PacifiCorp proposes Calif energy crisis refunds
LOS ANGELES, April 11 (Reuters) - PacifiCorp agreed on Wednesday to pay $28 million for refund claims made by three California utilities and four California state agencies as a result of the 2000-2001 energy crisis in the U.S. West, PacifiCorp said.
The utility PacifiCorp is a unit of Mid American Holdings Co., which is owned by Berkshire Hathaway Inc. (BRKa.N) (BRKb.N). PacifiCorp is based in Portland, Oregon, and most of its electricity customers are in Utah and Oregon.
The $28 million is to be paid to California's big three investor-owned utilities -- Pacific Gas & Electric Co., a subsidiary of PG&E Corp. (PCG.N); Southern California Edison, a unit of Edison International (EIX.N); and San Diego Gas & Electric Co., a unit of Sempra Energy (SRE.N) -- as well as four California public agencies.
The U.S. Federal Energy Regulatory Commission must approve the proposal.
In 2000 and 2001, California suffered rolling blackouts and wholesale power prices that more than tripled in part because of a market that was susceptible to manipulation by companies like Enron, which filed for bankruptcy in December 2001.
"The settlement allows us to respond to one of the last remnants from the California energy crisis and move forward with our business of serving customers," said PacifiCorp spokeswoman Jan Mitchell.
It makes sense to settle now rather than engage in what might have been a protracted legal battle, Mitchell said.
The proposed settlement is the 12th by companies with claims against them for power sales to California in 2000 and 2001.
From March 2003 to Monday's proposed settlement for claims against PacifiCorp, about $3.6 billion in refunds to the California utilities has been agreed, according to a tally by Southern California Edison.
The largest settlement so far was the first one reached in March 2003 against El Paso Corp. for $1.06 billion.
Southern California Edison reported its part of the proposed settlement was $7 million. The PacifiCorp spokeswoman did not immediately have the breakdown of payments to the other parties of the proposed settlement.
PacifiCorp serves about 1.7 million customers, with about 85 percent of them in Utah and Oregon with the rest, in descending order, in Wyoming, Washington, Idaho and California.
In 2000-2001, PacifiCorp was owned by Scottish Power Plc SPW.L.
