State’s Top Natural Gas Firm Is Target of Suits

Sempra Energy, owner of the largest U.S. natural gas utility, was accused of conspiring to eliminate competition in California’s electricity and natural gas markets and contributing to soaring power prices statewide. Southern California Gas Co. and San Diego Gas & Electric Co.--whose parent companies merged to form Sempra in 1998--were accused of holding a secret meeting in 1996 with El Paso Natural Gas, a unit of El Paso Energy Corp. The accusation is part of two lawsuits filed in Los Angeles County Superior Court on behalf of Continental Forge Co., a Compton-based aluminum-forging business. The electricity suit was filed on behalf of Andrew and Andrea Berg, residents of San Diego and operators of a San Diego-based business, Wavelength Hair Productions. At the meeting, the companies allegedly agreed not to compete against each other in the Southern California and Baja California natural gas markets, the suits claim. San Diego-based Sempra said in a statement that it hasn’t been served with either of the suits. “Any allegations that the company or its subsidiaries violated antitrust or other laws are completely false,” Sempra said. San Diego Gas & Electric asked the Federal Energy Regulatory Commission on Dec. 7 to place price caps on natural gas, Sempra noted. El Paso Energy also hasn’t seen the suits and won’t comment on them, said spokesman Mel Scott. Sempra shares rose 94 cents to close at $23.06, and El Paso rose $2.44 to close at $67.94, both on the New York Stock Exchange.