Sempra to go to trial for market manipulation

San Diego-based Utility Sempra will go to trial over accusations it manipulated energy prices during the 2000-01 California Energy Crisis:

The plaintiffs say Southern California Gas Co. and San Diego Gas & Electric – Sempra's utility subsidiaries – conspired with El Paso Corp. to manipulate the natural gas market and caused some $9 billion in damages to customers statewide.

Among the issues in the dispute is what took place during a 1996 Arizona hotel room meeting between representatives of the Sempra companies and El Paso.

The plaintiffs say the meeting, attended by 11 senior executives of companies that were historic competitors, was held to reach agreement on carving up the regional natural gas market.

As a result, SoCal Gas stopped competing on a project favored by El Paso, while the Texas company similarly ceded a pipeline project in Mexico to a Sempra utility, according to the plaintiff allegations.

Now, Sempra wants to become a major supplier of Natural Gas to all of California by building an LNG terminal in Baja California.