Judge Dismisses Power Lawsuit Against State

A federal judge has dismissed a lawsuit filed by Houston-based Duke Energy against Gov. Gray Davis over energy contracts that California seized earlier this year from Southern California Edison and Pacific Gas & Electric. U.S. District Judge Terry Hatter ruled that Davis has immunity under the 11th Amendment, which prevents residents of one state from suing the government of another state in federal court. Duke filed suit on Feb. 8, alleging that Davis illegally took control of long-term contracts requiring the company to deliver energy to California utilities. Duke claimed the governor exceeded his authority under the state’s Emergency Services Act because the contracts were regulated exclusively by the federal government. Duke agreed to suspend the suit until Monday’s court hearing after the DWR agreed to buy power from Duke that formerly was being provided under the contracts.