RECENT CHANGES AND DEVELOPMENTS
"A closer reading of last week's order from federal energy regulators shows California will receive refunds for
overpriced electricity, but the amount could be slashed to just under $4 billion, less than half of what the state
requested. Gov. Gray Davis plans to appeal the Federal Energy Regulatory Commission decision, state officials said
Sunday afternoon. Refunds could help prevent the state from raising electric rates to cover its power buying costs,
which are now beyond $8 billion.... FERC's 40-page decision confirms that the commission will only order refunds
for power bought since October 2000, rather than May 2000. That means $2 billion less than the state, utilities
and others could hope to receive. State officials had hoped to receive up to $9 billion in refunds.... In addition,
FERC said it will not issue refunds for power the state Department of Water Resources bought directly
from power companies. Instead, it will recognize only purchases through the state's now-defunct power market or
from the manager of the state's power grid. All told, the most the state could expect to get back would be roughly
$3.9 billion." (Contra Costa Times 7-30-01). " In a filing late last week with state regulators, the Utility Consumers'
Action Network joined other consumer advocates in arguing that San Diego Gas & Electric Co. and parent company
Sempra Energy created a bogus debt by not reporting key profits and by withholding an assortment of overcharges
that should be rebated to consumers. SDG&E disagreed with the consumer groups' position. A company official
said the agreement between Sempra and Davis is balanced, and the alternative could be a lengthy court fight. The
matter is scheduled to go before the California Public Utilities Commission, perhaps as early as Thursday. "
(San Diego Union Tribune 7-30-01). "The Security and Exchange Commission has been investigating for more
than a month whether members of California Gov. Gray Davis' administration have purchased stock in
energy companies using information that wasn't available to the general public, two investigators with the
SEC told Dow Jones Newswires over the weekend. The SEC investigators said they have been looking into
several stock purchases made since January by Davis administration officials, as well as electricity traders
working for the state Department of Water Resources, the agency buying power on behalf of the state's
struggling utilities." (Dow Jones Newswire 7-30-01). |
