Federal Energy Regulatory Commission Rules In Favor Of Avangrid Renewables, LLC, An Indirect, Wholly-Owned Subsidiary Of Avangrid, In California Energy Crisis Litigation Related To The California Energy Crisis Of 2000-2001
Portfolio Pulse from Benzinga Newsdesk
The Federal Energy Regulatory Commission (FERC) ruled in favor of Avangrid Renewables, LLC, a subsidiary of Avangrid, Inc. (NYSE:AGR), in a long-standing litigation related to the California energy crisis of 2000-2001. FERC found that the power purchase agreement between Avangrid Renewables and the California Department of Water Resources was just and reasonable, overturning a previous decision that held Avangrid Renewables liable for $371 million. Avangrid's CEO and other executives expressed satisfaction with the ruling, which they believe demonstrates their commitment to fair pricing and reliable energy. The company cannot predict if the other parties will seek a rehearing or appeal.
December 21, 2023 | 3:19 pm
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Avangrid, Inc. (NYSE:AGR) receives a favorable ruling from FERC regarding a two-decade-long litigation over the California energy crisis, potentially avoiding a $371 million liability.
The favorable ruling from FERC is a significant legal victory for Avangrid, as it removes the uncertainty surrounding the potential $371 million liability. This outcome is likely to be viewed positively by investors and could lead to a short-term increase in Avangrid's stock price. However, the company's caution about the possibility of a rehearing or appeal suggests that there may still be some uncertainty, which is why the confidence score is not at the maximum.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100