Preheat oven to 350F. Combine first 6 ingredients in 13 x 9 x 2-inch glass baking dish. Pour oil over and stir to coat. Season with salt and pepper. Brown sausages in heavy large nonstick skillet over high heat, turning often, about 8 minutes. Arrange on pepper mixture.

Bake until sausages are cooked through and peppers are tender, stirring occasionally, about 45 minutes.