9th Circuit to FERC: Try Again.

The 9th Circuit U.S. Court of Appeals ruled that FERC erred when it claimed it didn't have the authority to overturn longterm energy contracts signed by Gray Davis in 2001, even though it was clear the state was getting gouged. In its ruling, the Court has ordered FERC to take another look, and the decision leaves open the possibility that California could get as much as $1.4 billion in refunds.

In the Sacramento Bee, Gary Ackerman of the Western Power Trading Forum notes that $1.4 billion might be a little high, but that California could have a newfound friend in the Democratic Congress which could pressure the Bush-appointee-laden FERC to give California's claims a more balanced review.

State wins new look at power contracts [Sacramento Bee]