California closes its doors to Enron
Feb. 11, 2003, 11:21PM
chron.com
Copyright 2003 Houston Chronicle News Services
FOLSOM, Calif. -- California grid operators suspended Enron Corp.'s trading and
marketing privileges Tuesday, calling the company negligent in its duty to supply accurate
data and post sufficient collateral to cover money it owes the state's deregulated market.
The California Independent System Operator, which manages much of the state's power
grid, said the bankrupt energy company estimated that it owed $15 million to $50 million
that it had underreported during 2001 and 2002.
Houston-based Enron had been doing little business in California recently, grid operator
Vice President Randy Abernathy said. Management of Enron's direct access customers had
been given to local utilities as the company pared down its California operations. Direct
access customers are businesses that contract directly with generators instead of utilities.
"We don't feel any California consumers are at risk," operator spokeswoman Stephanie
McCorkle said.
At issue are meter readings from Enron's direct access customers. Enron contracted a
company to handle those readings but now says the contractor didn't calculate power
usage correctly. The ISO still holds Enron responsible for the readings' accuracy.
Enron has posted $18 million with the Independent System Operator as collateral, but
"nowhere near $50 million" that it could owe the market, Abernathy said.
Computer Sciences Corp., which manages meter data for Enron Energy Services and Enron
Energy Marketing Corp., told Enron that it had discovered errors dating back to July 2001,
company attorney Gary Fergus said in a letter to the system operator in December. The
Enron underpayment probably will be about $9 million, Computer Sciences said at the
time. |
