WASHINGTON (Reuters) - A long-running dispute between California and the Federal Energy Regulatory Commission (FERC) over who appoints members of the state's power grid operator could be headed for a settlement, according to court documents filed on Wednesday.

FERC in 2002 ordered the California Independent System Operator to replace its five-member, governor-appointed board with a nine-member group independent of the governor's control.

The California grid operator ignored FERC's order and challenged the agency's ruling in the U.S. Court of Appeals for the District of Columbia.

The two sides on Wednesday asked the court, which heard oral arguments in May, to delay a ruling in the case. They said a settlement was possible.

The two sides "have already held fruitful discussions regarding this matter, and believe that further discussions will be productive," according to court documents. The court has not yet acted on the request.

FERC fought bitterly with former California Gov. Gray Davis over the issue. But FERC Chairman Pat Wood has had discussions with California Gov. Arnold Schwarzenegger in recent weeks.

Terry Winter, chief executive of the grid operator since 1999, resigned earlier this month.

The original board was seated in 2001, when California was in the grips of an energy shortage that spurred blackouts and bankruptcy of the state's biggest utility.

FERC has warned that California could face more energy shortages this summer due to hot temperatures and scarce hydropower supplies.

The agency had a chilly relationship with Davis, a Democrat who complained about FERC's refusal to act swiftly on the state's request for nearly $9 billion in refunds from alleged price-gouging during the 2000-01 energy crisis. So far, FERC has approved about $3.3 billion in refunds.

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