Enron To Pay California For Energy Crisis Abuse

Sacramento, CA — Enron has agreed to pay $47.5 million in cash as part of a settlement with California and two other states that could reach $1.5 billion.

The settlement would resolve claims that the energy company gouged the states during the electricity crisis.

Attorney General Bill Lockyer says the settlement will end market manipulation and price gouging claims against the once-mighty energy company.

Enron will pay California nearly $48 million in cash and provide the state with an unsecured claim for $825 million in the energy company´s bankruptcy proceedings.

California, Oregon and Washington will share a $600 million penalty. The final payment amounts will depend on the resolution of Enron´s bankruptcy proceedings.

All the payments except for the cash settlement represent unsecured claims, which often result in payments of only a fraction of the face value.

The settlement will have to be approved by the Federal Energy Regulatory Commission.