Bankruptcy

Obscured somewhat by the multi-billion-dollar PG&E bankruptcy, the utility’s updated natural gas transmission/storage market structure (Gas Accord 2) was approved last month by state regulators, keeping in place pretty much the same unbundled framework of the past five years.

Andrew Fastow, the ex-Enron Corp. CFO who allegedly manipulated the company’s books that eventually led to bankruptcy, will be tried separately beginning April 20, 2004 under an order by Houston-based U.S. District Judge Kenneth Hoyt.

As requested, the judge presiding over Enron Corp.’s bankruptcy last week granted an extension for the company to file its reorganization plan. Judge Arthur Gonzalez said it would be “counterproductive” to deny the request, which was made in late June (ee NGI, June 30).

With the bankruptcy court’s approval, Enron Corp. announced Wednesday it will move forward with a new holding company to protect its interests in Transwestern Pipeline Co., Citrus Corp. and Northern Plains Natural Gas Co. Enron first had proposed a separate company for its pipelines in March (see Daily GPI, March 20).

Even before the utility-state regulators bankruptcy settlement emerged, a high profile state legislative proposal (SB 173) to address what some lawmakers perceived as “unreliable” energy price indexes failed to move from its house of origin in the California Senate to the legislature’s lower house assembly. The failure to meet the June 6 state legislative deadline renders the proposal virtually dead for this year with the possibility it could re-emerge next year as a so-called “two-year bill.”

NewPower Holdings Inc. said Judge W. Homer Drake Jr. of the U.S. Bankruptcy Court for the Northern District of Georgia, Newnan Division, has confirmed its Chapter 11 plan as it applies to subsidiary The New Power Company, and the company expects the court to issue its order in the next several days. Ten days following the order, NewPower will begin paying the allowed pre-petition claims of its creditors. Creditors will receive distributions totaling $8.1 million, representing payment in full of allowed claims plus interest from June 11, 2002, the date the company and its subsidiaries filed voluntary petitions under Chapter 11. NewPower will transfer any cash remaining after such payment to TNPC Holdings, Inc. in satisfaction of all intercompany debt outstanding between them.

NewPower Holdings Inc. said Judge W. Homer Drake Jr. of the U.S. Bankruptcy Court for the Northern District of Georgia, Newnan Division, has confirmed its Chapter 11 plan as it applies to subsidiary The New Power Company, and the company expects the court to issue its order in the next several days. Ten days following the order, NewPower will begin paying the allowed pre-petition claims of its creditors. Creditors will receive distributions totaling $8.1 million, representing payment in full of allowed claims plus interest from June 11, 2002, the date the company and its subsidiaries filed voluntary petitions under Chapter 11. NewPower will transfer any cash remaining after such payment to TNPC Holdings, Inc. in satisfaction of all intercompany debt outstanding between them.

The United States Bankruptcy Court in New York has approved the sale of two of Enron North America’s gas purchase agreements to Occidental Energy Marketing, Inc. (Oxy), which will assume responsibility for supply agreements with Peoples Energy utility subsidiaries The Peoples Gas Light and Coke Co. and North Shore Gas effective April 1.

Because of the California energy crisis and the Enron Corp. bankruptcy, the merchant generation business was quickly covered up by “mountains of misinformation,” which will take a couple of years to overcome, according to an energy expert speaking at the GasMart/Power 2002 conference in Reno Tuesday.