Money should be refunded to taxpayers and utilities, the state grid operator says, citing evidence of market manipulation.
Suppliers deny the accusation.
Generators engaged in market manipulation and consistent patterns of bidding far above costs in the deregulated energy market, the California Independent System Operator found in a study of pricing data. The findings support the widespread belief that these suppliers reaped massive additional revenue by manipulating the market. Spokesmen for the companies denied the accusation. The study, prepared for a filing with federal regulators today, is central to Cal-ISO's efforts to seek reimbursement for what it considers excessive charges by electricity suppliers during the state's energy crisis. We think the entire amount deserves consideration for refunds.