Enron Seeks Millions for Power Never Delivered to Sierra Pacific

[RamboLiberal]

http://www.nytimes.com/2003/10/06/business/06PLAC.html

The Enron Corporation collapsed into bankruptcy proceedings after revealing that it had reported earnings that never really existed. Now, a major Nevada utility stands on the brink of a bankruptcy filing because Enron is demanding hundreds of millions of dollars of payments for electricity that it never really delivered.

And so far, the courts say Enron is right.

The dispute between two electric utility units of Sierra Pacific Resources has been bubbling along for several months, as Sierra and Enron battled in bankruptcy court about whether the amount of money owed by Sierra was nothing — or what is now more than $330 million. After having lost there, Sierra is expected today to file an emergency request with the Federal Energy Regulatory Commission, asking it to take charge of the controversy and invalidate the payment requirement.

At issue are a series of long-term energy contracts entered into in 2000 and 2001 by the Sierra units, through a broker, with Enron Power Marketing. Under the contracts, Enron committed to delivering power to the Sierra utilities, known as the Nevada Power Company and the Sierra Pacific Power Company, in future months and years.

By the time Enron collapsed into bankruptcy proceedings in December 2001, Sierra was struggling with its own financial problems. The contracts were entered into during the electricity crisis in the West that led to blackouts in California and huge increases in the price of power. Under the rules governing western utilities, Sierra was restricted from passing on the costs of energy to ratepayers, and its financial position was weakened. Soon, credit agencies, concerned about the situation, downgraded Sierra's debt.

[E_Zapata]

1. Now I know I live within a huge farcical nightmare,

Enron (and Cheney) create a false energy shortage on PAPER, mind you; it bankrupts the western states; Enron and Cheney are never taken to task for it; Enron is discovered as the most corrupt ponzi scheme ever and files for bankruptcy, leaving all of its pensioners without jobs or their pensions; the CEOs walk away with MILLIONS on the deal; the Enron collapse signals the collapse of the biggest companies on the exchange as well; The states, meanwhile, still struggle -- closing schools, taking cops off the streets, denying basic healthcare and sevices to its elderly and the disabled, etc etc.

And now ENRON is suing a public utility for millions......

And is probably going to WIN????????????????????????????

FUCK, I give up.

[PurityOfEssence]

2. If there was ever a bad seed corporation, this is it

Why can't this company just go away? It is nothing but a source of ugliness and destruction. It's like the "pure evil" in "Time Bandits": a substance that will destroy you if touched.

[madrchsod]

3. warren buffett

had an article about this several months ago and said this very thing is about to happen and it`s just starting. guess what- there is billions of dollars in these contracts still out there. buffett also said that is why he didn`t invest a dime in these contracts.....

[bluestateguy]

4. They're like Dr. Evil's "Virtuecon" company

Only worse.

Real justice for the Enron crooks! The death penalty for Enron executives!

[E_Zapata]

5. Meanwhile, the same culprits engineer a hijack of the state of calif

which we are right in the middle of.

The energy companies are faced with a $9 billion judgment against them, if Cruz' lawsuit proceeds as it should.

And the GOP is trying to avert JUSTICE by stealing a gov's seat.

[acmavm]

6. Weird, I thought for a contract to be valid you needed to have

agreement (offer and acceptance); Consideration (something of value received or promised); Contractual capacity (parties had to be recognized as competent parties; AND Legality (the contract purpose has accomplish some goal that is legal and not against public policy).

If I'm not mistaken, most of Enron's dealings at this time were not only unethical but they were the ones manipulating the energy crisis to rake in bucks. The huge increases in the price of power was due to these manipulations. Nothing that Enron did at that time was in the best interest of the public.

This is pretty crazed.

[Rose Siding]

9. How could it get through a court?

Nothing has made much sense so far.

The Onion had a piece- something like: Public Would Be Outraged if it Understood Enron Scandal.

[aquart]

7. Sierra is going to ask for help from BushCo?

Poor Sierra. Poor, poor Sierra.

[Occulus]

8. Sorry, but I must:

corporate personhood, CORPORATE PERSONHOOD, CORPORATE PERSONHOOD!!!!



There. I feel better.