Mirant

[Joe Stocks]

DJ Mirant, FERC Reach $332,411 Deal In Mkt Manipulation Case

LOS ANGELES (Dow Jones)--Mirant Corp. (MIR) has reached a $332,411 settlement with staff of the Federal Energy Regulatory Commission over charges the company manipulated U.S. power markets during the Western energy crisis of 2000-2001, Mirant said in a statement Tuesday.

"The facts of our settlement support what we have said all along - that we don't believe we've done anything wrong," said Doug Miller, Mirant senior vice president and general counsel, in a statement. "We firmly believe that we have not violated any tariff provisions, rules or regulations."

The settlement relates to a June FERC order that required 43 energy firms to present evidence they didn't violate California's market rules for electricity trading during that state's energy crisis. Those firms unable to prove their innocence could lose their ability to trade at market prices and/or be made to disgorge profits.

FERC's board and a bankruptcy court must approve the Mirant settlement for it to become effective. Mirant filed for Chapter 11 bankruptcy protection on July 14.

Mirant agreed to settle to avoid further legal costs, Miller said.

"We have already incurred litigation costs that far exceed the amount of the settlement. We settled to avoid incurring additional litigation costs that would also have exceeded the settlement," Miller said.

About 10 other firms have settlements pending at FERC related to the June order, and FERC staff have filed motions to dismiss charges for 16 other firms.

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September 30, 2003 17:05 ET (21:05 GMT)