Burbank Sues Sempra Over Unpaid Bills

Sempra Energy was sued by the city of Burbank for failure to cover unpaid bills for energy the city sold during California’s power crisis in 2000 and 2001.

Sempra’s trading unit owes the city $6.3 million for electricity sales to the California Independent System Operator and for subsequent expenses to recover the money, Burbank said in a suit filed in federal court in Los Angeles. A Sempra spokeswoman had no immediate comment.

Burbank and Sempra Energy Trading agreed in 1999 that Sempra would market the city’s surplus energy resources and that Sempra would be responsible for any buyer’s failure to pay and for any costs to collect unpaid bills, the suit said.

The Independent System Operator, which runs the state’s power grid, couldn’t pay for some electricity it bought during the energy crisis.