California cities to get refunds from power generators
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

US Electricity Prices Rise Most in 41 Years as Inflation Endures
WASHINGTON - Electricity bills for US consumers jumped the most since 1981, gaining 15.8% from the same period a year ago, according to the US Bureau of Labor Statistics.
Natural gas bills, which crept back up last month after dipping in July, surged 33% from the same month last year, labor data released Tuesday showed. Broader energy costs slipped for a second consecutive month because of lower gasoline and fuel oil prices. Even with that drop, total energy costs were still about 24% above August 2021 levels.
Electricity costs are relentlessly climbing because prices for the two biggest power-plant fuels -- natural…