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FILE PHOTO: A PG & E truck carrying an American flag pbades in front of PG & E repair trucks in Paradise, California, United States, November 21, 2018. REUTERS / Elijah Nouvel / File Photo
(Reuters) – Federal energy regulators said Friday they have a joint court with a bankruptcy court over any petition for the cancellation or renegotiation of California's electricity company's PG & D contracts. E Corp, which is preparing to file for bankruptcy.
The Federal Energy Regulatory Commission's order has been successful for energy producers who supply PG & E with large amounts of solar and wind energy. NextEra Energy Inc., which has several contracts with PG & E, last week asked FERC to declare that PG & E could not change its wholesale electricity contracts without Commission approval if it declared bankruptcy.
Several other generators filed comments in support of NextEra's application, including Exelon Corp, NRG Energy Inc., Consolidated Edison Inc., First Solar Inc and Southern Co.
PG & E announced that it was preparing to file for bankruptcy as early as next week. The utility faces potential liabilities of billions of dollars resulting from devastating fires in 2017 and 2018.
The question of the future of public utility renewable energy contracts is crucial for California, which last year provided 33% of its energy from renewable sources and whose goal is to produce 60% of its energy. energy from renewable sources by 2030. 250 renewable energy contracts representing a $ 57 billion investment, announced last month.
Earlier this week, PG & E argued in response to NextEra's request that only the bankruptcy court would have jurisdiction over its renewable energy contracts, not the FERC.
FERC said Friday that it was not convinced by PG & E's argument. It acknowledged that the law was "unresolved" but stated that "these agreements are still subject to the Commission's jurisdiction and that it retains the discretion to exercise its authority ".
"We are reviewing the FERC order and we will respond to you in a timely manner," a PG & E spokeswoman said in a statement sent to Reuters by e-mail.
NextEra was not immediately available for comment.
Report by Nichola Groom; Edited by Richard Chang and Sonya Hepinstall
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