A spokesman
for the company that wants to build a huge power facility in South Fulton
County said this week that a recent settlement in California showed no
wrongdoing in the state's energy crisis.
Williams Companies
Inc. officials said the $8 million settlement paid earlier this year was
accepted after officials at the company determined that charges and countercharges
would not be constructive towards solving the state's energy crisis.
The company
has announced its intention of building a gas-fired power generating plant
on Peters Road between Ga. highways 138 and 92.
According to
Reuters, late last month, Williams agreed to pay $8 million to settle
accusations that it withheld electricity produced at two southern California
generating plants from the California Independent System Operator.
The Federal
Energy Regulatory Commission enforcement decision was part of the investigation
into the activities of California power generators, which have made huge
profits because of soaring wholesale electricity prices during the past
year.
FERC staff
recently raised "serious questions" about whether Williams unfairly
withheld power last year from April 25 through May 5.
Williams, a
wholesale seller of electric power in California, marketed power produced
The plants
were shut down for what the owners said were necessary repairs, forcing
the California ISO to buy power from other Williams units at about $750
per megawatt hour, instead of the contracted $63 per megawatt hour.
FERC said Williams
received about $10.85 million in extra revenue because of the unavailability
of the two power units.
Paula Hall-Collins,
a senior public relations representative at Williams, said the company
will not actually be paying the money, but rather deducting it from the
nearly $300 million it is owed in back energy costs.
Collins said
she could not discuss exact specifics of the case, but said that Williams
has put the matter in the past and is working with California officials
to help the energy crunch by implementing programs such as short term
price caps.
In the situation
that was investigated by FERC, Collins said AES had asked Williams to
find other sources of power to help match the demand.
"This
was strictly a supply and demand issue," she said.
Williams was
not involved in the production of the power, only the marketing, she added.
When the company went to find another power supply, it had to pay significantly
higher rates for it, she said.
"All the
facts would have come out in a public hearing process, but we were never
charged with any wrongdoing," she said.







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