Facts

Pacific Gas & Electric Co. filed a complaint against the United States, seeking a declaratory judgment whether the U.S. was contractually bound to retain no more than the just and reasonable prices the Federal Energy Regulation Commission (FERC) set for electric power sales by Bonneville Power Administration and Western Area Power Administration during the California Energy Crisis.

PLAINTIFF'S CONTENTIONS:
PG&E contended that the U.S. was contractually obligated to refund any overcharges for Excluded Transactions and Summer Period sales, if and when, FERC resets prices for those sales. As such, PG&E filed for declaratory judgment accordingly.

DEFENDANT'S CONTENTIONS:
The U.S. contended that a prior court ruling precluded PG&E's arguments, therefore PG&E's complaint should be dismissed.

Result

Senior Judge Loren A. Smith granted PG&E's motion and the U.S. was obligated to refund overcharges if, and when, FERC makes a correction of prices.