Bankruptcy News

Customers of Enron-related REPs Protected Safeguards Approved for 13,500 non-residential Customers

Wednesday March 6, 2002 The Public Utility Commission (PUC) on Wednesday issued an interim order approving a procedure to allow for the transfer of customer contracts from an Enron subsidiary, Enron Energy Services, Inc. (EES), to Constellation Power Source, Inc. The order also prohibits EES from marketing to or serving customers in Texas pending the sale. This action will allow EES customers to keep the existing contract terms with a qualified provider who buys the contracts from EES or to opt out of their contracts with EES and choose another retail electric provider (REP).

Constellation is a large national energy company that has applied to the PUC for certification as a REP. EES representatives indicate that EES currently has 13,500 customers, all of which are non-residential customers. None of these customers is being served by EES and Wednesday's order prohibits the company from serving any customers in the future unless it is recertified by the PUC.

In January the PUC staff filed a petition to suspend or revoke the retail certificates of Enron subsidiaries EES and Enron Power Marketing, Inc. (EPMI). The staff believed these wholly-owned subsidiaries of Enron did not meet the financial, managerial or technical qualifications to serve the Texas market after Enron's bankruptcy filing. Since EPMI did not enroll any customers, it filed a petition to voluntarily withdraw its REP certificate.

EES is seeking approval of the transfer of these customers to Constellation from the U.S. Bankruptcy Court for the S.D. of N.Y. - Case No. 01-16034. This process is expected to be completed by the end of May. The transfer is also subject to Constellation being certified as a REP in Texas. When the bankruptcy court approves the agreement and customers are transferred, EES will compensate customers for the difference in the rates they are currently paying and the rates they would have paid under their contract with EES until Constellation begins serving these customers. At that time, the PUC will revoke the certificate of EES.

During the transition, EES has agreed to properly staff its customer call center and will regularly report to the PUC on the center's operation and performance.

Contact Syracuse lawyers today and get a free consultation!

	Did You Know?
	There are a number of protections for consumers in the Fair Debt Collections Practices Act One important point - you are responsible for your debts. Nothing in this law gives you the right to skip out on your bills. It just protects you from unscrupulous collection agencies. And the lender can take legal action to collect the money.