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Despite the energy crisis facing California this past summer, Gov. Gray Davis acted illegally when he seized over $200 million worth of power contracts to keep the now bankrupt California Power Exchange from liquidating them, the 9th U.S. Circuit Court of Appeals ruled. Duke Energy had alleged Davis' commandeering of the contracts violated the Supremacy Clause and forced the company to sell power at below-market rates.
October 04, 2001 at 12:00 AM
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The original version of this story was published on Law.Com
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