Natural gas pipeline company El Paso Corp. pays Nevada $16.2 million

Jun 30, 2004 - Las Vegas Review-Journal

Jun. 30--El Paso Corp., a natural gas pipeline company, wired $16.2 million to a state bank account as the first step in paying a settlement that will total $52 million over time, state Consumer Advocate Tim Hay reported Tuesday.

 

The pipeline company agreed to pay the state the sum as part of a comprehensive $1.7 billion settlement with California and other Western states over lawsuits claiming El Paso conspired to manipulate natural gas prices between 1996 and 2001.

 

About two-thirds of that amount will go to consumers and small business natural gas and electric power customers, Hay said. He said he will establish a claims procedure for large customers who buy their own gas and rely on Southwest Gas Corp. only for delivery of gas, he said.

 

Hay declined to estimate how much the typical customer will receive. He plans to negotiate with Nevada Power Co. and Southwest Gas Corp. to take the money and grant prorated credit benefits to customers in September.

 

Nevada also benefits from El Paso's agreement to make changes to prevent market abuses.

 

 


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