ENERGY

Edison Will Pay $40 Million to Settle Suit: Southern California Edison will pay Tucson Electric Power $40 million to settle a lawsuit generated by Edison’s ill-fated attempt to merge with San Diego Gas & Electric in 1991, the companies announced. The out-of-court settlement, which will reduce the Rosemead-based utility’s third-quarter net income by $24 million, ended a jury trial that began last week in Superior Court in San Diego. The $40-million payment includes $25 million to settle claims that Edison illegally interfered with Tucson Electric’s planned merger with SDG&E.; Edison also agreed to pay $15 million for “litigation and related expenses.” The stock of Edison’s parent company, SCEcorp, fell 37.5 cents to $46.50 a share on the New York Stock Exchange.