Wholesale Power Purchase Litigation

North Star Steel Company (NSS) owns and operates a large induction arc furnace steel mill located in Kingman, Arizona. During the 2000 – 2001 period, NSS purchased power for its Kingman mill from the Arizona Public Service Co., British Columbia Hydro Authority, Enron Power Marketing, Inc., California Independent System Operator, Nevada Power Co., PacifiCorp, Public Service Company of New Mexico, and the Tucson Electric Co. (collectively the “parties”). NSS filed a complaint at FERC claiming that the power purchased at wholesale from the parties was sold at prices far in excess of the then competitive market clearing prices. Members of ERG performed independent analysis of NSS’s wholesale power purchases in support of developing and sponsoring expert testimony before FERC in Docket No.EL06-68 concerning the amount of overcharges to NSS above the just and reasonable competitive market clearing price.

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