Refunds

Legislation that could give Texas electric customers substantialrefunds because of “unintended windfall” profits made through thecoming deregulation of the state’s utilities is making its waythrough the Texas House. Under the current law, large utilities maykeep earnings made through 2004 to offset the costs of investing innuclear power plants.

Joining in the feeding frenzy that has become California’selectricity rate debate, a San Diego-based utility consumer groupand four law firms last week filed (Nov. 29) in Superior Court inSan Diego a class action lawsuit against 13 major generators,marketers and energy trading companies, the veritable “who’s who”of the state’s electricity market.

The FERC majority has approved a settlement that not only givescustomers on Texas Gas Transmission lower rates and refunds, butalso clears the way for NorAm Gas Transmission, a non-shipper andpipeline competitor, to have an evidentiary hearing on a number ofrate-related issues contained in the agreement. Commissioner LindaBreathitt dissented in part, saying the ruling set a dangerousprecedent for other rate settlement cases.