Residents sue Long Beach over gas rates
Residents of Long Beach, Calif., have filed a $38 million class action lawsuit against the city. The plaintiff, Long Beach Citizens for Utility Reform, is challenging recent rate increases by the city’s gas department.
The rate increases were instituted in December 2000. The plaintiff claims the rates are in violation of the city’s charter and municipal code, which mandate rates that reflect the prevailing rates charged by gas utilities in the Southern California area. In December, the city’s gas company began charging rates in excess of local rates, causing an increase in gas bills for local residents and businesses.