Cantwell: One Tragic Chapter in Enron Bankruptcy Closed; More Work to be Done
Cantwell: One Tragic Chapter in Enron Bankruptcy Closed; More Work to be Done
Energy Bill Negotiators in Congress May Consider Cantwell's Enron Measure As Soon As Next Week
U.S. Sen. Maria Cantwell (D-WA) commented today on the State of Washington's settlement with Enron for claims western states filed against the now-bankrupt energy company related to its schemes to manipulate Western energy markets.
The State of Washington had previously filed a $245 million claim against Enron, within the company's bankruptcy proceeding. Under the settlement announced today, Washington state would be entitled to $22.5 million in unsecured claims from Enronas well as a portion of a $600 million penalty, shared with the States of California and Oregon. However, it is expected that the state will could actually receive much less. The exact dollar value of the settlement would be determined after other matters are resolved within the Enron bankruptcy. California parties have estimated the claims may be worth approximately 22.8 cents on the dollar.
"This settlement may bring to a close one tragic chapter in the Enron saga, but it is a drop in the bucket compared to how much Enron bilked from consumers," said Cantwell, a member of the Senate Energy Committee. "There is still serious money at stake when it comes to whether customers such as Snohomish PUD will have to pay Enron more, for power never even delivered. There is still more work to do to get a measure of justice for Washington state consumers."
The settlement does not impact the ongoing case before the Federal Energy Regulatory Commission (FERC), which will determine whether Washington state's Snohomish PUD and other Western utilities should be forced to pay on terminated Enron power contracts.
During Senate debate on comprehensive energy legislation, Cantwell authored a measure inserted in the bill that prohibits the Enron bankruptcy court from enforcing payments on power contracts that are unjust, unreasonable, or contrary to the public interest.
Cantwell wrote the provision to target manipulated power contracts between Enron and utilities such as Washington state's Snohomish PUD and others in the West. The contracts were cancelled when the energy giant began its slide into bankruptcy. But once they were cancelled, Enron turned around and sued utilities for "termination payments," including $122 million from Snohomish PUD, seeking to collect profits on power that was never even delivered.
Next week, negotiators reconciling House and Senate versions of the energy bill are expected to take up the legislation's electricity title, including Cantwell's Enron provision.
http://cantwell.senate.gov/news/releases/2005_07_15_enron_settlement_statement.html