CalEnergy and Southern California Edison have failed to reach an agreement that would allow the geothermal company in the Imperial Valley to sell its power to other energy utilities in the state.
As a result, a court hearing has been set for March 22 to address that issue.
"Given that Edison has continued to collect millions from rate payers every day without paying anything out, and given that we are quickly running out of cash, we should at least be able to sell our power to other buyers in California who actually pay for the electricity," said Vince Signorotti, land manager for CalEnergy.
The geothermal company operates 10 plants in the Imperial Valley, eight of which are contracted to sell power to Edison.
CalEnergy has filed a $45 million lawsuit against Edison, stating the company has failed to make payments on the contract since November.
To date, Edison owes CalEnergy more than $75 million. The lawsuit seeks only the $45 million Edison owes for the months of November and December.