U.S. Report Finds Flaws in Study of California Power Companies An investigative arm of Congress faulted federal regulators today for claiming that there was no evidence to support accusations that power companies manipulated California's electricity market. The General Accounting Office reviewed a study by the Federal Energy Regulatory Commission issued in February. The energy agency found no evidence that companies withheld power to drive up prices. Politicians in California and some economists have been asserting for months that power companies withheld available electrical generating capacity to create or worsen shortages. Generating companies had cited the energy agency's report to rebut those accusations. The accounting office said the agency's work looked only at physical reasons for outages and did not explore the possibility that generating companies used bidding strategies to withhold supplies. Moreover, the office found that the study did not prove that cutoffs had occurred for unavoidable physical reasons. "FERC's study was not thorough enough to support its overall conclusion that audited companies were not physically withholding electricity supply to influence prices," the accounting office said. http://www.nytimes.com/2001/06/30/national/30POWE.html?pagewanted=all