US Liable For $200M Over Calif. Energy Crisis Contract Breach

Law360, New York (May 2, 2012, 4:16 PM EDT) -- The federal government has breached its contract with utilities and the state of California and is liable for an estimated $200 million in electricity overcharges from the state's 2000-2001 energy crisis, the U.S. Court of Federal Claims ruled Wednesday.

The court found the Bonneville Power Administration and the Western Area Power Administration, both U.S. agencies responsible for marketing hydroelectric power generated by some federal and nonfederal facilities, breached their contracts with California power utilities and citizens by not refunding the overcharges.

A 2001 Federal Energy Regulatory...
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