pg & e sues to recover uncollected costs pg & e sues to recover $ 3 billion
exploring yet another legal avenue , pacific gas and electric co . wednesday
filed in san francisco ' s federal district court asking for a judicial ruling
that will mandate that it can recover all of the nearly $ 3 billion in
uncollected wholesale electricity costs that have been mounting since may
when price spikes in califonia ' s market left the state ' s major investor - owned
utilities vulnerable because their retail power rates are frozen at 1996
levels .
the utility argued that the wholesale power costs are federally approved ,
therefore , it filed in federal court . earlier in the fall , pg & e appealed to
the california supreme court , asking to overturn a california public
utilities commission decision this summer that limits its ability to recover
its wholesale costs , which it passes on to customers without adding a profit
charge .
" we ' re just keeping our legal options open , " said a san francsco - based
utility spokesperson , noting that the utility also is attempting to protect
its financial status , which was challenged tuesday when fitch placed it and
another california utility on a " rating negative watch . "
state and federal officials all acknowledge as part of a series of ongoing
investigations that california ' s current wholesale electricity market is
broken and noncompetitive in its current state , said roger peters , senior
vice president and general counsel for pacific gas and electric . " however ,
there has not yet been any concrete action by regulators to provide for
recovery of the costs we have incurred to purchase the power our customers
must have , either through refunds from power sellers who charged unfair
prices , or through retail rates . these costs are continuing to grow . "
noting both the unfairness and unpopularity of the skyrocketing wholesale
charges , pg & e ' s utility nevertheless said it has a legal right to recover the
charges from its almost four million customers , and it reiterated five steps
it has taken to " increase supply , moderate customer demand , repair the broken
wholesale market and provide stable , reasonable rates . "
pg & e sues to recover uncollected costs
pg & e sues to recover $ 3 billion
exploring yet another legal avenue , pacific gas and electric co . wednesday
filed in san francisco ' s federal district court asking for a judicial ruling
that will mandate that it can recover all of the nearly $ 3 billion in
uncollected wholesale electricity costs that have been mounting since may
when price spikes in califonia ' s market left the state ' s major investor - owned
utilities vulnerable because their retail power rates are frozen at 1996
levels .
the utility argued that the wholesale power costs are federally approved ,
therefore , it filed in federal court . earlier in the fall , pg & e appealed to
the california supreme court , asking to overturn a california public
utilities commission decision this summer that limits its ability to recover
its wholesale costs , which it passes on to customers without adding a profit
charge .
" we ' re just keeping our legal options open , " said a san francsco - based
utility spokesperson , noting that the utility also is attempting to protect
its financial status , which was challenged tuesday when fitch placed it and
another california utility on a " rating negative watch . "
state and federal officials all acknowledge as part of a series of ongoing
investigations that california ' s current wholesale electricity market is
broken and noncompetitive in its current state , said roger peters , senior
vice president and general counsel for pacific gas and electric . " however ,
there has not yet been any concrete action by regulators to provide for
recovery of the costs we have incurred to purchase the power our customers
must have , either through refunds from power sellers who charged unfair
prices , or through retail rates . these costs are continuing to grow . "
noting both the unfairness and unpopularity of the skyrocketing wholesale
charges , pg & e ' s utility nevertheless said it has a legal right to recover the
charges from its almost four million customers , and it reiterated five steps
it has taken to " increase supply , moderate customer demand , repair the broken
wholesale market and provide stable , reasonable rates . "