Tuesday, September 18, 2007

Recommended fine for TXU

The PUC (Public Utility Commission) staff has decided that the original fine of $210 million for allegedly manipulating the wholesale power market should be cut to $172 million. No matter which amount, it still represent the highest penalty that the commission has ever levied against a company.

TXU denies any wrongdoing,but the customer has to bear the brunt of this move (higher prices). It is believed that TXU abused its position by offering its energy into the market at prices well in excess of its marginal cost.


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