Bankrupt utility claims state won’t free its power plants from state regulation
Jan. 18, 2002 — The bankrupt utility Pacific Gas & Electric Co. on Thursday filed a $4.1 billion lawsuit against the state of California in an attempt to free its power plants from regulation.
The lawsuit, filed with the state Victim Compensation and Government Claims Board, accuses the state of taking back a promise to release its nuclear and hydroelectric plants from control by the Public Utilities Commission, the Sacramento Bee reported.
The plants have strategic significance to PG&E Co. because the utility is trying to transfer the plants to other companies owned by the holding company PG&E Corporation. This was the utility’s proposal to the state as part of its reorganization plan, but the California PUC has been granted extra time to come up with an alternate plan.
Pacific Gas & Electric Co. is a subsidiary of PG&E Corporation. To learn more about these companies, visit http://www.pge.com.
To read the complete story on the Sacramento Bee’s web site, visit http://www.sacbee.com/.