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 $1-2 billion. A spokesman for state Attorney General Bill Lockyer confirmed Tuesday that talks are taking place but he would not characterize their current status.

Sempra is one of the companies being investigated by the attorney general for alleged wholesale energy market manipulation in the 2000-2001 timeframe. Lockyer has alleged that Sempra and others conspired to drive up wholesale natural gas prices, which in turn helped artificially increase wholesale electricity prices throughout the West.

The spokesperson confirmed that claims total $1-2 billion but 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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