(The following is a reformatted version of a press release
issued by Connecticut Attorney General George Jepsen and
obtained from http://www.ct.gov.)
Connecticut Electric Ratepayers to Receive $5 Million Benefit
through Federal Settlement with Constellation Energy
Connecticut electric ratepayers will benefit from $5 million
through a settlement between the Federal Energy Regulatory
Commission (FERC) and the Constellation Energy Commodities
Group, Inc., Attorney General George Jepsen, Consumer Counsel
Elin Swanson Katz and Public Utilities Regulatory Authority
(PURA) Chairman Arthur House announced today.
In March, FERC reached a settlement with Constellation Energy to
resolve an investigation into manipulation in energy markets,
including the New England region. The settlement included a $135
million fine paid to the federal government and a $110 million
forfeiture of unjust profits. As part of that forfeiture,
Constellation was to pay $20 million to the ISO-New England
(ISO-NE) area for the benefit of consumers.
Following discussions, the involved states - Connecticut,
Massachusetts, Maine, New Hampshire, Rhode Island and Vermont -
agreed on a disbursement plan based on each state’s proportional
monthly energy use from September 1, 2007, to December 31, 2008.
A request for disbursement was filed with FERC on November 16.
“Any manipulation in our energy markets negatively impacts
consumers,” Attorney General Jepsen said. “Our goal in this
matter was to provide some restitution to electric ratepayers in
a fair and reasonable manner and, working cooperatively, we were
able to achieve that goal. All Connecticut electric ratepayers
will rightly benefit from this settlement.”
“We appreciate that FERC’s enforcement division is aggressively
protecting the energy markets from manipulation,” Consumer
Counsel Katz said, “and we are pleased that we were able to work
cooperatively with our fellow state agencies and the other New
England states to reach a fair division of the settlement. This
settlement returns millions of dollars to Connecticut consumers,
and helps promote the integrity of our energy markets.”
“Constellation Energy illegally manipulated the Northeast’s
energy market, cheating ratepayers out of millions of dollars,”
said Chairman House. “The settlement with the company sends a
clear signal to energy providers that they will be held
accountable when they attempt to defraud their customers.”
Connecticut’s $5 million allocation - about 25 percent of the
total disbursement to the New England states - will benefit
ratepayers with Connecticut Light & Power, United Illuminating
and the Connecticut Municipal Electric Energy Cooperative. All
Connecticut electric ratepayers will receive credits on their
electric bills beginning in January 2013.
Assistant Attorneys General Seth Hollander and John Wright from
the Office of the Attorney General, Attorney Joseph Rosenthal
from the Office of Consumer Counsel and Attorney Robert
Luysterborghs from PURA assisted with this matter.
Office of the Attorney General:
Jaclyn M. Falkowski
firstname.lastname@example.org 860-808-5324 (office)
Office of Consumer Counsel:
Facebook: Attorney General George Jepsen
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