Enron Corp. announced today that it has reached an agreement to settle all civil and contractual claims between the company and certain of its subsidiaries (Enron) and Tacoma, Washington on behalf of its Department of Public Utilities, d/b/a Tacoma Power. The agreement has been joined by the Federal Energy Regulatory Commission (FERC) Trial Staff, which has allocated a portion of its consideration from its previous settlement as a contribution to the compromise between the parties.

Enron has also reached an agreement in principle to settle all civil and contractual claims between the company (and certain of its subsidiaries), and the Montana Attorney General, which agreement has also been joined by FERC Trial Staff. The settlements relate to natural gas and electricity transactions in the Western United States from 1997-2003, including claims filed by Tacoma and the Montana Attorney General in proceedings with FERC.

"This is another substantial step in our efforts to resolve all outstanding Western energy market issues on behalf of the Enron estate," said Charles A. Moore, Enron's legal counsel.

In consideration of their dismissal and release of all claims against Enron, (i) Tacoma will receive an allowed unsecured bankruptcy claim of $2,288,519.71 and a $1 million allocated portion of the unsecured FERC Trial Staff bankruptcy claim; and (ii) the Montana Attorney General will receive a $300,000 allocated portion of the unsecured FERC Trial Staff bankruptcy claim and a $1 million subordinated penalty claim.

The settlement with the Montana AG is subject to the execution of a mutually acceptable settlement agreement, and both settlements are subject to the approval of the Bankruptcy Court for the Southern District of New York and the FERC.

The settlements follow recent settlements with the FERC Trial Staff, the City of Santa Clara, California, Valley Electric Association, Inc. and Metropolitan Water District of Southern California.

Enron Corp. is represented in this matter by Charles A. Moore of LeBouef, Lamb, Greene and MacRae.

Enron's Internet address is http://www.enron.com.

CAUTIONARY STATEMENT: Certain statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and other statements that are other than statements of historical facts. Forward- looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include, but are not limited to, political developments affecting federal and state regulatory agencies, and developments with respect to the bankruptcy of Enron. Except as required by law, Enron does not undertake any obligation to update any forward-looking statements.

Source: prnewswire