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Enron settles with FERC in investigation of 2000 western power crisis

[JURIST] Enron [corporate homepage] and the Federal Energy Regulatory Commission (FERC) [official website] agreed to a $1.5 billion settlement Tuesday over allegations [JURIST report] that Enron manipulated electricity supplies during the power crisis in California, Oregon, and Washington in 2000-01. Under the settlement [FERC press release; order, PDF], the three states can pursue $875 million in unsecured claims in Enron's bankruptcy proceeding and are also entitled to collect $600 million in civil penalties. Several power companies on the West Coast are also among the settling parties, and will receive $47.4 million of receivables and cash collateral due Enron. Enron emerged from bankruptcy last year as a private entity, however, with assets amounting to a much less than they already owe in settlements. Reuters has more.

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