Winding Creek Solar v. Pacific Gas & Electric Co. CA1/2

CourtCalifornia Court of Appeal
DecidedJuly 30, 2025
DocketA168649
StatusUnpublished

This text of Winding Creek Solar v. Pacific Gas & Electric Co. CA1/2 (Winding Creek Solar v. Pacific Gas & Electric Co. CA1/2) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Winding Creek Solar v. Pacific Gas & Electric Co. CA1/2, (Cal. Ct. App. 2025).

Opinion

Filed 7/30/25 Winding Creek Solar v. Pacific Gas & Electric Co. CA1/2 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION TWO

WINDING CREEK SOLAR LLC., et al., A168649 Plaintiffs and Appellants, v. (San Francisco City & County Super. Ct. No. CGC-22-600746) PACIFIC GAS AND ELECTRIC COMPANY, Defendant and Respondent.

Federal and state law permit small scale generators of electricity to sell electricity to larger utilities. Here, a group of those small generators failed to have their proffered contracts accepted by a larger utility and sued the larger, seeking a mandatory injunction compelling the larger to execute the pending proffered agreements and damages of lost profits for the contracts not signed. The trial court sustained a demurrer without leave to amend, on the ground it lacked jurisdiction because the controversy lay within the exclusive authority of the Public Utilities Commission, and entered judgment for defendant. We conclude the trial court’s reasoning was eminently sound, and we affirm.

1 BACKGROUND

The General Setting In California, the generation, sale, distribution, and pricing of electricity is covered by a jungle of dense federal and state regulation. The controversy before us is a particular thicket within that jungle. At the federal level, it has been declared policy for almost a half century to encourage native alternatives to the burning of foreign fossil fuel, a policy that is codified in the Public Utilities Regulatory Policies Act (16 U.S.C. § 2601 et seq. (PURPA).) One of the means selected to achieve that goal is to require large electricity producers to purchase electricity from smaller producers, known generically as “qualified facilities,” or QFs. (See Southern Cal. Edison Co. v. Public Utilities Com. (2010) 101 Cal.App.4th 384, 387―388 and authorities cited.) The governing state regulatory agencies are to implement this directive, and they have considerable discretion to do so. That discretion includes fixing the requirements for valid QF-generated electricity long-term purchase agreements, and establishing “ ‘alternative programs that . . . limit how many QFs, or the total capacity of QFs, that may participate in the program.’ ” (Winding Creek Solar LLC v. Peterman (9th Cir. 2019) 932 F.3d 861, 865, quoting Winding Creek Solar LLC (2015) 151 F.E.R.C. 61103, 61103.) In California, the responsible regulatory agency is the Public Utilities Commission (PUC). It has responded to this obligation by first adopting what was known as the FiT program (in effect from 2007 to 2013), then replacing it with the ReMat program (effective from 2013 to 2020), and then with the Modified ReMat program starting in 2020.

2 Since 2013, various QF entities operating numerous power generating facilities have been demanding that PG&E buy their electricity―to no avail. And in July 2022, nine years later, seven of the entities commenced this action against PG&E. There was some litigation in the years before this lawsuit was filed, including one case that began in July 2013, with an administrative complaint with the PUC that demanded the PUC require PG&E to enter into 20-year contracts for 57 facilities―the same 57 facilities involved here―under PG&E E-PWF Tariff (“the PUC Action”). In May, 2014, the PUC dismissed the administrative complaint “with prejudice,” explaining among other things that the law required implementation by the PUC, which PUC accomplished through the ReMAT program; that PG&E “was required to follow [the PUC’s] direction before amending or replacing its Schedule E-PWF tariff to remove the public water or wastewater agency eligibility requirements”; and that “By complying with its existing tariff,” “PG&E complied with the law.” In November 2014, the PUC denied rehearing, again concluding that “it was proper for PG&E to reject the rehearing applicants’ tariff requests pursuant to Schedule E-PWF.” The complainants then filed a petition for a writ of review in this court, which Division Three denied on March 5, 2015. Seven years later this lawsuit was filed. The Proceedings Below On July 15, 2022, represented by two attorneys in Connecticut identifying themselves as “ALLCO RENEWABLE ENERGY LIMITED” ,

3 seven of the entities filed a complaint against PG&E.1 The complaint is a most interesting filing, stating on its first page that it is a complaint for: (1) Declaratory Relief; (2) Injunctive Relief; (3) Breach of Legally Enforceable Obligation; and (4) Breach of Federal and State Laws Regulating Trade. Despite that description, a fair reading of the complaint reveals that it in fact asserts two causes of action: the first is a “claim for injunctive relief,” “requiring PG&E to enter into contracts for the purchase of energy and capacity from the Plaintiffs’ facilities or similar alternate facilities at the same terms and prices in effect at the time . . . when Plaintiffs submitted their applications to PG&E under” the FiT program in 2013. The second, pleaded in the alternative, seeks “the amount of profits [Plaintiffs] would have received had PG&E executed the contacts in 2013” under the FiT program.2 The gist of the complaint, viewed according to the principles governing review of demurrers (see O’Grady v. Merchant Exchange Productions, Inc. (2019) 41 Cal.App.5th 771, 776―777), and disregarding the boilerplate verbiage, can be distilled to the following:

1 The plaintiffs are Winding Creek Solar LLC, Foothill Solar LLC, Hollister Solar LLC, Kettleman Solar LLC, Vintner Solar LLC, Bear Creek Solar LLC, and Allco Renewable Energy Limited. The briefing here represents that “Allco Finance Limited LLC has an ownership interest in more than 10 percent in each of these Appellants.” 2 The complaint also pled alternative relief under ReMAT for Winding Creek only. Winding Creek, which owns a single facility out of the 57, alleges that “ ‘[l]ater in 2013,’ ” it “ ‘submitted the standard form documentation for . . . the ReMAT,’ ” and seeks injunctive relief or damages under ReMAT in the alternative to the FiT program.

4 Since 2013, plaintiffs have “offered to sell the energy and capacity for a 20-year term from various generating facilities to PG&E,” with the appropriate documentation, but PG&E “wrongfully refused and has continued to refuse” “to execute written contracts evidencing its obligation to purchase the energy and capacity from those facilities.” Those refusals constituted a “continued repudiation” of PG&E’s “obligation to purchase” plaintiffs’ “energy and capacity,” and were wrongful because PG&E was “obligated by federal and state law to purchase the Plaintiffs’ energy.” “Thus PG&E breached and continues to breach the obligation imposed on it” by Public Utilities Code section 399.20, thereby entitling plaintiffs “either to injunctive relief requiring PG&E to execute the relevant contracts or damages for Plaintiffs’ lost profits.” PG&E filed a demurer that contended the complaint failed on three separate, and independent, bases: (1) the superior court lacked jurisdiction over the action; (2) the action is barred by res judicata; and (3) the action is barred by all possibly applicable statutes of limitations.

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Bluebook (online)
Winding Creek Solar v. Pacific Gas & Electric Co. CA1/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/winding-creek-solar-v-pacific-gas-electric-co-ca12-calctapp-2025.