- Plaintiff
- California Edison Company
In this Energy industry government contracts litigation proceeding, plaintiff California Edison Company and other defendants alleged Arizona Electric Power Cooperative Inc of illegally charging high rates during the 2000-2001 California Energy Crisis and sought to recover the excessive rates charged.
In 1996, California deregulated its power markets and created the California Power Exchange Corporation (CalPX). CalPX auctions resulted in a single market clearing price that applied to all sellers and buyers. However, sellers learned that the energy markets could be manipulated by withholding power -- for example, by unnecessarily shutting down power plants to create an illusion of scarcity -- and then demanding extremely high prices.
From May 2000 to June 2001, the unjust and unreasonable rates were passed through to the public utilities, which were statutorily forced to buy power through CalPX. In April, 2007, the utilities sued various governmental entities for breach of contract and unjust enrichment to recover the amounts received by the governmental entities for wholesale power in excess of the lawful rates.
The case was dismissed on procedural grounds in 2008, but the dismissal was reversed in 2010.
The plaintiff was represented by attorneys Laurie Edelstein and Lawrence Riff. The defendant in this case, Arizona Electric Power Cooperative was represented by attorney Jon Stickman, Sean Neal and Robert Bruning.
Settled
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