We present a new passive model reduction algorithm based on the Laguerre expansion of the time response of interconnect networks. We derive expressions for the Laguerre coefficient matrices that minimize a weighted square of the approximation error, and show how these matrices can be computed efficiently using Krylov subspace methods. We discuss the connections between our method and other methods such as PRIMA [4]. Numerical simulations show that our method can better approximate the original model as compared to PRIMA.