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Lockyer Announces Settlement in Energy Price Gouging Case

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Attorney General Bill Lockyer says he´s reached a proposed 750 million dollar settlement with an Atlanta energy firm that he charged with price gouging during the state´s energy crisis.

Under the deal, Mirant Corporation will forgive nearly 300 million dollars owed it by California utilities and let them claim another 175 million dollars during its Chapter

11 bankruptcy proceedings. P-G-and-E will also receive 250 million dollars in power and Mirant assets.

The company continues to deny wrongdoing. But it says the settlement removes financial uncertainty from its future.

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