Energy firms settles suit with state

Sacramento Bee ^ | January 15, 2005 | Dale Kasler

[WayneLusvardi]

Energy firm settles suit with state By Dale Kasler -- Bee Staff Writer Published 2:15 am PST Saturday, January 15, 2005 Get weekday updates of Sacramento Bee headlines and breaking news. Sign up here.

California officials obtained a $749.7 million energy-crisis refund from a bankrupt power company Friday in an offbeat deal that includes cash, an unfinished power plant and an IOU whose true value is unknown.

[WayneLusvardi]

Freepers - what are your comments? Did state steal ratepayers monies for crisis they created?

[Robert357]

The Mirant settlement means California has obtained refunds totaling $3.38 billion, Lockyer said in a statement.

Throw in additional refunds tentatively ordered by the Federal Energy Regulatory Commission, and the state has gotten roughly half the $9 billion it believes it was overcharged by Mirant and other energy suppliers, said Erik Saltmarsh, executive director of the California Electricity Oversight Board.

Very interesting that California has been able to get so much money. As I seem to remember it when the crisis first ended, California owed about as much as it was likely to collect, which was about one fourth to one half of what this article says has been collected.

I haven't heard if California has had to pay its share of money to others yet, although I think that was part of a FERC requirement.

[Robert357]

Actually thinking about it now, I thought that the FERC judge said the State was likely only to net maybe about $100 to $200 million at first.

I will have to see what is said in the trade journals next week.

bookmark for later

[Dog Gone]

Mirant wants to emerge from bankruptcy and settling these claims was essential before that can occur. Giving the unfinished power plant to PG&E is a good move. I doubt Mirant wants to build any new plants in California.

The state is headed to a new power crisis in the next few years. It may have been deferred to some degree by the incredibly wet weather that has filled the hydro reservoirs to nearly overflowing, but a drought will surely come again.

[jocko12]

Just watch the state waste the money instead of paying off the debt.

[Dog Gone]

It's not clear how much money the state will get. According to the article, the funds will be divided between the regulated utilities and the state.

But I'm sure the state will quickly spend its share on stupid stuff.

[Ernest_at_the_Beach]

The money will ultimately go to ratepayers of the state's three investor-owned utilities in the form of rate relief.

I want my money....

[snopercod]

...the State was likely only to net maybe about $100 to $200 million at first.

Is that after taxpayer-funded legal and bureaucratic expenses?

[tubebender]

I want my money....

The line forms behind me...