LADWP sued over price gouging

Apparently, the Los Angeles Department of Water and Power is the new "ENRON"--price gouging the independently-owned utilities during California's 2000-01 power crisis.

The state's two biggest utilities sued the Los Angeles Department of Water and Power and 18 other government entities Thursday seeking to collect hundreds of millions of dollars in alleged overcharges on electricity sold during the California energy crisis.

Southern California Edison Co. and Pacific Gas & Electric, joined by the California Electricity Oversight Board, filed the lawsuit in U.S. District Court in Sacramento — a new venue for a refund dispute that has simmered since the state's power market meltdown in 2000-01.

The lawsuit alleges that the government power providers violated contracts by selling electricity at rates that the Federal Energy Regulatory Commission deemed "unjust, unreasonable and unlawful."

Edison and PG&E are seeking an unspecified amount in refunds for the utilities and their customers. In a statement Thursday, Edison said the claims could amount to as much as $500 million, although it was unclear how much of that ratepayers would get if the utilities were to prevail in court.