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Rumford Paper to Pay $3M to Settle FERC Case
03/27/2013 12:54 PM ET  

The Bangor Daily News reports that the paper company has signed a consent agreement to settle federal allegations that it profited from manipulating New England's energy market.

Rumford Paper Co. has agreed to pay more than $3 million to settle federal allegations that it profited from manipulating New England's energy market.

The Bangor Daily News reports that the paper company, owned by NewPage Corp. signed a consent agreement Friday, agreeing to a $10 million fine and more than $3 million in payments to the Federal Energy Regulatory Commission.

NewPage declared bankruptcy in 2011, so FERC agreed to settle for just over $3 million, the paper reports.

At issue is a regional program administered by ISO-New England that compensated large industrial electricity users for reducing their energy consumption during peak demand hours.

FERC alleges that NewPage benefited from the program knowing it would never have to reduce consumption, the paper reports.

Lincoln Paper & Tissue is also facing similar allegations, along with Competitive Energy Services, or CES, an energy consulting firm based in Portland, and the firm's managing partner, Richard Silkman.

CES spokesman Dustin Brooks told the paper that the allegations are unfounded and that he expects the matter to end up in court.

 


 

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