Trial

The first criminal trial in the Enron Corp. case got underway Tuesday in Houston, and prosecutors said in opening statements that emails and other evidence will prove two former Enron executives conspired with four Merrill Lynch bankers to illegally increase the profits so that the company could meet Wall Street expectations.

In a unanimous decision Wednesday, the 5th U.S. Court of Appeals in New Orleans affirmed a Houston jury’s obstruction of justice verdict against the accounting firm Arthur Andersen LLP, which was convicted in 2002 for mishandling Enron Corp.-related documents.

In a unanimous decision Wednesday, the 5th U.S. Court of Appeals in New Orleans affirmed a Houston jury’s obstruction of justice verdict against the accounting firm Arthur Andersen LLP, which was convicted in 2002 for its mishandling of Enron Corp.-related documents.

Lea Fastow, a former Enron Corp. assistant treasurer and wife of the infamous Andrew Fastow, who was facing a trial in Brownsville, TX in June on two counts of felony conspiracy and four counts of filing fax income tax statements, instead will likely plead guilty on Thursday (May 6) to one misdemeanor tax charge.

Ontario’s pipeline safety regulators have charged Enbridge Gas Distribution Inc. and two other companies with negligence in connection with a pipeline explosion last April in Toronto that killed five persons, left several injured and caused extensive property damage.

Jurors deliberating for the ninth day in Arthur Andersen LLP’s obstruction of justice trial were awaiting a ruling by the presiding Houston judge Friday afternoon that may offer crucial guidance in determining a decision of guilt or innocence. Judge Melinda Harmon was asked by the jurors to rule on whether they all must agree on which individual at Andersen acted corruptly when the firm destroyed Enron Corp. records last fall.

Last week a little town in Oregon adopted a web site as itsofficial name for a one-year trial basis. During the Christmasholidays, Wal-Mart sold a computer with Internet access for about$500, and couldn’t keep up with demand. Some are saying 80%-90% ofthe United States will be Internet-connected by next year.

American Electric Power and Central and South West Corp. reacheda settlement with FERC trial staff that resolves the market powerand rate issues relating to the pending merger of the twocompanies. Under terms of the settlement, AEP would transfer theoperation and control of its bulk transmission facilities locatedin Indiana, Kentucky, Michigan, Ohio, Tennessee, Virginia and WestVirginia to a regional transmission organization (RTO). Thesettlement also covers rates for transmission services andancillary services and confirms, subject to FERC guidance oncertain elements, that the previously announced generationdivestiture program will satisfy the market power concerns of theFERC staff. Once the merger is completed, the new company will beserve 4.7 million electric customers in 11 states.