Although both sides are refusing to give any details, settlement talks between California and San Diego-based Sempra Energy are ongoing and could encompass claims that collectively represent $1 to $2 billion, according to a Bloomberg News report Monday following a meeting with Bill Lockyer, California’s attorney general (AG). A state AG spokesman confirmed the accuracy of the report Tuesday, although he would not characterize the status of the talks or their current stage.

Sempra is part of the AG’s ongoing investigations of alleged wholesale energy market manipulation in the 2000-2001 timeframe for the Western energy crisis centered in California. Lockyer has made allegations that Sempra and others conspired to drive up wholesale natural gas prices, which in turn helped spike the wholesale electricity prices throughout the West.

The AG spokesperson confirmed that the $1-2 billion range is accurate and that any amounts that Sempra might owe because of any natural gas wholesale price manipulation are hotly disputed as part of the talks.

A Sempra Energy spokesperson in San Diego indicated that company would not discuss settlement talks.

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