December 1, 2009 in Business

Avista will distribute Enron settlement funds

Officials have heating assistance programs in mind

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A $9 million settlement from Enron Corp. for its role in the 2000-’01 Western energy crisis will help reduce heating costs for Washington households.

The settlement includes $463,187 for Avista Utilities, which must distribute the money to customers over the next 12 months.

“Now is the time that customers will most benefit from these funds as we move into the heating season,” said Debbie Simock, company spokeswoman. “We talk to customers every day that have been good-paying customers, but they’ve been impacted by the economy.”

Avista still is developing guidelines for distributing the money, which must meet the state’s criteria. Washington is emphasizing weatherization programs and helping needy families with their energy bills.

“How fitting that Enron will pay to provide warmth to low-income homes and to help Washington residents make their homes more energy efficient,” said Attorney General Rob McKenna. “These programs are especially needed in today’s economy and will benefit those least able to bear the burden of higher power bills.”

Enron reportedly made almost $2 billion in profits from its electricity trading operations in Western states during 2000 and 2001. Attorneys general from several states investigated whether Enron traders manipulated the market, uncovering schemes with colorful names such as “Death Star” and “Fat Boy.”

The states of Washington, California and Oregon, and some California utilities and other organizations, settled with Enron for $1.52 billion. Washington’s share was $22.5 million, and the state was able to recover nearly half of that from Enron, McKenna said.

Nearly $6 million in checks were sent to utilities to benefit residential customers. Businesses will also benefit through $3 million in programs to help commercial building owners lower their energy use.

Six comments on this story so far. Add yours!

• 

  Fuschia on December 01 at 6:06 p.m.

  Just how are they going to distribute the money?

  Suppose I wasn’t residing in Spokane back then. but on the West side?

• 

  zelda on December 01 at 7:22 p.m.

  Who are they kidding? All things being equal, each homeowner might get $1.01. They have 481,000 customers now, so assuming there were slightly fewer in 2000-2001 (approx. 463,000 perhaps?), $463,187 isn’t going to put much of a dent in anybody’s power bill.

  If they apportion this by usage, most of the funds will go to businesses and homeowners will get 2 or 3 cents, at most.

  The AG would be smart to make Avista just give it to SNAP and make sure Avista doesn’t take a tax deduction for it.

• 

  Shylock13 on December 01 at 7:36 p.m.

  How much “overhead” will Avista take? Avista is our “friendly” neighborhood predator. What will the state establish as guidelines? I predict the normal, average Avista customer will get ZIP…ZERO! So why do the media play this up as a “plus” for Avista? The money, all of it (nothing for Avista) should go to those truly in need! But, of course, that won’t happen!

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  westside on December 01 at 8:07 p.m.

  “Now is the time that customers will most benefit from these funds as we move into the heating season,” said Debbie Simock, company spokeswoman. “We talk to customers every day that have been good-paying customers, but they’ve been impacted by the economy.”

  Cripe sake SR, can’t you people even get an estimate from Avista on how much cents each customer gets?? The SR got sucked in to this PR bull–-t!!! Who did this lousy writeup

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  zelda on December 01 at 10:24 p.m.

  The S-R is Avista’s house organ. Most times it’s not this transparent. Bless us, oh heavenly Avista, and light perpetual light shine upon us.

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  D Statler on March 03 at 7:34 a.m.

  Thats just about enough to cover the executive compensation packages for the upper managment at AVISTA this year. LOL I filed a complaint with the attourneys general office against the UTC and their regulatory practices with AVISTA six months ago. I have not even received a response. AVISTA has filed for another rate increase hearing.The same UTC committee will be ruling on it this time.When will enough be enough ? I cannot believe that Cowles Publishing is protecting AVISTA.They too are victims of this company’s ongoing greed.Higher rates effect all of us.
  I am surprised the Obama administration has not looked into regulating the energy industry when it started looking at the banking industry. It looks to me like the big energy companies in America are responsible for most of this country’s economic troubles. GREED HAS MANY FACES ! AVISTA put on it’s happy mask for this one.