Auditing

The federal government’s budget sequestration has hit the Energy Information Administration (EIA), forcing the agency to suspend publication of its Annual Energy Review (AER) and its companion publication, Energy Perspectives. The publications, which were to have come out later this year, were to have included data compiled during 2012.

Arthur Andersen LLP has agreed to pay $16 million to Enron Corp. creditors to resolve claims that the accounting firm was negligent in auditing and advising the former energy trader. A hearing on the proposed settlement is scheduled for May 14 in U.S. Bankruptcy Court, Southern District of New York (In re Enron Creditors Recovery Corp., 01-16034). If approved, the settlement would end a lawsuit filed in Houston by Enron’s creditors that accused the once esteemed accounting firm of approving transactions that manipulated Enron’s finances for the benefit of certain executives. Formerly Enron’s outside auditor, Arthur Andersen was convicted by a federal jury in 2002 of obstructing an investigation into Enron’s demise (see Daily GPI, Oct. 17, 2002). The U.S. Supreme Court overturned that verdict in 2005 (see Daily GPI, June 1, 2005) To date Enron creditors have recovered more than $22 billion, or about 50 cents on the dollar.

FERC has begun auditing several energy companies to determine whether they are complying with the agency regulations governing the reporting of prices on natural gas trades to published indexes.