June 12, 2007
June 12, 2007
Statement by Los Angeles Department of Water & Power Regarding Preliminary Decision in Barakat vs. Los Angeles Department of Water & Power
Los Angeles Department of Water & Power General Manager Ron Deaton released the following statement today in response to a preliminary ruling by Judge John P. Wade of the Superior Court of San Bernardino in the matter of Barakat vs. Los Angeles Department of Water & Power.
“The LADWP strongly disagrees with the preliminary decision reached by the trial court in this matter. The State of California, LA County, LAUSD, MTA and all other plaintiff’s in this matter have benefited from electricity rates that are far below those charged to other government entities by investor-owned utilities across the State. We believe these extremely favorable rates were fair and appropriate and in full compliance with the law.
CA Government Code section 54999, which the case was premised upon, was in effect for 20 years and has never been applied in this manner. In fact, no public utility in the state has applied Section 54999 in the manner plaintiffs raised in their claim.
Given the novel claims asserted by plaintiffs in this case, the complex and technical nature of the issues raised, and the fact that no appellate cases have discussed the proper application of the statute in question, all of the parties knew from the outset that the issues in dispute would ultimately be decided by a higher court.
If this tentative decision is not substantively changed we will appeal the decision.”
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