News Releases
Sierra Pacific Resources Files New Complaint at FERC
Oct 5, 2003
9:00pm
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For Immediate Release
Nevada Utilities Ask FERC to Assert Exclusive Jurisdiction
In Enron Dispute; State Attorney General Expected to Intervene
Las Vegas, Nev.- Electric utility units of Sierra Pacific Resources (NYSE:SRP) today filed a complaint at the United States Federal Energy Regulatory Commission (FERC) to prevent bankrupt Enron Power Marketing, Inc. (Enron) from obtaining a final judgment -- pending FERC review -- involving more than $330 million from"unlawful termination payments."
Enron had been found by the FERC earlier this year to have unlawfully manipulated the Western energy market, engaging in fraud, deception and other actions that created power market prices that were unjust and unreasonable. Prior and subsequent to the FERC ruling, numerous Enron employees pled guilty to related criminal charges.
Today's filing is intended to address Enron's purported"early termination" of power contracts with Sierra Pacific's Nevada utilities in a maneuver that would provide a"windfall" by obtaining payment for electric power that Enron did not, nor could not, provide. It describes the"great harm" that could be done to the utilities as well as the citizens of Nevada should any money be paid to Enron - pending appeals and FERC review -- while Enron enjoys the protection of its bankruptcy.
The company said it expects that the Nevada Attorney General's office, through its Bureau of Consumer Protection, will intervene on behalf of Nevada citizens, joining the Nevada utilities in opposing Enron's actions.
Walter Higgins, chairman and CEO of Sierra Pacific Resources, said,"Enron's latest maneuvers, seeking to reach out from bankruptcy and seriously damage our Nevada utilities, would have profound effects on our state's citizens and the reliable delivery of energy supplies that are at the heart of our economy.
"The issues presented in this FERC case are clear," Higgins added."A company like Enron that engaged in pervasive wrongdoing should not be permitted to adroitly"game" the legal system so it can benefit from its criminal and regulatory misconduct."
The complaint filed today calls for the FERC to preserve the status quo while it reviews the complaint and ultimately find that Enron's actions violated the terms of tariff language and therefore is not entitled to"a penny for power not delivered." The filing adds that in the unlikely event these terminations were found lawful, it is not in the public interest to permit Enron to collect a windfall under these circumstances.Summary of New FERC Complaint
Headquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power Company, the electric utility for most of southern Nevada, and Sierra Pacific Power Company, the electric utility for most of northern Nevada and the Lake Tahoe area of California. Sierra Pacific Power Company also distributes natural gas in the Reno-Sparks area of northern Nevada. Other subsidiaries include the Tuscarora Gas Pipeline Company, which owns 50 percent interest in an interstate natural gas transmission partnership and several unregulated energy services companies.