Involved in Western Energy Market
HOUSTON, Nov. 16 /PRNewswire/ -- Enron Corp. announced today that it has
reached an agreement to settle all civil and contractual claims between the
company (and certain of its subsidiaries) and other parties related to
electricity and natural gas transactions in the Western United States from
1997-2003, including claims filed in proceedings with the Federal Energy
Regulatory Commission (FERC) and the Bankruptcy Court for the Southern
District of New York. The parties entering into the settlement agreement with
Enron are Nevada Power Company, Sierra Pacific Power Company, and Sierra
Pacific Resources (Nevada Companies).
"This settlement represents the latest in a series of significant claims
that have been resolved in Enron's bankruptcy proceedings," said John Ray,
Enron's Board Chairman. "We are pleased that this settlement enables us to
collect additional value for the creditors, and, at the same time, resolve
claims against the estate so that we can accelerate distributions to all
In the settlement, as consideration of their mutual dismissal and release
of claims against each other, (i) Enron will receive a $129 million
termination payment to be made by the Nevada Companies arising under contracts
for the sale of electricity that were terminated in 2002 and (ii) the Nevada
Companies will receive a shared allowed unsecured bankruptcy claim of $126.5
million against Enron Power Marketing, Inc. (EPMI), an Enron subsidiary, which
will entitle the Nevada Companies to receive distributions on such claim
pursuant to Enron's confirmed Chapter 11 Plan of Reorganization (Plan).
According to the claim recovery rate for EPMI under the Plan, the settlement
produces a net value to Enron's creditors of $100.03 million.
The settlement remains subject to the approval of the FERC and the
Bankruptcy Court for the Southern District of New York.
Enron's Internet address is http://www.enron.com.
CAUTIONARY STATEMENT: Certain statements contained in this press release
are "forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934,
as amended. Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and other
statements that are other than statements of historical facts. Forward-looking statements are based on the opinions and estimates of management at
the time the statements are made and are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
anticipated in the forward-looking statements. Important factors that could
cause actual results to differ materially from those in the forward-looking
statements herein include, but are not limited to, political developments
affecting federal and state regulatory agencies, and developments with respect
to the bankruptcy of Enron. Except as required by law, Enron does not
undertake any obligation to update any forward-looking statements.
SOURCE Enron Corp.
Torie Pennington for Enron Corp., +1-212-850-5629
-0- Nov/16/2005 12:30 GMT
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