Sempra Energy Sues State Power Buyer to Keep Contract
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SAN DIEGO — Sempra Energy, owner of electric and gas utilities, sued California’s power-buying agency to keep it from canceling a $6.6-billion power-supply contract.
Sempra said it asked a San Diego Superior Court judge to rule that “contrary to the Department of Water Resources’ stated position, the company is meeting the terms of the agreement” and the agency is obligated to take delivery of and pay for wholesale power.
The DWR in April threatened to cancel the accord after learning the company planned to buy electricity from sources other than an Elk Hills plant in Bakersfield, which was specified in the contract.
The DWR has been buying power for PG&E; Corp., Edison International and Sempra since last year, after an energy crisis left utilities unable to pay for electricity. State regulators have been trying for months to renegotiate $43 billion in contracts that lock California into paying inflated prices.
The Department of Water Resources had no comment, said spokesman Oscar Hidalgo.
Sempra’s 550-megawatt Elk Hills plant won’t start producing power until next year. The state says the agreement calls for power to start flowing in April.
Sempra rose 10 cents to $25.47 on the New York Stock Exchange.
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