SAN DIEGO, July 15, 2005 (PRIMEZONE) -- San Diego Gas & Electric (SDG&E) today announced that it has settled its case against Enron Corp. for energy-crisis overcharges. While the exact figure is still being negotiated, SDG&E expects to receive up to $20 million from Enron. The settlement is part of a broader agreement involving other major California utilities, and the states of California, Oregon, and Washington.
It likely will take several months before the agreement receives final approval from the Federal Energy Regulatory Commission (FERC), the California Public Utilities Commission (CPUC), and Enron's bankruptcy court. Because Enron is in bankruptcy, the settlement represents approximately 23 cents for each dollar sought.
"SDG&E was the first to file a complaint with the Federal Energy Regulatory Commission in 2000, claiming that rates were unreasonable during the energy crisis," said Lee Schavrien, vice president of regulatory affairs, for SDG&E. "We are very pleased with this settlement, and we will continue to advocate for more refunds on our customers behalf."
In a separate move, SDG&E has asked the California Public Utilities Commission (CPUC) to approve a refund of approximately $50 million to customers from settlements negotiated earlier this year.
"SDG&E continues to be aggressive in pursuing refunds for its customers," said Schavrien. "Our customers deserve this money, and we are pleased that our efforts have made this refund possible."
If approved by the CPUC, SDG&E is proposing to cut rates to customers starting in September 2005 and continuing through August 2006.
These earlier refunds came from settlements with Mirant, an independent energy provider, and El Paso Natural Gas. Refunds have also come from settlements with Duke Energy, Williams Energy, and Dynegy.
Electricity prices more than tripled during the energy crisis of 2000-2001, and San Diegans were the first to feel the brunt of increased electricity costs. Several investigations at the state and federal level have led to a series of refunds to California customers.
Thus far, SDG&E customers have received credits totaling $119 million from energy-crisis refunds.
SDG&E is a regulated public utility that provides safe and reliable energy service to 3.3 million consumers through 1.3 million electric meters and more than 800,000 natural gas meters in San Diego and southern Orange counties. The utility's area spans 4,100 square miles. Exceptional customer service is a priority of SDG&E as it seeks to enhance the region's quality of life. SDG&E is a regulated subsidiary of Sempra Energy (NYSE:SRE). Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company. To learn more, go to www.sdge.com.