PUC President Says Legal Action Possible As State Attempts to Renegotiate Power Contracts

(KFWB) 11.06.01, 1:12p --

The president of the state Public Utilities Commission says the state has a strong legal case against power suppliers as they work to renegotiate long-term power contracts. Loretta Lynch says it is in everyone's interests to avoid litigation and work toward an agreement, but legal action is an option.

"There is always a possibility for litigation. As a lawyer I would never say never to that," said Lynch.

Lynch says the PUC has provided a catalog of concerns and legal queries to the state as the Davis administration tries to renegotiate rates. She says power suppliers have been taking advantage of Californians.

-- PHO (owennos@bigfoot.com), November 06, 2001

Answers

PERSONAL NOTE:

Word received this morning from a worker at one of the Texas based companies (AES) that they are in somewhat of a bind financially, now that electric power rates have dropped so low. Supposedly, AES has or is attempting to divest itself of some of its plants in order to maintain cash flow.

-- PHO (owennos@bigfoot.com), November 06, 2001.

Once again, California bureaucrats and politicians are making a foolish mistake. Near the end of term of these contracts, today's seemingly high locked-in prices may look very low. Ditto if the War on Terrorism causes major MidEast upheaval and disruption of the flow of petroleum inports --- and this could happen much sooner.

-- Robert Riggs (rxr.999@worldnet.att.net), November 06, 2001.