BP's Market Manipulation Charges Resolved; AZ and CA United Way Receive $3 Million

On July 18, BP Energy, the power marketing arm of BP, settled a charge by the Federal Energy Regulatory Commission (FERC) that it manipulated California's electricity market in 2000-01. As a result of the settlement, BP Energy agreed to contribute a total of $3 million to the United Way to fund low-income home energy assistance programs in California and Arizona.

FERC investigators in March found that BP Energy Co. and Reliant Resources Inc. "engaged in coordinated efforts to manipulate energy prices" at the Palo Verde electricity trading hub in Arizona.

The agreement resolves all issues pertaining to BP Energy, FERC said. Charges that Reliant Energy Services traders engaged in the same price manipulation behavior as the BP Energy trader have not been addressed.

Page Last Updated: December 7, 2005