Sempra Settles $400M Lawsuit Over California Utility Scam

California consumers who were victimized during the energy crisis of 2000-2001 will receive $400 million in refunds from several class action settlements, Attorney General Edmund G. Brown, Jr. said in a statement.

During the energy crisis, Enron, Sempra and other energy companies created phony energy shortages, blackouts and record-high energy prices in an Enron-style game to crank up profits. As a result, California’s two largest utilities, PG&E and Southern California Edison, became bankrupt, forcing the state to spend billions of dollars for huge amounts of emergency power to keep the lights on. California utility customers continue to pay off this debt from the utility crisis each month through a charge labeled “DWR bond charge” on their gas and electric bills.

“The settlements will put hundreds of millions of dollars back into the pockets of California energy consumers who suffered blackouts and great economic harm during the energy crisis,” Brown said.

The $400 million settlement with Sempra is the latest of 39 settlements that will provide California consumers more than $3 billion in ratepayer relief.