Skip to main content
ad info

Greta@LAW  law center > news
trials and cases
open forum
law library
Editions | myCNN | Video | Audio | Headline News Brief | Feedback  

4:30pm ET, 4/16

CNN Websites
Networks image

find law dictionary

Latest Legal News

Law Library

FindLaw Consumer Center

California power company loses appeal to cap wholesale prices

LOS ANGELES, California (CNN) -- One of the two largest utilities in California lost an appeal in court Friday -- and then announced significant layoffs.

The U.S. Court of Appeals in Washington denied a petition by Southern California Edison to order the Federal Energy Regulatory Commission (FERC) to cap wholesale electricity prices, which have skyrocketed in recent months in California's deregulated energy market.

The commission had argued that California's electricity-buying practices were largely to blame and the request would not solve the crisis.

The three-judge panel said Southern California Edison "has not demonstrated that its right to this relief is clear and indisputable."


The utility officials issued a statement expressing disappointment at the court's opinion and urged the FERC to act on their petition for a rehearing.

Edison officials also announced Friday that the utility will lay off 1,450 workers as part of several efforts to save $465 million. Stephen Frank, Edison president and chief executive officer, said in a statement that maintaining basic service levels for the 11 million Californians served by Edison would be an "extremely challenging task" with the utility's remaining resources.

California's Public Utilities Commission voted Thursday to raise electric rates 7 per cent to 15 percent. Edison International and Pacific Gas and Electric had requested rate increases near 30 percent.

Shares of both utilities took hits Thursday after receiving downgraded credit ratings from key agencies.

California guaranteed power for another week
December 20, 2000
Energy secretary urges immediate action on West Coast power crisis
December 19, 2000
Federal commission could act today on Western power crunch
December 15, 2000
Cold weather, high prices sap California power
December 12, 2000
California briefly declares Stage Three power emergency
December 8, 2000
California power emergency in 4th day
December 7, 2000
Power Grinch could steal California's bright Christmas
December 6, 2000

US Securities and Exchange Commission
Pacific Gas and Electric Co.
Edison at Home
California Public Utilities Commission

Note: Pages will open in a new browser window
External sites are not endorsed by CNN Interactive.


Back to the top   © 2001 Cable News Network. All Rights Reserved.
Terms under which this service is provided to you.
Read our privacy guidelines.