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$25-Million Settlement for SDG

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San Diego Gas & Electric has agreed to settle several longstanding legal claims against an Arizona power company for $25 million, SDG&E; said Thursday.

The settlement, which must be approved by the Federal Energy Regulatory Commission, would end a five-year fight with Century Power Corp., an independent power producer once was owned by Tucson Electric Power.

SDG&E; has been fighting a legal battle against Century and Tucson Electric since 1985, when SDG&E; complained that the two companies were overbilling SDG&E; for electric power imported over the Southwest Powerlink, a high-voltage transmission line that links SDG&E; to coal-fired utilities in the Southwest.

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Although SDG&E; had been seeking $53 million from Century, the utility accepted the $25-million settlement because Century might face financial problems in the future, according to Len Viejo, SDG&E;’s director of operations analysis and audits.

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