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If You Purchased Natural Gas or Electricity
for Your Home or Business in Nevada

Your Rights May Be Affected by a Proposed Class Action Settlement

A proposed class action settlement between plaintiffs representing Southern Nevada business and residential customers of natural gas and electrical power, including those who purchased gas from Southwest Gas and electricity from Nevada Power Company, is pending in Eighth Judicial District Court in Clark County, Nevada, Court Room IV, located at The Regional Justice Center, 200 Lewis Avenue, Las Vegas, NV 89155. The Representative Plaintiffs include the State of Nevada, Robert L. Moore and Colette L. Moore. The Defendants who have agreed to the settlement include Sempra Energy, Southern California Gas Company, San Diego Gas and Electric, Sempra Energy Trading Company, Sempra Energy Resources Co., Sempra Energy Power I, Sempra Energy Solutions, and Sempra Energy Sales (hereinafter the "Sempra Defendants").

You may download the ORDER CONDITIONALLY CERTIFYING SETTLEMENT CLASS; GRANTING MOTION FOR PRELIMINARY APPROVAL; AND SCHEDULING HEARING ON FINAL APPROVAL that describes your legal rights by clicking here.

On November 15, 2002, the State of Nevada, by and through the Nevada AG, acting as chief law enforcement officer of his state and as parens patriae, and class representatives Robert and Colette Moore and Jennifer and John Frazee, filed the Class Action against the Sempra Parties, and other defendants, in the Eighth Judicial District Court, Clark County, Nevada. The Representative Plaintiffs allege that Sempra Defendants conspired with El Paso Corporation and its subsidiaries to eliminate competing pipeline projects under development which would have increased supplies of natural gas to Southern Nevada and reduced or averted natural gas shortages and high natural gas and electricity prices experienced in Southern Nevada in 2000-2001. El Paso Corporation previously settled with the Representative Plaintiffs. The Sempra Defendants deny these allegations. The lawsuit filed by the Representative Plaintiffs sought damages and restitution based on the higher energy costs.

The material terms of the settlement include:

In exchange for the release of pending claims, the Sempra Defendants will provide total consideration to the class of up to $30 million less attorneys' fees and costs awarded by the Court.

The $30 million is payable to the Attorney General for the State of Nevada, acting as chief law enforcement officer for his state and in his parens patriae capacity, and to Robert L. & Colette L. Moore, individually and on behalf of the Nevada Class, in eight equal annual installments payments.

Representative Plaintiffs must also file an Allocation Agreement, subject to Court approval that identifies how the settlement proceeds will be apportioned and distributed among the settlement class. Representative Plaintiffs anticipate the benefits of the settlement will be passed through to current gas ratepayers of Southwest Gas Corporation in Southern Nevada in the form of rate reductions, credits, and/or rebates. Similarly, Representative Plaintiffs anticipate the benefits of the settlement will be passed through to current electricity ratepayers of Alamo Power District, City of Boulder City, Lincoln County Power, Nevada Power Company, Overton Power District, Panaca Power and Light, Penoyer Valley Electric, and Valley Electric Association in Southern Nevada in the form of rate reductions, credits, and/or rebates. Representative Plaintiffs also anticipate transportation service customers of Southwest Gas Corporation will receive a monetary benefit from the settlement. However, transportation service customers who did not file a claim under an earlier, related settlement with El Paso Corporation will be required to file a claim to receive a benefit.

If you wish to remain in the settlement class, you need not take any action at this time. However, you will be bound by the rulings of the Court if the settlement is approved. For complete information regarding your rights, please read the ORDER CONDITIONALLY CERTIFYING SETTLEMENT CLASS; GRANTING MOTION FOR PRELIMINARY APPROVAL; AND SCHEDULING HEARING ON FINAL APPROVAL click here. You can also obtain that document by calling 1-888-262-4479.

Important Dates
  • Final Approval Hearing - September 8, 2006
    The Court has scheduled a hearing at 9:00 AM on September 8, 2006 in the courtroom of the Honorable Kathy A. Hardcastle, Judge of the Clark County 8th Judicial District Court, Department IV, located at Regional Justice Center, 200 Lewis Ave, Las Vegas, NV 89155, to determine whether the settlement with the Sempra Parties is fair, adequate, and reasonable and should be given final approval. At the same time, the Court will hold a hearing to determine the amount of attorneys' fees and costs to be awarded to the law firms representing the Class. Although you may attend the hearing, you are not required to do so to participate in the settlement.
  • Deadline to Exclude Yourself - August 10, 2006
    If you do not wish to participate in the settlement or be bound by the settlement terms, you may be excluded from the action by mailing a letter requesting exclusion from the class which must be post marked on or before August 10, 2006, as outlined in the ORDER CONDITIONALLY CERTIFYING SETTLEMENT CLASS; GRANTING MOTION FOR PRELIMINARY APPROVAL; AND SCHEDULING HEARING ON FINAL APPROVAL click here. You can also obtain that document by calling 1-888-262-4479.
  • Deadline to File Objection and/or Notice of Intention to Appear - August 10, 2006.
    If you wish to object to the settlement, you must remain a class member. You and/or your counsel may appear in opposition to the settlement by following the procedures outlined in the ORDER CONDITIONALLY CERTIFYING SETTLEMENT CLASS; GRANTING MOTION FOR PRELIMINARY APPROVAL; AND SCHEDULING HEARING ON FINAL APPROVAL click here. You can also obtain that document by calling 1-888-262-4479.