Cities Sue Gas Companies.The cities of Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and Long Beach filed separate lawsuits accusing a coalition of gas companies of conspiring to eliminate competition, drive up natural gas prices and discourage the construction of electricity generating plants in California. Officials from the two cities alleged that Southern California Gas This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. Co., San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. Gas & Electric and El Paso Natural Gas El Paso Natural Gas is a system of natural gas pipelines that brings gas from the Permian Basin in Texas and the San Juan Basin in New Mexico and Colorado to West Texas, New Mexico, Nevada, California and Arizona. It also exports some natural gas to Mexico. Co. violated the state's antitrust law antitrust law Any law restricting business practices that are considered unfair or monopolistic. Among U.S. laws, the best known is the Sherman Antitrust Act of 1890, which declared illegal “every contract, combination…or conspiracy in restraint of trade or and engaged in unfair and fraudulent business practices that caused gas prices to skyrocket. They are seeking damages that could reach into the billions of dollars. The lawsuits, filed in Los Angeles County Superior Court, accuse the companies of conspiring to manipulate the price of natural gas by agreeing to kill pipeline projects that would have brought ample supplies of cheaper natural gas to Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . The gas companies strongly denied the allegations, saying California's energy problems are the result of soaring demand for electricity and fluctuations in the price of natural gas. The cities are the first California municipalities to take action against the gas companies, but several lawsuits around the state are targeting California's natural gas suppliers. El Paso Corp., which owns the main pipeline transporting out-of-state gas to Southern California, has been targeted repeatedly by utility companies, state regulators and antitrust attorneys. In recent months, natural gas prices have tripled across the nation for a number of reasons, including a shortage of supplies to meet demands for home heating. Prices have increased far more in California, where natural gas is a central factor in the state's energy crisis. The state relies on the clean-burning fuel to generate half its electrical power. |
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