ENERGYAllegheny Files Claim Over California ContractAllegheny Energy...

ENERGY

Allegheny Files Claim Over California Contract

Allegheny Energy Inc., a U.S. utility owner that defaulted on debt and energy trading contracts last year, said California owes the company as much as $10 billion for breaching an energy supply contract.

California officials conspired to break a $4.4-billion, 11-year contract to buy power from Allegheny because the company has refused to renegotiate the agreement after market prices fell, according to a filing with the California Board of Control, a mandatory precursor to a lawsuit against the state.

The state Department of Water Resources filed court documents in January seeking to void the contract. The state has sought to renegotiate dozens of long-term power contracts it signed with generators after wholesale prices increased.

From Bloomberg News