LAS VEGAS, Jan. 25 /PRNewswire-FirstCall/ -- Sierra Pacific Resources
(NYSE: SRP) today said it has received approval from the Federal Energy
Regulatory Commission (FERC) of its previously announced settlement agreement
with Enron Power Marketing Inc. (Enron).
The FERC decision is the final step in the approval process and officially
ends the long-standing dispute and litigation in which Enron claimed that it
was owed more than $300 million for terminated contracts between Enron and
Sierra Pacific's utility subsidiaries, Nevada Power Company and Sierra Pacific
"We are very pleased that this litigation is finally resolved," said
Walter Higgins, chairman and chief executive officer, of Sierra Pacific
Resources. "It avoids costly litigation that could very well have continued
for many years. Most importantly, we are now totally focused on our company's
foremost objectives -- serving our customers well and continuing toward
restoring our utilities to investment grade credit status."
As previously announced, the Sierra Pacific utilities agreed to pay
$129 million to settle Enron's claim of more than $300 million for payment on
contracts Enron terminated in 2002. In turn, Enron agreed to provide and pay
an unsecured claim of $126.5 million against its bankruptcy estate in
settlement of the Nevada utilities' claims that were to be litigated on appeal
before the 9th Circuit Court of Appeals and before the FERC.
Also, as previously announced, the Nevada utilities expect to realize no
less than 30 percent of the face value of the claim against the bankruptcy
estate which guarantees that their total payment will be no more than
Headquartered in Nevada, Sierra Pacific Resources is a holding company
whose principal subsidiaries are Nevada Power Company, the electric utility
for most of southern Nevada, and Sierra Pacific Power Company, the electric
utility for most of northern Nevada and the Lake Tahoe area of California.
Sierra Pacific Power Company also distributes natural gas in the Reno-Sparks
area of northern Nevada. Other subsidiaries include the Tuscarora Gas
Pipeline Company, which owns a 50 percent interest in an interstate natural
gas transmission partnership.
Forward-Looking Statements: This press release contains forward-looking
statements regarding the future performance of Sierra Pacific Resources and
its subsidiaries, Nevada Power Company and Sierra Pacific Power Company,
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are subject to a variety of risks and uncertainties that
could cause actual results to differ materially from current expectations.
These risks and uncertainties include, but are not limited to, the Utilities'
ability to sell or otherwise dispose of the Enron unsecured claim and the
Utilities' ability to recover amounts paid with respect to the settlement
agreement in their future rate cases filed with the Public Utilities.
SOURCE Sierra Pacific Resources
Media, Sonya Headen, +1-702-367-5222, or Analyst Contact, Britta Carlson, +1-702-367-5624, both for Sierra Pacific Resources
-0- Jan/26/2006 0:50 GMT
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