Enron opened up to new claims

13 April 2012

DISGRACED Enron has been opened up to further claims for compensation after federal regulators ordered the bankrupt energy giant to forfeit $32m (£17.4m) in 'unjust profits' from the Californian energy crisis.

The Federal Energy Regulatory Commission also ordered a review of Enron's profits from 1997-2003.

California and other states in America's West say they are owed billions of dollars after Enron and other companies overcharged them in 2000-2001.

FERC said the current order related only to one specific claim against Enron brought before it, though many more could follow, the commission said. 'Enron potentially could be required to disgorge profits for all of its wholesale power sales in the Western Interconnect for the period 16 January 1997 to 25 June, 2003,' the commission's order said.

'We note that based on the evidence in this docket California officials have estimated those profits at $2.9bn.'

The award could derail Enron's current plan to emerge from Chapter 11 bankruptcy protection later this year. The company imploded two and half years ago in the US's largest corporate scandal, and is now selling assets expected to raise $12bn against current claims against it of $63bn.

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in