Commission accepts Enron settlement valued at $1.5 billion
The Federal Energy Regulatory Commission today accepted a comprehensive
settlement with Enron Corp. agreed to by California parties, attorneys
general in Washington and Oregon, and Commission staff. The settlement,
which has a nominal value of $1.5 billion, marks a turning point
in the Commission's efforts to bring closure to the 2000–2001
Western energy crisis, said Commission Chairman Joseph T. Kelliher.
"The parties are to be congratulated for reaching this comprehensive
settlement with Enron, which I view as a product of the Commission's
strong enforcement posture. With this settlement, the Commission
has accepted or helped facilitate nearly $6 billion in settlements
related to the 2000-2001 crisis," Chairman Kelliher said.
The Chairman urged parties to resolve remaining disputes stemming
from the energy crisis five years ago. "While expediting our pending
refund proceeding is a top priority, settlements provide the regulatory
certainty that is required to promote the investment in power
plants and transmission needed to prevent another energy crisis
in California," Chairman Kelliher said.
The settlement resolves claims and matters arising from transactions
and allegations of manipulations in the Western energy markets
from January 16, 1997, through June 25, 2003.
The settlement would:
- Allow unsecured claims of $875 million (the amount tied
to Enron's bankruptcy proceeding);
- Impose a $600 million civil penalty in favor of the California,
Oregon and Washington attorneys general; and
- Provide cash or cash equivalent of approximately $47.4 million.
The California parties include Southern California Edison Co.,
Pacific Gas and Electric Co., San Diego Gas and Electric Co.,
the California attorney general, the California Department of
Water Resources, the California Public Utilities Commission and
the California Electricity Oversight Board.
The Commission has long noted that settlements are often in the
best interests of all parties and said that negotiations with
other parties are continuing in an attempt to reach agreements
with Enron and the Commission staff involving market manipulation
and overcharges during the 2000-2001 Western energy crisis.
Today's acceptance of the settlement will not adversely affect
the right of non-settling parties to pursue separate litigation,
the Commission said.
The settlement also called for Enron to cooperate with the parties
in pursuing claims against other entities relating to the Western
energy markets or third party participation in alleged Enron misconduct
during the January 16, 1997 through June 25, 2003 period.
The Commission granted a motion to place the Bankruptcy Court's
order approving the Enron settlement as part of the FERC proceeding.
Additional information on the Western energy crisis may be found
on the Commission's website at www.ferc.gov/industries/electric/indus-act/wec.asp.
R-05-76
(30)
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Contact
Information:
Bryan Lee, Barbara A. Connors
Telephone: 202-502-8680 |
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