Electric utilities in Nevada settle Enron case

Thursday, Nov. 17, 2005 | 7:10 a.m.

line Las Vegas Sun

The epic legal battle between Nevada's largest electric utilities and disgraced energy trader Enron Corp. is apparently coming to a close.

In a settlement deal announced Wednesday, Nevada Power Co. of Las Vegas and Sierra Pacific Power Co. of Reno have agreed to pay $129 million to settle Enron's demand for $336 million for contracts signed during the 2000-01 Western energy crisis and later terminated.

Enron also agreed to provide and pay an unsecured claim of $126.5 million against its bankruptcy estate to settle the utilities' charges of market violations against the company.

The utilities expect to receive no less than 30 percent of the value of the $126.5 million claim, putting the total payment to Enron at no more than $89.9 million. If the utilities receive more than 30 percent of the value of their claim, the total payment would decrease.

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