|
ENRON FILES THE CHOICE PLAN; DOUBLES PECO'S RATE CUT TO PHILADELPHIA CUSTOMERS
FOR IMMEDIATE RELEASE: Tuesday, October 7, 1997
PHILADELPHIA - Enron Corp., one of the world's largest integrated natural gas and electricity companies, today announced The Choice Plan, a proposal that would give Philadelphia consumers options to choose electricity suppliers and also would double the rate cuts offered by their local electric utility over the next four years - including a 20 percent rate cut through 2000.
"Through The Choice Plan, Enron is offering Philadelphia consumers the same reliable service they currently have and a lower monthly bill," said Enron Chairman and CEO Kenneth L. Lay. "We've proposed to deliver safe, reliable power exactly as PECO Energy Co. (PECO) proposed in its settlement. We'll contract with PECO to generate electricity at local plants, distribute it over the same wires and poles, read the meters, send the bills and restore power in storms."
Enron's formal proposal, filed today with the Pennsylvania Public Utility Commission, also restructures generation and stranded cost pricing mechanisms proposed by PECO that preclude customers from choosing among competitive energy suppliers.
"Customers deserve the power to choose their energy supplier," Lay said. "All along we've said consumers could do better - we can deliver greater rate cuts and more choices. Enron's proposal gives them both."
In addition to doubling the rate cut and giving customers a real 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.
"Many investor-owned utilities have proposed minimal rate cuts in return for rules that keep consumers from receiving the full benefits of competition," Lay said. "With our proposal in Philadelphia, we're showing that even greater savings can be guaranteed, consumers can have real options to choose among competitive energy suppliers, and stranded costs can still be recovered."
In December 1996, the Pennsylvania Legislature passed the Electricity Generation Customer Choice and Competition Act, which provided the framework for restructuring the state's electric industry to allow retail customers direct access to a competitive generation market. In August, PECO filed a partial settlement plan to the law, which was opposed by a coalition of utilities and power marketers, including Enron. The current proposals provide for customer savings to begin September 1, 1998.
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:
Karen Denne
713-853-9757
 |
