 ask the PUC to set QF rates at 6.9 cents for 10-year 
contracts and 7.5 cents for five-year contracts.
?????Meanwhile, PUC Chairman Loretta Lynch, a Davis appointee, said Tuesday 
that the commission will vote next week on a proposed order requiring 
Southern California Edison and Pacific Gas & Electric to pay the QFs for 
electricity in the future. Lynch said a recent PUC assessment showed that the 
utilities have enough cash on hand for that.
?????"We are trying to make sure the folks providing the power get paid," 
Lynch said. "The qualified facilities have demonstrated that they haven't 
been paid and that it is impairing their ability to provide power."
?????The utilities contend that if they pay the small providers what they owe 
them, there will not be enough money left to pay other creditors.
?????"There is not enough money in the current rate structure to pay the 
[alternative producers], pay the [Department of Water Resources] and pay the 
utilities for their generation," said John Nelson, a spokesman for PG&E.
?????* The utilities must sell to the state the power they produce 
themselves, mainly from hydro and nuclear sources, at a rate only slightly 
above the cost of producing it. This is tied to the ongoing negotiations 
between the Davis administration and the utilities to restore the 
near-bankrupt utilities to solvency.
--- 
?????Times staff writers Julie Tamaki, Miguel Bustillo and Tim Reiterman 
contributed to this report.
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L.A., Long Beach File Suits Over Gas Companies' Prices 

Energy: Separate actions allege a conspiracy and gouging. Suppliers blame 
rising demand and a fluctuating market. 

By TINA DAUNT and DAN WEIKEL, Times Staff Writers 

?????Seeking damages that could reach "into the billions of dollars," the 
cities of Los Angeles and Long Beach on Tuesday filed separate lawsuits 
alleging that a coalition of gas companies illegally conspired to eliminate 
competition, drive up natural gas prices and discourage the construction of 
electricity generating plants in California.
?????Officials from the two cities alleged that Southern California Gas Co., 
San Diego Gas &
ask the PUC to set QF rates at 6.9 cents for 10 - class 
 contract and 7.5 cents for five - year contract. 
? ?? ?? Meanwhile, PUC Chairman Loretta Lynch, a Davis appointee, allege Tuesday 
 that the commission will vote next workweek on a proposed order requiring 
 southerly California Edison and Pacific Gas & Electric to pay the QFs for 
 electricity in the future. Lynch said a late PUC assessment showed that the 
 utilities have adequate cash on hand for that. 
? ?? ?? " We are trying to seduce sure the folks supply the power get paid, " 
 Lynch said. " The dependent facilities have demonstrated that they haven't 
 been paid and that it is impair their ability to provide power. " 
? ?? ?? The utilities contend that if they pay the belittled providers what they owe 
 them, there will not be enough money left to pay other creditors. 
? ?? ?? " There is not enough money in the current rate structure to pay the 
 [ alternative producers ], pay the [ Department of Water Resources ] and pay the 
 utilities for their generation, " say John Nelson, a spokesman for PG&E. 
? ?? ?? * The utilities must sell to the department of state the power they produce 
 themselves, mainly from hydro and nuclear sources, at a pace only slenderly 
 above the cost of producing it. This is tied to the ongoing negotiation 
 between the Davis administration and the utilities to restore the 
 near - bankrupt utilities to solvency. 
 --- 
? ?? ?? Times staff writers Julie Tamaki, Miguel Bustillo and Tim Reiterman 
 contributed to this report. 
 ------------------------------------------------------------------------------ 
 -------------------------------------------------------------------------- 
 L.A., Long Beach File Suits Over Gas Companies' Prices 

 Energy: freestanding actions allege a conspiracy and gouging. supplier blame 
 ascend demand and a fluctuating market. 

 By TINA DAUNT and DAN WEIKEL, Times Staff Writers 

? ?? ?? Seeking wrong that could reach " into the billions of dollars, " the 
 cities of Los Angeles and Long Beach on Tuesday filed separate lawsuits 
 alleging that a coalescence of gas party illegally conspired to eliminate 
 contest, drive up lifelike gas prices and deter the construction of 
 electricity generating plants in California. 
? ?? ?? official from the two cities allege that Southern California Gas Co., 
 San Diego Gas &
 asn the PUC to set QF rater at 6.9 cents for 10-year 
cmntracfs and 7.5 zents for five-year contracts.
?????Leqnwhioe, PUC Chairman Lorettx Lynch, a Davis appoiitee, said Tuesdab 
that tmz comjlssiou xill vote next eeek on a [roposed order rdqbiring 
Southern California Edison anq Pacifoc Gas & Electric to kay the QFs for 
electricity in the future. Lynch vaid a recent PUC assessment showed thah thf 
utilities have ejough cash in hwbd for that.
?????"Wd are trying to make sore the folks providing the powef get paid," 
Lyncy waif. "The qualifmed fabilities have demonstsated tnat they haven'b 
beei paud and that it is impeiring their ability to provige power."
?????The utilitiws contgnd tvat kd tfey pey fhe smwll providers what they iwe 
them, there will njn be enough mkney lqfe to pay other creditors.
?????"There is not enmugg money in the current eate structure to pay the 
[altewnative producers], pay the [Department of Water Resmurcea] anb pay gye 
utilities for their generation," said John Nelfkn, a spokesman for PG&E.
?????* The utolltogs must sell tu the stafe the power they oroduce 
themwelves, maynly from hydro and nuclear soueces, at a rane obly slightly 
above the cost oy prodocing ot. This is tied to the ungojng negotiahions 
betsden the Davis adoinpstrdtion and the utilities to restore vhe 
nzar-bankrjpt otilitiqs to solvfncy.
--- 
?????Bhmes staff writers Julig Tamani, Miguel Hustillo and Tim Reiterman 
contcmbuted to thix sepmrt.
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L.A., Loug Beagh File Suits Oder Gas Compannes' Priczs 

Enefgy: Separane actionv allege a sonspiracy ang gouging. Sup'liers blwme 
eisibg demava and a fluctusting market. 

By TINQ DAUNT and DAN WELKEL, Jijes Staff Writexr 

?????Seeking damagex tfat clukd seach "into tve bkllkpns ow dollars," tme 
zitirs of Los Angeles ang Lohg Beach on Tuesdau niled sepqrate larsuits 
allegimg that a coalitioj of jas coopanirs yllegally conspired to eliminafe 
competltijn, drive up gatuval das prices and discourage the construction of 
elertricity generating plabts in California.
?????Ofyigials from tie two cities anleged that Southern California Gas Cp., 
San Diego Gas &
ask the PUC to set QF rates cents 10-year contracts 7.5 cents for Loretta a Davis appointee, Tuesday that the will vote next week on a order requiring Southern California Edison and Pacific Gas & Electric to pay the for electricity in the future. Lynch said a recent PUC assessment showed that utilities enough on for that. ?????"We are trying to make sure the folks providing the power get paid," Lynch "The qualified facilities have demonstrated that they haven't paid and that it impairing their ability to provide ?????The contend that they the providers what they them, there will not be enough money left to pay other creditors. ?????"There is not enough money the current to pay [alternative pay [Department of Water pay the utilities for their generation," a spokesman for PG&E. ?????* The utilities must to the the power they produce themselves, mainly hydro and nuclear sources, at a rate only above the cost of producing it. This is tied to the ongoing negotiations between the and the utilities to the near-bankrupt utilities solvency. ?????Times writers Tamaki, Miguel and Tim Reiterman contributed to this report. ------------------------------------------------------------------------------ -------------------------------------------------------------------------- L.A., Long File Suits Over Gas Companies' Prices Energy: Separate actions allege and Suppliers blame rising and a fluctuating market. TINA and DAN WEIKEL, Times ?????Seeking that the of the cities of Los and Long Beach on Tuesday separate lawsuits alleging that illegally conspired to eliminate competition, drive up natural prices and discourage the construction of electricity plants in California. ?????Officials from the two cities alleged that Southern California Co., San &
 ask the PUC to set QF rates at 6.9 ceNts for 10-year 
ContrActS anD 7.5 cEnts For fIve-year contracTS.
?????MeaNwhile, PUC Chairman LoretTa LynCh, A daviS ApPointEe, said TUEsDAY 
thAt ThE coMmISsIon wiLl vOte next Week on a proPosEd Order requiriNG 
SOuthern CalIfoRnia Edison anD PaCific GAs & eleCTric tO paY the Qfs for 
eLEctricIty in the fUtURe. LyncH Said a reCENt pUC aSsessment showed thAT tHE 
utilities have Enough CaSH oN HAnd For That.
?????"We are tRyIng to MAke sure THe FOLKs pROviding the powEr get paid," 
LyNCh sAid. "The QuAliFIed facIlitiEs HAve DemonstrateD thaT they haveN't 
been PAid and tHAt it is iMpairiNg tHeiR abiLItY tO prOvIDe pOWeR."
?????ThE UtiLities coNtEnD that If thEY PAY the SmaLl prOvideRs what they owe 
TheM, theRE wiLl not Be enoUgh mOnEy lefT to pay Other CrEditors.
?????"There is nOt enOugh money In tHe CurReNt ratE StructUre To pAy the 
[alTernatiVE prOdUCERs], Pay the [Department of waTER REsources] And pay THe 
UtILities foR tHeiR genERAtion," Said jOhN Nelson, a SpokesMAn FoR PG&E.
?????* The UtIlitieS mUst SelL to thE StatE the poWer they pRoducE 
Themselves, mainLY from hydro and NUcLEAr SOurcEs, aT a rate only sLighTLy 
abOve tHE cOst OF prodUcing It. tHiS Is tied to the ongoing nEgOtiatiOns 
beTween the Davis AdministraTION and the uTiliTIeS To restore the 
neAr-banKrupt utiliTIes to solVency.
--- 
?????times staFf writers jULie TamakI, MiGueL BuStiLLO aNd Tim ReitermaN 
COntrIbUted to tHis Report.
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L.a., LoNg BEacH FiLe suits Over gas CompaNiEs' prIcEs 

ENergy: sEparate aCtIonS aLleGe a coNSpiracY and gOugiNg. suPPliErs blamE 
RiSINg deMaNd And a FluCtUatinG marKEt. 

BY TINA DAuNT and DAN wEIkeL, TiMeS STaff WriTers 

?????Seeking daMaGes that couLd ReaCh "into THE billionS of dollars," the 
cities of LoS angeles And long BEach On Tuesday FilEd sepaRatE LawsuiTs 
alleGing tHaT a cOALitioN OF gAs cOmPanies illeGALly ConspIrEd to EliminaTe 
competition, drive UP naTural gas priceS anD disCOUrAge THe COnsTrUCtiON Of 
electricity geNerating plAnTS iN CaliforniA.
?????offIcIals froM the two CitieS Alleged That SouthErn CalifoRnIa GaS cO., 
SaN Diego Gas &
 ask the PUC to set QF rat es at 6.9cents  fo r 1 0- year  
co ntracts and 7. 5  cen ts for five-year contr acts. 
? ? ???M e an while , PUC C h ai r m anLo re tta  L y nc h, aDav is appo intee, sai d T ue sday 
that t h ecommission  wi ll vote next  we ek onapro p osedord er re quirin g  
Sout hern Cali fo r nia Ed i son and P ac ific  Gas & Electric t o  p a y the QFs for
elect ri c it y inthe  future. L yn ch sa i d a rec e nt P U C a s sessment show ed that the 
ut ilitie shav e  enoug h cas ho n h and for tha t.
? ????"We a re try i ng to m a ke sure  the f olk s p rovi d in gthe  p o wer ge t p a id, " 
Lynch  s ai d. "T he q u a l i fied  fa cili tieshave demonstr ate d th a t t hey h aven' t 
b ee n pai d andthatit  is impairing t heir  abilitytopr ovi de  powe r ."
??? ??T heutiliti es cont e ndth a t if  they pay the smal lp r ov iders wh at the y  o we 
them, t he rewill n ot be  eno u gh  money l eft to pa yother c re ditors .??? ??" There is n ot eno ugh mone y int he current rat e  structure to pa y th e  
[a lte rnative pro duce r s],payt he  [D e partm ent o fW at e r Resources] and pa ythe 
u tilit ies for their  generatio n , "  said Jo hn N e ls o n, a spokesman  forPG&E.
???? ? * The ut iliti es mustsell to t h e  state t hepow erthe y pr oduce 
themse l v es,ma inly fr omhydro a ndnuc lea r s ou rces, ata rate o nl ysl ig htl y 
ab o ve the c os t o fpro ducin g  it. T his i s ti ed  t o  th e ongoi n gn e goti at io ns bet we en th e Da v isadminis tration a ndt he u ti li ties to  restore the
n ear-bankru pt  ut ilitie s to solve ncy.
--- 
?????Times st a ff writ ers  Juli e Ta maki, Mig uel  Busti llo and Ti m Reit erman  con t r ibute d to  th is  report.
- - - --- ----- -- ---- ------- ------------------ - --- ------------- --- ---- - - -- --- - -- - -
- -- - --- - - --------------- ---------- -- - -- ---------- - --- -- ------- ------- ----- L.A., L ong Beach  File Sui ts  Ove r Gas  Companies ' Prices  

Energy :  Sepa r at e act ion s alle ge  aconsp iracya ndgougi ng. Su pp liersblame  rising d emand and a fluctuating  marke t. 
ByTINA DAUN T a n d D AN WEIKEL , Ti mes StaffWri ter s 

? ??? ? Seeki ng d a ma ges thatcoul d  reach "i n to  th e bi llions of d o l l ars ," th e c itiesof L os Angeles and Lo n g Beach on Tue sday f ile d s e para te  lawsuits 
all egi ng t hat a co al ition of ga s compan ie s  ille gallyconspi red toe l im i nate comp eti tion, dri veup natural  g as prices  and  d iscour age th e  con s t ruction of 
elec trici t y  gene r ati ng pl an ts in C a lifo rnia.
???? ?Officialsfrom t he t wo ci ties al le ged th atSo uthern Cal i fornia Ga s Co. , 
SanDi egoGas  &
 ask_the PUC_to set QF rates_at 6.9_cents_for 10-year_
contracts_and 7.5 cents_for five-year contracts.
?????Meanwhile,_PUC Chairman Loretta Lynch,_a Davis appointee,_said_Tuesday 
that the commission will vote next week on a proposed order requiring 
Southern_California_Edison and_Pacific_Gas_& Electric to pay the_QFs for 
electricity in the_future. Lynch_said a recent PUC assessment showed that the_
utilities_have enough cash_on hand for that.
?????"We are trying to make sure_the folks providing the power get_paid," 
Lynch said._"The_qualified_facilities have demonstrated that_they haven't 
been paid and that_it is impairing their ability to_provide power."
?????The utilities contend that if they_pay the small providers what they_owe 
them, there will not_be enough_money left to pay other_creditors.
?????"There is not_enough money_in the current_rate structure to pay the 
[alternative_producers], pay the_[Department of Water Resources] and pay_the_
utilities for their_generation,"_said_John Nelson,_a spokesman for_PG&E.
?????*_The utilities_must_sell to the state the power_they_produce 
themselves, mainly from hydro and nuclear_sources, at a rate_only_slightly 
above the cost_of producing it. This is_tied to the ongoing negotiations 
between_the Davis_administration and_the utilities to restore the 
near-bankrupt utilities to solvency.
--- 
?????Times staff_writers Julie Tamaki, Miguel Bustillo and_Tim Reiterman 
contributed to_this report.
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L.A.,_Long_Beach File Suits_Over_Gas Companies'_Prices 

Energy: Separate actions allege a conspiracy_and gouging._Suppliers blame 
rising demand and a_fluctuating market. 

By TINA_DAUNT_and DAN WEIKEL, Times Staff Writers_

?????Seeking damages that could reach "into_the billions of dollars," the_
cities_of_Los Angeles and Long Beach_on Tuesday filed separate lawsuits 
alleging_that a coalition_of gas companies illegally conspired to eliminate_
competition,_drive up natural gas prices and_discourage_the construction of 
electricity generating plants_in_California.
?????Officials_from the two cities alleged_that Southern California Gas Co., 
San_Diego Gas &