The City of Burbank, CA, on Thursday told FERC that it is withdrawing complaints the city filed against Calpine Energy Services LP and El Paso Merchant Energy L.P. last summer challenging several long-term, forward bilateral contracts it had entered into with the power suppliers.

In August of last year, Burbank took aim at rates included in five long-term, forward bilateral contracts the city entered into with Calpine Energy Services, Duke Energy Trading and Marketing LLC and El Paso Merchant. These contracts were entered into between March and May 2001 and contemplated deliveries of power between January 2002 and December 2004. FERC’s chief administrative law judge last month agreed to extend settlement talks between Burbank and the power suppliers.

In separate notices filed at the Commission last week, Burbank said that it had reached agreements with Calpine Energy Services and El Paso Merchant Energy “as to the claims raised in the complaint.” Burbank said that it reached a resolution with El Paso Merchant Energy related to two contracts, and one contract with Calpine Energy Services.

Burbank said that the city and the two power suppliers “have agreed to resolve the issues raised in the complaint by compromise, rather than by litigation, and to avoid future claims, including any future issues relating to the effectiveness, enforceability, validity or justness and reasonableness” of the relevant contracts.

Burbank said that in connection with the resolution of these issues, the city and El Paso Merchant have agreed to terminate one of the contracts, with a negotiated termination payment.

The city did not make a similar filing at FERC on Thursday addressing its challenge to the Duke Energy Trading and Marketing contracts.

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