PG&E Set to Pay Enron $22 Million in Credits

Under a tentative California Public Utilities Commission decision issued March 29, PG&E would pay Enron $22 million for credits. If approved, the decision would bring to a close the dispute involving credits accumulated before January 2001 owed to Enron?s direct-access customers. It would also allow the fallen trading giant, instead of its former energy customers, to receive the $22 million. The tariff governing the transaction at issue, which was upheld by the CPUC, stated that direct-access customers were owed a net credit when the California Power Exchange price reached a certain level. Subsequently, the accumulated credits came under the jurisdiction of the Northern California bankruptcy court and were submitted as a prepetition PG&E debt. The utility resisted reimbursing Enron?s direct-access provider division on grounds it was owed a substantial amount in transmission and distribution charges. PG&E challenged the credit, asserting it was made moot by the end of the rate freeze, and that any amount owed could not be calculated without a reasonableness determination by the Federal Energy Regulatory Commission. Last spring, the two companies largely resolved the issue, and their agreement was approved by the PG&E and Enron bankruptcy courts. The CPUC draft decision to pay the credits and dismiss the underlying complaint may become final at the end of next month.

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PG&E Set to Pay Enron $22 Million in Credits

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