September 14, 2005
ROSEMEAD, Calif., Sept. 14, 2005 – Southern California Edison (SCE) and other California parties seeking refunds of energy overcharges during the state’s 2000-2001 energy crisis today announced they have reached a settlement resolving claims against Public Service Company of Colorado (PS Colorado), an operating company of Xcel Energy Inc. of Minneapolis, Minnesota.
The settlement addresses specified claims made by SCE, Pacific Gas and Electric, San Diego Gas & Electric, the California Public Utilities Commission (CPUC), the California Electricity Oversight Board, the California Department of Water Resources Electric Power Fund, and the California attorney general. Federal Energy Regulatory Commission (FERC) staff is also a party to the settlement.
“We commend PS Colorado for recognizing the value of resolving all claims, regardless of their size, against independent power providers dating back to the energy crisis,” said SCE Chairman John Bryson. “We hope other providers who had relatively small trading volumes with California during the crisis will follow this example, clearing the way to rebuild California’s energy relationships.”
The settlement calls for PS Colorado to provide cash and other monetary consideration valued at approximately $7.3 million. The benefits of the settlement will be reflected in SCE’s rates as provided for in a previous CPUC order.
The settlement is subject to the approval of FERC and would resolve, among other things, PS Colorado’s portion of claims by the California parties in the current FERC refund case, any additional refund obligations it might have incurred at FERC for sales into California electricity markets during the summer of 2000, and certain potential civil claims.
Xcel Energy is a combined electricity and natural gas company, with operations in 10 Western and Midwestern states.
California Parties Settlements To Date:
Will Reach Customers
|El Paso*||March 20, 2003||$1,700,000,000||$263,000,000||Aug-04|
|Williams||Feb. 25, 2004||$417,000,000||$41,000,000||Apr-05|
|Dynegy||April 26, 2004||$281,500,000||$43,000,000||Apr-05|
|Duke||July 13, 2004||$200,000,000||$48,000,000||Apr-05|
|Mirant**||Jan. 14, 2005||$495,000,000||$101,000,000||Jan-06|
|Enron***||July 15, 2005||$1,522,000,000||$70,000,000||Jan-06|
|Reliant****||Aug. 15, 2005||$525,000,000||$130,000,000||Jan-06|
|PS Colorado||Aug. 26, 2005||$7,000,000||$2,358,000||Jan-06|
* The El Paso proceeds include SCE's presumed share of CDWR's refunds. Half of the refund was paid up front and half will be paid over 15 years.
** The actual value of the Mirant settlement may change depending upon the value of allowed claims in Mirant’s bankruptcy.
*** SCE portion estimated. The actual cash value of the Enron settlement in excess of $47.3 million will be affected by ultimate value of allowed claims in Enron’s bankruptcy. The estimated SCE portion above assumes an allowed claim value of 25 cents on the dollar. Total settlement amount includes a $600-million subordinated claim in favor of government entities.
**** SCE portion estimated.
# # #
An Edison International (NYSE:EIX) company, Southern California Edison is one of the nation’s largest electric utilities, serving a population of more than 13 million via 4.6 million customer accounts in a 50,000-square-mile service area within central, coastal and Southern California.