SAN DIEGO, July 13, 2004 (PRIMEZONE) -- San Diego Gas & Electric (SDG&E) joined with other California parties today in announcing that they have reached a settlement with Duke Energy Corp. and some of its affiliates that will provide refunds concerning Duke's energy charges during the California energy crisis of 2000-01.
The settlement resolves claims against Duke made by California's investor-owned electric utilities, the California Electricity Oversight Board, the California Department of Water Resources Electric Power Fund and the California attorney general. The attorneys general of Oregon and Washington also are participating in the settlement, as are a number of local California governments.
"We are pleased that we have been able to resolve this issue, dating back to the beginning of the California energy crisis," said William L. Reed, senior vice president of regulatory and strategic planning at SDG&E. Reed noted that SDG&E had made the initial filing at the Federal Energy Regulatory Commission (FERC) requesting relief from soaring energy prices in August 2000.
The settlement calls for Duke to assign to the settling parties about $140 million in receivables owed to Duke for transactions during the period of the energy crisis. Duke also will contribute approximately $60 million in cash for a total settlement of more than $200 million. The cash payment includes $2.5 million that Duke previously paid in an earlier settlement negotiated with the FERC.
SDG&E estimated that its customers' share of the settlement proceeds will be approximately $14 million. The California Public Utilities Commission (CPUC) will determine how the refund will be distributed to customers.
Both the CPUC and FERC need to approve the settlement.
SDG&E is a regulated public utility that provides safe and reliable energy service to three million consumers through 1.3 million electric meters and more than 800,000 natural gas meters in San Diego and southern Orange counties. Exceptional customer service is a priority of SDG&E as it seeks to enhance the region's quality of life. SDG&E is part of Sempra Energy Utilities, Sempra Energy's regulated California utilities. Sempra Energy (NYSE:SRE), based in San Diego, is a Fortune 500 energy services holding company.