Truce With California Sends Williams Higher

Williams rallied Tuesday as investors celebrated a truce with California.

Tulsa-based Williams announced late Monday that it reached a settlement with California that could end two major lawsuits accusing it of gouging the state during the power crisis of 2001. The deal, expected to be finalized in a month, could shave nearly one-third of the value from a $4.3 billion long-term power deal Williams inked with the state last year. It also requires Williams to fork over $417 million in refunds, hard assets and energy discounts to compensate for the alleged overpricing.

Williams, which admitted no wrongdoing in the deal, celebrated the settlement as a victory that will erase a major drag on its stock. The market agreed, pushing shares of the beleaguered energy company up 9.6% to $2.85 in Tuesday morning trading. ...