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California Parties Settle Energy Crisis Refund Claims With Portland General

Posted on: Tuesday, 13 March 2007, 00:00 CDT

Southern California Edison (SCE) and other California parties seeking refunds of energy overcharges during the state's 2000-2001 energy crisis have reached a settlement resolving claims against Portland General Electric (PGE) of Portland, Ore.

The settlement addresses specified claims made by SCE, Pacific Gas and Electric, San Diego Gas & Electric, the California Public Utilities Commission (CPUC), the California Electricity Oversight Board, the California Department of Water Resources Electric Power Fund, and the California Attorney General.

"We thank representatives of the U.S. Court of Appeals for the Ninth Circuit and the Federal Energy Regulatory Commission for their assistance reaching this agreement, and we hope other suppliers that have not yet settled will elect to benefit from the same assistance," said Alan Fohrer, SCE chief executive officer.

Under the terms of the settlement, the total value of PGE's refunds will be more than $65 million when $59 million in new refunds and associated interest are added to an earlier $6.1 million payment by PGE. SCE's share is expected to be approximately $15 million. The settlement will benefit SCE customers through adjustments in rates as provided for in a CPUC order.

The settlement is subject to the approval of FERC and would resolve, among other things, PGE's portion of claims by the California parties in the current FERC refund case, any additional refund obligations PGE has for sales into California electricity markets during the summer of 2000, and certain potential civil claims.

Progress Recovering Energy Crisis Overcharges ---------------------------------------------------------------------- Power Date Total SCE SCE Customers Provider Announced Settlement Portion Begin Benefitting ---------------------------------------------------------------------- 1 El Paso(a) March 20, 2003 $1,057,000,000 $263,000,000 August-04 2 Williams Feb. 25, 2004 $417,000,000 $41,000,000 April-05 3 Dynegy April 26, 2004 $281,500,000 $43,000,000 April-05 4 Duke July 13, 2004 $200,000,000 $48,000,000 April-05 5 Mirant Jan. 14, 2005 $645,000,000 $101,000,000 Feb.-06 6 Enron(b) July 15, 2005 $360,000,000 $70,000,000 Feb.-06 7 Reliant Aug. 15, 2005 $525,000,000 $130,000,000 Feb.-06 8 PS Colorado Aug. 26, 2005 $7,000,000 $2,358,000 Feb.-06 9 IDACORP Feb. 16, 2006 $24,000,000 $6,000,000 Jan.-07 10 Eugene Water & Electric Board July 10, 2006 $430,000 $120,000 Jan.-08 11 Portland General Electric(c) March 12, 2007 $54,000,000 $15,000,000 Jan.-08 ---------------------------------------------------------------------- Totals $3,570,930,000 $719,478,000 ----------------------------------------------------------------------

The EWEB and Portland General settlements are pending approval by the Federal Energy Regulatory Commission.

(a) The El Paso proceeds include SCE's presumed share of CDWR's refunds. Half of the refund was paid up front and half will be paid over 15 years.

(b) SCE portion of Enron settlement estimated. The cash value shown in excess of a $47.5 million cash payment represents 35 cents on the dollar. Total settlement includes a $600-million subordinated claim in favor of government entities.

(c) SCE portion estimated.

An Edison International (NYSE:EIX) company, Southern California Edison is one of the nation's largest electric utilities, serving a population of more than 13 million via 4.7 million customer accounts in a 50,000-square-mile service area within central, coastal and Southern California.

Source: Business Wire

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