San Diego Area Water Districts Sue Power Producers

The electricity crisis in California is back in the courts. Three San Diego area water districts have filed an action in San Diego Superior Court against 13 power producers. Padre Dam Municipal Water District, the Sweetwater Authority and the Valley Center Municipal Water District are seeking injunctive relief and damages for “unjust and unreasonable” electricity prices.

The water districts are large users of power and unlike similar commercial users in other parts of the state, residential and small commercial users in San Diego, do not benefit from the rate freeze. The districts are currently paying the full cost of electricity charged by the power producers.

Best, Best & Krieger LLP filed a complaint on behalf of the districts, alleging that power producers Enron, Sempra, Duke Energy and others engaged in “unlawful, unfair and anti-competitive” acts and practices. Specifically, withholding power for the purpose of creating an artificial shortage of electricity, resulting in “unjust and unreasonable” prices for power.

Padre Dam Municipal Water District claims that the electricity rates have cost the district in excess of $500,000 during the past months, while the Sweetwater Authority and the Valley Center Municipal Water contend the high rates have cost them $1 million and $1.5 million respectively during the same period.