Reliant Energy
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Reliant Energy, Inc. NYSE: RRI is an energy company based in Houston, Texas providing electricity to houses throughout Texas and particularly in the Greater Houston area and the Dallas/Fort Worth Metroplex.
Reliant also provides wholesale electricity to markets in Texas, California, Illinois, Ohio, New Jersey, Nevada, Florida, and Pennsylvania.
In 2002, the state of Texas deregulated Reliant's monopoly on electricity and Reliant now competes against other energy companies like TXU Energy, Direct Energy, Stream Energy, Gexa Energy and Cirro Energy.
Reliant has been under investigation for its alleged role in the California electricity crisis of 2000 and 2001. Reliant is suspected of gaming the market by decreasing energy production at its large plants, which caused the spot price for electricity to surge. Hourly contracts are based on the average spot market price for that hour, so by doing this, they increased their profits. After the price went up, they would ramp up production so that they would be at the appropriate level when the California Independent System Operator checked their output. Most power plants are not designed to operate like this, particularly the older ones that Reliant operates. Some plants take hours for large increases or decreases in production. As a result of this abuse, Reliant suffered a great number of breakdowns. However, even with the expensive repairs, they likely made substantial profits because of the high prices they were paid for electricity. In January of 2003, Reliant reached a settlement with the Federal Energy Regulatory Commission in which they paid back $13.8 million it earned in California by restricting the supply from its power plants. However, Reliant did not admit any wrongdoing in this settlement.
In March of 2004, Reliant announced that federal prosecutors are seeking a criminal indictment against subsidiary Reliant Energy Services and four of its employees for their alleged role in the California electricity crisis. [1] The indictments were filed on April 8, 2004. [2] In August of 2005, Reliant reached a $460 million settlement regarding its energy sales in the 2000 and 2001 California electricity crisis.
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[edit] Naming rights
Reliant Park has the naming rights to Reliant Park campus, home to the Reliant Astrodome, Reliant Stadium, Reliant Arena and Reliant Center.
[edit] Controversy
According to Citizens for Tax Justice, in 2003, Reliant got away with paying zero taxes (Coporate Income Taxes in the Bush Years).
[edit] See also
NRG is the second largest producer of fine particulate pollution and mercury pollution from its coal plants in the state of Texas after TXU according to the Texas Air Quality Board.
