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Tuesday, June 29, 2010

No wonder corporations break the law

A proposed anti-trust settlement between the U.S. Justice Department and a subsidiary of energy giant National Grid is under fire for allegedly being too lenient to the power company -- and critics say it's just another sign of a dysfunctional regulatory climate.

National Grid subsidiary Keyspan Energy has been accused of using Enron-style tactics to manipulate the New York State energy market between 2006 and 2008, a scheme which withdrew power capacity from the market, raising prices and increasing profits for the power distributor.

But now Congressman Dennis Kucinich has joined consumer groups and regulatory agencies to urge the Justice Department to reconsider the settlement that requires the company to pay $12 million penalty to the government while not refunding a single dime of the $100 million the market manipulation cost consumers.

More here. More here.

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