Washington State

Office of the Attorney General

Attorney General

Bob Ferguson


Washington to Receive $3.5 Million in Multi-State Settlement

SEATTLE – Attorney General Rob McKenna today announced that Washington will receive $3.5 million as part of a multi-state settlement with Reliant Energy Services. The settlement resolves claims that Reliant gouged ratepayers, withheld power and manipulated market prices during the 2000-2001 Energy Crisis.

“Reliant is one of five Texas energy companies that inflated electricity prices and swindled Washington consumers and businesses during the energy crisis,”
McKenna said. “Today’s settlement brings the state’s total recovery to more than $37 million from these companies.”
McKenna said the Attorney General’s Office is considering how to best use the settlement funds to the greatest benefit of those harmed by the energy crisis in Washington.

Under the settlement, Houston-based Reliant will pay a total of $460 million to the states of Washington, California, and Oregon. The agreement must be approved by the Federal Energy Regulatory Commission (FERC) before it becomes final.

The states’ settlement comes on top of earlier agreements reached between Reliant and FERC totaling nearly $65 million. All told, Reliant will pay nearly $525 million to resolve claims arising from its conduct during the Energy Crisis.

Reliant also faces certain criminal charges arising from its conduct. This settlement does not resolve those allegations, which were brought by the U.S. Attorney General and federal agencies.

The Washington State Attorney General’s Office previously settled with four other companies for their roles in the 2000-2001 energy crisis.

Washington has received more than $15 million from a settlement with El Paso Corporation.

Williams Companies, Inc. and the Williams Energy Marketing and Trading Company settled for $15 million.

Washington has received $3.25 million from a settlement with Duke Energy Company.

A settlement reached last month with Enron calls for that company to give Washington an allowed claim of $22 million in the bankruptcy proceeding. The amount that Enron will actually pay will be determined later by the judge in the Enron bankruptcy case.


For more information contact:

Kristin Alexander, Public Information Officer, (206) 464-6432, KristinA1@atg.wa.gov

Brady Johnson, Assistant Attorney General, (206) 389-2848