State Study Finds Energy Providers Overcharged $5.5 Bil

LOS ANGELES-In the most comprehensive and damning study of its kind yet, the state’s power czar has concluded that, on the whole, electricity suppliers manipulated prices to overcharge California’s commercial and residential customers nearly $5.5 billion in a 10-month period that ended in February.

The study was conducted by the California Independent System Operator, which oversees the state’s massive power grid. Anjali Sheffrin, Cal-ISO’s director of market analysis, says some of the money should be refunded to commercial and residential power users, and the rest should be returned to the state’s cash-strapped utilities.

According to the report, independent power generators, which sell power to utilities such as Southern California Edison and Pacific Gas & Electric for distribution, manipulated prices in two ways. First, the study says, the generators effectively withheld supplies by demanding excessive prices even though they could have made some money by selling more electricity.