Attorney General Bill Lockyer told a group of Bloomberg reporters that a resolution with Sempra Energy over energy crisis claims and renegotiation of its long-term contract with the Department of Water Resources could yield between $1 billion and $2 billion for the state. Some sources familiar with the deal say any potential wide-reaching settlement is, however, in the preliminary stages. ?I don?t believe that Sempra has put anything more on the table than they offered [Governor Gray] Davis,? said Michael Shames, Utility Consumers? Action Network director. Sempra declined to provide any specifics. Jennifer Andrews, Sempra spokesperson, would only say there have been discussions about ?potential renegotiations along with resolution of other issues related to the energy crisis with various state entities.? Tom Dresslar, the AG?s spokesperson, declined to comment on the media reports about a possible settlement. Sempra?s take-or-pay contract infuriated consumer groups and was the target of a suit by the AG. The lawsuit, which was dismissed by a lower court and is now on appeal, alleges the company violated the $6 billion, 10-year deal because although it provides power, the promised power plant, Elk Hills, has not been built. Tensions over the agreement have increased. Sempra allegedly has deviated from its monthly and annual fuel-cost plans, which is driving the deal?s cost up, according to Oscar Hidalgo, DWR spokesperson. DWR has demanded arbitration, as allowed in the contract, to address the areas of disagreement. As to any potential settlement, Hidalgo would say only that the agency continues to look for ?renegotiation opportunities.?