FERC Friday approved an $18 million uncontested settlement that resolves claims brought by California parties against BP Energy Co. arising from events and transactions in the western energy markets from Jan. 1, 2000 through June 20, 2001.

The California parties “state that the settlement resolves [their] claims against BP regarding the CERS bilaterals, and any other claims between BP and California parties relating to transactions in the western energy markets during the settlement period for damages, refunds, disgorgement of profits or other monetary or non-monetary remedies,” the settlement order [EL00-95] said.

CERS bilaterals are bilateral sales by BP Energy to the California Department of Water Resources’ Energy Resources Division (CERS) for a term of less than one month from Jan. 18, 2001 through and including June 20, 2001, the order noted. The CERS was the largest single power buyer in the West during the 2000-2001 energy crisis.

The California settlement parties include Pacific Gas and Electric Co., Southern California Edison Co., San Diego Gas & Electric Co., the people of the state of California, the state governor, attorney general, the California Electricity Oversight Board, the California Public Utilities Commission and the California Department of Water Resources.

The settlement calls for BP Energy to pay $18 million into an account to be designated by CERS. It also requires BP to cooperate with California parties in pursuit of claims or potential claims relating to the crisis in the western power and natural gas markets from Jan. 1, 2000 through and including Dec. 31, 2002, according to the Federal Energy Regulatory Commission (FERC) order.

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