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Court: Utilities don't owe refunds for overcharges
Wednesday, September 7, 2005 11:54 AM PDT
SACRAMENTO, Calif. (AP) - Government-run utilities that overcharged California during the state's energy crisis will not have to pay refunds the state estimates at nearly $1 billion, a federal appeals court ruled.
The ruling Tuesday was a blow to California, which is seeking up to $9 billion in refunds from utilities it accused of overcharging for power.
"This ruling does not mean that these entities did not rip us off," said Tom Dresslar, spokesman for Attorney General Bill Lockyer. "What it means is they can escape accountability for their actions."
The 9th U.S. Circuit Court of Appeals said the Federal Energy Regulatory Commission lacks authority over the government-run utilities California was targeting for reimbursement. Those include the Oregon-based Bonneville Power Administration, the Los Angeles Department of Water and Power and several others.
State and federal officials couldn't say how much the regulatory commission would have ordered in refunds from those utilities, but California's attorney general estimated it could have reached $1 billion.
The regulatory commission has said the amount owed to California in refunds is far less than the state is seeking, about $3 billion. But that amount will be lower now that the court has exempted government-run utilities. |