SAN FRANCISCO (AP) — Four top-level employees who worked at a Reliant Resources Inc. subsidiary pleaded innocent Friday to charges of conspiracy, wire fraud and commodities manipulation.
A federal grand jury on Thursday indicted Reliant Energy Services Inc. and the employees in an alleged scheme to illegally increase electricity costs during California's 2000-2001 energy crisis. They are accused of creating a "false and misleading appearance of an electricity supply shortage."
The subsidiary is responsible for buying fuel for and marketing power produced by Houston-based Reliant's electric generation facilities. It is the first company criminally charged with driving up prices during California's power crisis, which caused rolling blackouts, sent the state's utility companies heavily into debt and forced sharp increases in state electricity prices.
Reliant Energy Services, as well as the four officials, pleaded not guilty Friday in Magistrate Judge James Larson's courtroom.
The defendants include Jackie Thomas, 49, a former vice president of Reliant's power trading division; Reggie Howard, 37, a former director of the West power trading division; Lisa Flowers, 37, a term trader; and Kevin Frankeny, 42, manager of Western operations.
All four were released Friday on $250,000 bail each; their attorneys declined to comment. The defendants were expected to return to court May 6.