Industries Addressing the 2000-2001 Western Energy Crisis
Fact Sheet on Enron Settlement
July 15, 2005
Earlier today, California Parties, the Federal Energy Regulatory Commission (FERC) enforcement staff and Enron, announced they have reached an agreement to settle a number of FERC and court proceedings involving Enron and the California energy crisis of 200-2001, including the pending FERC Enron market manipulation case and California ISO refund case. Although the Memorandum of Understanding announced today is a non-public document, its general terms are public. A formal Offer of Settlement is anticipated to be filed with the FERC on or about August 19, 2005, and will be a public document.
The terms of the settlement, if approved by the Federal Energy Regulatory Commission (FERC), would:
- Allow unsecured claims of $875,000,000;
- Impose a $600,000,000 civil penalty in favor of California Attorney General, Oregon Attorney General and Washington Attorney General; and
- Identify cash or cash equivalent of approximately $47,000,000.
If today's announced settlement is approved by FERC, the tally of settlements stemming from the 2000-2001 Western energy crisis that the Commission has either accepted or helped realize would total $5.8 billion. For additional information regarding the Western Energy Crisis 2000-2001, see http://www.ferc.gov/industries/electric/indus-act/wec.asp.