Washington, D.C., Oct. 24, 2008 — The Federal Energy Regulatory Commission (FERC) moved toward resolution of the issues surrounding the Western energy market crisis of 2000-2001 by approving a settlement of more than $14.2 million between the City of Vernon, Calif. and the California parties. The settlement, filed July 16, 2008, also resolves issues from continuing litigation regarding calculation of Vernon’s transmission revenue requirement (TRR).
The settlement resolves claims arising from events and transactions in Western electricity markets during the period from Jan. 1, 2000, through June 20, 2001, as they relate to Vernon. Under the settlement terms, funds flowing from Vernon include: Vernon’s California ISO (CAISO) and California Power Exchange receivables, estimated at more than $5 million as of June 30, 2008; and nearly $3.2 million estimated interest on receivables, to be updated through and including the projected distribution date. Vernon also will transfer to the California parties its entitlement to refunds on purchases made in the Western energy markets during the settlement period. Also transferred to the CAISO will be $5.5 million for distribution consistent with the CAISO’s commission-approved tariff, and in settlement of all issues pertaining to Vernon’s TRR (pending in dockets EL00-105 and ER00-2019). Other funds released by Vernon include a settling supplier’s interest shortfall of $540,000.
The California parties include: Pacific Gas and Electric Co.; Southern California Edison Co.; San Diego Gas & Electric Co.; California attorney general Edmund G. Brown, Jr.; and the California Public Utilities Commission. For purposes of this settlement, the California Parties also include the California Electricity Oversight Board and the California Department of Water Resources.
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