Energy Firm Deal May Add 4 New Power Plants

The city may soon build four publicly owned power plants under a settlement reached with one of the companies accused of price-gouging Californians during the 2000-01 energy crisis.

The plants would be powered by natural gas-fired turbines supplied free by Williams Energy Cos. of Tulsa, Okla., which agreed Friday to pay the state of California about $150 million over eight years and to reduce its 10-year, $4.3-billion contract with the state by about $1.4 billion.

The company also will provide the state with six electric-generation turbines valued at $90 million. Four of them will be in San Francisco.

As part of the deal, the state agreed to drop all legal claims alleging price-gouging by the company. It will continue to investigate Williams’ alleged role in manipulating natural gas prices.