Powerex Wins Dismissal of Suit

A state judge dismissed a lawsuit that California Atty. Gen. Bill Lockyer filed against Powerex Corp. over allegations that the company manipulated power prices starting in 1999 and through the state’s 2001 energy crisis.

Powerex said Superior Court Judge Loren McMaster in Sacramento ruled on Dec. 9 that the Federal Energy Regulatory Commission had jurisdiction over wholesale energy rates. The case is one of three that California has brought over allegations that Powerex inflated prices and created false shortages during the energy crisis.

In March, Powerex paid $1.3 million to settle FERC allegations that it manipulated California power prices.

Powerex spokeswoman Elisha Moreno said the dismissal of the state lawsuit would help the company in the two federal cases filed by Lockyer.

“There’s a series of appeals coming up� filed by California, she said, “and this strengthens our case in those appeals.�

Tom Dresslar, a spokesman for Lockyer, said California would appeal the ruling.

“Throughout the energy litigation, throughout the proceedings on our refund claim, California has encountered massive obstacles in the path of obtaining proper redress,� Dresslar said in an interview. “This ruling is just another example. We’re going to continue fighting.�

Vancouver, Canada-based Powerex is the electricity-trading unit of British Columbia Hydro & Power Authority. BC Hydro, owned by the provincial government, is the second-biggest power exporter to the U.S., behind Hydro-Quebec.