WASHINGTON (AP) - A Texas company has agreed to pay a $250,000 fine to settle allegations that it failed to report defective vacuum cleaners that could shock or burn users, the Consumer Product Safety Commission said Thursday.

The commission alleged that Aerus LLC, of Dallas, was aware of the potential for hazards and did not immediately notify the commission, as required by law.

In settling the dispute, the company denied the allegations, the CPSC said.

The defective vacuums have a power cord that extends from the top of the handle. The cord can break inside the handle or the casing around the cord can break.

Electrolux LLC, the company's predecessor, received about 75 reports of broken cords or casings, according to the commission. About half of the incidents caused burns or shocks to consumers, including serious injuries such as second and third degree burns, and shock.

The commission said the company recalled about 226,000 of the vacuums in November 1998. The vacuums were sold between May 1991 and September 1993 under various model names.