SAN DIEGO, Aug. 15, 2005 (PRIMEZONE) -- San Diego Gas & Electric (SDG&E) joined with other California parties today in announcing that they have reached a settlement with merchant generator Reliant for overcharges during the energy crisis of 2000-2001.
"This is the third such settlement we've negotiated this year on behalf of our customers," said William L. Reed, senior vice president of regulatory and strategic planning at SDG&E. "We are pleased with this settlement and will continue to aggressively seek refunds due our customers."
Reed said SDG&E was first to file a complaint with the Federal Energy Regulatory Commission (FERC) in 2000, claiming that rates were unreasonable during the energy crisis.
Reliant's overall settlement with the California parties is valued at $525 million, which includes approximately $460 million in cash and receivables, and another $65 million from related issues previously settled with FERC. SDG&E's share of the refund is estimated to be $42.1 million. The refund will go into an account earmarked for customers.
The California Public Utilities Commission and FERC need to approve the settlement.
SDG&E earlier this year announced separate settlements with Enron and Mirant Corp., with a combined value to SDG&E customers of nearly $47.4 million.
To date, SDG&E and its customers have been awarded nearly $130 million from settlements relating to the overcharges that occurred during the energy crisis of 2000-2001.
SDG&E is a regulated public utility that provides safe and reliable energy service to 3.3 million consumers through 1.3 million electric meters and more than 800,000 natural gas meters in San Diego and southern Orange counties. The utility's area spans 4,100 square miles. Exceptional customer service is a priority of SDG&E as it seeks to enhance the region's quality of life. SDG&E is a regulated subsidiary of Sempra Energy (NYSE:SRE). Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company. To learn more, go to www.sdge.com.
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When the company uses words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "would," "should" or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, the California State Legislature, the California Department of Water Resources, the Federal Energy Regulatory Commission and other regulatory bodies in the United States and other countries; capital markets conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental, and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the outcome of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the company's reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov and on the company's Web site, www.sempra.com.