Western States Wholesale Natural Gas Settlement

(1) Duke Energy Trading and Marketing, L.L.C. and Duke Energy Carolinas, LLC (the “Duke” Defendants);

(2) Reliant Energy, Inc., Reliant Resources Inc., and Reliant Energy Services, Inc. (the “Reliant” Defendants);

(3) American Electric Power Company, Inc. and AEP Energy Services, Inc. (the “AEP” Defendants);

(4) El Paso Corporation f/k/a El Paso Energy Corporation, El Paso Tennessee Pipeline Company, El Paso Merchant Energy, L.P. f/k/a El Paso Marketing, El Paso Merchant Energy-Gas, L.P., El Paso Marketing, L.P., El Paso Merchant Energy Holding Company, El Paso Merchant Energy Company, El Paso Natural Gas Company, Mojave Pipeline Company, El Paso Mojave Pipeline Company, Mojave Pipeline Operating Company, and EPNG Mojave, Inc. (the “El Paso” Defendants);

(5) Sempra Energy, Southern California Gas Company, San Diego Gas & Electric Company, and Sempra Energy Trading LLC, formerly Sempra Energy Trading Corp. (the “ Sempra” Defendants); and

(6) e prime, inc., Xcel Energy Inc., e prime Energy Marketing, Inc. and Northern States Power Company (the “e prime” Defendants).

The proposed settlements are in addition to the settlements the Court approved on September 5, 2007 between Plaintiffs and the following defendants and their affiliates:

(1) The Williams Companies, Inc. and Williams Power Company, Inc. (the “Williams Defendants”);

(2) Encana Corporation and WD Energy Services Inc. (the “Encana Defendants”);

(3) Dynegy Inc. (incorrectly named as Dynegy Inc. Holding Company), Dynegy Holdings Inc. (incorrectly named as Dynegy Holding Co.) and Dynegy Holding Co., Inc.; Dynegy Marketing and Trade; Dynegy Power Marketing, Inc., Cabrillo Power I LLC, Cabrillo Power II LLC, El Segundo Power I LLC, El Segundo Power II LLC, Long Beach Generation LLC, WCP (Generation) Holdings LLC, and West Coast Power LLC (the “Dynegy Defendants”);

(4) Coral Energy Resources L.P. (“Coral”);

(5) CMS Energy Resources Management Company, CMS Enterprises Group, Inc., CMS Marketing Services & Trading Co., CMS Field Services, Inc., Cantera Natural Gas, Inc., and CMS Energy Corporation (the “CMS Defendants”); and (6) Aquila Merchant Services, Inc. (“AMS”).

Am I a Member of the Class?

The class consists of all those who purchased natural gas in California and/or at the California border during the period from September 1, 1996, through January 26, 2009, inclusive (the “Class Period”), directly from one or more defendants or named non-party co-conspirators, or their affiliates. The class excludes Pacific Gas & Electric Co., San Diego Gas & Electric, Southern California Gas Company, Southern California Edison, Southwest Gas Corp., federal, state and local governments and governmental agencies (including municipal utilities), defendants, and named non-party co-conspirators.

What Is This Lawsuit About?

Plaintiffs assert that defendants and their co-conspirators caused the price of natural gas to artificially increase during the time period 1999 to 2002. Plaintiffs allege that defendants conspired to conduct prearranged “wash trades” (alleged to be 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, 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.

What Do the Settlements Provide?

Settling Defendants have agreed to pay amounts totaling $14,650,000, in exchange for the release of claims relating to natural gas during and after the Class Period, as described in the proposed settlements.

What Are My Options?

Be part of the settlement class. If want to recover money, you must submit a Proof of Claim, to recover from both the 2007 and 2009 settlements. You can fill out a form online, or you can download it and mail it in. The form must be submitted or postmarked by December 1, 2009.
Exclude yourself. You will keep your right to sue, or continue to sue, the Settling Defendants about the claims resolved in the proposed settlement. Please follow the instructions in the Notice of Proposed Class Action Settlements. Your written request for exclusion must be postmarked by July 27, 2009.
Object or comment on the proposed settlements. If you remain a member of the class, you may write to the Court about why you don't like the proposed settlements or any part of them. You can also request in writing to appear in Court. Your written objection or request for appearance must be received by July 27, 2009.

The Court has appointed counsel to represent the class. Counsel will seek an order from the Court awarding them attorneys' fees not to exceed 25% of the $14,650,000 settlement fund, plus reimbursement of out-of-pocket expenses, and service awards to settlement class representatives of $5,000 each. Counsel will be paid out of the settlement fund; there is no cost to you. You can also hire your own attorney at your own cost, if you wish.

The Court will decide whether to approve the settlements, the proposed plan of allocation, and counsel's motion for attorneys' fees and costs, and service awards, at a Fairness Hearing on August 25, 2009 at 10:30 a.m., in Courtroom No. 7C, United States Courthouse, 333 Las Vegas Blvd. South, Las Vegas, Nevada 89101.

For complete details, please read the Notice of Proposed Class Action Settlements.