Gauging the Winds of the Sempra-DWR Contract Renegotiations

By Published On: October 11, 2003

There may be movement on the contract-renegotiations front between Sempra Energy Resources and the Department of Water Resources over the controversial $6.5 billion long-term deal, but at this point it?s about as solid as reading tea leaves. Mike Niggli, president of Sempra Resources, said this week that the company was willing to talk but ?there has not been a material change? in its position. A week earlier, Sempra chief executive officer Stephen Baum said he had ?renewed the possibility of settlement discussions with the state.? After the statement was reported, Sempra?s press office said it should not be interpreted to mean talks had actually been started. DWR spokesperson Oscar Hidalgo, like Sempra, said its renegotiation door remained open, adding that the agency has reworked 17 long-term energy agreements. The Sempra contract, however, has long been the most controversial of the batch for provisions that ratepayer analysts deem lopsided.

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