Enron Makes Final Plea for PUHCA Exemption

WASHINGTON -- Attorneys for Enron Corp. and the Oregon Public Utility Commission asked the Securities and Exchange Commission Thursday to exempt the company from provisions of the Public Utility Holding Company Act (PUHCA), Dow Jones reported.

On two previous occasions, an Administrative Law Judge (ALJ) denied Enron's exemption application. Among other things, the judge found that Enron failed two critical tests for exemption from regulation under PUHCA.

The ALJ said the company failed to demonstrate that it didn't derive a material part of its income from its subsidiary, Portland General Electric Company, and failed to prove that the subsidiary predominantly operated in one state.

In a final attempt to sway the agency, the Oregon Public Utility Commission urged SEC approval of the PUHCA exemption because, it said, it has adequate ability to oversee Portland General's books and records. In addition, the state commission said it sees Portland General's interstate wholesale market activity as intrastate activity, because the purpose of the activity is to provide service to its customers in Oregon.

-- NYSSCPA.org News Staff

Posted on 12/5/03