bly fi gure  outa way
 exercised_
during all_market conditions, and that_$6.2 billion_of_the allegedly_
excessive_power costs were_billed when no_Stage 3 emergency existed._
According to studies_by_the ISO's economists, suppliers used "well-planned" 
strategies, including offering part of their capacity for_sale_at a_much_
higher_price than other sellers. The_ISO studied transactions involving 21_
generating companies._It did not release the names of any_of_them. Leading 
suppliers_in California include Dynegy Inc., Duke Energy Corp., Reliant_
Energy Inc., Williams Cos. and Enron_Corp. 
"The prices_were_above_a normally competitive market,"_said Anjali Sherrin, 
author of the_ISO's analysis. 
The $6.8 billion includes_$562 million in alleged overcharges during December_
and January. Of those, FERC has_proposed refunding $69 million for_January. 
The_power generators accused of the_overcharges have until_the end_of today 
to_give tell FERC why they believe_those charges were_justified. 
The ISO wants federal regulators_to_step in and_stabilize_the_wholesale 
electricity_prices that have_pushed_Southern California_Edison_and Pacific 
Gas & Electric Co._to_the brink of insolvency. 
Power companies that_sell to the ISO_and_the utilities said they_were 
confident an independent examination_will find that they did nothing_wrong. 
"We_stand by_our practices," said Richard Wheatley of Reliant Energy in 
Houston, which_owns about 8 percent of California's_in-state generating 
capacity. "We_have operated_legally_and ethically at_all_times in_
California." 
FERC has been under fire from_state and_federal officials and lawmakers for 
not_being aggressive in dealing_with_the electricity crisis. 
In recent weeks_the agency has taken several actions,_including proposing 
refunds for January_and_February._
But those who have watched_the agency over the years say_the actions do_not 
yet signal a change of course_from_its posture of preferring to let_the_
markets work their will. "I think_what_they_are trying to do is_the minimal 
amount possible, to say_they are on top of the situation," said Bill_Marcus, 
an economist_at JBS Energy in Sacramento,_an_energy_and water-resources 
consulting firm. "They'll probably figure out a way