Thursday, Oct. 16, 2003 | 11:09 a.m.
Enron Corp. says it will agree to a 60-day stay of execution on a $336 million judgment it won against Sierra Pacific Resources and its utilities Nevada Power Co. and Sierra Pacific Power.
Enron, which was awarded the judgment in recent bankruptcy court proceedings, made the statement in a filing with the Federal Energy Regulatory Commission.
The utilities have claimed that if the bankruptcy court does not allow it to post a bond for the judgment during appeals, they could be forced into bankruptcy. By agreeing to a stay of execution, Enron says Sierra Pacific's effort to have FERC overturn the judgment is moot for the time being.
The utilities have asked FERC to reconsider a June decision to uphold the contracts that are at the center of the legal battle.
In May 2002, Enron terminated contracts with the utilities after their credit was reduced to junk status following a $437 million regulatory rate disallowance. Enron then moved to enforce a termination payment of more than $300 million for power that was never delivered.
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