PG&E; Sues State Over Contracts
PG&E; Corp.’s Pacific Gas & Electric Co. utility sued California on Tuesday, saying it wants to be paid for the wholesale electricity contracts the state seized in January.
Gov. Gray Davis took away Pacific Gas’ 12-month forward contracts to ensure a sufficient and continuous supply of electricity for the state. At the time, California estimated the contracts were worth $150 million.
Pacific Gas claims the contracts had “significant value” because they allowed the utility to receive power for less than current market rates.
“Although PG&E; has demanded just compensation from the [state], PG&E; has received no compensation for the damage to its property,” the utility said in court papers filed Monday in San Francisco Superior Court.
The company, which filed for Chapter 11 protection in April, is seeking damages and attorney fees. The state claimed in January that the contracts would have delivered enough electricity to power 100,000 to 500,000 homes for 6 cents to 13 cents per kilowatt-hour.
Officials in the governor’s office did not immediately return calls seeking comment.
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