County sues Sempra Energy, others
over natural gas prices
SAN DIEGO ---- The county of San Diego has filed a lawsuit
against the country's major providers of natural gas, accusing the companies of
conspiring to boost profits by fraudulently manipulating gas prices and gouging
California consumers.
The lawsuit accuses San Diego-based Sempra Energy and other companies of
artificially inflating the price of natural gas during California's energy
crisis. Sempra owns Southern California Gas Co., which serves the Southwest
Riverside County area, as well as San Diego Gas & Electric Co.
Jennifer Andrews, a Sempra Energy spokeswoman, said the allegations are false and the lawsuit has no merit.
"Sempra and its subsidiaries did not cause the
energy crisis," Andrews said.
The lawsuit alleges company traders used deceptive practices from late 1999
through 2001 to create the illusion of high demand and bogus shortages, sending
gas prices up sixfold.
San Diego is the third California county to sue the natural gas companies. Santa
Clara and San Francisco filed separate, but similar lawsuits earlier this month
in Superior Court in San Diego that seek unspecified damages and a return of all
ill-gotten gains.
In addition to Sempra and its subsidiaries, the lawsuit names six groups of
companies: Houston-based Dynegy Inc.; Encana of Calgary, Alberta; Aquila Inc. of
Kansas City, Mo.; Houston-based Reliant Energy Inc.; CMS Energy Corp. of
Jackson, Mich.; and Houston-based Coral Energy Resources Inc.
The county filed its lawsuit in San Diego Superior Court on the same day the
Federal Energy Regulatory Commission announced settlements with Sempra Energy
and four other energy traders in connection with California's electricity crisis
four years ago.
The commission approved settlements totaling $18 million, including $7.2 million
from Sempra Energy Traders. The settlements bring to more than $21 million the
sum of corporate profits returned because of market gaming during the California
electricity crisis.
© 1997-2004 North County Times - Lee Enterprises
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