Pacific Gas & Electric Co. v. Universal Electric & Gas Co.

An appeal from a judgment entered against the defendant in an action on a contract for the sale of electrical energy.

The contract, which was entered into between Sierra and San Francisco Power Company (hereinafter referred to as the power company) and the defendant on July 9, 1915, provided for the sale by the power company and the purchase by the defendant for a period of eight years of all the electrical energy required by the latter in the regular course, of its business in excess of that generated by its own plant. The rates agreed to be paid were fixed in accordance with a sliding scale based upon the amount of energy used, and it was further provided that the contract should bind the successors in interest of both parties. The complaint alleged that between the months of January, 1920, and April, 1922, inclusive, energy was furnished, for which under the contract defendant agreed to pay the sum of $812,613.97, and of which $774,598.36 had been paid. The prayer was for the difference of $38,015.61, and for which, with interest, the judgment was entered. The contract also provided that for the energy delivered during any month payment should be made within thirty days…