IBEW Local 1245 News

Posted: April 28, 2008

COURT OF APPEALS DENIES SOUTH SAN JOAQUIN IRRIGATION DISTRICT’S TAKEOVER BID

California’s 3rd District Court of Appeal issued two unanimous decisions supporting Pacific Gas and Electric Company regarding attempts by the South San Joaquin Irrigation District (SSJID) to enter the retail electric business by seizing the utility’s assets.

The first decision rejects SSJID’s plans to condemn PG&E’s assets through eminent domain in order to provide retail electric service without authorization from the San Joaquin County Local Area Formation Commission (SJ LAFCo). The second rejects attempts by SSJID to depose two former SJ LAFCo commissioners and the commission’s former executive director. The Court also ruled that the District is responsible for all court costs associated with the appeals for both PG&E and SJ LAFCo.

PG&E maintains that SSJID needs approval by SJ LAFCo to enter into the retail electric business. The irrigation district applied to SJ LAFCo in 2006, but after the SJ LAFCo rejected the application SSJID took the position that the commission’s approval was not mandatory.

The court rejected that argument.

PG&E has insisted that the company’s facilities are not for sale and that it would fight a hostile eminent domain takeover if SSJID reopens its application with SJ LAFCo.