Enron settles Tacoma Power, Montana attorney general civil and contractual claims

By Caroline Salls

Pittsburgh, June 28 - Enron Corp. has reached agreements to settle all civil and contractual claims between the company and Tacoma, Wash., on behalf of its Department of Public Utilities and the Montana attorney general, according to a company news release.

The Federal Energy Regulatory Commission trial staff is also party to the agreements and has allocated a portion of its consideration from a previous settlement as a contribution to the compromises.

The settlements relate to natural gas and electricity transactions in the Western United States from 1997 to 2003, including claims filed by Tacoma and the Montana attorney general in proceedings with FERC.

Specifically, in consideration of the dismissal and release of all claims against Enron, Tacoma will receive a $2.29 million allowed unsecured bankruptcy claim and a $1 million allocated portion of the unsecured FERC trial staff bankruptcy claim.

The Montana attorney general will receive a $300,000 allocated portion of the unsecured FERC trial staff bankruptcy claim and a $1 million subordinated penalty claim.

The Montana attorney general settlement is subject to the execution of a mutually acceptable settlement agreement, and both settlements are subject to the approval of the U.S. Bankruptcy Court for the Southern District of New York and the FERC.

The settlements follow recent settlements with the FERC trial staff, the city of Santa Clara, Calif., Valley Electric Association, Inc. and Metropolitan Water District of Southern California.

"This is another substantial step in our efforts to resolve all outstanding Western energy market issues on behalf of the Enron estate," Enron legal counsel Charles A. Moore said in the release.

Enron is a Houston-based energy company that emerged from bankruptcy on Nov. 18, 2004.

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