Frequently Asked Questions

1. What is the background of this class action?
2. What is this lawsuit about?
3. Am I a class member?
4. What will the Settlement Classes Get?
5. What claims am I releasing as a member of the settlement class?
6. How will the lawyers' fees be paid?
7. Do I have to submit a claim form?
8. I want to opt out of this settlement. How do I do so?
9. I want to object to the settlement. How do I do that?
10. What happens if I do nothing?
11. When is the Fairness Hearing scheduled?
12. Where can I get further information?


1. What is the background of this class action?

Several lawsuits (the “California Class Actions”) were filed in federal court between November 10, 2003 and June 21, 2005. These lawsuits were coordinated in the United States District Court for the District of Nevada before the Hon. Philip M. Pro, under the name In re Western States Wholesale Natural Gas Antitrust Litigation, MDL 1566.

On September 5, 2007, the Court granted final approval to settlement agreements totalling $11,313,846.15 between Plaintiffs and the Williams, EnCana, Dynegy, Coral, CMS, and AMS Defendants. The proceeds of those settlements have not yet been distributed to settlement class members. The funds have been held in an interest-bearing escrow account so that they could be combined with proceeds from other settlements and distributed to the settlement class members through a single claims process. You may have previously received a notice about the settlements, which was sent in 2007.

Following approval of the 2007 Settlements, Plaintiffs continued to litigate the action against the remaining defendants. Plaintiffs reached a settlement with the AEP Defendants after Plaintiffs prevailed against these defendants on appeal. During the class certification briefing process, Plaintiffs reached settlements with the other Settling Defendants. The terms of these new settlements (the “2009 Settlements”) are briefly described in the responses below.


2. What is this lawsuit about?

Plaintiffs allege that the named defendants and their co-conspirators caused the price of natural gas purchased in California and/or at the California border to artificially increase during the time period 1999 to 2002. In particular, Plaintiffs allege that defendants conspired to conduct prearranged “wash trades” (which Plaintiffs allege are the contemporaneous purchase and sale of the same amount of natural gas at the same price) and reported false price and volume information to trade publications that compile natural gas price indices, in violation of federal and California law, and that California purchasers paid more for natural gas as a result. Plaintiffs further allege that the Sempra and El Paso Defendants affected the price of natural gas in California by restrictions they placed on pipelines transporting natural gas to and through the state. Defendants deny these allegations.

Claims, issues and defenses in this litigation concern the following:

• Claims: Plaintiffs allege that defendants violated federal antitrust laws, and California state laws, by manipulating the prices of natural gas during the California energy crisis.
  
  
• Issues: Whether defendants manipulated natural gas prices; whether defendants acted unfairly and deceptively in their business practices; and whether Plaintiffs and the members of the Class were damaged by defendants' conduct as alleged, and if so, how.
  
  
• Defenses: Defendants deny these allegations and have asserted a number of defenses.
  

3. Am I a class member?

The Settlement Class in the MDL Class Actions (Western States Wholesale Natural Gas Antitrust Litigation) consists of all individuals and entities who purchased natural gas in California and/or at the California border:

1. From September 1, 1996 through January 26, 2009;

2. Directly from one or more of the defendants or named non-party co-conspirators, or their affiliates;

3. For the following purposes:

(a) Use;
(b) Generation of electricity for the purpose of resale; or
(c) Resale,

4. EXCLUDING: Pacific Gas & Electric Co., San Diego Gas & Electric, Southern California Gas Company, Southern California Edison, Southwest Gas Corporation, federal, state and local governments and governmental agencies (including municipal utilities), defendants, or named non-party co-conspirators.

4. What will the Settlement Classes Get?

In exchange for the releases set forth below, Settling Defendants will provide total payment to the settlement class of $14,650,000 into an escrow account accruing interest for the benefit of the settlement class. Settling Defendants will make cash payments into escrow as follows:

• The Duke Defendants $3,466,667
  
• The Reliant Defendants $3,466,666
  
• The AEP Defendants $1,750,000
  
• The El Paso Defendants $3,466,667
  
• The Sempra Defendants $2,000,000
  
• The e prime Defendants $ 500,000
  

5. What claims am I releasing as a member of the settlement class?

If the Court approves the Settlement Agreements after the Fairness Hearing, and the approvals are not challenged, or are affirmed on appeal, the Settlement Agreements will become final (the “Effective Date”). On the Effective Date, the releases provided by members of the settlement class, and subclasses, who did not timely and validly exclude themselves (the “Releasors”) will become effective. The releases for each settlement subclass are in the Appendix at the end of the Notice. PLEASE REFER TO THE SETTLEMENT AGREEMENTS FOR THE TERMS OF EACH SETTLEMENT. YOU MAY BE A MEMBER OF ONE OR MORE SETTLEMENT SUBCLASSES.


6. How will the lawyers' fees be paid?

According to the Settlement Agreements, certain disbursements may be made from the Settlement Fund to pay, on an interim basis, reasonable notice and administration costs and tax expenses. These settlements are subject to final approval by the Court following a Fairness Hearing.

The Court has appointed plaintiffs Texas-Ohio Energy, Inc.; Fairhaven Power Company; Abelman Art Glass Company; Utility Savings and Refund Services, LLP; Ever-Bloom, Inc.; and Maximum Nursery, Inc., as representatives of the settlement class and subclasses. The Court has appointed the firms of Glancy Binkow & Goldberg LLP; Boni & Zack LLC; Hoffman & Edelson, LLC; and Zelle Hofmann Voelbel & Mason LLP, as Class Counsel to represent you and other settlement class members. You will not be charged for these lawyers.

When the 2007 Settlements were approved, by Order dated December 7, 2007 the Court also approved payment of attorneys' fees to Class Counsel in the amount of 25% of the Settlement Fund (which consisted of $11,313,846.15 plus interest thereon), costs and expenses in the amount of $222,832.64, and service awards to settlement class representatives in the amount of $5,000 each. If the Court approves the 2009 Settlements, Class Counsel will move for payment of additional attorneys' fees not to exceed 25% of the $14,650,000 Settlement Fund, plus reimbursement of out-of-pocket expenses. Plaintiffs will also move for service awards to settlement class representatives in the amount of $5,000 each. If the Court approves the motions, these awards will be paid from the $14,650,000 Settlement Fund. Plaintiffs will propose a plan of allocation at a date prior to the Fairness Hearing.

THE COURT HAS NOT RULED ON ANY OF THE CLAIMS OR DEFENSES OF THE PARTIES. THIS NOTICE IS NOT TO BE UNDERSTOOD AS AN EXPRESSION OF ANY OPINION BY THE COURT AS TO THE MERITS OF ANY OF THE CLAIMS OR DEFENSES ASSERTED BY PLAINTIFFS OR DEFENDANTS.


7. Do I have to submit a claim form?

If you want to receive part of the settlement funds, you must submit a Proof of Claim, even if you object to one or more of the proposed Settlement Agreements. You can fill out a Proof of Claim online or download and mail it to the address found on the Claim Form.

Proof of Claim forms must be submitted or postmarked on or before December 1, 2009.


8. I want to opt out of this settlement. How do I do so?

Each settlement class member may request to be excluded from one or more settlement subclass. The Court will exclude all persons and entities who file timely and valid requests for exclusion.

If you exclude yourself from all of the settlement subclasses, you will not receive any money from the Settlement Fund, you will not be legally bound by any judgment or decision in this litigation with respect to these settlements, and you cannot object to the settlements.

If you exclude yourself from one or more (but not all) of the settlements, you will not receive money from that settlement, you will not be legally bound by any judgment or decision in this litigation with respect to that settlement, and you cannot object to that settlement. However, if you file a timely and valid claim, you will receive proceeds from the settlements that you do not object to.

You can request to exclude yourself by mailing a request for exclusion, received no later than July 27, 2009, to:

In re Western States Wholesale Natural Gas Antitrust Litigation
c/o Epiq Class Action and Claims Solutions, Inc.
P.O. Box 3775
Portland, OR 97208-3775

Requests for exclusion must be in writing and set forth the name, address, and telephone number of the person or entity who wishes to be excluded, as well as all trade names or business names and addresses used by such person or entity, must state that the person or entity wishes to be excluded, and must be signed by the person or entity seeking exclusion.


9. I want to object to the settlement. How do I do that?

Any member of the Class that has not requested to be excluded from the Settlement Class may You may object to any settlement from which you have not excluded yourself (see Section VI below for procedures on exclusion). Provided you have not excluded yourself, you also may appear at the Fairness Hearing to state your objection.

However, no settlement class member shall be heard unless an objection is made in writing, signed by the objecting member, and filed with the Court, together with any papers or briefs in support of the objection, with copies to counsel listed below by first-class mail, postage prepaid. Failure to timely file and serve written objections will prevent a settlement class member from objecting at the Fairness Hearing.

The objection shall include:

(1) The complete name and residence or business address of the objecting member;

(2) A statement signed under penalty of perjury by the objecting member, that the member purchased natural gas in California or at the California border for use, for generation of electricity for the purpose of resale, or for resale, during the period from September 1, 1996 through January 26, 2009, and purchased directly from a defendant, co-conspirator, or one of their affiliates; and

(3) Each ground for comment or objection and any supporting papers the member desires the Court to consider.

(4) The filing of an objection will not extend the time to file a request for exclusion.
All objections, with supporting statements and/or papers, must be filed in writing with the Clerk, United States District Court for the District of Nevada, 333 Las Vegas Blvd. South, Las Vegas, Nevada 89101, and received no later than July 27, 2009, with copies served upon the individuals identified below:

Craig C. Corbitt ZELLE HOFMANN VOELBEL & MASON LLP 44 Montgomery Street, Suite 3400 San Francisco, CA 94104 Settlement Class Co-Counsel Michael J. Miguel MORGAN LEWIS & BOCKIUS LLP 300 So. Grand Ave., 22d Fl. Los Angeles, CA 90071 Counsel for the Xcel Defendants Robert B. Wolinsky HOGAN & HARTSON LLP Columbia Square 555 Thirteenth St., NW Washington, DC 20004 Counsel for the AEP Defendants Reliant Energy, Inc. 1000 Main Street Houston, TX 77002 For the Reliant Defendants General Counsel Sempra Energy 101 Ash Street San Diego, CA 92101 Counsel for the Sempra Defendants

Michael J. Boni BONI & ZACK LLC 15 St. Asaphs Road Bala Cynwyd, PA 19004 Settlement Class Co-Counsel Kerry C.Koep Asst. General Counsel Xcel Energy Services Inc. 414 Nicollet Mall, 5th Fl. Minneapolis, MN 55401 Counsel for the Xcel Defendants D. Michael Miller One Riverside Plaza Columbus, OH 43215-2372 For the AEP Defendants El Paso Corporation 1001 Louisiana Houston, TX 77002 Attn: General Counsel For the El Paso Defendants Duke Energy Corporation 526 South Church Street Charlotte, NC 28202 Attn: Group Executive and Chief Legal Officer For the Duke Defendants

10. What happens if I do nothing?

If you do nothing, you will not receive any money from the settlement fund. You will also give up rights to start, continue, or be part of any other lawsuit against the Settling Defendants based on the legal claims in the class action lawsuits.


11. When is the Fairness Hearing scheduled?

Class Counsel believe that the proposed settlements are fair, reasonable and adequate and in the best interests of the settlement class and subclasses. Class Counsel will be requesting the Court to enter an Order finally approving the settlements at the Fairness Hearing on August 25, 2009, at 10:30 a.m. The time and date of the hearing may be postponed. Notice of any postponement shall be set forth on the Court's docket.

At the Fairness Hearing, the Court will consider whether: (1) the settlement agreements should be finally approved as fair, adequate and reasonable to the settlement class and subclasses; (2) the claims against Settling Defendants should be dismissed with prejudice; (3) the plan of allocation proposed by plaintiffs should be approved; (4) Settlement Class Counsel should be awarded attorneys' fees, costs and expenses; and (5) settlement class representatives should receive service awards.

You do not need to appear at that hearing. Class Counsel will answer the Court's questions on your behalf. However, if you want to attend, you may enter an appearance through counsel of your own choosing and at your own expense, or you may appear on your own.


12. Where can I get further information?

For further information, please review the settlement Notice and Proof of Claim Form, or please direct your inquiries to the Claims Administrator at the address below:

In re Western States Wholesale Natural Gas Antitrust Litigation
Epiq Class Action and Claims Solutions, Inc.,
PO Box 3775
Portland, OR 97208-3775

For more detailed information concerning the matters involved in the litigation, please review the pleadings, the Settlement Agreements, the Orders entered by the Court and the other papers filed in the litigation, which may be inspected at the Office of the Clerk of the United States District Court for the District of Nevada, 333 Las Vegas Blvd. South, Las Vegas, Nevada 89101, during regular business hours.

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