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Judge Rules Against Natural Gas Firm

Judge Rules Against Natural Gas Firm

A federal judge ruled recently that El Paso Natural Gas Co. withheld supply in the California market during the winter of 2000-01, causing the price of natural gas to sell two to three times higher here than anywhere else in the nation.

The California Public Utilities Commission filed a complaint with the Federal Energy Regulatory Commission against El Paso and its marketing affiliate on April 4, 2000.

“Finally, FERC is acknowledging what we knew more than a year ago , that the energy industry was ripping off Californians,” said Gov. Gray Davis in a press release. “But we are still waiting for FERC to order the companies to refund these ill-gotten gains. It is time for FERC to stop issuing ‘findings’ and start issuing refunds.”

The governor has asked FERC to refund $8.9 billion for overcharges during the state’s energy crisis. No decision is expected until November.

El Paso owns the largest natural gas interstate pipeline serving California.

Thirty-eight percent of the electricity generated in California comes from natural gas-fired power plants.

“California’s natural gas customers really suffered during the winter of 2000-2001,” said Harvey Morris, principal counsel for the PUC, “and we’ve waited 2 & #733; years for this ruling.

“But we won’t be satisfied until we get rate relief from FERC for California consumers, and we look forward to the remedy phase of this complaint.”

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