El Paso reaches settlement with Arizona on energy crisis lawsuits

Washington (Platts)--27Dec2004

El Paso Corp has reached a $46.4-mil settlement with Arizona over the state's
pending litigation from the western energy crisis of 2000-2001, the company
said Monday. The settlement has received final approval from the Maricopa
County Superior Court, it added in a statement. As part of the settlement, El
Paso is required to invest $43-mil in capital projects designed to improve
interstate pipeline service in Arizona, accelerate $30-mil in already-planned
pipeline integrity expenditures, spend $3.4-mil for various community-oriented
programs in Arizona, and conserve water in the state. Spending for the latter
includes the state's Low-Income Energy Assistance Program; a grant for "Energy
for Arizona in the 21st Century," a study conducted by an independent
organization to analyze ways to diversify Arizona's energy supply portfolio
and reduce its reliance on any one gas supply basin; and funding for an
emergency preparedness/consequence management training and assistance program.
El Paso said it will seek recovery of the expenses in its FERC-approved rates.

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