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ENRON CHOICE PLAN AND PECO PARTIAL SETTLEMENT CONSOLIDATED FOR REVIEW BY PENNSYLVANIA PUBLIC UTILITY COMMISSION
FOR IMMEDIATE RELEASE: Thursday, October 9, 1997
PHILADELPHIA - The Pennsylvania Public Utility Commission today voted unanimously to consolidate the Enron Choice Plan with PECO's Partial Settlement and consider the two proposals at the same time.
"The PUC made a decision today that is tremendously beneficial for Philadelphia consumers," said Steve Kean, senior vice president of government affairs for Enron Corp. "Now the two plans can be considered side by side at the same time, which is not only more time efficient but also will quickly identify the advantages and substantiation behind Enron's Choice Plan, including doubling PECO's rate cuts, a more efficient manner of securitizing stranded costs and returning excess in stranded cost recovery to consumers in the form of rate cuts that are twice those proposed by PECO - something that PECO hasn't proposed to do."
The Choice Plan, which Enron filed on October 7, would give Philadelphia consumers options to choose electricity suppliers and would double the rate cuts offered by the local electric utility over the next four years - including a 20 percent rate cut through 2000. Most importantly, the proposal creates a truly competitive market by improving access to distribution lines, restructuring the generation and stranded cost pricing mechanisms proposed by PECO and establishing the same rate caps in the final years. In addition to doubling the rate cut and giving customers choice of their electricity supplier, Enron proposes to pay PECO's $5.461 billion claim for its stranded costs and would become the default service provider for customers not served by another company. In return, Enron would receive the revenues associated with PECO's stranded cost charge.
Enron Corp., based in Houston, is one of the world's largest integrated natural gas and electricity companies. Enron transports natural gas, buys and sells natural gas, natural gas liquids and electricity, manages fixed-price natural gas risk management contracts, and, explores for and produces natural gas and crude oil. Enron also develops, constructs and manages international energy infrastructure and manufactures and supplies solar and wind renewable energy worldwide. Enron completed its merger with Portland General Corporation on July 1, 1997, and now operates Portland General Electric as a wholly-owned business unit. Enron's assets are approximately $19 billion and its common stock trades under the ticker symbol, "ENE."
For additional information please contact:
Diane Bazelides
(713) 853-6285
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