PG & E unable to reach agreement on renewable energy contracts: court documents

(Reuters) – PG & E Corp. has not been able to enter into an agreement with NextEra Energy Inc. and other companies with which it holds multi-billion dollar power contracts, in the context of a conflict jurisdictional claim regarding the ability of the failing public utility to break or modify those agreements, according to a court documents.

The issue will now be decided by the judge overseeing the bankruptcy of PG & E "in the coming weeks," according to documents filed Friday at the US Bankruptcy Court.

The question is whether the Bankruptcy Court or the Federal Energy Regulatory Commission is competent for power purchase agreements worth up to $ 42 billion.

PG & E, based in San Francisco, wants the case to be resolved in bankruptcy court, while NextEra and others want FERC to be involved. FERC has stated that it has "concurrent jurisdiction" with the bankruptcy court in this regard.

Contracts have emerged as one of the most controversial issues in PG & E's bankruptcy, which the company launched in January in the face of tens of billions of dollars in potential liability arising from recent wildfires in California. years, attributable to his equipment.

The question of what will happen to electricity deals is crucial to California's goal of 60% of its energy supply from renewable energy sources by 2030. Most of the contracts in question relate to solar or wind resources that meet the state's mandate.

"PG & E recognizes its important role in supporting the state's commitment to clean energy initiatives and remains committed to continuing to help California achieve its goals. its bold goals in terms of clean energy, "said the company in a statement.

"We appreciate the concerns of stakeholders across the state about the impact that the Chapter 11 filing could have on the state's clean energy progress. PG & E has not made any decision regarding the taking over or rejection of contracts under the Chapter 11 filing. "

NextEra officials were not immediately available to comment. Last month, US bankruptcy judge Dennis Montali urged companies and PG & E to reach an agreement by May 3rd. In court documents released Friday, they said they were unable to reach an agreement.