FERC Urges a Settlement with Enron Unit

WASHINGTON -- Staff at the Federal Energy Regulatory Commission on Friday asked an agency judge to accept Portland General Electric's offer to pay $8.5 million to settle allegations that it helped parent company Enron Corp. manipulate electricity markets during the West Coast energy crisis, Reuters reported.

The proposed settlement would pay $6.1 million to California; $1.1 million to the city of Tacoma, Wash.; and $800,000 to Oregon state utility regulators, who would ensure that amount was credited to retail customers.

The agreement would also pay $250,000 to industrial customers and $250,000 to Oregon-based Blue Heron Paper Co., which had higher electricity costs than Portland General Electric's cost of service rate, according to documents previously made public by FERC.

"The resulting settlement represents a delicate balance of competing interests and reflects the investigation of the allegations as to Portland in this proceeding," FERC staff said in its recommendation to Jeffie Massey, the agency's administrative law judge presiding over the case.

-- NYSSCPA.org News Staff

Posted on 10/17/03