PLACER COUNTY, Calif. — The Placer County Water Agency has filed a lawsuit against Pacific Gas and Electric for breach of contract.
The lawsuit alleges PG&E did not honor a six-month negotiation window after announcing its intention to transfer power-generating assets in Placer County to a subsidiary formed by PG&E. This includes the Drum-Spaulding Hydroelectric Project in Placer County.
The lawsuit was filed in Sacramento County Superior Court. The water agency said it has the right to about 125,000 acre-feet of water supplied by this project. This is the main source of water for Placer County residents and businesses.
“PCWA is required to ensure adequate water supplies for the people of Placer County,” said PCWA Board Chairman Robert Dugan in a statement. “This lawsuit is being filed to protect those supplies and the interests of the people of Placer County by compelling PG&E to comply with our water supply contract.”
ABC10 has reached out to PG&E for a statement on the lawsuit but did not receive a response by the time of publishing.
Placer County Water Agency said PG&E notified it in September 2022 that the utility filed an application with the California Public Utilities Commission to transfer the project to a subsidiary.
The water agency said in the lawsuit that a water supply agreement was amended in 2015 that requires PG&E to give PCWA a six-month notice if it intends to sell the Drum-Spaulding Hydroelectric Project facilities. Per the water agency during that six months, it can discuss options to secure the water source.
“For more than 50 years, PCWA and PG&E have worked cooperatively to ensure the people of Placer County receive the water contractually obligated to them from the Drum-Spaulding Hydroelectric Project. While our preference is to continue this collaborative relationship, PG&E has violated our agreement to discuss our mutual interests by engaging in discussions with another entity and publicly announcing its decision to transfer these assets," said PCWA General Manager Andy Feckoin in a statement.
Read the full lawsuit HERE.
A lawsuit filed in September in San Francisco Superior Court alleges PG&E is responsible for the destruction and damage of the Mosquito Fire in Placer and El Dorado counties.
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