Official calls Enron payout ‘paltry’ in light of overcharging

EVERETT – Bankrupt Enron Corp. has offered to pay $2.3 million to settle complaints that it overcharged Washington state customers by tens of millions of dollars during the 2000-01 energy crunch – an offer officials describe as paltry.

“The $2.3 million is not even a token sum. It’s ridiculous,” said Eric Christensen, assistant general counsel for the Everett-based Snohomish County Public Utility District, which was overcharged at least $20 million.

Enron and the Federal Energy Regulatory Commission put the proposal forth on March 10, but it was not publicized until Friday. The proposal actually offers $10 million, but the New York-based judge presiding over Enron’s bankruptcy is paying claims at the rate of 23 cents on the dollar, Christensen said.

The Port of Seattle, the city of Tacoma and the Grays Harbor PUD would also share in the settlement. Christensen has been in Washington, D.C., arguing with the commission for a better settlement, and Sen. Maria Cantwell, D-Wash., planned a news conference Monday to pan the offer.

The FERC proceedings against Enron were intended to force disgorgement of all the company’s illicit profits, which the Snohomish County PUD says totaled as much as $1.8 billion.