Judge OKs El Paso Settlement Proposal

A San Diego judge approved a proposed $1.55-billion deal between El Paso Corp. and several parties to settle charges that El Paso and its affiliates withheld natural gas supplies in the state’s 2000-01 energy crisis.

The judge’s approval is a key step toward settling the bulk of El Paso’s legal woes stemming from California’s crisis. Final approval of the deal must come from a federal court in San Diego.

The settlement includes an upfront cash and cash-equivalent payment of about $551 million, semiannual payments that total about $876 million and a $125-million reduction in California consumers’ gas rates.