California cities to get refunds from power generators


High Voltage Maintenance Training Online

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$599
Coupon Price:
$499
Reserve Your Seat Today
California cities and investor-owned utilities should get refunds on electricity costs now that an appeals court has determined that power generators unfairly backdated increases from 2006 to 2007.

In 2005, a group of wholesale electricity generators filed a complaint with the Federal Energy Regulatory Commission arguing that they were undercompensated for some services. The FERC decided on February 23, 2007, that the new rates were reasonable and made them retroactively effective to June 1, 2006.

Six cities including Anaheim, Azusa, Banning, Colton, Pasadena and Riverside contested the decision allowing the new rates to be put into effect early, arguing that applying the increase retroactively was not permitted.

"Effectively they were seeking a rate increase," said Bonnie S. Blair, an attorney in Washington, D.C., who represented the municipalities before the U.S. Court of Appeals for the District of Columbia.

Blair said that her clients together will receive several hundred thousands of dollars. Other cities and utilities such as Southern California Edison and Pacific Gas and Electric should also get refunds, she said.

Individual cities and utilities will decide how and whether the refunds will be passed on to customers.

Barbara Connors, a FERC spokeswoman, had no comment.

During the 2001 electricity crisis, the FERC required wholesale electricity generators serving the state's markets to supply available electricity. The temporary measure was supposed to shore up the energy shortfall but the requirement stayed in place for several years.

Generators began arguing that they should be compensated for the costs of energy production. In 2005, a group of wholesale electricity generators through the Independent Energy Producers Association filed their complaint.

Related News

California Blackouts reveal lapses in power supply

California Electricity Reliability covers grid resilience amid heat waves, rolling blackouts, renewable energy integration, resource…
View more

Utilities see benefits in energy storage, even without mandates

Utility Battery Storage Rankings measure grid-connected capacity, not ownership, highlighting MW, MWh, and watts per…
View more

Solar Now ‘cheaper Than Grid Electricity’ In Every Chinese City, Study Finds

China Solar Grid Parity signals unsubsidized industrial and commercial PV, rooftop solar, and feed-in tariff…
View more

Ukraine's parliament backs amendments to electricity market law

Ukraine Electricity Market Price Caps empower the regulator, the National Commission, to set marginal prices…
View more

Amazon launches new clean energy projects in US, UK

Amazon Renewable Energy Projects advance net zero goals with a Scotland wind farm PPA and…
View more

Experts Advise Against Cutting Quebec's Energy Exports Amid U.S. Tariff War

Quebec Hydropower Export Retaliation examines using electricity exports to counter U.S. tariffs amid Canada-U.S. trade…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.