press release

January 16, 2001

SAN DIEGO AREA WATER DISTRICTS SUE POWER PRODUCERS

San Diego – Sweetwater Authority and two other San Diego County water districts have filed an action in San Diego Superior Court against thirteen power producers seeking injunctive relief and damages for unjust and unreasonable electric prices. Joining the Authority in the lawsuit are Padre Dam Municipal Water District and Valley Center Municipal Water District.

Sweetwater Authority is an unusually large user of power. It operates two water treatment plants, 11 wells and 64 water distribution pumps to serve a population of approximately 175,000 people in National City, Bonita and the western and central portions of Chula Vista in southern San Diego County. Unlike similar commercial users in other parts of the state, or residential and small commercial users in San Diego, Sweetwater Authority and its co-plaintiffs are not beneficiaries of a rate freeze. The water agencies are currently paying the full cost of electricity charged by the power producers.

Best Best & Krieger LLP has filed a complaint on behalf of the water agencies which alleges that power producers, including Enron, Sempra and Duke Energy, have engaged in unlawful, unfair and anti-competitive acts and practices including withholding power for the purpose of creating an artificial shortage of electricity which has resulted in unjust and unreasonable prices for power.

Sweetwater Authority contends that the unreasonable rates have cost the district in excess of $1,000,000 during the past several months.

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