SAN FRANCISCO – (INT) - An Administrative Law Judge at the Federal Energy Regulatory Commission (FERC) has found that Shell Energy North America (US) L.P. defrauded California during the negotiations of a long-term power contract signed during the energy crisis of 2000-01.

The Initial Decision also found that the Shell contract, along with a contract the state signed with Iberdrola Renewables LLC in June 2001, burdened California consumers with more than $1.1 billion in excessive charges.

The Initial Decision, if affirmed, paves the way for refunds to California consumers.

Extensive evidence showed that Shell manipulated short-term market prices during the energy crisis, including audio tapes capturing Shell’s traders and supervisors likening their manipulation of the ISO market to taking “candy from a baby” and confirming they had no “ethical” problems with the rolling blackouts California suffered during the crisis.

The Initial Decision was applauded by the California Public Utilities Commission.

Story Date: April 17, 2016