Thursday, April 12, 2007

Man Bites Dog.

In the latest fallout from the California Energy Crisis, PG&E, Edison International and Sempra have sued Los Angeles and 17 other cities for price gouging, alleging that the cities sold power on the spot market at inflated prices during the Energy Crisis.

The $100 million suit alleges breach of contract and unjust enrichment. The energy companies concede that the defendants did not engage in market manipulation but benefitted from the actions of those who did.

Power lawsuit hits California cities [Bloomberg]