Features

LOS ANGELES — A lawsuit filed by power supplier Duke Energy against the California Independent System Operator and another state agency in hopes of getting paid for electricity will continue, a judge ruled Monday. 

U.S. District Judge Terry J. Hatter refused to dismiss the lawsuit, saying he wanted to proceed and have the parties work out the issues. 

In a lawsuit filed in February, Duke claimed it provided millions of dollars in energy to cash-strapped California utilities under orders from the ISO without ensuring that it would be paid. The action also named the state Department of Water Resources, which is in charge of buying wholesale electricity for the utilities. 

“The power is just going out there and is being taken,” said Seth Ribner, a lawyer for Duke. “You have to pay for power because it is unconstitutional to steal it.” 

Cal-ISO, manager of the state’s power grid, argued that Duke failed to state what specific violation it is accusing the grid operator of committing. The DWR, in charge of buying wholesale electricity, contends it only backs the transactions and is not actively involved in them. 

Both parties asked the judge to dismiss the lawsuit. 

John Saurenman, a lawyer for the DWR, also argued that the lawsuit was premature, adding that officials are implementing a process to pay energy suppliers. 

“This is not a case whether Duke will get paid,” he said. “It is simply when and how.” 

If Duke cooperates, it could be “paid in full by the end of the year,” the attorney said.