Judge dismisses class-action suits over power crisis

Tuesday, Sept. 2, 2003 | 11:10 a.m.

SUN STAFF AND WIRE REPORTS

SAN DIEGO -- A federal judge has dismissed seven class-action lawsuits that claimed Duke Energy and other defendants manipulated energy prices during California's power crisis.

Judge Robert Whaley ruled that the Federal Energy Regulatory Commission has exclusive authority over the issues raised in the lawsuit and that federal law bars any challenges to utility rates that a federal agency has reviewed and approved.

The seven lead plaintiffs in the class-action lawsuits were small businesses from around the state that claimed Duke artificially restricted the supply of electric power and used other similar means to jack up prices in 2000.

The lawsuits were filed during the height of the state's power crisis and were consolidated because of similar claims.

Nevada Power Co. of Las Vegas and Sierra Pacific Power Co. of Reno in 2002 filed a complaint with the Federal Energy Regulatory Commission against Duke and 11 other energy traders. The Nevada utilities were seeking to have high-priced power contract thrown out because of widespread market manipulation.

Nevada Power and Sierra later withdrew their complaints against Duke.

Duke Energy has delayed indefinitely construction of its 1,200-megawatt Moapa Energy Facility at the Apex Industrial Park north of Las Vegas. Duke Solar is planning a 50 megawatt solar power plant near Boulder City.

FERC is conducting an investigation into the actions of power companies that sold energy in California during the crisis.