Despite being the target of multiple federal investigations into potential trading irregularities, the majority of energy companies reported last week that they certified the accuracy of financial information contained in their second-quarter 10-Q filings and their annual 10-K filings for 2001 in compliance with the Securities and Exchange Commission (SEC) regulations.

The exceptions appeared to be Dearborn, MI-based CMS Energy and Dynegy Inc. of Houston. CMS Energy indicated that certification of past (2000-2001) and current financial results to the SEC would have to await the outcome of an ongoing review of its round-trip trading activities, as well as audits and re-audits. Dynegy said it could certify its present financial results to the SEC, but it could not do the same for its financials between 1999-2001 due to an anticipated earnings restatement.

Nicor Inc. said it certified the accuracy of all of its 2002 financial statements “to the best of our knowledge” in compliance with existing SEC rules. But the Naperville, IL-based utility company noted it was unable to comply with the new accounting reform law, the Sarbanes-Oxley Act, which requires an independent auditor to review the results.

Williams Cos. Inc., Reliant Energy, El Paso Corp. Duke Energy, Williams Energy Partners LP, Calpine Corp., TXU Corp., and AES Corp. reported they had vouched for the truthfulness of their quarterly earnings reports. Mirant Corp., which is conducting an internal review of certain accounting issues, said its chief executive officer and chief financial officer certified the financial information in its 10-Q filings for the first quarter and its annual 10-K for 2001. But the company said it was unable to file its 10-Q statement for the second quarter because its auditor had not completed a review of the results. It noted the 10-Q would be filed once the audit is finished, possibly in 30 to 60 days.

Stephen F. Cooper, principal executive officer and financial officer of Enron Corp., certified the bankrupt company’s annual 10-K report for 2001 and quarterly 10-Q filings for this year. But, he said he was unable to vouch for the accuracy of financial information contained in Enron’s annual report for 2000, and several quarterly and 8-K reports for 2001.

Under new rules approved by the agency in June, the SEC set Aug. 14 as the “starting” deadline for 947 publicly-traded companies to certify the truthfulness of the financial statements. The deadline varies according to when companies’ financial reporting periods end. The rules, which expire next January, require companies to either provide the agency with a certification statement, or a statement explaining why certification at that time is not possible, said SEC spokesman John Heine.

The news Sarbanes-Oxley Act, which was passed by Congress in July, would extend the certification requirement to more companies. Specifically, it calls on the SEC to issue rules by Aug. 29 requiring all publicly-traded companies in the United States (about 14,000 companies) to certify their financial statements, Heine said.

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