FERC asks Enron to forfeit $32.5 mn

As evidence that Enron sought to exploit the California marketplace has continued to pour forth, so has criticism that FERC failed to respond effectively as the crisis unfolded and moved timidly on refunds to ratepayers of alleged electricity overcharges by power suppliers.

‘But while FERC’s move was viewed by some as signaling a change of heart, Enron’s financial status adds uncertainty to what the Houston company ultimately would ever actually pay out. ‘‘California’s not going to break out the party hats and pop the champagne corks because FERC’s doing its job,’’ said Tom Dresslar, spokesman for state Attorney General Bill Lockyer, who has filed a lawsuit accusing Enron of market abuses. ‘‘We’re gratified they’re fulfilling their statutory duty. But it’s certainly no cause for celebration.’’

In Thursday’s order, the federal commission asked an administrative law judge to preside over several Enron cases previously assigned to other judges. The commissioners pointedly gave the judge the option of ordering Enron to turn over unjust profits gained in the West from mid-January 1997 to late June 2003. ‘‘We believe this is one step forward to bringing an end to the California energy crisis, and we want to get money back in customers’ pockets as quickly as possible,’’ FERC spokesman Kevin Cadden said.

Enron’s creditors, who are demanding $63 billion from a company that has about $12 billion to offer them, are expected to get less than 20 cents on the dollar. For all the unknowns, some observers said it was significant that the regulatory panel had effectively taken the gloves off with Enron. As recently as May, FERC ordered California to pay $23 million to Enron for power purchases during the crisis, a ruling that enraged its critics. Thursday’s order suggested to some that, in the wake of those recent uproars, the regulatory panel is viewing Enron in a more critical light and had embraced a more expansive view of refunds.

Roger Berliner, an attorney who represents municipalities and utilities in litigation with Enron said: ‘‘It’s a big deal because Enron made a lot of money from a lot of people at a time when it was unlawfully manipulating the market. The order makes it clear that Enron can be held accountable.’’

— (LAT-WP)