Judge Rules Sempra Contract Is Valid
San Diego Superior Court Judge Wayne L. Peterson upheld a $7-billion contract under which San Diego-based Sempra Energy supplies electricity to the state of California.
Peterson ruled Monday that the 10-year contract is valid and that the state Department of Water Resources must accept electricity under the contract even if it is purchased in electricity markets and resold to DWR. DWR had accused Sempra of fraud for failing to build a new power plant to generate the contract’s electricity. Peterson said the contract language does prohibit Sempra from buying power and reselling to DWR. A DWR spokesman said he had not seen the ruling and could not comment.
For the record:
12:00 a.m. May 23, 2003 For The Record
Los Angeles Times Friday May 23, 2003 Home Edition Main News Part A Page 2 National Desk 1 inches; 60 words Type of Material: Correction
Sempra ruling -- A San Diego County Superior Court judge ruled Monday that a $7-billion electricity contract between Sempra Energy and the state Department of Water Resources does not prohibit Sempra from buying power and reselling it to the DWR. An article in Wednesday’s Business section incorrectly stated that the judge said the contract language did prohibit such an arrangement.
The Federal Energy Regulatory Commission is considering a California demand that long-term power contracts signed at the height of the energy crisis in early 2001 be invalidated.
-- Nancy Rivera Brooks
