Truce With California Sends Williams Higher

California consumers, who've criticized Williams' original contracts as among the state's worst, wanted more from the negotiations. But state officials told the Los Angeles Times Monday that California pushed most heavily for price concessions and hard assets -- including four turbines valued at $90 million -- because it feared that cash payments would be endangered under a Williams bankruptcy.

News of the settlement came shortly after a fresh subpoena had sent shares of Williams diving by as much as 22%. The announcement also precedes, by mere days, a third-quarter earnings report that has been delayed for weeks.

California officials said Williams' push to strengthen its balance sheet helped speed the negotiation process along. Williams has been scrambling to rebuild itself in the wake of Enron's demise. The company's stock has hemorrhaged 90% of its value since Enron sent the entire industry into a tailspin roughly a year ago.

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