A lawsuit, filed in 2004, that accuses energy companies of reporting false information to publishers of price indices to manipulate the market during the state's energy crisis of 2000-2001, has reached an interesting place with a San Diego court ruling that 27 energy companies must hand over taped conversations of natural gas traders.
Plaintiff attorney Joseph Cotchett hopes that he can use the tapes to show a pattern of manipulation that pushed natural gas prices in California to 10 times the national average.
Transcripts of conversations of the natural gas traders are laden with expletives and call Californians "a bunch of hippies" who deserve high utility bills because stringent enviromental regulations kept the number of power plants in the state low.
The 16 plaintiffs with separate suits are seeking damages that could reach a total of $3 billion.
55 percent of California's power plants are fuelled by natural gas. So, increase in natural gas prices causes an increase in the price of electricity.
The defendants include EnCana, Duke Energy Corp., Reliant Energy Inc, Sempra Energy and Dynegy Inc.
A transcript of a conversation shows a couple of gas traders talking about whether they could get caught manipulating prices.
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