Posted on 07/06/2004 2:59:35 PM PDT by NormsRevenge
SAN FRANCISCO (AP) - A federal appeals court on Tuesday dismissed more than a dozen lawsuits that accused power companies of double-billing the state of California millions of dollars during the energy crisis. In tossing out Attorney General Bill Lockyer's lawsuits against Reliant Resources, Inc., Dynegy Inc. and other energy concerns, the 9th U.S. Circuit Court of Appeals ruled that California courts don't have jurisdiction over the issues at the heart of the complaint.
The suits alleged the generators reaped millions by being paid to hold power in emergency reserve that they then sold on the open market. Lockyer argued the companies were paid $49 million between 1998-2000 to reserve electricity that was not delivered when requested.
The alleged double-billing increased electricity prices by forcing California's grid operators to buy power from those companies on the expensive spot market instead of calling on their reserve capacity when supplies became tight during the 2000-2001 energy crisis, Lockyer charged. The companies deny the charges.
The San Francisco-based appeals court's Tuesday action upheld a lower court that dismissed the same suits last year, ruling that the state must state a claim before the Federal Energy Regulatory Commission instead of suing under a California business fraud statute.
The court said FERC has exclusive jurisdiction over wholesale electricity prices. California has already filed a request with the federal commission for nearly $9 billion in refunds for excessive power prices during the energy crisis in 2000 and 2001, but the state's lawyers don't anticipate recovering the whole amount.
They tried to sue for double billing under California's unfair business laws, believing they would fair better in state courts than before FERC.
California has alleged that it was the victim of widespread manipulation of both the price and supply of energy in a newly deregulated electricity market. As prices soared, the state faced energy shortages and rolling blackouts. The crisis cost the state billions of dollars and disrupted energy markets across the West.
FERC capped wholesale power prices and instituted other changes in June 2001 that brought a quick end to the crisis. But by then, the state's largest utility had filed bankruptcy and two others had billions in debts. The state of California also rang up billions in debts after it stepped in to help the utilities buy power for their customers.
California and FERC have already settled claims with several energy companies valued at about $2.4 billion.
The case is California v. Dynegy, 02-16619.
I would rather have Spitzer as AG than a dumbass like Lockyer.
Are pigs flying? Has Hell frozen over?
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