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RUS ENDORSES ENRON PLAN FOR CAJUN ACQUISITION; ENRON UNVEILS NEW RATE PLAN
FOR IMMEDIATE RELEASE: Monday, December 8, 1997
HOUSTON - Enron Capital & Trade Resources Corp. (ECT), a subsidiary of Enron Corp., announced today that it has reached a conditional agreement with the largest secured creditor of the bankrupt Cajun Electric Power Cooperative (Cajun), the Rural Utilities Service (RUS), an agency of the U.S. Department of Agriculture. ECT and the RUS have agreed on the purchase price to be paid by ECT for Cajun's generation assets in the event that the joint reorganization plan of ECT and the Official Committee of Unsecured Creditors of Cajun is confirmed by the bankruptcy court.
ECT also announced that it has lowered its 15 year levelized wholesale rate offer for Cajun member cooperatives to 3.924 cents per kilowatt hour, which is below the rate established by the Louisiana Public Service Commission for ECT's previous rate plan as well as those established for competing bidders. ECT was able to achieve the reduced rate by agreeing to assume financial responsibility for operation and maintenance of distribution facilities currently owned by Cajun or co-owned by Cajun and member cooperatives. Under competing proposals, the member cooperatives will be charged in excess of $2 million annually for operation and maintenance of these facilities.
"This agreement with the RUS and the new rate plan demonstrate the flexibility of the Enron plan, which we hope will lead to settlement of this costly bankruptcy," said Kenneth D. Rice, chairman and CEO of ECT-North America. "Enron is able to deliver superior value to Cajun's creditors while at the same time offering Louisiana consumers the lowest possible rates."
Enron Corp., one of the world's largest integrated natural gas and electricity companies with approximately $23 billion in assets, operates one of the largest natural gas transmission systems in the world; is the largest marketer of natural gas and electricity in North America; is a leading participant in liberalized energy markets in the United Kingdom and the Nordic Countries; markets natural gas liquids worldwide; manages the largest portfolio of fixed-price natural gas risk management contracts in the world; is among the leading entities arranging new capital to the energy industry; owns a majority interest in Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns and manages operating power plants and natural gas pipelines around the world; is one of the largest independent developers and producers of electricity in the world; and is a major supplier of solar and wind energy worldwide. Enron's internet address is www.enron.com and its common stock is traded under the ticker symbol, "ENE."
For additional information please contact:
Terrie James
(713) 853-7727
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