Washington — The government told six power generating companies on Friday to justify $55 million worth of wholesale electricity sales in California in February or pay refunds.
The action came a week after a similar order was issued to 13 generators who were told they may have overcharged buyers by $69 million during January.
California Gov. Gray Davis announced conservation rebates to California utility customers who cut power use 20 percent this summer. Now the federal government is asking power companies to justify their charges to power-hungry California or pay rebates to the state.
The directives from the Federal Energy Regulatory Commission are part of the agency's effort to address charges that power wholesalers have received windfall profits in the California market this winter by charging prices beyond what can be considered reasonable.
Separately, the commission announced a conference with energy officials from 11 Western states on April 6 in Boise, Idaho, to discuss the region's soaring electricity prices.
The power companies, which include some of the largest wholesale energy suppliers in the country, have until March 23 to defend their prices. If they do not have adequate explanations, FERC will order refunds or have the amounts applied to money owed them by California's utilities, officials said.
FERC, which regulates wholesale electricity sales, said it was seeking a refund whenever prices exceeded $430 per megawatt hour during February. It cited more than 11,000 transactions by the six companies that exceeded the threshold.
FERC has not yet reviewed the December sales.
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