For More Information Contact:
Lance Robertson, 984-4716
Eugene Water & Electric Board

July 18, 2006

Eugene utility files lawsuit against state of California

The Eugene Water & Electric Board has filed a lawsuit against the State of California over power sales made during the 2000-2001 West Coast energy crisis.

The lawsuit, which seeks a declaratory judgment, was filed on Monday (July 17) in Lane County Circuit Court. It asks the court to find that California has no right to seek damages from EWEB for electricity the state’s Department of Water Resources purchased from EWEB in 2001.

EWEB’s lawsuit is intended to put to rest unfair and baseless allegations by California that EWEB took advantage of the energy crisis during this time period. The Federal Energy Regulatory Commission has found that EWEB’s power sales to California were completely above board and legitimate and that refunds are not warranted.

“We have been unfairly targeted by California, and we want to put to rest nagging allegations that EWEB took advantage of California by selling it power during the energy crisis,” said Scott Spettel, power resources manager for EWEB.

During the energy crisis, EWEB did sell surplus power to California at certain times of the year but also had to purchase high-priced power to make up a shortfall caused by a severe drought in the Northwest that reduced hydroelectric power generation. As a result, EWEB had to raise its electric rates by more than 40 percent in 2001 and 2002, and EWEB had to borrow $30 million to pay for the high-priced power to serve its customers.

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