CalEnergy has filed a new lawsuit against Southern California Edison to get what it is owed. The geothermal company says it is owed more than a $100 million in back payments by Edison.
The new lawsuit came a year nearly to the day that CalEnergy filed its first lawsuit against Edison. At that time the utility had stopped making payments to CalEnergy and other renewable energy providers as the state suffered through an energy crisis.
CalEnergy won the right in court to break its contract with Edison and sell power on the open market until Edison resumed payments. In June the companies reached an agreement that led CalEnergy to continue providing energy to Edison. Edison was to pay for power on a going-forward basis and pay a portion of the back payments. It would pay the rest of the back payments after the utility became credit worthy.
Edison is now credit worthy, yet we share in CalEnergy's concern as to whether Edison will live up to its agreement and pay what is owed. Edison declined to comment when contacted by this newspaper. Edison officials provided a written statement that CalEnergy's allegation that Edison is in breach of the contract is untrue. Edison also states that it plans to repay the money it owes to all its creditors by the first quarter of 2002.