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Just in case
you have not seen this already. - KWC Enron Is Barred From Selling
Electricity and Gas in U.S. By THE ASSOCIATED PRESS, June 25, 2003, Filed at 12:22 p.m. ET WASHINGTON (AP) -- Federal energy regulators on Wednesday
barred Enron
Corp. from selling electricity and natural gas at market
rates anywhere in the United States, in response to findings that it
manipulated Western power markets two years ago. The Federal Energy Regulatory Commission said Enron would be
able to sell power, but at much less competitive prices, virtually shutting
down the company's ability to compete. It can resume regular business once it
emerges from bankruptcy proceedings and gets FERC approval. FERC
Chairman Pat Wood said it was the first time the commission had imposed its
so-called ``death penalty'' on power sellers.
``We send a clear signal that competitive markets must work in the
interest of customers and the public interest,'' Wood said. An Enron spokeswoman said the company did not have an
immediate comment. ``We will
review FERC's decision when it is rendered and will respond accordingly,'' said
Karen Denne. ``In the meantime, we are cooperating fully with FERC and other
investigations.'' The Houston-based Enron went bankrupt after a series of
revelations of hidden debt, inflated profits and accounting tricks. Thousands
of workers lost their jobs and investors were left with virtually worthless
stock. The company, which has
still been doing business, must file its Chapter 11 reorganization plan by June
30. Wood said the commission also would uphold the validity of
long-term power contracts in California and other Western states that were
signed at the height of the energy crisis in 2000 and 2001. California and several Western utilities had argued that the
long-term prices were linked to the manipulation by Enron and other companies. The agency on Wednesday asked 65 power companies, utilities
and municipalities to justify their prices and marketing strategies during the
energy crisis. ``This order is a major step toward addressing the
manipulation that contributed to the extraordinary western power crisis,''
Commissioner William Massey said. In March, the agency's commissioners agreed with California
officials that there was widespread manipulation of natural gas and electricity
prices and supplies in California when the state negotiated more than $20
billion in power contracts. As a
result, Wood said California would receive more than the $1.8 billion in
refunds recommended by a FERC judge in December. The exact amount is to be
determined in the coming months. After a 13-month investigation into the matter, FERC singled
out seven subsidiaries of Enron and five other companies for taking advantage
of a dysfunctional market and reaping millions of dollars in unjust profits. http://www.nytimes.com/aponline/business/AP-Enron-Regulators.html |
