Lincoln Paper to defend itself against FERC's allegations of power market manipulation

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Lincoln Paper to defend itself against FERC's allegations of power market manipulation

July 19, 2012 - 18:11
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LINCOLN, ME, July 19, 2012 (Press Release) -On July 17, 2012, the Federal Energy Regulatory Commission ("FERC") issued an Order to Show Cause and Notice of Proposed Penalty. The show-cause order alleges that Lincoln Paper and Tissue violated FERC's manipulation rules by fraudulently overstating its normal electricity usage to maximize payments in an electricity demand response program administered by ISO-NE(New England grid operator). These allegations are meritless and Lincoln intends to rigorously defend its actions. FERC also issued show-cause orders to two other Maine based entities in the alleging similar matters.

The show-cause order requires Lincoln to respond within thirty days with an explanation of why FERC should not impose the proposed fine. Lincoln has several options with which to exercise due process and will work with legal counsel to choose the best.

Lincoln Paper and Tissue is a small, privately held manufacturer of specialty paper and tissue rolls based in Lincoln, Maine. The company employs 400 and indirectly provides employment to nearly 2000 in the region. Lincoln was founded in 2004 and has succeeded in a very challenging environment through the hard work of an excellent group of employees and suppliers and with tremendous support from very loyal customers. Lincoln is widely recognized for holding to the highest standards of integrity in dealings with all stakeholders and is very troubled by these meritless accusations, and therefore intends to exercise all of its legal rights to defeat them. We are confident we will prevail in this matter and are also confident that this will not have any impact on our ongoing business.