Torch Energy Marketing, Inc. v. Pacific Gas & Electric Co.

MEMORANDUM AND ORDER

ROSENTHAL, District Judge.

This declaratory judgment action arose from a California Production Balancing-Agreement (“CPBA”) between plaintiff, Torch Energy Marketing, Inc. (“TEMI”), and defendant, Pacific Gas and Electric (“PG & E”). Under the CPBA, TEMI distributed natural gas through a pipeline PG & E owned. The contract required delivery of a specified amount of gas. Failure to deliver less than the specified amount in a given month created an imbalance. If TEMI did not act to correct the imbalance within a set period, and the accrued imbalance exceeded a set amount, PG…