SAN DIEGO, Jan. 14, 2005 (PRIMEZONE) -- San Diego Gas & Electric (SDG&E) joined with other California Parties today in announcing that they have reached a settlement with merchant generator Mirant Corp. that will partially offset high energy prices during the California energy crisis of 2000-01.
"This settlement marks another milestone as we move beyond the energy crisis and plan for our customers' future energy needs," 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 overall settlement is valued at approximately $364 million, which includes $320 million of cash or cash equivalents plus an unsecured claim in Mirant's bankruptcy proceeding of $175 million, expected to be paid out at 25 cents on the dollar. SDG&E's share of the refund is currently estimated at $23.8 million. The refund will go into an account earmarked for customers.
The California Public Utilities Commission, FERC and the U.S. Bankruptcy Court 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.