FERC pursues suit against mill, energy company
The Federal Energy Regulatory Commission is taking its multi-million dollar market manipulation charges against Portland-based Competitive Energy Services LLC, its owner Richard Silkman and Lincoln Paper and Tissue to court, filing petitions Monday asking a judge to enforce the agency’s fines.
The petitions, filed in U.S. District Court in Massachusetts, ask for judgments affirming FERC’s assessment of a $5 million civil penalty against the Lincoln mill, a $7.5 million civil penalty against the energy company and a $1.25 million judgment against Silkman, formerly head of the Maine State Planning Office.
In a statement provided to Mainebiz Monday, Competitive Energy Services said it continues to deny engaging in any instance of market manipulation and that it plans to introduce new information in court demonstrating its compliance with ISO New England’s Day-Ahead Load Response Program, which it characterized as flawed. Contacted by phone Tuesday morning, Lincoln Paper CEO Keith Van Scotter told Mainebiz he had no comment on the pending litigation. Van Scotter told the Bangor Daily News in March that the agency’s charges are misplaced and that he anticipated the cases would be settled in court.
The federal commission alleges that Silkman and his company advised Rumford Paper Co. to reduce its internal power generation and buy electricity over five days in order to set an “artificially high” baseline for its needs for power from the grid. FERC alleges Lincoln Paper manipulated the same program, allowing the companies to benefit when the region's electric grid operator called upon the paper mill to reduce its power consumption. Rumford Paper settled allegations with FERC for $3 million in March.
The petition comes more than 100 days after FERC officially issued its civil penalties against Silkman, Competitive Energy Services and Lincoln Paper. After 60 days without those penalties being paid or a settlement being reached, the Federal Power Act directs the agency to take action in district court, according to FERC spokeswoman Celeste Miller.
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