Judge dismisses Nevada power case

WASHINGTON (Reuters) -- A Federal Energy Regulatory Commission administrative judge Thursday dismissed a complaint that long-term electricity supplies contract prices were manipulated by power sellers.

Carmen Cintron, a FERC administrative law judge, also said she would drop complaints filed by Sierra Pacific Resources Corp., Nevada Power Co. , Southern California Water Co. and the Snohomish utility in Washington state. The latter had asked the FERC to modify long-term supply contracts signed during the height of California's energy crisis in 2000-01.

"Complainants failed to prove that the California Independent System Operator and California Power Exchange spot markets adversely affected the long-term bilateral markets," Cintron wrote in a 117-page decision. "It is concluded that the contracts at issue in this case should not be modified."

The case involved long-term contracts with Enron Corp. , El Paso Corp. , American Electric Power Co. Inc. , Morgan Stanley's energy unit , BP Plc , Mirant Corp. and Allegheny Energy Inc.

Cintron's ruling will go to the FERC's three commissioners, who can decide to approve, reject or modify it.

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