County to Sue Edison Over $10-Million Nonpayment
Los Angeles County is joining the growing number of small energy producers suing to get paid for electricity they are forced to sell to the state’s two biggest, nearly bankrupt utilities.
In recent weeks, small generators have sued to suspend contracts with Southern California Edison and Pacific Gas & Electric, which owe the producers about $1.5 billion for past electricity deliveries. The Los Angeles County Board of Supervisors authorized the latest lawsuit Tuesday afternoon, telling its lawyers to go to court to free up its 22-megawatt cogeneration station at the Pitchess Honor Rancho to sell power to other parties.
Assistant County Counsel John Krattli said the county is owed about $10 million for electricity that it has provided Edison since November. “What it means is less income is coming in to the county,” he said.
In a related matter, a creditors committee of renewable energy producers that has been weighing for weeks whether to force Edison into Bankruptcy Court voiced skepticism Wednesday that the deal Gov. Gray Davis struck with Edison to purchase the utility’s transmission lines will be approved by the Legislature.
The producers said they are concerned that there is not enough money in rates charged to utility customers to pay committee members that are among the nearly 700 producers of alternative and renewable power in California.
Edison is scheduled to resume paying producers on April 16.
“It is critical that Edison make its first scheduled payment . . . and that back payment is made soon,” said Jack Raudy, a committee spokesman. “Otherwise, an involuntary bankruptcy filing remains very possible.”
The payment deadline coincides with a hearing in a crucial court case between Edison and CalEnergy that is being aired in Imperial County. A judge previously freed the geothermal producer from its contract with Edison because of the utility’s failure to pay the company. The court is expected to rule on CalEnergy’s request for $99 million in back payments and could act on Edison’s request that CalEnergy be required to resume selling power to the utility.
A Sacramento County Superior Court judge has allowed Redding-based Sierra Pacific Industries to cease selling the electricity it generates to PG&E;, freeing the company to sell about 60 megawatts of power to marketing companies that resell the supplies on the spot market. CalEnergy has been doing the same with the 270 megawatts it previously sold to Edison. One megawatt is enough to power 750 homes during the summer.
