A federal hearing officer has ruled that two energy companies defrauded the state of California out of $1.1 billion on a series of long-term electricity contracts that state officials signed at the height of the energy crisis.
The ruling, an initial decision by an administrative law judge at the Federal Energy Regulatory Commission, or FERC, found that Shell Energy North America and Iberdrola Renewables LLC conned state officials during negotiations over long-term energy deals. The Shell contract represented an “excessive burden” on California ratepayers totalling $779 million, wrote administrative law judge Steven Glazer. The Iberdrola contract was $371 million more than it should have been, he wrote.
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In : Energy