Company officials deny profiteering in California and say they're trying to lower electricity prices by building more power plants to boost supplies. But they declined to order refunds, citing no evidence of wrongdoing. On Friday, a federal report cleared some companies of allegations of market manipulation. But investigations by state officials and consumer advocates continue to mount. They face a daunting maze of complex trading in which flawed market rules, government inaction and a regional power shortage allowed companies to profit legally.
Companies have other reasons to distance themselves from the California crisis.
With California power going unpaid, their stock prices have begun to sag. It's clear that energy companies made a killing not just in California but nationally and overseas as they expanded into newly deregulated markets. Energy companies say corporate growth explains much of their earnings, as they bought more power plants and sold more electricity. Duke's Williams said. Co. It's hard to say how much profit came from California.