Several senators are making noise about bankrupted energy giant Enron getting back into the lobbying game, as the company pushes politicians to approve a bill that could save the company $500 million in termination fees.
Several public utility companies in Washington, California and Nevada, negotiated long-term deals with Enron before the discovery of a massive accounting fraud led the company to file for bankruptcy in 2001. When the utilities canceled their wholesale-energy contracts, Enron assessed millions in early termination fees under a provision in the original contracts.
Lawmakers from Washington State have now introduced language to the federal energy bill that would require the Federal Energy Regulatory Commission to review the original contract and see if the terms were "just." If the termination fees are not rescinded, utility districts in all three states would have to pay Enron more than $500 million, all of which would go to the company's creditors. The Senate has plans to vote on the energy bill next week.
