Bankrupt Paper Mill Settles 8-Year-Old U.S. Electricity Probe

Lincoln Paper and Tissue LLC, a paper mill in Maine that filed for bankruptcy last year, has agreed to a $5 million penalty to settle a case with U.S. regulators who accused it of collecting payments for power-demand cuts it didn’t make eight years ago.

As part of a settlement approved by the Federal Energy Regulatory Commission on June 1, the Lincoln, Maine-based paper and tissue maker agreed to the civil penalty and $379,016.03 in surrendered revenue, while neither admitting nor denying the agency’s allegations. According to the commission, the company artificially inflated its baseline demand so it could falsely ...