High court lets state seek energy refunds

California Attorney General Bill Lockyer.
Photo(s) by Luke Thomas

By Julia Cheever

June 19, 2007

California Treasurer Bill Lockyer said Monday the U.S. Supreme Court's action on an energy rate case means the state can seek an additional $1 billion to $2 billion in refunds for Californians for alleged overcharging during the state's 2000-01 energy crisis.

The high court refused to take up an appeal by several power companies of a 2004 decision by the 9th U.S. Circuit Court of Appeals in San Francisco.

The appeals court in that decision ordered the Federal Energy Regulatory Commission to consider granting the refunds to consumers for the companies' alleged manipulation of the electric power market between May and September 2000.

The ruling was made in a case in which Lockyer, then California attorney general, in 2002 appealed the commission's initial refusal to consider granting additional refunds.

Lockyer said, "The court's decision vindicates California consumers and businesses, who still await justice six years after they and their state were plundered by the energy pirates."

He said, "The federal regulator and power sellers now must act quickly to get ratepayers the rest of the money they're owed so we can, at long last, close the books on the energy crisis."

Lockyer spokesman Tom Dresslar said previous settlements with some power companies have provided consumers with $3.2 billion in relief.

State attorneys have said the form of any future refunds granted would be determined by the California Public Utilities Commission and would probably be provided through reductions in future rates.

Lockyer took office as state treasurer in January.

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