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Enron Mail |
FYI.
Legal Group Plans Suit to Void California Power Contracts 2001-11-07 14:20 (New York) Legal Group Plans Suit to Void California Power Contracts Escondido, California, Nov. 7 (Bloomberg) -- A conservative legal foundation said it will file a lawsuit tomorrow to void long- term contracts California signed with power generators, claiming they put an unfair burden on taxpayers. The United States Justice Foundation intends to sue in Sacramento County Superior Court, said Richard D. Ackerman, lead counsel on the case for the group. The USJF wants a court to terminate the long-term power contracts and require money already paid to the generators to be returned to the state. The USJF proposes a class action to represent California taxpayers and alleges violations of the state's business and open- meeting laws. Ackerman said his group may need to forge new law to succeed in the case. ``You're gonna have some serious legal battles that may go to the appeals level in this case,'' Ackerman said. California officials last spring signed about $43 billion in long-term power contracts after two investor-owned utilities became insolvent. Governor Gray Davis has said the contracts were needed to bring stability to California's energy market. Since then, the cost of power has dropped, leaving California with contracts to buy electricity above spot-market prices. Enron Corp., Southern California Edison Company, Pacific Gas & Electric Company, Green Mountain Energy, San Diego Gas & Electric Company, Reliant Energy Company, PacifiCorp Power Marketing, Inc., Alliance Colton LLC, and Calpine Energy Company have electricity contracts with the state, according to a USJF press release. The USJF said it sent a letter to California officials giving them notice of its intent to sue. The group, which calls itself ``Your conservative voice in the courts'' on its Web site, is supported by individual donations, Ackerman said. --Michael B. Marois in Sacramento (916) 503-1612
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