6 Energy Lawsuits Dismissed
A federal appeals court dismissed suits that California had filed against Dynegy Inc., Reliant Energy Inc. and Mirant Corp. for allegedly overcharging for power during the state’s energy crisis in 2000 and 2001.
The U.S. 9th Circuit Court of Appeals upheld lower court rulings that the state cases -- claiming that the companies double-billed California -- were preempted by federal laws governing power costs.
The state will have to ask the Federal Energy Regulatory Commission to review the issues, the court ruled.
FERC has approved about $3 billion in refunds for California, less than the $8.9 billion the state seeks. California has filed 67 lawsuits against energy generators and traders, claiming overcharges in 2000 and 2001, when Californians endured blackouts and sky-high energy prices.
“We conclude that California claims are preempted because they encroach upon the substantive provisions” of an area reserved to FERC, “both to enforce and to seek remedy,” the court said.
The ruling pertained to six cases California had filed against more than 10 power producers.
Tom Dresslar, a spokesman for Atty. Gen. Bill Lockyer, declined to comment immediately.
Shares of Houston-based Dynegy rose 3 cents to $4.27, and shares of Houston-based Reliant rose 6 cents to $10.91. Both trade on the New York Stock Exchange.
