This is a deal to try to cover Gov. Davis' backside for his failure to act promptly and responsibly. Duke has been among the most politically active generating companies, regularly meeting with public officials and stressing its commitment to the state. In July, Duke sent a letter to Gov. Davis offering to sell California utilities 2,000 megawatts of electricity for five years at what now would be considered a bargain rate. They're unhealthy for the marketplace. The company would not say how much of a discount it would take on money it claims to be owed for power sales in California.
People do settle lawsuits.
However, industry spokesmen lauded Duke. The state Legislature approved electricity deregulation with a unanimous vote in 1996. The move was expected to lower power bills in California by opening up the energy market to competition. Relatively few companies, however, entered that market to sell electricity, giving each that did considerable influence over the price. Meanwhile, demand has increased in recent years while no major power plants have been built.