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 Power Company. "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 $89.9 million. 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 CONTACT: 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
FERC Approves Sierra Pacific Resources and Enron Settlement
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