Proposed legislation would block contracts

Monday, Sept. 13, 2004 | 10:54 a.m.

U.S. Rep. Shelley Berkley, D-Nev., -- along with Congress members from California and Washington -- has sponsored legislation that would prevent Enron Corp. from enforcing contracts that were a product of market manipulation.

The legislation would allow utilities in Nevada and other states to break the contracts without being subject to termination payments. Nevada Power Co. and Sierra Pacific Power Co. of Reno are facing $336 million in termination payments demanded by Enron for contracts established during the Western energy crisis of 2000-01.

"Nevadans should not have to pay a single dime for canceling contracts with Enron, when it has been proven that the power trader manipulated energy market to drive up profit," Berkley said in a statement.

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