Enron settles with FERC in investigation of 2000 western power crisis

[JURIST] Enron [corporate homepage] and the Federal Energy Regulatory Commission (FERC) [official website] agreed to a $1.5 billion settlement Tuesday over allegations [JURIST report] that Enron manipulated electricity supplies during the power crisis in California, Oregon, and Washington in 2000-01. Under the settlement [FERC press release; order, PDF], the three states can pursue $875 million in unsecured claims in Enron's bankruptcy proceeding and are also entitled to collect $600 million in civil penalties. Several power companies on the West Coast are also among the settling parties, and will receive $47.4 million of receivables and cash collateral due Enron. Enron emerged from bankruptcy last year as a private entity, however, with assets amounting to a much less than they already owe in settlements. Reuters has more.



 

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.