The Associated Press
A state appellate court has declined to block a class-action lawsuit against Sempra Energy that accuses the company of conspiring to manipulate natural gas supplies in order to reap profits during California's energy crisis.

The 4th Appellate District last week denied Sempra's petition in the $24 billion lawsuit. Sempra had argued that a San Diego County Superior Court judge erred in September when he denied the company's request for summary judgment.

The lawsuit, filed four years ago by the city and county of Los Angeles along with several Southern California governments and others, accuses the companies of conspiring with El Paso Natural Gas Corp. to prevent competition for cheaper Canadian natural gas during California's energy crisis in 2000 and 2001.

"Sempra has now burned the last of its available bridges in a desperate ploy to make this case disappear and hide its outrageous conduct," plaintiff's attorney Thomas V. Girardi said in a statement issued Monday.

Sempra, based in San Diego, said in a statement issued by the company that Sempra looked forward to demonstrating in court that the plaintiffs' claims were "completely without merit and directly contradicted by their own evidence."

"It is unfortunate that our judicial system is clogged by such irresponsible lawsuits. If this case ever reaches trial, we fully expect to prevail," the company's statement reads.

Sempra faces a jury trial next year and a trial date is expected to be set early next month, according to the plaintiffs.

The plaintiffs claim the conspiracy to manipulate California's energy market was hatched in September 1996 when 11 senior executives of Southern California Gas, San Diego Gas & Electric and El Paso Natural Gas met at a Phoenix hotel. Sempra categorically denies that a conspiracy existed.

El Paso, the largest natural gas pipeline company in the United States, settled the lawsuit in December 2003 by agreeing to pay $1.7 billion.