FERC Rejects Appeal on Power Contracts

California and utilities in Nevada and Oregon, which had sought to void billions of dollars in power-supply contracts, failed to convince U.S. regulators to reconsider a ruling that forces buyers to honor the agreements.

The Federal Energy Regulatory Commission declined to review its June 25 decisions requiring the California Public Utilities Commission, PacifiCorp, Puget Energy Inc. and the Nevada Power unit of Sierra Pacific Resources to honor the power contracts.

The energy buyers said the decision forces them to honor contracts with suppliers such as Dynegy Inc., Mirant Corp. and other companies accused of manipulating power prices during the California energy crisis of 2000 and 2001.

California and some Western utilities have said they would sue in federal court to overturn the ruling.

From Bloomberg News