8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT



                         Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934



         Date of Report (Date of earliest event reported): July 26, 2002
                                                          ---------------



                          The Williams Companies, Inc.
                          ----------------------------
             (Exact name of registrant as specified in its charter)



         Delaware                    1-4174              73-0569878
         --------                ---------------     -------------------
       (State or other             (Commission        (I.R.S. Employer
       jurisdiction of            File Number)        Identification No.)
       incorporation)



     One Williams Center, Tulsa, Oklahoma                  74172
     ------------------------------------                  ------
  (Address of principal executive offices)                (Zip Code)



        Registrant's telephone number, including area code: 918/573-2000
                                                            ------------



                                 Not Applicable
                                 --------------
          (Former name or former address, if changed since last report)





Item 9.  Regulation FD Disclosure.

         The Williams Companies, Inc. wishes to disclose for Regulation FD
purposes its press release dated July 26, 2002, filed herewith as Exhibit 99.

           Pursuant to the requirements of the Securities Exchange Act of 1934,
Williams has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                         THE WILLIAMS COMPANIES, INC.


Date: July 26, 2002                               /s/ Suzanne H. Costin
                                         --------------------------------------
                                         Name:    Suzanne H. Costin
                                         Title:   Corporate Secretary







                                INDEX TO EXHIBITS



EXHIBIT
NUMBER            DESCRIPTION
- -------           -----------
               
   99             Copy of Williams' press release dated July 26, 2002.

EX-99

                                                                      EXHIBIT 99



[GRAPHIC OMITTED]

   JULY 26, 2002

                 WILLIAMS REACHES AGREEMENT IN PRINCIPLE FOR NEW
             CALIFORNIA POWER CONTRACTS AND RESOLUTION OF ALL STATE
                           CLAIMS AGAINST THE COMPANY

TULSA, OKLA. -- Williams (NYSE:WMB) today announced that it has reached an
agreement in principle with the state of California and other parties including
Washington and Oregon on a global settlement that is expected to result in a new
long-term energy contract between Williams and California.

Additionally, the agreement resolves all of California's outstanding litigation
and claims against Williams, including the state's claims for refunds that are
at issue at the Federal Energy Regulatory Commission. The settlement is subject
to final documentation.

The following parties have been actively involved in the settlement discussions
and will be working to implement the agreements during the next few weeks:
representatives of the California Department of Water Resources; the California
attorney general (on its own behalf and on behalf of Oregon, Washington and
California municipalities that had brought actions against Williams); the
California Public Utilities Commission; the Electricity Oversight Board, and
representatives for civil litigants.

Williams intends to work with California to present the terms of the settlement
for the new long-term energy contracts to FERC Judge Curtis Wagner at the Aug.
5-6 settlement conference in its long-term contract complaint proceedings.
Williams also intends to work toward finalizing agreements necessary to resolve
the remaining litigation, including civil actions, as a part of the global
settlement.

"By working together, we have designed a global settlement that will benefit all
parties and bring closure to issues that have created uncertainty around
Williams in the market," said Steve Malcolm, chairman, president and CEO of
Williams.

"The new long-term contracts will ensure that California consumers will have
power under more flexible terms and Williams will continue to benefit from
long-term power sales in the California market," Malcolm added.

About Williams (NYSE: WMB)





Williams moves, manages and markets a variety of energy products, including
natural gas, liquid hydrocarbons, petroleum and electricity. Based in Tulsa,
Okla., Williams' operations span the energy value chain from wellhead to burner
tip. Company information is available at www.williams.com.

                                       ###

Portions of this document may constitute "forward-looking statements" as defined
by federal law. Although the company believes any such statements are based on
reasonable assumptions, there is no assurance that actual outcomes will not be
materially different. Any such statements are made in reliance on the "safe
harbor" protections provided under the Private Securities Reform Act of 1995.
Additional information about issues that could lead to material changes in
performance is contained in the company's annual reports filed with the
Securities and Exchange Commission.

- --------------------------------------------------------------------------------

CONTACT INFORMATION:

                                                                   
  Paula Hall-Collins      Williams Media Relations       (918) 573-3332     paula.hall-collins@williams.com
    Jay Henderson        Williams Investor Relations     (918) 573-3879        jay.henderson@williams.com
    Richard George       Williams Investor Relations     (918) 573-3679       richard.george@williams.com